Attorneys

The law expands protections and remedies for people reporting attorney misconduct while adding safeguards against financial arrangements that can compromise clients’ legal decisions. It also makes discipline mandatory for attorneys convicted of certain capping or running offenses.

What the law does ​

• Bars law firms, attorneys, and their agents from retaliating against people who in good faith report suspected attorney-law violations or professional misconduct.
• Allows successful retaliation claimants to seek restoration of status, backpay, damages, attorney’s fees, and court orders, and voids waivers of these protections.
• Requires separate written contracts for attorney loans or financial assistance to clients, with financing terms, charges, conflicts, and written advice about independent counsel or financial advice.
• Prohibits interest, hidden fees, coercive loan terms, and using client loans to control legal strategy, settlement, representation, or the client’s claim.
• Makes loan-rule violations subject to State Bar discipline, restitution or contract remedies, injunctions, and civil penalties of $15,000 per offense.
• Requires summary disbarment after specified felony capping or running convictions, or knowing, for-profit misdemeanor convictions, and adds a $25,000 civil penalty for each capping or running violation.

Who it affects ​

• Attorneys, law firms, and people acting for them.
• Employees, former employees, applicants, contractors, vendors, clients, and other people with professional relationships to attorneys or law firms.
• Clients and prospective clients receiving loans or financial assistance from attorneys.
• People and entities that unlawfully solicit legal business for attorneys.

Context ​

Capping or running is unlawful solicitation of legal business for an attorney.