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Douglas O. Whitlock (WSBA No. 5432, admitted 1973), of Vancouver, has been ordered censured pursuant to a stipulation approved by the Disciplinary Board on May 15, 2000. This discipline is based on Mr. Whitlock’s failure to properly identify and protect client funds in his firm’s trust account, and failure to diligently represent and communicate with a client.
Mr. Whitlock represented a client in a personal injury claim. The client signed a contingent fee agreement directing Mr. Whitlock to pay any medical bills from her share of any settlement. In early 1991, the case settled and the insurance company sent a $20,000 check to Mr. Whitlock, which he deposited into his firm’s pooled IOLTA account. Mr. Whitlock disbursed $7,500 to his client; paid a portion of his fee; and paid some, but not all, of the outstanding medical bills. Mr. Whitlock paid two of these outstanding medical bills in 1994 and 1995. One medical bill was not paid. In November 1994, the client requested a full accounting of the settlement funds. Mr. Whitlock did not respond to this request for several weeks and then could not provide a full accounting. Eventually, the client determined that after the initial disbursals, $1,502.33 of the settlement funds remained in the firm’s IOLTA account for over two years.
The Bar Association conducted an audit of the firm’s IOLTA account. The audit revealed that the firm had failed to maintain complete records of client funds, failed to deposit and/or maintain all client funds in an interest-bearing trust account, used funds of one client to advance costs and fees on behalf of another client, and failed to promptly remove earned fees and costs from the trust account. As a result of this audit the firm retained a new bookkeeping firm and sent the client and additional $1,502.33.
Mr. Whitlock’s conduct violated RPC 1.14, requiring lawyers to preserve the identity of and maintain complete records of client funds in the lawyers possession; RPC 5.3, requiring lawyers to supervise nonlawyer assistants; RPC 1.4(a), requiring lawyers to keep clients reasonably informed of the status of their matters; and RPC 1.3, requiring lawyers to diligently represent their clients.
Kevin Bank represented the Bar Association. Mr. Whitlock represented himself.
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