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Stephen L. Palmberg (WSBA No. 3178, admitted 1972), of Grand Coulee, was disbarred following a hearing, by order of the Supreme Court, effective October 29, 2002. This discipline was based on 19 counts of misconduct in 2000 and 2001, involving practicing with a suspended license, lack of diligence, failure to cooperate with the disciplinary process, and failing to return unearned fees and conduct demonstrating unfitness to practice law.
Matter 1: In August 2000, Mr. Palmberg agreed to represent a client charged with a criminal offense. He filed a notice of appearance and arranged to meet with witnesses after the client’s arraignment, but failed to appear at the arraignment hearing and the status conference. The morning of the status conference, Mr. Palmberg called the client’s father, stating he was “dropping the case,” so the court appointed a public defender to represent the client. Mr. Palmberg continued to work on the client’s case, contacting the prosecutor and witnesses after the public defender was appointed. The public defender remained on the case and Mr. Palmberg told the father he would refund the attorney’s fees. Mr. Palmberg did not refund any of the client’s fees.
Matter 2: In October 2000, Mr. Palmberg agreed to represent a client in a Tribal Court guardianship and custody matter. Mr. Palmberg filed an agreed motion for continuance and then failed to appear for the rescheduled hearing. The issues at the November 2000 hearing were resolved against the client. Mr. Palmberg did not contact the client until January 2001. Mr. Palmberg also represented the client at a temporary custody hearing, but failed to call any witnesses who could have been helpful to her case. At the hearing, Mr. Palmberg told the court that he had represented the opposing party on unrelated matters. Mr. Palmberg did not respond to opposing counsel’s letters or calls about the conflict of interest. Opposing counsel filed a motion to disqualify Mr. Palmberg. Mr. Palmberg filed a notice of concurrence the morning of the motion and did not attend.
Matter 3: Between July 1999 and May 2002, Mr. Palmberg commingled his personal funds with his client funds in his IOLTA account. Mr. Palmberg deposited earned fees and other personal funds into his trust account. Mr. Palmberg did not produce IOLTA records requested by disciplinary counsel. Mr. Palmberg disbursed funds to a client belonging to another client. He also disbursed client funds to himself.
Matter 4: The Supreme Court suspended Mr. Palmberg’s license to practice law in July 2001 because he failed to pay his dues. In August 2001, Mr. Palmberg spoke with a WSBA employee, who verified his suspension. After that conversation, Mr. Palmberg continued to practice law and failed to comply with the duties on suspension required by RLD Title 8. In six cases, Mr. Palmberg either failed to tell clients of his license suspension, met with clients, appeared in court, drafted documents, or accepted money for work he could not perform.
In six additional matters, Mr. Palmberg failed to diligently represent his clients and adequately communicate with clients. In some of these cases, Mr. Palmberg failed to refund unearned fees.
Mr. Palmberg’s conduct violated RPCs 1.3, requiring lawyers to diligently represent their clients; 1.4, requiring lawyers to reasonably communicate with clients about the status of their matters; 1.5, requiring lawyer’s fees to be reasonable; 1.15, requiring lawyers to return unearned fees when the representation is terminated; 1.9, prohibiting lawyers from representing a client in the same or substantially related matter if the client’s interests are materially adverse to the interests of a former client, unless the former client consents in writing after a full disclosure; 5.5, prohibiting the unauthorized practice of law; 8.4(d), prohibiting conduct prejudicial to the administration of justice; and RLD 2.8, requiring lawyers to cooperate with the disciplinary investigation; 8.1,8.2 and 8.3, requiring lawyers to discontinue practice and provide notice to clients, courts and opposing counsel when the lawyer’s license to practice law is suspended; and 1.1(p), prohibiting conduct demonstrating unfitness to practice law.
Jean McElroy represented the Bar Association. Mr. Palmberg represented himself. Joseph M. Mano, Jr. was the Hearing Officer.
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