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Ivan D. Johnson (WSBA No. 8824, admitted 1979), of Tacoma, has been censured and ordered to pay restitution following a hearing. This discipline is based on his failure to diligently represent a client in a bankruptcy matter from 1991 to 1993.
In August 1991, Mr. Johnson agreed to represent clients in a judgment lien. Mr. Johnson recommended that the clients file Chapter 7 bankruptcy, assuring them that the bankruptcy would avoid the imminent supplemental proceedings and prevent them from losing their home. Mr. Johnson filed the clients’ bankruptcy petition in August. He did not explain to the clients that a bankruptcy discharge relieves the debtor of the debt, and that a motion and brief hearing are necessary to avoid a judgment lien on exempt property. On December 2, 1991, the court entered the order discharging the client’s bankruptcy. Because no motion to avoid the judgment lien was filed, the lien remained against the client’s home.
On May 11, 1992, the clients sold their home, with the purchaser assuming the clients’ mortgage. As part of the sale, the clients agreed to pay all liens or encumbrances against the property. Several months later, when the purchaser attempted to refinance, she learned that the home was encumbered by the judgment lien.
On January 22, 1993, Mr. Johnson filed a motion to avoid the judgment, without disclosing that the home had been sold. On April 4, the court indicated it would grant the motion to avoid the lien, but that the clients would have to pay the judgment debtor’s attorney’s fees incurred in responding to the late motion. In June, the clients informed Mr. Johnson that they believed he should pay the $2,521.96 attorney’s fee. Mr. Johnson withdrew from the clients’ case and sent them a bill for $515. The order to avoid the lien was approved by the judgment debtor, but never entered by the court. In September 1993, a friend of the purchaser paid the attorney’s fee to clear the judgment lien.
Mr. Johnson’s conduct violated RPC 1.4, requiring lawyers to explain matters to the extent reasonably necessary to permit clients to make informed decisions regarding their representation.
Jonathan Burke represented the Bar Association. Kurt Bulmer represented Mr. Johnson. The hearing officer was Thomas J. Greenan.
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