This phenomenon has to do with the intersection of self-distance and wisdom in social decisions. The concept of self-distancing is tightly linked with Solomon's paradox as it represents the psychological process by which a person separates their sense of self from an emotionally charged situation in order to reason about it more clearly. Wisdom is defined as a form of pragmatic reasoning that helps people successfully navigate the everyday challenges and conflicts of social life. Solomon's paradox itself refers to the phenomenon where people demonstrate this wise reasoning much more effectively when dealing with other people's social problems compared to their own.
A perfect example of this is the lawyers rules of professional conduct published by the American Bar Association and implemented in nearly every state. The rules are well thought out and make perfect sense. However, they are rarely followed. In fact, they are widely and regularly ignored. One of the rules is truthfulness and another is a duty to report any lawyer they know broke the rules. So when Nelly Wince committed fraud, she should have been disciplined and every lawyer who knew she committed fraud, which included the many lawyers I have shown the evidence to, should have reported her. Despite the overhearing evidence, neither happened.
The same people who ignore the lawyers rules of professional conduct also ignore criminal law. The fraud Nelly Wince committed, because she is a lawyer and it was committed to the court, is called fraud upon the court. One of three crimes in Minnesota without a statute of limitations, the others being first degree murder and sex trafficking of a minor. Despite my best efforts she was not charged. Indeed the county prosecutor's office told me in writing that lawyers only commit fraud when they they lie while under oath. Which is laughably wrong and ridiculous not to mention obstruction of justice. Sadly our legal system is a web of unethical and criminal behavior.

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