Fee beef escalates and lands lawyer on suspension
A Santa Monica lawyer whose misconduct included making misrepresentations
to a bank officer in order to open a client trust account and cash a check
to which he was not a payee was suspended for two years and ordered to make
restitution. In a default proceeding, the State Bar Court found that MATTHEW
B. WEBER [#202719], 34, committed 18 acts of misconduct in six matters and
also ordered him to take the MPRE and comply with rule 955 (now rule 9.20)
of the California Rules of Court. The order took effect April 4, 2007.
In addition to committing three acts of moral turpitude, Weber abandoned clients,
commingled entrusted funds, disobeyed court orders, did not report sanctions,
improperly split fees and didn't cooperate with the bar's investigation.
In one matter, he represented a client who had a fee dispute with his lawyer.
As part of a settlement agreement, the client was awarded $112,500. When the
lawyer asserted a lien for more than $82,000, the court ordered the defendant
to deliver a check, jointly payable to the client and the first attorney, to
the attorney. The attorney gave the check to Weber with the understanding that
it would be returned to him after the client endorsed it.
According to bar court Judge Joann Remke, Weber knew the other attorney had
filed a lien and had to endorse the check, and he knew the disputed funds had
to remain in trust until the dispute was resolved. He prepared an agreement,
signed by the client, that the former lawyer would endorse the check, deposit
it in his trust account, pay the client the undisputed amount and maintain
the balance (more than $82,000) in the account until the dispute was resolved.
The former lawyer never signed the agreement and never got the check back.
Weber told his client he'd done some research that indicated the former
lawyer's lien was invalid. His conclusion was incorrect.
The client endorsed the check the same day Weber opened a client trust account
and misrepresented to a bank supervisor that the other lawyer was no longer
counsel for his client and could not endorse the check. The bank allowed Weber
to sign the check and deposit it.
Weber later paid the client $100,000 from the settlement funds and agreed
to retain $12,500 as advance fees for other matters.
When the former lawyer learned the check had been negotiated, he demanded
that the bank pay him the disputed funds. Although Weber had allowed the balance
to drop below the required amount, the bank seized the $76,000 left in the
account. It paid the first lawyer the full amount of his lien, ultimately paying
out $18,500 more than it collected.
The bar court found that Weber committed acts of moral turpitude by not maintaining
disputed funds in trust, making misrepresentations to the bank and misappropriating
client funds. He also commingled funds in the account and used it to pay personal
expenses.
In an unlawful detainer proceeding, Weber and another lawyer entered into
a fee-splitting arrangement without his clients' consent. He agreed to
pay the other lawyer between 66 percent and 90 percent of the fees he collected
in the case for the work the other lawyer did. Weber represented the clients
in their unsuccessful trial and agreed to represent them in an action against
their lender for improperly foreclosing on their property. He did no further
work for them, did not keep them up to date on their case, account for their
funds, or return their calls or their file. He abandoned his law office without
notifying the clients.
Remke found that Weber failed to communicate, return client property or account
for funds, and he improperly withdrew from representation and improperly divided
a fee with another lawyer without client consent.
In a criminal matter in which Weber represented the defendant, he failed to
appear at a hearing, and was sanctioned but did not pay the sanction. He didn't
appear at two other hearings and was removed as counsel, improperly withdrawing
from representation.
In the final matter, Weber represented the plaintiff in a civil case, but
did not appear at a settlement conference. He did appear at the resulting hearing
on an order to show cause, where he and his client were ordered to pay $1,000
in sanctions for failing to comply with discovery obligations. They did not
do so and Weber did not report the sanctions to the bar.
After reaching a settlement, Weber did not appear at two status hearings and
was again sanctioned.
The bar court found that he violated a court order.
In recommending Weber's suspension, Remke said his misconduct significantly
harmed his clients "who had to repeatedly try to contact him or their
matters were delayed, and courts had to continue matters."
|