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Santa Barbara Lawyer - Santa Barbara County Bar Association

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Criminal Justice Legal News<br />

as usual has resulted in a financial and social disaster in<br />

California. Will we ever have a Sentencing Commission?<br />

Will we ever have a coherent sentencing scheme? Will we<br />

ever really deal with the conditions of incarceration or an<br />

intelligent plan to rehabilitate people and reintegrate them<br />

into society when they finish their prison sentences? Are<br />

we going to continue to pay the salaries of legislators and<br />

their massive staffs to just secure their own political futures<br />

as opposed to govern in the people’s best interests? Will<br />

pigs fly?<br />

Robert Sanger is a Certified Criminal Law Specialist and has been<br />

a criminal defense lawyer in <strong>Santa</strong> <strong><strong>Bar</strong>bara</strong> for over 36 years.<br />

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TRU-2912-A OCT 2009<br />

February 2010 37<br />

Colton, continued from page 24<br />

How is the Rule enforced? Are there civil tort<br />

consequences?<br />

Presumably the drafters of the Rule considered the “negative<br />

impression factor” an important aspect of the new regimen,<br />

which apparently is completely self-policing. That is,<br />

lawyers are not required generally to report either existence,<br />

or lack, or loss, of LPL coverage to the State <strong>Bar</strong>.<br />

The duties of disclosure are, however, of two aspects:<br />

(1) non-performance will subject the lawyer to State <strong>Bar</strong><br />

discipline; and (2) because these newly created professional<br />

duties run to clients, non-performance where required may<br />

arguably lead to expanded civil tort liability, e.g., breach<br />

of professional and/or fiduciary duty—at least where the<br />

former client/claimant can show causation and resulting<br />

compensable damage.<br />

If so, arguably breach of that duty need not be intentional<br />

(“should have known”) to be actionable. But, if intentional<br />

or reckless, the door also may have been opened to intentional<br />

tort liability for breach of fiduciary duty, possible<br />

punitive damages exposure, and even the survival of a<br />

claim for intentional wrongdoing, not dischargeable in<br />

bankruptcy!<br />

What language should be in the written<br />

disclosure?<br />

Discussion [2] and [3] (see side bar at page 17 of January<br />

2010 issue) provide the answers — at least as to sole<br />

practitioners (note the use of the singular pronouns). The<br />

language should be adapted for partnerships and law firms<br />

by replacing “I” with “we” — e.g., “…we are informing<br />

you in writing that we no longer have professional liability<br />

insurance.” Note, however, that the obligation of disclosure<br />

is personal to each member.<br />

The Discussion and the Rule itself provide no further<br />

guidance. Deviating from, altering or expanding upon the<br />

recommended disclosure language will invite unintended<br />

consequences and should be avoided.<br />

The new Rule potentially creates yet additional pitfalls,<br />

which may well affect lawyers who already have LPL insurance.<br />

Those issues will be addressed in next month’s final<br />

part of this article.<br />

Michael A. Colton, a past President of SBCBA, is with Hill,<br />

Trager & Colton, LLP; his practice emphasis is counseling and<br />

representation of lawyers and other professionals in civil trial and<br />

appellate litigation.

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