Iowa Supreme Court Attorney Disciplinary Board Vs. Steven B. Joy

Supreme Court of Iowa·Decided February 23, 2007·No. 10 / 06-1760·Published

Opinion

IN THE SUPREME COURT OF IOWA No. 10 / 06-1760

Filed February 23, 2007

IOWA SUPREME COURT ATTORNEY DISCIPLINARY BOARD,

Complainant, vs. STEVEN B. JOY, Respondent.

On review of the report of the Grievance Commission.

Grievance Commission reports respondent has committed numerous acts of neglect and other misconduct and recommends suspension of respondent’s license to practice law. LICENSE SUSPENDED.

Charles Harrington and Teresa A. Vens, Des Moines, for complainant.

Steven B. Joy, Grand Junction, pro se.

APPEL, Justice.

In this matter, the Grievance Commission recommends suspension of Steven B. Joy’s license to practice law in Iowa for a period of two years without possibility of reinstatement as a result of neglect on multiple matters and other professional misconduct under the Iowa Code of Professional Responsibility, which governed conduct of Iowa attorneys prior to July 1, 2005. The Commission further recommends that prior to any application for reinstatement, Joy undertake ethics training, obtain an evaluation from a licensed health care professional, and pay certain monetary amounts owed to former clients. While Joy did not participate in the hearing and has not appealed, we review attorney disciplinary matters de novo. After review of the entire record, we suspend Joy’s license indefinitely, with no possibility of reinstatement for eighteen months, and adopt as our own most of the conditions on reinstatement recommended by the Commission.

I. Prior Proceedings.

Steven B. Joy is an Iowa attorney. He was admitted to the practice of law in Iowa in 1990. At the time of these disciplinary proceedings, Joy

was a sole practitioner in Mechanicsville, Iowa.

On June 26, 2006, the Iowa Supreme Court Attorney Disciplinary

Board filed a complaint against Joy alleging five counts of ethical violations. Counts I through III alleged neglect and other professional misconduct in connection with three estates. Count IV alleged that Joy had failed to properly handle tax returns for a husband and wife. Count V alleged that Joy had failed to cooperate with the Board in connection with its investigation of complaints made against him.

Joy filed an answer before the Board generally denying the charges, but did not appear at the scheduled hearing on October 5,

2006. At the hearing, the Commission heard testimony from five witnesses. The Commission also received into evidence thirteen exhibits, which provided extensive documentation regarding the matters which Joy allegedly neglected as well as Joy’s nonresponsiveness to inquiries of the Board.

On November 3, 2006, the Commission issued its Findings of Fact, Conclusions of Law, and Recommendation in this matter. The Commission found that Joy had neglected the three estates in question, disregarded various court orders, engaged in misrepresentations to the courts and clients, did not return unearned attorneys’ fees in one case, and failed to cooperate with the Board on a number of occasions.

II. Standard of Review.

Review of attorney disciplinary proceedings is de novo. Iowa Ct. R.

35.10(1). In deciding the matter, the court considers the findings of fact and disciplinary recommendation of the Commission. Iowa Supreme Ct. Bd. of Prof’l Ethics & Conduct v. Honken, 688 N.W.2d 812, 815 (Iowa 2004). The Board must prove ethical violations by a “convincing preponderance of the evidence.” Iowa Supreme Ct. Bd. of Prof’l Ethics &

Conduct v. Williams, 675 N.W.2d 530, 531 (Iowa 2004). Upon review, this court may impose a greater or lesser sanction than the Commission

recommended. Iowa Ct. R. 35.10(1).

III. Facts.

As required by Iowa Court Rule 35.10(1), we have conducted a de novo review of the entire record in this matter.

A. Estate of Colleen M. Shulista.

Count I of the petition related to Joy’s handling of the estate of Colleen M. Shulista. The record shows that this matter involved a simple estate with only one small parcel of farmland. The evidence further

established that Joy did not complete the required work in a timely manner, which resulted in the district court clerk issuing two delinquency notices. After unsuccessfully attempting to establish communications with Joy through repeated phone calls and a certified letter, the executor hired another attorney to complete the work on the estate. The estate was open for over four years prior to closure. See generally Iowa Code § 633.473 (2003) (requiring closure of estate within three years unless otherwise ordered by the court).

Joy compounded his neglect by being less than candid with the court. For example, Joy responded to one of the delinquency notices by stating that the remaining work to be done was to obtain an income tax acquittance, prepare the final report, and prepare and file an affidavit for change of title. Joy failed to disclose that state and federal tax returns had not been prepared or filed.

B. Estate of Viola Irene Krumm Williams.

Count II of the petition concerns the estate of Viola Irene Krumm Williams. The evidence established that Joy failed to complete the work on this estate in a timely manner. Because of his tardiness, the district

court clerk issued seven notices of delinquency, and this estate remained open for a five-and-a-half-year period prior to closure.

In addition, the evidence established that Joy did not comply with orders of the court in this matter. After the clerk issued its fifth delinquency notice, Joy sought direction from the court, claiming he “had had no contact with Fiduciaries in this estate for an extensive period of time.” The district court set the matter for hearing, directed Joy to mail notice to the fiduciaries and beneficiaries of the estate, and ordered Joy to file an affidavit with the court stating that mailing of the notice had been accomplished. On the date set for the hearing, neither Joy nor the

fiduciaries appeared. Joy also failed to file the required affidavit regarding notice to the fiduciaries and beneficiaries, as directed by the district court.

Eventually, as in the Shulista matter, the executors of the estate took matters into their own hands and filed a pro se application for a hearing. The district court complied with their request, and on the scheduled date, the executors, but not Joy, appeared. The district court entered an order requiring Joy to prepare a final report no later than July 15, 2003, or “appropriate sanctions shall be imposed.” On July 15, Joy called the district court, stating that the final report would be mailed that same day. It was not. When the district court subsequently scheduled a hearing to show cause why sanctions should not be imposed, in light of Joy’s noncompliance, Joy did not appear. The district court rescheduled the hearing, and to ensure notice, directed the sheriff to personally serve Joy. Joy again did not appear. An attorney who happened to be in the courthouse on other matters, however, advised the court that Joy was hospitalized. As a result, the district court rescheduled the hearing yet again.

The record does not clearly indicate what happened after the rescheduled hearing, but progress on the estate still was not made. The

executors eventually wrote the district court a letter, stating that Steven Joy failed to appear at three hearings, and asking “where do we go from here?” In response to the letter, the district court scheduled another hearing, with the executors and their attorney directed to show cause why they should not be removed due to their failure to close the estate. Notice was sent to Joy by ordinary mail.

The executors appeared at the hearing in person, but Joy did not.

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