Following is the 71st post in a series from Parker Taylor Law Group about recent changes to the California Bar Association (CBA)’s Rules of Professional Conduct (RPC). This rule is found in Chapter 1 – “Lawyer-Client Relationship,” focusing on issues concerning attorneys who have been employed or retained by organizations.
This Rule of Professional Conduct, as revised, is as follows:
Rule 1.8.9 Purchasing Property at a Foreclosure or a Sale Subject to Judicial Review
(a) A lawyer shall not directly or indirectly purchase property at a probate, foreclosure, receiver’s, trustee’s, or judicial sale in an action or proceeding in which such lawyer or any lawyer affiliated by reason of personal, business, or professional relationship with that lawyer or with that lawyer’s law firm is acting as a lawyer for a party or as executor, receiver, trustee, administrator, guardian, or conservator.
(b) A lawyer shall not represent the seller at a probate, foreclosure, receiver, trustee, or judicial sale in an action or proceeding in which the purchaser is a spouse or relative of the lawyer or of another lawyer in the lawyer’s law firm or is an employee of the lawyer or the lawyer’s law firm.
(c) This rule does not prohibit a lawyer’s participation in transactions that are specifically authorized by and comply with Probate Code sections 9880 through 9885, but such transactions remain subject to the provisions of rules 1.8.1 and 1.7.
The first two subdivisions of Rule 4-300 of the CBA’s previous version of its RPC match the first two subdivisions of the revised RPC’s Rule 1.8.9, as set forth above. However, the third subdivision – (c) … pertaining to an exception to the prohibitions listed in the first two subdivisions of the rule … is brand new.
The American Bar Association (ABA)’s Model RPC does not have a rule corresponding to CBA’s rule on the purchase of property at a foreclosure or sale that is subject to judicial review.
Benefit: The addition of subdivision (c) to this rule is helpful to attorneys because, generally speaking, it makes it easier for attorneys and law firms to quickly reference the regulations governing this type of activity.
The information provided herein is informational only and should not be construed as legal advice or as an agreement for representation. This is not an advertisement. If you have an issue or dispute with your attorney, or are seeking advice with respect to your obligations, you should consult with an experienced attorney. Parker Taylor Law Group is a full-service litigation and transactional law firm. Mr. Parker has represented clients in professional malfeasance disputes for over 23 years. If you would like to schedule an initial consultation with Mr. Parker or his team, you can reach them at (916) 996-0400 or at firstname.lastname@example.org. (An email to the law firm requesting a consultation does not create an attorney-client relationship or any agreement for representation by the firm.)
Rules of Professional Conduct, California Bar Association, American Bar Association, Legal Malpractice, Client Rights, Foreclosure, Purchase of Property, Judicial Review, Parker Taylor Law Group, Port Parker