Iowa Supreme Court Attorney Disciplinary Board v. Donald N. Laing and D. Scott Railsback
2013 Iowa Sup. LEXIS 74
| Iowa | 2013Background
- Laing and Railsback provided conservator services to Klein for over three decades.
- Klein’s estate funds were used to compensate the respondents; annual fee requests often combined conservator and legal work.
- The district court repeatedly approved fees without Klein or a guardian ad litem receiving notice.
- Klein objected in 2008; a bench trial found excessive fees and hours, and restitution was ordered.
- The Grievance Commission found multiple ethical violations; the Iowa Supreme Court suspended the licenses for 18 months.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Excessive fees charged for conservatorship services | Laing and Railsback charged excessive hours and rates | Laing and Railsback contended fees were reasonable | Fees were excessive; violations established |
| Misrepresentation of time and fees | Ward’s funds were misrepresented as legitimate fees | Respondents acted in good faith with reasonable estimates | Misrepresentation proven; DR 1–102/32:8.4 violation established |
| Conflict of interest in farm leases | Represented Klein and tenants with no disclosure of conflict | No real conflict or disclosure failures | DR 5–105(C)/32:1.7 violation shown; conflict exists |
| Appropriate sanction for ethical violations | Suspension to be at high end due to serial misconduct | Sanction should be lesser given mitigating factors | Licenses suspended for 18 months; restitution required; costs allocated |
| Notice and due process for annual fee proceedings | Ward not notified; hearings lacking before approvals | Court routinely approved based on integrity of practitioners | Procedural deficiencies found; sanctions reflect misconduct |
Key Cases Cited
- Carty v. Board of Professional Ethics & Conduct, 738 N.W.2d 622 (Iowa 2007) (suspension for excessive probate fee conduct)
- Zimmerman v. Professional Ethics & Conduct, 465 N.W.2d 288 (Iowa 1991) (suspension for excessive fees and duplicative charges)
- Coddington v. Iowa, 360 N.W.2d 823 (Iowa 1985) (suspension for conservator fees paid before court approval)