In the Matter of Jaurequi (Review Dept. 1999)
In the Matter of Jaurequi (Review Dept. 1999) 4 Cal. State Bar Ct. Rptr. 56
The Review Department held that reimbursement of the Client Security Fund is not a prerequisite to filing a petition for reinstatement, but rather a condition that must be satisfied before reinstatement may ultimately be granted.
Facts
Joseph R. Jaurequi resigned from the State Bar in 1988 while disciplinary charges were pending. Years later, in 1999, he filed a petition seeking reinstatement to the practice of law.
At the time he filed his petition, Jaurequi acknowledged that he owed reimbursement to the Client Security Fund (CSF) in the amount of approximately $4,700 arising from payments made to clients harmed by his prior misconduct. He had repaid only a small portion of that amount.
The State Bar moved to dismiss his reinstatement petition, arguing that Business and Professions Code section 6140.5(c) requires full reimbursement of the Client Security Fund before a former attorney may file a petition for reinstatement.
Legal Issue
Whether reimbursement of the Client Security Fund under Business and Professions Code section 6140.5(c) is a condition precedent to filing a petition for reinstatement, or merely a requirement that must be satisfied before reinstatement may be granted.
Court’s Analysis
The Review Department focused on the statutory language. Section 6140.5(c) states that reimbursement of CSF payments “shall be paid as a condition of reinstatement of membership.” The court emphasized that the statute does not state reimbursement is required before filing a reinstatement petition.
The court explained that reinstatement and filing a petition are distinct procedural stages. Filing a petition merely initiates the reinstatement process, whereas reinstatement itself occurs only after a hearing and a final order from the California Supreme Court.
The Review Department also noted that no rule of court or State Bar procedure requires proof of reimbursement at the time a petition is filed. Instead, reimbursement may properly be considered during the reinstatement hearing as part of evaluating rehabilitation and fitness.
Because the statute was clear and unambiguous, the court declined to consider legislative history or policy arguments regarding administrative efficiency or resource concerns.
Holding
The Review Department held that reimbursement of the Client Security Fund is not a prerequisite to filing a petition for reinstatement. It is instead a condition that must be satisfied before reinstatement may ultimately be granted.
Key Reinstatement Requirements Table
| Requirement | Stage Applied | Authority | Court’s Interpretation |
|---|---|---|---|
| CSF Reimbursement | Before reinstatement granted | Bus. & Prof. Code §6140.5(c) | Not required before filing petition |
| Proof of Rehabilitation | At reinstatement hearing | Cal. Rules of Court Rule 9.10 (formerly 951) | Required |
| Moral Fitness | At reinstatement hearing | State Bar reinstatement standards | Required |
Outcome
The Review Department denied the State Bar’s request to dismiss Jaurequi’s reinstatement petition and allowed the reinstatement proceedings to move forward.