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T. Reinhard G. “Ron” Wolff (WSBA No. 4146, admitted 1970), of Conway, was ordered to receive a reprimand on November 14, 2008, following approval of a stipulation. This discipline is based on conduct involving failure to act diligently, failure to communicate, and conflicts of interest.
In April 2006, Clients hired Mr. Wolff to represent them in foreclosing on a second Deed of Trust they held on a piece of real property. The holder of the first Deed of Trust was in the process of foreclosing on its note. Mr. Wolff arranged for the sale of the Clients’ note to one of his longtime friends, who Mr. Wolff had also represented in a number of matters, for the purchase price of $15,000. Mr. Wolff drafted a new promissory note memorializing the terms of the deal between the Clients and the buyer. The new note provided that the Clients would be paid after the first Deed of Trust was foreclosed. The new note did not provide a payment due date in the event the foreclosure by the first Deed of Trust holder did not take place. Mr. Wolff neglected to explain the terms of the transaction to the Clients such that they understood that they would not be getting paid until the foreclosure by the first Deed of Trust holder took place, and that they risked receiving nothing if the foreclosure did not take place. Mr. Wolff did not consult with the Clients and fully disclose the facts relating to his relationship with, and past representation of, the buyer and the potential disadvantages of his representation of all parties, and did not get the Clients’ informed consent in writing to the conflict of interest. While the Deed of Trust and foreclosure did not in fact take place, the Clients received payment when the property was sold.
Mr. Wolff’s conduct violated former RPC 1.3, requiring a lawyer to act with reasonable diligence and promptness in representing a client; former RPC 1.4(b), requiring a lawyer to explain a matter to the extent reasonably necessary to permit the client to make informed decisions regarding the representation; and former RPC 1.7, prohibiting a lawyer from representing a client if the representation will be materially limited by the lawyer’s responsibilities to another client, a third person, or the lawyer’s own interests, unless (1) the lawyer reasonably believes the representation will not adversely affect the relationship with the other client, and (2) each client consents in writing after consultation and a full disclosure of the material facts.
Debra J. Slater represented the Bar Association. Lowell Ashbach Jr. represented Mr. Wolff. Octavia Y. Hathaway was the hearing officer.
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