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Jeffrey G. Poole (WSBA No. 15578, admitted 1986), of Everett, was ordered to receive a reprimand on February 5, 2007, following a stipulation approved by a hearing officer. This discipline was based on his conduct between 2002 and 2004 involving a conflict of interest.
In March-April 2002, Mr. Poole requested and obtained a personal loan from a private lender. At that time, Mr. Poole was representing a client in a litigation matter involving property on which the lender held a secured interest. Mr. Poole was in regular contact with the lender on his client’s behalf. In April, Mr. Poole executed a promissory note and deed of trust to secure a loan from the lender, which required him to make monthly interest payments and then a balloon payment that would pay the loan in full after one year. Mr. Poole, on his own behalf, subsequently proposed another business transaction with the lender related to property in Bothell that he wanted to develop. At that time, his client’s litigation matter involving the lender had not been completely resolved. Mr. Poole’s client was not involved in nor informed about the Bothell property proposal. The lender did not make a loan to Mr. Poole in connection with the Bothell property.
Mr. Poole’s loan payments became past due. A representative of the lender wrote to Mr. Poole and left telephone messages, but received no answer. In September 2003, the lender filed for bankruptcy. During the time that Mr. Poole’s loan was outstanding, he continued to communicate and negotiate with the lender on his client’s behalf in regard to financing other projects and in an attempt to delay foreclosure of the lender’s security interests in his client’s properties. In October 2003, Mr. Poole communicated with the lender about its bankruptcy and its effect on the lender’s business relationship with his client. In April 2004, on his client’s behalf, Mr. Poole communicated with the lender regarding a loan secured by his client’s boat. At the time, Mr. Poole was delinquent on his own loan from the lender.
Mr. Poole never disclosed to the client his independent business relationship with the lender or explained to the client the implications of this relationship, and he failed to obtain consent in writing from the client.
Mr. Poole’s conduct violated former RPC 1.7(b), prohibiting a lawyer from representing a client if the representation of that client may be materially limited by the lawyer’s responsibilities to another client or to a third person, or 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 consultation and a full disclosure of the material facts.
M. Craig Bray and Christine Gray represented the Bar Association. Mr. Poole represented himself. David W. Wiley was the hearing officer. |