The California State Bar has expressed its willingness to disclose the names of two former employees as part of a settlement in the investigation involving disbarred attorney Thomas Girardi. This disclosure would take place if the individuals grant permission, pending approval from the California Supreme Court. The agreement would mark the resolution of a lawsuit the Los Angeles Times filed, which sought public access to documents related to the disciplinary inquiry into the once-prominent plaintiffs’ attorney.

As part of the settlement, the California State Bar will also reimburse the newspaper $138,000 as a partial payment towards its attorneys’ fees. The lawsuit filed by the LA Times contended that without access to information about the agency’s handling of numerous complaints against Girardi, the public would be unable to hold the Bar accountable and evaluate the efficacy of the reforms implemented following the Girardi scandal.

In an independent report investigating the agency’s conduct throughout the lengthy affair involving Girardi, the names of two former bar attorneys were redacted. This report revealed that insiders within the bar had failed to adequately disclose their close relationships with Girardi and the gifts they received from him, which constituted conflicts of interest.

The settlement terms require the California State Bar to make an effort to contact the two individuals within two weeks of the agreement’s execution to seek permission to publicly release their names. Following a 30-day response period, the Bar will inform the LA Times about the individuals’ decision. If either of the individuals grants permission within the stipulated timeframe, the State Bar will update its public disclosure to identify them accordingly.

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However, the LA Times has agreed not to pursue the release of a fully unredacted version of a second report detailing the bar’s investigation into Girardi’s conduct. Despite this, the newspaper acknowledged the significance of the information it obtained from the State Bar and the resulting changes in the agency’s practices. The reimbursement of a substantial portion of the legal fees incurred in the lawsuit was also recognized as a noteworthy outcome in terms of transparency.

Ellin Davtyan, general counsel for the California State Bar, stated that the settlement reflects the Bar’s evolved interpretation of the statute governing the discretionary release of confidential disciplinary case information. It further demonstrates the Bar’s commitment to transparency and accountability. Additionally, the Bar will initiate the rule-making process to modify its procedures in accordance with the previously announced changes regarding the public release of closed files, as specified under California Business and Professions Code Section 6086(1)(b)(2).

This settlement comes one year after Girardi’s disbarment on charges of misappropriating funds from clients. Girardi faced indictments in both Los Angeles and Chicago federal courts earlier this year for allegedly embezzling millions of dollars belonging to clients and other counsel. Currently residing in a memory care unit, Girardi recently underwent a competency examination in the US District Court for the Central District of California, with the results expected to be shared with the Northern District of Illinois.

The California State Bar revealed that it had received 136 complaints against Girardi from August 10, 1982, to December 17, 2020, when the Girardi Keese firm and Girardi himself filed for bankruptcy. Since the initiation of the bankruptcy proceedings, the bar has received an additional 69 complaints, with nearly 60 of them alleging violations related to client trust accounts. Following an earlier agreement with the LA Times, the bar had previously released documents related to the complaints.

The LA Times was represented by Davis Wright Tremaine LLP, both as outside counsel and in-house representation. The California State Bar’s Office of Chief Trial Counsel and Wagstaffe, von Loewenfeldt, Busch & Radwick LLP represented the agency during the settlement negotiations.