| Description: |
Jennings P. Felix (WSBA No. 136, admitted 1948), of Seattle, has been disbarred by order of the Supreme Court effective June 19, 2001, following a hearing. The discipline is based upon his failure to promptly deliver client funds in a 1995 personal-injury case, and lack of diligence in an estate matter between 1993 and 1998.
Matter 1: In 1993, Mr. Felix agreed to represent two passengers injured in an automobile accident. Mr. Felix and the clients signed a contingent-fee agreement stating Mr. Felix would receive 33.33 percent of the gross recovery if the case settled. In November 1995, Mr. Felix received settlement checks of $17,000 for client A and $125,000 for client B. In December 1995, Mr. Felix disbursed $35,820.50 of client B’s settlement to the client, $25,000 to himself, and $12,500 to his partner. In March 1996, he sent client B an additional $1,756.27 based on an error in calculating costs. In May 1996, Mr. Felix sent another $5,000 to client B and paid himself another $5,000. In June 1996, Mr. Felix paid himself $10,000 from client B’s settlement. The next month, he sent the client an additional $10,000. In September 1996, Mr. Felix withdrew $8,000 from client B’s settlement for himself and the client. Mr. Felix and his firm received a total of $60,500, or 48.4 percent of client B’s settlement.
In December 1995, Mr. Felix sent $8,223.60 to client A and $4,800 to Mr. Felix’s firm. For both clients A and B, Mr. Felix withheld funds for possible reimbursement to the insurance company, indicating that he was retaining funds in case the insurance company wanted him to pay it back. He told the clients he would try to negotiate less, and that he would keep half of the difference; however, this was not in his fee agreement. For client B, Mr. Felix withheld $31,366.55 for amounts the insurance company paid directly to health providers under the client’s own PIP coverage. He also withheld an additional $17,000 for car repairs, even though the car repairs were paid by another insurance company. Mr. Felix withheld these amounts in addition to the costs and $3,303 "owed to State Farm." Mr. Felix told client B that he had received letters on these issues from the insurance company, but upon request, did not provide copies to the client.
As of the date of the hearing, no subrogation claims had been made for any amounts paid for clients A or B. At hearing, Mr. Felix testified that he believed he needed to hold back the funds in case the insurer attempted to collect those amounts from him under the hold-harmless agreement. He also testified that he could not recall any time when an insurance company had attempted to collect from him under such an agreement. The client eventually called State Farm (Insurance) and learned that the company did not intend to request reimbursement.
Matter 2: Mr. Felix drafted a will for an employee, naming himself both executor and trustee. The will was admitted to probate in March 1993. Mr. Felix never filed an inventory or made annual accountings.
In April 1997, because the file was still open, the court directed Mr. Felix to close the estate, file an explanation of why the estate had not been closed, or appear on May 29, 1997 to explain the file status. Mr. Felix did not comply with this order. He was sick during this time and obtained several continuances.
On January 14, 1998, the court appointed a guardian ad litem (GAL) for the client’s son. On March 11, 1998, the court ordered that the estate assets be transferred to the GAL. Mr. Felix failed to transfer the assets. On April 10, the court removed Mr. Felix as personal representative and trustee, and entered a $65,000 judgment against him.
Mr. Felix’s conduct violated RPCs 1.5(a), requiring lawyers’ fees to be reasonable; 1.5(c)(1), requiring contingent fees to be in writing; 1.14(b)(4), requiring lawyers to promptly pay client funds upon request; 8.4(c), prohibiting conduct involving honesty, fraud, deceit or misrepresentation; 1.3, requiring lawyers to diligently represent their clients; and 3.4(c), requiring lawyers to comply with court orders.
Linda Eide represented the Bar Association. Kurt Bulmer represented Mr. Felix. The hearing officer was Robert Hardy.
|