ADMONITION N0. 25-09
CLASSIFICATION: Withdrawal of Fees without Accounting [Mass. R. Prof. C. 1.15(d)(2)] SUMMARY: Beginning in 2013, the respondent represented a client in a complex real estate matter. Over the next eight years, the respondent performed a variety of services for the client in connection with a property owned by the client in South Boston. In 2017, the client indicated that it wanted to develop and sell the property. The respondent provided to the client an hourly fee agreement for these services, but the respondent agreed to defer billing until the property was sold.
Over the next few years, the respondent worked to obtain permitting and zoning approvals, architect plans, building designs, abutter consents, etc. The respondent did not keep contemporaneous time records and did not provide to the client interim billing statements in mistaken reliance upon the billing deferral contained in the written fee agreement. The property was sold for a sizeable sum. After closing, the respondent delivered to the client a summary invoice for services rendered, which did not contain any itemized billing entries, but included a single line item of fees accrued over eight years, a method for calculating the fee, and the expenses incurred. The respondent deducted the fees from the buyer’s deposit funds that he had been holding and the remaining funds were turned over to the client.
Later, after the client and his accountant questioned the invoice and payment, the respondent provided a lengthy narrative description of the services rendered. Based on the narrative, there was no evidence that the respondent charged an excessive fee.
By failing to deliver in writing to the client on or before the date on which a withdrawal from a trust account was made for the purpose of paying fees due to the attorney an itemized bill or other accounting showing the services rendered, the respondent violated Mass. R. Prof. C. 1.15(d)(2).
The respondent had no prior discipline and received an admonition for this misconduct.