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Karl W. Ferrier (WSBA No. 25217, admitted 1995), of Ocean Park, was disbarred effective October 29, 2003, by order of the Washington State Supreme Court following a default hearing. This discipline was based on his conduct between 1999 and 2001, involving theft of client funds and lack of diligence, and making false statements during the disciplinary investigation.
Matters 1 and 2: In April 2000 and March 2001, Mr. Ferrier agreed to represent clients. In both cases, he deposited the clients' advance fee deposit into his business or personal bank account and used the money for his own purposes. Mr. Ferrier did not work on the clients' cases, respond to the clients' requests that he return their files, refund their fees, or provide accountings.
Matter 3: In March 2001, Mr. Ferrier agreed to represent a client in an action to collect on a promissory note. Mr. Ferrier deposited the client's advance fee deposit into his business or general account and used it for his own purposes. Mr. Ferrier filed a complaint on the client's behalf; paid the filing fee; arranged for service of process on the defendant; and received, but did not file, the affidavit of service. The defendant did not file an answer to the lawsuit, but Mr. Ferrier told his client that he was too busy to obtain an order of default. After August 1, 2001, Mr. Ferrier did not communicate with his client. The client retained new counsel. Although new counsel requested that he do so, Mr. Ferrier did not file the affidavit of service within 90 days of filing the complaint. During the investigatory deposition of this matter, Mr. Ferrier made two false statements under oath.
Matter 4: In September 1999, Mr. Ferrier agreed to represent clients in a lawsuit against a roofing contractor. Mr. Ferrier deposited $900 of the clients' $1,000 advance fee deposit in his trust account. He filed the clients' lawsuit, but failed to timely answer discovery requests, incurring $400 in sanctions. He also failed to advise his clients that opposing counsel had offered to discuss settlement and had scheduled the clients' depositions. Neither Mr. Ferrier nor the clients appeared at the depositions. When Mr. Ferrier failed to appear at opposing counsel's subsequent motion for discovery sanctions, the court sent notice of the hearing directly to the clients. The clients appeared and indicated they could not contact Mr. Ferrier. The court imposed an additional $2,000 in sanctions. Mr. Ferrier did not cooperate with the investigation of these disciplinary matters.
Mr. Ferrier's conduct violated RPCs 8.4(b) and (c), by committing theft (embezzlement of client funds); 1.14(a), by failing to deposit client funds in an IOLTA account; 1.14(b)(3), by failing to provide accountings of client funds upon request; 1.5(a), by failing to perform legal services and retaining advance fee deposits; 1.15(d), by failing to return client files and unearned fees upon termination of the representation; 1.3, by failing to diligently represent clients; and 1.4 (a) and (b), by failing to answer client phone calls and letters, preventing clients from being informed about the status of their matters; and RLD 2.8 [now ELC 5.3(e)], by failing to cooperate with the disciplinary investigation.
Kevin Bank represented the Bar Association. Mr. Ferrier represented himself. Waldo F. Stone was the hearing officer.
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