Iowa Supreme Court Attorney Disciplinary Board v. Eric Kenyatta Parrish
925 N.W.2d 163
Iowa2019Background
- Client Ware hired attorney Eric Parrish for a custody modification (flat fee $5,000) and agreed to a separate $2,500 flat fee if she appealed; the court reporter billed $2,467.50 for the trial transcript.
- On April 28, 2016 Ware gave Parrish a check for $2,467.50 with "Transcript Fees" on the memo line; Parrish told her to make it payable to him because the bill was directed to him.
- Parrish cashed the check, did not place the money in trust, did not pay the court reporter, and did not notify Ware when the appeal was later dismissed for lack of transcript arrangements.
- The Grievance Commission found Parrish knowingly converted the funds, made false statements to the court about the payment status, and violated multiple Iowa Rules of Professional Conduct; it recommended revocation and reimbursement.
- The Iowa Supreme Court reviewed de novo, found (1) the funds were paid specifically for the transcript, (2) there was no general retainer, (3) Parrish knowingly failed to forward funds and made false statements, and (4) despite prior cases pointing toward revocation for misappropriation, applied a two‑year indefinite suspension (no reinstatement for two years) and ordered reimbursement.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Purpose of $2,467.50 payment | Ware: funds were specifically for transcript fees | Parrish: payment was a $2,500 flat fee/retainer for the appeal (or part of a general retainer) | Court: payment was for transcript fees (memo, texts, timing show specific purpose) |
| Misappropriation/theft of client funds | Board: Parrish converted funds entrusted for a specific purpose; criminal statutes and RPC 32:8.4(b),(c) violated | Parrish: had colorable future/present claim to funds as earned fees (general retainer/flat fee) | Court: conversion of specifically purposed funds violated trust rules; because prior case law left open a future‑claim defense, court treated this as trust/account violations (not theft) but warned future cases will not allow that defense; ordered sanction |
| Scienter (required for theft/misappropriation) | Board: evidence shows Parrish knowingly used funds and misled court and client | Parrish: actions lacked intent to steal; funds were to satisfy fees | Court: scienter proven — Parrish knew purpose and that funds were not earned fees for appeal |
| Appropriate sanction | Board/Commission: severe sanction (revocation) given history, conversion, false statements | Parrish: mitigation (mental health, prior remedial steps) | Court: significant aggravators (prior discipline, misconduct pattern, no remorse); suspended license indefinitely with no reinstatement for two years and required refund of $2,467.50 |
Key Cases Cited
- Iowa Supreme Ct. Att'y Disciplinary Bd. v. Guthrie, 901 N.W.2d 493 (Iowa 2017) (conversion of client funds without colorable claim typically warrants revocation)
- Iowa Supreme Ct. Att'y Disciplinary Bd. v. Carter, 847 N.W.2d 228 (Iowa 2014) (discusses colorable future claim doctrine distinguishing retainers vs. limited‑purpose funds)
- Iowa Supreme Ct. Att'y Disciplinary Bd. v. Morse, 887 N.W.2d 131 (Iowa 2016) (attorney received transcript funds and later applied them to fees; court emphasized that funds given for a specific purpose supersede fee claims)
- Comm. on Prof'l Ethics & Conduct v. Nadler, 445 N.W.2d 358 (Iowa 1989) (attorney cannot satisfy fee claim from funds delivered for a specific purpose)
- Iowa Supreme Ct. Att'y Disciplinary Bd. v. Powell, 830 N.W.2d 355 (Iowa 2013) (trust account violations and consideration of colorable claim defenses in limited circumstances)
- Iowa Supreme Ct. Att'y Disciplinary Bd. v. McCann, 712 N.W.2d 89 (Iowa 2006) (doctrine applied where attorney withdrew fees prematurely; analyses of earned vs. unearned fees)
- Iowa Supreme Ct. Att'y Disciplinary Bd. v. Cepican, 861 N.W.2d 841 (Iowa 2015) (distinguishes sanctions for trust/regulatory violations from theft/misappropriation)