Overview

In the Matter of Yagman is a major discipline case involving multiple violations related to client trust accounting, fee agreements in civil rights litigation, failure to communicate settlement offers, and moral turpitude arising from an attorney’s intentional concealment of fee arrangements from a federal court.

Facts

Respondent represented multiple plaintiffs in a federal civil rights action arising from police shootings. The clients obtained modest jury verdicts totaling approximately $44,000, while respondent later secured a statutory attorney fee award of more than $378,000.

Respondent had entered into a retainer agreement granting him a 45% contingency fee in addition to any statutory fee award. He failed to disclose this agreement to the federal court during his fee application and later collected both the statutory award and the contingency fee.

The State Bar also alleged misconduct involving failure to communicate a written settlement offer, commingling of trust funds, delayed payment to clients, and failure to provide proper accountings.

Charges

• Failure to communicate settlement offer (Rule 3-510)
• Failure to promptly pay client funds (Rule 4-100(B)(4))
• Failure to render accountings (Rule 4-100(B)(3))
• Commingling and misappropriation of funds
• Illegal and unconscionable fee agreement (Rule 4-200)
• Moral turpitude (§ 6106)

Key Legal Principles

1) All written settlement offers must be communicated

Attorneys must promptly convey any written settlement proposal to clients, regardless of whether it qualifies as a binding contract offer.

2) Civil rights fee agreements are subject to court supervision

Attorneys may collect both contingency and statutory fees only if the total fee is reasonable and disclosed to the supervising court.

3) Concealing fee agreements from a court constitutes moral turpitude

Drafting a fee agreement designed to evade judicial supervision and later collecting undisclosed fees involves dishonesty and moral turpitude.

4) Unconscionability evaluated at time fees are taken

Even if initially valid, a fee becomes unconscionable when its ultimate impact produces a grossly disproportionate result.

5) Attorneys must promptly distribute client funds

Delay in distributing funds after entitlement becomes fixed violates trust account rules.

Aggravation

• Prior disciplinary record
• Multiple acts of misconduct
• Harm to clients

Mitigation

• Good character evidence
• Candor during proceedings

Outcome

The Review Department found additional culpability beyond the hearing judge’s findings and recommended three years’ stayed suspension, three years’ probation, and one year of actual suspension, along with restitution and proof of rehabilitation if suspension extended beyond two years.

Sanctions Table