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Hugh J. Kelly (WSBA No. 14616, admitted 1984), of Spokane was suspended for two years effective May 14 2003, by order of the Supreme Court following a hearing. This discipline is based on his practicing law while his license was suspended, failing to refund an unearned fee deposit and failing to properly document and account for client funds in 2000.
In October 1999, Mr. Kelly agreed to represent the daughter and step-daughter of an Alzheimer’s dementia patient. The clients wanted advice about financial and care decisions and in particular how to qualify the patient for Medicaid long term care. In December 1999, Mr. Kelly drafted two Medicaid gift distribution documents and disbursement checks for the daughter’s signature. Mr. Kelly deposited one of these checks into his trust account as an advance fee deposit. By May 2000, Mr. Kelly had paid himself $6,000 in fees. Mr. Kelly’s license to practice law was suspended in May, but he continued to practice. In June, Mr. Kelly told the clients he could no longer represent them, but did not disclose his interim suspension. In July 2000, Mr. Kelly submitted an outdated Medicaid form. The clients completed the corrected form and obtained Medicaid coverage for the patient without Mr. Kelly’s assistance. The clients asked Mr. Kelly for an accounting of the $5,000. He did not provide an accounting or any billing statements to the clients. Mr. Kelly failed to respond to the Bar Association during the investigation of this matter. The sanction in this matter was affected by mitigating factors.
Mr. Kelly’s conduct violated RPCs 8.4(b), prohibiting criminal acts that reflect adversely on the lawyer’s honesty, trustworthiness or fitness as a lawyer in other respects; 8.4(c), prohibiting conduct involving dishonesty, deceit, fraud or misrepresentation; 1.5(a), requiring lawyers to refund unearned fee deposits; 1.14(b)(3), requiring lawyers to maintain records and provide accountings of client funds; and RLD 2.8, requiring lawyers to cooperate with the disciplinary process.
Randy Beitel represented the Bar Association. Mr. Kelly represented himself. Vicki Lee Anne Parker was the hearing officer.
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