414 P.3d 841
Or.2018Background
- Scott W. McGraw was appointed conservator for Carol Saslow after her 2010 stroke; her husband Michael initially served but had financial mismanagement issues.
- McGraw charged differing hourly rates for attorney work and fiduciary work but billed the conservatorship at the higher attorney rate for fiduciary tasks and for litigation aimed at Michael.
- McGraw pursued aggressive actions: sought to liquidate ranch assets, filed to become Michael’s conservator, sought to eject Michael from the ranch and repossess a van, and sent letters to friends, family, and creditors urging them to oppose Michael and press claims.
- The probate court repeatedly limited McGraw’s enforcement authority, reduced his fee requests, and criticized his conduct as driven by animosity toward Michael.
- The Oregon State Bar charged McGraw with violations of RPC 1.5(a), 3.1, 4.4(a), and 8.4(a)(4); a disciplinary panel found multiple violations and recommended an 18-month suspension.
- The Oregon Supreme Court (de novo review) found violations of RPC 1.5(a), 4.4(a), and 8.4(a)(4), but not proven violations of RPC 3.1; it imposed an 18‑month suspension (commencing 60 days after the decision).
Issues
| Issue | Plaintiff's Argument (Bar) | Defendant's Argument (McGraw) | Held |
|---|---|---|---|
| Did McGraw charge clearly excessive fees in violation of RPC 1.5(a)? | He billed fiduciary time and time not advancing the ward’s interests at attorney rates and billed the estate for litigation targeting Michael. | Fees were submitted for court approval under ORS 125.095; court approval forecloses a Bar violation. | Held: Yes. Charging attorney rates for fiduciary work and billing the estate for matters not advancing the ward violated RPC 1.5(a). |
| Did McGraw knowingly advance frivolous positions in violation of RPC 3.1? | He pursued meritless claims: holding Michael personally liable, pushing for criminal charges without basis, and seeking to be Michael’s conservator without grounds. | He had plausible legal bases and/or factual support for each effort; motivations irrelevant to frivolousness. | Held: No. Bar failed to prove violations under RPC 3.1; positions were at least plausible. |
| Did McGraw use means to harass or burden Michael in violation of RPC 4.4(a)? | Letters to family, friends, and creditors served only to harass, burden, and impede administration of the estate. | He had fiduciary duties (accounting, informing creditors) and duties to disclose concerns about Michael’s conduct. | Held: Yes. The court found the letters (especially post‑death creditor letters) had no substantial purpose other than to harass/burden Michael and violated RPC 4.4(a). |
| Did McGraw engage in conduct prejudicial to the administration of justice under RPC 8.4(a)(4)? | His excessive billing, abusive enforcement, litigation tactics, and disparaging letters undermined court processes and consumed judicial resources. | Some actions were statutorily or court‑approved remedies; not all conduct was improper. | Held: Yes. Court found charging excessive fees, harassing letters, and other tactics prejudiced the administration of justice; violation proven. |
Key Cases Cited
- In re Potts/Trammel/Hannon, 301 Or. 57 (probate court approval of fees is not conclusive against a disciplinary finding for excessive fees)
- In re Stauffer, 327 Or. 44 (disciplinary violation for excessive fees despite prior probate review)
- In re Marandas, 351 Or. 521 (a legal position is not frivolous if it is plausible)
- In re Obert, 352 Or. 231 (definition and standard for frivolous positions under RPC 3.1)
- In re Leuenberger, 337 Or. 183 (motivation irrelevant to frivolousness analysis)
- In re Paulson, 341 Or. 13 (suspension for conduct prejudicial to administration of justice)
- In re Kluge, 335 Or. 326 (standards for proving RPC 8.4(a)(4) violations)
- In re Meyer, 328 Or. 211 (administration-of-justice concept includes procedure and parties’ substantive interests)
- In re Rhodes, 331 Or. 231 (two-year suspension for contempt, misrepresentations, and prejudicial conduct)
- In re Skagen, 342 Or. 183 (one-year suspension for misconduct across matters including conduct prejudicial to administration of justice)
