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People v. Skaalerud8/10/1998
o. RPC 1.3, 1.4(a), 1.16(d), 8.4(d), and 8.4(h).
5. Laurel Segler-Purnell
Skaalerud represented Laurel Segler-Purnell in a breach of contract and bad faith claim against an insurance company. In 1994, he filed an action against the insurer. The court referred the matter to arbitration in 1995. Due to Skaalerud's inaction in the case, however, the court dismissed it for failure to prosecute on December 18, 1995.
Nevertheless, Skaalerud told his client in 1996 that the case was close to settlement. It was not until March 1997 that his client learned that Skaalerud had abandoned his law practice. His conduct again violated Colo. RPC 1.3, 1.4(a), 1.16(d), 8.4(c), 8.4(d), and 8.4(h).
6. The Ewerts
Barbara and Art Ewert retained Skaalerud in October 1994 to represent them regarding an automobile accident. The liable party was insured by Allstate and Barbara Ewert's PIP carrier was State Farm. Skaalerud was to receive a one-third contingent fee of any funds recovered.
In November 1995, a settlement was reached with Allstate and the Ewerts received their share of the proceeds. In December 1995, Skaalerud settled the State Farm claim for $13,500 without his clients' authority or knowledge. He forged their signatures on the settlement check and misappropriated the entire amount. In November 1996, he advised the Ewerts that State Farm was offering to settle for $13,500, but Barbara Ewert instructed him to make a counteroffer of $25,000. The Ewerts were thereafter unable to contact Skaalerud except once when he called them in February 1997 and said that he would repay them. However, he has not done so.
The foregoing conduct violated Colo. RPC 1.2(a) (failing abide by a client's decision whether to accept an offer of settlement); Colo. RPC 1.4(a), 1.15(a), 1.15(b); Colo. RPC 8.4(b) (committing a criminal act); Colo. RPC 8.4(c) (engaging in conduct involving dishonesty, fraud, deceit, or misrepresentation); and Colo. RPC 8.4(h) (engaging in conduct adversely reflecting on fitness to practice).
C. GC 98A-21 -- Steve Campbell
Skaalerud represented Steve Campbell in a workers' compensation case that settled in April 1996. On April 22, 1996, Campbell paid Skaalerud $10,000 as a cost retainer to represent him in a civil suit arising out of an accident at a grocery store. Skaalerud filed the action and depositions were taken in early 1997.
On April 29, 1997, however, Skaalerud was immediately suspended from the practice of law and other counsel was appointed by a district court. In June 1997, Skaalerud admitted to Campbell that he had spent Campbell's retainer on personal bills. He therefore misappropriated Campbell's funds, and his conduct violated Colo. 1.15(a), 1.16(d), and 8.4(c).
II.
In the conditional admission, Skaalerud consents to disbarrment. The inquiry panel approved the conditional admission and the recommendation of discipline. Disbarrment would be appropriate even if the only misconduct involved had been misappropriating client funds:
We have repeatedly held that a lawyer's knowing misappropriation of funds, whether belonging to a client or third party, warrants disbarrment except in the presence of extraordinary factors of mitigation. See, e.g., People v. Mundis, 929 P.2d 1327, 1331 (Colo. 1996) (lawyer disbarred for knowing misappropriation of client funds, neglect of client matters, and practicing law under suspension); People v. Motsenbocker, 926 P.2d 576, 577 (Colo. 1996) (lawyer disbarred for knowingly misappropriating bar association funds); see also ABA Standards [for Imposing Lawyer Sanctions] 4.11 [1991 & Supp. 1992] (in the absen
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