| Description: |
Claude K. Irwin, Jr. (WSBA No. 5206, admitted 1973), of Veradale, Washington, has been disbarred by order of the Supreme Court effective April 29, 1998, following a default disciplinary hearing. The discipline is based upon his handling of a probate action and mishandling of estate funds, in violation of RPCs 1.4 (a) and (b), 1.7 (b), 1.8 (a), 1.14 (c) (2), 7.1 (a) and (b), and 8.4 (b) and (c).
In 1992, Irwin filed a probate action, opening the Estate of Mary Rock ("the Estate"), on behalf of the Estate’s personal representative. While the Estate was in probate, Irwin instructed the personal representative to turn over the funds in the Estate account, stating that he would re-invest the Estate’s liquid funds "in real estate" to obtain a higher return than bank interest. At Irwin’s direction, his office staff directly liquidated all the non-cash Estate assets, excluding the decedent’s residence, and deposited the proceeds into an IOLTA trust account. Irwin then transferred virtually all the liquidated proceeds of the Estate (approximately $347,000) from the IOLTA account to two corporations, Ivy Development Corporation and Powderhorn Ridge Ranch, Inc., via unsecured promissory notes payable to the Estate’s personal representative. Irwin was a partial owner, officer and board member of both corporations. The Estate’s personal representative never received the promissory notes and was never informed that the Estate’s funds had been invested in two corporations in which Irwin had a personal interest. Irwin then misled the Estate’s beneficiaries about the investments and about the cause for delays in closing the Estate and distributing the assets. In response to the beneficiaries’ complaints about the delays, Irwin transferred a portion of the funds back from Ivy Development Corporation into his IOLTA account and made partial distributions to the beneficiaries. Irwin never made full distribution to the beneficiaries and did not close the Estate.
The Hearing Officer was David A. Thorner, Yakima. Disciplinary Counsel Jean Kelley McElroy represented the Bar Association.
|