Financial Activities - Ex. 1 - Activity 2

Activity 2: She is part owner and manager with her two sisters of a gas station/minimart.

Does Judge Ortiz have an ethical problem over the gas station/minimart?

1. No, because it is a family-owned business.

Judge Ortiz can keep her interest in the gas station/minimart because it is a family business. NMRA 21-500 (D) (2). There could be a problem, however, in the judge’s degree of involvement in the business. If the time that the judge devotes to operating the business interferes with her ability to perform her judicial duties, then the judicial duties must take precedence. NMRA 21-500 (H). In that case the judge would need to either take a passive ownership role or sell her interest. Also, the judge needs to be constantly aware of any effects of her business dealings on the appearance of her ability to perform her judicial duties impartially. Thus, if Judge Ortiz is even reasonably perceived to be using her judicial status to expedite collection of debts owed by customers or to gain favorable prices from suppliers, she would be in violation of the Code of Judicial Conduct. NMRA 21-500 (D) (1)(a). Although most of the restrictions on ownership and management of property do not apply to part-time municipal and probate judges, even part-time judges may not engage in financial and business dealings that may reasonably be perceived to exploit the judge’s judicial position. NMRA 21-901 (C) (1)(d)(i).

2. No, because she owned it before she got on the bench.

Judge Ortiz can keep her interest in the gas station/minimart because it is a family business. NMRA 21-500 (D) (2). There could be a problem, however, in the judge’s degree of involvement in the business. If the time that the judge devotes to operating the business interferes with her ability to perform her judicial duties, then the judicial duties must take precedence. NMRA 21-500 (H). In that case the judge would need to either take a passive ownership role or sell her interest. Also, the judge needs to be constantly aware of any effects of her business dealings on the appearance of her ability to perform her judicial duties impartially. Thus, if Judge Ortiz is even reasonably perceived to be using her judicial status to expedite collection of debts owed by customers or to gain favorable prices from suppliers, she would be in violation of the Code of Judicial Conduct. NMRA 21-500 (D) (1)(a). Although most of the restrictions on ownership and management of property do not apply to part-time municipal and probate judges, even part-time judges may not engage in financial and business dealings that may reasonably be perceived to exploit the judge’s judicial position. NMRA 21-901 (C) (1)(d)(i).

3. Yes, because she may have to collect (e.g. on bounced checks) from people she has jurisdiction over.

Judge Ortiz can keep her interest in the gas station/minimart because it is a family business. NMRA 21-500 (D) (2). There could be a problem, however, in the judge’s degree of involvement in the business. If the time that the judge devotes to operating the business interferes with her ability to perform her judicial duties, then the judicial duties must take precedence. NMRA 21-500 (H). In that case the judge would need to either take a passive ownership role or sell her interest. Also, the judge needs to be constantly aware of any effects of her business dealings on the appearance of her ability to perform her judicial duties impartially. Thus, if Judge Ortiz is even reasonably perceived to be using her judicial status to expedite collection of debts owed by customers or to gain favorable prices from suppliers, she would be in violation of the Code of Judicial Conduct. NMRA 21-500 (D) (1)(a). Although most of the restrictions on ownership and management of property do not apply to part-time municipal and probate judges, even part-time judges may not engage in financial and business dealings that may reasonably be perceived to exploit the judge’s judicial position. NMRA 21-901 (C) (1)(d)(i).

4. Yes, if she uses his judicial power to collect from people.

Judge Ortiz can keep her interest in the gas station/minimart because it is a family business. NMRA 21-500 (D) (2). There could be a problem, however, in the judge’s degree of involvement in the business. If the time that the judge devotes to operating the business interferes with her ability to perform her judicial duties, then the judicial duties must take precedence. NMRA 21-500 (H). In that case the judge would need to either take a passive ownership role or sell her interest. Also, the judge needs to be constantly aware of any effects of her business dealings on the appearance of her ability to perform her judicial duties impartially. Thus, if Judge Ortiz is even reasonably perceived to be using her judicial status to expedite collection of debts owed by customers or to gain favorable prices from suppliers, she would be in violation of the Code of Judicial Conduct. NMRA 21-500 (D) (1)(a). Although most of the restrictions on ownership and management of property do not apply to part-time municipal and probate judges, even part-time judges may not engage in financial and business dealings that may reasonably be perceived to exploit the judge’s judicial position. NMRA 21-901 (C) (1)(d)(i).