We all know that under Rule 8.3 (a) of the New Jersey Rules of Professional Conduct, we have an obligation to report violations of the RPCs by others. “A lawyer who knows that another lawyer has committed a violation of the Rules of Professional Conduct that raises a substantial question as to that lawyer’s honesty, trustworthiness or fitness as a lawyer in other respects, shall inform the appropriate professional authorities.” Fortunately, for most of us, that obligation never arises. The vast majority of New Jersey lawyers act ethically and violations—though unacceptable in any amount—are the exception to the rule. But proceedings on a contempt petition in a high-profile case in federal court in Illinois are a stark reminder of the consequences of failure to adhere to the letter of the rule.

As reported in the press, renowned plaintiffs’ attorney Thomas Girardi failed to pay settlement funds to the families of victims of a Lion Air crash. Girardi’s local counsel in Illinois reported the dereliction to the court and sought a finding of contempt of a court order regarding settlement. A hearing on the petition was held. Girardi invoked his Fifth Amendment rights and did not testify. The hearing turned to the actions of other counsel and the promptness of their reporting of the alleged malfeasance by Girardi. The court questioned local counsel about the timing of their report, questioned whether they should have reported sooner, and ordered them and other past counsel from Girardi’s firm to provide a timeline of payments received from the defendant and payments made to clients, to establish whether earlier reporting of Girardi’s alleged malfeasance would have allowed payment to the victims. In short, the reporters are now on the hot seat for not reporting sooner.

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