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Phillip E. Egger (WSBA No. 11611, admitted 1981), of Bellevue, was suspended for six months, effective September 30, 2004, by order of the Washington State Supreme Court following a hearing. This discipline was based on his conduct in 1989 involving billing a client for work that had already been paid for by a third party and failing to obtain a client’s written consent to a potential conflict of interest. For additional information please see In re Discipline of Egger, 152 Wn.2d 393, 98 P.3d 477 (2004).
Matter 1: In 1989, Mr. Egger assisted Client A in making a loan to a condominium development. The loan documents provided that the borrower would pay the lender’s legal fees up to $15,000. Mr. Egger billed Client A $21,000 for attorney fees and costs incurred in the loan transaction. Although the borrower paid Mr. Egger’s firm $15,000 for legal fees, the payment was not credited to Client A’s account, and Client A also paid the full $21,000 bill.
Matter 2: In 1985, Client B contacted Mr. Egger’s law firm regarding representation of her interests as an unsecured creditor in a bankruptcy proceeding filed by a third party, to whom Client B had loaned $66,000. Client B did not recover the amount of the loan. In 1989, Client B persuaded another of Mr. Egger’s clients, Client A, to loan $300,000 to the third-party debtor. Mr. Egger negotiated the loan. Although Client B was listed as a client in firm records at the time, and although Mr. Egger made efforts to secure $66,000 as payment to Client B out of the loan proceeds, Mr. Egger did not obtain Client A’s written consent after full disclosure of the conflict of interest.
Mr. Egger’s conduct violated RPCs 1.5(a), requiring that a lawyer’s fee be reasonable; and 1.7(b), prohibiting a lawyer from representing a client if the representation may be materially limited by the lawyer’s own interests, unless the lawyer reasonably believes the representation will not be adversely affected and the client consents in writing after a full disclosure.
Evan L. Schwab, Leslie C. Allen, and Scott G. Busby represented the Bar Association. Jeffrey A. Beaver and James L. Magee represented Mr. Egger. Michael V. Riggio was the hearing officer. |