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Rick William Klessig (WSBA No. 22272, admitted 1992), of Olympia, was suspended for two years, effective September 20, 2010, by order of the Washington State Supreme Court. This discipline is based on conduct involving failure to communicate, failure to provide a written accounting of client funds, withholding client property, trust account irregularities, conduct prejudicial to the administration of justice, and violations of the Rules for Enforcement of Lawyer Conduct. The suspension will be followed by two years’ probation upon reinstatement.
In April 2005, Mr. Klessig agreed to represent a client in litigation concerning a commercial lease. Client made an initial payment of $1,500 and additional payments thereafter. Even though Mr. Klessig’s fee agreement provided that a monthly detailed accounting would be sent, and the client made specific requests to receive such an accounting, Mr. Klessig provided only sporadic statements.
The trial in the client’s case was set for December 7, 2006. In response to a demand from Mr. Klessig, the client provided an additional $1,500 fee deposit in November 2006. Mr. Klessig failed to provide the client with a statement reflecting that payment until September 2007. Mr. Klessig told the client that the case would probably settle. On December 5, 2006, the trial date was stricken because the parties were working out the details of a settlement. On April 12, 2007, the court entered a Stipulated Order of Dismissal with Prejudice. Mr. Klessig did not notify the client of the dismissal.
Between September 2007 and November 2007, the client made a written request to Mr. Klessig for a refund of the November 2006 payment and left him multiple voice-mail messages. On November 6, 2007, the client received a voice-mail message from Mr. Klessig’s legal assistant stating that the account was being reviewed. Having heard nothing more, the client made another written request for a refund on November 26, 2007, adding that she might “seek assistance from the Washington State Bar Association.” Shortly thereafter, the client received a check from Mr. Klessig in the amount of $1,036.47 and a statement dated October 20, 2007. That was the first statement sent to the client since September 2006. The statement showed a balance of $1,036.47 as of December 20, 2006 and no indication of any work performed after December 20, 2006. On December 7, 2007, the client spoke with Mr. Klessig and questioned the amount of the refund. Mr. Klessig told her that he needed time to review her account and that he would contact her after he did.
In January 2008, having heard nothing more from Mr. Klessig’s office, the client filed a grievance. In response to the grievance, Mr. Klessig stated in writing that he would send the client a check for $463.53 to resolve their dispute, which he did on March 10, 2008. In June 2008, disciplinary counsel sent Mr. Klessig an Additional Request for Response to Grievance. Disciplinary counsel asked that Mr. Klessig explain what work was done on the client’s case after November 1, 2006, and why the balance of the client’s November 2006 payment was not refunded before November 29, 2007. Disciplinary counsel also asked Mr. Klessig to provide certain billing and trust account records related to the grievance. Mr. Klessig did not respond. After receiving a second notice in June 2008, Mr. Klessig telephoned the client to ask her to withdraw her grievance. He also telephoned disciplinary counsel to tell him that he had not received the June 2008 Additional Request for Response to Grievance and that he thought the grievance was closed. Disciplinary counsel told Mr. Klessig that the grievance was not closed and sent him additional copies of the Additional Request for Response to Grievance. In spite of multiple requests from disciplinary counsel, Mr. Klessig failed to provide a complete response to requests for records and information.
Mr. Klessig’s conduct violated RPC 1.4(a)(3), requiring a lawyer to keep the client reasonably informed about the status of the matter; RPC 1.15A(d), requiring a lawyer to promptly notify a client or third person of receipt of the client or third person’s property; RPC 1.15A(e), requiring a lawyer to promptly provide a written accounting to a client upon request and to provide at least annually a written accounting to a client for whom the lawyer is holding funds; RPC 1.15A(f), requiring a lawyer to promptly pay or deliver to the client the property which the client is entitled to receive; RPC 1.15A(h)(2), requiring a lawyer to keep complete trust account records; RPC 1.15A(h)(6), requiring a lawyer to reconcile trust account records as often as bank statements are generated or at least quarterly and to reconcile the check register balance to the bank statement balance and reconcile the check register balance to the combined total of all client ledger records; RPC 1.15A(h)(8), prohibiting disbursements on behalf of a client or third person from exceeding the funds of that person on deposit; former RPC 1.14(b)(3) and current RPC 1.15B, requiring a lawyer to 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(d), prohibiting a lawyer from engaging in conduct that is prejudicial to the administration of justice; and RPC 8.4(l), prohibiting a lawyer from violating a duty or sanction imposed by or under the Rules for Enforcement of Lawyer Conduct in connection with a disciplinary matter.
Scott G. Busby represented the Bar Association. Mr. Klessig represented himself. Barbara Ann Peterson was the hearing officer. |