11:30 AM PST on Saturday, March 26, 2005

Associated Press

The Oregon State Bar says it will take action against former Supreme Court Justice Edward Fadeley on accusations of overcharging a divorce client and violating other rules.

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Fadeley, a Eugene attorney, served on the Oregon Supreme Court from 1989-1998 when he stepped down because of throat cancer. He also served many years in the Oregon Legislature.

Kathleen Tidrick said she gave him $10,000 as a retainer in a divorce case but that when she changed her mind and asked for the unused portion, Fadeley refused to refund it.

Fadeley said he did a substantial amount of work including talking to her on Christmas Eve and Christmas Day in 2003. He said the $10,000 was nonrefundable.

He said he was willing to submit the dispute to an arbitrator but that neither the Bar nor Tidrick would agree.

Kateri Walsh, a bar spokeswoman, said the bar refers fee disputes to arbitration but prosecutes when it thinks that the lawyer charged an excessive fee.

Fadeley also is charged by the bar with conduct involving deceit, refusing to refund money to a client, failure to keep the money in a client trust account and failure to maintain complete financial records.

Lawyers are required to put client funds in a trust account, with the interest going to fund legal-aid programs. Fadeley said the interest belongs to him or the client, but not the bar.

The bar just wants "to jump hard on the guy who doesn't like the trust account program," he said.

The court had previously disciplined Fadeley for violating a rule prohibiting judicial candidates from directly soliciting campaign contributions.