Iowa Supreme Court Board of Professional Ethics & Conduct v. Eich

652 N.W.2d 216, 2002 Iowa Sup. LEXIS 205, 2002 WL 31251669
CourtSupreme Court of Iowa
DecidedOctober 9, 2002
Docket02-0730
StatusPublished
Cited by16 cases

This text of 652 N.W.2d 216 (Iowa Supreme Court Board of Professional Ethics & Conduct v. Eich) 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 Board of Professional Ethics & Conduct v. Eich, 652 N.W.2d 216, 2002 Iowa Sup. LEXIS 205, 2002 WL 31251669 (iowa 2002).

Opinion

LARSON, Justice.

This is a review of a report by our disciplinary commission concerning the license of the respondent, Ronald F. Eich. See Iowa Ct. R. 35.10(1). We agree with the findings of fact by the commission and its recommendation for discipline. We order the suspension of the respondent’s license for sixty days.

I. Principles of Review.

Iowa Court Rule 35.10(1) directs that within fourteen days after a disciplinary commission report is filed with the clerk of this court, the clerk of the commission shall furnish the entire record. If no appeal is taken or application for permission to appeal is filed within ten days, we will review the matter de novo on the record made before the commission without oral argument or further notice to the parties. On review we may adopt, increase, or reduce the sanction recommended by the commission.

The Board of Professional Ethics and Conduct, as the complainant, must prove the allegations of its complaint by a convincing preponderance of the evidence. Iowa Supreme Ct Bd. of Prof'l Ethics & Conduct v. Postma, 555 N.W.2d 680, 681 (Iowa 1996).

II. The Facts.

Ronald Eich has practiced law in Carroll since 1970. At the time of the commission hearing, he was fifty-nine. He described his practice as largely an office practice, “an extensive income tax practice, probate, ... some bankruptcy work, real estate and [involvement] in the rest of the stuff, divorces, and a little bit of everything.”

This proceeding involves the respondent’s representation of members of a family named Pearson. The respondent drafted wills for Frank Hilding Pearson (Hilding)' and Hilding’s sister, Martha Pearson, in 1990. Both Pearsons were unmarried without children. In 1991 another brother, “Bert” Pearson, and Bert’s son, Andy, talked to Eich about conserva-torships and guardianships for both Hild-ing and Martha, who were both very elderly. A voluntary conservatorship petition was signed by Hilding. An involuntary conservatorship was proposed for Martha. Bert and Andy were to be conservators for both Hilding and Martha. Apparently on the same day the applications for appointment were drafted, Bert and Andy signed court officer deeds conveying Hilding’s and Martha’s land to the conservators. Andy candidly testified at the commission hearing that the transfer was motivated at least in part to deplete Hilding’s and Martha’s assets for purposes of making them eligible for Title XIX benefits. At the time the deeds were signed purporting to convey title from the conservatorships, the conservatorships had not even been officially opened. The respondent testified it was not his idea for the conservators to transfer title to themselves.

Shortly after the applications for appointment of conservators and the deeds were drafted, Bert, who was one of the proposed conservators, died. The conser-vatorship for Hilding proceeded with Andy as the sole conservator. Andy filed an inventory in the conservatorship, showing Hilding’s one-half interest in eighty acres of land, which Andy valued at $40,000. Andy pressed to get title to Hilding’s one-half interest, and the respondent drafted a real estate contract to accomplish the transfer. The contract provided a sale price of $40,000 with no down payment and no interest. Although the respondent drafted the contract, he doubted its legal *218 effectiveness because it was unlikely a court would approve it in view of its unsatisfactory terms as to the ward. (Disapproval by the court was almost assured; a later appraisal set the value of the eighty acres at $152,000 — or $76,000 for Hilding’s undivided half interest.)

Under the proposed transfer, Andy was to acquire title by applying rental payments from the land (to which the ward was already entitled) to buy the land from the ward. Eich, however, did not advise Andy of the problems in the proposed transfer. In fact, he drafted a court officer deed to complete the transfer and, again, failed to submit it to the court in the conservatorship for approval. Nevertheless, the deed was recorded on June 26, 1992.

Hilding Pearson died on April 12, 1994. Eich drafted a final report in the conserva-torship, stating that Andy, as “executor” of Hilding’s estate, had received all of the assets of the conservatorship. Eich obtained an order approving the final report, which found that the executor of Hilding’s estate received the conservatorship assets, although in fact no estate for Hilding had even been opened. This was in 1995.

In 1998 the problems in the conservator-ship “transfer” surfaced when Andy attempted to use the land he thought he owned for security for a loan. The abstract showed no court approval for the sale. Eich said he would cure the problem by opening an estate for Hilding, but the necessary papers that Andy had signed were never filed.

Meanwhile, Martha Pearson, Hilding’s sister and the owner of the other half of the eighty-acre farm, needed help because of her declining health. Eich drafted a court officer deed from the Martha Pearson “conservatorship” to Andy conveying Martha’s half interest to Andy. However, no conservatorship had even been opened.

Andy, displeased with Eich’s representation, hired an Omaha lawyer, Richard D. Myers, who wrote to Eich on March 19, 1999, requesting the immediate completion of the probate matters. In September 1999 Myers referred the matter to a Council Bluffs lawyer, Jack Ruesch, to contact Eich about the conservatorship and estate matters. Ruesch pointed out to Eich that the statute of limitations on admitting Hilding’s will to probate had expired, and it could not be probated. The court officer deed from Martha’s nonexistent “conserva-torship” was also a problem raised by attorney Ruesch.

Andy’s father, Bert, had died on June 22, 1991, and the Iowa Department of Revenue and Finance was pursuing Andy, as executor, for approximately $29,000 in inheritance tax, interest, and penalties. Eich had failed to complete and file the inheritance tax return or pay the tax. (Andy, in his commission testimony, assumed some of the blame for the inheritance tax problem because he had insisted, erroneously, that his father’s estate would not be subject to Iowa inheritance tax because the beneficiary was a resident of Nebraska.)

Attorney Ruesch took over the probate matters, including payment of the inheritance tax. Penalty and interest had accrued, and at Ruesch’s request, Eich sent a check to cover them. As of the time of the commission hearing, Ruesch. testified he thought it might be necessary to file a quiet title action to clear title to the farm.

III. The Complaint.

The Board alleges the breach of several canons under our Code of Professional Responsibility. It alleges a violation of Canon 1 (lawyers to assist in maintaining integrity and competency of the legal profession); Canon 6 (lawyers should rep *219 resent clients competently); and Canon 7 (lawyers should represent clients zealously within the bounds of the law).

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Bluebook (online)
652 N.W.2d 216, 2002 Iowa Sup. LEXIS 205, 2002 WL 31251669, Counsel Stack Legal Research, https://law.counselstack.com/opinion/iowa-supreme-court-board-of-professional-ethics-conduct-v-eich-iowa-2002.