California Supreme Court Demands Revised Conflict of Interest Code Amid Post-Girardi Challenges

The California Supreme Court has instructed the state bar to revise its proposed amendments to the conflicts of interest code for board trustees. The court has expressed that the proposed changes do not meet the statutory requirements for disclosure and prevention.

The court’s directive to alter these amendments is the most recent development in the fallout from the Thomas Girardi case, where the now disbarred attorney was found to have abused his relationships with bar executives and board members over several decades to evade disciplinary action.

The court ordered the amendments in this court-initiated proposal.

The revised proposal, however, did not comply with the state law that necessitates ensuring “reasonable assurance” that it would compel or prevent disclosure of all foreseeable potential conflicts.

This underscores the ongoing challenges that legal professionals face in maintaining robust, comprehensive, and legal conflict of interest codes, particularly in a post-Girardi climate. More than ever, it emphasises the critical need for transparency, accountability and legality in dealings across all layers of our legal processes.