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Steven W. Thayer (WSBA No. 7449, admitted 1977), of Vancouver, was ordered to receive a reprimand on June 22, 2006, following approval of a stipulation. This discipline was based on conduct involving lack of communication, conflict of interest, and a prohibited business transaction involving a current client.
In December 2002, Mr. Thayer was hired to represent a client in a criminal matter. The client and his grandmother, who paid Mr. Thayer’s fees, signed a fee agreement prepared by his office for the defense of the charges in Superior Court. The fee agreement provided that an initial payment of $15,000 was a “minimum ‘nonrefundable retainer’” and that additional fees would be charged “if the case goes to trial of $20,000 + costs.” Two weeks prior to trial, Mr. Thayer met with the client to discuss the prosecutor’s latest offer and upcoming trial. At this meeting, Mr. Thayer orally modified the original fee agreement by requesting an additional nonrefundable retainer of $20,000 for pretrial work because the case had become more complicated than he had anticipated. He was paid shortly thereafter. Mr. Thayer did not fully disclose to his client in writing all the terms of the modification, including the fact that he was already contractually obligated to perform all pretrial services in the case for $15,000 and that he was seeking to change that obligation. His client did not consent in writing to any modification of the original fee agreement and was not given a reasonable opportunity to seek the advice of independent counsel with respect to any modification of the original fee agreement. The terms of the modification were not fair and reasonable because the client had already paid $15,000 for pre-trial services under the existing fee agreement and the modification was proposed close to trial, when the added expense of retaining new counsel would have discouraged the client from doing so.
Mr. Thayer’s conduct violated RPC 1.5(a), requiring that a lawyer’s fee be reasonable; RPC 1.7(b), prohibiting a lawyer from representing a client if the representation may be materially limited by the lawyer’s own interests, unless the lawyer reasonably believes the representation will not be adversely affected and the client consents in writing after a full disclosure; and RPC 1.8(a), prohibiting a lawyer from entering into a business transaction with a client or knowingly acquiring an ownership, possessory, security, or other pecuniary interest adverse to a client unless the transaction and its terms are fair and reasonable and fully disclosed and transmitted in writing to the client, the client is given opportunity to seek the advice of independent counsel, and the client consents.
Joanne S. Abelson represented the Bar Association. Kurt M. Bulmer represented Mr. Thayer. James M. Danielson was the hearing officer.
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