Attorney Faces Disbarment for Alleged Misconduct: A Cautionary Tale

Introduction: A Follow-Up to a Stunning Case

This article follows up on a previous piece titled "Attorney Alleged To Have Tried To Hack Judge’s Email Account In Libman" (July 25, 2024), which detailed shocking allegations of misconduct by attorney Libman. The case centers on Libman’s refusal to comply with court orders and his alleged attempt to hack into a judge’s email account to uncover perceived collusion between the judge and opposing counsel. The latest developments reveal that the State Bar Court has recommended Libman’s disbarment for his actions, which have been deemed egregious and unethical. This article delves into the creditor-debtor aspects of the case, the legal consequences, and the broader implications for attorneys facing similar challenges.

Background: Libman’s Refusal to Comply with Court Orders

In the underlying case, the Superior Court ordered Libman to provide an accounting of $1.65 million in attorney’s fees he had received. Instead of furnishing detailed records, Libman submitted a sparse one-page document listing four payment dates and amounts. When deposed in late 2020, he refused to answer questions about where the funds were deposited, despite the court overruling his objections. His defiance led to him being held in contempt of court, with the Superior Court imposing monetary sanctions totaling over $160,000.

The court also issued "issue sanctions" against Libman, deeming it established that he had not earned the $1.65 million in attorney’s fees. As a result, a disgorgement order was issued, requiring Libman to return the $1.65 million plus 10% annual interest. Additional penalties included a $4,000 fine and a daily $700 fine starting August 22, 2023, until he complied with the court’s orders. Despite exhausting all avenues of appeal, including a failed attempt to have the U.S. Supreme Court hear his case, Libman continued to defy the court’s directives.

The State Bar Proceedings: Charges and Recommendations

The State Bar Court brought nine charges of misconduct against Libman, all of which were proven by clear and convincing evidence. Counts six, seven, and eight specifically addressed Libman’s failure to obey court orders, which constitutes a serious ethical violation. Additionally, the court found that Libman’s attempt to hack the judge’s email account demonstrated "moral turpitude, corruption, collusion, and dishonesty."

In recommending Libman’s disbarment, the Bar Court described his misconduct as "egregious and extensive," highlighting his role in a collusive scheme, submission of false declarations, and deliberate attempts to compromise the administration of justice. The court emphasized that Libman’s actions, rooted entirely in his role as an attorney, showed a complete disregard for the responsibilities of the legal profession. This decision is now subject to review by the California Supreme Court.

The Consequences of Non-Compliance: Lessons for Attorneys

Libman’s case underscores the importance of complying with court orders, even when facing creditor-debtor disputes. Attorneys, as officers of the court, are duty-bound to obey judicial directives, particularly when those orders are directed at them personally. While there may be rare exceptions, such as during ongoing appeals, once all avenues of appeal have been exhausted, full compliance is non-negotiable.

In this case, Libman’s refusal to provide basic financial information and his defiance during his debtor’s examination crossed ethical boundaries. His actions not only jeopardized his license but also undermined the integrity of the legal system. The case serves as a stark reminder that attorneys who fail to respond truthfully to document requests or questions during debtor exams risk severe ethical sanctions, including disbarment.

Analysis: The Ethical and Professional Implications

The ethical implications of Libman’s actions extend beyond his personal conduct. His attempt to hack the judge’s email account and his refusal to comply with court orders threaten the very foundation of judicial integrity. Attorneys must maintain the highest standards of honesty and transparency, especially when dealing with financial matters. Hiding or misrepresenting the disposition of funds, as Libman did with the $1.65 million, is a clear violation of ethical principles.

This case also highlights the heightened scrutiny attorneys face when they themselves are debtors. While attorneys have been sanctioned for assisting clients in hiding assets, the consequences are far more severe when the attorney is the debtor. Libman’s actions demonstrate a flagrant disregard for professional responsibilities, making his disbarment not only appropriate but necessary to uphold the integrity of the legal profession.

Conclusion: A Cautionary Tale for the Legal Profession

Libman’s story is a stark reminder of the consequences of unethical behavior and non-compliance with court orders. His actions, including his refusal to account for $1.65 million in attorney’s fees and his alleged attempt to hack a judge’s email, have led to severe repercussions, including the recommended loss of his law license. For attorneys navigating creditor-debtor disputes, this case serves as a clear warning: failure to respond truthfully and transparently to financial inquiries and court directives can result in professional ruin.

The legal profession demands integrity, accountability, and respect for the judicial process. Libman’s case illustrates what happens when these principles are violated. As the California Supreme Court reviews the recommendation for his disbarment, one thing is clear: attorneys must adhere to the highest ethical standards, even in the face of personal or financial challenges. Anything less risks undermining the trust and integrity that underpin the legal system.