halt Victorious on Behalf of California`s legal Consumers - Non

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P r o t e c t i n g t h e r i g h t s o f A m e r i c a’ s L E g al C o n s u m e r s JUne 2011
HALT Victorious on Behalf of California’s Legal Consumers
I
n May, the Regulation, Admissions and
Discipline (RAD) Oversight Committee of the
California Bar voted to post “Consumer Alert”
notices on the profile pages of lawyers accused
of misappropriating $25,000 or more of client
funds. Consumer alert warnings will apply to
new cases of alleged misappropriations, not to
cases that date before May, 2011.
“Once again, the California Bar is leading the way by instituting a practice that not
only holds lawyers accountable, but provides
critical information to unsuspecting legal consumers,” said HALT Executive Director Rodd
Santomauro.
HALT was the only consumer organization
to testify in favor of the proposal at the RAD
meeting in San Francisco on May 13. San-
tomauro testified that charges of misappropriations of client funds of $25,000 or more
should be prominently displayed on the lawyer’s profile page on the Bar’s website. He
also suggested that committee members
adopt the position that all disciplinary charges against attorneys be prominently displayed. “Pending disciplinary information is
currently buried on lawyers’ profile pages,”
HALT’s testimony noted. “Only the most persistent consumer would be able to find it.”
While California, Florida, New Hampshire,
Oregon and West Virginia all publicize a lawyer’s complete discipline history, California is
the first and only state to give consumers a
heads up by posting online “Consumer Alert”
warnings on alleged attorney misconduct.
HALT’s position was not only mentioned
in Chief Trial Counsel James Towery’s April
25 memo in regard to the proposal, but also
struck a positive chord with multiple committee members at the hearing. Accordingly, a subcommittee was formed to further
investigate the navigability issue in regard
to the California Bar’s disciplinary portion
of the website, as well as the possibility of
having additional consumer alerts for other types of disciplinary charges posted online. Several questions posed to Mr. Towery during his testimony centered around
the feasibility of posting consumer alerts for
those attorneys charged with misappropriating less than $25,000 (or any amount of
client funds). HS
HALT Pushes Kansas Commission to Repair Broken Small Claims System
O
n the heels of our recent Small Claims
Report Card, HALT filed written testimony
with the Blue Ribbon Commission of the
Kansas judiciary to increase access to the
state’s small claims court system. Appointed
by the Kansas Supreme Court, the 24-member
panel is conducting an intensive review of
state court operations. HALT advised the
commission to ensure that its review included
the procedures at work in its deteriorating
small claims court system.
While HALT gave Kansas’ small claims
courts good marks on their user-friendly
websites, the state received an appalling D+
when stacked against other jurisdictions. An
exceptionally low dollar limit, inconvenient
hours, the absence of litigant assistance and
the limitations placed on injunctive relief led
to the state’s abysmal standing.
To improve Kansas’ small claims court system, HALT urged the commission to raise the
dollar limit so that more minor disputes can
be resolved through simplified, inexpensive
procedures. The state’s small claims system
recently increased its limit from $1,800 to
$4,000, but the current $4,000 limit remains
one of the lowest in the country.
“The unusually low limit in Kansas means
that consumers who can’t afford lawyers are
frozen out of court altogether in most cases,”
stated Executive Director Rodd Santomauro.
“We hope that the Commission will increase
the dollar limit to $20,000, the cost of a typical automobile.”
In its comments to the Commission, HALT
also encouraged the state’s small claims
courts to offer evening and weekend sessions to allow working Kansans to access
the courts at more convenient hours.
In addition, HALT called the Commission’s attention to the dearth of advisors in
the state’s small claims court system. “With-
out any guidance, people are often not adequately informed of the options available
to them to resolve their legal matters,” explained Suzanne M. Blonder, Of Counsel to
HALT. “Kansas needs to employ individuals who can help litigants navigate the small
claims legal system because they usually are
appearing in court without an attorney.”
Finally, HALT asked the Commission to allow litigants to seek injunctive (non-monetary)
relief in a wide variety of small claims court
cases. HALT’s comments explained that far
more cases would end bitterness between
parties if a judge could issue a court order,
such as repainting a kitchen or redoing a contracting job.
Once the Commission completes its work
by the end of this year, it will recommend actions the court can take on its own authority, as well as actions that may require legislative or constitutional change. HS
California Issues Recommendations for State Bar Governance. See page 3
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t h e H A lt S e n t i n e l — J u n e 2 0 1 1 2
Legal NewsRoundup
Nolo Acquired By Internet Brands
Nolo, the California-based publisher of selfhelp legal books and software, was acquired
by Internet Brands in April. Nolo first opened
its doors in 1971 when little if any legal information existed in the marketplace for
consumers. In 1985, Nolo produced the first
edition of WillMaker—a do-it-yourself willwriting program that the company updates
each year to rave reviews. Nolo’s products, which cover everything from adoption
to drafting revocable living trusts, will continue to be offered after the acquisition. “After four decades of success, we are excited
to see Nolo continue to thrive in the hands of
the Internet Brands team,” said Nolo executive chairman and co-founder Jake Warner.
CA Small Claims Bill Moves to the Assembly
Senator Joe Simitian introduced legislation (SB221) that passed the senate and is
now under review by the Assembly Judiciary Committee. If signed into law, it will increase the jurisdictional limit from $7,500
to $10,000. This is not the Senator’s first
experience with small claims reform. During
the 2005 legislative session, Senator Simi-
the
HALTSentinel
Theresa Meehan Rudy, Editor
Christopher McGee, Art Director
HALT BOARD OF DIRECTORS
Conrad Martin (Chair), Fund for Constitutional
Government; Danielle Brian, Project on Government
Oversight; Katherine S. Broderick, Dean, UDC
David A. Clarke School of Law; Louis A. Clark,
Government Accountability Project; Catherine EliasJermany, National Self-Help Law Project; Sally
Greenberg (Co-chair), National Consumers League
The HALT Sentinel, ©2011, HALT — Simple, Affordable,
Accountable, Justice for All. All rights reserved.
No part of this publication may be reprinted
without the permission of HALT. Anyone contributing
$30 or more per year to support HALT will receive
The HALT Sentinel free of charge. Contributions are
tax-deductible and should be made payable to HALT.
HALT, 1612 K Street, NW, Suite 1102,
Washington, DC 20006
Telephone: (202) 887-8255
Fax: (202) 887-9699
Website: www.halt.org
E-mail: [email protected]
tian was successful in introducing and passing a similar bill that increased the small
claims limit from $5,000 to $7,500.
LegalZoom’s Will Upheld
The son of Sammy Davis Jr. will inherit his
father’s multi-million dollar estate thanks to
a LegalZoom will obtained by his mother Altovise Davis. The widowed Mrs. Davis purchased the LegalZoom will after a fall out with
business partners who were set to inherit her
entire estate under a different will. In the
May 3, 2010 decision, Los Angeles County Probate Judge Reva Goetz ruled that LegalZoom’s will was legal and enforceable. “I
think that full weight should be given to the
document as an expression of Mrs. Davis’s
intent with regard to her estate and what she
wanted to happen to it,” Goetz ruled.
Michigan Considers Small Claims Reform
On March 16, Senator Tonya Schuitmaker introduced bill SB269 to increase the
state’s small claims court jurisdictional limit
from $3,000 to $10,000. The bill is currently pending its first reading in the Judiciary
Committee. While HALT advocates nationwide for a small claims limit of $20,000, the
efforts of the Michigan legislature to raise
its small claims limit, if successful, will have
a positive impact on Michiganders – especially those who cannot afford to hire a lawyer to take their case to court. There are six
other states currently undertaking similar reform efforts.
Judge Forced to Retire…Eventually
On May 18, the South Dakota Supreme
Court ordered 7th Circuit Judge A.P. “Pete”
Fuller to accept a six-month, no pay suspension and indefinite probation or retire immediately for persistent, reprehensible courtroom behavior. It didn’t take Judge Fuller
too long to decide that accepting the probation agreement would be too costly. According to an Associated Press report, Fuller estimated facing nearly $175,000 in legal
fees, court costs and lost income. He will retire and return to private practice. HS
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Kentuckians May Report
Attorney Abuses Without Fear
K
entuckians owe a debt of gratitude to
the state Supreme Court for finally striking down a rule in April that had long intimidated legal consumers from filing complaints
against incompetent and dishonest lawyers.
On April 21, the Kentucky Supreme Court
ruled that statements made by clients in official bar complaints against attorneys cannot
be used against them in court by lawyers alleging defamation or slander.
For 33 years, our organization has heard
from Kentucky citizens who have been reluctant to file a complaint against an attorney,
for fear of retaliation by that attorney. Today, clients in Kentucky may file complaints
freely without concern about being sued for
making allegations against a lawyer who has
harmed them or their case. The days of bullying consumers from filing legitimate grievances against attorneys are over.
Unfortunately, there are still at least 19
states where a lawyer may sue the complainant (as well as third-party witnesses) for information provided in attorney grievances and investigations. HALT believes that clients and
witnesses should be granted immunity from
civil liability for any information given to the
agency during a disciplinary investigation. Until
then, the cries of many injured legal consumers will be silenced by the fear of retaliation. HS
2011 Summer Interns
H
ALT welcomes two interns this summer: Sushma Raju, a rising senior at
Northwestern University, is pursuing a double
major in journalism and legal studies. Spencer Sood, also a rising senior, is pursuing a
double major in Political Science and History.
Ana Pupo (not pictured) will attend Duke Law
School in the fall. HS
Spencer Sood
and Sushma Raju
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t h e H A lt S e n t i n e l — J u n e 2 0 1 1 3
California Issues Recommendations for State Bar Governance
O
n May 15, the State Bar of California’s
Governance in the Public Interest Task
Force submitted its final report to the state’s
Supreme Court, governor and the Senate
and Assembly judiciary committees. The
Task Force’s report contains dueling recommendations (a majority and a minority report) on how best to improve the bar’s governance structure.
In testimony provided to the Task Force in
January, HALT expressed concern over how
people get on the bar’s governance board
(members are currently elected by state bar
members) and encouraged an increase in
the number of seats allocated to nonlawyers.
Given the important role the state bar
plays in the licensing and discipline of California lawyers, HALT Executive Director Rodd
Santomauro urged the Task Force to back
improvements to the state’s disciplinary system as well, including ending private discipline, increasing transparency through disclosure of all discipline matters and embracing more effective punishments, such as
permanent disbarments.
While both the majority and minority reports suggest ending the practice of having
state bar members elect board members,
the dueling reports differ on the size and
compositions of the governance board and
on how people are selected to serve.
Although both recommend keeping a majority of lawyer board members, the minority report states, “During the course of our
meetings and public hearings, we heard no
reason why attorneys or their profession are
so unique that the Bar’s oversight should be
so top heavy with its own members.”
It recommends a smaller 15-person board
that actually increases the percentage of nonlawyer members by reducing the number of
lawyer members. The majority report keeps
the board at 23 members, with six nonlawyer members.
Sacramento lawmakers weighed in by
proposing a compromise. Their amendment
to the 2012 State Bar fee bill that ultimately
overhauls the bar’s governance structure reduces the number of board members from
23 to 19 members. It was unanimously ap-
proved on the Senate floor and the bill now
goes to the Assembly Judiciary Committee.
While the governance structure may not
change dramatically, HALT’s efforts to improve the state’s discipline system by getting
more nonlawyers involved in the regulation
of lawyers did not fall on deaf ears.
The majority report also contains a recommendation that requires the Regulation, Admission and Discipline (RAD) Oversight Committee
and the Member Oversight Committee (MOC) to
include at least 40 percent public members and
at least one of the Supreme Court appointees.
“The practice of staffing the RAD committee in a way that ensures ample public member participation reflects the high value that
we place upon non-attorneys in our policy deliberations. By adopting a mandatory minimum threshold for public participation on
both RAD and MOC, we propose, in effect, to
demonstrate expressly in our rules the value
we place upon public members’ input. That,
in itself, should send an important message to
the public about how the State Bar does business,” stated the majority report. HS
Setback for Mass. Consumers: Lawyer Participation in Real Estate Closings Required
T
he Massachusettts Supreme Judicial
Court released an advisory opinion (SJC10744) on April 25, that requires real estate
lawyers to be involved in residential closings
but keeps the door open for certain real estate transactions to be conducted by nonlawyers, such as title examinations and the
preparation of mortgage-related forms.
“HALT has long advocated that one of the
solutions to America’s legal access crisis is
expanding the availability of less expensive
legal services provided by nonlawyers,” said
HALT Deputy Director Theresa Meehan Rudy.
“Now Massachusetts residents will be forced
to pay dearly for real estate services that, with
additional options, could be more affordable.”
The ruling in Massachusetts Real Estate
Bar Association v. National Real Estate Information Services, Inc. goes against a growing national trend that allows more substantial participation by nonlawyers in real estate
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closings. It also directly contradicts the position of the U.S. Department of Justice and
the Federal Trade Commission; both agencies have lobbied for years in favor of letting nonlawyers provide real estate closing
services because it creates healthy competition in the marketplace and lowers prices
for consumers.
The legal battle between real estate attorneys and the National Real Estate Information Services Inc., a Pennsylvania-based
consulting company that provides title, insurance and settlement services began in 2006.
The Massachusetts Real Estate Bar Association (REBA) sued the consulting company in
court for performing services they believed
violated the state’s unauthorized practice of
law statute. REBA maintains that the company often uses out-of-state “robo-attorneys” or “notaries” to witness closings but
the people they send often have little to no
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knowledge of the transaction before them.
In 2009, a U.S. District Court ruled in favor
of National Real Estate Information Services,
but in 2010 that decision was vacated by the
U.S. Court of Appeals for the First Circuit and
sent to the Massachusetts Supreme Judicial
Court for consideration.
In their decision, the Court addressed
the issue of what constitutes the unauthorized practice of law and said certain administrative functions and transactions, such
as the preparation of title abstracts, settlement statements and other mortgage related
forms do not generally constitute the practice of law. HS
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t h e H A lt S e n t i n e l — J u n e 2 0 1 1 4
Dear HALT,
Book Sale
I renewed my membership in March, but just
received another renewal notice telling me I
haven’t renewed. Why is that?
Frustrated in Framingham
To purchase any of the titles listed, mail in the
Publication Order Form along with a check, money
order or your credit card information to: HALT, 1612
K Street NW, Suite 1102, Washington, DC 20006. Or,
if it’s more convenient, call us toll-free at (888) 3674258 and charge your order. Please allow 4-6 weeks
for delivery. DC residents add 6% sales tax.
Keep Sending Us Those Email Addresses…
A
growing number of HALT members have
responded that they want to receive The
HALT Sentinel by email instead of by regular mail! It’s simple. Just send your name,
member number and or mailing address to
[email protected]. Please write “The HALT
Sentinel by email” in the subject line. If you
have already notified us, you do not need to
send another email. Thanks! HS
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Non-profit
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The Executor’s Guide Everything you need to
know if you’ve been named as an executor or
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a month and what can wait until later. $34.99
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Learn from the mistakes of others so you can
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you can craft a will that meets all of your
estate planning needs. $21.99
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An Organization of
Americans for Legal Reform
1612 K Street, NW • Suite 1102
Washington, DC 20006
Dear Frustrated:
Our apologies for the inconvenience. HALT
uses a calendar year renewal system, where
all members are asked to renew their membership for the following year at the same
time. We start our renewal program in November and ask you to renew then. If you do not
respond to that mailing, we follow up with several other renewal notices giving you several
chances to renew your membership. It looks
like your contribution crossed in the mail with
our next renewal notice. Please just ignore the
latest notice you received from us and rest assured that no more renewal notices will go out
to you until November of this year. HS
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