California Bar Journal
OFFICIAL PUBLICATION OF THE STATE BAR OF CALIFORNIA - OCTOBER 1998
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California Bar Journal

The State Bar of California


REGULARS

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Front Page - October 1998
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News
George calls court funding failure 'betrayal'
Court rejects rule to bare secrets
Chief justice, 3 associates seek retention from voters
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You Need to Know
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Opinion
Farewell to an independent bar
The last few gasps of a dues bill
A look toward the future
Getting leaner on our own
Justices and politics don't mix
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Letters to the Editor
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Legal Tech - Deconstructing computer leases
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New Products & Services
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MCLE Self-Study
Amending Irrevocable Trusts
Self-Assessment Test
MCLE Calendar of Events
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Discipline
Ethics Byte - Clients still have right to secrecy
8-year attorney, disciplined 11 times, is finally disbarred
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Service Awards
Neiman receives bar's top honor for helping others
13 attorneys, 2 law firms cited for pro bono efforts
Foundation presents 32 scholarships to California law school students
LA County Bar wins national recognition
With shutdown, bar discipline faces paralysis
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(continued from front page)
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Court had a staff of 52. Together, they consumed 70 percent of the bar's budget--more than $41 million annually.

Now, 20 remain in the prosecutor's office and seven at the bar court, along with eight judges on reduced salaries.

"For bad lawyers," says chief trial counsel Judy Johnson, "it's like allowing cowboys to come to town on a Saturday night, get likkered up, and there's no sheriff. We can't react."

In addition to consumers without recourse, judges who used to refer errant lawyers for discipline are now encouraged by the bar to use their contempt and sanction powers instead. Criminal matters can be referred to local district attorneys.

Other problems

There are other problems as well, some mere inconveniences, but others more serious:

About 1,000 attorneys who are on probation are unsupervised.

Disciplined lawyers who complete probation have to make greater efforts to be reinstated than in previous years.

Unpublished cases, formerly used as a valuable research tool, are no longer available, depriving both prosecutors and defense attorneys of a body of law.

Twenty California counties do not have a fee arbitration program. The bar used to operate the biggest program in the state.

Papers can be filed with the State Bar Court only during two hours each day.

Disbarred attorneys who are eligible for reinstatement basically have no recourse.

Copies of decisions and case summaries are no longer available to reporters, and therefore to the public.

Requests from law enforcement (federal prosecutors, the IRS, district attorneys) for an attorney's discipline record are, for the most part, not being filled.

There is a sizeable backlog of discipline matters decided by the bar court but not forwarded to the Supreme Court for action. Under normal circumstances, such matters were sent to the court in 30 to 40 days; it now takes as long as 75 days.

When deciding which cases to abate at the time of the shutdown, the bar court considered whether the lawyer in question was already on a "not entitled" status. If he or she was for some reason prohibited from practicing, the case was put on hold, even if the charges are serious.

In order to go to trial, the case had to have a trial date already set before the end of 1998 and the charges had to warrant a minimum of one year of actual suspension.

The most worrisome matters to discipline officials are cases like that of Carole Ann Gearhart, a Riverside bankruptcy lawyer against whom the bar had filed 15 cases, incorporating 50 counts of misconduct.

One client lost her home because of Gearhart's actions, the bar alleges, and another was threatened with foreclosure.

Still practicing

Prosecutor Jan Oehrle says a disbarment request was under consideration, but because no trial date was set during 1998, Gearhart's case was abated and she remains eligible to practice law in California.

Under the Business & Professions Code, the State Bar can petition the court to assume the practice of an attorney who is incapable of practicing competently.

Because the bar can no longer afford to do so, it asked the Riverside County Bar to take over Gearhart's 500 to 700 cases.

But according to Riverside bar president Diane Roth, the local bar is not equipped to handle such a massive undertaking, which includes taking physical custody of client files, computers, and other property, contacting every client and making sure each is protected.

"It's our intention to do whatever we can to protect the public and (Gearhart's) clients," Roth says.

"The State Bar really had the machinery set up to go in and take custody of a practice. If we don't have an agency that can come in on a case like this, that's very frightening."

Those who do try to help face a daunting challenge.

"It's like quicksand," says JoAnne Robbins, who represents Gearhart. "You aren't quite sure where to step and where to stop. It's a very fuzzy, very nebulous area."

The district attorney also is investigating Gearhart and Riverside bankruptcy Judge David Naugle has banned her from appearing before him and issued a proposed order that she be prohibited from practicing in any federal court in the central district.

Charles Kavalaris of San Jose also worries discipline officials. Facing possible disbarment, he was charged by the bar with illegal fee-splitting, paying non-lawyers more than $280,000 over six years for case referrals. Trial was set, but his case was abated because he was suspended as a result of an earlier discipline.

That didn't stop Kavalaris from making four appearances in four separate matters last April and May, about the time the bar's complaint hotline shut down.

Kavalaris was ordered to take the personal responsibility exam as a condition of an earlier probation, and he faces a 60-day suspension for violating probation. He has taken the PRE; when he passes he is eligible for practice once he serves the 60-day suspension.

"We know from the track record that not all lawyers can be trusted to honor their professional obligations," says Judy Johnson.

The discipline shutdown "basically allows lawyers to exist in a kind of state of nature in which there's no one to regulate them."

Come on down

Annoyed that lawyers gripe about the expense of the discipline system, Johnson suggests that volunteer efforts would help keep the cost down. She has a long list of volunteer opportunities, including investigation and prosecution, fee arbitration, probation monitors, and assisting with the assumption of practice.

Chief Trial Counsel Judy Johnson"If lawyers are having an Excedrin headache with the State Bar and would prefer to do it themselves, let them," she says.

To that end, the bar board of governors voted in principle last month to allow Johnson to use volunteer attorneys as special prosecutors.

But Johnson cautions that the old, volunteer system was inefficient, the equivalent of a neighborhood watch as opposed to a paid police officer. Its failures resulted in the creation of a professional operation, including a State Bar Court that relieved the Supreme Court of 40 percent of its workload.

"Yes, it was expensive, but it worked fine," she says. "It was an efficient system and now it's a shambles."

The process of assuming jurisdiction over a practice
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Every year, the State Bar used to assume jurisdiction over the practices of about 75 attorneys who are disciplined, become disabled or die. A time-consuming and expensive process, it begins with a petition to the local superior court seeking an order to be appointed as a receiver or trustee responsible for managing the practice.

Once granted, bar employees physically entered the attorney's office, took possession and inventoried all files, and contacted clients, opposing counsel and any courts where matters were pending. They conducted a search for original wills, probate documents and other papers, and the necessary documents were filed with appropriate courts.

If cases were pending, the bar attempted to find a lawyer to make appearances or file motions. If the representation was temporary, the bar helped clients find new lawyers. It also redistributed files to clients.

Files must be maintained for five years, or the court may be petitioned after two years for an order of disposition. If no one could be found to maintain the files, the bar did so.

The appointee or trustee assumes management of the client trust account as well.