Iowa Supreme Court Attorney Disciplinary Board v. John Edward Netti, Jr.
797 N.W.2d 591
| Iowa | 2011Background
- Netti is licensed in Kentucky (1994) and Iowa (2001); Iowa license was active after a period of inactivity and was suspended in 2008 for failure to pay fees and file reports, remaining suspended.
- Board charged Netti with multiple ethical violations across four clients involving trust accounts, fee handling, hospital liens, conflicts, unauthorized practice, dishonesty, incompetence, and neglect.
- Netti did not respond to board discovery requests; the grievance commission treated his nonresponse as admissions, strengthening the board’s factual assertions.
- In Estate of Zimmerman, Netti settled a wrongful death claim for $132,750, deposited funds into an escrow-like account, then withdrew $44,245 as fees without court-approved authorization, and misrepresented assets in probate proceedings; the estate administrator later obtained a judgment against Netti for the remaining fees.
- In Walker matter, Netti settled for $45,000, deposited into an escrow-like account, withdrew $23,296 as fees, failed to satisfy a hospital lien, failed to provide an accounting, and filed pleadings in a hospital lien action without Walker’s confirmed status as a client; this created a substantial conflict of interest.
- In Mangeno matter, Netti failed to deposit a $750 retainer into a trust account, failed to refund or account for funds, and asserted board lack of jurisdiction when contacted.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Competent representation violated | Netti’s handling in Zimmerman, Walker, Mangeno violated Rule 32:1.1 | Netti contends no explicit deficient performance proven beyond admissions | Violated Rule 32:1.1 |
| Diligence and promptness | Zimmerman and Mangeno matters show lack of diligence | Court should not infer neglect without additional proof | Violated Rule 32:1.3 |
| Communication with clients | Netti failed to keep Matz informed and respond to Mangeno’s requests | No timely defenses asserted by Netti | Violated Rule 32:1.4(a)(3),(4) |
| Trust accounts and handling of client funds | Netti commingled funds, did not deposit into proper trust accounts, and withdrew fees improperly across Zimmerman, Walker, Mangeno | Discovery of funds handling disputed by Netti | Violated Rule 32:1.15 and related Court Rules; multiple trust-account violations |
| Misrepresentation and conflicts; authority to act | Netti misrepresented authority in Walker hospital lien action and filed cross-claims against Walker; misrepresentations to the court in Zimmerman/Walker matters | Some statements lack clear evidence of knowing misrepresentation | Violated Rule 32:3.3(a)(1) and 32:1.7(a)(2) (conflict) to the extent proven; 32:3.3(a)(1) proven in Walker; 32:1.9(c) not proved for Zimmerman case. |
Key Cases Cited
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Keele, 795 N.W.2d 507 (Iowa 2011) (de novo review; convincing preponderance standard; respect for commission)
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Schmidt, 796 N.W.2d 33 (Iowa 2011) (describes standard of proof in attorney discipline cases)
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Moonen, 706 N.W.2d 391 (Iowa 2005) (recognizing admission of matters in discovery requests equals admissions)
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Templeton, 784 N.W.2d 761 (Iowa 2010) (sanctions and deference to commission findings in disciplinary matters)
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Hauser, 782 N.W.2d 147 (Iowa 2010) (suspension reasons and range of sanctions for multiple ethical infractions)