Iowa Supreme Court Attorney Disciplinary Board v. Edward F. Noyes

CourtSupreme Court of Iowa
DecidedDecember 13, 2019
Docket19-0499
StatusPublished

This text of Iowa Supreme Court Attorney Disciplinary Board v. Edward F. Noyes (Iowa Supreme Court Attorney Disciplinary Board v. Edward F. Noyes) 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.

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Iowa Supreme Court Attorney Disciplinary Board v. Edward F. Noyes, (iowa 2019).

Opinion

IN THE SUPREME COURT OF IOWA

No. 19–0499

Filed December 13, 2019

IOWA SUPREME COURT ATTORNEY DISCIPLINARY BOARD,

Appellee,

vs.

EDWARD F. NOYES,

Appellant.

On appeal from the report of the Iowa Supreme Court Grievance

Commission.

In attorney disciplinary action, grievance commission recommends

suspension for multiple violations of ethical rules. LICENSE

SUSPENDED.

Edward F. Noyes, Fairfield, pro se.

Tara van Brederode and Wendell J. Harms, Des Moines, for appellee. 2

McDONALD, Justice.

The Iowa Supreme Court Attorney Disciplinary Board filed a

complaint against attorney Edward F. Noyes after an audit of his client

trust account (CTA) revealed potential violations of the Iowa Rules of

Professional Conduct. A division of the Iowa Supreme Court Grievance

Commission found Noyes violated the rules in four respects and

recommended this court suspend Noyes’s license to practice law in this

state for sixty days. We find and conclude Noyes violated the Iowa Rules

of Professional Conduct, but we disagree with the commission’s

recommended suspension. We suspend Noyes’s license to practice law in

Iowa for thirty days from the filing date of this opinion.

I.

“We review attorney disciplinary proceedings de novo.” Iowa

Supreme Ct. Att’y Disciplinary Bd. v. Mathahs, 918 N.W.2d 487, 489 (Iowa

2018). “The Board must prove ethical violations by a convincing

preponderance of the evidence.” Id. A convincing preponderance of the

evidence lies between the preponderance-of-the-evidence standard in a

civil case and the reasonable-doubt standard in a criminal case. Id. “We

may impose a greater or lesser sanction than what the commission has

recommended upon proof of an ethical violation.” Id.

II.

By way of background, Noyes obtained his license to practice law in

Iowa in 1985. Since obtaining his license, Noyes has been publicly

reprimanded on four separate occasions (1998, 2012, 2014, and 2016) for

violations of the rules of professional conduct. The 2014 public reprimand

arose out of Noyes’s failure to provide a client with a contemporaneous

written accounting of services performed in violation of Iowa Court Rule

45.7(4). See Iowa Ct. R. 45.7(4) (stating a lawyer must promptly provide a 3

client a full written accounting upon withdrawal of a fee or expense). The

2016 public reprimand arose out of Noyes’s failure to adequately supervise

a nonlawyer intern in violation of Iowa Rule of Professional Conduct

32:5.3. Like his most recent reprimands, this disciplinary proceeding also

involves Noyes’s failure to manage his CTA and supervise a nonlawyer

employee.

In September 2015, an auditor for the Iowa Supreme Court Client

Security Commission audited Noyes’s CTA. The audit showed client funds

in the CTA were $12,898.03 lower than they should have been. The causes

of the deficiency were threefold. First, four clients had negative trust

account balances in the total amount of $4162.70. Client Patrick

Gunderson had a negative balance of $3000 since July 9, 2015.

Gunderson’s negative balance resulted from a series of advances Noyes

made to Gunderson. Client Craig Howard had a negative trust account

balance of $1102 since September 19, 2014. The negative balance in

Howard’s account resulted from Noyes over disbursing $1102 from the

account. Noyes billed Howard for the amount of the over disbursement,

but Howard did not pay the bill. Client Steve Knipfer had a negative

balance of $55.35 since December 8, 2014. Client Emilee Steinbach had

a negative balance of $5.35 since February 5, 2014. The last two negative

client account balances were the results of improperly accounted for

checks. Second, Noyes had not reimbursed the CTA for bank fees he paid

when he received client funds by credit card payment. The accumulated

credit card fees totaled $4900.88. Third, Noyes could not identify the

clients associated with several CTA disbursements in the total amount of

$3834.49.

Within five days of the audit results, Noyes reimbursed the CTA with

earned fees that were still in the CTA. No clients suffered personal loss. 4

At the time of the audit, Noyes’s firm used QuickBooks accounting

software. Noyes admitted he was “personally responsible for the balancing

of the trust account.” He admitted that he had “no experience in

QuickBooks software and relied upon [his] office manager” and a

consultant. The office manager was Pam Breeding. She was responsible

for the firm’s accounting. The consultant was Paul Saipher. Saipher was

an accountant and Certified Advanced QuickBooks ProAdvisor. Noyes

hired Saipher to provide support with the installation of the software and

to provide ongoing tech support, training, and consulting. Noyes paid

Saipher approximately $7000 per year in consulting fees.

After the audit, Breeding revealed she did not fully understand how

to use QuickBooks but had been afraid to tell anyone at the firm about her

struggles with the program. Breeding admitted that several of the

problems discovered in the audit were a result of her accounting mistakes

and that she had not been properly conducting the monthly

reconciliations. Breeding reported, “Other than working with Paul

[Saipher] I had no training in QuickBooks or accounting and [became]

confused easily when errors were made.” Noyes does not deny that

Breeding may have stated this to the auditor.

The Board filed the instant complaint against Noyes. The Board

alleged Noyes provided financial assistance to a client, in violation of rule

32:1.8(e); commingled CTA and business funds and failed to keep proper

records of client funds, in violation of rule 32:1.15(a); failed to follow Iowa

Court Rules, chapter 45, in violation of rule 32:1.15(f); and failed to

properly supervise staff, in violation of rule 32:5.3. The commission found

the Board had proved the violations by a convincing preponderance of the

evidence. 5

The commission recommended that Noyes’s license be suspended

for sixty days. Aggravating factors included Noyes’s thirty-plus years of

experience practicing law, his four previous public reprimands, and the

similarity between the prior violations that resulted in public reprimands

and the violations in this case. Mitigating factors included Noyes’s

cooperation during the disciplinary process, his willingness to adjust his

accounting processes to prevent future mishandling of client funds, and

the lack of client harm.

III.

This matter was submitted to the commission on a stipulated

record. See id. r. 36.16(1). The stipulation to facts “binds the parties, the

grievance commission, and the supreme court.” Id. r. 36.16(2). We

“interpret the stipulation of facts with reference to its subject matter and

in light of the surrounding circumstances and the whole record, including

the state of the pleadings, issues involved, and any additional evidence

elicited at a limited hearing.” Id. The parties did not stipulate to the

violations or sanctions, but even if they had, “[a] stipulation as to violations

or sanctions is not binding on the grievance commission or the supreme

court.” Id. r.

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Iowa Supreme Court Attorney Disciplinary Board v. Edward F. Noyes, Counsel Stack Legal Research, https://law.counselstack.com/opinion/iowa-supreme-court-attorney-disciplinary-board-v-edward-f-noyes-iowa-2019.