IOWA SUPREME COURT DISCIPLINARY BOARD, Appellee, v. ATTORNEY DOE NO. 819, Appellant

894 N.W.2d 1, 2016 WL 8900093
CourtSupreme Court of Iowa
DecidedOctober 28, 2016
Docket16–0652
StatusPublished
Cited by6 cases

This text of 894 N.W.2d 1 (IOWA SUPREME COURT DISCIPLINARY BOARD, Appellee, v. ATTORNEY DOE NO. 819, Appellant) 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 DISCIPLINARY BOARD, Appellee, v. ATTORNEY DOE NO. 819, Appellant, 894 N.W.2d 1, 2016 WL 8900093 (iowa 2016).

Opinion

APPEL, Justice.

In this case, a former client of Attorney Doe’s filed a complaint against Doe with the Iowa Supreme Court Attorney Disciplinary Board (Board). The complaint alleged various ethical violations in connection with a variety of investments the client made at Doe’s suggestion when Doe represented the client. Doe responded with a lengthy letter denying the allegations. After investigating the matter, the Board filed charges alleging a number of ethical violations arising from transactions involving the former client.

After the filing of formal charges, Doe’s counsel and the attorneys for the Board engaged in communications regarding the complaint. The Grievance Commission of the Supreme Court of Iowa (commission) entered a scheduling order in the matter. Doe, however, did not file an answer to the complaint or file a written motion for an extension of time to file the answer. According to Doe’s counsel, his client could not respond because he was prevented from doing so due to health issues and because the FBI had seized certain documents related to the allegations in the complaint.

The Board filed a motion with the commission to extend the deadlines. After a hearing, the commission found that Doe had not filed an answer to the complaint and had not filed a timely written motion for extension of time to file the answer. The commission cited Iowa Court Rule 36.7 (2015), which provides that if a respondent does not answer the complaint or file a written application for extension of time to answer within twenty days, the allegations in the complaint are “considered admitted.” The Board’s motion to extend deadlines was granted, but the commission’s order limited the issues at trial to the question of sanctions. The commission denied Doe’s motion to reconsider.

We granted Doe’s application for interlocutory review of the commission’s order. For the reasons expressed below, we reverse the order of the commission and remand the case for further proceedings.

I. Factual and Procedural Background.

On February 18, 2013, the Board received a complaint from a former client of Doe. In general, the complaint alleged that from 2004 to 2006, Doe induced the former client to make various loans and investments without disclosing conflicts of interest. These undisclosed conflicts, the complaint alleged, arose from Doe representing the other party or Doe being in *3 terested in the transaction. The former client claimed losses from the various investments.

On May 8, Doe responded to the complaint by providing the Board with a thirty-eight-page letter, together with substantial documentation. Doe provided supplemental materials upon the Board’s request throughout 2013 and 2014.

The Board filed its complaint against Doe on September 30, 2015. An attorney for Doe accepted service of the complaint. The complaint alleged violations of Iowa Code of Professional Responsibility for Lawyers DR-102(A) (misconduct), DR 2-106(A) (fees for legal services), DR 5-101(A) (conflict of interest), DR 5-104(A) (business relations with client), and DR 5-105(C) and (D) (concurrent adverse clients). The complaint also alleged violations of Iowa Rules of Professional Conduct 32:1.4(a) and (b) (communications), 32:1.7(a) and (b) (conflict of interest), .and 32:1.8(a) (conflict of interest).

On January 22, 2016, the Board filed a motion to modify the commission’s previous scheduling order and to establish new deadlines. In the motion, the Board asked the commission to set deadlines for filing an answer and serving discovery responses.

Doe’s counsel filed a response on January 28. Doe’s counsel stated that Doe had been “unable to respond to the very complex Complaint and provide discovery responses.” Doe’s counsel reported that Doe had undergone “biopsies, CT and MRI scans, numerous blood tests and ... surgeries.” Doe’s counsel stated that a March 29, 2016 hearing date was “currently unrealistic in light of [Doe’s] medical condition.”

On February 3, the Board responded to Doe’s claims by asking the commission to order Doe to (1) “file a statement from a treating physician that discloses his diagnosis, treatment plan, anticipated recovery period, and prognosis”; (2) “file a statement, under oath, describing whether, and to what extent, [Doe] had been practicing law from October 15 to now or whether he has temporarily closed his law practice”; and (3) “file a statement, under oath, describing whether, and to what extent, [Doe’s] ill health limited his personal activities.” On February 9, the commission ordered Doe to file the statements requested by the Board by February 17.

In response to the commission’s order, Doe filed three documents. Two of the documents were letters from physicians. The first physician’s letter reported that Doe had prostate cancer, a prostatectomy was planned, after the. surgery there should be a six-week period of “no strenuous activity,” and the prognosis was excellent. The second physician’s letter reported Doe’s suffered from chronic vascular headaches that have been resistant to treatment, a treatment plan of further testing and-medication, and an “uncertain prognosis.”

The third document was Doe’s affidavit describing his condition. Doe stated his health problems began about February 2015. Doe stated that after a fall and head injury he experienced continuing headaches and one episode of paralysis. Doe opined that in June or July 2015, he began to experience tinnitus. Doe stated that prostate surgery was scheduled.

Doe stated that since the summer of 2015 he generally arrives at the office between 9:30 and 11:00 a.m. He hired a young lawyer to assist him in his legal practice. Doe stated he is “able to meet with clients, ascertain what they need or want, give some direction to the young attorney, and briefly review her work product.” He also stated he could do the “planning” for franchise documents. From *4 October to the present, Doe reported he averaged less than twelve hours of billable time per week.

With respect to the complaint, Doe stated that he was physically and emotionally unable to deal with the complaint over the past four months. Although he vehemently denied the allegations, Doe asked for “sufficient time to address these serious allegations at a time [he is] able to do so with a clear head.” Doe stated, “I would hope to have my life back to some degree of normalcy soon and then address this Complaint appropriately.”

The Doe affidavit also touched briefly upon the status of an FBI investigation related to the transactions involved in the complaint. According to Doe, the FBI has had possession of approximately eighteen boxes of records since August 2013.

The commission held an unrecorded hearing on February 18, 2016. On February' 22, the commission issuéd the order that gives rise to the present dispute. In the order, the commissiort; on its own motion, invoked Iowa Court Rule 36.7. The commission found that Doe had failed to timely file an answer or a written request for an extension of time to file an answer, and as a result, the allegations in the Board’s complaint were considered admitted.

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894 N.W.2d 1, 2016 WL 8900093, Counsel Stack Legal Research, https://law.counselstack.com/opinion/iowa-supreme-court-disciplinary-board-appellee-v-attorney-doe-no-819-iowa-2016.