Case Name: RICHARD E. KWASNIK, Petitioner, v. THE STATE BAR OF CALIFORNIA, Respondent
Court: Supreme Court of California
Jurisdiction: California
Decision Date: 1990-05-31
Citations: 50 Cal. 3d 1061
Docket Number: No. S010199
Parties: RICHARD E. KWASNIK, Petitioner, v. THE STATE BAR OF CALIFORNIA, Respondent.
Judges: 
Reporter: California Reports
Volume: 50
Pages: 1061–1087

Head Matter:
[No. S010199.
May 31, 1990.]
RICHARD E. KWASNIK, Petitioner, v. THE STATE BAR OF CALIFORNIA, Respondent.
Counsel
Richard E. Kwasnik, in pro. per., for Petitioner.
Diane C. Yu, Truitt A. Richey, Jr., and Richard J. Zanassi for Respondent.

Opinion:
Opinion
THE COURT.
Petitioner Richard E. Kwasnik seeks review of the refusal of the State Bar to certify him to this court for admission to the bar on the ground that he lacks the requisite good moral character. (Bus. & Prof. Code, § 6066; Cal. Rules of Court, rule 952(c); Rules Regulating Admission to Practice Law, rule I, § 11.) For the reasons set forth below, we conclude petitioner should be admitted to the bar.
Facts
Petitioner graduated from Brooklyn Law School in June 1966. He was admitted to the practice of law in New York in 1967.
In November 1970 petitioner was involved in an automobile accident that resulted in the death of Steven Smilanich, a husband and father of three children. Although a grand jury investigated the accident, no criminal charges were filed. Petitioner pleaded guilty to "driving while impaired," a traffic infraction, and was fined $50.
The decedent's widow (hereafter Smilanich) and decedent's three minor children filed a wrongful death action against petitioner in a New York court, which resulted in a judgment against him in the amount of $232,234.16 in July 1974. Petitioner's automobile insurance carrier paid the policy limit of $10,000 to Smilanich. In 1975 Smilanich filed attachment proceedings against petitioner to enforce the judgment by garnishing his wages; he previously had made no payments on the judgment. Once he received a notice of levy, petitioner began making payments of approximately $42 every two weeks. Between 1975 and January 1980, petitioner paid $4,685. He has paid nothing since January 1980.
In November 1980, after Smilanich's attorney rejected a settlement offer of $15,000, petitioner filed a petition for bankruptcy in the United States Bankruptcy Court for the Southern District of Florida. (See Florida Bd. of Bar Examiners Re: Kwasnik (Fla. 1987) 508 So.2d 338, 339 (hereafter Kwasnik).) The only debt scheduled for discharge in the bankruptcy petition was the Smilanich judgment; petitioner listed none of his other then-existing debts. The Smilanich judgment was discharged by the bankruptcy court in March 1981.
A. Florida Bar Proceedings
In response to petitioner's 1979 application to the Florida State Bar, the Florida Bar Examiners (Florida Bar) found that he failed to meet the standards of conduct and fitness and concluded that he should be denied admission. In a 1980 hearing regarding petitioner's admission to the Florida State Bar, he was charged with three instances of wrongful conduct that he does not dispute. First, in a deposition taken during the wrongful death suit, petitioner testified falsely that he had no joint interest in any checking account or other item of personal property. In fact, he was a signatory on a joint account with his wife at the time. Second, in his Florida State Bar application petitioner stated that following the wrongful death judgment $10,000 was paid to Smilanich, "which represented all the assets available," and that he paid approximately $1,200 per year toward the judgment. He concluded, "I fully intend to continue all payments in the future." Actually, petitioner paid as much as $1,200 only in 1979, and completely stopped payment in January 1980, five months after filing the application. In addition, the record suggests that other assets were available to petitioner. Third, after petitioner moved to Florida in February 1980 he earned $27,000 per year, yet refused to make any further payments under the judgment after January 1980. The record suggests that petitioner discontinued the payments because of a Florida statute that exempts salaries from garnishment. Petitioner was denied admission to the Florida Bar in 1980. In February 1981 the Florida Supreme Court denied his petition for review.
In March 1983, petitioner applied for reevaluation. Because he did not pay the required deposit until April 1986, it was not until January 1987 that the Florida Bar again found that petitioner failed to meet the moral character requirements. In June 1987, however, the Florida Supreme Court rejected the Florida Bar's recommendation, holding that petitioner met the moral character requirements and ordering that he be admitted on passing the Florida Bar Examination. The court noted that he had already been denied admission because of the aforementioned three instances of misconduct. (Kwasnik, supra, 508 So.2d at p. 339.) Accordingly, it focused on whether the Florida Bar could deny petitioner admission for failing to make any effort after bankruptcy to provide assistance to the Smilanich family, although he had no legal obligation to do so. (Ibid.) It held that because the bankruptcy laws were designed to provide a fresh start for those who are overburdened with debt, it could not allow any continuing moral obligation to the Smilanich family to be considered in his petition for admission to the Florida State Bar. (Ibid.) The court further noted that petitioner had performed as a "competent" lawyer working at modest pay for the New York Legal Aid Society and otherwise had led an "exemplary life" since his first application in Florida. Accordingly, the court held he had demonstrated sufficient rehabilitation to qualify for admission. (Id. at p. 340.) In May 1988 petitioner was admitted to the practice of law in Florida.
B. California Bar Proceedings
In July 1987 petitioner passed the Attorney's Examination of the California Bar Examination. His certification to practice was delayed, however, pending a moral character investigation. In June 1988 a formal hearing was held before a three-member hearing panel of the State Bar Court. Prior to the hearing petitioner entered a stipulation of facts with the State Bar. The hearing panel found that he had sustained his burden of proof that he is of good moral character and recommended that he be admitted to the California Bar.
Pursuant to a request for reconsideration, the hearing panel again recommended that he be admitted to the practice of law and issued a finding of facts that closely tracked the stipulation between the parties. First, it concluded that petitioner's description on his California Bar application of the disposition of the Smilanich suit as a "verdict for defendant" was not an intentional misstatement made to deceive. Second, it found that he accepted full responsibility for the three acts considered by the Florida Bar. Third, it concluded that the discharge of the Smilanich judgment in bankruptcy discharged both the legal and moral obligations of petitioner. Finally, it noted that except for the Smilanich matter petitioner's record is unblemished; that his conduct, as evidenced by the testimonial letters he submitted, established he is of a good moral character; and that he has an excellent reputation in the community for honesty, reliability, fairness and integrity. The hearing panel concluded that if he were admitted to the practice of law petitioner would be able to meet the professional and fiduciary duties of his practice.
The Review Department of the State Bar Court (hereafter the review department), however, made its own findings and disagreed with the hearing panel's conclusions. First, the review department detailed certain circumstances attendant on petitioner's bankruptcy: (1) between 1975 and 1979, when Kwasnik made payments only pursuant to garnishment proceedings, he earned an annual salary of between $15,000 and $32,000, totaling at least $100,000, while living rent-free at his mother's home and putting his wife through five years of college; and (2) petitioner misled Smilanich's attorney in 1980 by expressing an intention to take a one-year leave of absence when he had already accepted a new job in Florida.
Second, the review department cited a report issued by the Florida Bar after a formal rehabilitation hearing held in November 1986 on petitioner's application for reevaluation. The Florida Bar found that petitioner had taken no steps to fulfill his moral obligation to Smilanich since 1980. It noted that he had neither contacted the survivors nor made any further payment to them, despite the fact that he and his wife earned a combined income of $90,000 and owned $225,000 of equity in a home valued at $250,000. In addition, the review department noted that the Florida Bar found petitioner to be less than candid at the rehabilitation hearing, especially when asked why his New York home was in his wife's name.
Finally, the review department concluded that petitioner had demonstrated a lack of good moral character by failing to accept "any responsibility whatsoever for the Smilanich family which was victimized by his drunken driving." It found he ignored the rights of the Smilanich family under the wrongful death judgment until after garnishment proceedings were instituted, and then paid only the minimum in order to avoid the wage garnishment. Accordingly, in March 1989 the review department, by a vote of 11 to 4, found that petitioner did not possess the requisite good moral character and recommended that he not be admitted to the practice of law in California. The four members voting for petitioner's admission noted that the finding of lack of good moral character was based entirely on his failure to honor a moral obligation to pay a wrongful death judgment discharged in bankruptcy. They concluded petitioner should be admitted because he had successfully established his good moral character by his practice of law in sister jurisdictions and the attestations of judges and lawyers.
Discussion
This court may admit to the practice of law any applicant whose qualifications have been certified to it by the Committee of Bar Examiners (hereafter the Committee). (Bus. & Prof. Code, § 6064.) To qualify, an applicant must, among other things, be of "good moral character." (Id., § 6060, subd. (b).)
"Good moral character" has traditionally been defined in California as the " 'absence of proven conduct or acts which have been historically considered as manifestations of "moral turpitude." ' " (Hallinan v. Committee of Bar Examiners (1966) 65 Cal.2d 447, 452 [55 Cal.Rptr. 228, 421 P.2d 76] (hereafter Hallinan).') Good moral character also is defined statutorily to include "qualities of honesty, fairness, candor, trustworthiness, observance of fiduciary responsibility, [observance] of the laws of the state and the nation and respect for the rights of others and for the judicial process." (Rule X, § 101(a); Pacheco v. State Bar (1987) 43 Cal.3d 1041, 1046 [239 Cal.Rptr. 897, 741 P.2d 1138] (hereafter Pacheco).)
Because the commission of an act constituting "moral turpitude" is a statutory ground for disbarment (Bus. & Prof. Code, § 6106) and is perhaps the most frequent subject of inquiry in disciplinary proceedings, "insofar as the scope of inquiry is concerned, the distinction between admission and disciplinary proceedings is today more apparent than real." (Hallinan, supra, 65 Cal.2d at p. 452.) The common issue is whether the applicant for admission or the attorney sought to be disciplined "is a fit and proper person to be permitted to practice law, and that usually turns upon whether he has committed or is likely to continue to commit acts of moral turpitude." (Id. at p.453; cf. Seide v. Committee of Bar Examiners (1989) 49 Cal.3d 933, 938 [264 Cal.Rptr. 361, 782 P.2d 602].)
The burden is on the applicant to prove good moral character. (Hallinan, supra, 65 Cal.2d at p. 451.) If he is successful, the Committee must rebut that showing with evidence of bad character. (Hightower v. State Bar (1983) 34 Cal.3d 150, 155 [193 Cal.Rptr. 153, 666 P.2d 10].) Any applicant who is denied certification may seek review of the Committee's action in this court. (Bus. & Prof. Code, § 6066; Cal. Rules of Court, rule 952(c); Rules Regulating Admission to Practice Law, rule I, § 11; Pacheco, supra, 43 Cal.3d at p. 1047.) In that review we give great weight to the Committee's findings, but they are not conclusive. We examine the evidence and make our own determination as to its sufficiency (Hightower, supra, 34 Cal.3d at pp. 155-156), resolving reasonable doubt in favor of the applicant. (Hallinan, supra, 65 Cal.2d at pp. 450-451.)
Petitioner contends he has established his rehabilitation and good moral character. We agree. Petitioner introduced fifteen letters attesting to his character: seven from judges before whom he had appeared, seven from attorneys with whom he had practiced, and one from a pastor with whom he had worked on an interfaith council. The letters praise petitioner's personal and professional integrity and his reputation both as a competent trial attorney and as a member of the community.
Traditionally we have accorded significant weight to testimonials submitted by attorneys and judges regarding an applicant's moral fitness, on the assumption that such persons possess a keen sense of responsibility for the integrity of the legal profession. (Pacheco, supra, 43 Cal.3d at p. 1053.) This is especially true when, as here, the references are aware of the circumstances that prompted the inquiry into the applicant's moral character. (Ibid.; cf. Rules Proc. of State Bar, div. V, Stds. for Atty. Sanctions for Prof. Misconduct, std. 1.2(e)(vi).) Petitioner testified that eight of the letters he submitted with his California application were written on his behalf in 1983 for his second application to the Florida Bar and that he was required by the Florida State Bar to inform the references of his bankruptcy and misconduct before the letters would be accepted. In fact, petitioner testified that all but three of the references knew of the allegations in this case when they wrote their letters.
In addition, the hearing panel and the review department both recognized that except for the events surrounding the wrongful death action, petitioner has an "unblemished record"; this is true not only of certain litigation in which petitioner was a party, in which his conduct did "not reflect badly on his moral character," but also of a 20-year period as a practicing member of the New York Bar, during which time he was never the subject of a disciplinary proceeding. Whether or not all petitioner's activities for which his superiors at the New York Legal Aid Society lauded him were simply part of his responsibilities, e.g., training and advising younger attorneys, there is extensive evidence that he acted diligently in that capacity. In addition, petitioner served competently in a fiduciary role as trustee of a $400,000 trust established by the City of New York for petitioner's parapalegic cousin; the Associate General Counsel of New York City who was in charge of that trust also submitted a letter on petitioner's behalf. Finally, as noted above, the Florida Supreme Court determined on the same evidence that petitioner was of good moral character and admitted him to the Florida Bar.
Business and Professions Code section 6106 states that an act of moral turpitude, dishonesty, or corruption constitutes a cause for disbarment or suspension of an attorney, regardless of whether the act is committed in his capacity as an attorney. Because the misconduct in this case is not in any way related to petitioner's practice of law, however, we should accord it less weight than we would professional misconduct in evaluating his moral fitness for admission to the bar. (See In re Kreamer (1975) 14 Cal.3d 524, 531 [121 Cal.Rptr. 600, 535 P.2d 728].)
It follows that petitioner presented a prima facie case that he is presently of good moral character. (See, e.g., Greene v. Committee of Bar Examiners (1971) 4 Cal.3d 189, 192 [93 Cal.Rptr. 24, 480 P.2d 976] [prima facie case of applicant's moral character established by evidence of his admission to practice in two other states and by a number of favorable letters of recommendation].)
Petitioner also contends the State Bar improperly denied him certification because he has made no effort to fulfill an asserted moral obligation to the Smilanich family, even though his legal obligation was discharged by his voluntary bankruptcy. Petitioner is correct in reasoning that the State Bar would violate the Bankruptcy Act if its sole reason for denying certification were such a moral obligation to the Smilanich family. (See 11 U.S.C. § 525(a) (hereafter section 525(a)) [governmental unit may not deny a license to a person "solely because" he has not paid a debt that was discharged under the Bankruptcy Act]; Parker v. Contractors State License Board (1986) 187 Cal.App.3d 205, 208-209 [231 Cal.Rptr. 577] [primary purpose of section 525(a) is to prevent the government from conditioning a grant of privilege on the bankrupt's affirmation of certain debts].) In addition, it would be a violation of the supremacy clause of the federal Constitution (U.S. Const., art. VI, cl. 2) to act so as to interfere with or frustrate the purposes of Congress in enacting the Bankruptcy Act (Perez v. Campbell (1971) 402 U.S. 637, 648 [29 L.Ed.2d 233, 241, 91 S.Ct. 1704]; Grimes v. Hoschler (1974) 12 Cal.3d 305, 310 [115 Cal.Rptr. 625, 525 P.2d 65]), i.e., to give debtors a "new opportunity" and a "clear field for future effort" by eliminating preexisting debts (Perez, supra, 402 U.S. at p. 649 [29 L.Ed.2d at p. 242]).
The State Bar maintains the review department did not rely solely on petitioner's discharge of the judgment in bankruptcy to deny petitioner admission to the bar, but also considered the circumstances surrounding the bankruptcy proceedings. As shown below, however, the evidence unrelated to the discharge on which the State Bar relies does not reflect on petitioner's current fitness to practice law in California. By refusing to certify petitioner on the evidence presented, therefore, the review department not only frustrates congressional intent but it violates section 525(a). In so concluding, we in no way condone any intent to evade a wrongful death judgment imposed by a court of equal jurisdiction. Rather, based on the evidence presented of his fitness to practice law and the dictates of the Bankruptcy Act, we only hold that petitioner must be certified for admission to the California Bar.
The evidentiary significance of an applicant's misconduct is greatly diminished by the passage of time and by the absence of similar, more recent misconduct. (Pacheco, supra, 43 Cal.3d at p. 1051; see also Martin B. v. Committee of Bar Examiners (1983) 33 Cal.3d 717, 726 [190 Cal.Rptr. 610, 661 P.2d 160] [passage of nine years with an exemplary record is sufficient to show rehabilitation and to justify admission of an applicant charged with two rapes while serving in the Marine Corps]; Hall v. Committee of Bar Examiners (1979) 25 Cal.3d 730, 742 [159 Cal.Rptr. 848, 602 P.2d 768] ["We are also impressed by the fact that six years have elapsed since the last of the four incidents took place, during which time no complaints of any kind have been lodged" against applicant]; Hallinan, supra, 65 Cal.2d 447, 464 [applicant involved in nine fistfights, six of which were "inexcusable" but occurred at least six years prior to application for admission, held not to bar admission].)
The automobile accident at issue here occurred 20 years ago, in 1970; the wrongful death judgment was entered in 1974; and the judgment was discharged by the bankruptcy court in 1981. All other instances of misconduct listed by the review department took place before the 1980 Florida State Bar proceedings, except for petitioner's purported lack of candor at the November 1986 rehabilitation hearing. In this regard, the record demonstrates petitioner's rehabilitation: there is no suggestion by either the hearing panel or the review department, nor do we find any indication on independent review, that petitioner was anything but candid in the California proceedings. In addition, except for the limited nature of this misconduct, petitioner's record is unblemished. He has never been the subject of a disciplinary proceeding in over 20 years as a practicing attorney. Indeed, on the same evidence the Florida Supreme Court held that petitioner should be admitted to the practice of law in Florida. Petitioner's continued failure to satisfy his "moral obligation" is the only allegation of recent misconduct.
Moreover, petitioner addressed many of the review department's concerns at the June 1988 hearing. First, he explained why he listed only the Smilanich judgment in his bankruptcy schedule: "The interest was increasing greater than any payments I made. I had no money at that time. I lost a job at that time [because of the refusal of the Florida Bar to admit him]. I had to relocate at that time. I had an infant child and a five-year-old child . I felt at that time . . . there would not be any attempt on the part of the plaintiff to ever settle this matter with me." Second, he did not attempt to justify any of his misstatements. Addressing his denial of a joint account with his wife, he said, "There was never any money in the account. I was never hiding any assets. I just was not dealing rationally with [the financial scrutiny] any longer . I was wrong." In addition, while not explaining his lack of candor in responding to questions by the Florida Bar about the title to his house, he did state that the house had been bought with funds inherited by his wife. Addressing his rehabilitation, petitioner relied on his activities while at the New York Legal Aid Society—both teaching younger attorneys and representing career criminals when a "higher prevailing wage" was available for experienced attorneys. In addition, the record indicates petitioner now carries over $1 million in automobile insurance, demonstrating increased financial responsibility.
That the review department considered the circumstances surrounding the bankruptcy proceedings as well as petitioner's discharge of the judgment, therefore, does not mean it can refuse to certify him for admission without violating section 525(a). The circumstances surrounding the 1981 bankruptcy proceedings are so remote in time that they cannot reasonably be said to reflect on petitioner's moral fitness to practice law. The evidence relied on by the State Bar rebuts neither petitioner's prima facie case of good moral character nor his showing of rehabilitation. As a result, the State Bar cannot refuse to certify petitioner for admission without relying solely on the discharged judgment and, thus, violating section 525(a).
Our recent decisions in Brookman v. State Bar (1988) 46 Cal.3d 1004 [251 Cal.Rptr. 495, 760 P.2d 1023] (hereafter Brookman), and Hippard v. State Bar (1989) 49 Cal.3d 1084 [264 Cal.Rptr. 684, 782 P.2d 1140] (hereafter Hippard), are distinguishable. In those cases we were confronted by the discharge in bankruptcy of obligations incurred as the result of attorney misconduct. We held section 525(a) did not forbid consideration of restitution efforts, reasoning that restitution was not imposed "solely because" the attorney failed to pay a debt discharged in bankruptcy but to protect the public from specified professional misconduct and to rehabilitate the attorney. (Brookman, supra, 46 Cal.3d at p. 1008; Hippard, supra, 49 Cal.3d at p. 1093.) Such a claim cannot be made in this case.
In Brookman, an attorney who improperly borrowed $50,000 from a client discharged the debt in bankruptcy. After the client received restitution from the State Bar Client Security Fund, the State Bar ordered the attorney to reimburse the fund. We held that nothing in the Bankruptcy Act or in the cases interpreting that act prevents imposition of restitution as a condition of probation in an attorney disciplinary matter, even if the underlying subject of the restitution has previously been discharged in bankruptcy, and thus cannot be collected as a debt as such. (Brookman, supra, 46 Cal.3d at p. 1009.) "[T]he purpose of attorney discipline is not to penalize petitioner merely for having obtained a discharge of his debt in bankruptcy. Instead, it is to protect the public from specified professional misconduct . . . , and at the same time to rehabilitate the errant attorney." (Id. at p. 1008.)
In so holding, we relied on the United States Supreme Court decision in Kelly v. Robinson (1986) 479 U.S. 36 [93 L.Ed.2d 216, 107 S.Ct. 353] (hereafter Kelly). In Kelly, the Supreme Court held that 11 United States Code section 523(a)(7) preserves from discharge restitution obligations im posed as a condition of probation in state criminal proceedings. Restitution as a condition of probation was held not to violate section 523(a)(7) because it focuses on the state's interests in rehabilitation and punishment rather than the victim's desire for compensation. (Kelly, supra, 479 U.S. at p. 53 [93 L.Ed.2d at p. 230].) The decision to impose restitution generally "does not turn on the victim's injury, but on the penal goals of the State and the situation of the defendant." (Id. at p. 52 [93 L.Ed.2d at p. 230].)
Following Kelly, supra, 479 U.S. 36, we held in Brookman that especially when it is made payable to the State Bar Client Security Fund, restitution "is clearly for the benefit of the public at large, not the underlying victim . Because such restitution fundamentally serves the goal of rehabilitation, it is not merely compensation to the government for 'actual pecuniary loss.' " (Brookman, supra, 46 Cal.3d at p. 1009.)
Subsequently, in Hippard, supra, 49 Cal.3d 1084, we held that an attorney's discharge in bankruptcy of indebtedness to clients and to the Client Security Fund arising from professional misconduct did not preclude the State Bar from considering, as an indicator of rehabilitation, the attorney's subsequent efforts to make restitution to his clients. There the attorney had misappropriated $3,967.66 from one client and additional amounts from two others, borrowed more than $22,000 from seven clients, and written checks on accounts that were closed or lacked sufficient funds. Two of the clients subsequently obtained restitution from the Client Security Fund.
Citing Brookman, supra, 46 Cal.3d 1004, we noted that the purpose of attorney discipline is to protect the public from specified professional misconduct and at the same time to rehabilitate the attorney. (Hippard, supra, 49 Cal.3d at p. 1093.) Because restitution would serve the state interest in "'rehabilitating culpable attorneys (and protecting the public) by forcing the attorney to "confront in concrete terms, the harm his actions have caused" ' " (ibid.), we concluded that when the attorney's misconduct results in appreciable pecuniary loss to his clients, the State Bar may properly consider the absence of any effort to make restitution as an indicator of his lack of rehabilitation. (Id. at pp. 1093-1094.) This is the real significance of restitution, we held, not repayment of the underlying indebtedness.
The case at bar, therefore, can be distinguished from Brookman and Hippard in several ways. First, the debt that petitioner discharged in bankruptcy was a wrongful death judgment unrelated to his practice of law, not a debt owed as the result of professional misconduct. Our concern in reviewing a denial of an application for admission to practice law or a recommendation of professional discipline is unquestionably greater when the debt discharged in bankruptcy was incurred as the result of professional misconduct. Moreover, petitioner has successfully made a prima facie case of good moral character that is otherwise unrebutted by the State Bar; this clearly distinguishes the case at bar from Brookman, supra, 46 Cal.3d at page 1010, and Hippard, supra, 49 Cal.3d at page 1097. When, as here, the State Bar can advance no evidence sufficient to rebut a prima facie case of good moral character other than continued failure to satisfy a discharged obligation, denial of an application to the bar violates section 525(a).
Second, the discharged obligation in this case was intended to compensate Smilanich, as the ultimate victim of petitioner's tortious conduct, for her private pecuniary loss; no governmental unit would benefit from revival of the discharged judgment. This is in contrast to Brookman, in which the Client Security Fund, and thus the "public at large," stood to benefit from the attorney's restitution. In the present case, the subject debt is neither related to petitioner's practice nor owed to one of his clients, thus also distinguishing it from Hippard.
Finally, consideration of petitioner's failure to compensate Smilanich despite the discharge of the judgment in bankruptcy does not further the State Bar's interest in protecting the public from professional misconduct and rehabilitating errant attorneys. In Kelly, the United States Supreme Court found that restitution is an effective rehabilitative penalty "because it forces the defendant to confront, in concrete terms, the harm his actions have caused." (Kelly, supra, 479 U.S. at p. 49, fn. 10 [93 L.Ed.2d at p. 228].) Unlike Brookman and Hippard, in which the restitution was related to underlying professional misconduct, the debt in this case is the result of an isolated 20-year-old drunk driving incident. While the Bankruptcy Act clearly permits the State Bar to consider petitioner's remaining "moral obligation" in evaluating his application to the bar, such consideration fails to serve any rehabilitative purpose as contemplated in Kelly and, as indicated above, the discharge must not be the sole reason for denying petitioner admission.
Disposition
In sum, petitioner has presented a strong prima facie case that he is of sufficiently good moral character to be admitted to the practice of law in California. The State Bar, on the other hand, fails to rebut either petitioner's showing of rehabilitation or his prima facie case. Accordingly, we order petitioner admitted to the California Bar. This holding is consistent with our charge to protect the public and its confidence in the legal profession rather than to impose punishment. (Gary v. State Bar (1988) 44 Cal.3d 820, 827 [244 Cal.Rptr. 482, 749 P.2d 1336].) The State Bar has presented no evidence that petitioner is now a danger to the public in the practice of law or that he does not merit public confidence.
It is ordered that the Committee of Bar Examiners certify petitioner Richard E. Kwasnik to this court as a person qualified to be admitted to practice law.
This order is effective upon finality of this decision in this court. (See Cal. Rules of Court, rule 24(a).)
Unless otherwise noted, all references to rules are to the Rules Regulating Admission to Practice Law in California.
Section 525(a) "is additional debtor protection. It codifies the result of Perez . . . which held that a state would frustrate the Congressional policy of a fresh start for a debtor if it were permitted to refuse to renew a drivers license because a tort judgment resulting from an automobile accident had been unpaid as a result of a discharge in bankruptcy . It does not prohibit consideration of other factors, such as future financial responsibility . if applied nondiscriminatorily . The effect of the section, and of further interpretations of the Perez rule, is to strengthen the anti-reaffirmation policy found in section 524(b). Discrimination based solely on nonpayment could encourage reaffirmations, contrary to the expressed policy." (Notes of Com. on the Judiciary, Sen. Rep. No. 95-989, 2d Sess., p. 81 (1978).)
Section 523 provides: "Exception to discharge:
"(a) A discharge under . . . this title does not discharge an individual debtor from any debt—
"(7) to the extent such debt is for a fine, penalty, or forfeiture payable to and for the benefit of a governmental unit, and is not compensation for actual pecuniary loss . . . ."