leading the way - Commercial Law League Of America
leading the way - Commercial Law League Of America
leading the way - Commercial Law League Of America
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THE RESOURCE FOR BANKRUPTCY,<br />
COLLECTIONS AND DEBT RECOVERY<br />
d e b t 3<br />
Vol. 22 • Issue No. 2<br />
March/April 2007<br />
IN THIS ISSUE<br />
Me…Buy Debt?<br />
You Must Be Joking<br />
Public Relations for Professionals<br />
Risks and Responsibilities<br />
of Local Counsel<br />
Motivation at Work<br />
CLLA Ed-YOU-cation<br />
ethical<br />
considerations<br />
in Light of <strong>the</strong> Recent<br />
E-Discovery Amendments<br />
to <strong>the</strong> Federal Rules<br />
LEADING THE WAY
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY<br />
mission statement<br />
The Mission of <strong>the</strong> <strong>League</strong> is:<br />
• To be <strong>the</strong> pre-eminent source of professional services.<br />
• To promote <strong>the</strong> highest standards of professionalism.<br />
• To foster economic opportunities for its members<br />
in service to <strong>the</strong> credit industry.<br />
objectives<br />
The Objectives of <strong>the</strong> <strong>League</strong> are:<br />
• To elevate <strong>the</strong> standard and improve <strong>the</strong> practice of <strong>Commercial</strong> <strong>Law</strong>.<br />
• To encourage an honorable course of dealing among its members<br />
and in <strong>the</strong> profession at large.<br />
• To promote uniformity of legislation in matters affecting<br />
<strong>Commercial</strong> <strong>Law</strong>.<br />
• To foster among its members a feeling of fraternity and<br />
mutual confidence.<br />
2007<br />
SCHEDULE OF MEETINGS<br />
July 19-22, 2007<br />
CLLA Future Planning and Leadership Conference<br />
Royal Pacific Resort at Universal Orlando ~ Orlando, FL<br />
Sponsored by <strong>the</strong> Sou<strong>the</strong>rn Region<br />
October 11, 2007<br />
CLLA Annual Breakfast and Education Program at NCBJ<br />
The National Conference of Bankruptcy Judges 81st Annual Conference<br />
Orlando Marriott World Center ~ Orlando, FL<br />
October 12, 2007<br />
Western Region Meeting “Collections 2007”<br />
The Hilton Hotel ~ Universal City, CA<br />
Sponsored by <strong>the</strong> Western Region Members’ Association<br />
November 8-11, 2007<br />
87th New York Meeting<br />
Sheraton New York Hotel & Towers ~ New York, New York<br />
Sponsored by <strong>the</strong> Eastern Region Members’ Association
A Preferred mailing address ❑ <strong>Of</strong>fice ❑ Home<br />
___________________________________________________________________________________ Date of Birth ____/____/____<br />
Name (Membership is personal. No firm/corporate memberships.)<br />
___________________________________________________________________________________________________________<br />
Firm/Company/<strong>Law</strong> School<br />
___________________________________________________________________________________________________________<br />
Firm/Company/School Address City/State/Zip Code (5 + 4)<br />
___________________________________________________________________________________________________________<br />
Home Address City/State/Zip Code (5 + 4)<br />
____________________________ ____________________________ _____________________________<br />
Work Phone Fax Home Phone<br />
_______________________________________________<br />
E-mail Address<br />
_______________________________________________________<br />
Internet Address (URL)<br />
_______________________________________________________________________________________________________________________<br />
Referred By CLLA Member - OPTIONAL<br />
City/State<br />
Applicant Data (for <strong>League</strong> Records)<br />
Admitted to Bar _______________________________________________________________________________________________<br />
Jurisdiction(s), Bar Number(s) and Date(s)<br />
Graduate/Attendee<br />
of______________________________________________________________________________________________________________________<br />
<strong>Law</strong> School Name<br />
City/State<br />
B<br />
Membership<br />
Basis of Eligibility (check one)<br />
■ <strong>Law</strong>yer - Solo or with Firm<br />
■ <strong>Law</strong>yer - Company<br />
■ Manager - <strong>Law</strong> Firm <strong>Commercial</strong> Department<br />
■ <strong>Law</strong> List/Legal Directory<br />
■ Agency or Bureau Representative (Please call <strong>League</strong> <strong>Of</strong>fice for<br />
supplemental application)<br />
■ Paralegal, Collector, <strong>Of</strong>fice Administrator in member law firm<br />
■ Private Bankruptcy Trustee - Currently serving or have served<br />
within 2 years prior to date of application<br />
■ Public Accountant<br />
■ Equipment Lessor<br />
■ Real Property Lessor<br />
■ Turnaround Manager<br />
■ Banker/Lender<br />
Dues Table (check one)<br />
■ Regular<br />
Dues<br />
U.S., Canadian and International Applicants $295<br />
■ Special “Short Term” Rate<br />
Dues<br />
U.S., Canadian and International Applicants under 31 $130<br />
years of age or admitted to bar under 6 years (4 year limit)<br />
Special Status Eligibility & Rate<br />
If not eligible for o<strong>the</strong>r categories, check one below<br />
Optional Memberships & Contributions<br />
(in addition to dues listed above)<br />
■ Bankruptcy Section $ 80<br />
■ Creditors’ Rights Section $ 80<br />
■ Young Members’ Section $ 35<br />
■ Sustaining Membership $ 25<br />
■ Fund for Public Education $ 30<br />
Dues<br />
■ <strong>Law</strong> Professor/Teacher $ 50<br />
■ Editor, Legal Periodical $ 50<br />
■ <strong>Law</strong> Clerk $ 50<br />
■ <strong>Law</strong> Student $ 10<br />
■ Bankruptcy Judge<br />
Waived<br />
■ U.S.Trustee (not private trustee)<br />
Waived<br />
C I authorize you to charge $_________to my ❑ I have enclosed a check for $___________________<br />
❑ VISA ❑ MasterCard ❑ AMEX ❑ Discover<br />
Account Number__________________________________________________________________ Expiration ________________________<br />
Signature of Applicant ______________________________________________________________ Date ____________________________<br />
Note: make all checks or money orders payable in U.S. dollars and drawn on a U.S. bank to: <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® .The price of an annual subscription<br />
to members of <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® for <strong>the</strong> quarterly <strong>Commercial</strong> <strong>Law</strong> Journal ($12) and an annual subscription to <strong>the</strong> bimonthly <strong>Commercial</strong> <strong>Law</strong><br />
Bulletin ($18) is included in a member’s dues.<br />
All applicants must remit one full year’s dues with application based on eligibility status. Dues are applied as of and prorated to <strong>the</strong> date application is<br />
received.Your name will be published as an Applicant for membership.The period for objections to be filed extends to <strong>the</strong> end of <strong>the</strong> calendar month following <strong>the</strong><br />
date of publication. If no objection is received by that time, you will become a full member of <strong>the</strong> <strong>League</strong> and will be sent your New Member Handbook.<br />
Send first year’s dues and completed application to: <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® , 70 East Lake Street, Suite 630, Chicago, IL 60601.<br />
Phone: (312) 781-2000 Fax: (312) 781-2010 E-mail: clla@clla.org Internet Site: www.clla.org<br />
This is <strong>the</strong> official publication of <strong>the</strong> CLLA dues fee schedule as required by <strong>the</strong> CLLA Constitution.<br />
D3
contents<br />
Vol. 22 • Issue No. 2<br />
March/April 2007<br />
REMINDER:<br />
Please pay<br />
National<br />
Membership<br />
Dues<br />
Debt 3 (ISSN 0888-8000) is published bi-monthly by <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® , 70 E. Lake Street, Suite<br />
630, Chicago, IL 60601; (312) 781-2000. POSTMASTER: Send address changes to Debt 3 70 E. Lake Street, Suite 630,<br />
Chicago, IL 60601. Periodicals postage paid at Chicago, Illinois and additional mailing office.<br />
Copyright ©2006 by <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® . Permission to reprint materials in Debt 3 may be<br />
granted on written request to <strong>the</strong> Editor at <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> offices.<br />
The views and conclusions expressed in articles are those of <strong>the</strong> authors and are not necessarily those of <strong>the</strong><br />
Editorial Board, or of <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® ; nor should any advertisement be considered an<br />
endorsement of <strong>the</strong> product or service involved.<br />
The price of an annual subscription to members of <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong>® ($18.00) is included<br />
in <strong>the</strong>ir dues. Annual subscription to o<strong>the</strong>rs is $65.00 per year in <strong>the</strong> U.S. and Canada, $70.00 elsewhere. Single<br />
copy price is $15.00. Write <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® , 70 E. Lake Street, Suite 630, Chicago, IL 60601;<br />
(312) 781-2000.<br />
8<br />
features 8 Ethical Considerations in Light of <strong>the</strong> Recent<br />
E-Discovery Amendments to <strong>the</strong> Federal Rules<br />
14 Me… Buy Debt? You Must be Joking<br />
league views 5 The President’s Page<br />
42 Viewpoint by David Watson<br />
marketing 16 PR ~ Public Relations for Professionals<br />
practice aid 22 Risks & Responsibilities of Local Counsel<br />
leadership 26 Motivation at Work ~ Making an <strong>Of</strong>fer <strong>the</strong>y Can’t Refuse!<br />
league business 30 CLLA EDYOUCATION • ABC Report<br />
member news 34 Member Benefits • Newly Admitted Members • Among Our Members<br />
14<br />
16 26<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY
You can expect<br />
results when<br />
you talk<br />
to leaders<br />
debt 3<br />
readers are <strong>the</strong>ir company’s key decision makers:<br />
82%<br />
74%<br />
89%<br />
are involved in <strong>the</strong> purchasing process and make<br />
<strong>the</strong> final purchasing decisions.<br />
are partner/owner/president/chair/CEOs.<br />
of Debt 3 readers have recommended, specified or approved<br />
<strong>the</strong> purchase of products and services, including:<br />
• Computer/office software, e.g. collection, bankruptcy, organizational<br />
• <strong>Law</strong> office automation services<br />
• Legal support services, e.g. skip tracers, auctioneers,<br />
process server services<br />
• <strong>Of</strong>fice supplies and equipment<br />
• Online information services<br />
Source: 2004 Debt 3 Independent Reader Survey<br />
For more information on how your company<br />
can target this exclusive audience, contact:<br />
Mark V. Matz<br />
Newcomb Marketing Solutions<br />
70 East Lake Street, Suite 630<br />
Chicago, IL 60601<br />
PHONE: 312.422.1653<br />
FAX: 312.781.20a0<br />
E-mail: markm@newcombsolutions.com<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY
about clla<br />
Vol.<br />
22 • Issue No. 2<br />
March/April 2007<br />
meeting notices<br />
CLLA Future Planning and<br />
Leadership Conference<br />
Orlando, Florida<br />
July 19-22, 2007<br />
CLLA Annual Breakfast and<br />
Education Program at NCBJ<br />
Orlando, Florida<br />
October 11, 2007<br />
Western Region Meeting<br />
“Collections 2007”<br />
Universal City, California<br />
October 12, 2007<br />
87th New York Meeting<br />
New York, New York<br />
November 8-11, 2007<br />
editorial staff<br />
Board of Associate Editors<br />
Elliott D. Levin, Chair, Indianapolis, IN<br />
Leonard M. Salter, Chair Emeritus, Boston, MA<br />
David A. Rubin, Vice Chair, Toronto, ON<br />
Manuel Newburger, Vice Chair, Austin, TX<br />
Richard G. Baumann, Los Angeles, CA<br />
<strong>Law</strong>rence C. Brown, Buffalo, NY<br />
Harry W. Greenfield, Cleveland, OH<br />
Nancy Hamilton, Cleveland, OH<br />
Lee M. Mendelson, Atlanta, GA<br />
David A. Rubin, Toronto, ON<br />
Robert Schatzman, Miami, FL<br />
William C. Sturm, Milwaukee, WI<br />
Editor Emeritus<br />
Leo E. Smith, Chicago, IL<br />
Editor<br />
David R. Watson<br />
Design/Publication Consultants<br />
Newcomb Marketing Solutions<br />
Editing Director<br />
Paige E. Barr<br />
officers and board of governors<br />
President<br />
Sidney Friedman, Baltimore, MD<br />
President-Elect<br />
Wanda Borges, Syosset, NY<br />
Treasurer<br />
Charles R. “Rick” Johanson, III, Birmingham, AL<br />
Recording Secretary<br />
P. George Eliades, II, Hopewell, VA<br />
Immediate Past President<br />
Jerry Myers, Raleigh, NC<br />
Board Members<br />
David R. Gamache, St. Louis, MO<br />
Joel H. Klein, San Antonio, TX<br />
Gary Weiner, Springfield, MA<br />
Ernest V. Thomas, III, Cincinnati, OH<br />
Robert S. Levy, Commack, NY<br />
Brian S. Behar, Aventura, FL<br />
John M. Birk, Gainesville, FL<br />
Robert P. Ingold, Buffalo, NY<br />
B. Emory Potter, Atlanta, GA<br />
Dan Hogan, Waukesha, WI<br />
Cathy S. Pike, Louisville, KY<br />
Jeff E. Rubin, Miami (Coral Gables), FL<br />
Executive Vice President<br />
David R. Watson<br />
<strong>the</strong> CLLA mission<br />
To be <strong>the</strong> pre-eminent source<br />
of professional services<br />
To promote <strong>the</strong> highest standards<br />
of professionalism and<br />
To foster economic opportunities<br />
for its members in service<br />
to <strong>the</strong> credit industry<br />
<strong>the</strong> CLLA objectives<br />
To elevate <strong>the</strong> standards and improve<br />
<strong>the</strong> practice of <strong>Commercial</strong> <strong>Law</strong>.<br />
To encourage an honorable course<br />
of dealing among its members and in<br />
<strong>the</strong> profession at large.<br />
To promote uniformity of legislation in<br />
matters affecting <strong>Commercial</strong> <strong>Law</strong>.<br />
<strong>the</strong> vision of DEBT 3<br />
To promote a reading resource along with a<br />
tool kit which will promote and advance <strong>the</strong><br />
recovery of debt, including collections and<br />
bankruptcy, with a primary emphasis on<br />
commercial and a secondary emphasis on<br />
retail so that readers become more successful<br />
as a professional, leader, manager and a person.<br />
To foster among its members a feeling<br />
of fraternity and mutual confidence.<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY<br />
<strong>League</strong> members and o<strong>the</strong>r readers are invited to submit previously unpublished articles on commercial practice or topics relating to<br />
<strong>the</strong> general practice of law. Articles should be submitted electronically via e-mail or by disk. The preferred format is Microsoft Word<br />
or plain text. WordPerfect is accepted but not preferred. All articles will be promptly reviewed. Send articles to clla@clla.org. Disks<br />
or manuscripts can be sent to Editor, Debt 3 , 70 E. Lake Street; Suite 630; Chicago, IL 60601. The phone is 312-781-2000 or<br />
800-978-2552. The fax number is 312-781-2010.
president’s page<br />
President, <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ®<br />
Farewell Comments<br />
My abbreviated nine month term is over just as I am<br />
“hitting stride” and feeling comfortable. I suspect<br />
my predecessors, even with full one year calendar<br />
terms, had similar feelings. Probably just as well to end now,<br />
on a positive note, ra<strong>the</strong>r than stay on too long, make a strategically<br />
bad decision and wear out my welcome. Presidents are<br />
wise to exit early ra<strong>the</strong>r than too late.<br />
Fortunately, we have much to be thankful for, and little to regret.<br />
You, <strong>the</strong> reader, and my fellow members, can set <strong>the</strong> record<br />
straight if you disagree with my conclusions and ruminations by<br />
writing to me directly or <strong>the</strong> editor of Debt 3 for fur<strong>the</strong>r discussion.<br />
I am sure we would enjoy <strong>the</strong> dialogue. Now some<br />
thoughts and thanks regarding <strong>the</strong> past year and our future.<br />
Thank goodness Dave Watson, our Executive Vice President,<br />
signed on for five years. He is a young, energetic and visionary<br />
leader (as I have often noted) and is <strong>the</strong> heart and soul of<br />
<strong>the</strong> reborn CLLA. He will provide <strong>the</strong> consistency we need, as<br />
Presidents, Boards of Governors, and o<strong>the</strong>r volunteer members<br />
come and go. Make sure he is happy and satisfied. The dividends<br />
will exceed whatever we pay him.<br />
Dave is blessed with good front office employees: Paula Lucas<br />
and Leslie Campbell who run <strong>the</strong> Chicago office for Dave<br />
enabling him to work from home most days and help care for<br />
his elderly parents. Paula and I have worked toge<strong>the</strong>r at many<br />
trade shows where we have waved <strong>the</strong> “CLLA flag.” She is a<br />
good “public face” and someone who makes friends for us at<br />
those conferences.<br />
Dave and <strong>the</strong> CLLA are fortunate to have Suzanne Spohr and<br />
Dick Schascheck of TSO as our principal liaisons for back end<br />
operations, enabling us to reduce full time office staff. Suzanne<br />
coordinates and arranges meetings and conferences with our<br />
volunteers from <strong>the</strong> regions and sections. Dick handles<br />
accounting and finance duties, but he brings more than that to<br />
<strong>the</strong> job as Dave Watson has reminded me on many occasions.<br />
His behind <strong>the</strong> scenes comments and sage advice on a variety<br />
of issues, and willingness to move projects forward (i.e. Dave<br />
Watson’s bonus plan) elevate him to trusted advisor.<br />
Our decision to eliminate <strong>the</strong> Annual Summer Convention,<br />
limit major national conferences to Fall (New York) and Spring<br />
(Chicago), and restructure our major conferences to make<br />
<strong>the</strong>m more member friendly, have caused attendance to<br />
increase at both meetings. I predict attendance swelling to 750<br />
and possibly 1,000 in <strong>the</strong> future. Sometimes less is more.<br />
Not only has attendance at our major conferences increased,<br />
but we are experiencing gains in CLLA membership, thanks to<br />
new membership drives. Advertising exhibitor revenue is also<br />
growing. Chicago exhibitor booths increased from twelve to<br />
twenty this year, almost doubling.<br />
Speaking of numbers, have you noticed a larger number of<br />
agencies attending our Fall and Spring conferences? Check out<br />
<strong>the</strong> Thursday “Meet and Greet” and Friday Triadic Agency<br />
Luncheon if you doubt my powers of observation.<br />
Better budget planning and controls plus increased revenue has<br />
and will enable us to continue projects which enhance <strong>the</strong><br />
<strong>League</strong>’s attractiveness internally and externally: computer<br />
database update, making roster and <strong>League</strong> activity of members<br />
available at <strong>the</strong> push of a computer button to all of us, a<br />
transition to educational seminar materials on CD ra<strong>the</strong>r than<br />
on paper, continuation of outstanding education seminars with<br />
paid guest speakers, podcasts, tele-seminars, testifying before<br />
Congress, retention of our lobbyist, Dave Goch, with his timely<br />
legislative updates from Washington, are among many projects<br />
that enhance our public image and sustain membership.<br />
We are fortunate to have a strong core of volunteer leadership,<br />
which distinguishes us from o<strong>the</strong>r bar and trade groups. Our<br />
volunteers organize, energize and motivate our various sections<br />
and regions. Membership in <strong>the</strong> sections and regions allows<br />
each of us to belong to smaller groups, which cater to <strong>the</strong> particular<br />
or parochial needs of our members, whe<strong>the</strong>r <strong>the</strong>y are<br />
bankruptcy attorneys, collection attorneys, agencies, or our<br />
various geographical regions.<br />
A new committee, focusing on consumer collections, is planning<br />
for <strong>the</strong> creation of a consumer collection section to meet<br />
<strong>the</strong> needs of our members who have segued into that arena to<br />
increase <strong>the</strong>ir business opportunities. The creation of a possible<br />
new section focusing on retail needs of our members is an<br />
example of my belief that <strong>the</strong> CLLA can be a big tent, and one<br />
-stop shopping forum for <strong>the</strong> entire credit industry. We should<br />
view ourselves as home to commercial and retail collections,<br />
bankruptcy, agencies, debt buyers, credit grantors and any<br />
o<strong>the</strong>r segment of <strong>the</strong> credit industry. We should even consider<br />
re-naming and re-branding ourselves as CLLA: Home to <strong>the</strong><br />
Entire Credit Industry. Perhaps <strong>the</strong> strategic planning conference,<br />
chaired by President Wanda Borges, will consider this<br />
when <strong>the</strong>y meet in Orlando, Florida this Summer to map out<br />
<strong>the</strong> future of our <strong>League</strong>.<br />
I end my term with an air of optimism for <strong>the</strong> future. We<br />
enjoy sound finances, harmony among our various constituencies,<br />
and solid ideas for our future. A few years ago, such a<br />
statement would have been ridiculed.<br />
It has been an honor to represent your <strong>League</strong> as President, to<br />
work with our dedicated professionals and volunteers, from<br />
those who serve on <strong>the</strong> Board of Governors to <strong>the</strong> various sections,<br />
regions and committees, and to proudly carry our “flag”<br />
into <strong>the</strong> credit community. It was an enriching experience for<br />
me and my wife, Fran, who was my constant companion<br />
throughout this adventure. I turn <strong>the</strong> reins over to Wanda<br />
Borges, our new President, satisfied that she has a solid foundation<br />
for her term. Wanda is energetic and bright. Our<br />
<strong>League</strong> will be in good hands under her stewardship for <strong>the</strong><br />
next year. Good luck, Wanda.<br />
Sidney S. Friedman is an attorney<br />
with <strong>the</strong> law firm of Weinstock,<br />
Friedman & Friedman, PA. He can<br />
be reached at 410-559-9000 or<br />
ssf@weinstocklegal.com.<br />
NETWORKING<br />
5Debt3 March/April 2007
Patron FUND<br />
The CLLA Patron Fund provides an excellent means for CLLA members to<br />
give something back to <strong>the</strong>ir association.<br />
The Fund was established in 1963 and has a proud tradition of supporting <strong>the</strong> <strong>League</strong> and its endeavors.<br />
Patron Fund contributions create a financial reservoir that allows <strong>the</strong> <strong>League</strong> to underwrite worthy<br />
projects without <strong>the</strong> need for special fund drives. Patron Fund grants have been used to finance a<br />
variety of programs and projects that benefit our members and increase <strong>the</strong> overall visibility and viability<br />
of <strong>the</strong> <strong>League</strong>. In recent years, grants have been awarded to:<br />
✱ <strong>the</strong> CLLA Bankruptcy Section ✱ <strong>the</strong> <strong>Commercial</strong> Collection Agency Association ✱<br />
✱ <strong>the</strong> Membership Development Committee ✱ <strong>the</strong> <strong>League</strong>’s Legislative Writer ✱<br />
✱ <strong>the</strong> DePaul Business & <strong>Commercial</strong> <strong>Law</strong> Journal ✱<br />
✱ <strong>the</strong> CLLA to underwrite <strong>the</strong> expenses of <strong>League</strong> Counsel ✱<br />
✱ <strong>the</strong> CLLA to underwrite <strong>the</strong> cost of having a Liaison between <strong>the</strong> <strong>League</strong> and <strong>the</strong> NCBJ ✱<br />
✱ <strong>the</strong> CLLA to establish <strong>the</strong> ABC Commission ✱<br />
All <strong>League</strong> members are invited to join this esteemed group of colleagues by simply completing <strong>the</strong><br />
pledge form below. Your pledge is a meaningful <strong>way</strong> to demonstrate your commitment to <strong>the</strong><br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® .<br />
Contributing companies or firms are recognized by publication in <strong>the</strong> Patron Roster and by special<br />
designation as Patrons on conference badges for <strong>the</strong>ir members.<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY<br />
Return <strong>the</strong> completed<br />
form below to:<br />
CLLA<br />
36404 Treasury Center<br />
Chicago, IL<br />
60694-6400<br />
Phone:<br />
312.781.2000<br />
Fax:<br />
847.526.3993<br />
COMMERCIAL LAW LEAGUE OF AMERICA ®<br />
PATRON FUND PLEDGE FORM<br />
Please include my name among <strong>the</strong> esteemed list of colleagues that support <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® as a<br />
Patron of <strong>the</strong> <strong>League</strong>. I understand that <strong>the</strong> minimum pledge to <strong>the</strong> Fund as established by <strong>the</strong> CLLA Board of Governors is $150.00.<br />
I also understand that my membership will appear by firm name when published in <strong>the</strong> Patron Fund Roster.<br />
❏<br />
OR<br />
❏<br />
I am enclosing my check made out to CLLA in <strong>the</strong> amount of $_____________________________.<br />
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ethical<br />
considerations<br />
in Light of <strong>the</strong> Recent E-Discovery<br />
Amendments to <strong>the</strong> Federal Rules<br />
8Debt3 March/April 2007<br />
by Carolyn M. Branthoover and Karen I. Marryshow
Electronic communications and devices have changed <strong>the</strong> <strong>way</strong> we live and work. As<br />
those changes have occurred, litigants and courts have struggled with <strong>the</strong> application<br />
of traditional discovery rules to ever-evolving forms of electronically stored information.<br />
On December 1, 2006, several important amendments to <strong>the</strong> Federal Rules of Civil Procedure took<br />
effect. These amendments explicitly modify discovery procedures to address electronically stored information<br />
or “ESI.” In particular, <strong>the</strong> changes impose express obligations on parties to preserve, disclose<br />
and produce ESI. While much already has been written about <strong>the</strong> direct impact of <strong>the</strong>se changes on<br />
<strong>the</strong> discovery process, lawyers must also consider thoughtfully how <strong>the</strong> recent amendments affect <strong>the</strong>ir<br />
ethical obligations.<br />
The recent amendments to <strong>the</strong> Federal Rules impact <strong>the</strong> ethical obligations of lawyers in a number<br />
of respects, but <strong>the</strong> focus of this Alert is on three such impacts. First, a lawyer’s fundamental duty of<br />
competence now extends more clearly to encompass competency regarding electronic technology,<br />
including <strong>the</strong> electronic capabilities of one’s clients. Second, a lawyer’s obligation to act diligently<br />
and promptly in representing a client now encompasses <strong>the</strong> prompt identification and preservation<br />
of a client’s electronically stored information. Third, a lawyer’s obligations as <strong>the</strong> recipient of inadvertently<br />
produced privileged documents are heightened by <strong>the</strong> “clawback” amendments to Rule 26.<br />
Each of <strong>the</strong>se areas of increased professional responsibility is fur<strong>the</strong>r explained and discussed below.<br />
Heightened Competency Requirements<br />
Rule 1.1 of <strong>the</strong> ABA Model Rules of Professional Conduct (“Model Rules”) requires that “[a] lawyer shall<br />
provide competent representation to a client. Competent representation requires <strong>the</strong> legal knowledge, skill,<br />
thoroughness and preparation necessary for <strong>the</strong> representation.” 1 This competency requirement already has been<br />
recognized by <strong>the</strong> courts as extending to <strong>the</strong> knowledge, skill, thoroughness and preparation necessary to engage<br />
in <strong>the</strong> discovery of electronically stored information. 2 The recent amendments to <strong>the</strong> Federal Rules, however,<br />
bring into sharper focus <strong>the</strong> extent to which counsel’s competency requirements now extend to ESI. By <strong>the</strong>se<br />
amendments, parties are now obligated (i) even before receipt of a discovery request, to advise opposing parties<br />
of <strong>the</strong> description and location of electronically stored information supportive of its claims or defenses [Fed. R.<br />
Civ. P. 26(a)(1)]; (ii) to confer regarding any issues related to <strong>the</strong> disclosure or discovery of electronically stored<br />
information [Fed. R. Civ. P. 26(f)]; and (iii) to appropriately distinguish between electronically stored information<br />
that is reasonably accessible from that which is not [Fed. R. Civ. P. 26(b)]. Moreover, counsel of record<br />
shares responsibility with her client for compliance with <strong>the</strong>se obligations [Fed. R. Civ. P. 26(f)].<br />
Several years ago, in a series of groundbreaking decisions in Zubulake v. UBS Warburg LLC, District Judge<br />
Scheindlin of <strong>the</strong> United States District Court for <strong>the</strong> Sou<strong>the</strong>rn District of New York analyzed, in great detail,<br />
discovery obligations related to <strong>the</strong> production of e-mail records. 3 Judge Scheindlin’s decisions set <strong>the</strong> standards<br />
by which electronic discovery practices, including counsel’s obligations to supervise and monitor discovery, are<br />
now often judged; and those standards are incorporated in many respects into <strong>the</strong> recently amended Federal<br />
Rules. With respect to attorney competency, Zubulake V made clear that a lawyer’s competency extends to<br />
(continued on page 10)<br />
1 The ABA Model Rules<br />
serve as <strong>the</strong> model for<br />
ethics rules in 47 states<br />
and <strong>the</strong> District of<br />
Columbia. The three<br />
states in which <strong>the</strong><br />
Model Rules are not<br />
followed are California,<br />
Maine and New York.<br />
The ethics rules in <strong>the</strong>se<br />
three states, however,<br />
similarly include a<br />
basic competency<br />
requirement.<br />
2 See, e.g. G.T.F.M., Inc.<br />
v. Wal-Mart Stores, Inc.,<br />
2000 U.S. Dist. LEXIS<br />
3804 (S.D.N.Y. 2000)<br />
(court-imposed<br />
monetary sanctions<br />
on Wal-Mart for<br />
electronic discovery<br />
abuses and fur<strong>the</strong>r<br />
findings that “counsel’s<br />
inquiries about<br />
defendant’s computer<br />
capacity were certainly<br />
deficient.”).<br />
3 Judge Scheindlin issued<br />
seven (7) published<br />
opinions in <strong>the</strong> Zubulake<br />
case. The most<br />
frequently cited are<br />
Zubulake v. UBS Warburg<br />
LLC, 220 F.R.D. 212<br />
(S.D.N.Y. 2003) (referred<br />
to as “Zubulake IV”) and<br />
Zubulake v. UBS Warburg<br />
LLC, 229 F.R.D. 422<br />
(S.D.N.Y. 2004) (referred<br />
to as “Zubulake V”).<br />
9Debt3 March/April 2007
ethical<br />
considerations<br />
in Light of <strong>the</strong> Recent E-Discovery<br />
Amendments to <strong>the</strong> Federal Rules<br />
(continued from page 9)<br />
Debt 3 March/April 2007<br />
10<br />
4 Zubulake V, 229 F.R.D.<br />
at 432.<br />
5 2005 WL 674885<br />
(Fla. Cir.Ct. 2005).<br />
6 Coleman (Parent)<br />
Holdings, 2005 WL<br />
674885 at *6.<br />
7 Coleman (Parent)<br />
Holdings, 2005 WL<br />
674885 at *10. In a<br />
subsequent proceeding,<br />
counsel, by arguing<br />
that he was deprived<br />
of notice and an<br />
opportunity to be<br />
heard, was successful<br />
in having <strong>the</strong><br />
revocation of his pro<br />
hac vice admission<br />
stricken, Clare vs.<br />
Coleman (Parent)<br />
Holdings, Inc., 928<br />
So.2d 1246 (Fla.2006),<br />
but that is small<br />
comfort given <strong>the</strong> trial<br />
court’s harsh criticism<br />
of counsel’s behavior.<br />
8 Zubulake IV, 220 F.R.D.<br />
at 218.<br />
9 Zubulake V, 229 F.R.D.<br />
at 432.<br />
“becom[ing] fully familiar with her client’s document<br />
retention policies, as well as <strong>the</strong> client’s data retention<br />
architecture.” 4 This same expectation of competency is<br />
now incorporated into <strong>the</strong> requirements of Federal<br />
Rule 26. Thus, lawyers must know how <strong>the</strong>ir clients<br />
create and use electronically stored information; how<br />
<strong>the</strong>y save it; and how it may be deleted or lost – all so<br />
that discoverable ESI can be properly disclosed,<br />
preserved and produced. This may require extensive<br />
investigation by counsel, including interviews of<br />
information technology personnel as well as “key<br />
players” in <strong>the</strong> litigation, but <strong>the</strong>re is no longer any<br />
question that counsel is obligated to become reasonably<br />
knowledgeable about her client’s electronic information<br />
and related technology.<br />
A recent decision underscores <strong>the</strong> considerable risks<br />
faced by counsel should <strong>the</strong>y ignore <strong>the</strong>ir obligation to<br />
be knowledgeable regarding <strong>the</strong>ir clients’ ESI. In<br />
Coleman (Parent) Holdings, Inc. v. Morgan Stanley &<br />
Co., Inc., 5 a Florida state court found that defendant<br />
Morgan Stanley had engaged in numerous discovery<br />
abuses in connection with e-mail production and<br />
imposed one of <strong>the</strong> harshest sanctions available, i.e.,<br />
that an adverse inference instruction be read to <strong>the</strong><br />
jury at trial. Additionally, <strong>the</strong> court found that<br />
Morgan Stanley’s counsel misrepresented <strong>the</strong> cost of<br />
retrieving and producing certain e-mails and allowed<br />
false certificates of discovery compliance to be<br />
submitted to <strong>the</strong> court. The court also criticized<br />
defense counsel for having “carefully crafted” responses<br />
to discovery inquiries so as to avoid disclosure of <strong>the</strong><br />
existence of certain ESI and to avoid “outright lying.” 6<br />
The court was so disturbed by counsel’s involvement in<br />
Morgan Stanley’s “deliberate” and “contumacious”<br />
violation of its discovery obligations that it revoked <strong>the</strong><br />
pro hac vice admission of lead defense counsel. 7<br />
<strong>Law</strong>yers are on notice. Their obligation to provide<br />
competent representation in litigation now encompasses<br />
reasonable knowledge, skill, thoroughness and preparation<br />
regarding a client’s ESI and related technology.<br />
Heightened Diligence<br />
Obligations<br />
Model Rule 1.3 provides that “[a] lawyer shall act with<br />
reasonable diligence and promptness in representing a<br />
client.” Additionally, Model Rule 3.4 requires that a<br />
lawyer shall not “fail to make reasonably diligent effort<br />
to comply with a legally proper discovery request by<br />
an opposing party” and shall not “unlawfully obstruct<br />
ano<strong>the</strong>r party’s access to evidence or unlawfully alter,<br />
destroy or conceal a document or o<strong>the</strong>r material<br />
having potential evidentiary value.” The speed with<br />
which electronically stored information is created and<br />
altered and <strong>the</strong> diversity of computer systems and programs<br />
used to automatically store and delete such<br />
information dramatically impacts a lawyer’s obligations<br />
to act diligently with respect to <strong>the</strong> preservation<br />
of discoverable ESI.<br />
Recently amended Federal Rule 26(b)(1) requires<br />
that all potentially relevant evidence, specifically<br />
including ESI, be preserved. As explained in<br />
Zubulake IV, this obligation attaches at <strong>the</strong> moment<br />
a party reasonably anticipates litigation. At that time,<br />
<strong>the</strong> party “must suspend its routine document “retention/destruction<br />
policy and put in place a ‘litigation<br />
hold’ to ensure <strong>the</strong> preservation of relevant documents.”<br />
8 As fur<strong>the</strong>r explained in Zubulake V, counsel<br />
shares in <strong>the</strong>se obligations and is required to:<br />
• Oversee <strong>the</strong> client’s implementation and<br />
compliance with a “litigation hold” designed<br />
to preserve all relevant evidence;<br />
• Make certain that all sources of potentially<br />
relevant information are identified and placed<br />
“on hold;”<br />
• Become fully familiar with <strong>the</strong> client’s<br />
document retention policies, as well as <strong>the</strong><br />
client’s data retention systems; and<br />
• Take affirmative steps to monitor <strong>the</strong> client’s<br />
production of relevant documents. 9
The Zubulake V court was confronted with <strong>the</strong> defendant’s<br />
failure to preserve a number of relevant e-mail<br />
files. The court was extremely critical of both <strong>the</strong><br />
defendant and its counsel, finding that “counsel failed<br />
to properly oversee UBS in a number of important<br />
<strong>way</strong>s, both in terms of its duty to locate relevant<br />
information and its duty to preserve and timely<br />
produce that information.” 10 Fur<strong>the</strong>r, <strong>the</strong> court concluded<br />
that while “UBS personnel deleted e-mails,<br />
copies of many of <strong>the</strong>se e-mails were lost or belatedly<br />
produced as a result of counsel’s failures.” 11 The price<br />
paid for <strong>the</strong>se failures was steep. The court imposed<br />
sanctions that included an adverse inference instruction<br />
with respect to e-mails deleted and irretrievably<br />
lost and payment of <strong>the</strong> costs of any depositions or redepositions<br />
required by <strong>the</strong> late productions.<br />
The Zubulake V court refrained from imposing sanctions<br />
upon defense counsel, but defense counsel were<br />
not as lucky in Phoenix Four, Inc. v. Strategic Resources<br />
Corp., 2006 U.S. Dist. LEXIS 32211 (S.D.N.Y.<br />
2006). In Phoenix Four, despite notice of pending litigation,<br />
defendants failed to search a number of computer<br />
workstations to determine whe<strong>the</strong>r <strong>the</strong>y contained<br />
information related to <strong>the</strong> litigation. In seeking<br />
sanctions following <strong>the</strong> late production of ESI<br />
amounting to hundreds of boxes of documents, <strong>the</strong><br />
plaintiff claimed that both <strong>the</strong> defendants and <strong>the</strong>ir<br />
counsel had failed to conduct a reasonable and timely<br />
inspection of computers and servers in defendant’s<br />
possession. 12 The court found both defendants and<br />
counsel to have been remiss. With respect to defense<br />
counsel’s behavior in particular, <strong>the</strong> court found that<br />
<strong>the</strong>ir lack of diligence was “grossly negligent” when<br />
<strong>the</strong>y failed to inquire sufficiently of <strong>the</strong>ir client<br />
regarding <strong>the</strong> disposition of office computers. 13 The<br />
court imposed monetary sanctions that it fur<strong>the</strong>r<br />
ordered were to be borne by <strong>the</strong> defendants and <strong>the</strong>ir<br />
counsel equally. 14<br />
The message is clear. ESI presents unique risks of discoverable<br />
information being lost, and <strong>the</strong>se unique<br />
risks heighten <strong>the</strong> diligence required of lawyers to take<br />
immediate action to prevent <strong>the</strong> loss of relevant ESI as<br />
soon as litigation arises or is reasonably anticipated.<br />
Heightened Protection<br />
for <strong>the</strong> Heightened<br />
Risks of Inadvertent<br />
Production<br />
Model Rule 4.4(b) requires that “[a] lawyer who<br />
receives a document relating to <strong>the</strong> representation of<br />
<strong>the</strong> lawyer’s client and knows or reasonably should<br />
know that <strong>the</strong> document was inadvertently sent shall<br />
promptly notify <strong>the</strong> sender.” The risk of inadvertent<br />
production is heightened in <strong>the</strong> context of ESI<br />
simply because <strong>the</strong> sheer volume of ESI produced in<br />
discovery can be massive. In recognition of this heightened<br />
risk, recently amended Federal Rule 26(b)(5)<br />
includes a “clawback” procedure for handling inadvertently<br />
produced information. By this amendment, a<br />
party’s inadvertent production of privileged information<br />
is protected and specific procedures are established<br />
for handling such inadvertent productions. For those<br />
who are required to produce large quantities of ESI<br />
and may have limited time to conduct a thorough privilege<br />
review, <strong>the</strong> “clawback” procedures are an important<br />
new protection.<br />
Model Rule 4.4(b) and Federal Rule 26(b)(5), however,<br />
do not complement each o<strong>the</strong>r well, and this is<br />
an area where fur<strong>the</strong>r developments can be expected.<br />
For example, in today’s digital environment, a party’s<br />
obligations and its counsel’s obligations with respect<br />
to metadata are not clear. Metadata is data about<br />
data. More importantly, it is usually data that is not<br />
apparent on <strong>the</strong> face of a particular record. Metadata<br />
may reflect information about who created a document,<br />
who edited it, when changes were made, and<br />
what changes were made. Parties who receive records<br />
of a type likely to contain metadata are often able to<br />
engage in “metadata mining.” What is not clear is<br />
whe<strong>the</strong>r a party is free to assume that metadata was<br />
intentionally produced (and thus is free to “mine” it<br />
and take advantage of it) or whe<strong>the</strong>r a party must<br />
assume that it was inadvertently produced (and thus,<br />
if privileged, must return it pursuant to <strong>the</strong> “clawback”<br />
provisions of Federal Rule 26(b)(5)).<br />
10 Zubulake V, 220 F.R.D.<br />
at 435.<br />
11 Zubulake V, 229 F.R.D.<br />
at 436.<br />
12 Phoenix Four, 2006<br />
U.S. Dist. LEXIS 32211<br />
at *14-15.<br />
13 Phoenix Four, 2006<br />
U.S. Dist. LEXIS 32211<br />
at *20.<br />
14 Phoenix Four, 2006<br />
U.S. Dist. LEXIS 32211<br />
at *28.<br />
(continued on page 12)<br />
Debt 3 March/April 2007<br />
11
ethical<br />
considerations<br />
in Light of <strong>the</strong> Recent E-Discovery<br />
Amendments to <strong>the</strong> Federal Rules<br />
(continued from page 11)<br />
15 <strong>America</strong>n Bar<br />
Association Formal<br />
Opinion 06-442<br />
(August 5, 2006).<br />
16 Maryland State<br />
Bar Association,<br />
Committee on Ethics,<br />
Opinion 2007-092<br />
(November 2006).<br />
What remains unclear<br />
is whe<strong>the</strong>r <strong>the</strong><br />
Maryland Bar<br />
Association would<br />
reach a different<br />
conclusion if <strong>the</strong><br />
metadata contained<br />
privileged information.<br />
17 New York State<br />
Bar Association,<br />
Committee on<br />
Professional Ethics,<br />
Opinion 749<br />
(December 14, 2001).<br />
18 Florida Bar Association,<br />
Confusing matters fur<strong>the</strong>r, those states that have considered <strong>the</strong> ethical implications of metadata mining have<br />
reached differing conclusions. The Model Rules contain no specific rules prohibiting it, 15 and <strong>the</strong> Maryland<br />
Bar Association has issued an ethics opinion stating that “<strong>the</strong>re is no ethical violation” if a lawyer “reviews or<br />
makes use of <strong>the</strong> metadata without first ascertaining whe<strong>the</strong>r <strong>the</strong> sender intended to include such metadata.” 16<br />
In contrast, however, <strong>the</strong> New York Bar Association has issued an ethics opinion prohibiting lawyers from<br />
“mak[ing] use of computer software applications to surreptitiously ‘get behind’ visible documents or to trace e-<br />
mail.” 17 The Florida Bar Association has reached a conclusion similar to that of New York. 18 With respect to<br />
metadata, <strong>the</strong>refore, counsel’s obligations remain ei<strong>the</strong>r uncharted or dramatically different depending upon<br />
which state’s law applies.<br />
Conclusion<br />
As <strong>the</strong> Zubulake V court cautioned: “Now that <strong>the</strong> key issues have been addressed and national standards are developing,<br />
parties and <strong>the</strong>ir counsel are fully on notice of <strong>the</strong>ir responsibility to preserve and produce electronically<br />
stored information.” 19 Counsel’s obligations in this regard derive from <strong>the</strong>ir ethical obligations to represent a<br />
client’s interests competently and diligently. Those obligations are not new. The world in which <strong>the</strong>y apply,<br />
however, has changed dramatically and will continue to do so. Counsel, in order to satisfy <strong>the</strong>ir ethical obligations<br />
and <strong>the</strong> newly amended Federal Rules are required to stay abreast of those changes.<br />
Ms. Branthoover is a partner of Kirkpatrick & Lockhart Preston Gates Ellis LLP and<br />
practices in <strong>the</strong> area of complex commercial litigation, with a particular focus on insurance<br />
coverage matters related to environmental, toxic tort and product liabilities. She has<br />
represented major industrial clients in numerous state and federal courts throughout <strong>the</strong><br />
country.<br />
Ethics Committee<br />
Opinion 06-02<br />
(September 15, 2006).<br />
Carolyn M.<br />
Branthoover<br />
Karen I.<br />
Marryshow<br />
Ms. Marryshow is an associate in <strong>the</strong> litigation group, and practices in <strong>the</strong><br />
e-Discovery Analysis & Technology Group and Records Management practice.<br />
19 Zubulake V, 229 F.R.D.<br />
at 440.<br />
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Me…Buy Debt?<br />
Y O U M U S T B E J O K I N G<br />
by David G. Rosenberg, President, CEO and Founder of Unifund<br />
Why would someone sell bad debt and<br />
why would a collection law firm want to<br />
buy it? If you happen to look on eBay<br />
you find millions of items which have value to prospective<br />
buyers but <strong>the</strong> owners are “done with <strong>the</strong>m.” The same is<br />
true in <strong>the</strong> debt purchasing marketplace. Essentially, buyers<br />
buy debt, or buy on eBay, when <strong>the</strong>y have spotted a beneficial<br />
opportunity and sellers sell when <strong>the</strong>ir items are no<br />
longer of use to <strong>the</strong>m, i.e., <strong>the</strong> paper reaches <strong>the</strong> end of its<br />
productive life for its current owner. There IS STILL<br />
VALUE in <strong>the</strong> item up for bid, just less value than when <strong>the</strong><br />
item was brand new. Remember that you too can find<br />
those opportunities in <strong>the</strong> debt buying marketplace as you<br />
read <strong>the</strong> following overview of <strong>the</strong> benefits to both buyers<br />
and sellers.<br />
Debt 3 March/April 2007<br />
14
Benefits to Sellers<br />
The sale of delinquent account receivable portfolios has<br />
attractions for both buyers and sellers. Sellers can be<br />
grouped into two general categories: original creditors and<br />
resellers. Original creditors typically benefit by increasing<br />
<strong>the</strong>ir cash flow in an immediate and effective <strong>way</strong> and most<br />
originators will admit that cash flow is <strong>the</strong> driving factor in<br />
<strong>the</strong> timing of <strong>the</strong> sale of <strong>the</strong>ir portfolios. Resellers typically,<br />
but not al<strong>way</strong>s, are collection agencies who resell debt<br />
once <strong>the</strong>y are “done” collecting on <strong>the</strong> paper or decide to<br />
sell at <strong>the</strong> point when it is equally as cost effective to liquidate<br />
<strong>the</strong> portfolio as it is to perform fur<strong>the</strong>r collection<br />
efforts (when accounting for factors such as time, staffing<br />
and o<strong>the</strong>r resources), essentially a “break-even” point. A<br />
third type of reseller also buys paper from originators and<br />
<strong>the</strong>n segments those national portfolios into smaller files<br />
which are <strong>the</strong>n attractive to regional, state and local buyers.<br />
Original creditors may choose to sell <strong>the</strong>ir accounts receivable,<br />
ra<strong>the</strong>r than collect <strong>the</strong>m in-house or refer <strong>the</strong>m to an<br />
agency because <strong>the</strong>y believe that <strong>the</strong> sale of <strong>the</strong> debt reduces<br />
<strong>the</strong>ir legal liability. With <strong>the</strong> publicity generated by court<br />
cases in which creditors have been held liable for collection<br />
agency practices, today’s environment is one in which some<br />
creditors would ra<strong>the</strong>r terminate <strong>the</strong>ir legal connections to<br />
agencies and debtor accounts. Many creditors believe that<br />
selling <strong>the</strong>ir debt resolves any agency related legal liability<br />
because <strong>the</strong> buyer becomes <strong>the</strong> owner of <strong>the</strong> debt.<br />
Creditors may also sell <strong>the</strong>ir paper in order to maintain a<br />
good relationship with <strong>the</strong> debtor. Creditors can distance<br />
<strong>the</strong>mselves from <strong>the</strong> collection process and hope to keep <strong>the</strong><br />
debtor as a current or potential future customer. (A defaulted<br />
credit card customer may still be a debit card, banking<br />
or mortgage customer of a bank and <strong>the</strong> bank may not<br />
want to lose those relationships.) Creditors may also sell<br />
when <strong>the</strong>y feel <strong>the</strong> market has priced <strong>the</strong>ir debt at an “indifference<br />
price,” <strong>the</strong> price at which it is a break-even to sell<br />
today verses expected collections on <strong>the</strong> accounts for <strong>the</strong><br />
foreseeable future. Whe<strong>the</strong>r it is <strong>the</strong> original creditor or <strong>the</strong><br />
fourth buyer of an account, a seller will sell when <strong>the</strong>y feel<br />
<strong>the</strong>y have extracted maximum value from <strong>the</strong>ir investment<br />
or when <strong>the</strong> paper no longer fits <strong>the</strong>ir business model.<br />
Benefits to Buyers<br />
Collection law firms can benefit substantially from purchasing<br />
accounts receivable. By utilizing a variety of collection<br />
methods, skilled collection personnel and a broad<br />
range of techniques, considerable profit can be made. Some<br />
particularly profitable debts include charged-off consumer<br />
credit card accounts, consumer loans, dishonored checks<br />
and judgments. <strong>Of</strong>ten, debt buyers can purchase <strong>the</strong>se<br />
types of loans at pennies on <strong>the</strong> dollar and recover <strong>the</strong>ir<br />
investment and much more in about three years. This type<br />
of profit margin has made purchasing delinquent accounts<br />
receivables an attractive option for collection law firms.<br />
Today, collection organizations of all types are feeling<br />
increasing pressure to ei<strong>the</strong>r consider buying or to increase<br />
<strong>the</strong> percentage of debt <strong>the</strong>y buy verses contingency. By purchasing<br />
delinquent debt portfolios, buyers are able to take a<br />
longer view of <strong>the</strong> collection horizon verses <strong>the</strong> “sprinters<br />
mentality” needed in order to maximize collections during<br />
shorter placements. Also, collection law firms realize <strong>the</strong><br />
value of combining contact collection strategies with legal<br />
collection strategies in order to achieve maximum portfolio<br />
yield by liquidating different parts of a portfolio using<br />
different methods.<br />
<strong>Of</strong>ten, firms are restricted by <strong>the</strong>ir clients as to <strong>the</strong> type of<br />
payment plans or terms that <strong>the</strong>y can offer debtors. In contrast,<br />
when law firms own accounts, <strong>the</strong>y can be more flexible<br />
in <strong>the</strong> terms <strong>the</strong>y will accept and can pursue debts more<br />
enthusiastically without <strong>the</strong> time limitations set by original<br />
creditors. Firms that purchase debt are no longer subject to<br />
<strong>the</strong> normal administrative reporting and remitting expenses<br />
required in traditional third-party collections.<br />
Operationally, “placed accounts” drive a firm to meet and<br />
exceed a client’s service level agreements for activity, not necessarily<br />
meeting or exceeding results. Debt purchasing<br />
allows <strong>the</strong> buyer to invest disproportionately in <strong>the</strong> accounts<br />
with <strong>the</strong> highest potential return on investment over time.<br />
In fact, many legal collection firms are buying “litigationready”<br />
portfolios where <strong>the</strong> debtor account has an asset, typically<br />
a home. These accounts are placed immediately into<br />
a legal process with no “collection floor” time or effort and<br />
are viewed as more efficient to collect upon.<br />
Debt buying also gives a measure of comfort and insurance<br />
for those who augment <strong>the</strong>ir contingency business with a<br />
healthy dose of purchased debt. Call it an insurance policy<br />
against potentially o<strong>the</strong>r lost business because, with purchased<br />
debt you control <strong>the</strong> workflow, you don’t worry<br />
about getting “fired” or face a total recall of a placement<br />
and your profit margins should significantly improve as<br />
well. Besides, with purchased debt you get to keep all <strong>the</strong><br />
money instead of sending most of it back to <strong>the</strong> client AND<br />
you can sell <strong>the</strong> portfolio once you feel you have extracted<br />
your maximum value.<br />
If you do decide to buy and sell…<br />
The buyer and seller should pursue <strong>the</strong> transaction realizing<br />
that <strong>the</strong>re is some inherent risk for both parties. As a<br />
buyer you will want to mitigate <strong>the</strong> risks and create <strong>the</strong><br />
environment for a mutually profitable experience. By not<br />
“rubbing it in” that ei<strong>the</strong>r side is getting <strong>the</strong> better or worse<br />
end of <strong>the</strong> deal, both parties can create <strong>the</strong> professional<br />
dialogue, results and atmosphere which will lead to additional<br />
successful future transactions.<br />
David G. Rosenberg,<br />
Chairman and CEO, Founder<br />
The Unifund Group<br />
In 1986, David Rosenberg<br />
established The Unifund<br />
Group as one of <strong>the</strong> first<br />
companies to purchase<br />
underperforming and<br />
distressed consumer<br />
receivables. Over <strong>the</strong> past<br />
20 years,The Unifund Group<br />
has developed proprietary<br />
tools and invested heavily in<br />
technology which allows it<br />
to evaluate, purchase and<br />
liquidate diverse portfolios<br />
of obligations from a broad<br />
variety of originating<br />
institutions and resellers.<br />
The companies which<br />
comprise The Unifund Group<br />
work under various forms<br />
of joint venture, participation<br />
and management agreements<br />
to maximize portfolio<br />
recoveries from both<br />
wholly-owned portfolios<br />
and portfolios owned by<br />
o<strong>the</strong>r institutions.<br />
Mr. Rosenberg has written<br />
many published articles<br />
regarding consumer debt,<br />
and he is <strong>the</strong> author of a<br />
manual issued by <strong>the</strong><br />
<strong>America</strong>n Collectors<br />
Association (ACA) entitled<br />
How to Buy Bad Debt.<br />
He is a frequent speaker<br />
at industry trade shows<br />
on <strong>the</strong> subject of buying<br />
and selling distressed<br />
consumer receivables.<br />
Debt 3 March/April 2007<br />
15
marketing<br />
Is it important that prospective<br />
clients see you as an expert in<br />
your field?<br />
Is it important to be an influential<br />
voice with governmental bodies,<br />
courts, and <strong>the</strong> business<br />
community?<br />
Does having your name<br />
mentioned positively in<br />
professional journals and<br />
news outlets helps to build your<br />
professional credibility?<br />
Then public relations<br />
(PR for short) should be<br />
a keystone in your<br />
PRmarketing plans.<br />
PUBLIC RELATIONS<br />
FOR PROFESSIONALS<br />
by Kelly Newcomb, Newcomb Marketing Solutions<br />
PR is often misunderstood. It may conjure up <strong>the</strong> notion<br />
of political “spin doctors,” Hollywood image consultants,<br />
or <strong>the</strong> proverbial “publicity hound.” PR has been used to<br />
manipulate, stretch, and even bury <strong>the</strong> truth. However,<br />
while PR has had some ra<strong>the</strong>r bad PR over <strong>the</strong> years, for <strong>the</strong><br />
most part it is a positive and powerful force in business and<br />
society. It can build businesses, build careers, and educate<br />
<strong>the</strong> public.<br />
Debt 3 March/April 2007<br />
16<br />
At <strong>the</strong> heart of any professional public-relations effort<br />
should be a strong underlying passion to educate public<br />
opinion, provide intellectual dialogue, inform colleagues<br />
and competitors, and speak <strong>the</strong> truth as you know it. If <strong>the</strong><br />
object of your publicity campaign is to garner recognition<br />
and respect for your company and your personal “brand,”<br />
<strong>the</strong>n <strong>the</strong> best <strong>way</strong> to do it is to deliver <strong>the</strong> goods.
marketing<br />
Information, education, and reasonable opinions are al<strong>way</strong>s<br />
in short supply, but <strong>the</strong>y are <strong>the</strong> stock and trade of most<br />
professional media. If you can deliver it, <strong>the</strong>y will publish<br />
it. Especially if you can send pictures!<br />
PR is a valuable marketing tool that can be superior to<br />
advertising, because it is based on third-party influence,<br />
endorsement and acceptance. In o<strong>the</strong>r words, if o<strong>the</strong>rs have<br />
heard what you have to say, found it worthwhile, and<br />
published it <strong>the</strong>n you are not “blowing your own horn.”<br />
PR builds brand value, communicates messages, and develops<br />
your identity in <strong>the</strong> market place. And compared to<br />
advertising, <strong>the</strong> production and placement costs are lower.<br />
However, advertising and PR often have a symbiotic<br />
relationship. In o<strong>the</strong>r words, <strong>the</strong> publisher who runs your<br />
space ads on a frequent basis may consider your press releases<br />
more newsworthy than say a press release from someone<br />
with whom he or she has never been previously acquainted.<br />
PR is so important that it should be strategically managed<br />
in <strong>the</strong> same <strong>way</strong> that operations, finance, administration,<br />
technology, human resources and o<strong>the</strong>r facets of your business<br />
are managed.<br />
In addition to publishing in professional journals and trade<br />
magazines, PR can take many o<strong>the</strong>r forms including,<br />
broadcast media relations, speeches and presentations,<br />
newsletters, public service announcements, internal or<br />
employee communications, sponsorship of special events<br />
and/or trade shows, charitable programs and sponsorships,<br />
crisis communications, letters to editors, white papers, case<br />
studies, and press releases to community newspapers.<br />
THE PRESS RELEASE<br />
Perhaps <strong>the</strong> simplest and most common tool of PR is <strong>the</strong><br />
press release. It is important to remember that many things<br />
you, your employees, or company do are newsworthy.<br />
Stories about gaining a new client, speaking at a major trade<br />
show or association meeting, helping at a charity event,<br />
providing commentary at government functions, being elected<br />
to board membership or becoming a board executive,<br />
developing a new product or service, hiring and promoting<br />
employees, and celebrating anniversaries are newsworthy to<br />
trade publications and local business sections or magazines.<br />
If your business or organization isn’t finding something<br />
newsworthy for a press release at least once a month, you<br />
are missing a great marketing resource. You may wonder<br />
who reads all those little news snippets you see in <strong>the</strong><br />
columns of your local magazines and newspapers? Well,<br />
everyone at some time or ano<strong>the</strong>r. Haven’t you? Every time<br />
a client, prospective client, prospective employee, or business<br />
associate sees your name or your company’s name in<br />
print, it helps build your reputation, your brand and your<br />
business’ success.<br />
Collecting press releases and publishing <strong>the</strong>m on your web<br />
site is a good <strong>way</strong> of developing an online history of your<br />
company’s recent activity. This provides a great source of<br />
positive information for people who are using your web site<br />
to learn more about your company.<br />
THE NEW IMPORTANCE<br />
OF BLOGGING<br />
The term “blog” is derived from “Web log.” Like an ongoing,<br />
online diary of you or your company’s opinions and<br />
activities, a blog can be used both internally, to enhance <strong>the</strong><br />
communication and culture within your company, or<br />
externally to maintain an ongoing relationship with clients,<br />
to draw positive attention to your business, and to communicate<br />
with prospects, colleagues, <strong>the</strong> media and o<strong>the</strong>rs you<br />
wish to influence.<br />
If you haven’t familiarized yourself with <strong>the</strong> world of<br />
“blogging” yet, you should at least make yourself aware of<br />
how quickly this online tool is growing and how influential<br />
it is becoming. As of November 2006, blog search engine<br />
Technorati was tracking nearly 60 million blogs. Blogs are<br />
beginning to influence media and government at <strong>the</strong> highest<br />
levels. Several recent scandals in congress were brought<br />
to <strong>the</strong> public’s attention by bloggers.<br />
PROFESSIONAL ARTICLES<br />
AND SPEECHES<br />
An old saying in <strong>the</strong> academic world—“publish or perish”—also<br />
applies to <strong>the</strong> business and legal world. Both<br />
publishing and public speaking are ideal <strong>way</strong>s to get recognition<br />
for your knowledge, skills, and accomplishments—<br />
all attributes that new clients are looking for in a business<br />
partner or advisor.<br />
If you haven’t published before, it is easier than you might<br />
think. Start by looking at <strong>the</strong> topics in <strong>the</strong> professional<br />
magazines and journals you read and start thinking about<br />
article ideas that would fit <strong>the</strong> editorial content of <strong>the</strong>se<br />
publications. Once you have a topic, it is not much different<br />
than doing a college paper on <strong>the</strong> subject. You’ll need<br />
to do some research, keep track of your references, and<br />
express your opinion. If your personal writing skills are<br />
weak, put a draft toge<strong>the</strong>r and let someone with stronger<br />
skills edit and improve <strong>the</strong> article. <strong>Of</strong>ten professionals hire<br />
freelance ghost writers to do most of <strong>the</strong> work for <strong>the</strong>m. If<br />
you have <strong>the</strong> content expertise and experience, you need<br />
not actually write <strong>the</strong> article, just sit for an interview with<br />
<strong>the</strong> writer and <strong>the</strong>n edit <strong>the</strong> writer’s draft to make sure <strong>the</strong><br />
content is accurate and conforms to your own ideas and<br />
opinions.<br />
Giving a speech may be even easier than getting published,<br />
especially if you have expertise in areas that you can share<br />
with less experienced colleagues. Professional organizations<br />
like <strong>the</strong> CLLA and o<strong>the</strong>rs are frequently looking for volunteers<br />
to speak at meetings and conventions. Since many<br />
studies have shown that fear of public speaking ranks nearly<br />
as high as fear of death, volunteers are not al<strong>way</strong>s easy to<br />
come by.<br />
I personally thought I would never be able to speak in public,<br />
however in <strong>the</strong> last couple of years I have started giving<br />
professional speeches and found it much easier than I<br />
dreamed it would be. I recently spoke in front of a group of<br />
600 small business owners and didn’t feel any more nervous<br />
(continued on page 18)<br />
PR is a valuable<br />
marketing tool<br />
that can be<br />
superior to<br />
advertising,<br />
because it is<br />
based on<br />
third-party<br />
influence,<br />
endorsement<br />
and acceptance.<br />
In o<strong>the</strong>r words,<br />
if o<strong>the</strong>rs have<br />
heard what you<br />
have to say,<br />
found it<br />
worthwhile,<br />
and published it<br />
<strong>the</strong>n you are not<br />
“blowing your<br />
own horn.”<br />
Debt 3 March/April 2007<br />
17
marketing<br />
PR<br />
(continued from page 17)<br />
PUBLIC RELATIONS<br />
FOR PROFESSIONALS<br />
than if I had been speaking in front of a dozen people. For<br />
me, <strong>the</strong> secret to getting over my fear was threefold: 1.) to<br />
admit from <strong>the</strong> outset to <strong>the</strong> audience that I was nervous—<br />
this helps relieve my fear of failure, and often draws a<br />
chuckle from <strong>the</strong> audience; 2.) to speak on a subject that I<br />
know very well so that I can follow an outline without trying<br />
to memorize anything; and, 3.) to get off <strong>the</strong> podium<br />
and walk among <strong>the</strong> audience focusing my attention on <strong>the</strong><br />
individuals who I make eye contact with as I move. This<br />
latter technique helps me feel like I am talking to individuals<br />
in a small class ra<strong>the</strong>r than to a large crowd.<br />
THE FIVE GREATEST<br />
STRENGTHS OF PR<br />
To sum it up, public relations has five great strengths over<br />
o<strong>the</strong>r forms of marketing, <strong>the</strong>y are:<br />
CREDIBILITY—Because you are not directly “purchasing”<br />
<strong>the</strong> time and attention of your audience, someone at a<br />
publication, media outlet, special event or a leader within<br />
an organization has tacitly endorsed <strong>the</strong> validity of your<br />
message.<br />
TIMELY—Announcements can be developed on a very<br />
tight schedule. Newspapers, association newsletters, and<br />
trade magazines must be published regularly and <strong>the</strong>y are<br />
al<strong>way</strong>s on <strong>the</strong> lookout for breaking news. A blog or o<strong>the</strong>r<br />
Internet-based PR program can be created and delivered in<br />
a matter of hours.<br />
TARGETED—PR can be highly targeted to <strong>the</strong> appropriate<br />
audience of decision makers. A proper mix of such<br />
diverse audiences as customers, employees, investors, partners<br />
and suppliers can be specifically targeted based on<br />
where and when <strong>the</strong> PR is delivered.<br />
COST EFFECTIVE—While <strong>the</strong> development cost and<br />
tracking of PR can be expensive and time consuming, it is a<br />
fraction of what can be spent developing ads and buying<br />
space or media time to run <strong>the</strong>m.<br />
CUMULATIVE POWER—Story ideas, speeches, and content<br />
can be reformulated and utilized again and again.<br />
Written reprints, text references and Web archives all help<br />
a single story last for months or even years. Reprints of a<br />
published article can also be mailed directly to targeted<br />
audiences.<br />
With some 13,000 individual magazine titles published in<br />
<strong>the</strong> United States, and thousands of professional meetings,<br />
conventions, and association events each year, <strong>the</strong>re are<br />
innumerable <strong>way</strong>s to deliver newsworthy stories, educational<br />
pieces and well-reasoned opinion. PR has <strong>the</strong> unique<br />
ability to tell stories that resonate within a narrowly focused<br />
interest group. The more information and value you can<br />
deliver to a particular audience, <strong>the</strong> more credibility and<br />
name recognition you will gain. And, that’s not only good<br />
for your business, it’s good for everyone with whom you<br />
communicate.<br />
Kelly Newcomb, President of Newcomb<br />
Marketing Solutions has been helping organizations<br />
with strategic planning, development of<br />
client-loyalty programs, and <strong>the</strong> execution of<br />
marketing campaigns for more than seventeen<br />
years. He also owns and facilitates Can Do!<br />
Success Building Programs designed to help organizations improve<br />
organizational culture and effectiveness, team-building, brand<br />
development, sales and communications. He can be reached at<br />
kelly@candosuccess.com or at 1-800-921-1221.<br />
Debt 3 March/April 2007<br />
18
LEND A HAND<br />
and help lead <strong>the</strong> <strong>way</strong><br />
• Education<br />
• Government Affairs<br />
• Marketing<br />
• Meetings<br />
• Membership<br />
• Fair Debt Collection<br />
Practices Act<br />
• Forwarders & Receivers<br />
• Web Site Design Development<br />
& Maintenance<br />
• Professional Responsibility<br />
Please submit this request immediately.<br />
To: Sidney S. Friedman<br />
Weinstock, Friedman &<br />
Friedman, PA<br />
4 Reservoir Circle<br />
Executive Centre, 2nd Floor<br />
Baltimore, Maryland 21208<br />
Fax: 410-559-9009<br />
CC: CLLA;<br />
70 E. Lake Street,<br />
Suite 630<br />
Chicago, IL 60601;<br />
Fax: 312-781-2010<br />
YES! I want to join a committee.<br />
My committee choices are:<br />
1._______________________________________________________<br />
2._______________________________________________________<br />
3._______________________________________________________<br />
NAME<br />
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ADDRESS<br />
PHONE<br />
FAX<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY
MEETINGNEW YORK<br />
87th<br />
SAVE THE DATE<br />
November 8-11, 2007<br />
Sheraton New York Hotel & Towers<br />
Sponsored by <strong>the</strong><br />
Eastern Region Members’ Association<br />
All <strong>the</strong> best you’ve come to expect<br />
will be available to you in New York!<br />
• Top notch education<br />
• Numerous networking events<br />
including Warren’s Famous Martini &<br />
Margarita Bars … an elegant dessert<br />
party … <strong>the</strong> Annual Brunch, and more!<br />
• Just plain NYC fun with a Broad<strong>way</strong><br />
Show … and special YMS Event!<br />
Questions?<br />
Contact<br />
Edward J. Friedman<br />
Chair, Eastern Region<br />
Weinstock, Friedman & Friedman, PA<br />
Phone: 410-559-9000<br />
Email: ef@weinstocklegal.com<br />
Or<br />
Warren Pinchuck – Arrangements Chair,<br />
Eastern Region<br />
The Columbia Directory Co., Inc.<br />
Phone: 800-648-1914<br />
Email: warren@columbialist.com<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY<br />
70 E. Lake Street,<br />
Suite 630<br />
Chicago, IL 60601<br />
312.781.2000<br />
www.clla.org
practice aid<br />
Although many law firms have offices in multiple states<br />
and thus enjoy broad geographic reach, it remains common<br />
for lawyers to hire lawyers in o<strong>the</strong>r jurisdictions to<br />
act as local counsel in litigation. Local counsels’ roles vary widely.<br />
A local counsel may be nothing more than a “mail drop.”<br />
Alternatively, local counsel may appear in court and engage in<br />
discovery without participation by <strong>the</strong> out-of-state firm hiring<br />
<strong>the</strong>m. Although lawyers hiring local counsel investigate to some<br />
extent <strong>the</strong> firms <strong>the</strong>y hire before doing so, and most local counsel<br />
check out <strong>the</strong>ir potential co-counsel and client before agreeing<br />
to serve, and everyone checks for conflicts of interest, <strong>the</strong>se relationships<br />
none<strong>the</strong>less hold <strong>the</strong> potential for sanctions, malpractice<br />
liability, and professional discipline.<br />
Perhaps <strong>the</strong> <strong>leading</strong> case on <strong>the</strong> potential professional liability of<br />
local counsel is Macawber Engineering, Inc. v. Robson & Miller, 47<br />
F.3d 253 (8th Cir. 1995). In that case, Macawber retained <strong>the</strong><br />
New York law firm of Robson & Miller to defend it in a<br />
Minnesota case. Robson & Miller in turn engaged Steven Hedges<br />
of <strong>the</strong> Minnesota firm of Abdo & Abdo as local counsel. After filing<br />
motion for admission pro hac vice on behalf of Robson &<br />
Miller, Hedges was not actively involved in <strong>the</strong> litigation. The<br />
plaintiff in <strong>the</strong> underlying case, Red Rock, eventually served<br />
Robson & Miller with over 100 requests for admission. Red Rock<br />
did not serve <strong>the</strong> requests on Hedges. Robson & Miller did not<br />
respond to <strong>the</strong> requests and Red Rock later moved for summary<br />
judgment based on <strong>the</strong> facts accordingly admitted. Macawber<br />
ultimately confessed judgment for just over $67,000. The firm<br />
<strong>the</strong>n sued Robson & Miller, Hedges and Abdo & Abdo for legal<br />
malpractice in failing to respond to <strong>the</strong> requests for admission.<br />
The district court granted summary judgment for Hedges and his<br />
firm when Macawber’s expert was unable to articulate that standard<br />
of care applicable to a reasonable lawyer acting as local<br />
counsel. Id. at 255. Macawber appealed to <strong>the</strong> Eighth Circuit.<br />
Debt 3 March/April 2007<br />
22<br />
RISKS &<br />
RESPONSIBILITIES<br />
OF LOCAL COUNSEL<br />
by Douglas R. Richmond
practice aid<br />
The Eighth Circuit affirmed, reasoning that that <strong>the</strong> negligent<br />
conduct about which Macawber complained was<br />
beyond <strong>the</strong> scope of its attorney-client relationship with<br />
Abdo & Abdo. Macawber’s retention letter to Hedges stated<br />
that <strong>the</strong> company wished to “confirm our appointment of<br />
your firm as our local counsel in support of litigating attorneys,<br />
Robson & Miller,” in <strong>the</strong> Red Rock case. Id. at 256.<br />
Macawber’s CEO testified that he relied on Robson &<br />
Miller to handle <strong>the</strong> Red Rock litigation and to direct local<br />
counsel’s activities. Robson & Miller lawyers testified that<br />
Abdo & Abdo’s role was limited and that <strong>the</strong> firm did<br />
everything asked of it. The court concluded that <strong>the</strong> attorney-client<br />
relationship between Macawber and Abdo &<br />
Abdo “was limited in scope and did not encompass a duty<br />
to monitor <strong>the</strong> discovery process and ensure responses to<br />
<strong>the</strong> requests for admissions.” Id.. at 257.<br />
Macawber countered by pointing to a District of<br />
Minnesota local rule requiring non-resident lawyers to<br />
associate with a member of <strong>the</strong> Minnesota bar before<br />
appearing in any action or proceedings before <strong>the</strong> court,<br />
and stating that local counsel must “participate” in <strong>the</strong><br />
matter for which <strong>the</strong>y are retained. The Eighth Circuit<br />
deferred to <strong>the</strong> district court’s interpretation of <strong>the</strong> rule. As<br />
interpreted by <strong>the</strong> district court, <strong>the</strong> rule did not require<br />
Hedges to monitor <strong>the</strong> discovery process.<br />
The court in Macawber stated that “[l]ocal counsel does<br />
not automatically incur a duty of care with regard to <strong>the</strong><br />
entire litigation. When <strong>the</strong> client vests lead counsel with<br />
primary responsibility for <strong>the</strong> litigation, <strong>the</strong> duty of local<br />
counsel is limited.” Id. (quoting Ortiz v. Barrett, 278<br />
S.E.2d 833 (Va. 1981)). As <strong>the</strong> court explained:<br />
Were <strong>the</strong> law o<strong>the</strong>rwise, <strong>the</strong> costs involved in retaining<br />
local counsel would increase substantially.<br />
Confronted with a duty to monitor lead counsel’s<br />
handling of <strong>the</strong> litigation, local counsel would be<br />
bound to review all manner of litigation documents<br />
and ensure compliance with all deadlines. Out-ofstate<br />
litigants would be forced to pay a local attorney<br />
to review lead counsel’s work. Given <strong>the</strong> skyrocketing<br />
costs of litigation, <strong>the</strong> duplication of effort and<br />
increased fees that would result from such a rule foster<br />
problematic public policy. Though some litigants<br />
may choose to enter a representation agreement<br />
which includes extensive duties for local counsel,<br />
Minnesota law does not (and should not) require<br />
<strong>the</strong>m to do so.<br />
Id. at 257-58 (footnote omitted).<br />
The West Virginia Supreme Court of Appeals followed Macawber in Armor v. Lantz, 535<br />
S.E.2d 737 (W. Va. 2000). The court in Armor, however, tempered its adherence with an<br />
explanation of some professional responsibilities on <strong>the</strong> part of local counsel. While<br />
acknowledging that local counsel may contractually limit <strong>the</strong>ir duties, <strong>the</strong> court explained<br />
that local counsel may not contract a<strong>way</strong> those responsibilities “expressly or impliedly<br />
imposed by <strong>the</strong> relevant rules of practice pertaining to <strong>the</strong> association of local counsel.”<br />
Id. at 749. Local counsel must, for example, ensure that out-of-state lawyers with whom<br />
<strong>the</strong>y associate are qualified for pro hac vice admission. Under West Virginia rules <strong>the</strong>y<br />
must attend all hearings, trials and depositions, sign all p<strong>leading</strong>s, and be a responsible<br />
lawyer in <strong>the</strong> matter for which <strong>the</strong>y are engaged in all o<strong>the</strong>r respects.<br />
The courts in Macawber and Armor took decidedly limited views of <strong>the</strong> role and responsibilities<br />
of local counsel. On <strong>the</strong> o<strong>the</strong>r side of <strong>the</strong> coin is this view articulated several years<br />
earlier by an Ohio federal court:<br />
Although <strong>the</strong> term “local counsel” at one time may have meant less responsibility on <strong>the</strong><br />
part of <strong>the</strong> attorneys so designated, it is clear to <strong>the</strong> court, and should be clear to every<br />
lawyer who litigates in this country, that . . . developments in <strong>the</strong> law have invalidated<br />
this prior meaning. The trend is, properly, a<strong>way</strong> from <strong>the</strong> view that some counsel have<br />
only limited responsibility and represent a client in court in a limited capacity, or that<br />
<strong>the</strong> local counsel is somewhat less <strong>the</strong> attorney for <strong>the</strong> client than is lead counsel.<br />
In modern day practice, all counsel signing p<strong>leading</strong>s and appearing in a case are fully<br />
accountable to <strong>the</strong> court and <strong>the</strong>ir clients for <strong>the</strong> presentation of <strong>the</strong> case. The Federal<br />
Rules of Civil Procedure and Local Rules for <strong>the</strong> Nor<strong>the</strong>rn District of Ohio do not recognize<br />
any lawyers as less than full advocates for <strong>the</strong>ir clients. The law makes no distinction,<br />
as to <strong>the</strong> liability of lawyers signing p<strong>leading</strong>s, between those who are designated<br />
“lead” or “local” counsel. Federal Rule of Civil Procedure 11 places stringent obligations<br />
on all counsel signing p<strong>leading</strong>s, however designated.<br />
Gould, Inc. v. Mitsui Mining & Smelting Co., 738 F. Supp. 1121, 1125 (N.D. Ohio 1990).<br />
O<strong>the</strong>r courts hold similarly broad views of local counsel’s potential liability. See, e.g., Ingemi<br />
v. Pelino & Lentz, 866 F. Supp. 156, 161-63 (D.N.J. 1994).<br />
Which of <strong>the</strong>se views is likely to prevail in a particular case? In <strong>the</strong> absence of controlling<br />
authority in <strong>the</strong> jurisdiction, <strong>the</strong> wise course is to presume that <strong>the</strong> views articulated by<br />
<strong>the</strong> courts in Gould and Ingemi will carry <strong>the</strong> day. To be sure, local counsel are not guarantors<br />
of <strong>the</strong> conduct of <strong>the</strong> out-of-state lawyers who engage <strong>the</strong>m; local counsel typically<br />
must have some involvement in <strong>the</strong> alleged misconduct for responsibility to lie. See,<br />
e.g., Masone v. Levine, 887 A.2d 1191, 1197 (N.J. Super. Ct. App. Div. 2005) (declining<br />
to hold local counsel liable for misrepresentation by out-of-state counsel where local counsel<br />
did not know true facts). But even limited involvement—such as signing p<strong>leading</strong>s or<br />
discovery responses containing false statements of fact or law—potentially provides a sufficient<br />
basis for sanctions or professional discipline.<br />
If you agree to serve as local counsel, <strong>the</strong>re are some fundamental steps you should take to<br />
reduce your professional liability and responsibility risks. First, conduct your<br />
standard conflicts of interest check. The fact that you are going to be local counsel ra<strong>the</strong>r<br />
than lead counsel does not alter any conflict analysis. See Gould, 738 F. Supp. at 1125<br />
(discussing client consent). Second, investigate <strong>the</strong> firm and prospective client for whom<br />
(continued on page 24)<br />
Debt 3 March/April 2007<br />
23
practice aid<br />
RISKS & RESPONSIBILITIES<br />
OF LOCAL<br />
COUNSEL<br />
(continued from page 23)<br />
you are being asked to serve as local counsel, and make sure<br />
you are comfortable with <strong>the</strong> nature of <strong>the</strong> matter in which<br />
you will be involved. There may be firms, lawyers or<br />
clients with which you simply do not wish to be affiliated,<br />
and <strong>the</strong> matter may be one that you do not have <strong>the</strong> expertise<br />
to handle, even as local counsel. Third, make sure you<br />
understand <strong>the</strong> obligations under local court rules that you<br />
will be assuming by appearing in <strong>the</strong> matter. Fourth, draft<br />
an appropriate engagement letter and be sure to send it to<br />
<strong>the</strong> client—not just to <strong>the</strong> out-of-state law firm that<br />
approached you. Define <strong>the</strong> scope of your representation,<br />
keeping in mind that you cannot disclaim obligations<br />
imposed by rules of procedure, local court rules, or ethics<br />
rules. See Armor, 535 S.E.2d at 749-50. If local rules<br />
impose responsibilities on you that out-of-state counsel or<br />
<strong>the</strong> client may not anticipate, such as your mandatory<br />
appearance at all court proceedings or depositions, make<br />
<strong>the</strong>m aware of <strong>the</strong>se obligations so that <strong>the</strong>y do not balk at<br />
your involvement, or, perhaps more importantly, recoil in<br />
anger upon receiving your related bills. Fifth, do not agree<br />
to do things with which you are uncomfortable on <strong>the</strong> basis<br />
that you are merely local counsel. For example, if you are<br />
going to sign a p<strong>leading</strong>, read it first. If <strong>the</strong>re are statements<br />
in <strong>the</strong> p<strong>leading</strong> that concern you (we are not talking grammar<br />
here) insist that <strong>the</strong> document be suitably revised<br />
before signing.<br />
Certainly, lawyers cannot require clients to indemnify <strong>the</strong>m<br />
for malpractice liability. A question that sometimes comes<br />
up in connection with local counsel representations, however,<br />
is whe<strong>the</strong>r local counsel can require ei<strong>the</strong>r <strong>the</strong> client or<br />
out-of-state law firm to indemnify <strong>the</strong>m against sanctions.<br />
With respect to clients <strong>the</strong> answer clearly is no. See Curtis<br />
v. Meijer, Inc., CIV. A. No. 86-40361, at *2 (E.D. Mich.<br />
Apr. 28, 1987) (refusing to allow indemnification by client<br />
for sanctions); Ass’n of <strong>the</strong> Bar of <strong>the</strong> City of N.Y., Comm.<br />
on Prof’l & Judicial Ethics, Formal Op. 1989-3 (1989)<br />
(same). We think many courts would take <strong>the</strong> same<br />
approach to indemnification agreements between law<br />
firms, though law on this point is admittedly scarce.<br />
Three final thoughts on engaging local counsel, all from<br />
<strong>the</strong> perspective of <strong>the</strong> firm looking for local counsel. First,<br />
do not wait until <strong>the</strong> last minute to file p<strong>leading</strong>s or<br />
respond to discovery if those p<strong>leading</strong>s or discovery<br />
responses require local counsel’s signature. There is al<strong>way</strong>s<br />
a risk that your local counsels’ o<strong>the</strong>r commitments may<br />
limit <strong>the</strong>ir availability on short notice. Second, if you practice<br />
in a big city in your state and are asked, for example,<br />
to defend a large financial services company or manufacturer<br />
in a rural venue in <strong>the</strong> state, consider whe<strong>the</strong>r you<br />
should engage local counsel even though, as a member of<br />
your state’s bar, local counsel is not required. There are<br />
some venues where local counsel can be exceedingly important,<br />
whe<strong>the</strong>r it involves relations with <strong>the</strong> court, relations<br />
with opposing counsel, knowing local witnesses or jurors,<br />
etc. If you are unreasonably “home-towned” in pre-trial<br />
rulings or at trial, your client may wonder what you did to<br />
guard against such unfairness. Third, take advantage of your<br />
local counsels’ knowledge of local practice and procedure.<br />
Consult with <strong>the</strong>m in addition to reading local rules yourself.<br />
The failure to comply with local rules is occasionally disastrous.<br />
See, e.g., Seyler v. Burlington N. Santa Fe Corp., 121<br />
F. Supp. 2d 1352, 1354 (D. Kan. 2000) (faulting plaintiffs’<br />
counsel for not filing reply memorandum which, while not<br />
required by rule, was permitted); Black & Decker (U.S.) Inc.<br />
v. Home Prod. Mktg., Inc., 935 F. Supp. 1010 (N.D. Ill.<br />
1996) (failing to comply with local rule on summary judgment<br />
results in facts being deemed admitted).<br />
Debt 3 March/April 2007<br />
24<br />
Douglas R. Richmond is Senior Vice President in <strong>the</strong> Professional Services Group of Aon Risk Services.<br />
Aon’s Professional Services Group is <strong>the</strong> world’s largest broker of insurance for professional services firms.<br />
Doug consults with Aon’s many large law firm clients on professional responsibility and liability issues. Before<br />
joining Aon in Chicago, Doug was a partner with Armstrong Teasdale LLP in Kansas City, Missouri<br />
(1989-2004), where he had a national trial and appellate practice. In 1998, he was named <strong>the</strong> nation’s top<br />
defense lawyer in an insurance industry poll as reported in <strong>the</strong> publications Inside Litigation and <strong>Of</strong> Counsel.<br />
He is a member of <strong>the</strong> <strong>America</strong>n <strong>Law</strong> Institute (ALI), <strong>the</strong> <strong>America</strong>n Board of Trial Advocates (ABOTA), <strong>the</strong><br />
International Association of Defense Counsel (IADC), and <strong>the</strong> Federation of Defense and Corporate Counsel<br />
(FDCC). Doug has also been selected to The Best <strong>Law</strong>yers in <strong>America</strong> in <strong>the</strong> areas of legal malpractice, personal injury<br />
litigation, and railroad law. In 2003, <strong>the</strong> Euromoney Legal Media Group named him as one of <strong>the</strong> nation’s top insurance and<br />
reinsurance lawyers. He has published roughly 50 articles in university law reviews, and many more articles in o<strong>the</strong>r scholarly<br />
and professional journals. Doug teaches Legal Ethics at <strong>the</strong> Northwestern University School of <strong>Law</strong> and he is a regular National<br />
Institute of Trial Advocacy (NITA) faculty member. He previously taught Trial Advocacy and Insurance <strong>Law</strong> at <strong>the</strong> University of<br />
Kansas School of <strong>Law</strong>, and Insurance <strong>Law</strong> and a seminar on Damages at <strong>the</strong> University of Missouri School of <strong>Law</strong>. Doug earned<br />
his J.D. at <strong>the</strong> University of Kansas, an M. Ed. from <strong>the</strong> University of Nebraska, and his B.S. from Fort Hays State University.
Why should you sponsor <strong>the</strong><br />
19th Annual CLLA Breakfast at <strong>the</strong><br />
National Conference of Bankruptcy Judges?<br />
Sponsorship<br />
Opportunities<br />
COMMERCIAL LAW LEAGUE OF AMERICA<br />
19th ANNUAL BREAKFAST<br />
Thursday, October 11, 2007<br />
In conjunction with<br />
National Conference<br />
of Bankruptcy Judges<br />
Oct. 10-13, 2007<br />
Orlando Marriott World Center<br />
All sponsors will be listed in <strong>the</strong> CLLA Bankruptcy Section<br />
elecctronic newsletter, <strong>the</strong> CLLA publication Debt 3 and<br />
on <strong>the</strong> CLLA website.<br />
LEVEL 1 – $20,000<br />
• Lead placement on all signage/<br />
promotions, including company logo<br />
• Banner on Dais<br />
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• Full Page Back Cover Ad<br />
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LEVEL 2 – $10,000<br />
• Prominent placement on all signage/<br />
promotions, including company logo<br />
• Website Banner Ad<br />
• Inside Back Cover of Educational<br />
Materials 1/2 page ad (full color/bleed)<br />
LEVEL 3 – $5,000<br />
• Promotion in all publications<br />
and handouts<br />
• Company Logo/ Banner<br />
prominently displayed<br />
• Black/White ads in inside cover<br />
of education book<br />
LEVEL 4 – $3,500<br />
• Promotion in all publications<br />
and handouts<br />
• Company Logo/ Banner<br />
prominently displayed<br />
• Black/White ads on sponsor<br />
pages of program materials<br />
1. Because Dave Barry,<br />
humour columnist<br />
is <strong>the</strong> speaker.<br />
2. Because <strong>the</strong> <strong>Law</strong>rence P. King<br />
Award for Excellence in <strong>the</strong> Field of Bankruptcy<br />
will be presented.<br />
3. Because breakfast is <strong>the</strong> most important<br />
meal of <strong>the</strong> day.<br />
This year we bring you <strong>the</strong> profoundly funny humor columnist—<br />
Dave Barry—a syndicated columnist whose work appears in more<br />
than 500 newspapers worldwide.<br />
Who Will See Your Sponsorship?<br />
• The audience consists of a “Who’s Who” of insolvency professionals.<br />
• The CLLA Bankruptcy Section is <strong>the</strong> largest membership Section<br />
of <strong>the</strong> CLLA, with members in every state in <strong>the</strong> US and in more<br />
than 20 countries around <strong>the</strong> world.<br />
• The NCBJ brings in a record number of judges and insolvency<br />
professionals from across <strong>the</strong> US and <strong>the</strong> world.<br />
• NCBJ Annual Conference averages an attendance of more than<br />
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Program averaging between 700 and 800 attendees.<br />
Questions? Paula Lucas c/o CLLA<br />
70 E. Lake St. Suite 630, Chicago, IL 60601<br />
(p) 800.978.CLLA / (f) 312.781.2010<br />
plucas@clla.org / www.clla.org<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY<br />
70 E. Lake Street, Suite 630 • Chicago, IL 60601 • 312.781.2000 • www.clla.org
leadership<br />
MOTIVATION AT WORK<br />
Making an offer <strong>the</strong>y can’t refuse!<br />
by Mike Davids, Newcomb Marketing Solutions<br />
miked@newcombsolutions.com<br />
One of <strong>the</strong> more interesting jobs I have held in my career as a marketing writer was<br />
on an educational research team at <strong>the</strong> University of Chicago Medical Center. Our<br />
goal was to create education programs for patients that motivated <strong>the</strong>m to make<br />
changes to improve <strong>the</strong>ir health.<br />
Doctors often give patients very clear instructions with equally clear outcomes. For example,<br />
a doctor may say, “You need to lose 20 pounds in order to get your blood sugar under<br />
control or I will have to surgically remove your feet.” Or, “You need to quit smoking today,<br />
or you will die within two years.”<br />
You would think that instructions like <strong>the</strong>se would be very hard to ignore and very motivational.<br />
It sounds almost as intimidating as <strong>the</strong> proverbial “offer you can’t refuse.”<br />
Unfortunately, medical studies show that 75 to 90 percent of patients with chronic problems<br />
ignore <strong>the</strong>ir physician’s advice.<br />
How many times have you given employees ultimatums, only to watch <strong>the</strong>m continue to<br />
fail and eventually get fired? Why don’t people do what’s good for <strong>the</strong>m? Why don’t <strong>the</strong>y<br />
do what <strong>the</strong>y’re told? How can <strong>the</strong>y refuse an ultimatum that would seem too serious to<br />
ignore? Have you ever found an ultimatum that turned a bad employee into a good one?<br />
Debt 3 March/April 2007<br />
26<br />
Nationwide, hospitals spend billions of dollars a year on education programs. But insurers<br />
are not willing to cover health-education expenses because research teams have had little<br />
success proving <strong>the</strong>se programs work.
leadership<br />
The research group I worked on at <strong>the</strong> University of<br />
Chicago included a heart surgeon, an endocrinologist, two<br />
Ph.D’s in educational research, a psychologist, a couple of<br />
nurse practitioners and me—a marketing writer. It was <strong>the</strong><br />
idea of my boss, Dr. Wylie McNabb, to add a marketer to<br />
<strong>the</strong> group. He had heard <strong>the</strong> old adage that a good salesman<br />
could “sell ice cubes to Eskimos,” and wanted to see if<br />
it was true. My first assignment was to look at <strong>the</strong> educational<br />
materials and classes that had been developed from<br />
an advertiser’s perspective. He asked me to consider marketing<br />
techniques that would get patients to “buy” in.<br />
At first, I felt like I was in over my head. The information<br />
was clear and so were <strong>the</strong> consequences. But as I spoke<br />
with patients, I began to hear <strong>the</strong> same things again and<br />
again. “What’s <strong>the</strong> use?” “I have lived this <strong>way</strong> for so many<br />
years, I can’t change now.” “But I love cigarettes … or<br />
booze … or fried food … etc.” “I can’t change because my<br />
partner … family … friends … or co-workers, etc. live this<br />
<strong>way</strong> too.”<br />
Patients weren’t motivated to change because <strong>the</strong>y believed<br />
that <strong>the</strong>y couldn’t. And, I believed that <strong>the</strong>re was ano<strong>the</strong>r<br />
problem under <strong>the</strong> surface—<strong>the</strong>y weren’t being given positive<br />
choices. They were given information, ultimatums, and<br />
substitutions.<br />
An advertiser would go out of business trying to sell this<br />
<strong>way</strong>! Just imagine <strong>the</strong> slogans—“Drink Diet Coke, it won’t<br />
make you as fat as regular Coke!” “Drive a Volvo, so that<br />
you won’t die in a crash!” “Come to Disney World. It’s not<br />
as boring as your normal life.” It occurred to me that people<br />
need a strong, positive offer and easy instructions on<br />
how to receive <strong>the</strong> offer.<br />
As we began to structure our educational programs as a<br />
positive marketing offer, <strong>the</strong> results began to change. For<br />
example, in a class for children under 12 years old with<br />
type-one diabetes, we taught <strong>the</strong>m to give <strong>the</strong>mselves an<br />
insulin shot twice a day by becoming “Sugar Busters.” Like<br />
<strong>the</strong> Ghost Busters (popular at <strong>the</strong> time) <strong>the</strong>y were given a<br />
“weapon” to fight monsters—Hypo and Hyper<br />
(glycemia)—<strong>the</strong>ir syringe. We created a comic book for <strong>the</strong><br />
program that showed heroic children <strong>the</strong>ir age using riflesized<br />
syringes to defend <strong>the</strong>mselves against <strong>the</strong> bad guys.<br />
When a child gave him or herself <strong>the</strong>ir first shot without<br />
help from a nurse or parent, <strong>the</strong>y received an official Sugar-<br />
Buster Badge and a wall plaque. The program transformed<br />
children who screamed and cried every time <strong>the</strong>y saw <strong>the</strong><br />
needle, into kids who couldn’t wait to give <strong>the</strong>mselves <strong>the</strong><br />
first shot. The positive choices empowered <strong>the</strong>m and minimized<br />
<strong>the</strong> threat.<br />
In a program to help adult diabetics lower <strong>the</strong>ir fat and<br />
sugar intake, we created a lunchtime cooking club. The<br />
combination of free food and natural competition among<br />
cooks who brought dishes and shared recipes, made <strong>the</strong><br />
lunchtime meetings very popular. Inexpensive free offers<br />
like food scales and measuring cups drew new members to<br />
<strong>the</strong> meetings. We moderated <strong>the</strong> fun, but didn’t have to do<br />
very much teaching because <strong>the</strong> attendees were learning to<br />
make positive choices from each o<strong>the</strong>r and meeting new<br />
friends, too.<br />
The early results measuring compliance and health outcomes<br />
were some of <strong>the</strong> best results ever found in medical<br />
education research. Unfortunately, that winter Congress<br />
passed an emergency tax reduction bill that cut all National<br />
Institutes of Health Research Grants by one third across <strong>the</strong><br />
board. The research stalled, I was out of a job.<br />
While that was more than 15 years ago, I have never forgotten<br />
what we learned about human motivation in that study.<br />
And I believe it is applicable to many situations, especially<br />
<strong>the</strong> workplace.<br />
I still don’t know why people won’t do what <strong>the</strong>y’re told.<br />
But I do know how to “make <strong>the</strong>m an offer that <strong>the</strong>y can’t<br />
refuse.” Information, ultimatums, and substitutions don’t<br />
work nearly as well as a strong positive offer that empowers<br />
people and minimizes <strong>the</strong> threat.<br />
Creating <strong>the</strong> <strong>Of</strong>fer<br />
Employees who expect a clear reward, such as a promotion<br />
or monetary bonus, for <strong>the</strong> timely, successful completion of<br />
a goal will be inclined to work harder and give it <strong>the</strong>ir best,<br />
especially if <strong>the</strong> goal is clear and <strong>the</strong> expectation of attainment<br />
is high. While it may seem to a manager that an offer<br />
is hard to refuse, individuals will assess five factors before<br />
deciding on <strong>the</strong>ir course of action. These are:<br />
• If I attempt this behavior, am I likely to succeed?<br />
• How much do I value <strong>the</strong> offer?<br />
• Is <strong>the</strong> new behavior intrinsically valuable?<br />
(For example, will I be liked by my co-workers and<br />
respected by management.)<br />
• Does this value outweigh any negative consequences?<br />
(Will co-workers reject me for “sucking up to<br />
<strong>the</strong> boss?”)<br />
• Will my new behavior be acceptable to my family?<br />
(Or, will overtime cut into family time.)<br />
Managers who create motivational offers must <strong>the</strong>refore<br />
find desirable, valued outcomes that outweigh <strong>the</strong> natural<br />
desire to keep things <strong>the</strong> <strong>way</strong> <strong>the</strong>y are. And, ra<strong>the</strong>r than<br />
simply assuming <strong>the</strong>y know what <strong>the</strong>ir employees really<br />
want, <strong>the</strong>y should interview <strong>the</strong>m and candidly ask what<br />
kind of incentives would be most desirable. Surprisingly, it’s<br />
not al<strong>way</strong>s about money. Choices that take into account a<br />
variety of employee preferences will be more desirable than<br />
single options.<br />
(continued on page 28)<br />
“…make <strong>the</strong>m<br />
an offer that <strong>the</strong>y<br />
can’t refuse.”<br />
Information,<br />
ultimatums,<br />
and substitutions<br />
don’t work nearly<br />
as well as a<br />
strong positive<br />
offer that<br />
empowers people<br />
and minimizes<br />
<strong>the</strong> threat.<br />
Debt 3 March/April 2007<br />
27
leadership<br />
MOTIVATION AT WORK<br />
Making an offer <strong>the</strong>y can’t refuse!<br />
(continued from page 27)<br />
Avoiding Reward Burnout by<br />
Building <strong>the</strong> “Brand” Value<br />
<strong>Of</strong>fers that worked wonderfully in <strong>the</strong> beginning will gradually<br />
stop working as employees become accustomed to<br />
receiving <strong>the</strong>m. Advertisers see similar behavior when <strong>the</strong>y<br />
use coupons or run a sale in order to lure new customers to<br />
<strong>the</strong>ir store or product. A sale or coupon may get a consumer<br />
to switch brands, however, if <strong>the</strong> new brand does<br />
not deliver superior value to <strong>the</strong> old one, <strong>the</strong>n <strong>the</strong> consumer<br />
will return to previous behavior.<br />
I suspect that people enrolled in our health programs at <strong>the</strong><br />
hospital would have returned to <strong>the</strong>ir previous behavior<br />
too, if <strong>the</strong>y didn’t begin to see <strong>the</strong> value of <strong>the</strong>ir new behaviors.<br />
If <strong>the</strong>y didn’t look better, feel better, and get better<br />
health results, <strong>the</strong>n <strong>the</strong> “offer” would have only had a temporary<br />
effect.<br />
If employees change behavior in order to receive a reward,<br />
<strong>the</strong> behavior will be only temporary unless <strong>the</strong>ir new routine<br />
creates value. High performance work should lead to<br />
praise, recognition, greater responsibility (if <strong>the</strong> employee<br />
desires this), better salary, better assignments, and<br />
improved working conditions.<br />
Creating an offer employees can’t refuse is much more difficult<br />
than giving <strong>the</strong>m ultimatums, i.e. “Do it, or you’re<br />
fired!” It takes creativity and communication. It requires<br />
that management gets to know employees well enough to<br />
understand what it is <strong>the</strong>y really want.<br />
Not all your offers will be effective. Billions are spent for<br />
creative ideas from advertising agencies each year, and a<br />
good percentage of <strong>the</strong>se are ineffective too. However, try<br />
it and you’ll find that a positive offer will beat an ultimatum<br />
every time.<br />
Mike Davids, member of Newcomb Marketing<br />
Solutions’ Creative Team, has more than 20 years<br />
of experience in marketing and print communications.<br />
Mike has a graduate certificate in Direct<br />
Marketing from DePaul University, Chicago, an MA<br />
from Wesleyan University, Middletown, CT, and a BA from <strong>the</strong><br />
University of Iowa. He can be reached at mike@mdavids.us or<br />
at 800-921-1221.<br />
Debt 3 March/April 2007<br />
28
When Selecting a Collection Agency be Sure to Ask…<br />
ARE YOU A CLLA CERTIFIED AGENCY?<br />
If <strong>the</strong> collection agency you are using does<br />
not display <strong>the</strong> above seal, <strong>the</strong>y are not an<br />
agency certified by <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong><br />
<strong>League</strong> of <strong>America</strong>, <strong>the</strong> nation’s oldest<br />
creditors’ rights organization. Use of CLLA<br />
Certified Agencies ensures that you receive<br />
<strong>the</strong> following protections and advantages:<br />
■ Professional services to help<br />
attain maximum dollar recovery.<br />
■ Prompt remittance of collected funds.<br />
■ On-going oversight to ensure adherence<br />
to a rigorous Code of Ethics.<br />
■ Minimum $300,000 surety bond<br />
for your protection.<br />
■ Maintenance of separate Trust Accounts<br />
for collected funds.<br />
■ Reputable collection procedures that maintain<br />
your customers’ good will.<br />
■ An experienced agency that has been in business<br />
for a minimum of five years.<br />
■ Agency executives who are required to attend<br />
yearly seminars and educational meetings.<br />
■ Assistance choosing legal counsel when necessary.<br />
■ Creditors may call on <strong>the</strong> Agency Association’s<br />
Executive Director should a complaint arise<br />
regarding an agency certified by <strong>the</strong> CLLA.<br />
To find out if your collection agency is a CLLA<br />
Certified Agency and to download free, informative<br />
literature that will help improve your collections,<br />
visit our Website at www.ccaacollect.com, or contact<br />
Emil Hartleb, Executive Director, at (973) 239-0721.<br />
Visit us at www.ccaacollect.com<br />
for informative, free literature on collections.
league business<br />
CLLA<br />
EDYOUCATION!<br />
by: Christine Hayes Hickey, CLLA National Education Chair<br />
We asked; you answered. The members of <strong>the</strong> <strong>League</strong> know what<br />
<strong>the</strong>y want in education, and we conducted a survey to determine<br />
exactly what that is. <strong>Of</strong> those polled, 243 members responded,<br />
and here is what you told us:<br />
Web-based programming and electronic materials.<br />
Over two-thirds of those responding are interested in taking education into <strong>the</strong> electronic age.<br />
Reams of paper and face-to-face lectures are quickly becoming a thing of <strong>the</strong> past for many<br />
organizations.The ease with which materials can be downloaded and participants can learn from<br />
in <strong>the</strong> convenience of <strong>the</strong>ir offices is becoming more appealing as we grow more accustomed to<br />
e-life.The <strong>League</strong> is ready to answer this call. Live programs at <strong>League</strong> conventions will be supplemented<br />
with web-based offerings, and educational materials will no longer be handed to you<br />
in binders to lug home. Instead, condensed materials will be available for use during <strong>the</strong> programs<br />
and Chicago will introduce <strong>the</strong> first-ever electronic materials for attendees.<br />
Non-traditional educational programs.<br />
Over half of you would attend one day educational programming and <strong>the</strong>re is a strong interest in<br />
teleseminars.The <strong>League</strong> has brought you teleseminars in <strong>the</strong> past and will continue to do so in<br />
<strong>the</strong> future.With busy schedules and local practices, one-day programs allow for face-to-face interaction<br />
without several days out of <strong>the</strong> office.The one-day educational meeting sponsored by <strong>the</strong><br />
Western Region and <strong>the</strong> California <strong>Commercial</strong> Collectors’ Association scheduled for Friday,<br />
October 12, 2007 in Universal City, California fits this bill. The <strong>League</strong> is encouraging o<strong>the</strong>r,<br />
similar programs and our goal is to provide more of <strong>the</strong>se opportunities in <strong>the</strong> near future.<br />
What is it that you want to hear about?<br />
We polled members on topics of interest for future programming, and asked <strong>the</strong>m to identify<br />
issues that would lend <strong>the</strong>mselves to an educational offering.The survey confirmed that 57% of<br />
those responding are interested in attending a seminar on office management and human<br />
resource issues. Individual responses supported this as many of <strong>the</strong> top-rated seminar suggestions<br />
fell within this category.The most desired programs ranked in order of priority include<br />
generally: <strong>the</strong> Fair Debt Collection Practices Act; collection and trial tactics; bankruptcy; office<br />
management/business development and marketing; and Uniform <strong>Commercial</strong> Code issues.We<br />
also requested topics involving ethical considerations and local concerns, and <strong>the</strong> feedback was<br />
impressive. Individual responses and specific program suggestions will be used to guide future<br />
educational planning for <strong>the</strong> <strong>League</strong>.<br />
Debt 3 March/April 2007<br />
30<br />
As a member of <strong>the</strong> CLLA, what interests you interests us. Education is a key benefit of membership<br />
and we invite you to participate in helping to shape our programs. From format to<br />
content, we strive to provide nothing short of excellence in education. We encourage your<br />
feedback and welcome your suggestions at plucas@clla.org and ch@rubin-levin.net.
A The Notte gency Inc.<br />
Professionals Assisting Professionals<br />
Sandra R. Kuzma, President<br />
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In This Industry, Knowledge is Key—<br />
Let Them Know You Are<br />
Serious About Education<br />
Sponsorship<br />
Opportunities<br />
COMMERCIAL LAW LEAGUE OF AMERICA<br />
22nd Annual Education Program<br />
“The Honorable Frank W. Koger Memorial<br />
Current Developments in<br />
Hot & Emerging Areas of Bankruptcy<br />
In conjunction with<br />
National Conference<br />
of Bankruptcy Judges<br />
Oct. 10-13, 2007<br />
Orlando Marriott World Center<br />
All sponsors will be listed in <strong>the</strong> CLLA Bankruptcy Section<br />
elecctronic newsletter, <strong>the</strong> CLLA publication Debt 3 and<br />
on <strong>the</strong> CLLA website.<br />
LEVEL 1 – $20,000<br />
• Lead placement on all signage/<br />
promotions, including company logo<br />
• Banner on Dais<br />
• Website Banner Ad<br />
• Full Page Back Cover Ad<br />
of Educational Materials<br />
LEVEL 2 – $10,000<br />
• Prominent placement on all signage/<br />
promotions, including company logo<br />
• Website Banner Ad<br />
• Inside Back Cover of Educational<br />
Materials 1/2 page ad (full color/bleed)<br />
LEVEL 3 – $5,000<br />
• Promotion in all publications<br />
and handouts<br />
• Company Logo/ Banner<br />
prominently displayed<br />
• Black/White ads in inside cover<br />
of education book<br />
LEVEL 4 – $3,500<br />
• Promotion in all publications and handouts<br />
• Company Logo/ Banner<br />
prominently displayed<br />
• Black/White ads on sponsor<br />
pages of program materials<br />
Reserve Your Sponsorship<br />
Opportunity Today, Call:<br />
Paula Lucas c/o CLLA<br />
70 E. Lake St. Suite 630, Chicago, IL 60601<br />
(p) 800.978.CLLA / (f) 312.781.2010<br />
plucas@clla.org / www.clla.org<br />
Hurry, <strong>the</strong>se opportunities won’t last.<br />
Reach up to 900 of <strong>the</strong> most influential bankruptcy<br />
professionals in our industry by sponsoring <strong>the</strong><br />
CLLA’s premiere educational programs at <strong>the</strong> annual<br />
National Conference of Bankruptcy Judges—<br />
Thursday, October 11, 2007<br />
This year’s afternoon education program is specifically geared towards <strong>the</strong><br />
many questions arising out of <strong>the</strong> 2005 Bankruptcy Abuse Prevention and<br />
Consumer Protection Act (“BAPCPA”). Our experts will be serving up a main<br />
course of Preemption, a side of Statutory Construction and Constitutional issues<br />
for dessert.<br />
The CLLA programming at NCBJ promises to satisfy <strong>the</strong> hunger of any<br />
insolvency professional. Your sponsorship dollar will go a long <strong>way</strong> to<br />
getting your name in front of this group.<br />
Moderators for each session are: Professor Nancy B. Rapoport, Honorable<br />
John K. Olsen (Bankr. S.D. Fl.) and Honorable Elizabeth Stong (Bankr. E.D.N.Y.)<br />
Who Will See Your Sponsorship?<br />
For 22 years, <strong>the</strong> CLLA has<br />
produced, “The Honorable<br />
Frank W. Koger Memorial<br />
Current Developments<br />
in Hot & Emerging Areas<br />
of Bankruptcy” which<br />
routinely draws 700 to 900<br />
bankruptcy professionals.<br />
• The audience consists of a “Who’s Who” of insolvency professionals.<br />
• The CLLA Bankruptcy Section is <strong>the</strong> largest membership Section<br />
of <strong>the</strong> CLLA, with members in every state in <strong>the</strong> US and in more<br />
than 20 countries around <strong>the</strong> world.<br />
• The NCBJ brings in a record number of judges and insolvency<br />
professionals from across <strong>the</strong> US and <strong>the</strong> world.<br />
• NCBJ Annual Conference averages an attendance of more than 2,000 professionals<br />
with <strong>the</strong> annual Hot & Emerging Education Program averaging<br />
between 700 and 800 attendees.<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY<br />
70 E. Lake Street, Suite 630 • Chicago, IL 60601 • 312.781.2000 • www.clla.org
CLLA Future Planning and Leadership Conference<br />
Royal Pacific Resort at Universal Orlando • Orlando, FL • July 19–22, 2007<br />
Who: CLLA members interested in <strong>the</strong> future growth and<br />
development of <strong>the</strong> <strong>League</strong>; Members of <strong>the</strong> CLLA Strategic Planning<br />
Committee; CLLA <strong>Of</strong>ficers and members of <strong>the</strong> Board of Governors;<br />
CLLA Section and Region <strong>Of</strong>ficers and Executive Council Members;<br />
Association of <strong>Law</strong> List Publishers' <strong>Of</strong>ficers and Board Members;<br />
CCAA <strong>Of</strong>ficers and Board Members.<br />
What: The Sou<strong>the</strong>rn Region of <strong>the</strong> CLLA will host <strong>the</strong> CLLA's First<br />
Future Planning and Leadership Conference.<br />
Where: Royal Pacific Resort at Universal Orlando, A Loews Hotel<br />
6300 Hollywood Way, Orlando, Florida 32819 • Phone: (407) 503-3000<br />
Fax: (407) 503-3010 • Reservations: (888) 273-1311<br />
When: July 19-22, 2007<br />
Why: The CLLA is in <strong>the</strong> process of developing and implementing a<br />
strategic plan for <strong>the</strong> future of <strong>the</strong> <strong>League</strong> and each of its constituent<br />
Sections and Regions. It is incumbent upon each <strong>League</strong> member who is<br />
currently among <strong>the</strong> leadership of <strong>the</strong> <strong>League</strong> or hopes to be among <strong>the</strong><br />
future leadership of <strong>the</strong> <strong>League</strong> to provide us with your ideas and input into<br />
developing our strategic plan that will set <strong>the</strong> future course of <strong>the</strong> <strong>League</strong>.<br />
How: Room cost is $169 per night. Please call <strong>the</strong> Royal Pacific Resort<br />
at (888) 273-1311 and mention <strong>the</strong> CLLA conference to book your<br />
rooms now. Fur<strong>the</strong>r details<br />
regarding registration, hotel<br />
arrangements, and conference<br />
schedule and events will be<br />
forthcoming.<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY<br />
70 E. Lake Street, Suite 630 • Chicago, IL 60601 • 312.781.2000 • www.clla.org<br />
Western Region<br />
Meeting<br />
Western Region’s next meeting will take place in Los Angeles with <strong>the</strong><br />
<strong>Commercial</strong> Collection Agency Association<br />
and California Collection Agency Association. Please join <strong>the</strong><br />
Western Region at <strong>the</strong> Universal City Hilton Hotel, in Universal City,<br />
California (Los Angeles area) on Friday, October 12, 2007. It is an<br />
agency-qualified meeting and promises to be a well-attended event as usual.<br />
There will be great opportunities to network and receive education.<br />
We had a great attendance in prior years and hope to continue to make<br />
this meeting meaningful to both agencies and attorneys. For fur<strong>the</strong>r information<br />
contact Arlene Cohen Miller, Western Region Arrangements Chair at<br />
amiller@creditorsrights.com. You may also visit <strong>the</strong> CLLA website<br />
at www.clla.org for additional details about educational programs<br />
and speakers closer to <strong>the</strong> date of <strong>the</strong> event.
league business<br />
ABC Report<br />
NEW MEMBERS AND CHANGES<br />
AT THE AMERICAN BOARD OF CERTIFICATION<br />
By: John F. Young, Chairman <strong>Of</strong> The ABC Marketing Committee<br />
Block Markus & Williams, LLC ~ Denver, Colorado<br />
Debt 3 March/April 2007<br />
34<br />
Congratulations to<br />
Our New Members.<br />
The <strong>America</strong>n Board<br />
of Certification<br />
wishes to<br />
congratulate <strong>the</strong><br />
following attorneys<br />
who have recently<br />
been certified:<br />
New ABC Members<br />
Certified in<br />
November 2006:<br />
Johnathan Christiaan Bolton<br />
Houston,TX<br />
Business Bankruptcy<br />
Roy Jackson Dent<br />
Charleston, IL<br />
Business Bankruptcy and<br />
Consumer Bankruptcy<br />
Benjamin Kahn<br />
Greensboro, NC<br />
Business Bankruptcy and<br />
Consumer Bankruptcy<br />
<strong>Law</strong>rence Kotler<br />
Philadelphia, PA<br />
Business Bankruptcy and<br />
Consumer Bankruptcy<br />
Martha Lehman<br />
Indianapolis, IN<br />
Business Bankruptcy<br />
James David Nave<br />
Nashville,TN<br />
Consumer Bankruptcy<br />
David Nunn<br />
Edmond, OK<br />
Creditors’ Rights<br />
Mitchell Ayer<br />
Houston,TX<br />
Business Bankruptcy<br />
William T. Bodoh<br />
Columbus, OH<br />
Business Bankruptcy<br />
Chad Bowen<br />
Tampa, FL<br />
Business Bankruptcy<br />
Robert Drummond<br />
Great Falls, MT<br />
Consumer Bankruptcy<br />
Elizabeth Freeman<br />
Houston,TX<br />
Business Bankruptcy<br />
Jeffrey Hester<br />
Indianapolis, IN<br />
Business Bankruptcy<br />
John J. Lamoureux<br />
Tampa, FL<br />
Business Bankruptcy<br />
James N. Stanley, Jr.<br />
Griffin, GA<br />
Consumer Bankruptcy<br />
Gene B.Tarr<br />
Winston Salem, NC<br />
Business Bankruptcy<br />
Hilary B. Bonial<br />
Dallas,TX<br />
Business Bankruptcy<br />
Christopher Celentino<br />
San Diego, CA<br />
Consumer Bankruptcy<br />
Thomas C. Dame<br />
Baltimore, MD<br />
Business Bankruptcy<br />
Elizabeth Flaagan<br />
Denver, CO<br />
Business Bankruptcy<br />
Edward M. King<br />
Louisville, KY<br />
Business Bankruptcy<br />
Joseph R. <strong>Law</strong>rence<br />
Pittsburgh, PA<br />
Creditors’ Rights<br />
I. Richard Levy<br />
Dallas,TX<br />
BBusiness Bankruptcy<br />
Teresa H. Pearson<br />
Portland, OR<br />
Business Bankruptcy<br />
Joseph R. Prochaska<br />
Nashville,TN<br />
Business Bankruptcy<br />
Mat<strong>the</strong>w J. Richburg<br />
Milwaukee,WI<br />
Creditors’ Rights<br />
Ronald B. Roteman<br />
Pittsburgh, PA<br />
Business Bankruptcy<br />
Martin L. Rogalski<br />
Jenison, MI<br />
Consumer Bankruptcy<br />
Gene Tarr<br />
Winston Salem, NC<br />
Business Bankruptcy<br />
Kristina Johnson<br />
Jackson, MS<br />
Business Bankruptcy<br />
William E. Maddox<br />
Knoxville,TN<br />
Consumer Bankruptcy<br />
Peter B. McGlynn<br />
Boston, MA<br />
Business Bankruptcy<br />
Kara K. Messner<br />
Harrisburg, PA<br />
Consumer Bankruptcy<br />
E. Lee Morris<br />
Dallas,TX<br />
Business Bankruptcy<br />
James M. Setters<br />
Chattanooga,TN<br />
Consumer Bankruptcy<br />
James N. Stanley<br />
Griffin, GA<br />
Consumer Bankruptcy<br />
Ward Stone, Jr.<br />
Macon, GA<br />
Business Bankruptcy<br />
Mark R.Wenzel<br />
Indianapolis, IN<br />
Business Bankruptcy<br />
Scott D.Wilson<br />
Nashville,TN<br />
Consumer Bankruptcy<br />
■
ABC Report<br />
league business<br />
NEW ABC MEMBERS<br />
CERTIFIED IN 2007<br />
Algernon Butler, III<br />
Wilmington, NC<br />
Business Bankruptcy and<br />
Consumer Bankruptcy<br />
James B.Angell<br />
Raleigh, NC<br />
Business Bankruptcy<br />
Jeffrey K.Tyree<br />
Ridgeland, MS<br />
Business Bankruptcy<br />
Joseph N. Calla<strong>way</strong><br />
Rocky Mount, NC<br />
Business Bankruptcy and<br />
Consumer Bankruptcy<br />
Jeffrey P. Norman<br />
Houston,TX<br />
Consumer Bankruptcy<br />
David I. Cisar<br />
Milwaukee,WI<br />
Creditors’ Rights<br />
Wendy Diane Brewer<br />
Indianapolis, IN<br />
Business Bankruptcy<br />
Julia P. Gibbs<br />
Sacramento, CA<br />
Business Bankruptcy<br />
Bruce F. Jobe<br />
Lumberton, NC<br />
Consumer Bankruptcy<br />
Gary M. Kaplan<br />
San Francisco, CA<br />
Business Bankruptcy<br />
W.Timothy Miller<br />
Cincinnati, OH<br />
Business Bankruptcy<br />
Roger Moore<br />
Jacksonville, NC<br />
Business Bankruptcy<br />
Michael D. O’Brien<br />
Clackamas, OR 97015<br />
Consumer Bankruptcy<br />
Thomas E. Panowicz<br />
South Bend, IN<br />
Consumer Bankruptcy<br />
Donna T. Parkinson<br />
Sacramento, CA<br />
Business Bankruptcy<br />
Michael P. Peavey<br />
Wilson, NC<br />
Consumer Bankruptcy<br />
Monte J.White<br />
Wichita Falls,TX<br />
Consumer Bankruptcy<br />
Neil E. Colmenares<br />
Flushing, NY<br />
Consumer Bankruptcy<br />
Samuel Davide Hodson<br />
Indianapolis, IN<br />
Business Bankruptcy<br />
John Steinberger<br />
Southfield, MI<br />
Consumer Bankruptcy<br />
Jon C.Thornburg<br />
Biloxi, MS<br />
Consumer Bankruptcy<br />
■<br />
CHANGES AT ABC<br />
ABC started off <strong>the</strong> new year at its new headquarters located at 101 Second Street S.E., Suite 904,<br />
Cedar Rapids, Iowa 52401; telephone number 319-365-2222.<br />
In addition to our new central location, <strong>the</strong> ABC and its members will also enjoy <strong>the</strong> services of both a new<br />
full time director and a full time assistant in Cedar Rapids. Dian Gilmore is <strong>the</strong> ABC’s new director and Pamela<br />
Farmer is our new full time Assistant Director. The ABC Board of Directors looks forward to working with<br />
Dian and Pamela and believes <strong>the</strong>se new changes at ABC will greatly enhance <strong>the</strong> benefits being provided to<br />
our certified attorneys and applicants for certification.<br />
■<br />
Debt 3 March/April 2007<br />
35
member news<br />
MEMBER BENEFITS<br />
Tell Us What You Want… Let Us Deliver What You Need!<br />
By Mark V. Matz, Chair CLLA Member Benefits Committee<br />
The CLLA’s Membership Benefits Committee has diligently worked at finding, reviewing and instituting new programs<br />
to provide an added value to current members and incentives to those considering joining our respected organization.<br />
We hope you have taken a look at our affinity partners and contacted <strong>the</strong>m to see how <strong>the</strong>y can fulfill your needs. To<br />
see all <strong>the</strong> programs currently available, simply visit www.clla.org and sign into <strong>the</strong> Members Section of <strong>the</strong> site where you will<br />
find links to all our benefit and affinity programs.<br />
But, what does <strong>the</strong> CLLA look for when seeking new programs? There is a set of criteria used by <strong>the</strong> committee to evaluate <strong>the</strong><br />
options presented for review. First, is it truly a product or service that will benefit members of <strong>the</strong> CLLA? Secondly, can our<br />
members obtain this new benefit at a price less than if <strong>the</strong>y contacted <strong>the</strong> vendor outside of <strong>the</strong> program offered by <strong>the</strong> <strong>League</strong>?<br />
Ano<strong>the</strong>r consideration is <strong>the</strong> uniqueness of <strong>the</strong> offering compared to o<strong>the</strong>r possible sources (i.e. insurances offered by state bar<br />
associations, etc.). Using <strong>the</strong>se guidelines, we are al<strong>way</strong>s looking at what we think everyone would want. As a committee with<br />
representatives from all constituencies of <strong>the</strong> <strong>League</strong>, we have provided input based on our experiences. But now, you will have<br />
<strong>the</strong> direct opportunity to help us determine just exactly what you want in a benefit program and what may be of interest to your<br />
fellow members.<br />
A new tool at <strong>the</strong> CLLA is <strong>the</strong> online survey through a service called Survey Monkey. Recently, <strong>the</strong> CLLA National Education<br />
Committee used this with great success for <strong>the</strong>ir goals and we would like to do <strong>the</strong> same. You may have participated in <strong>the</strong> education<br />
survey and know how easy and quick it was to complete, not to mention <strong>the</strong> value of <strong>the</strong> information obtained by those<br />
willing to share a few moments of <strong>the</strong>ir time.<br />
The CLLA Membership Benefits Committee will be taking advantage of this tool to survey <strong>the</strong> entire association to obtain an<br />
idea of what <strong>the</strong>y feel are programs that <strong>the</strong> committee should investigate on behalf of <strong>the</strong> CLLA. When you receive <strong>the</strong> email<br />
(if you have not already done so) we strongly encourage you to take <strong>the</strong> brief time to complete <strong>the</strong> questions. Just a moment<br />
from everyone may yield us a tremendous amount of information that will benefit <strong>the</strong> association at large.<br />
Finally, as we approach <strong>the</strong> beginning of a new administration at CLLA under our new President, Wanda Borges, I must thank<br />
Sid Friedman and <strong>the</strong> Board of Governors for <strong>the</strong>ir support along with all <strong>the</strong> current and past members of <strong>the</strong> committee for<br />
<strong>the</strong>ir time and input in working to find and approve <strong>the</strong> programs that will provide added value to CLLA Membership. Our<br />
current committee consists of Lee Baldieri, Brenda Majewski, and myself who all serve as a sub-committee of <strong>the</strong> CLLA<br />
National Membership Committee (which is chaired by Bob Bernstein of Charleston, SC). I would also like to thank Bob and<br />
that committee for <strong>the</strong>ir support of our efforts.<br />
On ano<strong>the</strong>r note, we are pleased to announce two new benefit programs for members of <strong>the</strong> CLLA. We now have discount<br />
arrangements with two major rental car companies, Avis and Enterprise. Look for <strong>the</strong> link to each of <strong>the</strong>se companies and <strong>the</strong><br />
special rates for our membership in <strong>the</strong> Members Section of <strong>the</strong> CLLA Web site (www.clla.org). You may also contact <strong>the</strong>m at<br />
<strong>the</strong>ir toll free numbers as follows: Avis (800.331.1212; code: B193100) and Enterprise (800.261.7331; code: 62C0545). We<br />
hope you take advantage of <strong>the</strong>se new benefits and assist us by contributing your thoughts on <strong>the</strong> CLLA survey of membership<br />
benefit and affinity programs.<br />
Debt 3 March/April 2007<br />
36<br />
As al<strong>way</strong>s, we look forward to hearing from you if you have an idea about a program, product or service that could benefit <strong>the</strong><br />
members of <strong>the</strong> <strong>League</strong>. ■
CLLA members<br />
encouraged to submit articles for DEBT 3<br />
Have an idea for an article? Why not write for Debt 3 ?<br />
Debt 3 wants to increase <strong>the</strong> number of articles it publishes written by members of <strong>the</strong> CLLA.<br />
There is a tremendous wealth of knowledge among CLLA members that would be beneficial<br />
to all if shared. Debt 3 regularly runs articles on law office or collection agency management,<br />
technology and marketing. Articles on practical tips in practicing law are welcome as well.<br />
Feature articles and analysis of new and significant cases are encouraged. If you have an article idea<br />
or would like to submit an article, simply e-mail it to:<br />
clla@clla.org, fax it to 312-781-2010<br />
or call <strong>the</strong> CLLA headquarters at 312-781-2000.<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY<br />
Have an ethics question?<br />
We’re here.<br />
Concerned about a potential<br />
conflict of interest?<br />
We can help.<br />
Want to know more about<br />
<strong>the</strong> CLLA’s Code of<br />
Professional Conduct?<br />
Let us assist you.<br />
Want to discuss any of <strong>the</strong> above<br />
in a completely<br />
confidential manner?<br />
We have<br />
<strong>the</strong> answer.<br />
The CLLA is pleased to announce a unique and worthwhile member benefit.<br />
Available exclusively to CLLA members, <strong>the</strong> CLLA Ethics Panel is here to assist<br />
in answering your ethics questions. The Ethics Panel will have trained duty<br />
officers available to provide prompt, professional and confidential advice.<br />
CLLA members may contact <strong>the</strong> Ethics Panel to discuss ethical questions<br />
or issues related to <strong>the</strong>ir practice or business, including state ethics rules<br />
and <strong>League</strong> rules.<br />
In our effort to continue to provide unparalleled value for your membership<br />
dollar, this outstanding service is provided at no cost to CLLA members.<br />
To learn more and access <strong>the</strong> current list of duty officers,<br />
log on to members section at www.clla.org.<br />
Not a member of <strong>the</strong> CLLA yet?<br />
Become a member at www.clla.org.<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY<br />
Debt 3 March/April 2007<br />
37
member news<br />
Newly Admitted Members<br />
The following individuals appeared as applicants in <strong>the</strong> <strong>League</strong>’s electronic publication in January and February, 2007. They became members on<br />
March and April 1, 2007 respectively.<br />
Members before whose names an asterisk (*) appears are lay members under Article 2; Section 1, of <strong>the</strong> <strong>League</strong>’s Constitution. Individuals before whose<br />
names a bullet (•) appears are lawyers devoting <strong>the</strong> major portion of <strong>the</strong>ir time to lay business organizations listed after <strong>the</strong> new member’s name.<br />
The name of <strong>the</strong> <strong>League</strong> member, if any, referring <strong>the</strong> new member to membership is listed after <strong>the</strong> new member’s contact information.<br />
Debt 3 March/April 2007<br />
38<br />
UNITED STATES<br />
ALABAMA<br />
Birmingham<br />
Steven D. Altmann<br />
Najjar Denaburg, P.C.<br />
2125 Morris Avenue<br />
Birmingham,Alabama 35203<br />
Willard L. Dean<br />
Specialized Recovery<br />
Services, LLC<br />
5266 Grantswood Road<br />
Birmingham,Alabama 35213<br />
ARIZONA<br />
Phoenix<br />
Barbara B. Maroney<br />
<strong>Law</strong> <strong>Of</strong>fice of<br />
Barbara Maroney, P.C.<br />
15433 N.Tatum Blvd.<br />
Suite 106<br />
Phoenix,Arizona 85032<br />
Joseph J. Pezzuto<br />
<strong>Law</strong> <strong>Of</strong>fice of Joe Pezzuto, LLC<br />
4013 East Broad<strong>way</strong> Road<br />
Suite A-2<br />
Phoenix,Arizona 85040<br />
Scottsdale<br />
Todd Haley<br />
Corporate Collections<br />
International<br />
6908 E.Thomas<br />
Suite 200<br />
Scottsdale,Arizona 85251<br />
Tucson<br />
Tristan J. Burgess<br />
I. C. System, Inc.<br />
5501 N Swan Rd, Suite 231<br />
Tucson,Arizona 85718<br />
CALIFORNIA<br />
Encino<br />
Gregory S. Abrams<br />
ASK Financial<br />
17401 Ventura Blvd., Suite B21<br />
Encino, California 91316<br />
Los Angeles<br />
Arash A. Khakshooy<br />
<strong>Law</strong> <strong>Of</strong>fices of<br />
Arash A. Khakshooy<br />
8581 Santa Monica Blvd.<br />
Suite 552<br />
Los Angeles, California 90069<br />
Orange<br />
James Baumgartner<br />
Sakamaki & Baumgartner<br />
500 N State College Blvd.<br />
Suite 1100<br />
Orange, California 92868<br />
Francis T. Sakamaki<br />
Sakamaki & Baumgartner<br />
500 N State College Blvd.<br />
Suite 1100<br />
Orange, California 92868<br />
San Francisco<br />
Ross A. Spector<br />
Spector & Bennett,APC<br />
50 California Street, 15th Floor<br />
San Francisco, California 94111<br />
San Luis Obispo<br />
*Dean Kaplan<br />
The Kaplan Group<br />
2250 King Court, Suite 50<br />
San Luis Obispo, California 93401<br />
DELAWARE<br />
Dover<br />
Kevin J. Doyle<br />
Mat<strong>the</strong>ws, Pierce & Lloyd, Inc<br />
830 Walker Rd<br />
Dover, Delaware 19904<br />
GEORGIA<br />
Alpharetta<br />
*Keith C. Simington<br />
Capital Recovery Corporation<br />
312 Maxwell Road, Suite 100<br />
Alpharetta, Georgia 30004<br />
Atlanta<br />
James W. Martin<br />
Simpson <strong>Law</strong> <strong>Of</strong>fices, L.L.P.<br />
One Securities Centre, Suite 300<br />
3490 Piedmont Road, NE<br />
Atlanta, Georgia 30305<br />
ILLINOIS<br />
Chicago<br />
*Melissa Stieglitz<br />
Neal & Leroy<br />
203 N. Lasalle, Suite 2300<br />
Chicago, Illinois 60601<br />
Glendale Heights<br />
Michael T. Nigro<br />
Nigro & Westfall, P.C.<br />
1793 Bloomingdale Road<br />
Glendale Heights, Illinois 60139<br />
Morton Grove<br />
Cameron H. Goodman<br />
Goodman <strong>Law</strong> Group LLC<br />
6210 Lincoln Ave<br />
Morton Grove, Illinois 60053<br />
INDIANA<br />
Terre Haute<br />
Michael J. Sacopulos<br />
Sacopulos Johnson & Sacopulus<br />
676 Ohio Street<br />
Terre Haute, Indiana 47807<br />
NEVADA<br />
Las Vegas<br />
Brian J. Pezzillo<br />
Pezzillo Robinson<br />
150 N. Durango Dr., #200<br />
Las Vegas, Nevada 89145<br />
NEW JERSEY<br />
Roseland<br />
Sharon L. Levine<br />
Lowenstein Sandler<br />
65 Livingston Avenue<br />
Roseland, New Jersey 7068<br />
NEW YORK<br />
Hauppauge<br />
Daria M. Campisi<br />
Glacial Star Group<br />
150 Motor Park<strong>way</strong>, Suite 103<br />
Hauppauge, New York 11788<br />
Hawthorne<br />
Joseph L. Genzano<br />
Elhilow & Maiocchi, LLP<br />
22 Saw Mill River Road<br />
Hawthorne, New York 10532<br />
New York<br />
Jeffrey Lowitt<br />
Jaffe & Asher LLP<br />
600 Third Avenue<br />
New York, New York 10016<br />
Andrea B. Schwartz<br />
Golenbock Eiseman Assor<br />
Bell & Peskoe LLP<br />
437 Madison Ave<br />
New York, New York 10022<br />
NORTH<br />
CAROLINA<br />
Cary<br />
John W. Akins<br />
Akins & Rassette, PLLC<br />
103-A Kilmayne Drive<br />
Cary, North Carolina 27511<br />
OHIO<br />
Cleveland<br />
Antonio J. Scarlato<br />
Shapiro & Felty, LLP<br />
1500 W.Third Street<br />
Cleveland, Ohio 44113<br />
Timothy M. Sullivan<br />
<strong>Law</strong> <strong>Of</strong>fices<br />
of Timothy M. Sullivan<br />
25651 Detroit Road, Suite 203<br />
Cleveland, Ohio 44145<br />
*Jordan D. Warfield<br />
<strong>America</strong>n <strong>Law</strong>yers Quarterly<br />
853 Westpoint Park<strong>way</strong><br />
Suite 710<br />
Cleveland, Ohio 44145<br />
Shaker Heights<br />
Bill Mann<br />
Joseph, Mann & Creed<br />
20600 Chagrin Blvd., Suite 550<br />
Shaker Heights, Ohio 44122
PENNSYLVANIA<br />
Philadelphia<br />
*Michael DuFrayne<br />
Executive Sounding Board<br />
Associates, Inc.<br />
2 Penn Center Plaza<br />
1500 John F. Kennedy Blvd.<br />
Suite 1730<br />
Philadelphia, Pennsylvania 19102<br />
Pittsburgh<br />
Timothy A. Krieger<br />
Tucker Arensberg, P.C.<br />
1500 One PPG Place<br />
Pittsburgh, Pennsylvania 15222<br />
West Chester<br />
Derek Blasker<br />
Burton Neil and Associates, P.C.<br />
1060 Andrew Drive, Suite 170<br />
West Chester, Pennsylvania 19380<br />
Neil Sarker<br />
Butron Neil & Associates<br />
1060 Andrew Drive<br />
West Chester, Pennsylvania 19380<br />
Brit J. Suttell<br />
Burton Neil & Associates, P.C.<br />
1060 Andrew Drive, Suite 170<br />
West Chester, Pennsylvania 19395<br />
TENNESSEE<br />
Knoxville<br />
Stephen W. Gibson<br />
Ambrose,Wilson, Grimm<br />
& Durand, LLP<br />
P.O. Box 2466<br />
Knoxville,Tennessee 37901<br />
TEXAS<br />
Dallas<br />
*Thomas P. Backal<br />
The Dunn <strong>Law</strong> Firm<br />
12801 N. Central Express<strong>way</strong><br />
Suite 250<br />
Dallas,Texas<br />
Steven R. Dunn<br />
The Dunn <strong>Law</strong> Firm<br />
12801 N Central Express<strong>way</strong><br />
Suite 250<br />
Dallas,Texas<br />
member news<br />
Christopher J. Jameson<br />
Jameson and Dunagan, P.C.<br />
3890 West Northwest High<strong>way</strong><br />
Suite 550<br />
Dallas,Texas 75220<br />
Houston<br />
Benjamin K. Sanchez<br />
Sanchez <strong>Law</strong> Firm<br />
806 Main Street, Suite 920<br />
Houston,Texas 77002<br />
WISCONSIN<br />
Milwaukee<br />
AnneMarie D. Case<br />
Case <strong>Law</strong> Firm, S.C.<br />
400 N Broad<strong>way</strong><br />
Suite 402<br />
Milwaukee,Wisconsin<br />
Daryl Diesing<br />
Whyte Hirschboeck Dudek S.C.<br />
555 E.Wells Street<br />
Ste. 1900<br />
Milwaukee,Wisconsin 53202<br />
INTERNATIONAL<br />
MEMBERS<br />
BELGIUM<br />
Antwerp<br />
Gary Liesmons<br />
Liesmons Judicial <strong>Of</strong>ficer<br />
Britselei 94<br />
2000<br />
CANADA<br />
Montreal, Quebec<br />
Sion Amar<br />
Creditfax<br />
555 Chabanel #1009<br />
NETHERLANDS<br />
Maastricht-Meerssen<br />
Leo Stikkelbroeck<br />
Stikkelbroeck Van Uden<br />
Cratsborn <strong>Law</strong>yers<br />
Hoogveldweg 2<br />
Debt 3 March/April 2007<br />
39
member news<br />
Among Our Members…<br />
Debt 3 March/April 2007<br />
40<br />
Submissions for Member News<br />
may be sent to <strong>the</strong> <strong>Commercial</strong><br />
<strong>Law</strong> <strong>League</strong> of <strong>America</strong> by mail,<br />
fax or e-mail to:<br />
Member News,<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong><br />
of <strong>America</strong> ®<br />
70 E. Lake Street<br />
Suite 630, Chicago, IL 60601<br />
312-781-2000<br />
fax: 312-781-2010<br />
e-mail: clla@clla.org<br />
The <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> ®<br />
reserves <strong>the</strong> right to determine<br />
whe<strong>the</strong>r to publish submissions<br />
or photos and to edit<br />
submissions without prior<br />
notice to those submitting <strong>the</strong><br />
announcement.<br />
▲ F. THOMAS RAFFERTY NAMED MARYLAND<br />
“SUPER LAWYER”<br />
CLLA Member F. Thomas Rafferty of Ober, Kahn,<br />
Grimes and Shriver was named a Maryland “Super<br />
<strong>Law</strong>yer” in January 2007. Twenty-two attorneys from <strong>the</strong><br />
Baltimore, MD firm received <strong>the</strong> award which recognizes<br />
<strong>the</strong> top five percent of all practicing attorneys in Maryland.<br />
▲ RICHARD G. BAUMANN NAMED SOUTHERN<br />
CALIFORNIA “SUPER LAWYER”<br />
CLLA member Richard G. Baumann of <strong>the</strong> Los Angeles,<br />
CA law firm Sulmeyer Kupetz has again been chosen as<br />
one of <strong>the</strong> Sou<strong>the</strong>rn California “Super <strong>Law</strong>yers” in 2007.<br />
Considered among <strong>the</strong> best in <strong>the</strong>ir professions, “Super<br />
<strong>Law</strong>yers” represent <strong>the</strong> top five percent of all practicing<br />
attorneys in Sou<strong>the</strong>rn California.<br />
▲ CHAD PEDERSON,<br />
DIRECTOR OF MARKETING<br />
Fein, Such, Kahn & Shepard, P.C., a Collections and<br />
Creditor’s Rights law firm in Parsippany, NJ is pleased to<br />
announce that CLLA Member Chad Pedersen has come on<br />
board as Director of Marketing. Chad has been in <strong>the</strong> collections<br />
industry since 2001 and a CLLA member since 2002.<br />
He was previously with The Columbia <strong>Law</strong> List and The<br />
Forwarders List of Attorneys marketing <strong>the</strong> law lists to forwarders<br />
and attorneys alike. He will be marketing <strong>the</strong> firm in<br />
all collection fields. Fein, Such, Kahn & Shepard, P.C. is one<br />
of <strong>the</strong> largest creditor's rights firms in New Jersey.<br />
Chad Pedersen<br />
Fein, Such, Kahn & Shepard, P.C.<br />
7 Century Dr. Suite 201, Parsippany, NJ 07054<br />
Phone: 973-538-4700 x131<br />
Fax: 973-644-3287<br />
Email: cpedersen@feinsuch.com<br />
▲ BANKRUPTCY TRUSTEE<br />
SETTLEMENT GROWS<br />
In December 2006, Bankruptcy Trustee Marc P. Gertz<br />
announced a settlement with more than 70 former partners,<br />
law firms and insurers of <strong>the</strong> former Cleveland-based law<br />
firm of Arter & Hadden. This settlement was reached over<br />
claims made in a 16-count complaint, which was filed against<br />
<strong>the</strong> partners and <strong>the</strong>ir new law firms by <strong>the</strong> Trustee in <strong>the</strong><br />
U.S. Bankruptcy Court for <strong>the</strong> Nor<strong>the</strong>rn District of Ohio.<br />
The Trustee recently filed documents seeking approval of<br />
ano<strong>the</strong>r round of settlements involving three banks that<br />
loaned money to Arter & Hadden. Gertz and o<strong>the</strong>r parties<br />
to <strong>the</strong> case reached an agreement with J.P. Morgan Chase,<br />
Huntington Bank and Compass Bank <strong>the</strong>reby ending<br />
claims made by and against those banks since <strong>the</strong> demise of<br />
<strong>the</strong> law firm in 2003.<br />
In addition, <strong>the</strong> Trustee is asking <strong>the</strong> Cleveland Bankruptcy<br />
Court to approve settlements with more than 80 o<strong>the</strong>r partners<br />
(bringing <strong>the</strong> total to more than 150 defendants).<br />
Combined, <strong>the</strong> settlements call for <strong>the</strong> defendants and <strong>the</strong>ir<br />
insurers to pay approximately $10.5 million to <strong>the</strong> Trustee.<br />
This amount does not resolve claims against 35 additional<br />
partners who remain targets of <strong>the</strong> Trustee's lawsuit<br />
Arter & Hadden closed its doors on July 15, 2003, owing<br />
millions of dollars in pension obligations and o<strong>the</strong>r debts to<br />
creditors. The law firm was one of <strong>the</strong> nation's oldest. It<br />
began an aggressive expansion through an acquisition program<br />
in <strong>the</strong> 1990’s. Once a regional firm of 70 lawyers,<br />
Arter grew to 12 offices, 465 lawyers and 178 partners in<br />
Ohio, Texas, California and Washington, D.C.<br />
Gertz was appointed as Chapter 7 Trustee in January of<br />
2004, and conducted an 18-month investigation into <strong>the</strong><br />
cause of <strong>the</strong> firm's demise. The investigation by Gertz, his<br />
attorneys and forensic and information technology experts<br />
led to <strong>the</strong> filing of <strong>the</strong> complaint, which alleged improper<br />
year-end compensation distributions to <strong>the</strong> partners and<br />
o<strong>the</strong>r misconduct.<br />
According to Gertz, <strong>the</strong> settlement reached with <strong>the</strong> banks<br />
and <strong>the</strong> additional partners will narrow <strong>the</strong> scope of <strong>the</strong><br />
remaining litigation and will move <strong>the</strong> case closer to a conclusions<br />
and a significant distribution to creditors. The settlements<br />
were reached after many months of negotiations<br />
with representatives of <strong>the</strong> defendants and <strong>the</strong> banks. "With<br />
so many defendants (almost all of whom are lawyers), <strong>the</strong><br />
negotiations were complex and challenging," said Gertz,<br />
who expressed appreciation of <strong>the</strong> efforts made by his counsel<br />
and that of <strong>the</strong> o<strong>the</strong>r settling parties.<br />
Gertz is being represented in <strong>the</strong> action by Bernstein <strong>Law</strong><br />
Firm, P.C. of Pittsburgh, PA (Robert S. Bernstein, CLLA<br />
Member, and Charles E. Bobinis) and Goldman & Rosen,<br />
Ltd. of Akron, Ohio (Robert M. Gippin, Irving B.<br />
Sugerman and Michael A. Steel).<br />
For more information,<br />
please contact Bob Bernstein,<br />
Bernstein <strong>Law</strong> Firm, at 412.456.8101<br />
or rbernstein@bernsteinlaw.com<br />
or Irving B. Sugerman at 330.255.0714<br />
or ibsugerman@goldman-rosen.com<br />
▲ DAVID C. BERMAN - APPOINTED<br />
MORRISTOWN ADVISORY BOARD MEMBER<br />
Congratulations to CLLA Member David C. Berman.<br />
Lakeland Bank a NJ holding company has appointed him<br />
to <strong>the</strong>ir Morristown Advisory Board. As a member of <strong>the</strong><br />
Board he will serve as a liaison between <strong>the</strong> bank and its<br />
community. The goal is <strong>the</strong> promotion of stronger partnerships<br />
between <strong>the</strong> bank and <strong>the</strong> communities that it serves.<br />
David C. Berman<br />
David C. Berman, PC<br />
71 Maple Ave., Morristown, NJ 07960<br />
Phone: 973-631-1000<br />
Fax: 973-631-1111
member news<br />
▲ CLLA MEMBER PANELISTS SPEAK<br />
On Monday March 26th <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> and<br />
<strong>the</strong> following members spoke to <strong>the</strong> students at The John<br />
Marshall <strong>Law</strong> School (Chicago) on careers in <strong>the</strong> field of<br />
<strong>Commercial</strong> <strong>Law</strong>:<br />
Lauren Newman of Fagel, Haber, LLC<br />
Kevin Posen of Teller, Levit & Silvertrust ,PC<br />
Bryan V. Reed of Reed, Centracchio & Zac, LLC<br />
Walid Tamari of Tamari & Blumenthal, LLC<br />
▲ JOHN D. RUCK JOINS McCARTHY,<br />
BURGESS & WOLFF<br />
McCarthy, Burgess & Wolff, a Certified <strong>Commercial</strong> <strong>Law</strong><br />
<strong>League</strong> Collection Agency headquartered in Cleveland<br />
Ohio is pleased to announce that John D. Ruck has joined<br />
<strong>the</strong> organization. John has managed commercial forwarding<br />
for over twenty years with Grable, Greiner & Wolff as<br />
well as OSI. He’s been a <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> member<br />
since 1987 having served on a number of committees. He<br />
will be managing <strong>the</strong> Legal Forwarding Department.<br />
McCarthy, Burgess & Wolff, a commercial only Agency, is<br />
recognized as one of <strong>the</strong> 10 largest <strong>Commercial</strong> Agencies (as<br />
defined by revenues) in <strong>the</strong> country.<br />
▲ GAMACHE & MYERS, P.C. EXPANDS OFFICE<br />
Gamache & Myers, P.C., with offices in Missouri and<br />
Arkansas announces that it has moved to a new expanded<br />
headquarters also located in <strong>the</strong> St. Louis area. The firm’s<br />
new contact information is as follows:<br />
1000 Camera Ave, Suite A<br />
St. Louis (Crestwood) MO 63126<br />
(314)835-6600 (ph)<br />
(314)835-6604 (fax)<br />
The firm also is pleased to announce that CLLA member<br />
Donald A. Horowitz, Sara A. Monks, and Raymond P.<br />
Bozarth have joined <strong>the</strong> firm as associate attorneys in <strong>the</strong><br />
St. Louis office.<br />
▲ BARRY P. CAPLAN NAMED AS ONE<br />
OF THE OREGON SUPER LAWYERS FOR 2006<br />
CLLA Member Barry P. Caplan of <strong>the</strong> Portland, Oregon<br />
law firm of Sussman Shank has been named as one of <strong>the</strong><br />
Oregon Super <strong>Law</strong>yers for 2006. Four o<strong>the</strong>r members of<br />
<strong>the</strong> thirty lawyer firm were also named. The award recognizes<br />
<strong>the</strong> top 5% of all practicing lawyers in Oregon.<br />
▲ CAINE & WEINER RELOCATES<br />
TO LARGER SITE<br />
Caine & Weiner, a <strong>leading</strong> global accounts receivable<br />
management company, relocated <strong>the</strong>ir corporate headquarters<br />
on January 22nd from Van Nuys, California to Warner<br />
Center, an upscale business center located in Woodland<br />
Hills, 14 miles northwest of downtown Los Angeles.<br />
Founded in 1930, Caine & Weiner has full-service collection<br />
centers located in Chicago, Louisville, Buffalo and<br />
Tampa to serve <strong>the</strong>ir 2000 domestic and international<br />
clients. The company employs 150 team members of<br />
which 100 work at <strong>the</strong> Warner Center location.<br />
Contact:<br />
Frank Draper Vice President-Marketing<br />
21210 Erwin St., Woodland Hills, Ca 91367<br />
818-251-1725<br />
frank.draper@caine-weiner.com<br />
▲ ROBERT E. POTRZEBOWSKI, JR. BECOMES<br />
THE SOLE SHARE HOLDER OF KOHN LAW FIRM<br />
Attorney Robert E. Potrzebowski, Jr., has become <strong>the</strong> sole<br />
share holder of Kohn <strong>Law</strong> Firm S.C. in Milwaukee,<br />
Wisconsin, as of January 1, 2007. Founding firm member,<br />
Attorney Robert W. Kohn, is remaining “of counsel” part<br />
time with <strong>the</strong> firm from his Santa Barbara, California<br />
office. Attorney Mat<strong>the</strong>w J. Richburg has become <strong>the</strong><br />
firm’s Litigation Manager. Attorney Paula Brunner has<br />
joined <strong>the</strong> firm as an associate attorney. Doug Smyth has<br />
joined <strong>the</strong> firm as Collection Manager. ■<br />
▲ ALAN I. NAHMIAS NAMED<br />
ONE OF THE TOP 100 BANKRUPTCY<br />
ATTORNEYS IN SOUTHERN CALIFORNIA<br />
Alan I. Nahmias of Plotkin, Rapoport & Nahmias, in<br />
Encino, California was recently named by <strong>the</strong> Sou<strong>the</strong>rn<br />
California Super <strong>Law</strong>yers as one of <strong>the</strong> top 100 bankruptcy<br />
attorneys in Sou<strong>the</strong>rn California.<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY<br />
Debt 3 March/April 2007<br />
41
viewpoint<br />
A Salute to A President<br />
D av i d R . W a t s o n is <strong>the</strong><br />
Executive Vice President<br />
of <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong><br />
<strong>League</strong> of <strong>America</strong>.<br />
He can be reached<br />
at 312-781-2000 and via e-mail<br />
at dwatson@clla.org.<br />
“Sid, you have been a great president, a great leader and have left a<br />
lasting legacy of which you can be proud. Those you have positively<br />
affected and encouraged along <strong>the</strong> <strong>way</strong> will forever be grateful.”<br />
Sidney Friedman will be ending his CLLA presidency in<br />
Chicago this Spring. I have had <strong>the</strong> pleasure of working<br />
with Sid as a member of <strong>the</strong> Board of Governors since my<br />
first day here as Executive Vice President. As I reflected<br />
upon Sid’s presidency, I wanted to highlight what will be<br />
just a portion of <strong>the</strong> legacy he leaves behind.<br />
his business partners and is dedicated to ensuring that he<br />
upholds his end of <strong>the</strong> partnership. He loves <strong>the</strong> CLLA as<br />
well, and would not take on <strong>the</strong> role of president were he<br />
not able to perform <strong>the</strong> required duties as president with<br />
<strong>the</strong> same level of skill and commitment that he shows daily<br />
towards his family, his partners and his businesses.<br />
Debt 3 March/April 2007<br />
42<br />
Sidney has incredibly sound business acumen. It is no accident<br />
that he has been a successful lawyer and businessman.<br />
He understands that you are only as good as your last bank<br />
deposit and strives to continue to improve his business and<br />
instill that same pursuit of excellence in all of his employees.<br />
I remember asking Sid several years ago whe<strong>the</strong>r, at <strong>the</strong><br />
end of his three-year term as an attorney board member,<br />
he would be running for President of <strong>the</strong> <strong>League</strong>. His<br />
answer should have foreshadowed <strong>the</strong> type of leader he<br />
would be. Before he answered, he thought about <strong>the</strong><br />
question carefully, and responded as follows. “I want to<br />
make sure I am ready to assume that responsibility before<br />
I choose to run for President of <strong>the</strong> <strong>League</strong>’, he said.<br />
“I also want to be sure my business partners and my<br />
family are both committed to my taking on this incredible<br />
responsibility.”<br />
That response truly represents Sid’s leadership style and<br />
personality. Sid is a steadfast family man. He loves his<br />
family and focuses first and foremost on providing for <strong>the</strong><br />
needs of his wife, Fran, and <strong>the</strong>ir children. Sid also loves<br />
It has been said that great leaders make o<strong>the</strong>rs great. Sid fits<br />
that description to a “T”. He encourages o<strong>the</strong>rs to perform<br />
at <strong>the</strong>ir best and motivates <strong>the</strong>m to push <strong>the</strong>mselves beyond<br />
what may be comfortable. Yet, if <strong>the</strong>y fail, he is <strong>the</strong>re to<br />
again encourage that lessons be learned and that we must<br />
move onward. As president, he has encouraged his fellow<br />
board members to look at running <strong>the</strong> <strong>League</strong> more as a<br />
business. He has taken many of <strong>the</strong> lessons learned as a<br />
Prepaid Legal Services provider and applied <strong>the</strong>m to <strong>the</strong><br />
<strong>League</strong>. He has asked us to focus on customer/member satisfaction<br />
and expand our thinking to what markets we can<br />
and should be serving.<br />
As EVP, and with each new president, I get a new “boss”.<br />
Each president with whom I have had <strong>the</strong> pleasure of working,<br />
I have begun <strong>the</strong> year with an “incoming president,”<br />
but I have ended <strong>the</strong> year with a true friend. Such was<br />
indeed <strong>the</strong> case with Sidney Friedman. I have learned a<br />
great deal from Sid. His quiet confidence and no nonsense<br />
approach to management has been refreshing. Fur<strong>the</strong>r, his<br />
enthusiasm for <strong>the</strong> CLLA has been infectious. He does not<br />
shy a<strong>way</strong> from new ideas and is open to suggestions of how
we might provide better service to our members. He is an<br />
amazing salesman from whom his passion for <strong>the</strong> CLLA<br />
boils over as he discusses <strong>the</strong> benefits of <strong>the</strong> <strong>League</strong> with<br />
potential members at various trade shows.<br />
Perhaps, <strong>the</strong> ultimate compliment paid to Sid came recently<br />
when a number of his fellow Board members called Sid<br />
a “fa<strong>the</strong>r-like” figure for <strong>the</strong>m. They continued by saying<br />
that Sid had mentored <strong>the</strong>m and encouraged <strong>the</strong>m on <strong>the</strong><br />
road to becoming leaders <strong>the</strong>mselves in <strong>the</strong> <strong>League</strong>. He had<br />
provided for <strong>the</strong>m a role model <strong>the</strong>y hoped to emulate.<br />
Sid, you have been a great president, a great leader and have<br />
left a lasting legacy of which you can be proud. Those you<br />
have positively affected and encouraged along <strong>the</strong> <strong>way</strong> will<br />
forever be grateful. We will remain inspired by your gentle,<br />
but firm guidance and your unwavering ability to push us<br />
to think beyond what has al<strong>way</strong>s been and what might be<br />
if only we are to dream.<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY<br />
ADVERTISERS INDEX<br />
CCC, Inc. 20<br />
CLS-<strong>Commercial</strong> Legal Software 28<br />
<strong>Commercial</strong> Collection Agency Assoc. 29 & 45<br />
Greenberg, Grant & Richards 39<br />
Jonathan Neil & Associates<br />
Back Cover<br />
Good luck and thank you. We are all better for your having<br />
served this <strong>League</strong> as our President. Welcome to (as<br />
<strong>the</strong>y say) <strong>the</strong> best job in <strong>the</strong> CLLA – Immediate Past<br />
President!!<br />
The Notte Agency 31<br />
Todd Associates, Inc. 12<br />
Unifund 7<br />
Windham Professionals 18<br />
Debt 3 March/April 2007<br />
43
No need to beat <strong>the</strong> streets for<br />
CLE requirements you must meet<br />
The CLLA can save <strong>the</strong> day,<br />
CLE available <strong>the</strong> 24 hour <strong>way</strong><br />
Whe<strong>the</strong>r fuzzy slippers adorn your feet<br />
or in that cubicle or office seat<br />
CLLA online education programming<br />
at a cost you can't beat<br />
www.eondirect.com/clla<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
ONLINE EDUCATION<br />
SPONSORED BY THE CLLA FUND FOR PUBLIC EDUCATION<br />
CLLA online education programming is available thanks to funding from<br />
<strong>the</strong> CLLA Fund for Public Education, a sponsor of quality education for<br />
more than 26 years. The Fund seeks to provide education to those<br />
interested in <strong>the</strong> credit, collections, or bankruptcy fields through programs<br />
offered to <strong>the</strong> business community, <strong>the</strong> bar generally and, if appropriate, to<br />
<strong>the</strong> public at large. The Fund is al<strong>way</strong>s seeking input from those in <strong>the</strong><br />
field about topics of interest and new trends in <strong>the</strong> area of <strong>the</strong> law. Please<br />
email us at clla@clla.org for programming input and overall site reflections.<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY<br />
70 E. Lake Street, Suite 630 • Chicago, IL 60601 • 312.781.2000 • www.clla.org
When Selecting a Collection Agency be Sure to Ask…<br />
ARE YOU A CLLA CERTIFIED AGENCY?<br />
If <strong>the</strong> collection agency you are using does<br />
not display <strong>the</strong> above seal, <strong>the</strong>y are not an<br />
agency certified by <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong><br />
<strong>League</strong> of <strong>America</strong>, <strong>the</strong> nation’s oldest<br />
creditors’ rights organization. Use of CLLA<br />
Certified Agencies ensures that you receive<br />
<strong>the</strong> following protections and advantages:<br />
■ Professional services to help<br />
attain maximum dollar recovery.<br />
■ Prompt remittance of collected funds.<br />
■ On-going oversight to ensure adherence<br />
to a rigorous Code of Ethics.<br />
■ Minimum $300,000 surety bond<br />
for your protection.<br />
■ Maintenance of separate Trust Accounts<br />
for collected funds.<br />
■ Reputable collection procedures that maintain<br />
your customers’ good will.<br />
■ An experienced agency that has been in business<br />
for a minimum of five years.<br />
■ Agency executives who are required to attend<br />
yearly seminars and educational meetings.<br />
■ Assistance choosing legal counsel when necessary.<br />
■ Creditors may call on <strong>the</strong> Agency Association’s<br />
Executive Director should a complaint arise<br />
regarding an agency certified by <strong>the</strong> CLLA.<br />
To find out if your collection agency is a CLLA<br />
Certified Agency and to download free, informative<br />
literature that will help improve your collections,<br />
visit our Website at www.ccaacollect.com, or contact<br />
Emil Hartleb, Executive Director, at (973) 239-0721.<br />
Visit us at www.ccaacollect.com<br />
for informative, free literature on collections.
JONATHAN<br />
NEIL<br />
& ASSOCIATES, INC.<br />
Since 1981, a commitment to service and results<br />
COMMERCIAL COLLECTION<br />
CERTIFIED<br />
AGENCY ASSOCIATION<br />
CERTIFIED BY<br />
COMMERCIAL COLLECTIONS<br />
EDI PLACEMENTS AND REMITTANCES<br />
ACCOUNTS RECEIVABLE MANAGEMENT<br />
COLLECTION SEMINARS<br />
OUTSOURCING<br />
STAFFING<br />
CUSTOM LETTER WRITING PROGRAMS<br />
The JNA network enables instantaneous access to viewing updated file<br />
information, generating detailed reports and communicating with collectors.<br />
JNA wants you to feel confident when placing your accounts and welcomes<br />
your review of our daily work. We can think of no better <strong>way</strong> to demonstrate our<br />
skills and services than letting you watch us work your files. With offices<br />
throughout <strong>the</strong> United States, JNA can service all your collection needs<br />
regardless of <strong>the</strong> time zone.<br />
(800) 331-6333<br />
www.jnacollect.com<br />
Chicago<br />
San Francisco<br />
New Jersey<br />
Los Angeles<br />
Orange County<br />
18321 VENTURA BOULEVARD<br />
SUITE 1000, P.O. BOX 7000<br />
TARZANA, CALIFORNIA91357<br />
TEL: (818) 705-3770<br />
FAX: (818) 708-2885<br />
131-A STONY CIRCLE, SUITE 500<br />
SANTA ROSA,CALIFORNIA95401<br />
TEL: (707) 578-2318<br />
FAX: (707) 578-2331<br />
15615 ALTON PARKWAY, SUITE 450<br />
IRVINE,CALIFORNIA92618<br />
TEL: (949)271-6400<br />
FAX:(949) 271-6401<br />
1600 GOLF ROAD, SUITE1200<br />
ROLLING MEADOWS, IL 60008<br />
TEL: (847) 981-4754<br />
FAX: (847) 981-5006<br />
71 WEST MAIN STREET, SUITE 304<br />
FREEHOLD, NEW JERSEY07728<br />
TEL: (732) 409-6148<br />
FAX: (732) 866-6119