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Spokane lawyer Michael Rembolt (WSBA No. 8721, admitted 1978) has been ordered censured by the Disciplinary Board, which on January 26, 1998, approved his stipulation to discipline. The discipline is based on Rembolt’s failure to diligently represent his client in a Chapter 13 bankruptcy in violation of RPC 1.3.
Rembolt, a lawyer with substantial experience representing debtors in bankruptcy, was hired to represent a husband and wife in their Chapter 13 bankruptcy. His clients operated a day care center. At the time they filed Chapter 13 bankruptcy, one of his clients’ most significant assets was the commercial lease of the building where they operated their day care center. The commercial lease included an option to purchase in the future. Rembolt’s clients informed him that they intended to exercise the option to purchase in the future.
Rembolt was unaware that the Bankruptcy Code requires a debtor to obtain authorization from the Bankruptcy Court to assume an unexpired commercial lease within 60 days of filing bankruptcy. He did not timely file a motion for authorization to assume the commercial lease on behalf of his clients. As a consequence, the commercial lease was deemed rejected. His clients were forced to renegotiate a new commercial lease. Under the terms of the new lease, monthly lease payments increased from the prior monthly rate of $2,000 to $4,500. Also, unlike the first lease, the new lease did not contain a purchase option. Rembolt attempted to rectify the problem by dismissing and refiling his clients’ bankruptcy, but did not properly assume the lease during the second bankruptcy, either.
Rembolt represented himself. The Bar Association was represented by Disciplinary Counsel Jonathan Burke.
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