Opinion ID: 386114
Heading Depth: 1
Heading Rank: 2

Heading: Attorney Discipline

Text: 46 Under Federal Rule of Appellate Procedure 46, a Court of Appeals can discipline any attorney who practices before it for conduct unbecoming a member of the bar. See In re Chandler, 450 F.2d 813 (9th Cir. 1971). This language is not unconstitutionally vague. It refers to the legal profession's code of behavior and lore, of which all attorneys are charged with knowledge and of which the American Bar Association Code of Professional Responsibility (ABA CPR) is an illustration. In re Bithoney, 486 F.2d 319, 324 & n.7 (1st Cir. 1973). In addition, members pro hac vice of the bar of the United States District Court for the Northern District of California are charged with knowledge of the disciplinary rules of the State Bar of California, as well as those of their home jurisdiction.
47 The allegations and admissions in the record of the present case raise serious questions as to whether Bailey and, to the extent of his participation, Johnson have been guilty of conduct unbecoming members of the bar.
48 Bailey's book contract created a potential conflict of interest; this case tests whether it ripened into an actual conflict of interest. Therefore, Bailey may have violated ABA CPR Disciplinary Rule 5-101(A), which reads: 49 Except with the consent of his client after full disclosure, a lawyer shall not accept employment if the exercise of his professional judgment on behalf of his client will be or reasonably may be affected by his own financial, business, property, or personal interests. 50 The obvious reason for this rule is well expressed in ABA CPR Ethical Consideration 5-1: 51 The professional judgment of a lawyer should be exercised, within the bounds of the law, solely for the benefit of his client and free of compromising influences and loyalties. Neither his personal interests, the interests of other clients, nor the desires of third persons should be permitted to dilute his loyalty to his client. 52 Bailey's book contract might not fall within ABA CPR Disciplinary Rule 5-104(B), see infra, because the contract itself was not an acquisition from the client of an interest in publication rights. Nonetheless, Rule 5-104(B) recognizes the dangers inherent in simultaneous lawyering and authoring. 6 Moreover, all courts before which the issue has been raised have disapproved the practice of attorneys arranging to benefit from the publication of their clients' stories. See Ray v. Rose, 491 F.2d 285, 289 (6th Cir.), cert. denied, 417 U.S. 936, 94 S.Ct. 2650, 41 L.Ed.2d 240 (1974); Ray v. Rose, 535 F.2d 966, 974 (6th Cir.), cert. denied, 429 U.S. 1026, 97 S.Ct. 648, 50 L.Ed.2d 629 (1976); Wojtowicz v. United States, 550 F.2d 786, 793 (2d Cir.), cert. denied, 431 U.S. 972, 97 S.Ct. 2938, 53 L.Ed.2d 1071 (1977); People v. Corona, 80 Cal.App.3d 684, 720-21, 727, 145 Cal.Rptr. 894, 915-16, 920 (1978); Maxwell v. Superior Court, 101 Cal.App.3d 736, 161 Cal.Rptr. 849, 854-56, 861 (1980) hearing granted March 20, 1980. 53 In light of Rule 5-101(A), Bailey's decision to enter into a book contract during the course of the trial was most unfortunate. Potential and actual conflicts of interest always bring disrepute upon the bar, the court, and the law. They do so to an even greater degree when the case is a cause cEelebre and the attorney has the reputation of being an outstanding lawyer. Moreover, Bailey is in no position to claim that the book contract was necessary to finance his fee.
ABA CPR Disciplinary Rule 5-104(B) reads: 54 Prior to conclusion of all aspects of the matter giving rise to his employment, a lawyer shall not enter into any arrangement or understanding with a client or a prospective client by which he acquires an interest in publication rights with respect to the subject matter of his employment or proposed employment. 55 Even though Bailey's book contract itself technically might not violate this Rule, Hearst's March 22 covenant to cooperate exclusively with Bailey and not to publish on her own was obtained pursuant to his representation and, we believe, constituted an interest in publication rights. Although Hearst's trial had ended on March 22, Bailey's representation of Hearst had not. He continued to represent her through a motion for new trial, a second motion for new trial, sentencing, a direct appeal to this Court, a petition for rehearing en banc, a petition for certiorari, a motion to vacate a concurrent sentence, and a Rule 35 motion to reduce sentence. Thus, Bailey was apparently in violation of ABA CPR Disciplinary Rule 5-104(B) from March 22, 1976, onward.
56 Bailey admits the book contract; the covenant is in the record. The allegations suggesting fraud are not so well established. However, if proved, they would tend to show that Bailey and Johnson misled Randolph Hearst and appellant regarding the finality of the agreement for a book, the subject of the book, the duration of the covenant, the application of the proceeds, and appellant's obligation to sign the covenant. The allegations regarding the background, manner and timing of the presentation of the covenant to appellant for signing indicate overreaching. 57 If all this is true, Bailey and Johnson may have violated ABA CPR Disciplinary Rule 1-102(A)(4): 58 A lawyer shall not engage in conduct involving dishonesty, fraud, deceit, or misrepresentation. 59 Other Disciplinary Rules might also be involved. Attention should also be directed to California Rule of Professional Conduct 5-101:A member of the State Bar 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 (1) the transaction and terms in which the member of the State Bar acquires the interest are fair and reasonable to the client and are fully disclosed and transmitted in writing to the client in manner and terms which should have reasonably been understood by the client, (2) the client is given a reasonable opportunity to seek the advice of independent counsel of the client's choice on the transaction, and (3) the client consents in writing thereto.
60 We suggest that the district court, on remand, might find it advisable to issue to Bailey (and perhaps to Johnson as well) an order to show cause why he should not be disciplined, on the grounds noted above, in his capacity as a member pro hac vice of the bar of the United States District Court for the Northern District of California. 7