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Stephen C. Miller (WSBA No. 6234, admitted 1975), of Cheney, was disbarred following a hearing, by order of the Supreme Court, effective April 24, 2003. For additional information, please see In re Miller, 149 Wn.2d 262, 66 P.3d 1069 (2003). This discipline was based on his conduct during 1992 through 1994, involving drafting a will naming himself as beneficiary, entering a business transaction with a client, and dishonesty.
In 1982, Mr. Miller began representing a 74 year old client. He drafted a will and power of attorney for the client and assisted her when she wanted to leave a nursing home. By the summer of 1991, Mr. Miller was stopping by the client’s home frequently to bring food, fill her insulin syringes and provide companionship. In September 1991, the client asked Mr. Miller to draft a new will for her, naming himself as residual beneficiary. Mr. Miller and his secretary prepared the will. Mr. Miller arranged for the client to meet with two other lawyers, Mr. S and Mr. G to review the will. At the conclusion of the meeting, the two attorneys witnessed the client’s will. In May 1992 and February 1993, the client requested changes to her will, deleting earlier bequests, and increasing the size of the residue. Mr. S and Mr. Miller drafted these changes and Mr. S. witnessed the client’s signature.
In March 1993, Mr. Miller arranged for the client to add his name to her $192,000 certificate of deposit (CD). Mr. Miller used the client’s CD as collateral to obtain a loan. Mr. Miller prepared a 30-year note and mortgage for the $192,000, agreeing to repay the amount at below market rate interest. Mr. Miller did not record the mortgage. In July 1993, the client’s CD matured and Mr. Miller cashed it out, paid off his line of credit and deposited the remaining funds in his personal bank account. Mr. Miller did not discuss the conflicts of interest with his client or obtain a written waiver.
In March 1994, Mr. Miller applied for a credit union loan. On the application, Mr. Miller did not list the mortgage to his client. He also signed a deed of trust, which when recorded, took a superior position to the client’s unrecorded mortgage. Mr. Miller claims that at this time, the client forgave the $189,477 remaining on the loan from the CD funds. Also at this time, the client became ill. In June 1994, Mr. Miller obtained a doctor’s certificate of disability. Mr. Miller did not notify the client’s family of the change in her health or the certificate of disability. The client died on about October 18, 1994. Mr. Miller began probating her estate that day, obtaining letters testamentary and transferring assets to his personal accounts.
In October 1994, family members filed a will contest. In October 1995, the court set aside the client’s will due to undue influence by Mr. Miller and ordered him to return $195,891 to the estate. During the will contest appeal, Mr. Miller filed a Chapter 13 Bankruptcy petition. Mr. Miller paid the estate $181,770 prior to the petition. He had not made any additional payments at the time of the court’s decision.
Mr. Miller’s conduct violated RPCs 1.8(a), prohibiting entering a business transaction with a client, unless the terms are faire and reasonable and the client consents in writing, after a full disclosure; 1.8(c), prohibiting lawyers from drafting instruments giving the lawyer substantial gifts, including testamentary gifts; and 8.4(c), prohibiting conduct involving dishonesty, fraud, deceit or misrepresentation.
Jeffrey Tilden, Franklin Cordell and Linda Eide represented the Bar Association. Clinton J. Henderson represented Mr. Miller. William E. Fitzharris, Jr. was the hearing officer.
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