Court suspends license of retired Iowa City tax attorney 

The Iowa Supreme Court suspended the license of a retired Iowa City tax and estate attorney Friday for violations involving client trust account and fees in two estates, receiving attorney fees without court approval, and making false claims to the court.

Verla Jean Bartley, formerly with Meardon, Sueppel, and Downer before she retired in 2014, cannot practice law for six months, according to the court ruling. Bartley was admitted to the Iowa bar in 1961 and is an advisory member of the Iowa State Bar Foundation. She had no prior disciplinary record.

The suspension stems from her actions in two estate proceedings which were opened in 2001 and 2005, according to the ruling. The 2001 estate remained opened for 12 years and the fees paid for services were never approved by the court, which is required, and the funds were deposited directly into the firm's business account. The funds should have been deposited in a trust account.

According to the ruling, the 2001 estate couldn't be closed until March 14, 2013 because Bartley didn't resolve tax return and creditor claim issues. 

The 2005 estate didn't close for eight years until June 2013, according to the ruling. In November 2012, the court informed Bartley's firm of concerns regarding her conduct in both estates. Bartley then sent a letter to the board and self-reported her neglect on the tax matter in the 2001 estate and her fee collection and handling of tax matters in the 2005 estate.

After being charged by the court's Disciplinary Board, Bartley admitted to the violations, according to the ruling.

In considering sanctions, the court found mitigating factors in her favor such as no prior disciplinary actions during her 53 years of service, no substantial harm was done to the clients, and the clients were supportive of her legal work. Bartley also has devoted service and leadership to the state bar. A lawyer's self-reporting would usually be a mitigating factor but this is lessened in this case because her self-reporting was partly motivated by her knowing the law firm would report the violation if she didn't. And the violations were reported by a partner of the firm rather than by Bartley.

The aggravating factors in this case include Bartley's experience, which should have 'guided her away from the violations,” and multiple violations of disciplinary rules support enhanced sanctions, according to the ruling. Bartley continued to make misrepresentations to the court and her law firm even after notice of her violations and her self-report.

'We also observe that the misrepresentation was not only the most serious unethical conduct engaged in by Bartley, but measured against a career that spanned more than half a century, it appeared to be the most uncharacteristic,” Chief Justice Mark Cady stated. 'Bartley consciously engaged in the misrepresentation to cover up her neglect and, in the process, only elevated the seriousness of her conduct and the degree of sanctions we are responsible to impose.”

The court agreed with the board's recommendation based on the relevant facts and circumstances in the case. Bartley is suspended from practicing law in the state with no possibility of reinstatement for six months.