California attorneys will be required to report co-workers’ misconduct starting Aug. 1 in another major overhaul stemming from the Tom Girardi scandal.

The state Supreme Court announced the new rules on Thursday. The Act requires an attorney to be reprimanded if he has “credible evidence that another attorney has committed a criminal offense or has engaged in conduct involving fraud, fraud or deception” or ” , which raises serious questions of credibility.” Any other wrongdoing is required to be notified to the state attorney. , or fitness. ”

Failure to do so will result in a penalty of disqualification for up to three years.

Versions of the reporting law are also registered in 49 other states. But Golden State lawyers have resisted what many refer to as “tipping rules” for decades, arguing that such rules are unnecessary for membership in California’s elite bar. There were people too.

Things changed last year after The Times wrote about the state’s unusual situation and how it contributed to Mr. Girardi’s protracted corruption. This influential trial attorney embezzled millions of dollars in settlements at least in the 1980s, but many knew or should have known he was stealing from his clients. lawyers did not extradite him.

A former employee at Mr. Girardi’s company told The Times that he knew Mr. Girardi’s boss was stealing settlement money from burn victims. But he said he chose not to notify the state bar because he determined that the state’s bar code of conduct did not require it.

The state bar’s board of trustees began drafting a reporting requirement last year and submitted it to the Supreme Court for approval this spring. High Court judges have stated that lawyers may also inform judges of misconduct during ongoing litigation, and that false reports to judges can lead to disciplinary and criminal penalties. Added additional features, such as highlighting

Reuben Durand, chairman of the state bar association’s board of trustees, said he was “thankful” to the Supreme Court for “promptly elaborating and approving” the trustees’ proposal.

“Protecting our people is our most important duty,” Durand said. The new requirement “will further our mission to help state attorneys investigate fraud and provide California with similar rules that are in place in every other state in the country.” “

Senator Tom Amberg (D-Orange), who proposed a similar rule in Congress, called it “an important step forward for consumer protection.”

“Maintaining the integrity of the legal community is not a burden that should only be imposed on the public,” Amberg said. “With this move, California finally joins the ranks of the other 49 states.”

Not all lawyers were enthusiastic.

Glendale attorney James Hamm, who represents lawyers accused of wrongdoing, said the new rules were “pretty much classic bureaucratic CYA” and “no significant implications, but they look good.” rice field. In his experience, honest lawyers have already reported misconduct, and lawyers who choose not to report to state court can be prosecuted for far more serious crimes than for failing to report. said many.

“I think they create the illusion of ‘doing something’ without quoting or quoting,” Hamm said. “What you get is a lot of people who use it as an excuse to file banal, low-level, and big-money complaints against your adversaries, and try to hide behind the self-righteous obligations of this rule.” Lawyers.”

Jeremy M. Evans, president of the California Bar Association, was among those who have voiced concerns about the move to mandatory reporting, saying in February that “lawyers are harassing each other for fear of being held accountable in lawsuits.” They may be less likely to cooperate or cooperate.” He failed to report on the actions of other attorneys. ”

In a statement on Thursday, Evans said his organization “will work to ensure that attorneys are educated on the new standards that will advance them.”

There are some exceptions to this rule. Attorneys are not required to alert state attorneys if information about illegal activity becomes known during substance abuse or mental health treatment programs or in the context of attorney-client privilege.

The new reporting rules are the latest reform effort in the wake of the downfall of Los Angeles plaintiffs attorney Girardi, who became famous for his work in harm litigation portrayed in the movie “Erin Brockovich.” After Girardi’s company filed for bankruptcy in 2020, evidence emerged that Girardi used the settlement money to assume the lavish lifestyle he shared with his third wife, Real Housewives of Beverly Hills star Erica. bottom.

The 84-year-old faces federal wire fraud charges in Chicago and Los Angeles in connection with extorting millions of dollars from a settlement fund. He pleaded not guilty in both criminal cases.

Following revelations of his mishandling of client funds, collusion with state court officials, and use of mediators to exfiltrate funds, the state court introduced new rules governing client trust accounts. Reinforced conflict of interest regulations.

Reporting obligation legislation is one of the most significant changes resulting from the Girardi scandal, as it affects nearly all professionals, regardless of their specialty.

The need to continually pursue major reforms was one of the motivations for adopting new regulations. San Francisco-based litigation attorney and trustee Sarah Goode told the state court trustee last month: These are the reforms we should take. ”

The American Bar Association developed a model rule for reporting in 1983, and states began to adopt it in the following years. Some states, such as Georgia and Washington, only encouraged lawyers to file reports, but most states required them.

In California, a commission considered the possibility, but many common attorneys saw it as an unnecessary intrusion into the relationship between clients and attorneys.

One of the opponents was then federal prosecutor George Cardona, who voted to reject the rule in 2015 while serving on the Blue Ribbon Commission for Legal Ethics. In the aftermath of the Girardi scandal, Mr. Cardona was hired by the state courts as chief prosecutor, or supreme prosecutor, in an effort to clean up the court’s shabby reputation.

He told The Times last year that he had changed his mind after investigating the damage the selfish lawyer had done to his profession.

“Ultimately, I think adopting rules like this could help with that,” he said.