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David B. Knodel (WSBA No. 13147, admitted 1983), of Tacoma, was suspended for 18 months, effective September 9, 2010, by order of the Washington State Supreme Court following approval of a stipulation. This discipline is based on conduct involving failure to act diligently, failure to communicate, and misrepresentations.
In 2006, four beneficiaries of a trust hired Mr. Knodel to represent them in a lawsuit against the trustee for failing to collect interest related to the sale of trust real estate during the periods that the purchaser was in default. Although he had done nothing to advance the beneficiaries' claim from March 2008 through January 2009, Mr. Knodel misrepresented to Beneficiary A that he was diligently handling the claim and that he had sent a demand letter to the trustee, who had rejected the trust's offer to settle the suit through a payment of $150,000. In spring 2008, Mr. Knodel forwarded a draft complaint to Beneficiary A. In October 2008, knowing that the statute of limitations for filing suit against the trustee had expired in February 2008, Mr. Knodel misrepresented to Beneficiary A that a complaint had been timely filed and served when, in fact, he had neither filed suit nor attempted to serve the trustee. In November and December 2008, Mr. Knodel misrepresented to Beneficiary A that the attorney for the trustee had made offers to settle the case.
In January 2009, after learning that two other trust beneficiaries had received "settlement draws" of $4,000 each from Mr. Knodel, Beneficiary A contacted the trustee and learned that no complaint had been served on him and that Mr. Knodel had not spoken to him since February 2007. When she confronted Mr. Knodel, he admitted that he had not filed suit, and that he paid "draws" to the other beneficiaries from his personal funds. Mr. Knodel negotiated settlements for his failure to timely file suit with three beneficiaries for $15,000 each. Mr. Knodel has paid one beneficiary in full, and owes $4,900 combined to the other two beneficiaries. Beneficiary A has hired a lawyer to pursue a civil action against Mr. Knodel.
Mr. Knodel's conduct violated RPC 1.3, requiring a lawyer to act with reasonable diligence and promptness in representing a client; RPC 1.4(a), requiring a lawyer to promptly inform the client of any decision of circumstance with respect to which the client's informed consent is required, to reasonably consult with the client about the means by which the client's objectives are to be accomplished, to keep the client reasonably informed about the status of the matter, to promptly comply with reasonable requests for information, and to consult with the client about any relevant limitation on the lawyer's conduct; and RPC 8.4(c), prohibiting a lawyer from engaging in conduct involving dishonesty, fraud, deceit, or misrepresentation.
Kathleen A.T. Dassel represented the Bar Association. Patrick C. Sheldon represented Mr. Knodel. |