Case 1:18-cv-00966-CFC-CJB Document 995-5 Filed 12/02/22 Page 1 of 6 PageID #: 38414
`Case 1:18-cv-00966-CFC-CJB Document 995-5 Filed 12/02/22 Page 1 of 6 PagelD #: 38414
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`EXHIBIT E
`EXHIBIT E
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`Case 1:18-cv-00966-CFC-CJB Document 995-5 Filed 12/02/22 Page 2 of 6 PageID #: 38415
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`Guide to Judiciary Policy
`Vol. 2: Ethics and Judicial Conduct
`Pt. B: Ethics Advisory Opinions
`Ch. 2: Published Advisory Opinions
`§ 210 Index
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`§ 220 Committee on Codes of Conduct Advisory Opinions
`No. 2: Service on Governing Boards of Nonprofit Organizations
`No. 3: Participation in a Seminar of General Character
`No. 7: Service as Faculty Member of the National College of State Trial Judges
`No. 9: Testifying as a Character Witness
`No. 11: Disqualification Where Long-Time Friend or Friend’s Law Firm Is
`Counsel
`No. 17: Acceptance of Hospitality and Travel Expense Reimbursements From
`Lawyers
`No. 19: Membership in a Political Club
`No. 20: Disqualification Based on Stockholdings by Household Family Member
`No. 24: Financial Settlement and Disqualification on Resignation From Law Firm
`No. 26: Disqualification Based on Holding Insurance Policy from Company that is
`a Party
`No. 27: Disqualification Based on Spouse’s Interest as Beneficiary of a Trust
`from which Defendant Leases Property
`No. 28: Service as Officer or Trustee of Hospital or Hospital Association
`No. 29: Service as President or Director of a Corporation Operating a
`Cooperative Apartment or Condominium
`No. 32: Limited Solicitation of Funds for the Boy Scouts of America
`No. 33: Service as a Co-trustee of a Pension Trust
`No. 34: Service as Officer or on Governing Board of Bar Association
`No. 35: Solicitation of Funds for Nonprofit Organizations, Including Listing of
`Judges on Solicitation Materials
`No. 36: Commenting on Legal Issues Arising before the Governing Board of a
`Private College or University
`No. 37: Service as Officer or Trustee of a Professional Organization Receiving
`Governmental or Private Grants or Operating Funds
`No. 38: Disqualification When Relative Is an Assistant United States Attorney
`No. 40: Service on Governing Board of Nonprofit Organization that Tends to
`Become Involved in Court Proceedings
`No. 42: Participation in Fund Raising for a Religious Organization
`No. 43: Service as a Statutory Member of a Citizens’ Supervisory Commission of
`the County Personnel Board
`No. 44: Service on Governing Board of a Public College or University
`No. 46: Acceptance of Public Testimonials or Awards
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`Last substantive revision (Transmittal 02-051) October 15, 2019
`Last revised (minor technical changes) November 17, 2022
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`Case 1:18-cv-00966-CFC-CJB Document 995-5 Filed 12/02/22 Page 3 of 6 PageID #: 38416
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`Guide to Judiciary Policy, Vol. 2B, Ch. 2
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`Page 2
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`No. 47: Acceptance of Complimentary or Discounted Club Memberships
`No. 48: Application of Judicial Conference Conflict-of-Interest Rules for Part-Time
`Magistrate Judges
`No. 49: Disqualification Based on Financial Interest in Member of a Trade
`Association
`No. 50: Appearance Before a Legislative or Executive Body or Official
`No. 51: Law Clerk Working on Case in Which a Party Is Represented by
`Spouse’s Law Firm
`No. 52: American Bar Association or Other Open-Membership Bar Association
`Appearing as a Party
`No. 53: Political Involvement of a Judge’s Spouse
`No. 55: Extrajudicial Writings and Publications
`No. 57: Disqualification Based on Stock Ownership in Parent Corporation of a
`Party or Controlled Subsidiary of a Party
`No. 58: Disqualification When Relative is Employed by a Participating Law Firm
`No. 59: Providing Recommendations or Evaluations of Nominees for Judicial,
`Executive, or Legislative Branch Appointments
`No. 60: Appointment of Spouse of an Assistant United States Attorney as Part-
`Time Magistrate Judge
`No. 61: Appointment of Law Partner of Judge’s Relative as Special Master
`No. 63: Disqualification Based on Interest in Amicus that is a Corporation
`No. 64: Employing a Judge’s Child as Law Clerk
`No. 65: Providing a Recommendation for Commutation, Pardon, or Parole
`No. 66: Disqualification Following Conduct Complaint Against Attorney or Judge
`No. 67: Attendance at Independent Educational Seminars
`No. 69: Removal of Disqualification by Disposal of Interest
`No. 70: Disqualification When Former Judge Appears as Counsel
`No. 71: Disqualification After Oral Argument
`No. 72: Use of Title “Judge” by Former Judges
`No. 73: Providing Letters of Recommendation and Similar Endorsements
`No. 74: Pending Cases Involving Law Clerk’s Future Employer
`No. 75: Disqualification Based on Military or Other Governmental Pensions
`No. 76: Service of State Employees as Part-Time United States Magistrate
`Judges
`No. 78: Disqualification When Judge Is a Utility Ratepayer or Taxpayer
`No. 79: Use of Chambers, Resources, and Staff for Law-Related Activities
`Permitted by Canon 4
`No. 80: Use of Chambers, Resources, and Staff for Activities Permitted by Canon
`4 that are Not Related to the Law
`No. 81: United States Attorney as Law Clerk’s Future Employer
`No. 82: Joining Organizations
`No. 83: Payments to Law Clerks from Future Law Firm Employers
`No. 84: Pursuit of Post-Judicial Employment
`No. 85: Membership and Participation in the American Bar Association
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`Case 1:18-cv-00966-CFC-CJB Document 995-5 Filed 12/02/22 Page 4 of 6 PageID #: 38417
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`Guide to Judiciary Policy, Vol. 2B, Ch. 2
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`Page 3
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`No. 86: Applying the Honoraria, Teaching, and Outside Earned Income
`Limitations
`No. 87: Participation in Continuing Legal Education Programs
`No. 88: Receipt of Mementoes or Other Tokens Under the Prohibition Against the
`Receipt of Honoraria for Any Appearance, Speech, or Article
`No. 89: Acceptance of Honors Funded Through Voluntary Contributions
`No. 90: Duty to Inquire When Relatives May Be Members of Class Action
`No. 91: Solicitation and Acceptance of Funds from Persons Doing Business With
`the Courts
`No. 92: Political Activities Guidelines for Judicial Employees
`No. 93: Extrajudicial Activities Related to the Law
`No. 94: Disqualification Based on Mineral Interests
`No. 95: Judges Acting in a Settlement Capacity
`No. 96: Service as Fiduciary of an Estate or Trust
`No. 97: Disqualification of Magistrate Judge Based on Appointment or
`Reappointment Process
`No. 98: Gifts to Newly Appointed Judges
`No. 99: Disqualification Where Counsel Is Involved in a Separate Class Action in
`Which the Judge or a Relative Is a Class Member
`No. 100: Identifying Parties in Bankruptcy Cases for Purposes of Disqualification
`No. 101: Disqualification Due to Debt Interests
`No. 102: Disqualification Issues Relating to Judge Being Sued in Official
`Capacity, Including Representation By Department of Justice
`No. 103: Disqualification Based on Harassing Claims Against Judge
`No. 104: Participation in Court Historical Societies and Learning Centers
`No. 105: Participation in Private Law-Related Training Programs
`No. 106: Mutual or Common Investment Funds
`No. 107: Disqualification Based on Spouse’s Business Relationships
`No. 108: Participation in Government-Sponsored Training of Government
`Attorneys
`No. 109: Providing Conflict Lists to Departing Law Clerks
`No. 110: “Separately Managed” Accounts
`No. 111: Interns, Externs and Other Volunteer Employees
`No. 112: Use of Electronic Social Media by Judges and Judicial Employees
`No. 113: Ethical Obligations for Recall-Eligible Magistrate and Bankruptcy
`Judges
`No. 114: Promotional Activity Associated with Extrajudicial Writings and
`Publications
`No. 115: Appointment, Hiring, and Employment Considerations: Nepotism and
`Favoritism
`No. 116: Participation in Educational Seminars Sponsored by Research
`Institutes, Think Tanks, Associations, Public Interest Groups, or
`Other Organizations Engaged in Public Policy Debates
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`Case 1:18-cv-00966-CFC-CJB Document 995-5 Filed 12/02/22 Page 5 of 6 PageID #: 38418
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`Guide to Judiciary Policy, Vol. 2B, Ch. 2
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`Page 74
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`Committee on Codes of Conduct Advisory Opinion
`No. 57: Disqualification Based on Stock Ownership in Parent Corporation
`of a Party or Controlled Subsidiary of a Party
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`This opinion considers the question of whether a judge should recuse when the
`judge owns stock in the parent corporation of a controlled subsidiary that is a party or
`owns stock in a controlled subsidiary and its parent corporation is a party.
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`Canon 3C(1) of the Code of Conduct for United States Judges provides that:
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`(1) A judge shall disqualify himself or herself in a proceeding in
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`which the judge’s impartiality might reasonably be questioned, including
`but not limited to instances in which:
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`* * *
`(c) the judge knows that the judge, individually or as a
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`fiduciary, or the judge’s spouse or minor child residing in the
`judge’s household, has a financial interest in the subject matter in
`controversy or in a party to the proceeding, or any other interest
`that could be affected substantially by the outcome of the
`proceeding.
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`Canon 3C(3)(c) defines a “financial interest” as “ownership of a legal or equitable
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`interest, however small.” The provision enumerates exceptions to the definition,
`including ownership in a mutual or common investment fund; the proprietary interest of
`a policy-holder in a mutual insurance company, or a similar proprietary interest, where
`the outcome of the proceeding could not substantially affect the value of the interest;
`and ownership of government securities, where the outcome of the proceeding could
`not substantially affect the value of the securities. None of these exceptions directly
`apply, and the Committee does not consider the situation at issue to be analogous to
`the exceptions. See also Advisory Opinion Nos. 26 (“Disqualification Based on Holding
`Insurance Policy from Company that is a Party”) and 49 (“Disqualification Based on
`Financial Interest in Member of a Trade Association”).
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`The Committee concludes that under the Code the owner of stock in a parent
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`corporation has a financial interest in a controlled subsidiary. Therefore, when a judge
`knows that a party is controlled by a corporation in which the judge owns stock, the
`judge should recuse. See Canon 3C(3)(c). When a parent company does not own all
`or a majority of stock in the subsidiary, the judge should determine whether the parent
`has control of the subsidiary. The Committee advises that the 10% disclosure
`requirement in Fed. R. App. P. 26.1 is a benchmark measure of parental control for
`recusal purposes. However, if the judge owns stock in the subsidiary rather than the
`parent corporation, and the parent corporation appears as a party in a proceeding, the
`judge must recuse only if the interest in the subsidiary could be substantially affected by
`the proceeding. Id.
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`Case 1:18-cv-00966-CFC-CJB Document 995-5 Filed 12/02/22 Page 6 of 6 PageID #: 38419
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`Guide to Judiciary Policy, Vol. 2B, Ch. 2
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`Page 75
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`In closing, the Committee notes that recusal decisions are also governed by the
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`recusal statutes, 28 U.S.C. §§ 455 and 144, and the case law interpreting them.
`Although the Committee is not authorized to render advisory opinions interpreting
`§§ 455 and 144, Canon 3C of the Code closely tracks the language of § 455, and the
`Committee is authorized to provide advice regarding the application of the Code.
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`December 2017
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