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Iowa Supreme Court Board of Professional Ethics & Conduct v. Walters12/22/1999
On review of the report of the Grievance Commission.
Recommendation for suspension of lawyer's license; on review license suspended for three months.
This matter comes before the court from the Grievance Commission of the Iowa Supreme Court. On hearing, the Commission recommended a suspension of N. LeRoy Walters' license to practice law for a period of not less than six months. Our review is de novo as provided by Iowa Supreme Court Rule 118.10. Upon consideration, we now suspend Walters' license to practice law for a period of not less than three months.
I. Commission Findings
The Commission found Walters in violation of several provisions of our Code of Professional Responsibility for Lawyers. They are as follows:
1. DR 5-104(A):
A lawyer shall not enter into a business transaction with a client if they have differing interests therein and if the client expects the lawyer to exercise professional judgment therein for the protection of the client, unless the client has consented after full disclosure.
2. DR 1-102(A)(4):
A lawyer shall not engage in conduct involving dishonesty, fraud, deceit, or misrepresentation.
3. DR 1-102(A)(5) and (6):
A lawyer shall not:
(5) Engage in conduct that is prejudicial to the administration of justice.
(6) Engage in any other conduct that adversely reflects on the fitness to practice law.
The Commission found that the Iowa Supreme Court Board of Professional Ethics and Conduct had failed to prove the following ethical violations involving a conflict of interest. They are:
1. DR 4-101(B)(1) and (2):
Except when permitted under DR 4-101(C), a lawyer shall not knowingly:
(1) Reveal a confidence or secret of a client.
(2) Use a confidence or secret of a client to the disadvantage of the client.
2. DR 5-105(B):
A lawyer shall decline proffered employment if the exercise of independent professional judgment in behalf of a client will be or is likely to be adversely affected by the acceptance of the proffered employment, except to the extent permitted under DR 5-105(D).
3. DR 5-105(C):
A lawyer shall not continue multiple employment if the exercise of independent professional judgment in behalf of a client will be or is likely to be adversely affected by the representation of another client, except to the extent permitted under DR 5-105(D).
II. Background Facts
Respondent Walters practiced law from 1965 until 1989 in Mason City, Iowa. From 1976 to 1989, he represented Lester and Venola Diegel as their attorney. He had a successful law practice and for many years was a partner in a major Mason City law firm.
About 1980, his wife was diagnosed with cancer. Treatment was provided continuously until her death in 1989. Although Walters had some health care insurance, it was inadequate to cover the large medical expenses. By 1989 he was $650,000 in debt. Walters testified that because he was physically and mentally exhausted, he decided to quit the practice of law and move to Minneapolis, seeking a new vocation and new life experience. He sold his home, one of two cars, liquidated his assets, and paid off all but $20,000 of his debts.
In Minneapolis, Walters became a licensed real estate agent. The hope for a successful career in this field, unfortunately, did not materialize. He decided to return to Mason City to resume the practice of law and sold his second car to finance the resumption of his legal career. Faced with minimal income an
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