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Iowa Supreme Court Board of Professional Ethics and Conduct v. Reese2/26/2003
Grievance Commission reports respondent has committed ethical violations and recommends revocation of respondent's license to practice law. LICENSE REVOKED.
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 . . . .").
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 Prof'l 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 Hardenbrook 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 o
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