821 N.W.2d 415
Iowa2012Background
- Sara Kersenbrock, Iowa attorney, faced disciplinary action based on an audit of her trust accounting and recordkeeping.
- Brinkmeyer’s audit found she failed to deposit retainers into a client trust account and lacked regular reconciliations and client balances.
- Anderson testified retainers were often deposited into Kersenbrock’s operating account or paid in cash; some cash retainers were kept on hand or spent.
- In the Schoonover probate matter, Kersenbrock collected the full second-half probate fee before the final report was filed.
- The Grievance Commission recommended a public reprimand; this court conducted de novo review and suspended the license for 30 days.
- The Board alleged violations of multiple rules of professional conduct related to trust accounting, records, fees, and misrepresentation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Trust account deposits violated 32:1.15(c)? | Board: Stanek and Harding retainers not deposited; funds mismanaged. | Kersenbrock: fees earned; deposits unnecessary. | Violation proven for Stanek and Harding matters. |
| Adequacy of trust records violated 32:1.15(a)/(f) and 45.2(2)? | Board: records nearly non-existent; unable to reconcile accounts. | Kersenbrock: improving procedures; earlier deficiencies only. | Violation proven; recordkeeping deficient. |
| Premature probate fee violated 32:1.5(a)? | Board: second-half probate fee collected before final report. | Kersenbrock: fee advanced with a colorable claim; final report soon after. | Violation proven. |
| Misrepresentation via annual trust accounting certs 32:8.4(c)? | Board: certifications falsely stated reconciliations and proper trust handling. | Kersenbrock: reconciliations performed in daily practice; no official record. | Misrepresentation proven; false certification found. |
Key Cases Cited
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Netti, 797 N.W.2d 591 (Iowa 2011) (trust accounting and recordkeeping standards; proof by convincing preponderance)
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Casey, 761 N.W.2d 53 (Iowa 2009) (premature collection of probate fees; improper fee practices)
- Iowa Supreme Ct. Bd. of Prof’l Ethics & Conduct v. Gottschalk, 553 N.W.2d 322 (Iowa 1996) (impossibility of reconciling trust accounts supports noncompliance finding)
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Wengert, 790 N.W.2d 94 (Iowa 2010) (false certification of trust accounting constitutes misrepresentation)
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Adams, 623 N.W.2d 815 (Iowa 2001) (aggregate considerations of sanctions and aggravating/mitigating factors)