937 N.W.2d 309
Iowa2020Background:
- T.J. Hier, an Iowa lawyer licensed in 1997 with multiple prior disciplinary actions (several public reprimands and a 2012 suspension, including a December 2017 reprimand for trust-account violations), represented Amanda Rothfus in family-law proceedings against Edwin Van Dorn.
- At a deposition settlement recited on the record, Van Dorn delivered a $750 check payable to Hier’s client trust account (CTA) as part of the agreement; Hier deposited the check into her firm general account instead of the CTA.
- The settlement later unraveled; the district court ordered Hier to transfer the $750 to her CTA pending resolution, but she never did and did not inform the court she had failed to comply.
- Hier later returned $375 from her firm account; the court eventually awarded Rothfus $1,000 in attorney fees and credited the retained $375 toward that award.
- Van Dorn complained to the Board; the Grievance Commission found Hier violated Iowa R. Prof’l Conduct 32:1.15(a), (e), (f) and Iowa Ct. R. 45.1 and recommended a public reprimand.
- The Iowa Supreme Court agreed on the rule violations but, given Hier’s prior discipline and the circumstances, imposed a 30-day suspension of her law license.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Hier violated trust-account separation (Iowa R. Prof’l Conduct 32:1.15(a) and Iowa Ct. R. 45.1 / 32:1.15(f)) | Board: $750 was third-party/client funds for settlement and must be held in CTA; depositing into firm account violated rules | Hier: thought fee was earned; did not remember instructing deposit to CTA; judge allegedly said he would not order return | Court: Violations proven — funds should have stayed in CTA; ruled Hier violated 32:1.15(a), 32:1.15(f), and Ct. R. 45.1 |
| Whether Hier mishandled disputed funds (32:1.15(e)) | Board: Van Dorn had a valid claim when settlement failed; disputed funds must be held in CTA | Hier: asserted Van Dorn had no valid claim and funds were hers | Court: Violation proven — disputed portion required placement in CTA pending resolution; Hier violated 32:1.15(e) |
| Whether Hier failed to promptly deliver funds / account (32:1.15(d) and Ct. R. 45.2(2)) | Board: Hier failed to promptly return the $750 or account for it | Hier: returned $375 and argued remaining dispute justified retention until resolution | Court: Not proven — Board failed to meet burden on prompt-delivery/accounting claim |
| Whether Hier knowingly made false statements to the tribunal (32:3.3(a)(1)) | Board: Hier told judge she would place funds in CTA but did not, showing intent to deceive | Hier: lacked intent to deceive; judge and credibility evidence support good faith; memory problems explained conduct | Court: Not proven — no convincing evidence of intent to deceive; violation not established |
| Appropriate sanction | Board: suspension sought | Hier: private admonition | Court: 30-day suspension (misconduct proven + significant prior discipline warranted suspension) |
Key Cases Cited
- In re Marriage of Udelhofen, 538 N.W.2d 308 (Iowa Ct. App. 1995) (stipulations in family cases become final only when accepted/approved by the court)
- In re Marriage of Jones, 653 N.W.2d 589 (Iowa 2002) (court—not stipulation—controls parties’ rights; stipulation not binding until court approval)
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Rhinehart, 827 N.W.2d 169 (Iowa 2013) (suspension for trust-account violations; reputation and competence may mitigate)
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Morse, 887 N.W.2d 131 (Iowa 2016) (30-day suspension for keeping disputed client funds; attorney experience is aggravating)
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Lubinus, 869 N.W.2d 546 (Iowa 2015) (30-day suspension for systematic trust-account misuse)
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Boles, 808 N.W.2d 431 (Iowa 2012) (30-day suspension for multiple trust-account violations and failure to return unearned fees)
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Parrish, 925 N.W.2d 163 (Iowa 2019) (lengthier suspension for recurring trust-account breaches; prior admonitions aggravate sanctions)