The California state legislature recently passed a bill mandating lawyers to report to the state bar if they suspect their colleagues of engaging in serious criminal activities, such as treason. With Senate Bill 40 (SB 40) having obtained the consent of both the California State Senate and the State Assembly, the bill’s fate lies in the hands of Governor Gavin Newsom, who will decide to either sign or veto it.
SB 40 introduces stricter measures for reporting professional misbehavior, especially when such activities potentially harm clients and cast doubts on a lawyer’s credibility, competence, or ethical proficiency. The bill stipulates that attorneys who know of colleagues’ severe misconduct that puts clients’ welfare at risk, or casts significant doubts on the lawyer’s dependability and professional capacity must alert the state bar. The bill also mandates attorneys to notify the state bar of any colleague engaged in treason, sedition, or insurrection against the State of California or the United States.
In addition, the California Supreme Court approved a new rule in the California Rules of Professional Conduct in June, compelling lawyers in the state to report colleagues who participate in criminal acts, fraud, misappropriation of assets, or dishonest behavior.
To curb possible misuse of the reporting provision, the bill clarifies that lodging a complaint with the state bar to intimidate, harass, or deter another attorney from practicing law is professional misconduct. This provision aims to prevent the abuse of the reporting mechanism for personal vendettas or to hinder legal practice.
In light of SB 40, California is at a critical juncture in reinforcing ethical standards in its legal profession. Two high-profile attorney misconduct incidents involving, John Eastman and Tom Girardi, underscore the need for robust checks and transparency within the profession.
John Eastman has been at the center of controversies due to his association with the Trump campaign during the 2020 presidential elections. His legal advice and contribution to contest the election results have drawn wide scrutiny. His notable role in the events leading to the January 6th incident at the US Capitol is under investigation. Eastman is currently facing disbarment proceedings due to his involvement in efforts to overturn the 2020 election results.
Meanwhile, Tom Girardi, a prominent California lawyer now disbarred, faces legal trouble over charges of misappropriating $3 million in settlement funds intended for the families affected by the 2018 Lion Air Flight 610 crash. Girardi’s case has attracted significant attention, as 130 ethics complaints were lodged against him with the state bar from 1982 until January 2021. Girardi, along with two of his associates, is currently facing federal criminal charges for purportedly siphoning off the funds.