California Rules of Professional Conduct

CCC-232946

California Superior Local Rules

TABLE OF CONTENTS i CLIENT-LAWYER RELATIONSHIP Rule 1.0 Purpose and Function of the Rules of Professional Conduct 1 Rule 1.0.1 Terminology 2 Rule 1.1 Competence 4 Rule 1.2 Scope of Representation and Allocation of Authority 5 Rule 1.2.1 Assisting, Soliciting, or Inducing Violations 5 Rule 1.3 Diligence 5 Rule 1.4 Communication with Clients 6 Rule 1.4.1 Communication of Settlement Offers 7 Rule 1.4.2 Disclosure of Professional Liability Insurance 7 Rule 1.5 Fees for Legal Services 8 Rule 1.5.1 Fee Divisions Among Lawyers 9 Rule 1.6 Confidential Information of a Client 10 Rule 1.7 Conflict of Interest: Current Clients 14 Rule 1.8.1 Business Transactions with a Client and Pecuniary Interests Adverse to a Client 17 Rule 1.8.2 Use of Current Client’s Information 18 Rule 1.8.3 Gifts From Client 18 Rule 1.8.4 [Reserved] 19 Rule 1.8.5 Payment of Personal or Business Expenses Incurred by or for a Client 19 Rule 1.8.6 Compensation from One Other Than Client 20 Rule 1.8.7 Aggregate Settlements 20 Rule 1.8.8 Limiting Liability to Client 21 Rule 1.8.9 Purchasing Property at a Foreclosure or a Sale Subject to Judicial Review 21 Rule 1.8.10 Sexual Relations With Current Client 21 Rule 1.8.11 Imputation of Prohibitions Under Rules 1.8.1 to 1.8.9 22 Rule 1.9 Duties to Former Clients 22 Rule 1.10 Imputation Of Conflicts Of Interest: General Rule 24 Rule 1.11 Special Conflicts of Interest for Former and Current Government Officials and Employees 25 Rule 1.12 Former Judge, Arbitrator, Mediator, Or Other Third-Party Neutral 27 Rule 1.13 Organization as Client 28 Rule 1.14 [Reserved] 30 Rule 1.15 Safekeeping Funds and Property of Clients and Other Persons* 30 Rule 1.16 Declining Or Terminating Representation 33 Rule 1.17 Sale of a Law Practice 35 Rule 1.18 Duties To Prospective Client 36 COUNSELOR Rule 2.1 Advisor 38 Rule 2.2 [Reserved] 38 Rule 2.3 [Reserved] 38 Rule 2.4 Lawyer as Third-Party Neutral 38 Rule 2.4.1 Lawyer as Temporary Judge, Referee, or Court-Appointed Arbitrator 38 ADVOCATE Rule 3.1 Meritorious Claims and Contentions 40 Rule 3.2 Delay of Litigation 40 Rule 3.3 Candor Toward The Tribunal* 40 Rule 3.4 Fairness to Opposing Party and Counsel 42 Rule 3.5 Contact With Judges, Officials, Employees, and Jurors 43 Rule 3.6 Trial Publicity 44 Rule 3.7 Lawyer as Witness 46 Rule 3.8 Special Responsibilities of a Prosecutor 46 Rule 3.9 Advocate in Nonadjudicative Proceedings 48 Rule 3.10 Threatening Criminal, Administrative, or Disciplinary Charges 48

TABLE OF CONTENTS ii TRANSACTIONS WITH PERSONS* OTHER THAN CLIENTS Rule 4.1 Truthfulness in Statements to Others 50 Rule 4.2 Communication With a Represented Person* 50 Rule 4.3 Communicating with an Unrepresented Person* 52 Rule 4.4 Duties Concerning Inadvertently Transmitted Writings* 53 LAW FIRMS AND ASSOCIATIONS Rule 5.1 Responsibilities of Managerial and Supervisory Lawyers 54 Rule 5.2 Responsibilities of a Subordinate Lawyer 55 Rule 5.3 Responsibilities Regarding Nonlawyer Assistants 55 Rule 5.3.1 Employment of Disbarred, Suspended, Resigned, or Involuntarily Inactive Lawyer 56 Rule 5.4 Financial and Similar Arrangements with Nonlawyers 57 Rule 5.5 Unauthorized Practice of Law; Multijurisdictional Practice of Law 59 Rule 5.6 Restrictions on a Lawyer’s Right to Practice 59 PUBLIC SERVICE Rule 6.1 [Reserved] 61 Rule 6.2 [Reserved] 61 Rule 6.3 Membership In Legal Services Organization 61 Rule 6.4 [Reserved] 61 Rule 6.5 Limited Legal Services Programs 61 INFORMATION ABOUT LEGAL SERVICES Rule 7.1 Communications Concerning a Lawyer’s Services 63 Rule 7.2 Advertising 64 Rule 7.3 Solicitation of Clients 65 Rule 7.4 Communication of Fields of Practice and Specialization 66 Rule 7.5 Firm* Names and Trade Names 66 MAINTAINING THE INTEGRITY OF THE PROFESSION Rule 8.1 False Statement Regarding Application for Admission to Practice Law 67 Rule 8.1.1 Compliance with Conditions of Discipline and Agreements in Lieu of Discipline 67 Rule 8.2 Judicial Officials 67 Rule 8.3 [Reserved] 68 Rule 8.4 Misconduct 68 Rule 8.4.1 Prohibited Discrimination, Harassment and Retaliation 69 Rule 8.5 Disciplinary Authority; Choice of Law 71

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 1 On May 10, 2018, the California Supreme Court issued an order approving new Rules of Professional Conduct, which are effective on November 1, 2018. The current rules remain in effect until then. CLIENT-LAWYER RELATIONSHIP Rule 1.0 Purpose and Function of the Rules of Professional Conduct (

a) Purpose. The following rules are intended to regulate professional conduct of lawyers through discipline. They have been adopted by the Board of Trustees of the State Bar of California and approved by the Supreme Court of California pursuant to Business and Professions Code sections 6076 and 6077 to protect the public, the courts, and the legal profession; protect the integrity of the legal system; and promote the administration of justice and confidence in the legal profession. These rules together with any standards adopted by the Board of Trustees pursuant to these rules shall be binding upon all lawyers. (

b) Function.

(1) A willful violation of any of these rules is a basis for discipline.

(2) The prohibition of certain conduct in these rules is not exclusive. Lawyers are also bound by applicable law including the State Bar Act (Bus. & Prof. Code, § 6000 et seq.) and opinions of California courts.

(3) A violation of a rule does not itself give rise to a cause of action for damages caused by failure to comply with the rule. Nothing in these rules or the Comments to the rules is intended to enlarge or to restrict the law regarding the liability of lawyers to others. (

c) Purpose of Comments. The comments are not a basis for imposing discipline but are intended only to provide guidance for interpreting and practicing in compliance with the rules. (

d) These rules may be cited and referred to as the “California Rules of Professional Conduct.” Comment [1] The Rules of Professional Conduct are intended to establish the standards for lawyers for purposes of discipline. (See Ames v. State Bar (1973) 8 Cal.3d 910, 917 [106 Cal.Rptr. 489].) Therefore, failure to comply with an obligation or prohibition imposed by a rule is a basis for invoking the disciplinary process.

Because the rules are not designed to be a basis for civil liability, a violation of a rule does not itself give rise to a cause of action for enforcement of a rule or for damages caused by failure to comply with the rule. (Stanley v. Richmond (1995) 35 Cal.App.4th 1070, 1097 [41 Cal.Rptr.2d 768].) Nevertheless, a lawyer ’s violation of a rule may be evidence of breach of a lawyer ’s fiduciary or other substantive legal duty in a non- disciplinary context. (Ibid.; see also Mirabito v.

Liccardo (1992) 4 Cal.App.4th 41, 44 [5 Cal.Rptr.2d 571].) A violation of a rule may have other non-disciplinary consequences. (See, e.g., Fletcher v. Davis (2004) 33 Cal.4th 61, 71-72 [14 Cal.Rptr.3d 58] [enforcement of attorney ’s lien]; Chambers v. Kay (2002) 29 Cal.4th 142, 161 [126 Cal.Rptr.2d 536] [enforcement of fee sharing agreement].) [2] While the rules are intended to regulate professional conduct of lawyers, a violation of a rule can occur when a lawyer is not practicing law or acting in a professional capacity.

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 2 [3] A willful violation of a rule does not require that the lawyer intend to violate the rule. ( Phillips v. State Bar (1989) 49 Cal.3d 944, 952 [264 Cal.Rptr. 346]; and see Bus. & Prof. Code, § 6077.) [4] In addition to the authorities identified in paragraph (b)(2), opinions of ethics committees in California, although not binding, should be consulted for guidance on proper professional conduct.

Ethics opinions and rules and standards promulgated by other jurisdictions and bar associations may also be considered. [5] The disciplinary standards created by these rules are not intended to address all aspects of a lawyer ’s professional obligations. A lawyer, as a member of the legal profession, is a representative and advisor of clients, an officer of the legal system and a public citizen having special responsibilities for the quality of justice.

A lawyer should be aware of deficiencies in the administration of justice and of the fact that the poor, and sometimes persons* who are not poor cannot afford adequate legal assistance. Therefore, all lawyers are encouraged to devote professional time and resources and use civic influence to ensure equal access to the system of justice for those who because of economic or social barriers cannot afford or secure adequate legal counsel. In meeting this responsibility of the profession, every lawyer should aspire to render at least fifty hours of pro bono publico legal services per year.

The lawyer should aim to provide a substantial* majority of such hours to indigent individuals or to nonprofit organizations with a primary purpose of providing services to the poor or on behalf of the poor or disadvantaged. Lawyers may also provide financial support to organizations providing free legal services. (See Bus. & Prof. Code, § 6073.) Rule 1.0.1 Terminology (a) “Belief” or “believes” means that the person* involved actually supposes the fact in question to be true.

A person’s* belief may be inferred from circumstances. (b) [Reserved] (c) “Firm” or “law firm” means a law partnership; a professional law corporation; a lawyer acting as a sole proprietorship; an association authorized to practice law; or lawyers employed in a legal services organization or in the legal department, division or office of a corporation, of a government organization, or of another organization. (d) “Fraud” or “fraudulent” means conduct that is fraudulent under the law of the applicable jurisdiction and has a purpose to deceive. (e) “Informed consent” means a person’s* agreement to a proposed course of conduct after the lawyer has communicated and explained (

i) the relevant circumstances and (ii) the material risks, including any actual and reasonably* foreseeable adverse consequences of the proposed course of conduct. (e-1) “Informed written consent” means that the disclosures and the consent required by paragraph (

e) must be in writing.* (f) “Knowingly,” “known,” or “knows” means actual knowledge of the fact in question. A person ’s* knowledge may be inferred from circumstances. (g) “Partner” means a member of a partnership, a shareholder in a law firm* organized as a professional corporation, or a member of an association authorized to practice law. (g-1) “Person” has the meaning stated in Evidence Code

section 175. (h) “Reasonable” or “reasonably” when used in relation to conduct by a lawyer means the conduct of a reasonably prudent and competent lawyer.

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 3 (i) “Reasonable belief ” or “reasonably believes ” when used in reference to a lawyer means that the lawyer believes the matter in question and that the circumstances are such that the belief is reasonable. (j) “Reasonably should know ” when used in reference to a lawyer means that a lawyer of reasonable prudence and competence would ascertain the matter in question. (k) “Screened” means the isolation of a lawyer from any participation in a matter, including the timely imposition of procedures within a law firm* that are adequate under the circumstances (

i) to protect information that the isolated lawyer is obligated to protect under these rules or other law; and (ii) to protect against other law firm* lawyers and nonlawyer personnel communicating with the lawyer with respect to the matter. (l) “Substantial” when used in reference to degree or extent means a material matter of clear and weighty importance. (m) “Tribunal” means: (

i) a court, an arbitrator, an administrative law judge, or an administrative body acting in an adjudicative capacity and authorized to make a decision that can be binding on the parties involved; or (ii) a special master or other person* to whom a court refers one or more issues and whose decision or recommendation can be binding on the parties if approved by the court. (n) “Writing” or “written” has the meaning stated in Evidence Code

section 250. A “signed” writing includes an electronic sound, symbol, or process attached to or logically associated with a writing and executed, inserted, or adopted by or at the direction of a person* with the intent to sign the writing. Comment Firm* or Law Firm* [1] Practitioners who share office space and occasionally consult or assist each other ordinarily would not be regarded as constituting a law firm.* However, if they present themselves to the public in a way that suggests that they are a law firm* or conduct themselves as a law firm,* they may be regarded as a law firm* for purposes of these rules.

The terms of any formal agreement between associated lawyers are relevant in determining whether they are a firm,* as is the fact that they have mutual access to information concerning the clients they serve. [2] The term “of counsel” implies that the lawyer so designated has a relationship with the law firm,* other than as a partner* or associate, or officer or shareholder, that is close, personal, continuous, and regular.

Whether a lawyer who is denominated as “of counsel” or by a similar term should be deemed a member of a law firm* for purposes of these rules will also depend on the specific facts. (Compare People ex rel. Department of Corporations v. Speedee Oil Change Systems, Inc. (1999) 20 Cal.4th 1135 [86 Cal.Rptr.2d 816] with Chambers v.

Kay (2002) 29 Cal.4th 142 [126 Cal.Rptr.2d 536].) Fraud* [3] When the terms “fraud”* or “fraudulent”* are used in these rules, it is not necessary that anyone has suffered damages or relied on the misrepresentation or failure to inform because requiring the proof of those elements of fraud* would impede the purpose of certain rules to prevent fraud* or avoid a lawyer assisting in the perpetration of a fraud,* or otherwise frustrate the imposition of discipline on lawyers who engage in fraudulent* conduct.

The term “fraud”* or “fraudulent”* when used in these rules does not include merely negligent misrepresentation or negligent failure to apprise another of relevant information.

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 4 Informed Consent* and Informed Written Consent* [4] The communication necessary to obtain informed consent* or informed written consent* will vary according to the rule involved and the circumstances giving rise to the need to obtain consent.

Screened* [5] The purpose of screening* is to assure the affected client, former client, or prospective client that confidential information known* by the personally prohibited lawyer is neither disclosed to other law firm* lawyers or nonlawyer personnel nor used to the detriment of the person* to whom the duty of confidentiality is owed. The personally prohibited lawyer shall acknowledge the obligation not to communicate with any of the other lawyers and nonlawyer personnel in the law firm* with respect to the matter.

Similarly, other lawyers and nonlawyer personnel in the law firm* who are working on the matter promptly shall be informed that the screening* is in place and that they may not communicate with the personally prohibited lawyer with respect to the matter. Additional screening* measures that are appropriate for the particular matter will depend on the circumstances.

To implement, reinforce and remind all affected law firm* personnel of the presence of the screening,* it may be appropriate for the law firm* to undertake such procedures as a written* undertaking by the personally prohibited lawyer to avoid any communication with other law firm* personnel and any contact with any law firm* files or other materials relating to the matter, written* notice and instructions to all other law firm* personnel forbidding any communication with the personally prohibited lawyer relating to the matter, denial of access by that lawyer to law firm* files or other materials relating to the matter, and periodic reminders of the screen* to the personally prohibited lawyer and all other law firm* personnel. [6] In order to be effective, screening* measures must be implemented as soon as practical after a lawyer or law firm* knows* or reasonably should know* that there is a need for screening.* Rule 1.1 Competence (

a) A lawyer shall not intentionally, recklessly, with gross negligence, or repeatedly fail to perform legal services with competence. (

b) For purposes of this rule, “competence” in any legal service shall mean to apply the (

i) learning and skill, and (ii) mental, emotional, and physical ability reasonably* necessary for the performance of such service. (

c) If a lawyer does not have sufficient learning and skill when the legal services are undertaken, the lawyer nonetheless may provide competent representation by (

i) associating with or, where appropriate, professionally consulting another lawyer whom the lawyer reasonably believes* to be competent, (ii) acquiring sufficient learning and skill before performance is required, or (iii) referring the matter to another lawyer whom the lawyer reasonably believes* to be competent. (

d) In an emergency a lawyer may give advice or assistance in a matter in which the lawyer does not have the skill ordinarily required if referral to, or association or consultation with, another lawyer would be impractical. Assistance in an emergency must be limited to that reasonably* necessary in the circumstances. Comment [1] This rule addresses only a lawyer ’s responsibility for his or her own professional competence. See rules 5.1 and 5.3 with respect to a lawyer ’s disciplinary responsibility for supervising subordinate lawyers and nonlawyers. [2] See rule 1.3 with respect to a lawyer ’s duty to act with reasonable* diligence.

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 5 Rule 1.2 Scope of Representation and Allocation of Authority (

a) Subject to rule 1.2.1, a lawyer shall abide by a client ’s decisions concerning the objectives of representation and, as required by rule 1.4, shall reasonably* consult with the client as to the means by which they are to be pursued. Subject to Business and Professions Code

section 6068, subdivision (e)(1) and rule 1.6, a lawyer may take such action on behalf of the client as is impliedly authorized to carry out the representation. A lawyer shall abide by a client ’s decision whether to settle a matter. Except as otherwise provided by law in a criminal case, the lawyer shall abide by the client’s decision, after consultation with the lawyer, as to a plea to be entered, whether to waive jury trial and whether the client will testify. (

b) A lawyer may limit the scope of the representation if the limitation is reasonable* under the circumstances, is not otherwise prohibited by law, and the client gives informed consent.* Comment Allocation of Authority between Client and Lawyer [1] Paragraph (

a) confers upon the client the ultimate authority to determine the purposes to be served by legal representation, within the limits imposed by law and the lawyer ’s professional obligations. (See, e.g., Cal. Const., art. I, § 16; Pen. Code, § 1018.) A lawyer retained to represent a client is authorized to act on behalf of the client, such as in procedural matters and in making certain tactical decisions. A lawyer is not authorized merely by virtue of the lawyer ’s retention to impair the client ’s substantive rights or the client ’s claim itself. (Blanton v.

Womancare, Inc. (1985) 38 Cal.3d 396, 404 [212 Cal.Rptr. 151, 156].) [2] At the outset of, or during a representation, the client may authorize the lawyer to take specific action on the client’s behalf without further consultation. Absent a material change in circumstances and subject to rule 1.4, a lawyer may rely on such an advance authorization. The client may revoke such authority at any time.

Independence from Client’s Views or Activities [3] A lawyer ’s representation of a client, including representation by appointment, does not constitute an endorsement of the client’s political, economic, social or moral views or activities. Agreements Limiting Scope of Representation [4] All agreements concerning a lawyer ’s representation of a client must accord with the Rules of Professional Conduct and other law. (See, e.g., rules 1.1, 1.8.1, 5.6; see also Cal.

Rules of Court, rules 3.35- 3.37 [limited scope rules applicable in civil matters generally], 5.425 [limited scope rule applicable in family law matters].) Rule 1.2.1 Assisting, Soliciting, or Inducing Violations A lawyer shall not knowingly* assist in, solicit, or induce any violation of these rules or the State Bar Act. Rule 1.3 Diligence (

a) A lawyer shall not intentionally, repeatedly, recklessly or with gross negligence fail to act with reasonable diligence in representing a client.

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 6 (

b) For purposes of this rule, “reasonable diligence” shall mean that a lawyer acts with commitment and dedication to the interests of the client and does not neglect or disregard, or unduly delay a legal matter entrusted to the lawyer. Comment [1] This rule addresses only a lawyer ’s responsibility for his or her own professional diligence. See rules 5.1 and 5.3 with respect to a lawyer ’s disciplinary responsibility for supervising subordinate lawyers and nonlawyers. [2] See rule 1.1 with respect to a lawyer ’s duty to perform legal services with competence. Rule 1.4 Communication with Clients (

a) A lawyer shall: (1) promptly inform the client of any decision or circumstance with respect to which disclosure or the client’s informed consent* is required by these rules or the State Bar Act; (2) reasonably* consult with the client about the means by which to accomplish the client ’s objectives in the representation; (3) keep the client reasonably* informed about significant developments relating to the representation, including promptly complying with reasonable* requests for information and copies of significant documents when necessary to keep the client so informed; and (4) advise the client about any relevant limitation on the lawyer ’s conduct when the lawyer knows* that the client expects assistance not permitted by the Rules of Professional Conduct or other law. (

b) A lawyer shall explain a matter to the extent reasonably* necessary to permit the client to make informed decisions regarding the representation. (

c) A lawyer may delay transmission of information to a client if the lawyer reasonably believes* that the client would be likely to react in a way that may cause imminent harm to the client or others. (

d) A lawyer ’s obligation under this rule to provide information and documents is subject to any applicable protective order, non-disclosure agreement, or limitation under statutory or decisional law. Comment [1] A lawyer will not be subject to discipline under paragraph (a)(3) of this rule for failing to communicate insignificant or irrelevant information. (See Bus. & Prof.

Code, § 6068, subd. (m).) Whether a particular development is significant will generally depend on the surrounding facts and circumstances. [2] A lawyer may comply with paragraph (a)(3) by providing to the client copies of significant documents by electronic or other means. This rule does not prohibit a lawyer from seeking recovery of the lawyer ’s expense in any subsequent legal proceeding. [3] Paragraph (

c) applies during a representation and does not alter the obligations applicable at termination of a representation. (See rule 1.16(e)(1).)

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 7 [4] This rule is not intended to create, augment, diminish, or eliminate any application of the work product rule. The obligation of the lawyer to provide work product to the client shall be governed by relevant statutory and decisional law. Rule 1.4.1 Communication of Settlement Offers (

a) A lawyer shall promptly communicate to the lawyer ’s client: (1) all terms and conditions of a proposed plea bargain or other dispositive offer made to the client in a criminal matter; and (2) all amounts, terms, and conditions of any written* offer of settlement made to the client in all other matters. (

b) As used in this rule, “client” includes a person* who possesses the authority to accept an offer of settlement or plea, or, in a class action, all the named representatives of the class. Comment An oral offer of settlement made to the client in a civil matter must also be communicated if it is a “significant development” under rule 1.4. Rule 1.4.2 Disclosure of Professional Liability Insurance (

a) A lawyer who knows* or reasonably should know* that the lawyer does not have professional liability insurance shall inform a client in writing,* at the time of the client ’s engagement of the lawyer, that the lawyer does not have professional liability insurance. (

b) If notice under paragraph (

a) has not been provided at the time of a client ’s engagement of the lawyer, the lawyer shall inform the client in writing* within thirty days of the date the lawyer knows* or reasonably should know* that the lawyer no longer has professional liability insurance during the representation of the client. (

c) This rule does not apply to: (1) a lawyer who knows* or reasonably should know* at the time of the client ’s engagement of the lawyer that the lawyer ’s legal representation of the client in the matter will not exceed four hours; provided that if the representation subsequently exceeds four hours, the lawyer must comply with paragraphs (

a) and (b); (2) a lawyer who is employed as a government lawyer or in-house counsel when that lawyer is representing or providing legal advice to a client in that capacity; (3) a lawyer who is rendering legal services in an emergency to avoid foreseeable prejudice to the rights or interests of the client; (4) a lawyer who has previously advised the client in writing* under paragraph (

a) or (

b) that the lawyer does not have professional liability insurance. Comment [1] The disclosure obligation imposed by paragraph (

a) applies with respect to new clients and new engagements with returning clients.

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 8 [2] A lawyer may use the following language in making the disclosure required by paragraph (a), and may include that language in a written* fee agreement with the client or in a separate writing: “Pursuant to rule 1.4.2 of the California Rules of Professional Conduct, I am informing you in writing that I do not have professional liability insurance.” [3] A lawyer may use the following language in making the disclosure required by paragraph (b): “Pursuant to rule 1.4.2 of the California Rules of Professional Conduct, I am informing you in writing that I no longer have professional liability insurance.” [4] The exception in paragraph (c)(2) for government lawyers and in-house counsels is limited to situations involving direct employment and representation, and does not, for example, apply to outside counsel for a private or governmental entity, or to counsel retained by an insurer to represent an insured.

If a lawyer is employed by and provides legal services directly for a private entity or a federal, state or local governmental entity, that entity is presumed to know* whether the lawyer is or is not covered by professional liability insurance. Rule 1.5 Fees for Legal Services (

a) A lawyer shall not make an agreement for, charge, or collect an unconscionable or illegal fee. (

b) Unconscionability of a fee shall be determined on the basis of all the facts and circumstances existing at the time the agreement is entered into except where the parties contemplate that the fee will be affected by later events.

The factors to be considered in determining the unconscionability of a fee include without limitation the following: (1) whether the lawyer engaged in fraud* or overreaching in negotiating or setting the fee; (2) whether the lawyer has failed to disclose material facts; (3) the amount of the fee in proportion to the value of the services performed; (4) the relative sophistication of the lawyer and the client; (5) the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly; (6) the likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer; (7) the amount involved and the results obtained; (8) the time limitations imposed by the client or by the circumstances; (9) the nature and length of the professional relationship with the client; (10) the experience, reputation, and ability of the lawyer or lawyers performing the services; (11) whether the fee is fixed or contingent; (12) the time and labor required; and (13) whether the client gave informed consent* to the fee.

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 9 (

c) A lawyer shall not make an agreement for, charge, or collect: (1) any fee in a family law matter, the payment or amount of which is contingent upon the securing of a dissolution or declaration of nullity of a marriage or upon the amount of spousal or child support, or property settlement in lieu thereof; or (2) a contingent fee for representing a defendant in a criminal case. (

d) A lawyer may make an agreement for, charge, or collect a fee that is denominated as “earned on receipt” or “non-refundable,” or in similar terms, only if the fee is a true retainer and the client agrees in writing* after disclosure that the client will not be entitled to a refund of all or part of the fee charged. A true retainer is a fee that a client pays to a lawyer to ensure the lawyer’s availability to the client during a specified period or on a specified matter, but not to any extent as compensation for legal services performed or to be performed. (

e) A lawyer may make an agreement for, charge, or collect a flat fee for specified legal services. A flat fee is a fixed amount that constitutes complete payment for the performance of described services regardless of the amount of work ultimately involved, and which may be paid in whole or in

part in advance of the lawyer providing those services. Comment Prohibited Contingent Fees [1] Paragraph (c)(1) does not preclude a contract for a contingent fee for legal representation in connection with the recovery of post-judgment balances due under child or spousal support or other financial orders. Payment of Fees in Advance of Services [2] Rule 1.15(

a) and (

b) govern whether a lawyer must deposit in a trust account a fee paid in advance. [3] When a lawyer-client relationship terminates, the lawyer must refund the unearned portion of a fee. (See rule 1.16(e)(2).) Division of Fee [4] A division of fees among lawyers is governed by rule 1.5.1. Written* Fee Agreements [5] Some fee agreements must be in writing* to be enforceable. (See, e.g., Bus. & Prof. Code, §§ 6147 and 6148.) Rule 1.5.1 Fee Divisions Among Lawyers (

a) Lawyers who are not in the same law firm* shall not divide a fee for legal services unless: (1) the lawyers enter into a written* agreement to divide the fee; (2) the client has consented in writing,* either at the time the lawyers enter into the agreement to divide the fee or as soon thereafter as reasonably* practicable, after a full written* disclosure

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 10 to the client of: (

i) the fact that a division of fees will be made; (ii) the identity of the lawyers or law firms* that are parties to the division; and (iii) the terms of the division; and (3) the total fee charged by all lawyers is not increased solely by reason of the agreement to divide fees. (

b) This rule does not apply to a division of fees pursuant to court order. Comment The writing* requirements of paragraphs (a)(1) and (a)(2) may be satisfied by one or more writings.* Rule 1.6 Confidential Information of a Client (

a) A lawyer shall not reveal information protected from disclosure by Business and Professions Code

section 6068, subdivision (e)(1) unless the client gives informed consent,* or the disclosure is permitted by paragraph (

b) of this rule. (

b) A lawyer may, but is not required to, reveal information protected by Business and Professions Code

section 6068, subdivision (e)(1) to the extent that the lawyer reasonably believes* the disclosure is necessary to prevent a criminal act that the lawyer reasonably believes* is likely to result in death of, or substantial* bodily harm to, an individual, as provided in paragraph (c). (

c) Before revealing information protected by Business and Professions Code

section 6068, subdivision (e)(1) to prevent a criminal act as provided in paragraph (b), a lawyer shall, if reasonable* under the circumstances: (1) make a good faith effort to persuade the client: (

i) not to commit or to continue the criminal act; or (ii) to pursue a course of conduct that will prevent the threatened death or substantial* bodily harm; or do both (

i) and (ii); and (2) inform the client, at an appropriate time, of the lawyer ’s ability or decision to reveal information protected by Business and Professions Code

section 6068, subdivision (e)(1) as provided in paragraph (b). (

d) In revealing information protected by Business and Professions Code

section 6068, subdivision (e)(1) as provided in paragraph (b), the lawyer’s disclosure must be no more than is necessary to prevent the criminal act, given the information known* to the lawyer at the time of the disclosure. (

e) A lawyer who does not reveal information permitted by paragraph (

b) does not violate this rule. Comment Duty of confidentiality [1] Paragraph (

a) relates to a lawyer ’s obligations under Business and Professions Code

section 6068, subdivision (e)(1), which provides it is a duty of a lawyer: “To maintain inviolate the confidence, and at every peril to himself or herself to preserve the secrets, of his or her client. ” A lawyer ’s duty to preserve the confidentiality of client information involves public policies of paramount importance. (In Re Jordan (1974) 12 Cal.3d 575, 580 [116 Cal.Rptr. 371].) Preserving the confidentiality of client information contributes to the trust that is the hallmark of the lawyer-client relationship.

The client is thereby encouraged to seek legal assistance and to communicate fully and frankly with the lawyer even as to embarrassing or detrimental subjects. The lawyer needs this information to represent the client effectively and, if necessary, to advise the

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 11 client to refrain from wrongful conduct. Almost without exception, clients come to lawyers in order to determine their rights and what is, in the complex of laws and regulations, deemed to be legal and correct. Based upon experience, lawyers know* that almost all clients follow the advice given, and the law is upheld. Paragraph (

a) thus recognizes a fundamental principle in the lawyer-client relationship, that, in the absence of the client’s informed consent,* a lawyer must not reveal information protected by Business and Professions Code

section 6068, subdivision (e)(1). (See, e.g., Commercial Standard Title Co. v.

Superior Court (1979) 92 Cal.App.3d 934, 945 [155 Cal.Rptr.393].) Lawyer-client confidentiality encompasses the lawyer-client privilege, the work-product doctrine and ethical standards of confidentiality [2] The principle of lawyer-client confidentiality applies to information a lawyer acquires by virtue of the representation, whatever its source, and encompasses matters communicated in confidence by the client, and therefore protected by the lawyer-client privilege, matters protected by the work product doctrine, and matters protected under ethical standards of confidentiality, all as established in law, rule and policy. (See In the Matter of Johnson (Rev.

Dept. 2000) 4 Cal. State Bar Ct. Rptr. 179; Goldstein v. Lees (1975) 46 Cal.App.3d 614, 621 [120 Cal.Rptr. 253].) The lawyer-client privilege and work-product doctrine apply in judicial and other proceedings in which a lawyer may be called as a witness or be otherwise compelled to produce evidence concerning a client. A lawyer’s ethical duty of confidentiality is not so limited in its scope of protection for the lawyer-client relationship of trust and prevents a lawyer from revealing the client’s information even when not subjected to such compulsion.

Thus, a lawyer may not reveal such information except with the informed consent* of the client or as authorized or required by the State Bar Act, these rules, or other law. Narrow exception to duty of confidentiality under this rule [3] Notwithstanding the important public policies promoted by lawyers adhering to the core duty of confidentiality, the overriding value of life permits disclosures otherwise prohibited by Business and Professions Code

section 6068, subdivision (e)(1). Paragraph (

b) is based on Business and Professions Code

section 6068, subdivision (e)(2), which narrowly permits a lawyer to disclose information protected by Business and Professions Code

section 6068, subdivision (e)(1) even without client consent. Evidence Code

section 956.5, which relates to the evidentiary lawyer-client privilege, sets forth a similar express exception. Although a lawyer is not permitted to reveal information protected by

section 6068, subdivision (e)(1) concerning a client ’s past, completed criminal acts, the policy favoring the preservation of human life that underlies this exception to the duty of confidentiality and the evidentiary privilege permits disclosure to prevent a future or ongoing criminal act. Lawyer not subject to discipline for revealing information protected by Business and Professions Code

section 6068, subdivision (e)(1) as permitted under this rule [4] Paragraph (

b) reflects a balancing between the interests of preserving client confidentiality and of preventing a criminal act that a lawyer reasonably believes* is likely to result in death or substantial* bodily harm to an individual. A lawyer who reveals information protected by Business and Professions Code

section 6068, subdivision (e)(1) as permitted under this rule is not subject to discipline. No duty to reveal information protected by Business and Professions Code

section 6068, subdivision (e)(1) [5] Neither Business and Professions Code

section 6068, subdivision (e)(2) nor paragraph (

b) imposes an affirmative obligation on a lawyer to reveal information protected by Business and Professions Code

section 6068, subdivision (e)(1) in order to prevent harm. A lawyer may decide not to reveal such information. Whether a lawyer chooses to reveal information protected by

section 6068, subdivision (e)(1) as permitted under this rule is a matter for the individual lawyer to decide, based on all the facts and circumstances, such as those discussed in Comment [6] of this rule.

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 12 Whether to reveal information protected by Business and Professions Code

section 6068, subdivision (

e) as permitted under paragraph (b) [6] Disclosure permitted under paragraph (

b) is ordinarily a last resort, when no other available action is reasonably* likely to prevent the criminal act. Prior to revealing information protected by Business and Professions Code

section 6068, subdivision (e)(1) as permitted by paragraph (b), the lawyer must, if reasonable* under the circumstances, make a good faith effort to persuade the client to take steps to avoid the criminal act or threatened harm. Among the factors to be considered in determining whether to disclose information protected by

section 6068, subdivision (e)(1) are the following: (1) the amount of time that the lawyer has to make a decision about disclosure; (2) whether the client or a third-party has made similar threats before and whether they have ever acted or attempted to act upon them; (3) whether the lawyer believes* the lawyer ’s efforts to persuade the client or a third person* not to engage in the criminal conduct have or have not been successful; (4) the extent of adverse effect to the client ’s rights under the Fifth, Sixth and Fourteenth Amendments of the United States Constitution and analogous rights and privacy rights under

Article I of the Constitution of the State of California that may result from disclosure contemplated by the lawyer; (5) the extent of other adverse effects to the client that may result from disclosure contemplated by the lawyer; and (6) the nature and extent of information that must be disclosed to prevent the criminal act or threatened harm. A lawyer may also consider whether the prospective harm to the victim or victims is imminent in deciding whether to disclose the information protected by

section 6068, subdivision (e)(1). However, the imminence of the harm is not a prerequisite to disclosure and a lawyer may disclose the information protected by

section 6068, subdivision (e)(1) without waiting until immediately before the harm is likely to occur. Whether to counsel client or third person* not to commit a criminal act reasonably* likely to result in death or substantial* bodily harm [7] Subparagraph (c)(1) provides that before a lawyer may reveal information protected by Business and Professions Code

section 6068, subdivision (e)(1), the lawyer must, if reasonable* under the circumstances, make a good faith effort to persuade the client not to commit or to continue the criminal act, or to persuade the client to otherwise pursue a course of conduct that will prevent the threatened death or substantial* bodily harm, including persuading the client to take action to prevent a third person* from committing or continuing a criminal act. If necessary, the client may be persuaded to do both. The interests protected by such counseling are the client’s interests in limiting disclosure of information protected by

section 6068, subdivision (

e) and in taking responsible action to deal with situations attributable to the client. If a client, whether in response to the lawyer’s counseling or otherwise, takes corrective action — such as by ceasing the client’s own criminal act or by dissuading a third person* from committing or continuing a criminal act before harm is caused — the option for permissive disclosure by the lawyer would cease because the threat posed by the criminal act would no longer be present.

When the actor is a nonclient or when the act is deliberate or malicious, the lawyer who contemplates making adverse disclosure of protected information may reasonably* conclude that the compelling interests of the lawyer or others in their own personal safety preclude personal contact with the actor. Before counseling an actor who is a nonclient, the lawyer should, if reasonable* under the circumstances, first advise the client of the lawyer ’s intended course of action. If a client or another person*

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 13 has already acted but the intended harm has not yet occurred, the lawyer should consider, if reasonable* under the circumstances, efforts to persuade the client or third person* to warn the victim or consider other appropriate action to prevent the harm. Even when the lawyer has concluded that paragraph (

b) does not permit the lawyer to reveal information protected by

section 6068, subdivision (e)(1), the lawyer nevertheless is permitted to counsel the client as to why it may be in the client ’s best interest to consent to the attorney ’s disclosure of that information. Disclosure of information protected by Business and Professions Code

section 6068, subdivision (e)(1) must be no more than is reasonably* necessary to prevent the criminal act [8] Paragraph (

d) requires that disclosure of information protected by Business and Professions Code

section 6068, subdivision (

e) as permitted by paragraph (b), when made, must be no more extensive than is necessary to prevent the criminal act. Disclosure should allow access to the information to only those persons* who the lawyer reasonably believes* can act to prevent the harm. Under some circumstances, a lawyer may determine that the best course to pursue is to make an anonymous disclosure to the potential victim or relevant law-enforcement authorities. What particular measures are reasonable* depends on the circumstances known* to the lawyer.

Relevant circumstances include the time available, whether the victim might be unaware of the threat, the lawyer’s prior course of dealings with the client, and the extent of the adverse effect on the client that may result from the disclosure contemplated by the lawyer. Informing client pursuant to subparagraph (c)(2) of lawyer ’s ability or decision to reveal information protected by Business and Professions Code

section 6068, subdivision (e)(1) [9] A lawyer is required to keep a client reasonably* informed about significant developments regarding the representation. (See rule 1.4; Bus. & Prof. Code, § 6068, subd. (m).) Paragraph (c)(2), however, recognizes that under certain circumstances, informing a client of the lawyer ’s ability or decision to reveal information protected by

section 6068, subdivision (e)(1) as permitted in paragraph (

b) would likely increase the risk of death or substantial* bodily harm, not only to the originally-intended victims of the criminal act, but also to the client or members of the client ’s family, or to the lawyer or the lawyer ’s family or associates. Therefore, paragraph (c)(2) requires a lawyer to inform the client of the lawyer ’s ability or decision to reveal information protected by

section 6068, subdivision (e)(1) as permitted in paragraph (

b) only if it is reasonable* to do so under the circumstances.

Paragraph (c)(2) further recognizes that the appropriate time for the lawyer to inform the client may vary depending upon the circumstances. (See Comment [10] of this rule.) Among the factors to be considered in determining an appropriate time, if any, to inform a client are: (1) whether the client is an experienced user of legal services; (2) the frequency of the lawyer ’s contact with the client; (3) the nature and length of the professional relationship with the client; (4) whether the lawyer and client have discussed the lawyer ’s duty of confidentiality or any exceptions to that duty; (5) the likelihood that the client ’s matter will involve information within paragraph (b); (6) the lawyer ’s belief,* if applicable, that so informing the client is likely to increase the likelihood that a criminal act likely to result in the death of, or substantial* bodily harm to, an individual; and (7) the lawyer ’s belief,* if applicable, that good faith efforts to persuade a client not to act on a threat have failed.

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 14 Avoiding a chilling effect on the lawyer-client relationship [10] The foregoing flexible approach to the lawyer ’s informing a client of his or her ability or decision to reveal information protected by Business and Professions Code

section 6068, subdivision (e)(1) recognizes the concern that informing a client about limits on confidentiality may have a chilling effect on client communication. (See Comment [1].) To avoid that chilling effect, one lawyer may choose to inform the client of the lawyer’s ability to reveal information protected by

section 6068, subdivision (e)(1) as early as the outset of the representation, while another lawyer may choose to inform a client only at a point when that client has imparted information that comes within paragraph (b), or even choose not to inform a client until such time as the lawyer attempts to counsel the client as contemplated in Comment [7]. In each situation, the lawyer will have satisfied the lawyer’s obligation under paragraph (c)(2), and will not be subject to discipline. Informing client that disclosure has been made; termination of the lawyer-client relationship [11] When a lawyer has revealed information protected by Business and Professions Code

section 6068, subdivision (

e) as permitted in paragraph (b), in all but extraordinary cases the relationship between lawyer and client that is based on trust and confidence will have deteriorated so as to make the lawyer ’s representation of the client impossible. Therefore, when the relationship has deteriorated because of the lawyer’s disclosure, the lawyer is required to seek to withdraw from the representation, unless the client has given informed consent* to the lawyer ’s continued representation. The lawyer normally must inform the client of the fact of the lawyer’s disclosure.

If the lawyer has a compelling interest in not informing the client, such as to protect the lawyer, the lawyer’s family or a third person* from the risk of death or substantial* bodily harm, the lawyer must withdraw from the representation. (See rule 1.16.) Other consequences of the lawyer’s disclosure [12] Depending upon the circumstances of a lawyer ’s disclosure of information protected by Business and Professions Code

section 6068, subdivision (e)(1) as permitted by this rule, there may be other important issues that a lawyer must address. For example, a lawyer who is likely to testify as a witness in a matter involving a client must comply with rule. 3.7. Similarly, the lawyer must also consider his or her duties of loyalty and competence. (See rules 1.7 and 1.1.) Other exceptions to confidentiality under California law [13] This rule is not intended to augment, diminish, or preclude any other exceptions to the duty to preserve information protected by Business and Professions Code

section 6068, subdivision (e)(1) recognized under California law. Rule 1.7 Conflict of Interest: Current Clients (

a) A lawyer shall not, without informed written consent* from each client and compliance with paragraph (d), represent a client if the representation is directly adverse to another client in the same or a separate matter. (

b) A lawyer shall not, without informed written consent* from each affected client and compliance with paragraph (d), represent a client if there is a significant risk the lawyer ’s representation of the client will be materially limited by the lawyer ’s responsibilities to or relationships with another client, a former client or a third person,* or by the lawyer’s own interests. (

c) Even when a significant risk requiring a lawyer to comply with paragraph (

b) is not present, a lawyer shall not represent a client without written* disclosure of the relationship to the client and compliance with paragraph (

d) where:

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 15 (1) the lawyer has, or knows* that another lawyer in the lawyer ’s firm* has, a legal, business, financial, professional, or personal relationship with or responsibility to a party or witness in the same matter; or (2) the lawyer knows* or reasonably should know* that another party ’s lawyer is a spouse, parent, child, or sibling of the lawyer, lives with the lawyer, is a client of the lawyer or another lawyer in the lawyer’s firm,* or has an intimate personal relationship with the lawyer. (

d) Representation is permitted under this rule only if the lawyer complies with paragraphs (a), (b), and (c), and: (1) the lawyer reasonably believes* that the lawyer will be able to provide competent and diligent representation to each affected client; (2) the representation is not prohibited by law; and (3) the representation does not involve the assertion of a claim by one client against another client represented by the lawyer in the same litigation or other proceeding before a tribunal. (

e) For purposes of this rule, “matter” includes any judicial or other proceeding, application, request for a ruling or other determination, contract, transaction, claim, controversy, investigation, charge, accusation, arrest, or other deliberation, decision, or action that is focused on the interests of specific persons,* or a discrete and identifiable class of persons.* Comment [1] Loyalty and independent judgment are essential elements in the lawyer ’s relationship to a client.

The duty of undivided loyalty to a current client prohibits undertaking representation directly adverse to that client without that client’s informed written consent.* Thus, absent consent, a lawyer may not act as an advocate in one matter against a person* the lawyer represents in some other matter, even when the matters are wholly unrelated. (See Flatt v. Superior Court (1994) 9 Cal.4th 275 [36 Cal.Rptr.2d 537].) A directly adverse conflict under paragraph (

a) can arise in a number of ways, for example, when: (

i) a lawyer accepts representation of more than one client in a matter in which the interests of the clients actually conflict; (ii) a lawyer, while representing a client, accepts in another matter the representation of a person* who, in the first matter, is directly adverse to the lawyer’s client; or (iii) a lawyer accepts representation of a person* in a matter in which an opposing party is a client of the lawyer or the lawyer’s law firm.* Similarly, direct adversity can arise when a lawyer cross-examines a non-party witness who is the lawyer’s client in another matter, if the examination is likely to harm or embarrass the witness.

On the other hand, simultaneous representation in unrelated matters of clients whose interests are only economically adverse, such as representation of competing economic enterprises in unrelated litigation, does not ordinarily constitute a conflict of interest and thus may not require informed written consent* of the respective clients. [2] Paragraphs (

a) and (

b) apply to all types of legal representations, including the concurrent representation of multiple parties in litigation or in a single transaction or in some other common enterprise or legal relationship. Examples of the latter include the formation of a partnership for several partners* or a corporation for several shareholders, the preparation of a pre-nuptial agreement, or joint or reciprocal wills for a husband and wife, or the resolution of an “uncontested” marital dissolution.

If a lawyer initially represents multiple clients with the informed written consent* as required under paragraph (b), and circumstances later develop indicating that direct adversity exists between the clients, the lawyer must obtain further informed written consent* of the clients under paragraph (a). [3] In State Farm Mutual Automobile Insurance Company v. Federal Insurance Company (1999) 72 Cal.App.4th 1422 [86 Cal.Rptr.2d 20], the court held that subparagraph (C)(3) of predecessor rule 3-310 was

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 16 violated when a lawyer, retained by an insurer to defend one suit, and while that suit was still pending, filed a direct action against the same insurer in an unrelated action without securing the insurer ’s consent. Notwithstanding State Farm, paragraph (

a) does not apply with respect to the relationship between an insurer and a lawyer when, in each matter, the insurer ’s interest is only as an indemnity provider and not as a direct party to the action. [4] Even where there is no direct adversity, a conflict of interest requiring informed written consent* under paragraph (

b) exists if there is a significant risk that a lawyer ’s ability to consider, recommend or carry out an appropriate course of action for the client will be materially limited as a result of the lawyer ’s other responsibilities, interests, or relationships, whether legal, business, financial, professional, or personal.

For example, a lawyer’s obligations to two or more clients in the same matter, such as several individuals seeking to form a joint venture, may materially limit the lawyer ’s ability to recommend or advocate all possible positions that each might take because of the lawyer ’s duty of loyalty to the other clients. The risk is that the lawyer may not be able to offer alternatives that would otherwise be available to each of the clients.

The mere possibility of subsequent harm does not itself require disclosure and informed written consent.* The critical questions are the likelihood that a difference in interests exists or will eventuate and, if it does, whether it will materially interfere with the lawyer ’s independent professional judgment in considering alternatives or foreclose courses of action that reasonably* should be pursued on behalf of each client.

The risk that the lawyer’s representation may be materially limited may also arise from present or past relationships between the lawyer, or another member of the lawyer ’s firm*, with a party, a witness, or another person* who may be affected substantially by the resolution of the matter. [5] Paragraph (

c) requires written* disclosure of any of the specified relationships even if there is not a significant risk the relationship will materially limit the lawyer ’s representation of the client. However, if the particular circumstances present a significant risk the relationship will materially limit the lawyer ’s representation of the client, informed written consent* is required under paragraph (b). [6] Ordinarily paragraphs (

a) and (

b) will not require informed written consent* simply because a lawyer takes inconsistent legal positions in different tribunals* at different times on behalf of different clients. Advocating a legal position on behalf of a client that might create precedent adverse to the interests of another client represented by a lawyer in an unrelated matter is not sufficient, standing alone, to create a conflict of interest requiring informed written consent.* Informed written consent* may be required, however, if there is a significant risk that: (

i) the lawyer may temper the lawyer ’s advocacy on behalf of one client out of concern about creating precedent adverse to the interest of another client; or (ii) the lawyer ’s action on behalf of one client will materially limit the lawyer ’s effectiveness in representing another client in a different case, for example, when a decision favoring one client will create a precedent likely to seriously weaken the position taken on behalf of the other client.

Factors relevant in determining whether the clients ’ informed written consent* is required include: the courts and jurisdictions where the different cases are pending, whether a ruling in one case would have a precedential effect on the other case, whether the legal question is substantive or procedural, the temporal relationship between the matters, the significance of the legal question to the immediate and long-term interests of the clients involved, and the clients’ reasonable* expectations in retaining the lawyer. [7] Other rules and laws may preclude the disclosures necessary to obtain the informed written consent* or provide the information required to permit representation under this rule. (See, e.g., Bus. & Prof.

Code, § 6068, subd. (e)(1) and rule 1.6.) If such disclosure is precluded, representation subject to paragraph (a), (b), or (

c) of this rule is likewise precluded. [8] Paragraph (

d) imposes conditions that must be satisfied even if informed written consent* is obtained as required by paragraphs (

a) or (

b) or the lawyer has informed the client in writing* as required by paragraph (c). There are some matters in which the conflicts are such that even informed written consent* may not suffice to permit representation. (See Woods v. Superior Court (1983) 149 Cal.App.3d 931 [197 Cal.Rptr. 185]; Klemm v.

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 17 Superior Court (1977) 75 Cal.App.3d 893 [142 Cal.Rptr. 509]; Ishmael v. Millington (1966) 241 Cal.App.2d 520 [50 Cal.Rptr. 592].) [9] This rule does not preclude an informed written consent* to a future conflict in compliance with applicable case law. The effectiveness of an advance consent is generally determined by the extent to which the client reasonably* understands the material risks that the consent entails.

The more comprehensive the explanation of the types of future representations that might arise and the actual and reasonably* foreseeable adverse consequences to the client of those representations, the greater the likelihood that the client will have the requisite understanding. The experience and sophistication of the client giving consent, as well as whether the client is independently represented in connection with giving consent, are also relevant in determining whether the client reasonably* understands the risks involved in giving consent.

An advance consent cannot be effective if the circumstances that materialize in the future make the conflict nonconsentable under paragraph (d). A lawyer who obtains from a client an advance consent that complies with this rule will have all the duties of a lawyer to that client except as expressly limited by the consent.

A lawyer cannot obtain an advance consent to incompetent representation. (See rule 1.8.8.) [10] A material change in circumstances relevant to application of this rule may trigger a requirement to make new disclosures and, where applicable, obtain new informed written consents.* In the absence of such consents, depending on the circumstances, the lawyer may have the option to withdraw from one or more of the representations in order to avoid the conflict. The lawyer must seek court approval where necessary and take steps to minimize harm to the clients. See rule 1.16.

The lawyer must continue to protect the confidences of the clients from whose representation the lawyer has withdrawn. (See rule 1.9(c).) [11] For special rules governing membership in a legal service organization, see rule 6.3; and for work in conjunction with certain limited legal services programs, see rule 6.5.

Rule 1.8.1 Business Transactions with a Client and Pecuniary Interests Adverse to a Client A lawyer shall not enter into a business transaction with a client, or knowingly* acquire an ownership, possessory, security or other pecuniary interest adverse to a client, unless each of the following requirements has been satisfied: (

a) the transaction or acquisition and its terms are fair and reasonable* to the client and the terms and the lawyer’s role in the transaction or acquisition are fully disclosed and transmitted in writing* to the client in a manner that should reasonably* have been understood by the client; (

b) the client either is represented in the transaction or acquisition by an independen t lawyer of the client’s choice or the client is advised in writing* to seek the advice of an independent lawyer of the client’s choice and is given a reasonable* opportunity to seek that advice; and (

c) the client thereafter provides informed written cons ent* to the terms of the transaction or acquisition, and to the lawyer’s role in it. Comment [1] A lawyer has an “other pecuniary interest adverse to a client” within the meaning of this rule when the lawyer possesses a legal right to significantly impair or prejudice the client ’s rights or interests without court action. (See Fletcher v. Davis (2004) 33 Cal.4th 61, 68 [14 Cal.Rptr.3d 58]; see also Bus. & Prof. Code, § 6175.3 [Sale of financial products to elder or dependent adult clients; Disclosure]; Fam.

Code, §§ 2033 -2034 [Attorney lien on community real property].) However, this rule does not apply to a charging lien given to secure payment of a contingenc y fee. (See Plummer v. Day/Eisenberg, LLP (2010) 184 Cal.App.4th 38 [108 Cal.Rptr.3d 455].)

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 18 [2] For purposes of this rule, factors that can be considered in determining whether a lawyer is independent include whether the lawyer: (

i) has a financial interest in the transaction or acquisition; and (ii) has a close legal, business, financial, professional or personal relationship with the lawyer seeking the client ’s consent. [3] Fairness and reasonableness under paragraph (

a) are measured at the time of the t ransaction or acquisition based on the facts that then exist. [4] In some circumstances, this rule may apply to a transaction entered into with a former client. (Compare Hunniecutt v. State Bar (1988) 44 Cal.3d 362, 370-71 [“[W]hen an attorney enters into a transaction with a former client regarding a fund which resulted from the attorney ’s representation, it is reasonable to examine the relationship between the parties for indications of special trust resulting therefrom.

We conclude that if there is evidence that the client placed his trust in the attorney because of the representation, an attorney- client relationship exists for the purposes of [the predecessor rule) even if the representation has otherwise ended [and] It appears that [the client] became a target of [the lawyer’s] solicitation because he knew, through his representation of her, that she had recently received the settlement fund [and the court also found the client to be unsophisticated]. ”] with Wallis v.

State Bar (1942) 21 Cal.2d 322 [fin ding lawyer not subject to discipline for entering into business transaction with a former client where the former client was a sophisticated businesswoman who had actively negotiated for terms she thought desirable, and the transaction was not connected with the matter on which the lawyer previously represented her].) [5] This rule does not apply to the agreement by which the lawyer is retained by the client, unless the agreement confers on the lawyer an ownership, possessory, security, or other pecuniary interest adverse to the client.

Such an agreement is governed, in pa rt, by rule 1.5. This rule also does not apply to an agreement to advance to or deposit with a lawyer a sum to be applied to fees, or costs or other expenses, to be incurred in the future. Such agreements are governed, in part, by rules 1.5 and 1.15. [6] This rule does not apply: (

i) where a lawyer and client each make an investment on terms offered by a third person* to the general public or a significant portion thereof; or (ii) to standard commercial transactions for products or services that a lawyer acquires from a client on the same terms that the client generally markets them to others, where the lawyer has no advantage in dealing with the client. Rule 1.8.2 Use of Current Client’s Information A lawyer shall not use a client ’s information protected by Business and Professions Code

section 6068, subdivision (e)(1) to the disadvantage of the client unless the client gives informed consent,* except as permitted by these rules or the State Bar Act. Comment A lawyer violates the duty of loyalty by using information protected by Business and Professions Code

section 6068, subdivision (e)(1) to the disadvantage of a current client. Rule 1.8.3 Gifts From Client (

a) A lawyer shall not: (1) solicit a client to make a substantial* gift, including a testamentary gift, to the lawyer or a person* related to the lawyer, unless the lawyer or other recipient of the gift is related to the client, or (2) prepare on behalf of a client an instrument giving the lawyer or a person* related to the lawyer any substantial* gift, unless (

i) the lawyer or other recipient of the gift is related to the client, or

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 19 (ii) the client has been advised by an independent lawyer who has provided a certificate of independent review that complies with the requirements of Probate Code

section 21384. (

b) For purposes of this rule, related persons* include a person* who is “related by blood or affinity” as that term is defined in California Probate Code

section 21374, subdivision (a). Comment [1] A lawyer or a person* related to a lawyer may accept a gift from the lawyer ’s client, subject to general standards of fairness and absence of undue influence. A lawyer also does not violate this rule merely by engaging in conduct that might result in a client making a gift, such as by sending the client a wedding announcement. Discipline is appropriate where impermissible influence occurs. (See Magee v.

State Bar (1962) 58 Cal.2d 423 [24 Cal.Rptr. 839].) [2] This rule does not prohibit a lawyer from seeking to have the lawyer or a partner* or associate of the lawyer named as executor of the client ’s estate or to another potentially lucrative fiduciary position. Such appointments, however, will be subject to rule 1.7(

b) and (c). Rule 1.8.4 [Reserved] Rule 1.8.5 Payment of Personal or Business Expenses Incurred by or for a Client (

a) A lawyer shall not directly or indirectly pay or agree to pay, guarantee, or represent that the lawyer or lawyer’s law firm* will pay the personal or business expenses of a prospective or existing client. (

b) Notwithstanding paragraph (a), a lawyer may: (1) pay or agree to pay such expenses to third persons,* from funds collected or to be collected for the client as a result of the representation, with the consent of the client; (2) after the lawyer is retained by the client, agree to lend money to the client based on the client’s written* promise to repay the loan, provided the lawyer complies with rules 1.7(b), 1.7(c), and 1.8.1 before making the loan or agreeing to do so; (3) advance the costs of prosecuting or defending a claim or action, or of otherwise protecting or promoting the client’s interests, the repayment of which may be contingent on the outcome of the matter; and (4) pay the costs of prosecuting or defending a claim or action, or of otherwise protecting or promoting the interests of an indigent person* in a matter in which the lawyer represents the client. (c) “Costs” within the meaning of paragraphs (b)(3) and (b)(4) are not limited to those costs that are taxable or recoverable under any applicable statute or rule of court but may include any reasonable* expenses of litigation, including court costs, and reasonable* expenses in preparing for litigation or in providing other legal services to the client. (

d) Nothing in this rule shall be deemed to limit the application of rule 1.8.9.

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 20 Rule 1.8.6 Compensation from One Other Than Client A lawyer shall not enter into an agreement for, charge, or accept compensation for representing a client from one other than the client unless: (

a) there is no interference with the lawyer ’s independent professional judgment or with the lawyer-client relationship; (

b) information is protected as required by Business and Professions Code

section 6068, subdivision (e)(1) and rule 1.6; and (

c) the lawyer obtains the client ’s informed written consent* at or before the time the lawyer has entered into the agreement for, charged, or accepted the compensation, or as soon thereafter as reasonably* practicable, provided that no disclosure or consent is required if: (1) nondisclosure or the compensation is otherwise authorized by law or a court order; or (2) the lawyer is rendering legal services on behalf of any public agency or nonprofit organization that provides legal services to other public agencies or the public.

Comment [1] A lawyer ’s responsibilities in a matter are owed only to the client except where the lawyer also represents the payor in the same matter. With respect to the lawyer’s additional duties when representing both the client and the payor in the same matter, see rule 1.7. [2] A lawyer who is exempt from disclosure and consent requirements under paragraph (

c) nevertheless must comply with paragraphs (

a) and (b). [3] This rule is not intended to abrogate existing relationships between insurers and insureds whereby the insurer has the contractual right to unilaterally select counsel for the insured, where there is no conflict of interest. (See San Diego Navy Federal Credit Union v. Cumis Insurance Society (1984) 162 Cal.App.3d 358 [208 Cal.Rptr. 494].). [4] In some limited circumstances, a lawyer might not be able to obtain client consent before the lawyer has entered into an agreement for, charged, or accepted compensation, as required by this rule.

This might happen, for example, when a lawyer is retained or paid by a family member on behalf of an incarcerated client or in certain commercial settings, such as when a lawyer is retained by a creditors ’ committee involved in a corporate debt restructuring and agrees to be compensated for any services to be provided to other similarly situated creditors who have not yet been identified. In such limited situations, paragraph (

c) permits the lawyer to comply with this rule as soon thereafter as is reasonably* practicable. [5] This rule is not intended to alter or diminish a lawyer ’s obligations under rule 5.4(c). Rule 1.8.7 Aggregate Settlements (

a) A lawyer who represents two or more clients shall not enter into an aggregate settlement of the claims of or against the clients, or in a criminal case an aggregate agreement as to guilty or nolo contendere pleas, unless each client gives informed written consent.* The lawyer ’s disclosure shall include the existence and nature of all the claims or pleas involved and of the participation of each person* in the settlement. (

b) This rule does not apply to class action settlements subject to court approval.

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 21 Rule 1.8.8 Limiting Liability to Client A lawyer shall not: (

a) Contract with a client prospectively limiting the lawyer ’s liability to the client for the lawyer ’s professional malpractice; or (

b) Settle a claim or potential claim for the lawyer ’s liability to a client or former client for the lawyer ’s professional malpractice, unless the client or former client is either: (1) represented by an independent lawyer concerning the settlement; or (2) advised in writing* by the lawyer to seek the advice of an independent lawyer of the client ’s choice regarding the settlement and given a reasonable* opportunity to seek that advice. Comment [1] Paragraph (

b) does not absolve the lawyer of the obligation to comply with other law. (See, e.g., Bus. & Prof. Code, § 6090.5.) [2] This rule does not apply to customary qualifications and limitations in legal opinions and memoranda, nor does it prevent a lawyer from reasonably* limiting the scope of the lawyer ’s representation. (See rule 1.2(b).) Rule 1.8.9 Purchasing Property at a Foreclosure or a Sale Subject to Judicial Review (

a) A lawyer shall not directly or indirectly purchase property at a probate, foreclosure, receiver ’s, trustee’s, or judicial sale in an action or proceeding in which such lawyer or any lawyer affiliated by reason of personal, business, or professional relationship with that lawyer or with that lawyer ’s law firm* is acting as a lawyer for a party or as executor, receiver, trustee, administrator, guardian, or conservator. (

b) A lawyer shall not represent the seller at a probate, foreclosure, receiver, trustee, or judicial sale in an action or proceeding in which the purchaser is a spouse or relative of the lawyer or of another lawyer in the lawyer’s law firm* or is an employee of the lawyer or the lawyer’s law firm.* (

c) This rule does not prohibit a lawyer ’s participation in transactions that are specifically authorized by and comply with Probate Code sections 9880 through 9885, but such transactions remain subject to the provisions of rules 1.8.1 and 1.7. Comment A lawyer may lawfully participate in a transaction involving a probate proceeding which concerns a client by following the process described in Probate Code sections 9880-9885. These provisions, which permit what would otherwise be impermissible self-dealing by specific submissions to and approval by the courts, must be strictly followed in order to avoid violation of this rule. Rule 1.8.10 Sexual Relations With Current Client (

a) A lawyer shall not engage in sexual relations with a current client who is not the lawyer ’s spouse or registered domestic partner, unless a consensual sexual relationship existed between them when the lawyer-client relationship commenced.

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 22 (

b) For purposes of this rule, “sexual relations” means sexual intercourse or the touching of an intimate part of another person* for the purpose of sexual arousal, gratification, or abuse. (

c) If a person* other than the client alleges a violation of this rule, no Notice of Disciplinary Charges may be filed by the State Bar against a lawyer under this rule until the State Bar has attempted to obtain the client ’s statement regarding, and has considered, whether the client would be unduly burdened by further investigation or a charge.

Comment [1] Although this rule does not apply to a consensual sexual relationship that exists when a lawyer-client relationship commences, the lawyer nevertheless must comply with all other applicable rules. (See, e.g., rules 1.1, 1.7, and 2.1.) [2] When the client is an organization, this rule applies to a lawyer for the organization (whether inside counsel or outside counsel) who has sexual relations with a constituent of the organization who supervises, directs or regularly consults with that lawyer concerning the organization’s legal matters. (See rule 1.13.) [3] Business and Professions Code

section 6106.9, including the requirement that the complaint be verified, applies to charges under subdivision (

a) of that section. This rule and the statute impose different obligations. Rule 1.8.11 Imputation of Prohibitions Under Rules 1.8.1 to 1.8.9 While lawyers are associated in a law firm,* a prohibition in rules 1.8.1 through 1.8.9 that applies to any one of them shall apply to all of them. Comment A prohibition on conduct by an individual lawyer in rules 1.8.1 through 1.8.9 also applies to all lawyers associated in a law firm* with the personally prohibited lawyer.

For example, one lawyer in a law firm* may not enter into a business transaction with a client of another lawyer associated in the law firm* without complying with rule 1.8.1, even if the first lawyer is not personally involved in the representation of the client. This rule does not apply to rule 1.8.10 since the prohibition in that rule is personal and is not applied to associated lawyers. Rule 1.9 Duties to Former Clients (

a) A lawyer who has formerly represented a client in a matter shall not thereafter represent another person* in the same or a substantially related matter in which that person ’s* interests are materially adverse to the interests of the former client unless the former client gives informed written consent.* (

b) A lawyer shall not knowingly* represent a person* in the same or a substantially related matter in which a firm* with which the lawyer formerly was associated had previously represented a client (1) whose interests are materially adverse to that person;* and (2) about whom the lawyer had acquired information protected by Business and Professions Code

section 6068, subdivision (

e) and rules 1.6 and 1.9(

c) that is material to the matter; unless the former client gives informed written consent.*

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 23 (

c) A lawyer who has formerly represented a client in a matter or whose present or former firm* has formerly represented a client in a matter shall not thereafter: (1) use information protected by Business and Professions Code

section 6068, subdivision (

e) and rule 1.6 acquired by virtue of the representation of the former client to the disadvantage of the former client except as these rules or the State Bar Act would permit with respect to a current client, or when the information has become generally known;* or (2) reveal information protected by Business and Professions Code

section 6068, subdivision (

e) and rule 1.6 acquired by virtue of the representation of the former client except as these rules or the State Bar Act permit with respect to a current client. Comment [1] After termination of a lawyer-client relationship, the lawyer owes two duties to a former client. The lawyer may not (

i) do anything that will injuriously affect the former client in any matter in which the lawyer represented the former client, or (ii) at any time use against the former client knowledge or information acquired by virtue of the previous relationship. (See Oasis West Realty, LLC v. Goldman (2011) 51 Cal.4th 811 [124 Cal.Rptr.3d 256]; Wutchumna Water Co. v. Bailey (1932) 216 Cal. 564 [15 P.2d 505].) For example, (

i) a lawyer could not properly seek to rescind on behalf of a new client a contract drafted on behalf of the former client and (ii) a lawyer who has prosecuted an accused person* could not represent the accused in a subsequent civil action against the government concerning the same matter. (See also Bus. & Prof.

Code, § 6131; 18 U.S.C. § 207(a).) These duties exist to preserve a client ’s trust in the lawyer and to encourage the client’s candor in communications with the lawyer. [2] For what constitutes a “matter” for purposes of this rule, see rule 1.7(e). [3] Two matters are “the same or substantially relat ed” for purposes of this rule if they involve a substantial* risk of a violation of one of the two duties to a former client described above in Comment [1]. For example, this will occur: (

i) if the matters involve the same transaction or legal dispute or other work performed by the lawyer for the former client; or (ii) if the lawyer normally would have obtained information in the prior representation that is protected by Business and Professions Code

section 6068, subdivision (

e) and rule 1.6, and the lawyer would be expected to use or disclose that information in the subsequent representation because it is material to the subsequent representation. [4] Paragraph (

b) addresses a lawyer ’s duties to a client who has become a former client because the lawyer no longer is associated with the law firm* that represents or represented the client. In that situation, the lawyer has a conflict of interest only when the lawyer involved has actual knowledge of information protected by Business and Professions Code

section 6068, subdivision (

e) and rules 1.6 and 1.9(c). Thus, if a lawyer while with one firm* acquired no knowledge or information relating to a particular client of the firm,* and that lawyer later joined another firm,* neither the lawyer individually nor lawyers in the second firm* would violate this rule by representing another client in the same or a related matter even though the interests of the two clients conflict. See rule 1.10(

b) for the restrictions on lawyers in a firm* once a lawyer has terminated association with the firm.* [5] The fact that information can be discovered in a public record does not, by itself, render that information generally known* under paragraph (c). (See, e.g., In the Matter of Johnson (Review Dept. 2000) 4 Cal. State Bar Ct. Rptr. 179.) [6] With regard to the effectiveness of an advance consent, see rule 1.7, Comment [9]. With regard to imputation of conflicts to lawyers in a firm* with which a lawyer is or was formerly associated, see rule 1.10. Current and former government lawyers must comply with this rule to the extent required by rule 1.11.

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 24 Rule 1.10 Imputation Of Conflicts Of Interest: General Rule (

a) While lawyers are associated in a firm,* none of them shall knowingly* represent a client when any one of them practicing alone would be prohibited from doing so by rules 1.7 or 1.9, unless (1) the prohibition is based on a personal interest of the prohibited lawyer and does not present a significant risk of materially limiting the representation of the client by the remaining lawyers in the firm;* or (2) the prohibition is based upon rule 1.9(

a) or (

b) and arises out of the prohibited lawyer ’s association with a prior firm,* and (

i) the prohibited lawyer did not substantially participate in the same or a substantially related matter; (ii) the prohibited lawyer is timely screened* from any participation in the matter and is apportioned no part of the fee therefrom; and (iii) written* notice is promptly given to any affected former client to enable the former client to ascertain compliance with the provisions of this rule, which shall include a description of the screening* procedures employed; and an agreement by the firm* to respond promptly to any written* inquiries or objections by the former client about the screening* procedures. (

b) When a lawyer has terminated an association with a firm,* the firm* is not prohibited from thereafter representing a person* with interests materially adverse to those of a client represented by the formerly associated lawyer and not currently represented by the firm,* unless: (1) the matter is the same or substantially related to that in which the formerly associated lawyer represented the client; and (2) any lawyer remaining in the firm* has information protected by Business and Professions Code

section 6068, subdivision (

e) and rules 1.6 and 1.9(

c) that is material to the matter. (

c) A prohibition under this rule may be waived by each affected client under the conditions stated in rule 1.7. (

d) The imputation of a conflict of interest to lawyers associated in a firm* with former or current government lawyers is governed by rule 1.11. Comment [1] In determining whether a prohibited lawyer ’s previously participation was substantial,* a number of factors should be considered, such as the lawyer’s level of responsibility in the prior matter, the duration of the lawyer’s participation, the extent to which the lawyer advised or had personal contact with the former client, and the extent to which the lawyer was exposed to confidential information of the former client likely to be material in the current matter. [2] Paragraph (

a) does not prohibit representation by others in the law firm* where the person* prohibited from involvement in a matter is a nonlawyer, such as a paralegal or legal secretary. Nor does paragraph (

a) prohibit representation if the lawyer is prohibited from acting because of events before the person* became a lawyer, for example, work that the person* did as a law student. Such persons,* however, ordinarily must be screened* from any personal participation in the matter. (See rules 1.0.1(

k) and 5.3.)

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 25 [3] Paragraph (a)(2)(ii) does not prohibit the screened* lawyer from receiving a salary or partnership share established by prior independent agreement, but that lawyer may not receive compensation directly related to the matter in which the lawyer is prohibited. [4] Where a lawyer is prohibited from engaging in certain transactions under rules 1.8.1 through 1.8.9, rule 1.8.11, and not this rule, determines whether that prohibition also applies to other lawyers associated in a firm* with the personally prohibited lawyer. [5] The responsibilities of managerial and supervisory lawyers prescribed by rules 5.1 and 5.3 apply to screening* arrangements implemented under this rule. [6] Standards for disqualification, and whether in a particular matter (1) a lawyer ’s conflict will be imputed to other lawyers in the same firm,* or (2) the use of a timely screen* is effective to avoid that imputation, are also the subject of statutes and case law. (See, e.g., Code Civ.

Proc., § 128, subd. (a)(5); Pen. Code, § 1424; In re Charlisse C. (2008) 45 Cal.4th 145 [84 Cal.Rptr.3d 597]; Rhaburn v. Superior Court (2006) 140 Cal.App.4th 1566 [45 Cal.Rptr.3d 464]; Kirk v. First American Title Ins. Co. (2010) 183 Cal.App.4th 776 [108 Cal.Rptr.3d 620].) Rule 1.11 Special Conflicts of Interest for Former and Current Government Officials and Employees (

a) Except as law may otherwise expressly permit, a lawyer who has formerly served as a public official or employee of the government: (1) is subject to rule 1.9(c); and (2) shall not otherwise represent a client in connection with a matter in which the lawyer participated personally and substantially as a public official or employee, unless the appropriate government agency gives its informed written consent* to the representation. This paragraph shall not apply to matters governed by rule 1.12(a). (

b) When a lawyer is prohibited from representation under paragraph (a), no lawyer in a firm* with which that lawyer is associated may knowingly* undertake or continue representation in such a matter unless: (1) the personally prohibited lawyer is timely screened* from any participation in the matter and is apportioned no part of the fee therefrom; and (2) written* notice is promptly given to the appropriate government agency to enable it to ascertain compliance with the provisions of this rule (

c) Except as law may otherwise expressly permit, a lawyer who was a public official or employee and, during that employment, acquired information that the lawyer knows* is confidential government information about a person,* may not represent a private client whose interests are adverse to that person* in a matter in which the information could be used to the material disadvantage of that person.* As used in this rule, the term “confidential government information” means information that has been obtained under governmental authority, that, at the time this rule is applied, the government is prohibited by law from disclosing to the public, or has a legal privilege not to disclose, and that is not otherwise available to the public.

A firm* with which that lawyer is associated may undertake or continue representation in the matter only if the personally prohibited lawyer is timely screened* from any participation in the matter and is apportioned no part of the fee therefrom. (

d) Except as law may otherwise expressly permit, a lawyer currently serving as a public official or employee:

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 26 (1) is subject to rules 1.7 and 1.9; and (2) shall not: (

i) participate in a matter in which the lawyer participated personally and substantially while in private practice or nongovernmental employment, unless the appropriate government agency gives its informed written consent;* or (ii) negotiate for private employment with any person* who is involved as a party, or as a lawyer for a party, or with a law firm* for a party, in a matter in which the lawyer is participating personally and substantially, except that a lawyer serving as a law clerk to a judge, other adjudicative officer or arbitrator may negotiate for private employment as permitted by rule 1.12(

b) and subject to the conditions stated in rule 1.12(b). Comment [1] Rule 1.10 is not applicable to the conflicts of interest addressed by this rule. [2] For what constitutes a “matter” for purposes of this rule, see rule 1.7(e). [3] Paragraphs (a)(2) and (d)(2) apply regardless of whether a lawyer is adverse to a former client. Both provisions apply when the former public official or employee of the government has personally and substantially participated in the matter. Personal participation includes both direct participation and the supervision of a subordinate’s participation.

Substantial* participation requires that the lawyer ’s involvement be of significance to the matter. Participation may be substantial* even though it is not determinative of the outcome of a particular matter. However, it requires more than official responsibility, knowledge, perfunctory involvement, or involvement on an administrative or peripheral issue. A finding of substantiality should be based not only on the effort devoted to the matter, but also on the importance of the effort.

Personal and substantial* participation may occur when, for example, a lawyer participates through decision, approval, disapproval, recommendation, investigation or the rendering of advice in a particular matter. [4] By requiring a former government lawyer to comply with rule 1.9(c), paragraph (a)(1) protects information obtained while working for the government to the same extent as information learned while representing a private client. This provision applies regardless of whether the lawyer was working in a “legal” capacity.

Thus, information learned by the lawyer while in public service in an administrative, policy, or advisory position also is covered by paragraph (a)(1). [5] Paragraph (

c) operates only when the lawyer in question has actual knowledge of the information; it does not operate with respect to information that merely could be imputed to the lawyer. [6] When a lawyer has been employed by one government agency and then moves to a second government agency, it may be appropriate to treat that second agency as another client for purposes of this rule, as when a lawyer is employed by a city and subsequently is employed by a federal agency. Because conflicts of interest are governed by paragraphs (

a) and (b), the latter agency is required to screen* the lawyer. Whether two government agencies should be regarded as the same or different clients for conflict of interest purposes is beyond the scope of these rules. (See rule 1.13, Comment [6]; see also Civil Service Commission v. Superior Court (1984) 163 Cal.App.3d 70, 76-78 [209 Cal.Rptr. 159].) [7] Paragraphs (

b) and (

c) do not prohibit a lawyer from receiving a salary or partnership share established by prior independent agreement, but that lawyer may not receive compensation directly relating the lawyer’s compensation to the fee in the matter in which the lawyer is personally prohibited from participating.

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 27 [8] Paragraphs (

a) and (

d) do not prohibit a lawyer from jointly representing a private party and a government agency when doing so is permitted by rule 1.7 and is not otherwise prohibited by law. [9] A lawyer serving as a public official or employee of the government may participate in a matter in which the lawyer participated substantially while in private practice or non-governmental employment only if: (

i) the government agency gives its informed written consent* as required by paragraph (d)(2)(i); and (ii) the former client gives its informed written consent* as required by rule 1.9, to which the lawyer is subject by paragraph (d)(1). [10] This rule is not intended to address whether in a particular matter: (

i) a lawyer ’s conflict under paragraph (

d) will be imputed to other lawyers serving in the same governmental agency; or (ii) the use of a timely screen* will avoid that imputation. The imputation and screening* rules for lawyers moving from private practice into government service under paragraph (

d) are left to be addressed by case law and its development. (See City & County of San Francisco v. Cobra Solutions, Inc. (2006) 38 Cal.4th 839, 847, 851- 54 [43 Cal.Rptr.3d 776]; City of Santa Barbara v. Superior Court (2004) 122 Cal.App.4th 17, 26-27 [18 Cal.Rptr.3d 403].) Regarding the standards for recusals of prosecutors in criminal matters, see Penal Code

section 1424; Haraguchi v. Superior Court (2008) 43 Cal. 4th 706, 711-20 [76 Cal.Rptr.3d 250]; and Hollywood v. Superior Court (2008) 43 Cal.4th 721, 727-35 [76 Cal.Rptr.3d 264]. Concerning prohibitions against former prosecutors participating in matters in which they served or participated in as prosecutor, see, e.g., Business and Professions Code

section 6131 and 18 United States Code

section 207(a). Rule 1.12 Former Judge, Arbitrator, Mediator, Or Other Third-Party Neutral (

a) Except as stated in paragraph (d), a lawyer shall not represent anyone in connection with a matter in which the lawyer participated personally and substantially as a judge or other adjudicative officer, judicial staff attorney or law clerk to such a person* or as an arbitrator, mediator, or other third-party neutral, unless all parties to the proceeding give informed written consent.* (

b) A lawyer shall not seek employment from any person* who is involved as a party or as lawyer for a party, or with a law firm* for a party, in a matter in which the lawyer is participating personally and substantially as a judge or other adjudicative officer or as an arbitrator, mediator, or other third party neutral. A lawyer serving as a judicial staff attorney or law clerk to a judge or other adjudicative officer may seek employment from a party, or with a lawyer or a law firm* for a party, in a matter in which the staff attorney or clerk is participating personally and substantially, but only with the approval of the court. (

c) If a lawyer is prohibited from representation by paragraph (a), other lawyers in a firm* with which that lawyer is associated may knowingly* undertake or continue representation in the matter only if: (1) the prohibition does not arise from the lawyer ’s service as a mediator or settlement judge; (2) the prohibited lawyer is timely screened* from any participation in the matter and is apportioned no part of the fee therefrom; and (3) written* notice is promptly given to the parties and any appropriate tribunal* to enable them to ascertain compliance with the provisions of this rule. (

d) An arbitrator selected as a partisan of a party in a multimember arbitration panel is not prohibited from subsequently representing that party.

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 28 Comment [1] Paragraphs (

a) and (

b) apply when a former judge or other adjudicative officer, or a judicial staff attorney or law clerk to such a person,* or an arbitrator, mediator, or other third-party neutral, has personally and substantially participated in the matter. Personal participation includes both direct participation and the supervision of a subordinate ’s participation, as may occur in a chambers with several staff attorneys or law clerks. Substantial* participation requires that the lawyer ’s involvement was of significance to the matter.

Participation may be substantial* even though it was not determinative of the outcome of a particular case or matter. A finding of substantiality should be based not only on the effort devoted to the matter, but also on the importance of the effort. Personal and substantial* participation may occur when, for example, the lawyer participated through decision, recommendation, or the rendering of advice on a particular case or matter.

However, a judge who was a member of a multi-member court, and thereafter left judicial office to practice law, is not prohibited from representing a client in a matter pending in the court, but in which the former judge did not participate, or acquire material confidential information.

The fact that a former judge exercised administrative responsibility in a court also does not prevent the former judge from acting as a lawyer in a matter where the judge had previously exercised remote or incidental administrative responsibility that did not affect the merits, such as uncontested procedural duties typically performed by a presiding or supervising judge or justice.

The term “adjudicative officer” includes such officials as judges pro tempore, referees, and special masters. [2] Other law or codes of ethics governing third-party neutrals may impose more stringent standards of personal or imputed disqualification. (See rule 2.4.) [3] Paragraph (c)(2) does not prohibit the screened* lawyer from receiving a salary or partnership share established by prior independent agreement, but that lawyer may not receive compensation directly related to the matter in which the lawyer is personally prohibited from participating. Rule 1.13 Organization as Client (

a) A lawyer employed or retained by an organization shall conform his or her representation to the concept that the client is the organization itself, acting through its duly authorized directors, officers, employees, members, shareholders, or other constituents overseeing the particular engagement. (

b) If a lawyer representing an organization knows* that a constituent is acting, intends to act or refuses to act in a matter related to the representation in a manner that the lawyer knows* or reasonably should know* is (

i) a violation of a legal obligation to the organization or a violation of law reasonably* imputable to the organization, and (ii) likely to result in substantial* injury to the organization, the lawyer shall proceed as is reasonably* necessary in the best lawful interest of the organization. Unless the lawyer reasonably believes* that it is not necessary in the best lawful interest of the organization to do so, the lawyer shall refer the matter to higher authority in the organization, including, if warranted by the circumstances, to the highest authority that can act on behalf of the organization as determined by applicable law. (

c) In taking any action pursuant to paragraph (b), the lawyer shall not reveal information protected by Business and Professions Code

section 6068, subdivision (e). (

d) If, despite the lawyer ’s actions in accordance with paragraph (b), the highest authority that can act on behalf of the organization insists upon action, or fails to act, in a manner that is a violation of a legal obligation to the organization or a violation of law reasonably* imputable to the organization, and is likely to result in substantial* injury to the organization, the lawyer shall continue to proceed as is reasonably* necessary in the best lawful interests of the organization. The lawyer ’s response may include the lawyer’s right and, where appropriate, duty to resign or withdraw in accordance with rule 1.16.

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 29 (

e) A lawyer who reasonably believes* that he or she has been discharged because of the lawyer ’s actions taken pursuant to paragraph (b), or who resigns or withdraws under circumstances described in paragraph (d), shall proceed as the lawyer reasonably believes* necessary to assure that the organization’s highest authority is informed of the lawyer’s discharge, resignation, or withdrawal. (

f) In dealing with an organization ’s constituents, a lawyer representing the organization shall explain the identity of the lawyer ’s client whenever the lawyer knows* or reasonably should know* that the organization’s interests are adverse to those of the constituent(

s) with whom the lawyer is dealing. (

g) A lawyer representing an organization may also represent any of its constituents, subject to the provisions of rules 1.7, 1.8.2, 1.8.6, and 1.8.7. If the organization’s consent to the dual representation is required by any of these rules, the consent shall be given by an appropriate official, constituent, or body of the organization other than the individual who is to be represented, or by the shareholders.

Comment The Entity as the Client [1] This rule applies to all forms of private, public and governmental organizations. (See Comment [6].) An organizational client can only act through individuals who are authorized to conduct its affairs. The identity of an organization’s constituents will depend on its form, structure, and chosen terminology. For example, in the case of a corporation, constituents include officers, directors, employees and shareholders. In the case of other organizational forms, constituents include the equivalents of officers, directors, employees, and shareholders.

For purposes of this rule, any agent or fiduciary authorized to act on behalf of an organization is a constituent of the organization. [2] A lawyer ordinarily must accept decisions an organization ’s constituents make on behalf of the organization, even if the lawyer questions their utility or prudence. It is not within the lawyer’s province to make decisions on behalf of the organization concerning policy and operations, including ones entailing serious risk. A lawyer, however, has a duty to inform the client of significant developments related to the representation under Business and Professions Code

section 6068, subdivision (

m) and rule 1.4. Even when a lawyer is not obligated to proceed in accordance with paragraph (b), the lawyer may refer to higher authority, including the organization’s highest authority, matters that the lawyer reasonably believes* are sufficiently important to refer in the best interest of the organization subject to Business and Professions Code

section 6068, subdivision (

e) and rule 1.6. [3] Paragraph (

b) distinguishes between knowledge of the conduct and knowledge of the consequences of that conduct. When a lawyer knows* of the conduct, the lawyer’s obligations under paragraph (

b) are triggered when the lawyer knows* or reasonably should know* that the conduct is (

i) a violation of a legal obligation to the organization, or a violation of law reasonably* imputable to the organization, and (ii) likely to result in substantial* injury to the organization. [4] In determining how to proceed under paragraph (b), the lawyer should consider the seriousness of the violation and its potential consequences, the responsibility in the organization and the apparent motivation of the person* involved, the policies of the organization concerning such matters, and any other relevant considerations. Ordinarily, referral to a higher authority would be necessary.

In some circumstances, however, the lawyer may ask the constituent to reconsider the matter. For example, if the circumstances involve a constituent’s innocent misunderstanding of law and subsequent acceptance of the lawyer ’s advice, the lawyer may reasonably* conclude that the best interest of the organization does not require that the matter be referred to higher authority. If a constituent persists in conduct contrary to the lawyer’s advice, it will be necessary for the lawyer to take steps to have the matter reviewed by a higher authority in the organization.

If the matter is of sufficient seriousness and importance or urgency to the organization, referral to higher authority in the organization may be necessary even

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 30 if the lawyer has not communicated with the constituent. For the responsibility of a subordinate lawyer in representing an organization, see rule 5.2. [5] In determining how to proceed in the best lawful interests of the organization, a lawyer should consider the extent to which the organization should be informed of the circumstances, the actions taken by the organization with respect to the matter and the direction the lawyer has received from the organizational client.

Governmental Organizations [6] It is beyond the scope of this rule to define precisely the identity of the client and the lawyer ’s obligations when representing a governmental agency. Although in some circumstances the client may be a specific agency, it may also be a branch of government or the government as a whole. In a matter involving the conduct of government officials, a government lawyer may have authority under applicable law to question such conduct more extensively than that of a lawyer for a private organization in similar circumstances.

Duties of lawyers employed by the government or lawyers in military service may be defined by statutes and regulations. In addition, a governmental organization may establish internal organizational rules and procedures that identify an official, agency, organization, or other person* to serve as the designated recipient of whistle-blower reports from the organization’s lawyers, consistent with Business and Professions Code

section 6068, subdivision (

e) and rule 1.6. This rule is not intended to limit that authority. Rule 1.14 [Reserved] Rule 1.15 Safekeeping Funds and Property of Clients and Other Persons* (

a) All funds received or held by a lawyer or law firm* for the benefit of a client, or other person* to whom the lawyer owes a contractual, statutory, or other legal duty, including advances for fees, costs and expenses, shall be deposited in one or more identifiable bank accounts labeled “Trust Account” or words of similar import, maintained in the State of California, or, with written* consent of the client, in any other jurisdiction where there is a substantial* relationship between the client or the client ’s business and the other jurisdiction. (

b) Notwithstanding paragraph (a), a flat fee paid in advance for legal services may be deposited in a lawyer’s or law firm’s operating account, provided: (1) the lawyer or law firm* discloses to the client in writing* (

i) that the client has a right under paragraph (

a) to require that the flat fee be deposited in an identified trust account until the fee is earned, and (ii) that the client is entitled to a refund of any amount of the fee that has not been earned in the event the representation is terminated or the services for which the fee has been paid are not completed; and (2) if the flat fee exceeds $1,000.00, the client ’s agreement to deposit the flat fee in the lawyer ’s operating account and the disclosures required by paragraph (b)(1) are set forth in a writing* signed by the client. (

c) Funds belonging to the lawyer or the law firm* shall not be deposited or otherwise commingled with funds held in a trust account except: (1) funds reasonably* sufficient to pay bank charges; and (2) funds belonging in part to a client or other person* and in part presently or potentially to the lawyer or the law firm,* in which case the portion belonging to the lawyer or law firm* must be withdrawn at the earliest reasonable* time after the lawyer or law firm ’s interest in that portion becomes fixed. However, if a client or other person* disputes the lawyer or law

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 31 firm’s right to receive a portion of trust funds, the disputed portion shall not be withdrawn until the dispute is finally resolved. (

d) A lawyer shall: (1) promptly notify a client or other person* of the receipt of funds, securities, or other property in which the lawyer knows* or reasonably should know* the client or other person* has an interest; (2) identify and label securities and properties of a client or other person* promptly upon receipt and place them in a safe deposit box or other place of safekeeping as soon as practicable; (3) maintain complete records of all funds, securities, and other property of a client or other person* coming into the possession of the lawyer or law firm;* (4) promptly account in writing* to the client or other person* for whom the lawyer holds funds or property; (5) preserve records of all funds and property held by a lawyer or law firm* under this rule for a period of no less than five years after final appropriate distribution of such funds or property; (6) comply with any order for an audit of such records issued pursuant to the Rules of Procedure of the State Bar; and (7) promptly distribute, as requested by the client or other person,* any undisputed funds or property in the possession of the lawyer or law firm* that the client or other person* is entitled to receive. (

e) The Board of Trustees of the State Bar shall have the authority to formulate and adopt standards as to what “records” shall be maintained by lawyers and law firms* in accordance with subparagraph (d)(3). The standards formulated and adopted by the Board, as from time to time amended, shall be effective and binding on all lawyers. Standards: Pursuant to this rule, the Board of Trustees of the State Bar adopted the following standards, effective __________, as to what “records” shall be maintained by lawyers and law firms* in accordance with subparagraph (d)(3).

(1) A lawyer shall, from the date of receipt of funds of the client or other person* through the period ending five years from the date of appropriate disbursement of such funds, maintain: (

a) a written* ledger for each client or other person* on whose behalf funds are held that sets forth: (

i) the name of such client or other person;* (ii) the date, amount and source of all funds received on behalf of such client or other person;* (iii) the date, amount, payee and purpose of each disbursement made on behalf of such client or other person;* and

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 32 (iv) the current balance for such client or other person;* (

b) a written* journal for each bank account that sets forth: (

i) the name of such account; (ii) the date, amount and client affected by each debit and credit; and (iii) the current balance in such account; (

c) all bank statements and cancelled checks for each bank account; and (

d) each monthly reconciliation (balancing) of (a), (b), and (c).

(2) A lawyer shall, from the date of receipt of all securities and other properties held for the benefit of client or other person* through the period ending five years from the date of appropriate disbursement of such securities and other properties, maintain a written* journal that specifies: (

a) each item of security and property held; (

b) the person* on whose behalf the security or property is held; (

c) the date of receipt of the security or property; (

d) the date of distribution of the security or property; and (

e) person* to whom the security or property was distributed. Comment [1] Whether a lawyer owes a contractual, statutory or other legal duty under paragraph (

a) to hold funds on behalf of a person* other than a client in situations where client funds are subject to a third-party lien will depend on the relationship between the lawyer and the third-party, whether the lawyer has assumed a contractual obligation to the third person* and whether the lawyer has an independent obligation to honor the lien under a statute or other law. In certain circumstances, a lawyer may be civilly liable when the lawyer has notice of a lien and disburses funds in contravention of the lien. (See Kaiser Foundation Health Plan, Inc. v.

Aguiluz (1996) 47 Cal.App.4th 302 [54 Cal.Rptr.2d 665].) However, civil liability by itself does not establish a violation of this rule. (Compare Johnstone v. State Bar of California (1966) 64 Cal.2d 153, 155-156 [49 Cal.Rptr. 97] [ “‘When an attorney assumes a fiduciary relationship and violates his duty in a manner that would justify disciplinary action if the relationship had been that of attorney and client, he may properly be disciplined for his misconduct. ’”] with Crooks v.

State Bar (1970) 3 Cal.3d 346, 358 [90 Cal.Rptr. 600] [lawyer who agrees to act as escrow or stakeholder for a client and a third-party owes a duty to the nonclient with regard to held funds].) [2] As used in this rule, “advances for fees ” means a payment intended by the client as an advance payment for some or all of the services that the lawyer is expected to perform on the client ’s behalf. With respect to the difference between a true retainer and a flat fee, which is one type of advance fee, see rule 1.5(

d) and (e). Subject to rule 1.5, a lawyer or law firm* may enter into an agreement that defines when or how an advance fee is earned and may be withdrawn from the client trust account. [3] Absent written* disclosure and the client ’s agreement in a writing* signed by the client as provided in paragraph (b), a lawyer must deposit a flat fee paid in advance of legal services in the lawyer ’s trust account.

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 33 Paragraph (

b) does not apply to advance payment for costs and expenses. Paragraph (

b) does not alter the lawyer’s obligations under paragraph (

d) or the lawyer’s burden to establish that the fee has been earned. Rule 1.16 Declining Or Terminating Representation (

a) Except as stated in paragraph (c), a lawyer shall not represent a client or, where representation has commenced, shall withdraw from the representation of a client if: (1) the lawyer knows* or reasonably should know* that the client is bringing an action, conducting a defense, asserting a position in litigation, or taking an appeal, without probable cause and for the purpose of harassing or maliciously injuring any person;* (2) the lawyer knows* or reasonably should know* that the representation will result in violation of these rules or of the State Bar Act; (3) the lawyer ’s mental or physical condition renders it unreasonably difficult to carry out the representation effectively; or (4) the client discharges the lawyer. (

b) Except as stated in paragraph (c), a lawyer may withdraw from representing a client if: (1) the client insists upon presenting a claim or defense in litigation, or asserting a position or making a demand in a non-litigation matter, that is not warranted under existing law and cannot be supported by good faith argument for an extension, modification, or reversal of existing law; (2) the client either seeks to pursue a criminal or fraudulent* course of conduct or has used the lawyer’s services to advance a course of conduct that the lawyer reasonably believes* was a crime or fraud;* (3) the client insists that the lawyer pursue a course of conduct that is criminal or fraudulent;* (4) the client by other conduct renders it unreasonably difficult for the lawyer to carry out the representation effectively; (5) the client breaches a material term of an agreement with, or obligation, to the lawyer relating to the representation, and the lawyer has given the client a reasonable* warning after the breach that the lawyer will withdraw unless the client fulfills the agreement or performs the obligation; (6) the client knowingly* and freely assents to termination of the representation; (7) the inability to work with co-counsel indicates that the best interests of the client likely will be served by withdrawal; (8) the lawyer ’s mental or physical condition renders it difficult for the lawyer to carry out the representation effectively; (9) a continuation of the representation is likely to result in a violation of these rules or the State Bar Act; or (10) the lawyer believes* in good faith, in a proceeding pending before a tribunal,* that the tribunal* will find the existence of other good cause for withdrawal.

RULES OF PROFESSIONAL CONDUCT (effective November 1, 2018) 34 (

c) If permission for termination of a representation is required by the rules of a tribunal,* a lawyer shall not terminate a representation before that tribunal* without its permission. (

d) A lawyer shall not terminate a representation until the lawyer has taken reasonable* steps to avoid reasonably* foreseeable prejudice to the rights of the client, such as giving the client sufficient notice to permit the client to retain other counsel, and complying with paragraph (e). (

e) Upon the termination of a representation for any reason: (1) subject to any applicable protective order, non-disclosure agreement, statute or regulation, the lawyer promptly shall release to the client, at the request of the client, all client materials and property. property. “Client materials and property ” includes correspondence, pleadings, deposition transcripts, experts’ reports and other writings,* exhibits, and physical evidence, whether in tangible, electronic or other form, and other items reasonably* necessary to the client ’s representation, whether the client has paid for them or not; and (2) the lawyer promptly shall refund any part of a fee or expense paid in advance that the lawyer has not earned or incurred.

This provision is not applicable to a true retainer fee paid solely for the purpose of ensuring the availability of the lawyer for the matter. Comment [1] This rule applies, without limitation, to a sale of a law practice under rule 1.17. A lawyer can be s

Document details

Collection	California Superior Local Rules
Citation	CCC-232946
Type	court_rule
Language	en
Format	pdf
Source	CA_LOCAL
Identifier	3e44a6887427cc5d6dc846c28279331ed5c91053

Source file is stored in the law ingest library (pdf).