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Kristine R. Villager (WSBA No. 36837, admitted 2005), of Seattle, was disbarred, effective May 17, 2011, by order of the Washington State Supreme Court following approval of a stipulation. This discipline is based on conduct involving misappropriation of client funds and dishonesty. While not admitting to the misconduct, Ms. Villager admits that the Association could prove by a clear preponderance of the evidence the violations set forth in the Stipulated Facts and that proof of such violations would suffice to result in her disbarment. According to the Stipulated Facts:
In May 2008, Insurance Company A hired the law firm where Ms. Villager was employed to enforce several hundred judgments and unresolved claims arising from motor vehicle accidents. Between May 2008 and August 2009, Ms. Villager worked on these matters by negotiating lump-sum settlements and establishing payment plans with Insurance Company A’s debtors. During that time, Ms. Villager filed Satisfactions of Judgments in six matters after debtors in those matters delivered to Ms. Villager checks, ranging from between $2,412.38 and $10,000.00, to satisfy the judgments against them. Neither Insurance Company A nor Ms. Villager’s employer received any funds in satisfaction of the judgments and Ms. Villager did not tell them that the matters had been settled.
In late September 2008, Ms. Villager filed a complaint in another matter against a defendant on behalf of Insurance Company A. The defendant delivered a cashier’s check to Ms. Villager for $4,200 as she instructed and received a signed proposed order of dismissal, which the defendant filed with the court. On October 14, 2008, the court dismissed the case. Neither Insurance Company A nor Ms. Villager’s employer received any portion of the settlement funds and Ms. Villager did not tell them that the matter had been settled.
In late September and/or early October 2008, Ms. Villager met with two different defendants who had separate complaints filed against each of them by Insurance Company A. The defendants each brought to Ms. Villager between $1,000 and $2,900 to settle the cases against them. Ms. Villager provided a receipt to one of the defendants, although she did not use her employer’s receipt book. The court entered an order dismissing that matter with prejudice. Ms. Villager gave the second defendant a proposed dismissal order, which he took to court to get the case against him dismissed. Neither Insurance Company A nor Ms. Villager’s employer received any portion of the settlement funds, and Ms. Villager did not tell them that the matters had been settled.
In January 2009, Ms. Villager filed a lawsuit on behalf of Insurance Company A against Insurance Company B, seeking $16,418.53 in unpaid intercompany arbitration awards. Insurance Company B’s lawyer advised Ms. Villager that it would seek summary judgment. In response, Ms. Villager signed and forwarded a proposed order of dismissal. Insurance Company A had not agreed to any such “settlement.” Ms. Villager did not tell her employer or Insurance Company A that she had dismissed their claim against Insurance Company B.
Ms. Villager’s conduct violated RPC 1.15A, prohibiting a lawyer from using, converting, borrowing, or pledging for their own use property of clients or third persons in a lawyer’s possession in connection with a representation; and RPC 8.4(c), prohibiting a lawyer from engaging in conduct involving dishonesty, fraud, deceit, or misrepresentation.
Linda B. Eide represented the Bar Association. Robert Perez represented Ms. Villager. |