Good Gamble
The Iowa Supreme Court has provisionally reinstated an attorney whose license was revoked due to misappropriation of entrusted funds.
The court had rejected an earlier effort but then changed its rules regarding reinstatement of revoked attorneys
In May 2015, following a period of public comment, we amended Iowa Court Rule 35.14 to renumber existing provisions within the rule and incorporate new provisions setting forth a procedure by which an individual whose license to practice law has been revoked may apply for its reinstatement. The amendments became effective September 1, 2015. By subsequent amendment shortly thereafter, we moved the provisions addressing reinstatement to Iowa Court Rule 34.25. The purpose of the amendment was to allow an attorney who has rehabilitated him or herself the opportunity to petition the court for reinstatement and prove to the court he or she has good moral character, is fit to practice law, and is in all respects worthy of readmission to the Iowa bar. Reinstatement under the rule is not meant to be automatic.
On the merits
With his application for reinstatement, Reilly submitted an affidavit detailing his personal history, work history, and educational history following his license revocation along with letters from six attorneys currently practicing in the Fourth Judicial District of Iowa recommending his license to practice law be reinstated. See id. r. 34.25(9)(c). In the affidavit, Reilly indicated he received treatment for his compulsive gambling addiction from April 2002 through November 2008. He also indicated he has abstained from casino gambling since February 2002. Reilly also described his work immediately following his license revocation as a litigation consultant offering mediation services to law firms and individual attorneys, as well as his current work providing consulting services on insurance litigation and claims handling involving insurance policies of various types issued to clients throughout the country. Finally, Reilly indicated that although he has not received any formal educational training since we revoked his license, he has maintained his familiarity with current Iowa law by regularly reviewing state and federal appellate court decisions as well as through his employment, which requires him to deal with statutes, rules, and regulations in most states.
The court set forth the factors considered and concludes
In light of the evidence Reilly submitted in support of his application for reinstatement, we conclude he has proved by a convincing preponderance of the evidence that he has good moral character, is fit to practice law, and is in all respects worthy of readmission to the Iowa bar. Though the conduct that led us to revoke Reilly’s license to practice law was egregious, it occurred during a relatively brief period following years of bar membership during which Reilly earned a reputation as a particularly diligent and skilled attorney. We find this notable given that Reilly struggled with his casino gambling addiction for years. Although his addiction does not obviate the seriousness of his improper conduct, the evidence he submitted demonstrating his efforts to overcome it supports his eligibility for reinstatement to the bar. For years before and for years after we revoked his license, Reilly voluntarily underwent treatment for his addiction with a licensed mental health provider and certified compulsive gambling counselor. Furthermore, he has managed to abstain from engaging in the behaviors his treatment provider has advised him to avoid for more than fourteen years. Thus, his treatment provider has concluded he requires no further treatment for his addiction.
As his dedication to his recovery might suggest, Reilly has consistently accepted responsibility for the impropriety of his conduct and acknowledged the harm it caused his clients, the bank that reported him to the federal government, and the bar. The members of the bar who have recommended we reinstate Reilly uniformly attest to his good moral character and fitness for the practice of law and express confidence that he is presently equipped to exercise the responsibility and judgment bar membership requires. Their letters commend Reilly for his outstanding legal ability, his commitment to treating his casino gambling addiction, and his acceptance of responsibility and remorse for the harm he caused. Moreover, they confirm Reilly has held a position of executive responsibility with his current employer for years without incident and maintains a personal and professional support system that includes, among others, many of his former colleagues in the bar.
There are conditions
Upon Reilly’s demonstration that he has satisfied the preconditions of reinstatement set forth in this opinion, we will order the reinstatement of his license to practice law subject to his continued maintenance of a malpractice insurance policy whenever he is engaged in the private practice of law. Within thirty days of the reinstatement of his license to practice law, Reilly shall provide the Iowa Supreme Court Attorney Disciplinary Board with proof that he has obtained a malpractice insurance policy or a report indicating he is not currently engaged in private practice. Upon his subsequent entry into the private practice of law, if applicable, he shall provide the Board with proof that he has obtained malpractice insurance within thirty days.
(Mike Frisch)