Iowa Supreme Court Attorney Disciplinary Board v. Theodore Fredrick Sporer

897 N.W.2d 69, 2017 WL 1533698, 2017 Iowa Sup. LEXIS 43
CourtSupreme Court of Iowa
DecidedApril 28, 2017
Docket16–1441
StatusPublished
Cited by8 cases

This text of 897 N.W.2d 69 (Iowa Supreme Court Attorney Disciplinary Board v. Theodore Fredrick Sporer) 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
Iowa Supreme Court Attorney Disciplinary Board v. Theodore Fredrick Sporer, 897 N.W.2d 69, 2017 WL 1533698, 2017 Iowa Sup. LEXIS 43 (iowa 2017).

Opinion

APPEL, Justice.

In this disciplinary case, attorney Theodore Sporer appeals the findings and recommendations of the Iowa Supreme Court Grievance Commission recommending his law license be suspended for a period of six months. The alleged ethical violations occurred in the aftermath of a divorce decree. In a contempt proceeding arising from the divorce decree, the district court found Sporer falsely testified that he rejected the terms of a settlement letter sent by the opposing lawyer by immediately writing handwritten notes on the letter *71 and sending it back to the opposing lawyer on the same day. The district court also found Sporer falsely and frivolously asserted that the secretary’s signature on the bottom of a settlement letter bound the client to the terms of a settlement agreement.

The Iowa Supreme Court Attorney Disciplinary Board filed a complaint alleging various violations of our ethical rules. After a hearing, the commission concluded that Sporer violated Iowa Rule of Professional Conduct 32:3.1 (“A lawyer shall not ... assert or controvert an issue ... unless there is a basis in law and fact for doing so that is not frivolous.... ”), rule 32:3.3(a)(l) (“A lawyer shall not knowingly ... make a false statement of fact or law to a tribunal....”), rule 32:8.4(c) (“It is professional misconduct for a lawyer to ... engage in conduct involving dishonesty, fraud, deceit, or misrepresentation!!]”), and rule 32:8.4(d) (“It is professional misconduct for a lawyer to ... engage in conduct that is prejudicial to the administration of justice!.]”). The commission did not find a violation of rule 32:3.4(a) (“A lawyer shall not ... unlawfully alter, destroy, or conceal a document....”) as alleged by the Board.

Based upon our review, we affirm the findings of the grievance commission. We also affirm most of the grievance commission’s conclusions. We suspend Sporer’s license to practice law for six months.

I. Factual Background and Proceedings.

A. Introduction. Sporer has been licensed as an Iowa attorney for thirty-one years. During this time, he has maintained a law office in Polk County, Iowa. Sporer’s primary practice areas are civil litigation and domestic relations.

Sporer has a disciplinary history. On August 24, 2011, Sporer received a public reprimand from the Board for violating rule 32:1.4(a)(3) and (4) by failing to inform a client of her trial date and respond to her reasonable inquiries, rule 32:1.3 by failing to diligently file documents in a litigated matter, rule 32:8.4(d) by causing delays in litigation, and rule 32:8.4(c) by engaging in deceit or misrepresentation for advising a client that an order for sanctions was the result of a clerical error.

B. Overview of Factual Record Before the Commission.

1. Propstein divorce proceedings. In 2012, Sporer represented Gary Propstein in a dissolution action against Linda Prop-stein. Lawyer Timothy Duffy represented Linda in the proceedings. The record before the commission establishes that on March 30, 2012, the district court entered its “Findings of Fact, Conclusions of Law, and Decree” in the Propstein divorce proceeding. At the time of the entry of the decree, both Gary and Linda were fifty-three-years old. Their marriage had lasted twenty-one years.

In dividing the marital property, the district court noted that dissipation of assets is a proper consideration. The district court found that Gary had unreasonably dissipated marital assets in contemplation of the dissolution. The court concluded Gary had unreasonably spent $139,000 from a 401 (k) account and $30,000 from the parties’ home equity line of credit. The district court stated it would adjust the distribution of the remaining marital property as if these expenditures had not occurred.

The district court ordered Gary to pay Linda approximately $23,835 for Linda’s share in the marital home. The court also ordered that Linda receive substantial retirement assets through a qualified domestic relations order (QDRO) with a value in *72 excess of $100,000. In addition, the court ordered that Gary’s interest in a defined benefits plan be distributed between the parties according to the formula established in In re Marriage of Benson, 545 N.W.2d 252, 255-57 (Iowa 1996). The district court awarded Linda rehabilitative alimony in the amount of $200 per month for three years.

Sporer filed a motion to amend, requesting that either Gary be given at least eighteen months to pay Linda her equity share in the home or, alternatively, be allowed to transfer his interest in an IRA valued at $23,313 to Linda.

While the motion to amend was pending, the lawyers engaged in settlement negotiations. Consistent with the motion to amend, Sporer proposed that Gary provide Linda with additional retirement funds to offset Linda’s equity share in the marital home. The parties, however, were not able to finalize the agreement, the district court overruled the motion to amend, and Sporer filed a notice of appeal on Gary’s behalf on July 30, 2012.

Sporer did not file a supersedeas bond or seek a stay of the district court order. As a result, the filing of the notice of appeal did not stay enforcement of the district court decree. Gary, however, did not pay Linda the $23,835 for her equitable share in the marital residence within thirty days as required by the district court. On August 30, 2012, Duffy filed a contempt application on behalf of Linda. The district court set a hearing for October 10.

Cumulatively, the district court’s order, Gary’s motion to amend, his settlement posture, his failure to post a supersedeas bond, and his failure to timely pay Linda the $23,835 as required by the divorce decree, suggest that Gary was strapped for cash in the aftermath of the divorce proceeding.

2. September settlement communications. Against the backdrop of Linda’s contempt application and the October 10 hearing date, the parties renewed settlement negotiations. On September 21, Sporer sent Duffy a letter proposing settlement. In the September 21 settlement letter, Sporer proposed that Gary pay Linda $27,000 by cashier’s check within twenty-one days, that Linda execute a quit claim deed on the house, that Gary dismiss the pending appeal, that the parties exchange releases of all claims, and that each party remain responsible for their own attorney’s fees. The September 21 settlement letter did not expressly discuss the distribution of Gary’s retirement assets and benefits or the execution of an appropriate QDRO.

On September 24, Duffy responded with a settlement letter of his own. In his September 24 settlement letter, Duffy responded that the offer from Sporer was acceptable, but with certain changes. Duffy then specifically indicated that he needed information necessary to prepare a QDRO in the matter and asked for any instructions or model language the plan administrator might have to assist in the preparation of the QDRO. From Duffy’s September 24 settlement letter, it was apparent that Duffy did not regard Linda’s entitlement to her share of Gary’s retirement assets and benefits as within the scope of the proposed mutual releases.

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897 N.W.2d 69, 2017 WL 1533698, 2017 Iowa Sup. LEXIS 43, Counsel Stack Legal Research, https://law.counselstack.com/opinion/iowa-supreme-court-attorney-disciplinary-board-v-theodore-fredrick-sporer-iowa-2017.