State lawmakers pass bills to punish unethical lawyers, limit hedge funds that influence cases

This is read by an automated voice.Please report any issues or inconsistencies here.

See more from the L.A.Times in Google Search.

Set us as preferred A bipartisan package of bills aimed at punishing unethical attorneys and hedge funds that have flourished within California’s legal industry is headed to Gov.Gavin Newsom’s desk.The two bills would bar lawyers from prioritizing the desires of private investors who fund lawsuits, and ramp up penalties for lawyers who scout for clients at hospitals, jails and accident sites.Assemblymember Rick Chavez Zbur (D-Los Angeles), one of the bill authors, said the legislation is intended to police the state’s bruised legal profession in response to “a wave of inappropriate attorney conduct” reported by The Times.Times investigations last year found some clients within L.A.

County’s $4-billion sex abuse settlement said they were paid to sue and, in some cases, fabricate claims.“When attorneys are exploiting vulnerable people, including paying folks to file fraudulent claims, they’re not just breaking the law, they really undermine the credibility of the legal system and every attorney,” Zbur said.Both bills were sponsored by the Consumer Attorneys of California, a powerful trial lawyer trade group that says it wants to beef up punishment for misconduct.“If we are going to demand that corporations, government, and powerful institutions be held accountable, we must be — and we are — willing to hold ourselves to that same standard,” Doug Saeltzer, head of the association, said in a statement.California law already bans a practice known as capping, in which non-attorneys directly solicit or procure clients to sign up for lawsuits with a law firm.Zbur’s legislation, Assembly Bill 2039, would require that attorneys lose their license if they’re convicted of felony capping or a misdemeanor capping conviction in which they “acted knowingly and for financial gain.” The lawyers could also be f...