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John M. Haggerty (WSBA No. 9179, admitted 1979), of Arlington, was suspended for three years by order of the Washington State Supreme Court approving a stipulation, effective June 13, 2003. Mr. Haggerty agreed to submit his resignation to the WSBA on the day his suspension is completed, to take effect immediately. He agreed to the stipulation without admitting all of the facts or misconduct. This discipline was based on his conduct in 2000 while acting as escrow agent for a real estate and stock sale transaction.
In March 2000, the parties to a real estate transaction and stock purchase retained Mr. Haggerty to act as escrow agent. On March 30, 2000, Mr. Haggerty deposited the buyer's $9,000 earnest money check into his trust account. In June 2000, the buyer asked that Mr. Haggerty loan him back the $9,000. Mr. Haggerty returned the buyer's money without notice to the seller. In July 2000, Mr. Haggerty re-deposited the buyer's $9,000.
In April 2000, the buyer sent Mr. Haggerty a $10,000 check. Mr. Haggerty faxed a copy of the check to the buyer's agent. Mr. Haggerty did not deposit the buyer's check into his trust account, because the buyer or an agent told him not to do so. When the seller asked Mr. Haggerty about this deposit, Mr. Haggerty stated falsely that he had never received this check.
Mr. Haggerty's conduct violated RPCs 1.14(a), requiring lawyers to deposit client funds [RPC 1.14(d) provides that escrow and other funds held by a lawyer incident to closing of a real estate transaction are client funds subject to this rule] in an IOLTA account; 1.14 (b)(3), requiring lawyers to maintain complete records of client funds in the lawyer's possession and render appropriate accountings; 1.14(d), requiring lawyers to promptly pay or deliver client funds upon request; 1.7(a), prohibiting lawyers from representing a client if the representation will be directly adverse to another client, unless the lawyer reasonably believes the representation will not be adversely affected and the clients consent in writing after full disclosure; 1.7(b), prohibiting lawyers from representing a client if the representation may be materially limited by the lawyer's responsibilities to another client; 4.1(a), prohibiting lawyers from knowingly making false statements of material fact or law to third persons; and 8.4(c), prohibiting conduct involving dishonesty, fraud, deceit, or misrepresentation; and ELC 5.3(e)(1), requiring lawyers to promptly respond to inquiries made for information relevant to disciplinary grievances.
Kevin Bank represented the Bar Association. Kurt Bulmer represented Mr. Haggerty. Bert Markovich was the hearing officer.
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