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Jonathan T. Zackey (WSBA No. 21657, admitted 1992), of Bellevue, has been disbarred by order of the Supreme Court effective December 12, 2000, following a default hearing. The discipline is based on his disbursing client funds to himself and others, failing to diligently represent several clients, and failing to cooperate with the Bar Association.
Matter 1: In July 1996, Mr. Zackey agreed to represent a client injured in a fall at a motel in California. Medicare paid $10,326.05 of the client’s medical bills and notified Mr. Zackey of its statutory reimbursement right.
In May 1999, Mr. Zackey settled the client’s claim for $50,000. He requested that the client sign a release and told him he was negotiating with the lien holders. The client signed the release, and Mr. Zackey received and deposited the settlement funds into his trust account. The same day, he wrote a $10,000 check to his general office account designated as "partial fees client v. Motel 6."
Beginning in May 1999, Mr. Zackey stopped responding to his client’s requests for information. After May 25, 1999, Mr. Zackey disbursed the client’s remaining funds to himself and third parties unrelated to the case. As of the date of the hearing, Mr. Zackey had not paid the client or the lien holders.
In September 1999, Mr. Zackey disbursed $1,000 from the client funds designated as "cost reimbursement." Mr. Zackey did not contemporaneously notify the client of these disbursements.
Matter 2: In 1996, Mr. Zackey agreed to represent a client injured in an auto accident. In late 1998 or early 1999, Mr. Zackey settled the client’s case for $4,316. In January 1999, Mr. Zackey deposited the settlement funds into his trust account. Sometime after this date, he disbursed the funds to himself and third parties unrelated to the case. Mr. Zackey did not pay the client or the lien holders.
Matter 3: Mr. Zackey agreed to represent a client injured in an auto accident. In 1997 or 1998, Mr. Zackey settled the claim. On April 26, 1998, Mr. Zackey sent the client an accounting indicating he would disburse $25,829.61 to her and $1,992.50 to her insurance company. Mr. Zackey paid the client, but not the insurance company. As of the date of the hearing, Mr. Zackey had not paid the insurance company.
Matter 4: Mr. Zackey represented a client in a personal injury claim. The client received chiropractic treatment, and the provider notified Mr. Zackey of his lien. In May 1998, Mr. Zackey settled the client’s case for $26,000. In January 1999, Mr. Zackey disbursed funds to the client, but did not pay the chiropractic lien. As of the date of the hearing, Mr. Zackey had not paid the lien and had removed the money from his trust account.
Matter 5: Mr. Zackey failed to respond to several written requests for information from disciplinary counsel. He also failed to attend a deposition after being served with a subpoena. In February 2000, disciplinary counsel filed a petition for interim suspension of Mr. Zackey’s license based on his failure to provide requested trust account records and failure to account for client funds.
Matter 6: In May 1997, Mr. Zackey agreed to represent a client in a claim for injuries he sustained in an auto accident. The contingent-fee agreement indicated that Mr. Zackey would receive 33.33 percent of all amounts received by the client, less pre-existing PIP payments and medical or insurance liens. The case settled in December 1998 for $66,000. According to the fee agreement and Mahler v. Szucs, 135 Wn.2d 398 (1998), the portion of attorney’s fees paid by the insurer attributable for recovery of its subrogated claim belonged to the client.
In February 1999, Mr. Zackey called the insurance company stating that he was entitled to those fees. In support of his claim Mr. Zackey sent a copy of a fee agreement purportedly between himself and the client. This fee agreement did not include the "less pre-existing PIP payments and any medical or insurance liens" language. Mr. Zackey sent $30,472.47 to the client, and notified him that he claimed $6,800 in fees and $100.32 in costs from the amount due the insurance company. Later, Mr. Zackey removed the remaining funds from his trust account.
Matter 7: In May 1996, Mr. Zackey agreed to represent a client in a claim for damages as a result of a fall in Ohio. In July 1996, the same client retained Mr. Zackey to represent her for injuries she sustained in a car accident. Mr. Zackey failed to file suit on either claim prior to the expiration of the statute of limitations.
Matter 8: Between May 1998 and October 1990, Mr. Zackey used approximately $82,000 in client funds from his trust account to pay his personal obligations and to pay other clients.
Mr. Zackey’s conduct violated RPCs 1.1, requiring lawyers to competently represent their clients; 1.3, requiring lawyers to diligently represent their clients; 1.4, requiring lawyers to keep their clients reasonably informed of the status of their matters and to promptly comply with reasonable requests for information; 1.5(c)(1), requiring lawyers to provide written disbursal statements in contingent-fee cases, explaining the amount remitted to the client and how that amount is calculated; 1.14(b)(3), requiring lawyers to maintain complete records of all client funds and property in the lawyer’s possession and provide accountings when requested; 8.4(b), prohibiting lawyers from committing criminal acts (RCW 9A.56.030) that reflect adversely on the lawyer’s honesty, trustworthiness or fitness as a lawyer in other respects; and 8.4(c), prohibiting lawyers from engaging in conduct involving dishonesty, fraud, deceit or misrepresentation.
Maria Regimbal represented the Bar Association. Mr. Zackey represented himself. The hearing officer was Geoffrey G. Revelle.
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