| Description: |
Sandra M. Zupanski (WSBA No. 23508, admitted 1994), of Seattle, was suspended for three years, effective November 14, 2006, by order of the Washington State Supreme Court following a stipulation approved by the Disciplinary Board. This discipline was based on her conduct between 1996 and 2005 involving trust-account irregularities, misrepresentations to clients, false statements in connection with a disciplinary investigation, and failure to cooperate with a disciplinary investigation.
From July 1996 through August 2005, Ms. Zupanski maintained an IOLTA trust account and was solely responsible for maintaining her trust-account records. During this period, Ms. Zupanski used only a handwritten check register to keep track of trust-account funds and did not record all the transactions in the register. Many of the recorded transactions were incomplete, did not indicate a client matter, or were illegible. Ms. Zupanski wrote approximately 230 checks to herself with no client referenced on either the check or the check register. For most of this time period, Ms. Zupanski did not keep a running balance on her check register. She did not maintain client ledgers, did not reconcile her IOLTA checkbook register to the bank statements, and kept only some of the bank statements she received for her trust account. On approximately 46 separate occasions, Ms. Zupanski deposited her own funds into the trust account. She either deposited into the trust account or failed to promptly remove approximately $85,475 in earned fees. For a substantial period of time, Ms. Zupanski did not have any bank accounts other than her trust account. Ms. Zupanski repeatedly used the trust account to pay for personal expenses and arranged for automatic monthly deductions for personal expenses.
Between 1999 and 2005, Ms. Zupanski represented a client in connection with a Labor and Industries (L&I) claim. The agreed-upon fee entitled Ms. Zupanski to 10 percent of each time-loss payment. The remaining 90 percent of each time-loss payment belonged to the client. Ms. Zupanski failed to pay the client his share in a timely fashion and did not pay the client his share of 16 L&I payments, totaling $10,157.01. Between September 2001 and August 2002, Ms. Zupanski indicated on the client’s checks a time-loss period earlier than that of the most recent L&I check she had received. In August 2002, Ms. Zupanski was over two months behind in her payments to the client and, in a letter, made misrepresentations to the client about the status of the funds in her possession.
Between 1998 and 2000, Ms. Zupanski settled personal-injury matters for three clients. Settlement statements in each matter reflected that funds would be withheld to reimburse third-party creditors. The checks Ms. Zupanski sent to the third parties were for amounts less than what was listed on the settlement statements. Ms. Zupanski did not pay the clients in each of these matters the full difference between the amount reflected in the settlement statements and the amount actually paid to the third party. In a statement submitted to the Bar Association, Ms. Zupanski falsely stated that she had used non-trust-account funds to reimburse one of the clients for the difference between the amount withheld and the amount paid to the third party.
In August 2005, the Bar Association deposed Ms. Zupanski in connection with a trust-account overdraft notice. Ms. Zupanski did not timely provide all the information or documents requested by disciplinary counsel.
Ms. Zupanski’s conduct violated RPC 1.4(b), requiring a lawyer to explain a matter to the extent reasonably necessary to permit the client to make informed decisions regarding the representation; RPC 1.14(a), requiring that all funds of clients paid to a lawyer or law firm, including advances for costs and expenses, be deposited in one or more identifiable interest-bearing trust accounts and that no funds belonging to the lawyer or law firm be deposited therein; RPC 1.14(b)(1), requiring a lawyer to promptly notify a client of the receipt of his or her funds, securities, or other properties; RPC 1.14(b)(3), requiring a lawyer to maintain complete records of all funds, securities, and other properties of a client coming into the possession of the lawyer and render appropriate accounts to his or her client regarding them; RPC 1.14(b)(4), requiring a lawyer to promptly pay or deliver to the client as requested by a client the funds, securities, or other properties to which the client is entitled to receive, RPC 8.4(c), prohibiting a lawyer from engaging in conduct involving dishonesty, fraud, deceit, or misrepresentation; and RPC 8.4(l), prohibiting a lawyer from violating a duty or sanction imposed by or under the Rules for Enforcement of Lawyer Conduct in connection with a disciplinary matter (here, ELC 5.3).
Anne I. Seidel represented the Bar Association. Leland G. Ripley represented Ms. Zupanski. |