CACB — Appendix II - Attorney Discipline Procedures in Bankruptcy Court (Sixth Amended General Order No. 96-05)

Source: https://www.cacb.uscourts.gov/sites/cacb/files/documents/local_rules/LBR%20Appendix%20II.pdf

LBR APPENDIX II (revised 12/18/19)

1 2 3 4 5 6 7 UNITED STATES BANKRUPTCY COURT 8 CENTRAL DISTRICT OF CALIFORNIA 9 10 In Re: ) SIXTH AMENDED 11 ) GENERAL ORDER 96-05 ATTORNEY DISCIPLINE PROCEDURES ) 12 IN BANKRUPTCY COURT ) ) 13 ) 14 15 16 Applicability 17 This general order establishes a process for court wide discipline of attorneys in the 18 bankruptcy court. 19 These procedures shall apply when any judge of this court wishes to challenge the 20 right of an attorney to practice before this court or recommends the imposition of attorney 21 discipline intended to apply in all bankruptcy cases in this court. 22 Nothing in this general order is intended to limit or restrict the authority of any judge 23 to impose sanctions on any attorney in any case or cases assigned to that judge. 24 25 Initiation of Disciplinary Proceedings 26 If a bankruptcy judge wishes to initiate disciplinary proceedings under this general 27 order, that judge (the “Referring Judge”) shall prepare and file with the Clerk of Court 28 - 1 - [SIXTH] AMENDED GENERAL ORDER 96-05

LBR APPENDIX II (revised 12/18/19)

1 a written Statement of Cause setting forth the judge’s basis for recommending discipline and 2 a description of the discipline the referring judge believes is appropriate. 3 The clerk shall open a case file, assign a miscellaneous case number, and initiate a 4 docket for the file. The clerk shall then send notice to all judges of this Court, including any 5 judges on recall, with the Statement of Cause and provide a two-week deadline for any judge 6 to add any additional statement. The clerk shall then select three bankruptcy judges of this 7 district at random (excluding the judge who filed the Statement of Cause and any judge who 8 sent an additional statement) to serve on the Hearing Panel (the “Panel”) which will 9 determine whether the attorney shall be disciplined and, if so, the type and extent of 10 discipline. If any of the Statements of Cause have not been served on the attorney under 11 review, they shall be sent to the attorney named in the Statement(s) of Cause. The most 12 senior judge assigned to the Panel shall be the Presiding Judge. The clerk shall prepare a 13 Designation of Hearing Panel and Presiding Judge which shall include a signature line for 14 each of the designated judges. The signature of each judge shall certify his or her 15 acceptance of assignment to the Panel. Should any judge decline to serve, the clerk shall 16 select another judge to serve on the Panel, give written notice thereof to the other judges on 17 the Panel and issue a Supplemental Designation of Hearing Panel, which shall contain a 18 signature line for the newly appointed judge to accept the assignment. 19 Once the clerk has obtained the acceptance of three judges to serve on the Panel, 20 the clerk shall prepare a Notice of Assignment of Hearing Panel, which the clerk will serve 21 on the attorney named in the Statement of Cause (“the attorney”) and on the local Office of 22 the United States Trustee, along with a copy of the Statement of Cause and a copy of this 23 general order. The attorney may file a motion for recusal as to any of the judges assigned 24 to the Panel within 14 days of the service of the Notice of the Assignment of Hearing Panel 25 and serve the motion on the Office of the United States Trustee. That motion may be heard 26 by any judge other than the referring judge, any judge who sent an additional statement, any 27 judge assigned to the Panel, or any judge who has declined to serve on the Panel. The 28 assignment of the recusal motion to a judge shall be made at random by the clerk, who shall - 2 - [SIXTH] AMENDED GENERAL ORDER 96-05

LBR APPENDIX II (revised 12/18/19)

1 give notice of the recusal hearing to the attorney and to the Office of the United States 2 Trustee at least 14 days before the hearing date. 3 Once the period for bringing a recusal motion has terminated, or after disposition of 4 any recusal motion, the Presiding Judge shall advise the clerk of the date, time, and place 5 for the Disciplinary Hearing, whereupon the clerk shall prepare a Notice of Disciplinary 6 Hearing and mail the notice to the attorney and to the Office of the United States Trustee at 7 least 21 days before the hearing date. 8 If, at any point in this process, a judge has accepted assignment of a case but must 9 later withdraw, the clerk will randomly assign another judge to the Panel. The above 10 procedure for acceptance of assignment to the panel and opportunity to file a motion for 11 recusal will be followed as to the judge substituting in to the Panel. 12 Whenever the California State Bar suspends or disbars an attorney who has an 13 active case in this court, the Chief Judge (or another judge of the Court designated by the 14 Chief Judge) will issue an order to show cause to the attorney requiring him or her to 15 explain why the same discipline should not be imposed suspending or disbarring that 16 attorney from practicing before this court. If no response is received by the deadline 17 provided, the attorney will be barred or suspended from practice in front of this court with 18 no further proceedings. If the attorney responds and wishes to challenge further 19 suspension or disbarment, the Clerk shall open a case file and proceed in the same 20 manner as provided for in the above initiation of proceedings. If requested, the attorney 21 must authorize the State Bar to share appropriate files with the disciplinary panel as part of 22 its review. 23 24 Additional Input 25 The Panel or any member thereof may request additional information concerning the 26 conduct of the attorney in the subject case or any other case from the Referring Judge, the 27 United States Trustee and/or another judge(s) in this district. Any such request (a “Request”) 28 shall be in writing and shall be filed in the disciplinary proceeding and served on all members - 3 - [SIXTH] AMENDED GENERAL ORDER 96-05

LBR APPENDIX II (revised 12/18/19)

1 of the Panel, the attorney, the United States Trustee and the party or parties to whom the 2 Request is directed. The Request shall specify a deadline for the response. 3 Any response(s) to a Request (a “Response”) shall be in writing and shall be filed in 4 the disciplinary proceeding and served on all members of the Panel, the attorney and the 5 United States Trustee. The attorney may file a written reply to a Response within 7 days 6 after service of the Response. A copy of the reply shall be served on all members of the 7 Panel, the United States Trustee and the party who filed the Response. 8 Except in a Response or as otherwise authorized in this Order, the Referring Judge 9 and any judge who sent an additional statement shall not communicate with the Panel 10 concerning the merits of a pending disciplinary proceeding. 11 Hearing Procedures 12 The attorney may appear at the Disciplinary Hearing with legal counsel and may 13 present evidence: 14 (A) Refuting the statements contained in the Statement of Cause; 15 (B) Refuting the statements contained in a Response; 16 (C) Mitigating the discipline (i.e., that, notwithstanding the validity of the 17 statements in the Statement of Cause or a Response, the attorney 18 should not be disciplined); and 19 (D) Bearing on the type and extent of disciplinary action appropriate under 20 the circumstances. 21 The Federal Rules of Evidence shall apply to the presentation of evidence at the 22 Disciplinary Hearing, and an official record of the proceedings shall be maintained as though 23 the Disciplinary Hearing were a contested matter as that term is defined in the Federal Rules 24 of Bankruptcy Procedure. The United States Trustee for the district may appear at the 25 hearing in person or by counsel and may participate in the presentation of evidence as 26 though she or he were a party to the proceeding. If the United States Trustee wishes to 27 appear at the hearing, she or he must file a Notice of Intent to Appear, setting forth the 28 purposes for the appearance, and serve that notice on the attorney at least 14 days before - 4 - [SIXTH] AMENDED GENERAL ORDER 96-05

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1 the hearing. The Panel may disregard written statements or declarations of innocence or in 2 mitigation of the attorney’s conduct unless they are filed with the court with copies delivered 3 promptly thereafter to the chambers of each member of the Panel at least 7 days prior to the 4 hearing. Written statements presented to the Panel for consideration as evidence by or on 5 behalf of the attorney may be disregarded by the Panel if the declarant is unavailable at the 6 hearing for cross-examination and for examination by the Panel. 7 Ruling 8 At the conclusion of the Disciplinary Hearing, the judges of the Panel will adjourn to 9 a private session to consider the matter. The ruling of the Panel will be made by majority 10 vote of the judges on the Panel. The Presiding Judge will assign to a judge in the majority 11 the task of drafting the Panel’s Memorandum of Decision setting forth the majority’s decision 12 and its reasons. Any member of the Panel may issue a concurring or dissenting opinion 13 which will be made a part of the Memorandum of Decision. 14 The Panel shall issue a Discipline Order signed by all members of the Panel based 15 on the Panel’s Memorandum of Decision. That order may provide for any appropriate 16 discipline, including but not limited to revocation or suspension of the right to practice before 17 all the judges of this court. A copy of the entered Discipline Order shall be served on the 18 attorney, all judges of the United States Bankruptcy Court for the Central District of California 19 and the United States Trustee. 20 The attorney, the Referring Judge and/or the United States Trustee may file a motion 21 for rehearing, clarification or more detailed findings (a “motion for rehearing”) within 14 days 22 after entry of the Discipline Order. (Nothing contained in this order precludes the Panel 23 appointed in a given disciplinary proceeding from concluding that a Referring Judge lacks 24 standing to file a motion for rehearing.) 25 The Discipline Order will become final 14 days after entry or, if a motion for rehearing 26 is filed, 14 days after entry of an order denying the motion for rehearing. The same rule as 27 to finality will apply to a new or revised Discipline Order, if one is issued by the Panel after 28 rehearing. - 5 - [SIXTH] AMENDED GENERAL ORDER 96-05

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1 The Discipline Order shall be sent by the clerk to the Clerk of the District Court. 2 Should the Panel so order, a Discipline Order also may be transmitted by the clerk to the 3 State Bar of California or published in designated periodicals, or both. 4 If an attorney’s practice privileges have been revoked, modified, or suspended by 5 final order of a Panel, the attorney may not appear before any of the judges of this court 6 representing any other persons or entities except in compliance with the terms of the 7 Discipline Order. 8 Reinstatement 9 An attorney whose privileges have been revoked, modified, or suspended under this 10 general order may apply to the Chief Judge of this court for reinstatement of privileges on 11 the following schedule: 12 (A) If privileges were revoked without condition for an unlimited period of 13 time, the attorney may apply for reinstatement after five years from the 14 date the Discipline Order becomes final; 15 (B) If privileges were revoked or suspended with specified conditions 16 precedent to reinstatement, the attorney may apply for reinstatement 17 upon fulfillment of the conditions set forth in the Discipline Order; and 18 (C) If privileges were suspended for a specified period of time, the attorney 19 may apply for reinstatement at the conclusion of the period of 20 suspension or five years after the Discipline Order becomes final, 21 whichever first occurs. 22 An Application for Reinstatement of Privileges must include a copy of the Discipline 23 Order, proof that all conditions justifying reinstatement have been fulfilled, and proof that the 24 applicant is in good standing before the United States District Court for the Central District 25 of California and is a member in good standing of the State Bar of California. If the attorney’s 26 privileges were revoked, or if the suspension was for a time in excess of five years and was 27 without any conditions precedent to reinstatement, it shall be within the sole discretion of the 28 Chief Judge whether to issue a reinstatement order. If the Chief Judge determines that the - 6 - [SIXTH] AMENDED GENERAL ORDER 96-05

LBR APPENDIX II (revised 12/18/19)

1 attorney is entitled to reinstatement of practice privileges, he or she may issue a 2 Reinstatement Order. Upon entry of the Reinstatement Order, the attorney affected thereby 3 shall be deemed eligible to practice before all the judges of this court except to the extent 4 any judge of this court has issued an order, other than under this rule, denying that attorney 5 the right to appear before that judge or to appear in a particular case. 6 Upon entry, the clerk shall transmit a copy to all judges of this court and to the 7 attorney, the clerk of the District Court, and to the United States Trustee. In addition, if the 8 Discipline Order was sent to the State Bar or published, the Clerk shall transmit the 9 Reinstatement Order to the State Bar and publish it in the same publication, if possible. If 10 the Chief Judge does not grant the Application for Reinstatement of Privileges, he or she 11 shall issue an order denying the application together with a separate written statement of 12 the reasons for his or her decision. That order will become final 14 days after entry. 13 If an attorney’s Application for Reinstatement of Privileges is denied, he or she may 14 reapply for reinstatement after one year from the date of entry of the order denying the 15 previous application or within such other time or upon fulfillment of such conditions as may 16 be set forth in the order denying reinstatement. 17 18 Maintenance of Discipline Files 19 Except to the extent that access to a particular file is restricted or prohibited by order 20 of the Chief Judge or the Panel to which the matter was assigned, (1) those files shall be 21 maintained in accordance with applicable law and rules for maintenance of miscellaneous 22 files of this court and shall be available for review and copying by members of the public, 23 and (2) orders, opinions and written memoranda issued in these matters shall be published 24 on the court’s website. 25 The clerk shall close a disciplinary file 30 days after entry of a dispositive order 26 (for example, an Order Re Revocation of Privileges or a Reinstatement Order) in that 27 proceeding unless within that time the clerk receives a Notice of Appeal of any order 28 rendered in the proceeding or other information justifying maintenance of the file in an open - 7 - [SIXTH] AMENDED GENERAL ORDER 96-05

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1 status. The clerk shall reopen a disciplinary file upon the request of the attorney, for the 2 convenience of the court, or upon order of any judge of this court, whereupon the clerk shall 3 advise the Chief Judge accordingly. So long as any disciplinary files remain open, the clerk 4 shall provide the Chief Judge a quarterly status report of all such open files to which will be 5 attached copies of their dockets. The Chief Judge may order any such files closed when he 6 or she deems it appropriate, consistent with the provisions hereof and the status of any such 7 matter. 8 Motion to Have Opinion Removed from Website 9 At any time after the entry of a Reinstatement Order, the attorney may apply to the 10 Chief Judge of this court for an order directing the Clerk to remove the Discipline Order and 11 any related opinion and memoranda from the court’s website. An application for this relief 12 must include a copy of the Discipline Order and the Reinstatement Order. It shall be within 13 the sole discretion of the Chief Judge whether to grant such an application. 14 15 Appeals 16 All orders issued pursuant to this rule shall be appealable to the extent permitted by 17 applicable law and rules of court. 18 19 Date: December 18, 2019 20 21 Maureen Tighe Chief Judge, United States Bankruptcy Court 22 23 24 25 26 27 28 - 8 - [SIXTH] AMENDED GENERAL ORDER 96-05