To Snitch or Not to Snitch?

California attorneys are going to feel the fallout from the Girardi scandal for a long time to come. In addition to changes requiring all attorneys in the state to report details about client trust accounts, there are other changes proposed that could put additional obligations on us all. In particular, the California State Bar is considering two proposals that would require attorneys to basically snitch on other attorneys who engage in certain types of misconduct.

There are two proposals being considered: 

• The first would require reporting if an attorney suspects another attorney has committed a criminal act, fraud or misappropriation of funds or property or if the conduct raises a substantial question about the attorney’s honesty, trustworthiness or fitness to practice.

• The second proposal would require reporting if an attorney suspects another attorney has committed a criminal act that reflects adversely on his/her honesty, trustworthiness or fitness to practice or engaged in conduct involves dishonesty, fraud, deceit, reckless or intentional misrepresentation or misappropriation of funds or property.  

Notably, California is the only state that does not currently have a rule of this type. The Girardi scandal plus others, such as Michael Avenatti, are forcing the State Bar to consider whether or not it’s time for California to stop being the exception. So should California attorneys be required to snitch or not? That is the question.