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State Bar suspends Medford lawyer Carlyle Stout gets 30 days for conduct reflecting `selfish motives' By PETER WONG A Medford lawyer is in the middle of a 30-day suspension as a result of disciplinary action by the Oregon State Bar. The suspension of Carlyle Stout began Sept. 22, the day after the state bar approved a stipulation for discipline that Stout agreed to. In such a stipulation, the state bar and the accused lawyer agree on a statement of facts, and the lawyer accepts a designated form of discipline. A statement from the state bar said that Stout, who has practiced law in Oregon 20 years, cooperated with the investigation and has no previous disciplinary record. But it also said "the accused's conduct reflects selfish motives." Stout acknowledged receiving $17,000 from a trust account ordered by a client, William Hartnell, who was locked in a legal dispute with Rough and Ready Lumber Co. of Cave Junction. The trust account, which contained $32,809, constituted the company's share of proceeds from logging on a 1,080-acre tract in Jackson County. A previous loan from the company obligated the landowner to pay $50 for every 1,000 board feet of timber cut, other than pine. Harnett acquired the tract, assisted by Stout, in late 1992. When the company sought to foreclose in 1993, Stout did not represent Hartnell in that proceeding. But Hartnell directed Stout to set up a trust account for the proceeds from the timber sales, and to pay Stout's legal fees from the account. A judge decided in favor of the company and against Hartnell and others in May 1997. Lewis Krauss, Rough and Ready's vice president, then filed a complaint against Stout. The state bar concluded that Stout's action "caused potential serious injury to Rough and Ready, which did not receive the funds that it was entitled to receive." Stout was on a previously arranged trip when his suspension began. In a brief interview in mid-September, he said he would not comment on the facts beyond those disclosed in the state bar's written statement. "But I tell my kids that if they are wrong and make a mistake, they should take responsibility for it and move on," Stout said. "The bar and the public should expect no less from me. So I take full responsibility. I made a mistake. I regret that it occurred and I will not let it happen again." Stout said he also offered a public apology at a Sept. 14 meeting of the Jackson County Bar Association. The disciplinary proceeding was the state bar's fifth against a Rogue Valley lawyer this year: Sandra Sawyer of Medford was ordered suspended for nine months for ethical misconduct in connection with her actions on behalf of a family friend and client. Her suspension will take effect only after an automatic review by the Oregon Supreme Court, which has not acted on it yet. She said she will defend herself against the accusations. Robert W. Dewey of Grants Pass resigned after he was accused of defrauding more than a dozen clients and continuing to practice law after he was suspended. Raymond R. Smith of Medford resigned after a bar panel considered 23 ethics violations, which involved allegations of trust fraud dating back to 1988, and recommended his disbarment. Daniel Kellington of Medford was cleared of disciplinary charges in connection with helping a business client who turned out to be an international drug-smuggling fugitive. A federal appeals court is considering whether Kellington should go to prison or get a new trial. Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA