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Iowa Supreme Court Board of Professional Ethics & Conduct v. Walters12/22/1999
be adversely affected by the representation of another client).
We examined the law regarding conflicts of interest in Rickers v. Marsh & McLennan Group, 459 N.W.2d 478 (Iowa 1990). The general rule is that an attorney should be disqualified from representing a party against a former client if the two representations bear a "substantial relationship" to each other. Rickers, 459 N.W.2d at 481. If such a relationship is found, then the court will assume that the attorney obtained information in the first representation that is relevant to the subsequent litigation. It need not be shown that confidences and secrets were divulged in order for a conflict to exist.
Apart from confidentiality issues, conflict of interest and loyalty concerns are implicated. In Iowa Supreme Court Board of Professional Ethics & Conduct v. Winkel, 599 N.W.2d 456, 458-59 (Iowa 1999), we held a violation of DR 5-105(B) occurred when the lawyer unilaterally withdrew from representing his client in a bankruptcy proceeding and then represented another party who sued his former client in a personal injury action. For a law firm to represent one client today, and the client's adversary tomorrow in a closely related matter, creates an unsavory appearance of a conflict of interest that is difficult to dispel in the eyes of the lay public or even the bench and bar. See Analytica, Inc. v. NPD Research, Inc., 708 F.2d 1263, 1266 (7th Cir. 1983).
Although the Commission thought otherwise, we find that Walters' alternating representation of Rodney and Keri Helps constituted an ethical violation as charged. The Commission gave considerable weight for its conclusion that the district judge did not initially see this matter as serious enough to constitute a violation. Even so, the court warned Walters of the later possibility of a violation. We believe that Walters properly consulted with the court, but given the obviously close relationship between the two cases in which he undertook to represent opposing parties, he should have avoided the potential conflict of interest. His reliance on an inconclusive consultation with the district judge was ill-advised and does not excuse the ethical violation.
D. Failure to Respond to Board Inquiries
Walters failed to respond to Board inquiries regarding alleged ethical violations. Those violations involve DR 1-102(A)(5) and (6). Walters offered no rational explanation for this failure. We find this violation has occurred and is proved. See Iowa Supreme Ct. Bd. of Prof'l Ethics & Conduct v. Sather, 534 N.W.2d 428, 431 (Iowa 1995).
V. Disposition
Our findings of ethical violations result in a suspension of the lawyer's license. We suspend respondent's license to practice law indefinitely with no possibility of reinstatement for a period of three months from the date of this opinion. As a condition for application for reinstatement, Walters shall have paid in full the judgment entered as a result of the loan transaction with the Diegels. Costs of this instant action are assessed against Walters pursuant to Iowa Supreme Court Rule 118.22.
LICENSE SUSPENDED.
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