Client seeks up to $1.8 million against attorney in civil suit

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A Brookfield attorney convicted last week of stealing $325,000 from an elderly client faces trial in a civil suit that could result in up to $1.8 million in additional damages.

At a scheduling conference Friday, Milwaukee County Circuit Judge William Sosnay’s court set a March 15, 2013, pretrial date in the case brought by Dorothy Phinney against former Quarles & Brady LLP attorney Jeffrey Elverman, who is accused of stealing $604,980 from the elderly former client, who has dementia.

According to the civil complaint filed in April 2009, Phinney, 94, hired Elverman to provide power of attorney services starting in 2000. During four years of service, the complaint states, Elverman obtained $604,980 from Phinney, but failed to provide the agreed upon legal representation.

Phinney’s attorney, Christopher Stawski, of McGranaghan & Stawski Ltd., Milwaukee, said he has the statutory opportunity to treble the damages sought in the civil case, which would be $1.8 million.

The likelihood that Phinney, 94, will see a dime from the civil suit is a concern, however, Stawski said.

“From a practical standpoint,” he said, “if I took out a judgment against Mr. Elverman, the collectability would certainly be an issue.”

On March 9, in a related criminal case, Milwaukee County Circuit Judge Jeff Conen sentenced Elverman, 52, to five years probation and to pay $325,000 in restitution to Phinney’s legal guardian, Milwaukee-based Supportive Community Services Inc.

Elverman, 52, is employed at a Chicago-based tax firm, Stawski said, and Conen granted work release privileges to meet the restitution schedule that begins May 1 with payment of $1,500 per month through the end of the year. Payments increase to $2,000 per month in 2013 and $3,000 per month in 2014, until paid in full.

If Elverman violates the terms of the criminal sentence, he could face jail time.

Elverman is representing himself in the civil case, after his attorney, Terry Johnson, of Peterson, Johnson & Murray SC, Milwaukee, withdrew March 5. Johnson did not immediately return a call for comment, and Elverman declined to comment.

Given the time frame and the high amount of restitution owed in the criminal case, Stawski said, a judgment against Elverman for a lesser amount could be a more realistic option for the civil case.

The advantage, Stawski said, would be that the judgment would be nondischargeable in bankruptcy because it stems from an intentional act.

“Once he paid off the restitution,” Stawski said, “I could try to garnish his wages or something.”
But even that option poses problems, he said, given Phinney’s age.

State statute would allow Elverman 20 years to pay off the judgment, which Stawski said would mean little to Phinney.

“In all honestly, I don’t see this going to trial,” Stawski said. “The issue is going to be trying to settle for what I can get and resolve the matter.”