Attorneys Acting as Conservators Suspended for Charging Ward for Non-Legal Services

Iowa's highest court suspends the licenses of two attorneys who acted as conservator for a ward for more than 30 years because the attorneys charged the ward for non-legal services. Iowa Supreme Court Disciplinary Board v. Laing (Iowa, No. 13-0152, June 14, 2013).

In 1974, attorney Donald Laing was appointed conservator for John Klein, a Vietnam War veteran with a history of paranoid schizophrenia, depression, and substance abuse. D. Scott Railsback joined Mr. Laing's firm in 1975 and assisted him with Mr. Klein. Each year, Mr. Laing and Mr. Railsback submitted annual reports to the court. The attorneys requested compensation for many services that did not require legal expertise, such as bringing Mr. Klein to the doctor, taking him shopping, attending his birthday parties, and accompanying him on outings. The amount the attorneys charged for the services gradually increased from $42 per hour to $125 per hour.

In 2008, Mr. Klein objected to the annual report and asked that Mr. Laing be removed as his conservator. A trial court found Mr. Laing and Mr. Railsback had charged excessive fees for their services, overbilling Mr. Klein by $175,000. The Iowa attorney disciplinary board filed a complaint alleging Mr. Laing and Mr. Railsback violated rules of professional conduct and recommended that the attorneys be suspended for three years.

The Iowa Supreme Court rules that Mr. Laing and Mr. Railsback violated professional rules of misconduct regarding excessive fees, among others, and suspends them for 18 months. According to the court, the attorneys "sincerely attempted to make Klein’s life better when no family member stepped forward to help. They clearly went wrong, however, in repeatedly over-reaching in their applications for fees for services to a vulnerable ward who was disabled and kept uninformed of the amounts they were charging for their services."

According to an Associated Press article, both lawyers have retired.

For the full text of this decision, go to: https://www.iowacourts.gov/Supreme_Court/Recent_Opinions/20130614/13-0152.pdf.

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