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John D. Schumacher (WSBA No. 5348, admitted 1973), of Montesano, was suspended for 60 days, effective December 6, 2004, by order of the Washington State Supreme Court following a stipulation approved by the Disciplinary Board. This discipline was based on his conduct in 2001 and 2002 involving acquisition of a security interest adverse to a client without full disclosure, withdrawal from a matter without adequate notice, and service of a motion for default on parties who had not been served with the summons and complaint. (Mr. Schumacher is to be distinguished from John W. Schumacher of Shelton.)
Matter 1: While representing a client in a dissolution matter in 2001, in order to secure his fee, Mr. Schumacher obtained from the client and recorded a $20,000 mortgage on the family residence. Other than the loan instruments themselves, Mr. Schumacher did not provide any written disclosure to the client about the transaction. Shortly before a hearing in the dissolution matter, following a meeting at the courthouse, Mr. Schumacher advised the client that he would stop representing her; he then left the courthouse before the hearing began. Mr. Schumacher provided no further legal services to the client. The client later signed a quitclaim deed to Mr. Schumacher for the residence subject to the $20,000 mortgage, shortly before a lender foreclosure was scheduled to occur.
Matter 2: Mr. Schumacher represented plaintiffs in a matter involving approximately 98 defendants. He filed a motion and declaration for default directed to a number of the defendants. The declaration averred that the defendants had been served with copies of the summons and complaint but had not filed or served answers within the time provided by law. It further averred that the defendants were not in the armed forces of the United States of America. When Mr. Schumacher signed the declaration, 11 of the defendants had not been served with the summons and complaint, and one of the defendants was on active duty in the armed forces. Although Mr. Schumacher’s assistant ordinarily kept track of matters relating to service and had prepared the declaration, Mr. Schumacher noticed that mistakes had been made, but he signed the declaration anyway.
Mr. Schumacher’s conduct violated RPC 1.8(a), prohibiting a lawyer from entering into a business transaction with a client or knowingly acquiring an ownership, possessory, security, or other pecuniary interest adverse to a client unless the transaction and its terms are fair and reasonable and fully disclosed and transmitted in writing to the client, the client is given opportunity to seek the advice of independent counsel, and the client consents; RPC 1.15(b), permitting a lawyer to withdraw from representing a client only in defined circumstances or if the withdrawal can be accomplished without material adverse effect on the interests of the client; RPC 1.15(d), requiring, upon termination of representation, that a lawyer take steps to the extent reasonably practicable to protect a client’s interests; RPC 3.4(c), prohibiting a lawyer from knowingly disobeying an obligation under the rules of a tribunal except for an open refusal based on an assertion that no valid obligation exists; and RPC 8.4(d), prohibiting a lawyer from engaging in conduct prejudicial to the administration of justice.
Linda B. Eide and Nancy Bickford Miller represented the Bar Association. Kurt M. Bulmer and Curtis M. Janhunen represented Mr. Schumacher. David K. Hiscock was the hearing officer. |