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

657 N.W.2d 457, 2003 Iowa Sup. LEXIS 44, 2003 WL 467242
CourtSupreme Court of Iowa
DecidedFebruary 26, 2003
Docket02-1785
StatusPublished
Cited by7 cases

This text of 657 N.W.2d 457 (Iowa Supreme Court Board of Professional Ethics & Conduct v. Reese) 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. Reese, 657 N.W.2d 457, 2003 Iowa Sup. LEXIS 44, 2003 WL 467242 (iowa 2003).

Opinion

LAVORATO, Chief Justice.

The Iowa Supreme Court Board of Professional Ethics and Conduct charged Michael D. Reese with ethical violations involving neglect of clients’ matters, misappropriation of clients’ funds, failure to return clients’ properties in violation of court orders, improper receipt of probate fees, misrepresentations to a client, and failure to respond to the Board’s inquiries regarding these alleged violations. Following a disciplinary hearing, a division of the Iowa Supreme Court Grievance Commission concluded the Board had established these violations and recommended that we revoke Reese’s license to practice law in this state. We agree with the Commission’s recommendation and revoke Reese’s license.

I. Background Facts.

In July 2002 the Board filed a complaint against Reese, alleging he violated various provisions of the Iowa Code of Professional Responsibility for Lawyers.

Although the Board made proper service on Reese, he did not answer the complaint. His failure to answer the complaint resulted in an admission of all its allegations. See Iowa Ct. R. 36.7 (“If the respondent fails ... to file such answer within the time specified, the allegations of the complaint shall be considered admitted .... ”).

*459 Moreover, the Board filed fifty-six requests for admissions pursuant to Iowa Court Rule 35.6 and Iowa Rule of Civil Procedure 1.510, to which Reese did not respond. His failure to respond resulted in an admission of all matters requested to be admitted. See Iowa R. Civ. P. 1.510(2). All such matters were therefore conclusively established for purposes of the disciplinary hearing. See Iowa R. Civ. P. 1.511; see also Iowa Supreme Ct. Bd. of Profl Ethics & Conduct v. Allen, 586 N.W.2d 383, 387 (Iowa 1998).

We find the following facts based on the complaint, the admissions, and the testimony of the Board’s witnesses at the disciplinary hearing.

A. Christiansen dissolution. In 1998 Reese represented Andria Christiansen in a dissolution of marriage action. The dissolution decree, entered in January 1999, directed counsel to prepare a qualified domestic relations order (QDRO) for the division of assets in a retirement account belonging to Christiansen’s former husband. Reese and opposing counsel agreed that Reese would prepare the QDRO. Reese misrepresented to Christiansen that he had prepared and filed the QDRO.

Christiansen filed a complaint with the Board. Reese failed to respond as requested to two notices of the complaint, which the Board had sent him.

B. Brauch bankruptcy. In 1998 Sandra Brauch paid Reese a $500 retainer to represent her in filing for bankruptcy. Reese failed to file the bankruptcy petition. He abandoned his practice without notice to Brauch and without accounting for or returning her money and papers.

Brauch filed a complaint with the Board. Reese failed to respond to two notices from the Board about the complaint.

C. Hardenbrook personal injury matter. Reese represented Sheila Harden-brook as plaintiff in a personal injury action that arose from a 1995 automobile accident. Hardenbrook had medical insurance coverage under her husband’s policy with Wellmark Blue Cross and Blue Shield of Iowa. Under the policy, Wellmark was subrogated in the amount of $2,023.59 to any recovery Hardenbrook might receive from the defendant in the personal injury action.

In November 1998 Wellmark proposed that Reese represent it with respect to its subrogation claim for a fee of twenty-five percent of any recovery obtained before trial. Reese settled with the defendant. He retained $2000 from the settlement proceeds to apply to Wellmark’s subrogation claim, with the understanding that he would return to Hardenbrook any outstanding balance after payment of the sub-rogation claim. Reese failed to distribute the $2000 to Wellmark or to Hardenbrook.

In August 1999 Wellmark requested from Hardenbrook’s husband payment of the subrogation claim. Thereafter, Har-denbrook wrote Reese a letter asking for distribution of the $2000, to which he has never responded. As of April 2002 Well-mark was still contacting the Harden-brooks about its subrogation claim.

Hardenbrook filed a complaint against Reese with the Board. Reese failed to respond to two notices from the Board regarding the complaint.

D. Probate matters. During all or part of 1998, 1999, and 2000 Reese represented the estate of the decedent in nine separate Polk County probate matters. Reese neglected the nine estates by failing to file in a timely manner the final report and close the estates, or by failing to comply with other probate deadlines. Reese was also the attorney for the guardianship of David S. Scothorn in 1998 and 1999. In both years, he neglected to file in a timely *460 manner the annual report in the guardianship. Reese received more than thirty delinquency notices from the clerk of court in these matters.

In 1998, 1999, and 2000 Reese received formal inquiries from the Board requesting his response to complaints regarding probate delinquencies. He failed to reply to all but one of the notices. In the one instance in which he did respond, Reese failed to follow up with promised action to remove the delinquencies or withdraw as counsel.

E. Hunt estate. In 1997 Reese took all of his attorney’s fee in the estate of Grace V. Hunt without obtaining a court order authorizing the fee and without filing an inheritance tax clearance and a final report. The fee totaled $1500, which exceeded the maximum statutory fee for ordinary services as provided in Iowa Code sections 633.197 and 633.198. Although the estate file shows there was a contested real estate matter that might have justified an extraordinary fee, Reese never obtained court approval that such a fee requires. See Iowa Code § 633.199.

Reese abandoned his practice while the estate was still open and failed to turn over the estate’s records and the unearned portion of his fee to the executor.

F. Chiles estate. In 1999 Reese took attorney’s fees totaling $800 in the estate of Phyllis R. Chiles without filing an inventory or obtaining a court order authorizing the fee. Later, the district court removed Reese as attorney for the estate. Following his removal, Reese failed to turn over the estate’s books, records, and documents to the executor within fourteen days as the district court had ordered.

II. Proceedings.

In its complaint filed against Reese, the Board alleged that in conjunction with the transactions outlined above, Reese violated the following disciplinary rules: DR 1-102(A)(1), (3), (4), (5), and (6); DR 2-106(A); DR 2-110(A)(2) and (3); DR 6-101(A)(3); DR 7-101(A); DR 7-106(A); and DR 9-102(B)(3) and (4).

Reese did not appear at the hearing on the complaint. Nor did an attorney appear on his behalf.

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657 N.W.2d 457, 2003 Iowa Sup. LEXIS 44, 2003 WL 467242, Counsel Stack Legal Research, https://law.counselstack.com/opinion/iowa-supreme-court-board-of-professional-ethics-conduct-v-reese-iowa-2003.