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Justices suspend attorney for collecting 'exploitive fee'

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The Indiana Supreme Court has suspended an Indianapolis attorney after finding he engaged in attorney misconduct by collecting a “clearly unreasonable and exploitive fee” from a vulnerable client.

Everett E. Powell II had only been admitted to the bar for a few months in 2004 when T.G. and her boyfriend J.S. consulted him about getting access to funds in a trust. T.G. had been represented by Mark E. Ross in a settlement of a personal injury action. The trust was created to hold the $42,500 from the settlement in order to preserve T.G.’s eligibility for public assistance and prevent depletion of funds by T.G. or those who may not be acting in her best interest, like J.S. T.G. had a history of drug and alcohol abuse and said she was in an abusive and controlling relationship with J.S.

Ross declined to give T.G. access to the trust account, so T.G. went to Powell. Because she didn’t have money to pay a fee upfront, she agreed to a contingent fee of one-third of whatever was in the trust. Powell misrepresented to Ross that he was going to take over as trustee when in fact he intended to dissolve the trust. As soon as he became successor trustee, he deposited a check that was intended to pay for medical bills into the trust, and Powell paid himself $14,815.55 as his fee, and gave T.G. nearly $30,000. The remaining funds remained in the account until bank fees depleted them.

In In the Matter of Everett E. Powell, II, No. 49S00-0910-DI-426, the high court found Powell violated Indiana Professional Conduct Rule 1.5(a) by collecting the unreasonable fee. While he may have reasonably believed in the beginning that removing Ross as trustee could be contested or how much money was in the account, the case quickly proved to be relatively conflict-free as Ross agreed to resign and he then knew how much money was in the account.

Powell claimed that his fee could be justified by “red flags” raised by a client complaining about a former attorney because that client could then treat him the same way and he could have faced a legal action for breach of trust.

“Even if ‘red flags’ that a client may be difficult to deal with could justify a higher fee than would be reasonable otherwise, we reject any suggestion that an attorney's concern that he may be committing legal malpractice in representing a client justifies charging the client a higher fee,” states the per curiam opinion. “We do not suggest that a contingent fee must be reduced every time a case turns out to be easier or more lucrative than contemplated by the parties at the outset. But collection of a fee under the original agreement is unreasonable when it gives the attorney an unconscionable windfall under the totality of the circumstances.”

The justices found Powell wasn’t remorseful, made contradictory and evasive assertions during the proceedings, didn’t fully cooperate with the Disciplinary Commission’s investigation, knew his client was vulnerable, made misrepresentations to Ross, and never made restitution. Powell has no disciplinary history and he was a newly admitted attorney at the time of the misconduct.

After looking at previous disciplinary actions involving fee violations, the justices imposed a 120-day suspension without automatic reinstatement, beginning Nov. 11.

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  • 3rd Para Typo
    Good coverage - typo shifts "T.G." to "T.S." at beginning of third paragraph.

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  1. Frankly, it is tragic that you are even considering going to an expensive, unaccredited "law school." It is extremely difficult to get a job with a degree from a real school. If you are going to make the investment of time, money, and tears into law school, it should not be to a place that won't actually enable you to practice law when you graduate.

  2. As a lawyer who grew up in Fort Wayne (but went to a real law school), it is not that hard to find a mentor in the legal community without your school's assistance. One does not need to pay tens of thousands of dollars to go to an unaccredited legal diploma mill to get a mentor. Having a mentor means precisely nothing if you cannot get a job upon graduation, and considering that the legal job market is utterly terrible, these students from Indiana Tech are going to be adrift after graduation.

  3. 700,000 to 800,000 Americans are arrested for marijuana possession each year in the US. Do we need a new justice center if we decriminalize marijuana by having the City Council enact a $100 fine for marijuana possession and have the money go towards road repair?

  4. I am sorry to hear this.

  5. I tried a case in Judge Barker's court many years ago and I recall it vividly as a highlight of my career. I don't get in federal court very often but found myself back there again last Summer. We had both aged a bit but I must say she was just as I had remembered her. Authoritative, organized and yes, human ...with a good sense of humor. I also appreciated that even though we were dealing with difficult criminal cases, she treated my clients with dignity and understanding. My clients certainly respected her. Thanks for this nice article. Congratulations to Judge Barker for reaching another milestone in a remarkable career.

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