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Disbarred
Theresa M. Sowinski (WSBA No. 32549, admitted 2002), of Everett, was disbarred, effective September 10, 2008, by order of the Washington State Supreme Court following approval of a stipulation. Ms. Sowinski affirmatively admitted that the WSBA could prove by a clear preponderance of the evidence sufficient violations of the Rules of Professional Conduct supporting disbarment, including use of client funds for her personal benefit, but did not affirmatively admit all the facts and misconduct herein. This discipline is based on conduct in three matters involving failure to communicate, trust-account irregularities, the commission of criminal acts, and engaging in dishonest conduct that shows disregard for the rule of law and demonstrates unfitness to practice law.
Matter No. 1: In 2002, client A retained the law firm where Ms. Sowinski was employed to represent her in a real estate partition matter. The firm filed a lawsuit on behalf of client A. In October 2003, Ms. Sowinski left the firm to start her own firm and continued to handle client A’s case with client A’s agreement. In April 2004, a Stipulation and Decree for Partition was filed, which stated, in part, that Ms. Sowinki’s “fees and costs shall be charged against the share to be received by [client A]….” The opposing party was represented by Lawyer B.
In June 2004, the property was sold and the net proceeds from the sale, totaling $293,081.09, were transferred into Lawyer B’s trust account by agreement of the parties. Ms. Sowinski sent Lawyer B a fax indicating that her client had an outstanding balance of $12,564.06 for attorney’s fees, a portion of which was owed to Ms. Sowinki’s former firm. Lawyer B issued a check in the amount of $105,000 directly to client A. This payment constituted an advance to be deducted from client A’s total share of the proceeds. That same day, Lawyer B issued a separate check in the amount of $12,564.06 to Ms. Sowinski’s firm for client A’s legal fees. This amount was to be charged against client A’s total share of the proceeds. Ms. Sowinski deposited the $12,564.06 check into her business account, which was not a trust account, and issued a check in the amount of $2,795.20 to her former firm for client A’s legal fees. On July 12, 2004, Ms. Sowinski issued a billing statement indicating that client A owed $540 in outstanding legal fees. On August 12, 2004, Ms. Sowinski called client A and requested $5,000 for legal fees. Client A gave Ms. Sowinski a check in the amount of $5,000, which she deposited into her business account even though Ms. Sowinski had not yet billed the client for fees beyond $540.
In October 2004, Lawyer B wrote a letter to Ms. Sowinski stating that, after calculating legal fees and additional expenses related to the property, client A would receive a final settlement of $112,010.14, which was in addition to any funds previously disbursed to client A (directly or to her counsel). Lawyer B issued a cashier’s check in the amount of $112,010.14 payable to “Theresa Sowinski — Attorney for [client A].” Ms. Sowinski deposited the check into her business account and told client A that she would issue a check to her in the amount of $102,010.14. Client A did not receive such a check. In November 2004, Ms. Sowinski and Lawyer B filed a Stipulation and Order for Dismissal with Prejudice and Without Costs. In December 2004, Ms. Sowinski gave Client A a check for $50,000 and informed client A that there was still some money to disburse, but that she had to keep some of it for “outstanding bills.”
Client A attempted to obtain an accounting and the rest of her money, which Ms. Sowinski agreed to provide but never did. In March 2005, client A hired a new lawyer to assist her in obtaining an accounting from Ms. Sowinski and recover any monies due. Ms. Sowinski never provided client A with a complete accounting or delivered the funds, totaling at least $62,010.14, which client A was entitled to receive. On June 12, 2006, Ms. Sowinski was charged with first degree theft (major economic offense) under RCW 9A.56.030(1)(a), based on Ms. Sowinski’s theft of client A’s funds. Ms. Sowinski entered an Alford plea to the charge and, on March 30, 2007, was sentenced to 12 months and one day with credit for time served. In April 2007, Ms. Sowinski was ordered to pay $67,000 in restitution to client A.
Matter No. 2: In early 2005, client B hired Ms. Sowinski to represent her in the sale of her home and an adjoining lot. A few days before closing, Ms. Sowinski had her assistant take papers to client B’s home for her signature, one of which was a document authorizing the closing agent to wire the proceeds from the sale of the property to Ms. Sowinski’s trust account. Client B refused to sign the document. The following day, Ms. Sowinski went to client B’s home. She advised client B that the sale proceeds should be deposited into her trust account because she would assist client B in settling her outstanding debts, including $21,000 owed to credit-card companies, by negotiating lower payoffs and remitting the funds to client B’s creditors. Ms. Sowinski also warned that, if client B deposited the sale proceeds into her personal account, she risked having creditors attach her account. Based on Ms. Sowinski’s advice, client B agreed to have the sale proceeds deposited into Ms. Sowinski’s trust account.
On June 1, 2005, the sale of client B’s property closed. The sale proceeds of $357,101.12 were wired to Ms. Sowinski’s trust account. On June 1, 2005, Ms. Sowinski disbursed $10,000 to herself for legal fees. She did not notify client B that she intended to disburse the $10,000. As of June 1, 2005, Ms. Sowinski had sent client B only one billing statement setting forth an unpaid balance of $7,442.50. Ms. Sowinski did not issue any billing statements to client B after that statement. Between June 17, 2005, and July 13, 2005, Ms. Sowinski disbursed additional sums of $5,000 and $916.50 to herself. Ms. Sowinski knew that she had not earned these additional fees, had not billed client B for the fees, and was not entitled to the funds. On June 3, 2005, client B e-mailed to Ms. Sowinski a list of five friends and family members to whom she owed money and asked her to pay these individuals as soon as possible. Between June 29, 2005, and July 6, 2005, Ms. Sowinski disbursed $10,925 to four individuals on the list. She failed to pay the fifth person, who was owed $500. In August 2005, client B paid the fifth person $500 from her personal account. In June 2005, Ms. Sowinski disbursed $8,250 to the escrow company for closing costs related to the sale of client B’s property. In October 2005, Ms. Sowinski disbursed $9,000 to satisfy client B’s credit-card debt to a bank. Ms. Sowinski did not negotiate a payoff of client B’s department-store debt, nor did she disburse any funds to pay the debt. Client B settled the department-store matter herself and paid the debt from her personal account. In December 2005, client B received a notice from a collection agency requesting payment of another department-store credit-card debt. Client B forwarded the notice to Ms. Sowinski. In January 2006, client B received another notice from a collection agency requesting payment of the same department-store credit-card debt. The collection agency offered to settle her debt of $8,866.94 for $3,990.12 if client B made payment within 10 days. Client B forwarded the notice to Ms. Sowinski and asked her to pay the debt. Ms. Sowinski falsely told client B that she had paid the department-store credit-card debt in October 2005. In May 2006, client B ordered her credit report and learned that Ms. Sowinski never paid the department-store credit-card debt.
Between June 9, 2005, and March 27, 2006, Ms. Sowinski disbursed $80,000 to client B. In January 2006, client B asked Ms. Sowinski to transfer all remaining funds from her trust account to client B’s personal account. Ms. Sowinski agreed, but did not transfer the funds. Over the ensuing months, client B called, wrote, and e-mailed Ms. Sowinski requesting delivery of her funds. Ms. Sowinski falsely assured client B that the funds were in her trust account and that she would deliver them to her. Ms. Sowinski did not deliver any additional funds to client B. She should have maintained $248,926.12 of client B’s funds in her trust account, but did not. During the period June 2005 to March 2006, Ms. Sowinski issued checks totaling $212,868 to herself or her law firm. During the same period, Ms. Sowinski disbursed an additional $29,345 by counter withdrawal. She used client B’s $248,926.12 for her personal benefit and never provided client B with a complete accounting. Ms. Sowinski was charged with first-degree theft (major economic offense) under RCW 9A56.030, based on her theft of client B’s funds. On February 28, 2007, Ms. Sowinski entered a guilty plea. She was sentenced to 12 months and one day with credit for time served and ordered to pay $258,000 in restitution to client B.
Matter No. 3: In August 2001, an individual (client C) underwent a total knee replacement. Subsequently, client C developed a serious infection, which resulted in amputation. Client C retained a law firm (Law Firm) to review her claims against the doctor(s) and hospital. On August 26, 2004, Law Firm filed a medical malpractice lawsuit on client C’s behalf to prevent the statute of limitations from running. In October 2004, Law Firm advised client C that the firm did not believe there was a basis for pursuing the lawsuit.
Facing a deadline to serve the lawsuit within 90 days after it was filed, client C hired Ms. Sowinski to take over her case. On November 1, 2004, client C and Ms. Sowinski signed a Letter of Engagement providing for a flat fee of $20,000 covering the period November 1, 2004, to November 26, 2004. The Letter of Engagement stated that the “scope of this agreement is limited to the comprehensive investigation regarding the feasibility of [client C] bringing forth suit for medical malpractice,” that Ms. Sowinski agreed “to investigate client’s possible and potential claims involving multiple possible defendants, including but not limited to medical providers, care facilities, hospitals, and transportation services,” and that “should [client C] decide to file an action ... she acknowledges that another attorney/fee agreement must be entered into.” Based on her discussions with Ms. Sowinski, client C paid Ms. Sowinski $20,000 with the understanding that Ms. Sowinski’s plan was to develop new litigation strategies, not to repeat the work of Law Firm or to make a threshold decision about whether or not to take the case. Client C also understood that she would not have to pay more than $20,000, because Ms. Sowinski would present her case to a “panel” that could finance the balance of her lawsuit and that Ms. Sowinski would assist her in an unrelated matter involving two companies.
Client C’s case was Ms. Sowinski’s first medical malpractice case. Client C was not aware that Ms. Sowinski had never handled a medical malpractice case. In November 2004, Ms. Sowinski contacted a medical expert headhunter, ordered two volumes of medical records, provided the new medical records and client C’s existing documents to an infectious-disease expert, and held telephone conferences with the expert. Ms. Sowinski states that she did research and consulted other lawyers regarding client C’s case. However, a portion of Ms. Sowinski’s work was to educate herself in an unfamiliar area of law and science. On or about November 22, 2004, Ms. Sowinski called client C and advised that, after obtaining the expert’s opinion, she would not go forward with her case. On December 1, 2004, Ms. Sowinski filed a Notice of Appearance and plaintiff’s Motion and (Proposed) Order to Dismiss Without Prejudice. Client C’s lawsuit was dismissed. Although Ms. Sowinski advised client C that her case was “over,” client C did not clearly understand that Ms. Sowinski intended to dismiss client C’s lawsuit. Ms. Sowinski did not inform her that she could have the lawsuit served to give herself an opportunity to consult another lawyer and did not do any work on client C’s other, unrelated matter. In January 2005, client C discharged Ms. Sowinski, who did not refund any money to client C.
Ms. Sowinski’s conduct violated RPC 1.4, requiring a lawyer to keep a client reasonably informed about the status of a matter, promptly comply with reasonable requests for information, and explain a matter to the extent reasonably necessary to permit the client to make informed decisions regarding the representation; former RPC 1.14(a), requiring all funds of clients paid to a lawyer be deposited into a trust account; former RPC 1.14(b)(3), requiring that a lawyer maintain complete records of all funds, securities, and other properties of a client coming into the possession of the lawyer and render appropriate accounts to his or her client regarding them; RPC 8.4(b), prohibiting a lawyer from committing a criminal act (here, first-degree theft) that reflects adversely on the lawyer’s honesty, trustworthiness, or fitness as a lawyer in other respects; RPC 8.4(c), prohibiting a lawyer from engaging in conduct involving dishonesty, fraud, deceit, or misrepresentation; RPC 8.4(i), prohibiting a lawyer from committing any act involving moral turpitude, or corruption, or any unjustified act of assault or other act which reflects disregard for the rule of law; and RPC 8.4(n), prohibiting a lawyer from engaging in conduct demonstrating unfitness to practice law.
Marsha A. Matsumoto represented the Bar Association. Ms. Sowinski represented herself. |