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4. Attorney Hicks formerly practiced law in
Madison in association with Attorney Lauren
Brown-Perry. In 1997 a client was referred
to the law firm by a legal services plan.
The client's case involved a prospective
buyer who had backed out of an agreement to
purchase real estate from the client shortly
before the closing. Attorney Brown-Perry
accepted the client's case and did most, if
not all, of the client's legal work.
5. The client made advance payments of
$1500
toward the legal fees and signed a fee
agreement that provided the retainer would
be applied toward hourly fees and expenses
but would not be placed in a trust account.
The agreement did not state an hourly rate
but the legal services plan required the fee
to be set at a maximum of $70 per hour. The
agreement also provided the client would
receive monthly billing statements.
6. The case was settled in July of 1998
with
the prospective buyer and the realtor each
paying the client $2000. The client was not
provided with any monthly billing statements
as required by the fee agreement. The client
said she understood that her $1500 retainer
fee covered all or nearly all of her fees,
and she expected to receive a check for the
full amount of the $4000 settlement.
7. At the time the two settlement checks
were received, the law firm did not have a
client trust account so Attorney Brown-Perry
deposited the two settlement checks into the
law firm's business checking account. Prior
to the date the first check was deposited
the account had a balance of $2439.10. In
the next week 14 checks cleared the account,
10 signed by Attorney Hicks and 4 signed by
Attorney Brown-Perry. The checks signed by
Attorney Hicks included a late payment to
the Internal Revenue Service, two checks to
Attorney Brown-Perry, and three checks to
Attorney Hicks personally. Five days after
the client's second settlement check was
deposited, the balance in the account was
only $3520.21, which was less than the $4000
in settlement proceeds allegedly being held
for the client. In the next two weeks
numerous other checks were written on the
account, several deposits were received, and
the account became overdrawn. No
distribution had yet been made to the client.
8. Attorney Hicks said he was advised by
Attorney Brown-Perry that she would deposit
the client's settlement funds into an
account with the law firm. Attorney Hicks
said it was his understanding that Attorney
Brown-Perry intended to promptly satisfy the
client's claim, but no payment was made to
the client for four months after her
settlement proceeds were received. In late
November 1998 Attorney Hicks signed a check
payable to the client in the amount of
$2028. Attorney Brown-Perry mailed the check
to the client indicating the settlement
balance was enclosed but she provided no
explanation for the deduction of $1982 from
the $4000 settlement.
9. Although Attorney Brown-Perry's cover
letter to the client said a billing
statement was enclosed, no billing statement
was in fact enclosed, nor had one been
prepared. The client did not cash the check.
Instead she made frequent phone calls to the
law firm asking for an explanation why the
check was written for less than the $4000
settlement. Attorney Hicks personally took
some of the phone calls from the client
inquiring about the balance of her
settlement proceeds. Attorney Hicks said he
advised Attorney Brown-Perry of the calls
and requested that she take appropriate
action.
10. In February 1999 Attorney Hicks
opened a
money-market savings account entitled "Hicks
& Brown-Perry Law Office, [client] Account"
and deposited fee payments totaling $2587
into the account. No checks were ever
written on the account, and the client never
received an accounting or billing statement.
11. In April 1999, while the check
previously
sent to the client was still outstanding,
the law firm closed the business account on
which the check had been written and
transferred the remaining funds into a new
account. A new check was not provided to the
client so the check she was holding would no
longer have been honored had it been
presented for payment.
12. On April 14, 1999, Attorneys Hicks
and
Brown-Perry signed a new account
authorization for removing the client's name
from the account Attorney Hicks had
previously opened for her and retitled the
account as the law firm's IOLTA Trust
Account. Attorneys Hicks and Brown-Perry
reported this account as their firm's trust
account to the state bar and the Office of
Lawyer Regulation (OLR).
13. The client hired a lawyer to file a
small
claims action against Attorney Brown-Perry
to recover her settlement proceeds. The
small claims case was concluded in December
of 1999, more than 16 months after the law
firm had received the settlement funds, with
an agreement that Attorney Brown-Perry would
pay the client the full amount of the
settlement plus an additional $1000, for a
total payment of $5000. Part of the
settlement was paid out of the firm's IOLTA
Trust Account. Attorney Hicks' association
with Attorney Brown-Perry ended soon
thereafter.
14. The OLR filed a disciplinary
complaint
against Attorney Brown-Perry arising out of
her mishandling of the client's funds. Her
license was suspended as a result of her
misconduct. In re Disciplinary Proceedings
Against Brown-Perry, 2003 WI 151, 267 Wis.
2d 184, 672 N.W.2d 287.
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