Failure To Pay Sanctions, Notify Bar, Draws Proposed Suspension

The California State Bar Court Review Department agreed with a hearing judge that a 30-day actual suspension is the appropriate sanction for an attorney’s failure to timely pay a civil sanction and report the sanction to the State Bar.

The court rejected the suggestion that the failure to pay did not violate ethical obligations

Where an attorney is aware that sanctions have been ordered, payment is required within a “reasonable time.” ( In the Matter of Respondent Y (Review Dept. 1998) 3 Cal. State Bar Ct. Rptr. 862, 867.) Anyiam stipulated that he had actual knowledge of the sanctions order on October 14, 2010, but did not pay any portion until October 28, 2013. His failure to pay $4,000 in fees and sanctions for more than three years establishes his culpability under section 6103. (See id. at p. 868 [failure to pay sanctions more than one year after order issued not reasonable and violated § 6103].) Similarly, Anyiam is culpable of failing to timely report the $1,000 judicial sanction because he knew about it when it was imposed, yet he waited more than two years to report it. (See id. at p. 867 [failure to report sanctions three months after respondent learned of order is violation of § 6068, subd. (o)(3)].)

The knowledge element

 Anyiam’s claim that he did not know the order’s due date is contradicted by Ibay’s credible testimony that: (1) the superior court judge announced the 30-day deadline in open court; (2) Ibay faxed Anyiam three demand letters when payment became overdue; (3) Ibay asked for payment of the overdue sanctions and fees during multiple conversations with Anyiam; and (4) Ibay served Anyiam with the OSCs, supporting declaration, and exhibits reciting the 30-day deadline. In addition, the portion of the OSC that Anyiam admits he received clearly states the November 13, 2010 payment deadline…

The court rejected the attorney’s request for a reproval, citing his lack of candor. (Mike Frisch)