Pay The Client, Not Dish Network

Noting that it has consistently ordered license revocation in matters involving conversion of settlement proceeds in contingent fee litigation, the Iowa Supreme Court imposed that sanction on an attorney admitted in 2002.

In summary, [client] Street did not receive her portion of the settlement until nine months after [attorney] Thomas received the settlement check. During the nine months, Thomas’s trust account balance dropped below what he owed to Street. Thomas also admitted he withdrew money from the client trust account to pay for Dish Network at his office and for his home mortgage. The lowest balance for the client trust account was in June 2011 at $236.55.

In January 2012, Street received a check from the client trust account for $10,304.24. This check overdrew Thomas’s client trust account. Thomas wrote a check to the client trust account from his personal account to correct the overdraft. Neither Street nor her parents received a written summary showing the settlement distribution.

Thomas closed his client trust account in October 2012 and did not open a new client trust account. Thomas admitted he still had possession of $3350 that either belonged to State Farm or to Street.

On May 6, 2013, Thomas represented himself before a division of the grievance commission. Thomas admitted that at the time he handled Street’s funds he was unfamiliar with client trust account rules. He also admitted he wrote checks for his own benefit that exceeded his colorable claim to funds from Street’s settlement.

These rules regarding entrusted funds are worth being familiar with if one wishes to maintain a law license. (Mike Frisch)