ZAGER, Justice.
A plaintiff brought claims against her former attorney for legal malpractice, assault and battery, and punitive damages. At the close of the plaintiff's case, the district court granted the defendant's motion for directed verdict on two legal malpractice claims: one regarding the preparation of a will and the other for breach of fiduciary duty. The district court submitted to the jury two claims of alleged legal malpractice: representation of the plaintiff in her divorce and representation of the plaintiff in pursuing a claim for assault against her former spouse. The jury returned verdicts for the defendant on the two submitted legal malpractice claims and returned verdicts for the plaintiff on the assault and battery claim and on the punitive damages claim. The jury awarded the plaintiff combined damages of $498,562.44. The plaintiff appeals the district court's order granting the motion for directed verdict on the two additional claims of legal malpractice. The plaintiff also appeals various evidentiary rulings made by the district court. The defendant cross-appeals on the issue of damages. For the reasons discussed below, we affirm the district court. While we find that the defendant's cross-appeal was untimely, we reject on the merits the defendant's challenge to the amount of the jury award.
In September 2008, Melissa Stender met with attorney Anthony Zane Blessum for legal assistance in a divorce proceeding against her then-husband, Phillip Stender.
In February 2009, Blessum drafted a proposed divorce decree and sent it to both Stender and Phillip. On March 4, Blessum sent a second proposed divorce decree that included changes that Blessum had not discussed with Stender. Stender was unaware that Blessum had made changes in the second proposed divorce decree and believed the changes unfairly favored Phillip. When Phillip received the second proposed decree, he went to the couple's home and physically and sexually assaulted Stender.
On March 25, Stender signed the second proposed decree upon the advice of Blessum. Stender testified at trial that she was a homemaker for most of her marriage to Phillip. She testified she was unaware of the amount in Phillip's retirement accounts, the state of the household finances, or the amount of alimony to which she might be entitled. She signed the decree based on Blessum's advice that the contents of the decree represented everything she was entitled to receive in the divorce. The final divorce decree awarded Stender $110,000 from Phillip's retirement account, half of the home furnishings, and $400 per
Approximately two years later, in mid-March 2011, Blessum called Stender. Blessum informed Stender that Phillip had called to ask if he would receive the entire balance of his retirement account if "something happened" to Stender. Stender was afraid of Phillip after the assault and asked Blessum if he believed Phillip's call was threatening. Blessum told her that was exactly how he took the call. Stender became concerned about how her assets would be divided among her three children if she were to pass away and asked Blessum if she needed a will. Blessum responded in the affirmative.
Stender met with Blessum on March 22 to discuss drafting a will. Stender told Blessum that she wanted all of her estate assets divided equally between her three children. Based on Blessum's advice, Stender believed that Phillip would get all of her assets after her death if she did not draft a will. This was inaccurate because, even if Stender had died intestate, Stender's probate assets would have been equally divided between her three children.
After the meeting, Blessum called Stender and asked if she wanted to meet and catch up. She agreed, and they met at a local restaurant. During this meeting, Blessum told Stender he was unhappy in his marriage. At the end of the evening, Blessum kissed Stender. After Stender got in her car but before she left the parking lot, Blessum sent her a text message asking if they could meet again. Over the next two weeks, Blessum and Stender continued to meet and talk about intimate topics such as Stender's childhood trauma and her marital and sexual abuse. Within two or three weeks, they began a sexual relationship.
While this sexual relationship continued, Blessum performed several other legal services for Stender. On June 28, Stender executed the will that Blessum had prepared. On August 9, Blessum sent a demand letter to Phillip. In the letter, Blessum demanded that Phillip agree to three changes in the divorce decree in exchange for Stender's refraining from filing a civil suit against him for the physical and sexual assault Phillip committed against her in 2009. Blessum was aware the assaults occurred in 2009, and either knew or should have known the statute of limitations had run by the time he sent the letter to Phillip.
Stender became anxious from the confrontation and the grease burn. Blessum went outside to retrieve Stender's purse from her vehicle that contained her anxiety medication. When Blessum came back inside with Stender's purse, she told him she was done with the relationship and bent down to get the pills out of her purse. While Stender was bent over, but before she could take the pills, Blessum began hitting her arm, forearm, head, and neck. After Blessum hit her, Stender grabbed some of the pills that had spilled on the floor and swallowed them. Stender tried to run out of the house, but Blessum caught her and dragged her back inside. Blessum threw her into the corner and started calling her a "subservient slave." He pulled her through the living room onto the couch and threatened to sexually assault her. Blessum told Stender if she thought the "other men have hurt [her], ... just wait and see what [he] do[es] to [her]." He told her he was going to make her vomit her pills so she would remember the entire assault.
Blessum went to the kitchen to get a glass of water to force Stender to vomit. After he left the room, Stender grabbed Blessum's home phone and called 911. She was unaware whether the call went through but left it under a pile of papers when she heard Blessum returning to the living room. The call connected and the remainder of the assault was recorded. Police were dispatched to Blessum's house. Before the police responded, Blessum pinned Stender to the couch and strangled her. He then poured water down her throat and put his fingers in her mouth in an attempt to make her vomit. Stender kept screaming in hopes that the call had connected to the 911 operator. Blessum again pinned Stender with his knees and bound her arms over her head. He began to forcefully remove her jeans. Blessum had removed her jeans past her hips when the police knocked on the door. Stender began screaming for help. The police arrested Blessum at the scene. The police also called an ambulance, and Stender was transported to the hospital for medical treatment.
Later in June, Blessum began sending letters to Stender. In the letters, he acknowledged that he had dated other women at the same time as Stender and that he gave her a sexually transmitted disease. The letters also acknowledged the assault and included an apology for all of his misdeeds. Stender also received anonymous items in the mail during this time. On September 19, Stender filed a petition for relief from domestic abuse against Blessum. The district court granted a temporary restraining order that same date. On October 29, the district court entered a protective order by consent agreement between the parties.
Stender obtained new counsel in October and her new counsel began requesting Stender's client files from Blessum. Blessum delivered the client files in January 2013, but the documents related to the preparation of Stender's will were missing.
On December 4, Stender filed this civil action against Blessum. She alleged claims of domestic assault, battery, false imprisonment, negligent transmission of sexually transmitted diseases, outrageous conduct and intentional infliction of emotional distress, legal malpractice, and breach of fiduciary duty.
On March 27, 2015, we suspended Blessum's license to practice law for eighteen months. Iowa Supreme Ct. Att'y Disciplinary Bd. v. Blessum, 861 N.W.2d 575, 595 (Iowa 2015). We found he violated three of our Iowa Rules of Professional Conduct. Id. at 577. Blessum violated rule 32:1.8(j) (sexual relationship with a client), rule 32:8.4(b) (criminal act adversely reflecting on a lawyer's fitness to practice law), and rule 32:1.15(c) (trust account practices). Id. at 588-91.
On June 25, Stender voluntarily dismissed two claims in her civil lawsuit: the claim for false imprisonment and the claim for negligent transmission of sexually transmitted diseases. Trial was set to commence on July 6.
On July 2, Stender's counsel posted a Facebook message expressing her dissatisfaction with the outcome of Blessum's attorney disciplinary case. The Facebook post also stated "I hope a jury will be a little harder on him!" Blessum moved for a continuance of the trial, which the district court granted, noting that the timing of the post was "disturbing and suspicious." The trial was rescheduled for November 2. On October 29, Stender voluntarily dismissed her claims for outrageous conduct and intentional infliction of emotional distress.
Jury trial commenced on November 2, and Stender concluded her presentment of evidence on November 10. Blessum moved for a directed verdict on all of the legal malpractice claims and on the breach-of-fiduciary-duty claim. The district court granted a directed verdict on the legal malpractice claim regarding the preparation of the will and on the breach-of-fiduciary-duty claim. The district court concluded that, with regard to the drafting of the will, there was no evidence that the will contained any defect or that its preparation otherwise fell below the standard of care for attorneys. The district court also granted a directed verdict on the claim for breach of fiduciary duty. The district court concluded that there was not a "single piece of evidence that the plaintiff suffered emotional damage from just being in a relationship." The district court denied the motion for directed verdict on two additional claims of legal malpractice.
On November 13, the Friday before closing arguments were set to commence, the Des Moines Register published an online opinion article comparing the jury trial to the disciplinary case and noting that "hopefully the jury will do something more." On Sunday, November 15, the article was published in the print version of the newspaper.
On November 16, the jury heard closing arguments. The district court submitted four claims for the jury to consider: (1) legal malpractice in Blessum's representation of Stender in her divorce, (2) legal
On November 18, one of the jurors contacted the district court judge to convey that he had a hard time sleeping the night the jury reached its verdicts, and he felt as though justice had not been served. Specifically, the juror believed five of the six jurors did not agree with the amount of damages that were ultimately awarded to Stender. The juror also believed that the Des Moines Register article played a role in the jury deliberations because he claimed a number of jurors had read the article prior to deliberating. Because of the juror's concerns, the district court set a hearing on the matter for November 23.
On November 25, before the district court issued its ruling, Stender filed a notice of appeal, thus depriving the district court of jurisdiction to hear any posttrial matters, including the issues raised by the juror. In her appeal, Stender claims that the district court erred in granting the directed verdicts. Blessum cross-appealed for a new trial on the issue of damages awarded for the assault and battery and punitive damages claims. We retained the appeal.
We review a ruling on a motion for a directed verdict for correction of errors at law. Hook v. Trevino, 839 N.W.2d 434, 439 (Iowa 2013). "We review the evidence in the light most favorable to the nonmoving party...." Dorshkind v. Oak Park Place of Dubuque II, L.L.C., 835 N.W.2d 293, 300 (Iowa 2013). In doing so, we take into consideration all reasonable inferences the jury could fairly make, regardless of whether there is any evidence in contradiction. Id. Ultimately, we decide whether the district court's determination that there was or was not sufficient evidence to submit the issue to the jury was correct. Id.
We review evidentiary rulings for an abuse of discretion. Giza v. BNSF Ry., 843 N.W.2d 713, 718 (Iowa 2014). A district court abuses its discretion when it bases its decisions on grounds or reasons clearly untenable or to an extent that is clearly unreasonable. Sioux Pharm, Inc. v. Eagle Labs., Inc., 865 N.W.2d 528, 535 (Iowa 2015). A district court also abuses its discretion if it bases its conclusions on an erroneous application of the law. Id.
When we review claims for excessive damages, "we view the evidence in the light most favorable to the plaintiff." Kuta v. Newberg, 600 N.W.2d 280, 284 (Iowa 1999). We should not "disturb a jury verdict for damages unless it is `flagrantly excessive or inadequate, so out of reason so as to shock the conscience, the result of passion or prejudice, or lacking in evidentiary support.'" Id. (quoting Olson v. Prosoco, Inc., 522 N.W.2d 284, 292 (Iowa 1994)). We apply an abuse of discretion standard because the trial court had the advantage of seeing and hearing the evidence. Id.
Stender claims the district court erred in granting the motions for directed verdict
1. Iowa background. We have decided a number of cases involving our ethical rules and claims of legal malpractice. While we have generally allowed violations to be used as evidence of negligence, we have been careful to caution that evidence of negligence is not the same as conclusive proof of negligence. See Ruden v. Jenk, 543 N.W.2d 605, 611 (Iowa 1996); see also Vossoughi v. Polaschek, 859 N.W.2d 643, 649-50 (Iowa 2015); Faber v. Herman, 731 N.W.2d 1, 7 (Iowa 2007).
To establish a prima facie claim for legal malpractice, a plaintiff must produce substantial evidence demonstrating: (1) an attorney-client relationship existed giving rise to a duty; (2) the attorney violated or breached the duty, either by an overt act or a failure to act; (3) the breach of duty proximately caused injury to the client; and (4) the client did sustain an actual injury, loss, or damage. Trobaugh v. Sondag, 668 N.W.2d 577, 580 n.1 (Iowa 2003).
In Ruden, we held that the plaintiff could use a violation of the Iowa Code of Professional Responsibility for Lawyers as evidence of negligence, but ultimately held that the attorney's acts or omissions were not sufficient to demonstrate proximate cause of any damages as a matter of law. Id. at 611-12. We also cautioned that while a violation may constitute "some evidence of negligence," our ethical rules "do[] not undertake to define standards of civil liability." Id. at 611 (emphasis added). In Crookham v. Riley, we again noted that a violation of our disciplinary rules is "some evidence of negligence." 584 N.W.2d 258, 266 (Iowa 1998). We noted that expert testimony on the standard of care due to a client is normally required for a legal malpractice claim. Id.
Additionally, the language of the Iowa Rules of Professional Conduct expressly addresses this issue. This language provides,
Iowa R. Prof'l Conduct ch. 32 Scope [20]. This is similar to the scope contained in the ABA Model Rules of Professional Conduct. The model rules provide that a "[v]iolation of a [r]ule should not itself give rise to a cause of action against a lawyer nor should it create any presumption in such a case that a legal duty has been breached." Model Rules Prof'l Conduct Scope [20] (Am. Bar Ass'n 2014). The model rules also provide that the rules were not designed to be used as a basis for civil liability. Id. The rules may instead be used as evidence of a breach of the standard of conduct. Id.
2. Approach of other states. There are three approaches courts use to determine whether a violation of an ethical rule may be used to establish a per se private cause of action for legal malpractice. First, one jurisdiction allows the violation of an ethical rule to create a rebuttable presumption of negligence. Hart v. Comerica Bank, 957 F.Supp. 958, 981 (E.D. Mich. 1997) (noting that violations of the ethical rules "create a rebuttable presumption of legal malpractice, although they do not constitute negligence per se").
We likewise choose to adopt the majority approach and hold that a violation of one of our Iowa Rules of Professional Conduct cannot be used to establish a per se claim for legal malpractice. A violation may, however, be used as some evidence of negligence as provided in our prior caselaw. See, e.g., Crookham, 584 N.W.2d at 266. But before a violation of our rules of professional conduct can be used — even as some evidence of negligence — there must be an underlying actionable claim against the attorney arising out of how the attorney mishandled a legal matter. To find differently would mean that a violation of the rules themselves provides plaintiffs with an independent cause of action. This result is one that both our rules and our cases have specifically rejected. Id. ("Violation of the disciplinary rules constitutes some evidence of negligence. In a legal malpractice action, expert testimony upon the standard of care is usually required." (Citation omitted.)); Ruden, 543 N.W.2d at 611 ("Although the Iowa Code of Professional Responsibility for Lawyers does not undertake to define standards of civil liability, it constitutes some evidence of negligence."); Iowa R. Prof'l Conduct ch. 32 Preamble & Scope [20] ("Violation of a rule should not itself give rise to a cause of action against a lawyer nor should it create any presumption in such a case that a legal duty has been breached.").
Here, Blessum's sexual relationship in violation of our rules of professional conduct does not by itself give rise to a legal malpractice claim. In order to succeed on her claim for legal malpractice, Stender would need to demonstrate a duty that was violated and not just the sexual relationship alone. See, e.g., Ruden, 543 N.W.2d at 610. Stender did not introduce evidence of
To establish a claim for legal malpractice, a plaintiff must produce substantial evidence demonstrating (1) an attorney-client relationship existed giving rise to a duty; (2) the attorney violated or breached the duty, either by an overt act or a failure to act; (3) the breach of duty proximately caused injury to the client; and (4) the client did sustain an actual injury, loss, or damage. Sabin v. Ackerman, 846 N.W.2d 835, 839 (Iowa 2014); Trobaugh, 668 N.W.2d at 580. Legal malpractice exists when the attorney fails "to use such skill, prudence and diligence as lawyers of ordinary skill and capacity commonly possess and exercise in the performance of tasks which they undertake." Millwright v. Romer, 322 N.W.2d 30, 32 (Iowa 1982) (quoting Neel v. Magana, Olney, Levy, Cathcart & Gelfand, 6 Cal.3d 176, 98 Cal.Rptr. 837, 491 P.2d 421 422-23 (1971)); see also Ruden, 543 N.W.2d at 610-11.
In a claim for legal malpractice, "unless the plaintiff's claim is based on standards of care and professionalism understood and expected by laypersons, the plaintiff will have to retain an expert to go forward."
The question of whether the drafting of a will fell outside the ordinary skill, prudence, or diligence expected of a similarly situated, ordinary attorney is a technical legal question that requires the use of an expert witness. The technicalities of drafting a will and the question of negligence and causation are not in the realm of topics normally understood or expected of laypersons. Stender did not introduce any expert witness testimony on the issue of whether Blessum committed legal malpractice in the drafting of her will.
Likewise, Stender does not argue that the will prepared by Blessum was defective. The lawyer's duty in a legal malpractice case is "to use `such skill, prudence and diligence as lawyers of ordinary skill and capacity commonly possess and exercise' in performing the task which he undertakes." Ruden, 543 N.W.2d at 610-11 (quoting Millwright, 322 N.W.2d at 32). A claim for legal malpractice is necessarily grounded in the allegation that the legal services provided by an attorney were negligently performed. In order to establish a prima facie claim of legal malpractice, Stender was required to produce evidence showing what the duty was and how the attorney breached this duty. Then, even if Stender did produce evidence that such a duty was breached, the attorney's breach must have caused "actual injury, loss, or damage." Vossoughi, 859 N.W.2d at 649 (quoting Ruden, 543 N.W.2d at 610). An attorney's act or omission that breached the duty must cause injury to Stender's interest by way of loss or damage. Id. Stender failed to introduce any evidence, separate from the sexual relationship, of a breach of any duty owed to her. Finally, there was no evidence of any actual injury, loss, or damage claimed by Stender separate from the damages resulting from the assault. We affirm the decision of the district court granting the motion for directed verdict as to this claim of legal malpractice.
The issue on appeal in this case is one of first impression for us: whether the sexual relationship between Stender and Blessum, by itself, gives rise to an independent cause of action for breach of fiduciary duty. Stender argues that it does, as she and Blessum were in a sexual relationship while they were also in a fiduciary, attorney-client relationship. At the outset, we recognize that the creation of an attorney-client relationship does impose on attorneys certain fiduciary duties. See Kurth v. Van Horn, 380 N.W.2d 693, 696 (Iowa 1986) ("Some relationships necessarily give rise to a fiduciary relationship... [and] would include those between an attorney and client...."). The creation of an attorney-client relationship does not, however, impose upon the attorney fiduciary duties that extend on indefinitely or into aspects of an attorney's personal life outside the scope of the attorney-client relationship. Wagner v. Wagner, 242 Iowa 480, 45 N.W.2d 508, 509 (1951) ("[A] person in a fiduciary relationship to another is under a
A number of other courts have directly considered this issue. These courts have concluded that a sexual relationship between an attorney and a client, when it had no impact on the legal services provided, does not give rise to a claim for breach of fiduciary duty. The leading case on the issue is Kling v. Landry, 292 Ill.App.3d 329, 226 Ill.Dec. 684, 686 N.E.2d 33 (1997). The attorney, Landry, represented a client, Kling, in two separate legal matters. Id., 226 Ill.Dec. 684, 686 N.E.2d at 35. Kling claimed that Landry coerced her into a sexual relationship during the course of the representation. Id. Kling alleged that, while Landry was representing her in a dissolution of marriage action, he came to her home to prepare for trial. Id., 226 Ill.Dec. 684, 686 N.E.2d at 36. While at her home, Landry threw her on the bed and began to initiate sexual intercourse. Id. Kling alleges she submitted to the sexual intercourse because she was afraid Landry would not continue to represent her if she refused. Id. After the final judgment for dissolution of marriage was entered, Landry represented Kling again in a modification of the decree. Id. Again, Landry visited Kling's home to prepare for trial and initiated sexual intercourse. Id. Thereafter, Kling terminated Landry's representation and alleged that the petition for modification was frivolous. Id.
Kling filed a four-count petition. Id. Pertinently, Kling claimed Landry breached his fiduciary duty to her by improperly using his position as her attorney to coerce her into sexual intercourse. Id. Landry filed a motion to dismiss the claim for breach of fiduciary duty, which the district court granted. Id., 226 Ill.Dec. 684, 686 N.E.2d 33 at 36-37.
The court began its analysis by noting that the attorney-client fiduciary relationship exists as a matter of law. Id. 226 Ill.Dec. 684, 686 N.E.2d 33 at 39. It reviewed a number of Illinois cases regarding the breach of fiduciary duty and concluded,
Id. 226 Ill.Dec. 684, 686 N.E.2d 33 at 39-40. However, the court also noted that "sexual intercourse between two consenting adults is not, of itself, actionable conduct." Id. 226 Ill.Dec. 684, 686 N.E.2d 33 at 40.
Overwhelmingly, courts have followed the Kling approach and held a sexual relationship alone cannot be the basis for a breach of fiduciary duty or legal malpractice claim, absent some link between the sexual relationship and a wrong committed in the scope of the legal representation. See, e.g., Cecala v. Newman, 532 F.Supp.2d 1118, 1135 (D. Ariz. 2007) (holding that a plaintiff client who enters into a consensual sexual relationship with an attorney without any independently inappropriate conduct on the part of the lawyer, cannot recover in an action unless the plaintiff's legal position was negatively affected by the relationship); Tante v. Herring, 264 Ga. 694, 453 S.E.2d 686, 695 (1994) (finding there was no evidence that the sexual relationship between the lawyer and client had any effect on the lawyer's
A New York court upheld a trial court's order dismissing a plaintiff's claim of breach of fiduciary duty based solely on a sexual relationship. Guiles, 826 N.Y.S.2d at 486. In that case, the plaintiff had retained an attorney for assistance in a dissolution of marriage case, and the attorney pursued her romantically. Id. at 485. The attorney was later terminated from his job and referred to the state's committee on professional standards because of the sexual relationship. Id. In her pleadings, the plaintiff did not allege that the attorney was negligent in his legal services, but rather that the relationship alone served as a basis for her breach-of-fiduciary-duty claim. Id. The court found that while the sexual relationship was a violation of a disciplinary rule, the violation "does not, without more, generate a cause of action." Id. at 486 (quoting Schwartz, 753 N.Y.S.2d at 487). Further, the sexual relationship alone was not enough to demonstrate success on the three elements required for a legal malpractice claim — that there was negligence in the attorney's legal representation, that said negligence was the proximate cause of the plaintiff's loss, and that the plaintiff suffered actual and ascertainable damages. Id.
Similarly, an Illinois appellate court found that the existence of a sexual relationship, without the client alleging a breach that is clearly linked to a deficit in the attorney's actual legal representation, is insufficient to sustain a claim for breach of a fiduciary duty. Suppressed v. Suppressed, 206 Ill.App.3d 918, 151 Ill.Dec. 830, 565 N.E.2d 101, 105 (1990). In that case, a former client did not allege that an actual conflict of interest existed or that she was harmed in the legal action by the sexual relationship. Id. The court found that either "tangible evidence that the attorney actually made his professional services contingent upon the sexual involvement or that his legal representation of the client was, in fact, adversely affected" was required to sustain a claim for breach of a fiduciary duty. Id.
The above approach is supported by the Restatement (Third) of the Law Governing Lawyers, which requires a causal nexus between the alleged breach and the scope of a lawyer's professional representation. See Restatement (Third) of the Law Governing Lawyers § 49, at 348 (Am. Law Inst. 2000). The general duties a lawyer owes to a client that are within the scope of representation are to
Id. § 16, at 146. The approach of the Restatement is that "a lawyer is civilly liable to a client if the lawyer breaches a fiduciary duty to the client set forth in § 16(3) and if that failure is a legal cause of injury." Id. § 49, at 348 (emphasis added). The Restatement limits the fiduciary duties a lawyer owes a client to those
Id. § 49 cmt. b, at 348.
Likewise, the Mallen treatise recognizes that there must be a causal relationship between the sexual relationship and the breach of a fiduciary relationship. 2 Ronald E. Mallen, Legal Malpractice § 16:7, Westlaw (database updated Jan. 2017). While a client can bring a claim for breach of fiduciary duty because of a sexual relationship, the client must demonstrate that the relationship adversely affected the legal representation and caused the lawyer to breach a fiduciary obligation, such as that of loyalty or confidentiality. Id.
Id. (emphasis added). Because of the requirement of a causal nexus, "[l]egal malpractice claims have predominantly been precluded as a cause of action for conduct surrounding sexual relationships, unless the relationship adversely affected the legal representation." Id.
Stender did not present sufficient evidence on any nexus between the sexual relationship and a breach of Blessum's fiduciary duties to her. Stender did not allege any deficiencies in the legal representation itself, nor did she link the sexual relationship to a deficiency in legal representation. Standing alone, the sexual relationship here was insufficient to sustain a claim for breach of fiduciary duty. We agree with the district court decision granting a directed verdict to Blessum on the claim of breach of fiduciary duty.
Finally, it is important to note that the district court did, in fact, recognize and instruct the jury on two alleged claims of legal malpractice presented by Stender where sufficient evidence was presented. While the claims were ultimately rejected by the jury, it demonstrates that the district court differentiated between the asserted claims of legal malpractice and breach of fiduciary duty when Stender argued that the sole basis of the claim was the sexual relationship. We find no error in the district court rulings granting the motions for directed verdict.
Stender also appeals numerous rulings by the district court with respect to the scope of testimony and the admission of other testimony and evidence. We address each of these claims in turn.
Our test on the admissibility of expert testimony is liberal. Ranes v. Adams Labs., Inc., 778 N.W.2d 677, 685 (Iowa 2010). The party seeking to introduce expert testimony carries the burden of demonstrating that the proposed expert is qualified and will present reliable opinion testimony. Quad City Bank & Trust v. Jim Kircher & Assocs., P.C., 804 N.W.2d 83, 92 (Iowa 2011). We require two areas of inquiry to be met before expert testimony is admitted. Ranes, 778 N.W.2d at 685. First, the expert testimony must "assist the trier of fact" in either understanding the evidence or determining a fact at issue in the case. Id. (quoting Iowa R. Evid. 5.702). This preliminary question requires that the district court consider whether the proposed evidence is relevant. Id. Second, the expert witness must be properly qualified "by knowledge, skill, experience, training, or education." Id. (quoting Iowa R. Evid. 5.702).
Based on the analysis set forth above regarding the claims for legal malpractice and breach of fiduciary duty based solely on the sexual relationship, we affirm the district court's decision not to allow Brandes's expanded testimony. Brandes was allowed to testify as to the standard of care, the breach of the standard of care, and offer expert testimony as to the claimed damages in Blessum's representation of Stender during her divorce and Blessum's representation of Stender in her potential claim for assault or battery against Phillip. Any expert testimony about the Iowa Rules of Professional Conduct prohibiting sexual relationships between attorneys and clients, and whether a client could consent to a sexual relationship, were not relevant to determine the remaining legal malpractice claims. Expert testimony on those issues would not assist the jury in determining a fact at issue in the case. We find that the district court did not abuse its discretion by not permitting the expanded expert testimony of Brandes as it was irrelevant to any issue the jury was properly instructed to consider.
However, the district court did allow statements made by Blessum during the course of the disciplinary proceedings if they were introduced by Stender and were relevant to her claims. To the extent Stender needed to reveal the statements were made in the course of the disciplinary proceedings in order to introduce these relevant statements, such statements were allowed.
We agree with the decision of the district court that the evidence that Blessum was charged with and found guilty of ethical violations, in addition to the underlying documents and our ethics opinion, was not relevant to the claims Stender presented to the jury. See Iowa R. Evid. 5.402. Stender was allowed to present two legal malpractice claims to the jury: that Blessum committed legal malpractice in his representation of her in the divorce, and that Blessum committed legal malpractice in his representation of her in a potential civil action against Phillip. It is important to contrast these claims with the issues involved in the disciplinary case.
The disciplinary case dealt with the delay in filing the QDRO, the attorney-client sexual relationship, trust account issues, and Blessum's underlying criminal conviction for assault as adversely reflecting on his fitness to practice law. Blessum, 861 N.W.2d at 585-590. These alleged ethical rule violations
Our ethics opinion did not discuss the asset distribution of the divorce. With respect to the dissolution action, we only considered whether the length of time it took Blessum to file the QDRO violated rule 32:1.3. Id. at 586. We concluded that Blessum did not violate this rule. Id.
The jury instruction for the second malpractice claim based on Stender's potential case for assault and battery against Phillip required her to prove:
Again, our ethics opinion did not address Stender's potential claim against Phillip for the physical and sexual assault. See id. at 585-91.
The record also discloses that the evidence Stender now complains was erroneously excluded by the district court was never offered into evidence. We affirm the decision of the district court and find the district court did not abuse its discretion
The district court precluded Blessum from relitigating (1) the factual basis he gave for his guilty plea in the criminal case, (2) that he had a sexual relationship with Stender during the time he drafted her will, and (3) that an attorney-client relationship existed at the time he began a sexual relationship with Stender. The district court did not preclude Blessum from litigating the following:
The district court did not preclude numbers one through seven because they were not necessary and essential to the judgment in the ethics case. It did not preclude numbers six, nine and ten because they were not included in the fact findings made by this court in the ethics opinion.
In Blessum's disciplinary case, there were three ethical violations found: (1) sexual relations with a client under rule 32:1.8(j), (2) criminal act adversely reflecting on a lawyer's fitness to practice law under rule 32:8.4(b), and (3) a trust account violation under rule 32:1.15(c). Blessum, 861 N.W.2d at 585-91. We did not find a violation under rule 32:1.3, the rule requiring reasonable diligence and promptness, for Blessum's eighteen months delay in filing the QDRO. Id. at 585-86.
Collateral estoppel, or issue preclusion, prevents parties in a prior action from relitigating issues raised and resolved in a previous action. Comes v. Microsoft Corp., 709 N.W.2d 114, 117-18 (Iowa 2006). The doctrine can be used in an offensive or defensive manner. Id. at 118. An offensive use of the doctrine is when
Id. (quoting Hunter v. City of Des Moines, 300 N.W.2d 121, 123 (Iowa 1981)).
This case involves the offensive use of issue preclusion. Issue preclusion may be invoked if four prerequisites are met:
Id. (quoting Hunter, 300 N.W.2d at 123). Offensive use of issue preclusion requires two additional considerations:
Winger v. CM Holdings, L.L.C., 881 N.W.2d 433, 451 (Iowa 2016) (quoting Emp'rs Mut. Cas. Co. v. Van Haaften, 815 N.W.2d 17, 22 (Iowa 2012)). "Although offensive use of issue preclusion is allowed in Iowa[,] ... it is more restrictively and cautiously applied than defensive issue preclusion." Id. (alteration in original) (quoting Gardner v. Hartford Ins. Accident & Indemn. Co., 659 N.W.2d 198, 203 (Iowa 2003)). "The ultimate final judgment need not be on the specific issue to be given preclusive effect." Iowa Supreme Ct. Att'y Disciplinary Bd. v. Stowers, 823 N.W.2d 1, 8 (Iowa 2012). However, it must be "firm and considered" or "resolved." Id.; see also Iowa Supreme Ct. Att'y Disciplinary Bd. v. Rhinehart, 827 N.W.2d 169, 179 (Iowa 2013).
The Restatement (Second) of the Law on Judgments lays out a balancing test for determining which issues are precluded by a former judgment:
Restatement (Second) of the Law on Judgments § 27 cmt. c, at 252 (Am. Law Inst. (1982)).
The first factor that must be met is that the issues are identical. Comes, 709 N.W.2d at 118. In Blessum's disciplinary case, we found that he violated three rules: a sexual relationship with a client in violation of rule 32:1.8(j), a criminal act that adversely reflected his fitness to practice law in violation of rule 32:8.4(b), and mishandling a trust account in violation of rule 32:1.15(c). Blessum, 861 N.W.2d at 588-91. In this action, the claims Stender submitted to the jury were two legal malpractice claims for Blessum's representation of her in her divorce and her potential claim against her ex-husband, assault and battery by Blessum, and punitive damages. The only similar claims are the commission
Similarly, the remaining nine issues were neither "material and relevant to the disposition" nor "necessary and essential to the resulting judgment." Comes, 709 N.W.2d at 118. In Blessum's disciplinary case, the facts necessary to establish a violation of rule 32:1.8(j) were that a sexual relationship existed and that it existed during Blessum's representation of Stender. Blessum, 861 N.W.2d at 587-88. To find a violation of rule 32:8.4(b), the facts necessary were that Blessum committed a criminal act and that said criminal act reflected adversely on his honesty, trustworthiness, or fitness as a lawyer. Id. at 588. The nine issues Stender sought to preclude Blessum from relitigating were secondary to the facts necessary to establish the rule violations in his disciplinary case.
We agree with the decision of the district court that those nine issues were not precluded. We find no abuse of discretion.
The Iowa Code provides a patient-litigant exception to the statutory patient-physician privilege. Iowa Code § 622.10(2). It states,
Id. If this exception applies, the information to which it applies is no longer protected as privileged. Id.; see also Fagen v. Grand View Univ., 861 N.W.2d 825, 836 (Iowa 2015). The purpose of this exception does not frustrate the underlying purpose
However, the statute does not waive the patient's privilege to all of their mental health records. Id. There are two competing interests the court must weigh when considering whether to admit medical records: the patient's right to privacy in his or her own mental health records, and the defendant's right to present a full and fair defense to the plaintiff's claims. Id. Because of this balancing, one of the circumstances in which a patient may waive the right to privacy of mental health records is when the patient makes the "condition ... an element or factor of the claim or defense." Id. at 833 (quoting Iowa Code § 622.10(2)).
Stender's claims voluntarily raised her medical condition in the litigation. For example, in her original petition, Stender raised a claim for intentional infliction of emotional distress. Although she later dismissed this claim, the jury was instructed on the following elements of damage on her claims: past medical expenses, past physical and mental pain and suffering, past loss of use of the full mind and body, future medical expenses, future physical and mental pain and suffering, and future loss of use of the full mind and body. Each of the elements of damage is based on issues involving Stender's medical conditions, both mental and physical. The jury was also instructed on her claim for punitive damages in connection with the assault and battery. Clearly, the entire spectrum of Stender's medical conditions was relevant to the jury in its consideration of the award of damages and punitive damages in this case.
We agree with the decision of the district court that Stender's medical records were related to her claims and were properly submitted to the jury for its consideration. The district court redacted portions of the records that were not relevant or admissible before admitting them to the jury during deliberations. While Stender claims the records were not redacted enough and some of them should not have been given to the jury at all, the district court properly weighed Stender's right to privacy in her medical records with Blessum's right to present a full and fair defense to her claims involving her medical conditions. We find no abuse of discretion by the district court.
Stender testified that Blessum and his wife separated in August or September 2011. She also testified that during the course of their relationship, Blessum and his wife attempted to reconcile, but Blessum told her the attempts failed. Stender testified that she would "let Zane and Jan try to work it out" and that she "never wanted to discourage them from being together" because she "thought it would be good if they would get back together." It was only after Stender testified to these matters that Blessum requested Jan Blessum testify to contradict this testimony.
Jan testified that Stender's version of events was in contrast to her own experience. The testimony was offered to rebut Stender's testimony that she encouraged Blessum to get back together with Jan. Jan testified that she felt the sexual relationship
Jan also testified that she believed Stender broke into her home on February 14, 2012. Jan testified she and Blessum were attempting to reconcile again around that time. Because their engagement anniversary was February 13, Blessum came to her home and left flowers and a Valentine's Day card. The next day when Jan returned home, she found a card from Blessum to Stender torn up on the counter next to her own card with a sign that read "fuck you" next to it.
Jan testified her housekeeper found Stender in Jan's house in June 2012. Jan was supposed to go to a concert with Blessum that week, but chose not to attend after Stender was found in her house. While Blessum was at the concert, Stender sent Jan text messages stating that Stender was in the shower with Blessum and that Jan did not know how to sexually please her husband and needed Stender to show her. Jan also testified that Stender would send her daughter Facebook messages. Jan testified that she attempted to obtain a restraining order against Stender because of the emails and text messages, but was unsuccessful.
Stender argues that Jan's testimony was unduly prejudicial because it painted Stender in a negative light to the jury. The district court allowed the testimony because Jan was able to directly address Stender's testimony and because it was relevant to Stender's claims for punitive damages.
"The court may exclude evidence if its probative value is substantially outweighed by a danger of ... unfair prejudice...." Iowa R. Evid. 5.403. Evidence is relevant if "it has any tendency to make a fact more or less probable than it would be without the evidence." Iowa R. Evid. 5.401; see also Mercer v. Pittway Corp., 616 N.W.2d 602, 612 (Iowa 2000). "Unfair prejudice arises when the evidence prompts the jury to make a decision on an improper basis." Mercer, 616 N.W.2d at 612 (quoting Waits v. United Fire & Cas. Co., 572 N.W.2d 565, 569 (Iowa 1997)). However, not all erroneously admitted evidence requires reversal. Id. "Although a presumption of prejudice arises when the district court has received irrelevant evidence over a proper objection, the presumption is not sufficient to require reversal if the record shows a lack of prejudice." Id. (quoting McClure v. Walgreen Co., 613 N.W.2d 225, 235 (Iowa 2000)).
Jan's testimony was relevant because it directly addressed Stender's own contentions about the nature of her relationship with Blessum. It was also relevant to the jury in its determination of damages and punitive damages. While Jan's testimony certainly painted Stender in a negative light, the record demonstrates a lack of prejudice. The jury returned a substantial verdict that included $100,000 in punitive damages. There was no abuse of discretion by the district court in allowing the testimony of Jan Blessum to rebut the testimony of Stender.
Blessum filed a cross-appeal arguing for a new trial on the issue of damages relating to the claim for assault and battery and the claim for punitive damages. He claims he was unable to make a motion for a new trial or a motion for judgment notwithstanding the verdict at the district
A notice for appeal from a final order or judgment must be filed within thirty days after the final order or judgment. Iowa R. App. P. 6.101(b). A motion for a new trial or a motion for judgment notwithstanding the verdict must be filed within fifteen days after the verdict. Iowa R. Civ. P. 1.1007. We can remand a pending appeal to the district court, but the litigant is required to file a motion for remand — in this case to file a motion for a new trial — "as soon as the grounds for the motion become apparent." Iowa R. App. P. 6.1004.
Here, Stender filed her notice of appeal on November 25, 2015. Blessum did not file a motion for remand until June 30, 2016, more than seven months after he was aware of the notice of appeal. Blessum then filed his brief, which contained his argument on cross-appeal for a new trial. We find that Blessum's motion and cross-appeal were both untimely.
In any event, we reject on the merits Blessum's challenge to the amount of the jury award. "[T]he amount of an award is primarily a jury question, and courts should not interfere with an award when it is within a reasonable range of the evidence." Smith v. Iowa State Univ., 851 N.W.2d 1, 31 (Iowa 2014) (alteration in original) (quoting Jasper v. H. Nizam, Inc., 764 N.W.2d 751, 772 (Iowa 2009)). The jury's assessment of damages "should be disturbed only for the most compelling reasons." Rees v. O'Malley, 461 N.W.2d 833, 839 (Iowa 1990) (quoting Olsen v. Drahos, 229 N.W.2d 741, 742 (Iowa 1975)). "[W]e view the evidence in the light most favorable to the verdict...." Id. (quoting Olsen, 229 N.W.2d at 742). The award of actual damages and punitive damages in this case did not exceed the range permitted by the evidence.
For the foregoing reasons, we affirm the judgment of the district court as well as each of the evidentiary rulings of the district court. We conclude that Blessum's motion for a new trial on the issue of damages, and the cross-appeal, were untimely. However, even if we consider Blessum's challenge to the award of damages and punitive damages on the merits, we find no error.
All justices concur except Hecht, Wiggins, and Appel, JJ., who dissent.
HECHT, Justice (dissenting).
Because I believe the district court erred in directing a verdict on two of Melissa Stender's theories of liability, I respectfully dissent.
As the majority has correctly observed, we review the evidence in the light most favorable to a party resisting a motion for directed verdict. See Dettmann v. Kruckenberg, 613 N.W.2d 238, 250-51 (Iowa 2000). We review the district court's ruling to determine whether Stender presented substantial evidence on each element of her claims. See Gibson v. ITT Hartford Ins., 621 N.W.2d 388, 391 (Iowa 2001). "Evidence is substantial if a jury could reasonably infer a fact from the evidence." Balmer v. Hawkeye Steel, 604 N.W.2d 639, 641 (Iowa 2000). Applying these principles, I conclude the district court erred in failing to submit to the jury Stender's claim that Anthony Zane Blessum was negligent in his representation of her in connection with the will. For reasons explained below, I also conclude Blessum's fiduciary-duty theory should have been submitted to the jury.
The majority affirms the directed verdict on Stender's claim that Blessum was negligent in engaging in a sexual relationship with her while representing her in connection with a will on two grounds. First, my colleagues in the majority conclude Blessum owed no actionable duty to avoid a sexual relationship with Stender while representing her. Second, they conclude the negligence claim was properly withheld from the jury because Stender offered "no evidence of any actual injury, loss, or damage ... separate from the damages resulting from the assault."
Comment 17 to rule 32:1.8(j) explains the rationale for prohibiting sexual relationships between lawyers and their clients and provides additional context:
(Emphases added.) Thus, to protect clients from exploitation, lawyer's professional judgment, and confidences and evidentiary privileges accordant to the fiduciary relationship, the rule prohibits most sexual relationships between lawyers and clients, regardless of actual prejudice or consent.
A lawyer's duty to avoid sexual relationships with clients arises because such relationships create obvious and inherent risks of financial and emotional injuries to clients.
The majority acknowledges Blessum breached an ethical duty under rule 32:1.8(j) by engaging in the sexual relationship with Stender but concludes the breach was of no legal consequence in this case. Perceiving no connection between the sexual relationship and a breach of some other professional duty owed by Blessum to Stender (e.g., negligence in preparing a defective will), the majority affirms the directed verdict. Applying the principles that limit our standard of review in this case, I come to a different conclusion.
I find substantial evidence in the record tending to establish a sufficient nexus between the sexual relationship and the legal services provided by Blessum. Stender presented evidence supporting a finding that Blessum reinitiated the lawyer-client relationship by wrongfully advising her that she needed a will to assure her property would be inherited by her children. She also offered expert testimony suggesting Blessum's legal advice on this point was inaccurate because her property would pass to her children even if she died intestate. During trial, Stender repeatedly pressed her theory of the required nexus between the lawyer-client relationship and Blessum's sexual misconduct: Blessum gave the inaccurate legal advice as a pretext for reestablishing the lawyer-client relationship in furtherance of an improper personal relationship. When I view the record, as I must, in the light most favorable to Stender, I find she presented sufficient evidence to engender a fact question on her claim of a nexus between Blessum's conduct in reestablishing the lawyer-client relationship for the purported purpose of drawing an unnecessary will and the ensuing improper sexual relationship. This nexus is analogous to the one supporting a civil action against an attorney who provides legal services on the condition that the client engage in sexual activity. See Suppressed v. Suppressed, 206 Ill.App.3d 918, 151 Ill.Dec. 830, 565 N.E.2d 101, 105 (1990) (acknowledging rule that breach of lawyer's duty prohibiting sexual relationship is actionable if professional services are contingent upon the client's participation in a sexual relationship).
I would reject the majority's no-duty rule under the circumstances of this case for other important reasons. First, rule 32:1.8(j) establishes a clear standard of conduct for lawyers. The majority correctly notes that the scope to our rules of
Second, I would hew closely to the principle that no-duty rules should be reserved for "exceptional cases, when an articulated countervailing principle or policy warrants denying or limiting liability in a particular class of cases." Restatement (Third) of Torts: Liab. for Physical & Emotional Harm § 7(b), at 77 (Am. Law Inst. 2010). I can conceive of no principle or policy justifying a no-duty rule for lawyers engaging in sexual relationships with their clients, especially in cases like this where evidence tends to show the lawyer knew of the client's particular vulnerabilities.
In my view, policy considerations point decisively in favor of the recognition of a duty in this case. The risks of client injury attending such relationships are deemed sufficiently grave to justify severe sanctions under our rules regulating professional conduct. See, e.g., Marzen, 779 N.W.2d at 769 (suspending attorney's license for at least six months); Iowa Supreme Ct. Bd. of Prof'l Ethics & Conduct v. Furlong, 625 N.W.2d 711, 714 (Iowa 2001) (suspending license for at least eighteen months); Hill, 540 N.W.2d at 45 (suspending license for at least twelve months). Yet despite disciplinary sanctions imposed by this court against attorneys engaging in improper conduct of this type, the prohibited relationships persist, suggesting such sanctions do not adequately deter the wrongful conduct. A civil damage remedy is justified — indeed, required, in my view — by a policy favoring protection of confidential, fiduciary, and privileged lawyer-client relationships and a policy of deterrence against sexual misconduct that is destructive of such relationships. The majority's no-duty rule undermines these important policies, especially in this case where Stender advanced a plausible nexus between Blessum's purpose for reestablishing the lawyer-client relationship and his improper sexual conduct.
Again viewing the record in the light most favorable to Stender, I credit the substantial evidence tending to establish that even before Stender was severely beaten by Blessum, the relationship between the parties was tumultuous and marked by great emotional turmoil. A reasonable jury could find on this record that Stender was exquisitely vulnerable to emotional injury because she had an unfortunate preexisting history of sexual abuse and posttraumatic stress — a history of which Blessum was aware when he commenced the sexual relationship. I find substantial evidence in the record tending to prove Blessum expressly used his knowledge of that history in asserting power over Stender during the assault and that Stender suffered substantial emotional distress as a consequence of the sexual relationship before and after the severe beating. Accordingly, under the applicable standards of review, I believe the district court erred in concluding Stender failed to engender a jury question on damages arising from Blessum's breach of duty.
The majority affirms the directed verdict on Stender's breach of duty claim on the ground that "a sexual relationship alone cannot be the basis for a breach of fiduciary duty or legal malpractice claim, absent some link between the sexual relationship and a wrong committed in the scope of the legal representation." The rationale offered for a no-duty rule in this context is that "sexual intercourse between two consenting adults is not, of itself, actionable conduct." Kling v. Landry, 292 Ill.App.3d 329, 226 Ill.Dec. 684, 686 N.E.2d 33, 40 (1997). But consent is an odd justification for the majority's adoption of the rule because we have previously concluded — consistent with comment 17 to rule 32:1.8(j) — that a lawyer's duty to avoid a sexual relationship with a client is not vitiated by the client's consent. Marzen, 779 N.W.2d at 760.
As the majority has noted, a lawyer owes a client a fiduciary duty precluding the lawyer's employment of powers arising from the lawyer-client relationship in a manner adverse to the client's interest. See Restatement (Third) of the Law Governing Lawyers § 49 cmt. b, at 348 (Am. Law Inst. 2000). A reasonable juror could credit Stender's testimony that Blessum threatened Stender during the beating, as he attempted to coerce her into having sex, by saying that if she thought the "other men have hurt [her], ... just wait and see what [he] do[es] to [her]." Blessum learned this information during the course of the lawyer-client relationship. His threat thus constitutes substantial evidence that Blessum employed — to Stender's disadvantage — information about her past that she revealed to him during the course of the confidential lawyer-client relationship, thus breaching his fiduciary duty.
Viewing the evidence and reasonable inferences in the light most favorable to Stender, I also conclude reasonable inferences from the evidence tend to support
Because a reasonable juror could find that Blessum used information he acquired within the scope of the lawyer-client relationship to Stender's disadvantage during the assault and that Blessum dishonestly reinitiated the lawyer-client relationship as a pretext for beginning a sexual relationship, the theory of liability based on a breach of a fiduciary duty should have been submitted to the jury.
For the reasons I have expressed, I find merit in Stender's appeal. I would reverse the directed verdict on both the negligence and fiduciary-duty issues and remand for a new trial.
Wiggins and Appel, JJ., join this dissent.