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J.J. Sandlin (WSBA No. 7392, admitted 1977), of Zillah, was ordered to receive a reprimand on January 29, 2007, following approval of a stipulation by a hearing officer. This discipline was based on his conduct in 2004 involving improper withdrawal from a representation.
In May 2003, Mr. Sandlin was hired by two individuals (“clients”) to represent them in various complex litigation matters related to their prior employment at a corporation that developed pharmaceutical products (“corporation”). Mr. Sandlin represented the clients in a lawsuit against the corporation. He was also defending the clients in a lawsuit filed by a company that had taken over the corporation. Meanwhile, an involuntary bankruptcy petition was filed against the corporation by a number of investors, including the clients. Mr. Sandlin was hired by the clients, after the involuntary bankruptcy was filed, to represent their individual interests.
In March 2004, the parties reached a “global settlement” in the bankruptcy court that resolved all the pending and potential litigation matters. Under the terms of the global settlement, any disputes regarding the terms of the settlement would be resolved at arbitration by the bankruptcy judge. Shortly thereafter, disputes arose. The judge set a December 2004 deadline for the submission of arbitration statements and set an arbitration hearing for January 2005. As a result of the order, Mr. Sandlin knew that the judge would not take testimony at the January hearing, but would consider only each party’s written submission.
On December 14, Mr. Sandlin told one of the two clients that he and the other client should put together a draft of the corporation’s history for their arbitration statements. Mr. Sandlin represented that he would review the draft before filing. On December 16, one of the clients e-mailed Mr. Sandlin the draft. After sending the e-mail, the client called Mr. Sandlin, who confirmed his receipt of the e-mail. After reviewing the draft declarations, Mr. Sandlin did not feel that he could submit them to court. All submissions were due by 5:00 p.m. on December 17, 2004.
On December 17, 2004, at 3:42 p.m., less than 90 minutes before the filing deadline, Mr. Sandlin sent the clients an e-mail informing them that he was withdrawing from representing them, effective immediately. At 3:59 p.m., Mr. Sandlin sent another e-mail to the clients advising them to file their arbitration statements directly with the judge. Mr. Sandlin did not telephone the bankruptcy court judge’s law clerk to inform the law clerk that his clients needed an extension of time to file their joint declaration. He did not telephone either of the clients to tell them about his withdrawal. Mr. Sandlin did not file a motion for an extension of the filing deadline on the clients’ behalf. No arbitration statement was filed by Mr. Sandlin, and the two clients were unable to find other counsel to represent them before the January hearing.
Mr. Sandlin’s conduct violated former RPC 1.15(b), permitting a lawyer to withdraw from representing a client if withdrawal can be accomplished without material adverse affect on the interests of the client; and former RPC 1.15(d), requiring a lawyer to take steps to the extent reasonably practicable to protect a client’s interests, such as giving reasonable notice to the client.
Fuchsia Dulan represented the Bar Association. Mr. Sandlin represented himself. Richard B. Price was the hearing officer. |