Plain English Breakdown
The effective date is missing from the provided metadata and text.
AB-2039: New Rules on Attorney Retaliation, Client Loans, and Solicitation
This law protects people who report attorney misconduct in good faith, requires written contracts for loans to clients without interest charges, and adds civil penalties and disbarment procedures for those acting as runners or cappers.
What This Bill Does
- Prohibits employers, law firms, attorneys, or their agents from retaliating against individuals who disclose information in good faith about violations of laws governing attorney conduct.
- Requires a separate written contract for any loan or financial assistance an attorney gives to a client, listing the total amount financed, repayment terms, and all fees or charges.
- Bans attorneys from charging interest on loans or funds provided to clients.
- Sets a civil penalty of $15,000 per offense for violating rules about attorney-client loans.
- Adds a civil penalty of $25,000 for each violation involving acting as a runner or capper to solicit business for attorneys.
- Requires the State Bar to create procedures for summarily disbaring licensees convicted of running or capping if they acted knowingly and for financial gain.
Who It Names or Affects
- Attorneys, law firms, and employers in California
- Clients who receive loans or financial assistance from attorneys
- Individuals who report suspected violations of attorney conduct rules
- People acting as runners or cappers to find business for lawyers
Terms To Know
- Retaliation
- Punishing someone, such as firing them, because they reported a rule violation in good faith.
- Runner or Capper
- A person who illegally finds clients and solicits business for an attorney.
- Summarily Disbarment
- A process to immediately remove an attorney's license without waiting for other steps, required by this bill for specific convictions involving running or capping.
Limits and Unknowns
- The official text does not state a specific effective date.
- The exact procedures for summarily disbarment must be created by the State Bar and do not exist yet in this bill.
- The source material describes penalties but does not list every possible defense against them.