Proposed Amendments to Rule 5.137 of State Bar Rules of Procedure

The State Bar seeks public comment on proposed amendments to State Bar Rules of Procedure, rule 5.137 that would reduce the State Bar Court’s recommended amount of monetary sanctions in discipline orders and clarify that installment payments for monetary sanctions will be added to the attorneys' annual fees.

Deadline: September 23, 2024, 11:59 p.m.

Direct comments to

Comments should be submitted using the online Public Comment Form. The online form allows you to input your comments directly.

Background

State Bar Rules of Procedure, rule 5.137 provides guidelines for State Bar Court’s recommendation and imposition of monetary sanctions in attorney disciplinary proceedings and for collected monetary sanctions to be deposited into the Client Security Fund (CSF). The Ad Hoc Commission on the Discipline System recommended in their final report to the Board of Trustees, submitted at the September 22, 2022, meeting, that monetary sanctions should be eliminated. The Ad Hoc Commission reasoned that other surveyed jurisdictions do not impose monetary sanctions in addition to disciplinary costs; the punitive nature of sanctions is contrary to long-standing precedent that discipline exists to protect the public and not to impose punishment; and that high costs can impact the ability of an attorney to return to practice, impeding rehabilitation.

While a statutory amendment is required to completely eliminate monetary sanctions, staff drafted amendments to rule 5.137 with the goal of significantly reducing the amount of ordered sanctions. These amendments were presented to the Board of Trustees at its July 18, 2024 meeting. Pursuant to Business and Professions Code section 6086.13, these amendments will ultimately need to be approved by the California Supreme Court.

Discussion/proposal

At its July 18, 2024, meeting, staff proposed amendments to rule 5.137 that would:

  • Reduce the recommended amount of monetary sanctions to $1,000 in cases of disbarment,
  • Reduce the recommended amount of monetary sanctions to $0 in cases of suspension and resignation with charges pending,
  • Clarify that installment payments for monetary sanctions will be added to the attorneys' annual fees, and
  • Provide clarifications.

However, the proposed amendments allow State Bar Court to deviate from these recommended ranges as they find appropriate. At the same July 18, 2024, meeting, the Board of Trustees, sitting as the Regulation and Discipline Committee, approved a resolution authorizing staff to submit the proposed amendments to rule 5.137 for public comment for 45 days. Further information regarding the State Bar’s proposed amendments to rule 5.137 and the full language of the proposed amended rule can be found in the staff report and Attachment A.

Any fiscal/personnel impact

Because Business and Professions Code, section 6068.13 requires that the monetary sanctions collected are deposited into CSF, reducing monetary sanctions imposed on attorneys will likely reduce revenue for CSF. As reported in the September 2023 Board item on the Ad Hoc Commission’s report, CSF received $17,000 in sanctions related revenue in 2021.

Background material

  • From the Board of Trustees Meeting July 18-19, 2024: Staff Report Item 5.2, Ad Hoc Commission on the Discipline System: Adoption of New Discipline Cost Model and Request to Circulate Monetary Sanction Rules for Public Comment
  • From the Board of Trustees Meeting September 21-22, 2023: Agenda Item 60-1, Ad Hoc Commission on the Discipline System Recommendations: Status Update Regarding Board-Directed Follow-Up Work
  • From the Board of Trustees meeting September 22-23, 2022: Agenda Item 701, Final Report and Recommendations of the Ad Hoc Commission on the Discipline System

Source

Board of Trustees, sitting as the Regulation and Discipline Committee

Deadline

September 23, 2024, 11:59 p.m.

Direct comments to

Comments should be submitted using the online Public Comment Form. The online form allows you to input your comments directly.