Amended April 30, 2015 Iowa Supreme Court Attorney Disciplinary Board v. Verla Jean Bartley

CourtSupreme Court of Iowa
DecidedFebruary 27, 2015
Docket14–0757
StatusPublished

This text of Amended April 30, 2015 Iowa Supreme Court Attorney Disciplinary Board v. Verla Jean Bartley (Amended April 30, 2015 Iowa Supreme Court Attorney Disciplinary Board v. Verla Jean Bartley) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amended April 30, 2015 Iowa Supreme Court Attorney Disciplinary Board v. Verla Jean Bartley, (iowa 2015).

Opinion

IN THE SUPREME COURT OF IOWA No. 14–0757

Filed February 27, 2015

Amended April 30, 2015

IOWA SUPREME COURT ATTORNEY DISCIPLINARY BOARD,

Appellee,

vs.

VERLA JEAN BARTLEY,

Appellant.

Appeal from the report of the Grievance Commission of the

Supreme Court of Iowa.

The grievance commission reports an attorney violated several

court rules and rules of professional conduct and recommends

suspension. LICENSE SUSPENDED.

David L. Brown of Hansen, McClintock & Riley, Des Moines, for

Charles L. Harrington and David J. Grace, Des Moines, for

appellee. 2

CADY, Chief Justice.

The Iowa Supreme Court Attorney Disciplinary Board charged

attorney Verla Jean Bartley with violating the rules of professional

conduct based on neglect, misrepresentations, and trust account and fee

violations in the representation of the executors in two separate estates.

After reviewing a written stipulation entered into by the parties, the

Grievance Commission of the Supreme Court of Iowa found Bartley

violated several rules and recommended a 180-day suspension.

I. Background Facts and Prior Proceedings.

Verla Jean Bartley was admitted to the Iowa bar in 1961. She rose

to prominence in the profession over the years and was active in the

state bar association. She has no prior disciplinary record. In 2002, she

began practicing as “of counsel” with an Iowa City law firm and retired

from the active practice of law in 2014.

The events leading to this disciplinary action against Bartley

involved her conduct in serving as the attorney for the executors in two

estate proceedings. In 2001, Bartley opened the Shepherd estate. She

completed most of the work for the estate in a timely manner. She billed

and collected fees for her work on the estate in late 2006. The fees were

not approved by the district court at that time and were deposited

directly into the firm’s business account rather than the trust account.

In February 2008, the final report for the estate was filed and the

previously paid fees were approved, but the estate did not close at that

time because, according to Bartley, the Iowa Department of Revenue had

not issued the “Certificate of Acquittance from Income Tax.” The court

granted multiple extensions of time to file the certificate from the time of

the final report through June 2013 without resolution. In reality, Bartley

was unable to close the estate due to tax difficulties, including unfiled 3

returns and an unpaid creditor claim that remained outstanding until

late 2013. In the course of trying to close the estate and then to

resolving the tax returns and creditor-claim problems, Bartley made

numerous misrepresentations to the court and members of her law firm

regarding her actions. The misrepresentations included creating a false

check purportedly paying the creditor claim, creating a letter from the

bank indicating the false check was processed, and knowingly

misrepresenting the status of the estate’s tax returns to the court. The

interlocutory reports to the court on the status of the estate also

contained false information.

In 2005, Bartley opened the Gergis estate. Again, Bartley

completed the majority of the estate in a timely manner. In 2005, 2007,

and 2008, the estate’s executor paid Bartley a total of $65,000 in fees

from the estate for her services. The court did not approve the fees at the

time any of the payments were made. The fees represented an amount

that was approximately half of the maximum ordinary statutory fee. The

fees paid in 2005 and 2008 were deposited directly into the firm’s

business account; and the 2007 fee, though initially deposited into the

firm’s trust account, was immediately transferred to the business

account. The estate included a charitable trust and could not be closed

until the necessary tax clearances from the Internal Revenue Service

were received. The final clearance was not issued until March 14, 2013.

On June 24, 2013, the court approved the final report. In the report, the

court approved the fees previously collected by Bartley in 2005, 2007,

and 2008. No additional fees were requested under an agreement with

the executor.

The Shepherd estate was open under Bartley’s direction from

March 2001 through 2013, over twelve years, including over five years 4

after the final report was filed with the court. The Gergis estate was

opened in May 2005 and closed in June 2013, just over eight years later.

The court granted numerous extensions in both estates.

In November 2012, the court informed a partner in Bartley’s law

firm of its concerns regarding her conduct in the Shepherd and Gergis

estates. The partner discussed the problems with Bartley. This

discussion prompted Bartley to send a letter to the Board dated

January 23, 2013, to self-report her neglect on a tax matter for the

Shepherd estate, her conduct in collecting fees from the Gergis estate

without a court order, and her neglect in handling the tax matters in the

Gergis estate.

On April 29, 2013, a formal complaint was filed with the

commission. The Board amended the complaint once in October after

reviewing case files and a second time at the end of November in

response to a letter from a partner in Bartley’s law office documenting

ongoing violations that had occurred subsequent to Bartley’s self-report.

II. Board Complaint.

The Board charged Bartley with multiple violations of the rules of

professional responsibility, Iowa court rules, and statutes. Count I

included all the violations resulting from her actions with the Shepherd

estate. She was charged with violations of Iowa Code section 633.198

(2013) (court determination of probate fees); Iowa Court Rules 7.2

(probate fees) and 45.7 (advance fee deposit requirement); Iowa Rules of

Professional Conduct 32:1.3 (2014) (reasonable diligence), 32:1.5(a)

(payment of fees), 32:1.15 (trust account), 32:3.3(a)(1) (candor with

tribunal), 32:8.4(c) (dishonest, fraudulent, or deceitful conduct), and

32:8.4(d) (prejudice to the administration of justice); and for actions

predating the 2005 rules change, Iowa Code of Professional 5

Responsibility for Lawyers rules DR 1–102(A)(5) (prejudice to

administration of justice), DR 1–102(A)(6) (fitness to practice law), and

DR 6–101(A) (failure to act competently). Count II, concerning the Gergis

estate, charged violations of Iowa Code section 633.198; Iowa Court

Rules 7.2 and 45.7; and Iowa Rules of Professional Conduct 32:1.3,

32:1.5(a), 32:1.15, and 32:8.4(d).

Bartley and the Board entered into a written stipulation rather

than proceeding to an evidentiary hearing before the commission. As to

the Shepherd estate, she agreed she failed to perform her responsibilities

with reasonable diligence, made misrepresentations to the court and her

law firm regarding tax matters and creditor claims, received attorney fees

without court approval, and either did not deposit those fees in the trust

account or withdrew them prematurely. In the Gergis estate, Bartley

stipulated that she failed to exercise reasonable diligence and

preparation, received attorney fees without court approval, failed to

deposit fees into the trust account, and prematurely withdrew fees from

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