P:\CLEPUB\Books\Disciplinary Board Reporter ... - Oregon State Bar

Cite as In re Eichelberger, 19 DB Rptr 329 (2005)
Violation
14.
The Accused admits that, by undertaking to represent Wendt, without
providing full disclosure and obtaining informed consent, the Accused violated DR
5-105(C).
Leung Matter
Facts
15.
In October 2000, CDC formed Glen Eden III, LLC (hereinafter “Glen Eden
III”), with a California investor, Gary Leung (hereinafter “Leung”), to develop the
third phase of the Glen Eden subdivision. Harris and Leung had discussions in
August and September 2003 about Harris’s proposals to modify the terms of their
operating agreement to alleviate Leung’s recent concerns about Harris’s ability to
perform under the agreement.
16.
Around this same time, the City was due to release approximately $45,000 in
funds owed to Glen Eden III for modifications it required to that phase of the
development. Harris promised the Accused these funds for payment toward his
outstanding legal fees. However, the City’s release required both Harris’s and
Leung’s approval and Harris reported to the Accused that Leung was resisting due
to liability concerns. Accordingly, when Leung came into town to meet with Harris,
the Accused was motivated to talk with Leung about Leung’s apparent opposition to
releasing the City funds for the Accused’s benefit. Harris, on the other hand,
expected the Accused to represent CDC’s legal interests in negotiating with Leung
to modify the Glen Eden III operating agreement. The Accused did not sufficiently
clarify to Harris that he was acting in his own interests in meeting with Leung and
modifying the Glen Eden III agreement, nor did the Accused instruct Harris to obtain
independent advice as to whether Harris should allow the Accused to participate in
those meetings or undertake those modifications.
Violation
17.
The Accused admits that, by participating in the meeting with Leung and
Harris and performing legal services for Harris and his companies in conjunction with
that meeting, solely for the Accused’s own benefit in obtaining his fees, the Accused
violated DR 5-101(A). Upon further factual inquiry, the parties agree that the charge
of alleged violation of DR 4-101(B) related to the Leung Matter, should be and, upon
the approval of this stipulation, is dismissed.
333