California Malpractice Disclosure Rule Moves Forward

The California Bar Journal reports that the State Bar’s Board of Governors has “finally” approved a malpractice insurance disclosure rule. The web summary notes;

By a vote of 16-4, the board accepted a compromise rule of professional conduct that a lawyer who does not carry professional liability insurance must disclose that to a client (a) in writing, (b) at the time of engagement and (c) if the representation exceeds four hours.

The recommendation now goes to the California Supreme Court for approval.

“This proposal should not be troubling to the board,” said bar President Jeff Bleich, adding that the “parade of horribles” suggested by opponents to disclosure has not happened in any state with more aggressive policies.

But John Peterson, a governor from Fresno who favors both a disclosure requirement and posting a lawyer’s insurance status on the bar’s Web site, described the proposed rule as “an unnecessary irritant to the attorney-client relationship.”

And to board members who described the compromise as a half loaf that was better than nothing, he retorted that a “moldy half loaf” was not acceptable.

(Mike Frisch)