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Michael D. Coffman, (WSBA No. 28132, admitted 1998), of Seattle, was disbarred, effective June 19, 2012 by order of the Washington State Supreme Court following a default hearing. This discipline was based on conduct involving failure to maintain complete and/or accurate trust account records and other trust account violations, misappropriation of funds, conflicts of interest, lack of diligence, failure to communicate, and engaging in criminal or dishonest conduct that reflects disregard for the rule of the law and demonstrates unfitness to practice law.
Between July 2006 and December 2008, Mr. Coffman engaged in the following
conduct:
• Failed to maintain complete and accurate records of client funds coming into his possession; failed to maintain client funds in his trust account; and failed to reconcile his trust account records as required by the Rules;
• Disbursed funds from his trust account to his personal account and used client funds for the benefit of himself or another when he was not entitled to do so;
• Failed to deliver to a client all the funds that the client was entitled to receive or to provide the client with an accounting showing the actual distribution of the client’s settlement funds;
• Failed to make reasonable efforts to ensure that the conduct of his non-lawyer assistant was compatible with Mr. Coffman’s professional obligations;
• Entered into a business transaction with Client A on terms that were not fair and reasonable and/or not in writing and/or without advising the client in writing of the desirability of seeking independent counsel and/or not obtaining Client A’s informed consent in writing to the essential terms of the transaction and/or the lawyer’s role in the transaction. Due to the lack of promissory note or other form of security, it is not likely Client A will ever be able to collect on the debt;
• Requested and received a loan from Client B in the amount of $10,000; the loan was unsecured and for an indeterminate time at no interest;
• Failed to diligently represent Clients C in negotiating a settlement of their tax matters; as a result of Mr. Coffman’s neglect, the IRS garnished the Clients’ bank account and the Clients had to expend additional money to hire and pay new counsel to repair the damage Mr. Coffman had caused;
• Charged an unreasonable fee in Clients C tax matter, resulting in Mr. Coffman’s collecting $25,901.90 without providing the services needed and failed to properly communicate fees and billing practices;
• Failed to provide an accounting for the $69,000 Clients C had provided Mr. Coffman to pay their back taxes to the IRS; Mr. Coffman represented that he had paid the IRS $21,907.27 on behalf of the Clients , when in fact, he had only paid the IRS $11,907.27, resulting in Clients C owing more taxes than Mr. Coffman represented was owed; Mr. Coffman still owes Clients C $9,815.26, which has not been refunded;
• Failed to deposit Clients C funds into an individual interest-bearing trust account;
• Failed to charge Client D a reasonable fee; the fee agreement Client D signed estimated that the fees for his case would be $500 with the understanding that any additional amount would be paid from any settlement he received. Mr. Coffman charged Client D $11,898.48 and neglected to secure a settlement for Client D; when Client D refused to pay, Mr. Coffman sent the bill to a collection agency;
• Failed to provide consistent monthly billings to Client D and improperly billing for clerical time that was not provided for in the fee agreement;
• Failed to charge reasonable fees to Clients E and F;
• Disbursed $30,000 from Client F’s IOLTA account and converted the funds for his own use;
• Failed to provide an accounting to Client F when requested and failed to deposit Client F’s funds to an individual interest-bearing account;
• Failed to respond to Client G’s request for status updates and to file a complaint in a timely fashion;
Mr. Coffman’s conduct violated RPC 1.3, requiring a lawyer to act with reasonable diligence and promptness in representing a client; RPC 1.4, requiring a lawyer to communicate with the client; RPC 1.4(a)(3), requiring a lawyer to keep the client reasonably informed about the status of the matter; RPC 1.4(a)(4), requiring a lawyer to promptly comply with reasonable requests for information; 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; RPC 1.5(a), prohibiting a lawyer from making an agreement for, charging, or collecting an unreasonable fee or an unreasonable amount for expenses; RPC 1.5(b), requiring that the scope of the representation and the basis or rate of the fee and expenses for which the client will be responsible be communicated to the client, preferably in writing, before or within a reasonable time after commencing the representation; RPC 1.8(a), prohibiting a lawyer from entering into a business transaction with a client or knowingly acquire an ownership, possessory, security or other pecuniary interest adverse to a client; former RPC 1.14(a), requiring that all funds of clients paid to a lawyer or law firm be deposited into one or more identifiable interest-bearing trust accounts; former RPC 1.14(b)(3), 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 1.15A(b), prohibiting a lawyer from converting, borrowing, or pledging client or third person property for the lawyer’s own use; RPC 1.15A(c), requiring a lawyer to hold property of clients and third persons separate from the lawyer’s own property; RPC 1.15A(c)(1), requiring a lawyer to maintain all client funds in a trust account; RPC 1.15A(e), requiring a lawyer to promptly provide a written accounting to a client or third person after distribution of property or upon request and provide at least annually a written accounting for whom the lawyer is holding funds; RPC 1.15A(f), requiring a lawyer to promptly pay or deliver to the client or third person the property which they are entitled to receive; RPC 1.15A(h)(2), requiring a lawyer to keep complete records; RPC 1.15A(h)(3), requiring a lawyer to give reasonable notice to the client of the intent to withdraw funds, through a billing statement or other document; RPC 1.15A(h)(6), requiring trust account records to be reconciled as often as bank statements are generated or at least quarterly; RPC 1.15A(h)(8), prohibiting disbursements on behalf of a client or third person from exceeding the funds of that person on deposit; RPC 1.15A(h)(9), requiring a lawyer admitted to practice law to be the authorized signatory on a trust account; RPC 1.15A(i)(2), requiring that client or third person funds that will produce a positive net return be placed in an individual non-ILOTA trust accounts unless the client or third person requests that the funds be deposited in an IOLTA account; RPC 1.15B, requiring a lawyer to maintain current trust account records; RPC 1.15B(a)(1), requiring a lawyer to maintain check register or equivalent for each trust account, including entries for all receipts, disbursement, and transfers; RPC 1.15B(a)(2), requiring a lawyer to maintain individual client ledger records containing either a separate page for each client; RPC 1.15B(a)(8), requiring a lawyer to maintain copies of all trust account client ledger reconciliations; RPC 3.2, requiring a lawyer to make reasonable efforts to expedite litigation consistent with the interests of the client; RPC 8.4(b), prohibiting a lawyer from committing a criminal act that reflects adversely on his honesty, trustworthiness or fitness as a lawyer in other respects; RPC 8.4(c), prohibiting a lawyer from engaging in conduct that is prejudicial to the administration of justice; and RPC 8.4(i), prohibiting a lawyer from committing any act involving moral turpitude, corruption, or any unjustified act of assault or other act which reflects disregard for the rule of law.
Debra Slater represented the Bar Association. Mr. Coffman represented himself. Amanda Lee was the Hearing Officer.
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