The Oregon State Bar has determined that Enterprise attorney D. Rahn Hostetter should be barred from practicing law for 150 days. The decision was handed down July 10 by a trial panel made up of attorney Carl W. Hopp, Jr. of Bend, and Bar representatives John A. Berge and John McBee.

In the wake of a May 1 hearing in Enterprise, the trial panel found “by clear and convincing evidence” that Hostetter violated Oregon State Bar’s Code of Professional Responsibility and the Oregon Rules of Professional Conduct in two formal complaints filed against him.

Hostetter will file for a review by the Oregon Supreme Court and may continue to practice law until the final ruling is made – probably by January 2009.

The decision is the result of two complaints made against Hostetter in 2007. The first complaint alleged that he acted improperly in representing Andrew Hohn of Imnaha in 2004 and 2005 in Hohn’s effort to collect on loans Hohn made to Pearl Ingle of Enterprise.

The charge of conflict of interest is based upon the fact that Hostetter first represented Ingle when she obtained the loan, and then represented Hohn in trying to collect the loan from her estate. He did not gain the consent of a personal representative of the estate before representing Hohn, according to Bar documents.

Hostetter contends that such a step is not legally required because his action created no injury to his former client.

“Once Pearl was deceased, and knowing that she wanted Andy paid, there wasn’t any conflict with Pearl,” he said.

A finding in support of Hostetter’s argument would “make new law,” he admitted. “There are no cases on it.”

A second charge against Hostetter has to do with changes made on a legal document – a deed in lieu of foreclosure. The panel concluded that Hostetter “acquiesced” to the removal of a notarized signature from one document in a 2004 case and put the signature on another document.

Hostetter does not deny that alterations to the documents took place but asserts that he, personally, did not make those alterations, they were clearly simply a mistake, and in any case no harm was done or intended.

“It was the same property, the description on one was for four parcels and somehow the description got to be only three parcels – but it didn’t cause anyone to convey anymore (property). Documents are corrected all the time. I contend nothing is wrong from my point of view,” the attorney said.

Nevertheless, the panel found against Hostetter. In their decision the panel were ” unanimous in their belief that the accused , if he practices law again, will commit the same violations that were alleged and proven in the case unless supervised in some way.”

Hostetter’s prior disciplinary offenses were cited as an aggravating circumstance.

Hostetter was suspended for 90 days in December of 1998 after he was found to have taken an unauthorized loan in the amount of $6,699 from his former partners in the law firm of Mautz, Baum, Hostetter & O’Hanlon. Hostetter, who had served as district attorney for Wallowa County from 1983 to 1988, was president of the Wallowa County Bar Association at the time of the suspension.

In addition to the 90-day suspension, Hostetter was fired by the firm and resigned as president of the local bar association.

He admitted to the conduct, saying that it seemed a minor thing at the time, but that he had since realized his error.

Hostetter was not without his supporters in the current action. Former Wallowa County judges Eric Valentine and Warner Wasley were called as Hostetter supporters at the panel hearing, as were David Hurley, Archie Buck, Stephen Krieger, Mark Hemstreet, Donna McCadden and Katy Boyd.

A mitigating circumstance cited by the panel was that Hostetter cooperated with the Bar during the proceedings.