Filed: November 9, 2000

In re Complaint as to the Conduct of:

WILLIAM J. CLAUSSEN,

Accused.

En Banc

On review of the decision of a trial panel of the Disciplinary Board.

Argued and submitted September 10, 1999.

Gary M. Bullock, of Bullock and Regier, P.C., Portland, argued the cause and filed the brief for the accused. Daniel R. Reitman, filed the reply brief.

Mary A. Cooper, Assistant Disciplinary Counsel, Oregon State Bar, Lake Oswego, argued the cause and filed the response for the Oregon State Bar.

PER CURIAM

Complaint dismissed.

PER CURIAM

In this lawyer disciplinary proceeding, a trial panel of the Disciplinary Board found that the accused lawyer, William J. Claussen, violated Code of Professional Responsibility Disciplinary Rule (DR) 1-102(A)(3) (prohibiting conduct involving dishonesty, fraud, deceit, or misrepresentation) and DR 7-102(A)(7) (prohibiting counseling or assisting client in conduct that lawyer knows is illegal or fraudulent). The Oregon State Bar (Bar) alleged that the accused violated those ethical rules while representing Jean Wilkinson in a bankruptcy proceeding. Specifically, the Bar contended that, in a letter that the accused sent to an insurance company, the accused misrepresented that federal bankruptcy law entitled Wilkinson to the cash surrender value of an insurance policy. The trial panel agreed with the Bar, imposed an eight-month suspension, and required the accused to retake the professional responsibility portion of the Bar examination. We review de novo. Bar Rule of Procedure (BR) 10.6. We conclude that the Bar has failed to prove by clear and convincing evidence that the accused violated either DR 1-102(A)(3) or DR 7-102(A)(7). Accordingly, we dismiss the Bar's complaint.

The following facts are undisputed. In 1984, Philip and Janette Cushman filed a nuisance action against Wilkinson. In June 1988, Wilkinson created a revocable living trust, with her ill mother as primary beneficiary and herself as trustee and contingent beneficiary. Wilkinson transferred some of her real estate holdings into that trust. In July 1988, the Cushmans obtained a judgment against Wilkinson.

In August 1988, Wilkinson, using proceeds from a loan secured by other property she owned, purchased a life insurance policy from Pacific Standard Life Insurance Company (Pacific) for $35,000. Wilkinson named the trust as beneficiary of that policy. Later that month, Wilkinson contacted the accused and asked him to file a bankruptcy proceeding for her. She was unable to file for personal reorganization under Chapter 13 of the United States Bankruptcy Code, 11 USC