912 N.W.2d 150
Iowa2018Background
- Sandra E. Suarez-Quilty, Iowa-licensed attorney since 2000, practiced solo in immigration, family, and criminal law; Board charged her with multiple ethics violations based on stipulations she signed.
- Facts included: contacting a represented client (McElroy matter); practicing while administratively suspended after an OWI conviction; extensive trust account and recordkeeping deficiencies revealed by audits.
- Client-specific misconduct: charged $5,000 to a third party’s credit card without authorization (Rawson/Eckert); diverted and retained a $630 filing fee advanced for a USCIS appeal (Keny); improper retention/withdrawal of retainer funds (Ferazz); unauthorized $5,000 charge was reversed by the card issuer after dispute.
- Suarez-Quilty pled guilty to two counts of felony OWI (third offense), was imprisoned and hospitalized, and stipulated to the Board’s factual allegations and many rule violations.
- The Grievance Commission found numerous violations of the Iowa Rules of Professional Conduct and trust-account rules and recommended revocation; the Board sought revocation and Suarez-Quilty requested a 90-day suspension.
- Supreme Court reviewed de novo, focused on misappropriation/conversion findings (Rawson and Keny) and concluded conversion of Keny’s funds warranted revocation.
Issues
| Issue | Plaintiff's Argument (Board) | Defendant's Argument (Suarez-Quilty) | Held |
|---|---|---|---|
| Whether Suarez-Quilty misappropriated client funds (unauthorized credit-card charge and failure to refund filing fee) | She knowingly converted client/third-party funds (unauthorized $5,000 charge; kept $630 filing fee) in violation of Rule 32:8.4(c) | Stipulated facts but sought mitigation (alcohol/mental health, requested limited suspension) | Court found by convincing preponderance she knowingly misappropriated funds (both Rawson and Keny matters); conversion of Keny funds dispositive. |
| Required scienter for 32:8.4(c) | Proof shows knowing, intentional conduct sufficient for theft/ conversion | Claimed treatment/mitigation but did not rebut conversion or establish colorable claim | Court required more than negligence; found scienter satisfied. |
| Whether attorney had a colorable future claim to disputed funds (affects sanction) | No colorable claim to Keny $630; Rawson $5,000 charge arguably disputable but problematic | Argued mitigation and other violations should reduce sanction to suspension | Court held no colorable claim to Keny funds; absence of colorable claim makes revocation appropriate. |
| Appropriate sanction | Revocation given theft/ conversion of client funds without colorable claim | Requested 90-day suspension, cited mitigation | Court revoked license; reinstatement possible only after five years with proof of rehabilitation. |
Key Cases Cited
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Guthrie, 901 N.W.2d 493 (Iowa 2017) (standard of review and burden in disciplinary cases; range of sanctions for misappropriation)
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Thomas, 844 N.W.2d 111 (Iowa 2014) (definition of misappropriation and theft for disciplinary purposes)
- Willey v. Iowa Supreme Ct. Att’y Disciplinary Bd., 889 N.W.2d 647 (Iowa 2017) (stipulations of facts bind parties but court independently reviews rule violations)
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Barry, 908 N.W.2d 217 (Iowa 2018) (scienter requirement for misappropriation—more than negligence)
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Green, 888 N.W.2d 398 (Iowa 2016) (criminal-law defenses generally not determinative in disciplinary proceedings)
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Stowe, 830 N.W.2d 737 (Iowa 2013) (revocation typically appropriate when attorney converts client funds)
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Nelsen, 807 N.W.2d 259 (Iowa 2011) (revocation for conversion of client funds)
- Iowa Supreme Ct. Bd. of Prof’l Ethics & Conduct v. Williams, 675 N.W.2d 530 (Iowa 2004) (revocation for fictitious billing/financial misconduct)
- Iowa Supreme Ct. Bd. of Prof’l Ethics & Conduct v. Lett, 674 N.W.2d 139 (Iowa 2004) (revocation for stealing client funds)
- Iowa Supreme Ct. Bd. of Prof’l Ethics & Conduct v. Bell, 650 N.W.2d 648 (Iowa 2002) (revocation for misappropriation of funds)
- Iowa Supreme Ct. Bd. of Prof’l Ethics & Conduct v. Leon, 602 N.W.2d 336 (Iowa 1999) (revocation for misappropriation)
- Comm. on Prof’l Ethics & Conduct v. Ottesen, 525 N.W.2d 865 (Iowa 1994) (revocation for converting client funds)
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Weiland, 885 N.W.2d 198 (Iowa 2016) (effect of lawyer’s conduct to mislead vs. to inform in assessing scienter)