February 22, 2013 - Oregon State Bar

BOG Agenda Memo — CSF Claims Recommended for Payment
February 22, 2013 Page 3
Pursuant to the fee agreement, Gruetter was entitled to a fee of 40% ($100,000) plus
reimbursement of costs advanced ($16,147.38). He disbursed $83,495.86 to Claimant and held
back the balance ($50,356.76) to pay medical providers. Claimant was unaware that the
medical providers were not paid until they began calling her in December 2011. Claimant’s calls
to Gruetter’s office went unanswered. There was approximately $2,300 in Gruetter’s trust
account at the time the bar took custody of his practice in February 2012.
The CSF Committee recommends an award of $50,000 to compensate the Claimant for
money misappropriated by Gruetter.
No. 2012-31 GRUETTER (Roccasalva) - $50,000 and $11,682.33
Claimant was seriously injured in an automobile accident in February 2007 and hired
Gruetter shortly thereafter to pursue her injury claims. In February 2008, Gruetter resolved her
uninsured motorist claim with Claimant’s own insurer for $150,000 and distributed the net
proceeds (after deduction of his 1/3 fee and costs) to Claimant.
In November 2009, a second settlement was reached with the at-fault drivers for
$100,000. Gruetter deposited that amount into his trust account on November 24, 2009. After
deduction of his fees (there is no mention in the files about costs advanced), there should have
remained $66,667.00 in Gruetter’s trust account for Claimant. That money has not been
accounted for.
Claimant was involved in a second, unrelated automobile accident on April 30, 2007 and
she retained Gruetter to pursue her claims from that incident. After a jury trial in January 2011,
Claimant was awarded $24,919.18 in damages and $1259.00 in costs (for a total of $26,178.18).
The defendant insurance carrier paid $3,169.18 directly to Claimant’s PIP carrier and sent the
balance to Gruetter. (Note, the check appears to have been short by $100; instead $23,009.00,
Gruetter received only $22,909.00) After deducting Gruetter’s 40% fee ($9,967.67) and a PIP
payment of $3,169.18, there should have been $11,682.33 in Gruetter’s trust account for
Claimant. That money has not been accounted for.
The CSF Committee recommends two awards to Claimant, one for $50,000 and the
second for $11,682.33 on the grounds that she has two separate claims against Gruetter for his
theft of two unrelated settlements. The Committee concluded that the $50,000 cap is per claim
and not per claimant and therefore, the claimant here is entitled to two awards.
No. 2012-35 GRUETTER (Martinez) - $7,061.23
Claimant retained Gruetter in June 2008 to represent her in a medical malpractice claim.
Gruetter settled the case in March 2010 for $50,000. He provided a preliminary accounting
reflecting the deduction of his fees and costs, together with $15,112.26 he would hold in trust
to cover outstanding medical expenses. That left a net of $17,980.33 for the client; Gruetter
said there would be an additional distribution if he could negotiate down the lien obligations.