Lawyers can't charge clients interest on loans; steep penalties for case runners
Attorneys who lend or advance clients money need a separate written contract listing the amount, terms and fees, and may not charge interest, or face a $15,000 penalty. Lawyer runners and cappers face $25,000 penalties, and retaliating against people who report lawyer misconduct is banned.
Who it affects
Attorneys, law firms, their clients and employees
When
This law takes effect on January 1, 2027. California laws take effect on January 1 of the year after they are signed, unless the law says otherwise.
- : Signed into law
- : This law takes effect
Official text
California AB 2039: Attorneys.
On California Legislative Information. The official text is what counts; read it before you act.
Not legal advice. Plain-English summaries to help you find what changes and when. Not legal advice: read the official text, and ask a lawyer about your situation.