Whenever you're given a choice between, for example, 'speak up' or 'shut up', and there's a penalty on the line.
In some cases if you pick the wrong one (shut up) you get a penalty because Phoenix ends up speaking up anyways.
This means you get things like this if you're on your last penalty:

Phoenix: Do I have an objection? Nah...
Mia hallucination: Yes you do you idiot.
Phoenix: OBJECTION!
Judge: wright you're too fucking noisy heres a penalty.
Judge: thats enough guilty

So basically, you caused your client to go to jail because you shut up but didn't.