leading the way - Commercial Law League Of America

THE RESOURCE FOR BANKRUPTCY, 

COLLECTIONS AND DEBT RECOVERY 

d e b t 3 

Vol. 22 • Issue No. 2 

March/April 2007 

IN THIS ISSUE 

Me…Buy Debt? 

You Must Be Joking 

Public Relations for Professionals 

Risks and Responsibilities 

of Local Counsel 

Motivation at Work 

CLLA Ed-YOU-cation 

ethical 

considerations 

in Light of the Recent 

E-Discovery Amendments 

to the Federal Rules 

LEADING THE WAY

Commercial Law League of America 

LEADING THE WAY 

mission statement 

The Mission of the League is: 

• To be the pre-eminent source of professional services. 

• To promote the highest standards of professionalism. 

• To foster economic opportunities for its members 

in service to the credit industry. 

objectives 

The Objectives of the League are: 

• To elevate the standard and improve the practice of Commercial Law. 

• To encourage an honorable course of dealing among its members 

and in the profession at large. 

• To promote uniformity of legislation in matters affecting 

Commercial Law. 

• To foster among its members a feeling of fraternity and 

mutual confidence. 

2007 

SCHEDULE OF MEETINGS 

July 19-22, 2007 

CLLA Future Planning and Leadership Conference 

Royal Pacific Resort at Universal Orlando ~ Orlando, FL 

Sponsored by the Southern Region 

October 11, 2007 

CLLA Annual Breakfast and Education Program at NCBJ 

The National Conference of Bankruptcy Judges 81st Annual Conference 

Orlando Marriott World Center ~ Orlando, FL 


Western Region Meeting “Collections 2007” 

The Hilton Hotel ~ Universal City, CA 

Sponsored by the Western Region Members’ Association 

November 8-11, 2007 

87th New York Meeting 

Sheraton New York Hotel & Towers ~ New York, New York 

Sponsored by the Eastern Region Members’ Association

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Note: make all checks or money orders payable in U.S. dollars and drawn on a U.S. bank to: Commercial Law League of America ® .The price of an annual subscription 

to members of the Commercial Law League of America ® for the quarterly Commercial Law Journal ($12) and an annual subscription to the bimonthly Commercial Law 

Bulletin ($18) is included in a member’s dues. 

All applicants must remit one full year’s dues with application based on eligibility status. Dues are applied as of and prorated to the date application is 

received.Your name will be published as an Applicant for membership.The period for objections to be filed extends to the end of the calendar month following the 

date of publication. If no objection is received by that time, you will become a full member of the League and will be sent your New Member Handbook. 

Send first year’s dues and completed application to: Commercial Law League of America ® , 70 East Lake Street, Suite 630, Chicago, IL 60601. 

Phone: (312) 781-2000 Fax: (312) 781-2010 E-mail: clla@clla.org Internet Site: www.clla.org 

This is the official publication of the CLLA dues fee schedule as required by the CLLA Constitution. 

D3

contents 

Vol. 22 • Issue No. 2 


REMINDER: 

Please pay 

National 

Membership 

Dues 

Debt 3 (ISSN 0888-8000) is published bi-monthly by the Commercial Law League of America ® , 70 E. Lake Street, Suite 

630, Chicago, IL 60601; (312) 781-2000. POSTMASTER: Send address changes to Debt 3 70 E. Lake Street, Suite 630, 

Chicago, IL 60601. Periodicals postage paid at Chicago, Illinois and additional mailing office. 

Copyright ©2006 by the Commercial Law League of America ® . Permission to reprint materials in Debt 3 may be 

granted on written request to the Editor at the Commercial Law League offices. 

The views and conclusions expressed in articles are those of the authors and are not necessarily those of the 

Editorial Board, or of the Commercial Law League of America ® ; nor should any advertisement be considered an 

endorsement of the product or service involved. 

The price of an annual subscription to members of the Commercial Law League of America® ($18.00) is included 

in their dues. Annual subscription to others is $65.00 per year in the U.S. and Canada, $70.00 elsewhere. Single 

copy price is $15.00. Write the Commercial Law League of America ® , 70 E. Lake Street, Suite 630, Chicago, IL 60601; 

(312) 781-2000. 

8 

features 8 Ethical Considerations in Light of the Recent 

E-Discovery Amendments to the Federal Rules 

14 Me… Buy Debt? You Must be Joking 

league views 5 The President’s Page 

42 Viewpoint by David Watson 

marketing 16 PR ~ Public Relations for Professionals 

practice aid 22 Risks & Responsibilities of Local Counsel 

leadership 26 Motivation at Work ~ Making an Offer they Can’t Refuse! 

league business 30 CLLA EDYOUCATION • ABC Report 

member news 34 Member Benefits • Newly Admitted Members • Among Our Members 

14 

16 26 


LEADING THE WAY

You can expect 

results when 

you talk 

to leaders 

debt 3 

readers are their company’s key decision makers: 

82% 

74% 

89% 

are involved in the purchasing process and make 

the final purchasing decisions. 

are partner/owner/president/chair/CEOs. 

of Debt 3 readers have recommended, specified or approved 

the purchase of products and services, including: 

• Computer/office software, e.g. collection, bankruptcy, organizational 

• Law office automation services 

• Legal support services, e.g. skip tracers, auctioneers, 

process server services 

• Office supplies and equipment 

• Online information services 

Source: 2004 Debt 3 Independent Reader Survey 

For more information on how your company 

can target this exclusive audience, contact: 

Mark V. Matz 

Newcomb Marketing Solutions 

70 East Lake Street, Suite 630 

Chicago, IL 60601 

PHONE: 312.422.1653 

FAX: 312.781.20a0 

E-mail: markm@newcombsolutions.com 


LEADING THE WAY

about clla 

Vol. 

22 • Issue No. 2 


meeting notices 

CLLA Future Planning and 

Leadership Conference 

Orlando, Florida 

July 19-22, 2007 

CLLA Annual Breakfast and 

Education Program at NCBJ 

Orlando, Florida 


Western Region Meeting 

“Collections 2007” 

Universal City, California 


87th New York Meeting 

New York, New York 


editorial staff 

Board of Associate Editors 

Elliott D. Levin, Chair, Indianapolis, IN 

Leonard M. Salter, Chair Emeritus, Boston, MA 

David A. Rubin, Vice Chair, Toronto, ON 

Manuel Newburger, Vice Chair, Austin, TX 

Richard G. Baumann, Los Angeles, CA 

Lawrence C. Brown, Buffalo, NY 

Harry W. Greenfield, Cleveland, OH 

Nancy Hamilton, Cleveland, OH 

Lee M. Mendelson, Atlanta, GA 

David A. Rubin, Toronto, ON 

Robert Schatzman, Miami, FL 

William C. Sturm, Milwaukee, WI 

Editor Emeritus 

Leo E. Smith, Chicago, IL 

Editor 

David R. Watson 

Design/Publication Consultants 

Newcomb Marketing Solutions 

Editing Director 

Paige E. Barr 

officers and board of governors 

President 

Sidney Friedman, Baltimore, MD 

President-Elect 

Wanda Borges, Syosset, NY 

Treasurer 

Charles R. “Rick” Johanson, III, Birmingham, AL 

Recording Secretary 

P. George Eliades, II, Hopewell, VA 

Immediate Past President 

Jerry Myers, Raleigh, NC 

Board Members 

David R. Gamache, St. Louis, MO 

Joel H. Klein, San Antonio, TX 

Gary Weiner, Springfield, MA 

Ernest V. Thomas, III, Cincinnati, OH 

Robert S. Levy, Commack, NY 

Brian S. Behar, Aventura, FL 

John M. Birk, Gainesville, FL 

Robert P. Ingold, Buffalo, NY 

B. Emory Potter, Atlanta, GA 

Dan Hogan, Waukesha, WI 

Cathy S. Pike, Louisville, KY 

Jeff E. Rubin, Miami (Coral Gables), FL 

Executive Vice President 

David R. Watson 

the CLLA mission 

To be the pre-eminent source 

of professional services 

To promote the highest standards 

of professionalism and 

To foster economic opportunities 

for its members in service 

to the credit industry 

the CLLA objectives 

To elevate the standards and improve 

the practice of Commercial Law. 

To encourage an honorable course 

of dealing among its members and in 

the profession at large. 

To promote uniformity of legislation in 

matters affecting Commercial Law. 

the vision of DEBT 3 

To promote a reading resource along with a 

tool kit which will promote and advance the 

recovery of debt, including collections and 

bankruptcy, with a primary emphasis on 

commercial and a secondary emphasis on 

retail so that readers become more successful 

as a professional, leader, manager and a person. 

To foster among its members a feeling 

of fraternity and mutual confidence. 



League members and other readers are invited to submit previously unpublished articles on commercial practice or topics relating to 

the general practice of law. Articles should be submitted electronically via e-mail or by disk. The preferred format is Microsoft Word 

or plain text. WordPerfect is accepted but not preferred. All articles will be promptly reviewed. Send articles to clla@clla.org. Disks 

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 

800-978-2552. The fax number is 312-781-2010.

president’s page 

President, Commercial Law League of America ® 

Farewell Comments 

My abbreviated nine month term is over just as I am 

“hitting stride” and feeling comfortable. I suspect 

my predecessors, even with full one year calendar 

terms, had similar feelings. Probably just as well to end now, 

on a positive note, rather than stay on too long, make a strategically 

bad decision and wear out my welcome. Presidents are 

wise to exit early rather than too late. 

Fortunately, we have much to be thankful for, and little to regret. 

You, the reader, and my fellow members, can set the record 

straight if you disagree with my conclusions and ruminations by 

writing to me directly or the editor of Debt 3 for further discussion. 

I am sure we would enjoy the dialogue. Now some 

thoughts and thanks regarding the past year and our future. 

Thank goodness Dave Watson, our Executive Vice President, 

signed on for five years. He is a young, energetic and visionary 

leader (as I have often noted) and is the heart and soul of 

the reborn CLLA. He will provide the consistency we need, as 

Presidents, Boards of Governors, and other volunteer members 

come and go. Make sure he is happy and satisfied. The dividends 

will exceed whatever we pay him. 

Dave is blessed with good front office employees: Paula Lucas 

and Leslie Campbell who run the Chicago office for Dave 

enabling him to work from home most days and help care for 

his elderly parents. Paula and I have worked together at many 

trade shows where we have waved the “CLLA flag.” She is a 

good “public face” and someone who makes friends for us at 

those conferences. 

Dave and the CLLA are fortunate to have Suzanne Spohr and 

Dick Schascheck of TSO as our principal liaisons for back end 

operations, enabling us to reduce full time office staff. Suzanne 

coordinates and arranges meetings and conferences with our 

volunteers from the regions and sections. Dick handles 

accounting and finance duties, but he brings more than that to 

the job as Dave Watson has reminded me on many occasions. 

His behind the scenes comments and sage advice on a variety 

of issues, and willingness to move projects forward (i.e. Dave 

Watson’s bonus plan) elevate him to trusted advisor. 

Our decision to eliminate the Annual Summer Convention, 

limit major national conferences to Fall (New York) and Spring 

(Chicago), and restructure our major conferences to make 

them more member friendly, have caused attendance to 

increase at both meetings. I predict attendance swelling to 750 

and possibly 1,000 in the future. Sometimes less is more. 

Not only has attendance at our major conferences increased, 

but we are experiencing gains in CLLA membership, thanks to 

new membership drives. Advertising exhibitor revenue is also 

growing. Chicago exhibitor booths increased from twelve to 

twenty this year, almost doubling. 

Speaking of numbers, have you noticed a larger number of 

agencies attending our Fall and Spring conferences? Check out 

the Thursday “Meet and Greet” and Friday Triadic Agency 

Luncheon if you doubt my powers of observation. 

Better budget planning and controls plus increased revenue has 

and will enable us to continue projects which enhance the 

League’s attractiveness internally and externally: computer 

database update, making roster and League activity of members 

available at the push of a computer button to all of us, a 

transition to educational seminar materials on CD rather than 

on paper, continuation of outstanding education seminars with 

paid guest speakers, podcasts, tele-seminars, testifying before 

Congress, retention of our lobbyist, Dave Goch, with his timely 

legislative updates from Washington, are among many projects 

that enhance our public image and sustain membership. 

We are fortunate to have a strong core of volunteer leadership, 

which distinguishes us from other bar and trade groups. Our 

volunteers organize, energize and motivate our various sections 

and regions. Membership in the sections and regions allows 

each of us to belong to smaller groups, which cater to the particular 

or parochial needs of our members, whether they are 

bankruptcy attorneys, collection attorneys, agencies, or our 

various geographical regions. 

A new committee, focusing on consumer collections, is planning 

for the creation of a consumer collection section to meet 

the needs of our members who have segued into that arena to 

increase their business opportunities. The creation of a possible 

new section focusing on retail needs of our members is an 

example of my belief that the CLLA can be a big tent, and one 

-stop shopping forum for the entire credit industry. We should 

view ourselves as home to commercial and retail collections, 

bankruptcy, agencies, debt buyers, credit grantors and any 

other segment of the credit industry. We should even consider 

re-naming and re-branding ourselves as CLLA: Home to the 

Entire Credit Industry. Perhaps the strategic planning conference, 

chaired by President Wanda Borges, will consider this 

when they meet in Orlando, Florida this Summer to map out 

the future of our League. 

I end my term with an air of optimism for the future. We 

enjoy sound finances, harmony among our various constituencies, 

and solid ideas for our future. A few years ago, such a 

statement would have been ridiculed. 

It has been an honor to represent your League as President, to 

work with our dedicated professionals and volunteers, from 

those who serve on the Board of Governors to the various sections, 

regions and committees, and to proudly carry our “flag” 

into the credit community. It was an enriching experience for 

me and my wife, Fran, who was my constant companion 

throughout this adventure. I turn the reins over to Wanda 

Borges, our new President, satisfied that she has a solid foundation 

for her term. Wanda is energetic and bright. Our 

League will be in good hands under her stewardship for the 

next year. Good luck, Wanda. 

Sidney S. Friedman is an attorney 

with the law firm of Weinstock, 

Friedman & Friedman, PA. He can 

be reached at 410-559-9000 or 

ssf@weinstocklegal.com. 

NETWORKING 

5Debt3 March/April 2007

Patron FUND 

The CLLA Patron Fund provides an excellent means for CLLA members to 

give something back to their association. 

The Fund was established in 1963 and has a proud tradition of supporting the League and its endeavors. 

Patron Fund contributions create a financial reservoir that allows the League to underwrite worthy 

projects without the need for special fund drives. Patron Fund grants have been used to finance a 

variety of programs and projects that benefit our members and increase the overall visibility and viability 

of the League. In recent years, grants have been awarded to: 

✱ the CLLA Bankruptcy Section ✱ the Commercial Collection Agency Association ✱ 

✱ the Membership Development Committee ✱ the League’s Legislative Writer ✱ 

✱ the DePaul Business & Commercial Law Journal ✱ 

✱ the CLLA to underwrite the expenses of League Counsel ✱ 

✱ the CLLA to underwrite the cost of having a Liaison between the League and the NCBJ ✱ 

✱ the CLLA to establish the ABC Commission ✱ 

All League members are invited to join this esteemed group of colleagues by simply completing the 

pledge form below. Your pledge is a meaningful way to demonstrate your commitment to the 

Commercial Law League of America ® . 

Contributing companies or firms are recognized by publication in the Patron Roster and by special 

designation as Patrons on conference badges for their members. 



Return the completed 

form below to: 

CLLA 

36404 Treasury Center 

Chicago, IL 

60694-6400 

Phone: 

312.781.2000 

Fax: 

847.526.3993 

COMMERCIAL LAW LEAGUE OF AMERICA ® 

PATRON FUND PLEDGE FORM 

Please include my name among the esteemed list of colleagues that support the Commercial Law League of America ® as a 

Patron of the League. I understand that the minimum pledge to the Fund as established by the CLLA Board of Governors is $150.00. 

I also understand that my membership will appear by firm name when published in the Patron Fund Roster. 

❏ 

OR 

❏ 

I am enclosing my check made out to CLLA in the amount of $_____________________________. 

I am faxing my credit card information to 847-526-3993 authorizing CLLA 

to charge my credit card the amount of $_____________________________. 

❏ MasterCard ❏ Visa ❏ AMEX ❏ Discover 

Credit Card Number 

Exp. Date 

Signature 

Date 

I understand that my listing in the Patron Fund Roster will appear as shown below. 

Firm Name 

Location

ethical 


in Light of the Recent E-Discovery 

Amendments to the Federal Rules 

8Debt3 March/April 2007 

by Carolyn M. Branthoover and Karen I. Marryshow

Electronic communications and devices have changed the way we live and work. As 

those changes have occurred, litigants and courts have struggled with the application 

of traditional discovery rules to ever-evolving forms of electronically stored information. 

On December 1, 2006, several important amendments to the Federal Rules of Civil Procedure took 

effect. These amendments explicitly modify discovery procedures to address electronically stored information 

or “ESI.” In particular, the changes impose express obligations on parties to preserve, disclose 

and produce ESI. While much already has been written about the direct impact of these changes on 

the discovery process, lawyers must also consider thoughtfully how the recent amendments affect their 

ethical obligations. 

The recent amendments to the Federal Rules impact the ethical obligations of lawyers in a number 

of respects, but the focus of this Alert is on three such impacts. First, a lawyer’s fundamental duty of 

competence now extends more clearly to encompass competency regarding electronic technology, 

including the electronic capabilities of one’s clients. Second, a lawyer’s obligation to act diligently 

and promptly in representing a client now encompasses the prompt identification and preservation 

of a client’s electronically stored information. Third, a lawyer’s obligations as the recipient of inadvertently 

produced privileged documents are heightened by the “clawback” amendments to Rule 26. 

Each of these areas of increased professional responsibility is further explained and discussed below. 

Heightened Competency Requirements 

Rule 1.1 of the ABA Model Rules of Professional Conduct (“Model Rules”) requires that “[a] lawyer shall 

provide competent representation to a client. Competent representation requires the legal knowledge, skill, 

thoroughness and preparation necessary for the representation.” 1 This competency requirement already has been 

recognized by the courts as extending to the knowledge, skill, thoroughness and preparation necessary to engage 

in the discovery of electronically stored information. 2 The recent amendments to the Federal Rules, however, 

bring into sharper focus the extent to which counsel’s competency requirements now extend to ESI. By these 

amendments, parties are now obligated (i) even before receipt of a discovery request, to advise opposing parties 

of the description and location of electronically stored information supportive of its claims or defenses [Fed. R. 

Civ. P. 26(a)(1)]; (ii) to confer regarding any issues related to the disclosure or discovery of electronically stored 

information [Fed. R. Civ. P. 26(f)]; and (iii) to appropriately distinguish between electronically stored information 

that is reasonably accessible from that which is not [Fed. R. Civ. P. 26(b)]. Moreover, counsel of record 

shares responsibility with her client for compliance with these obligations [Fed. R. Civ. P. 26(f)]. 

Several years ago, in a series of groundbreaking decisions in Zubulake v. UBS Warburg LLC, District Judge 

Scheindlin of the United States District Court for the Southern District of New York analyzed, in great detail, 

discovery obligations related to the production of e-mail records. 3 Judge Scheindlin’s decisions set the standards 

by which electronic discovery practices, including counsel’s obligations to supervise and monitor discovery, are 

now often judged; and those standards are incorporated in many respects into the recently amended Federal 

Rules. With respect to attorney competency, Zubulake V made clear that a lawyer’s competency extends to 

(continued on page 10) 

1 The ABA Model Rules 

serve as the model for 

ethics rules in 47 states 

and the District of 

Columbia. The three 

states in which the 

Model Rules are not 

followed are California, 

Maine and New York. 

The ethics rules in these 

three states, however, 

similarly include a 

basic competency 

requirement. 

2 See, e.g. G.T.F.M., Inc. 

v. Wal-Mart Stores, Inc., 

2000 U.S. Dist. LEXIS 

3804 (S.D.N.Y. 2000) 

(court-imposed 

monetary sanctions 

on Wal-Mart for 

electronic discovery 

abuses and further 

findings that “counsel’s 

inquiries about 

defendant’s computer 

capacity were certainly 

deficient.”). 

3 Judge Scheindlin issued 

seven (7) published 

opinions in the Zubulake 

case. The most 

frequently cited are 

Zubulake v. UBS Warburg 

LLC, 220 F.R.D. 212 

(S.D.N.Y. 2003) (referred 

to as “Zubulake IV”) and 

Zubulake v. UBS Warburg 

LLC, 229 F.R.D. 422 

(S.D.N.Y. 2004) (referred 

to as “Zubulake V”). 

9Debt3 March/April 2007

ethical 




(continued from page 9) 

Debt 3 March/April 2007 

10 

4 Zubulake V, 229 F.R.D. 

at 432. 

5 2005 WL 674885 

(Fla. Cir.Ct. 2005). 

6 Coleman (Parent) 

Holdings, 2005 WL 

674885 at *6. 

7 Coleman (Parent) 

Holdings, 2005 WL 

674885 at *10. In a 

subsequent proceeding, 

counsel, by arguing 

that he was deprived 

of notice and an 

opportunity to be 

heard, was successful 

in having the 

revocation of his pro 

hac vice admission 

stricken, Clare vs. 

Coleman (Parent) 

Holdings, Inc., 928 

So.2d 1246 (Fla.2006), 

but that is small 

comfort given the trial 

court’s harsh criticism 

of counsel’s behavior. 

8 Zubulake IV, 220 F.R.D. 

at 218. 


at 432. 

“becom[ing] fully familiar with her client’s document 

retention policies, as well as the client’s data retention 

architecture.” 4 This same expectation of competency is 

now incorporated into the requirements of Federal 

Rule 26. Thus, lawyers must know how their clients 

create and use electronically stored information; how 

they save it; and how it may be deleted or lost – all so 

that discoverable ESI can be properly disclosed, 

preserved and produced. This may require extensive 

investigation by counsel, including interviews of 

information technology personnel as well as “key 

players” in the litigation, but there is no longer any 

question that counsel is obligated to become reasonably 

knowledgeable about her client’s electronic information 

and related technology. 

A recent decision underscores the considerable risks 

faced by counsel should they ignore their obligation to 

be knowledgeable regarding their clients’ ESI. In 

Coleman (Parent) Holdings, Inc. v. Morgan Stanley & 

Co., Inc., 5 a Florida state court found that defendant 

Morgan Stanley had engaged in numerous discovery 

abuses in connection with e-mail production and 

imposed one of the harshest sanctions available, i.e., 

that an adverse inference instruction be read to the 

jury at trial. Additionally, the court found that 

Morgan Stanley’s counsel misrepresented the cost of 

retrieving and producing certain e-mails and allowed 

false certificates of discovery compliance to be 

submitted to the court. The court also criticized 

defense counsel for having “carefully crafted” responses 

to discovery inquiries so as to avoid disclosure of the 

existence of certain ESI and to avoid “outright lying.” 6 

The court was so disturbed by counsel’s involvement in 

Morgan Stanley’s “deliberate” and “contumacious” 

violation of its discovery obligations that it revoked the 

pro hac vice admission of lead defense counsel. 7 

Lawyers are on notice. Their obligation to provide 

competent representation in litigation now encompasses 

reasonable knowledge, skill, thoroughness and preparation 

regarding a client’s ESI and related technology. 

Heightened Diligence 

Obligations 

Model Rule 1.3 provides that “[a] lawyer shall act with 

reasonable diligence and promptness in representing a 

client.” Additionally, Model Rule 3.4 requires that a 

lawyer shall not “fail to make reasonably diligent effort 

to comply with a legally proper discovery request by 

an opposing party” and shall not “unlawfully obstruct 

another party’s access to evidence or unlawfully alter, 

destroy or conceal a document or other material 

having potential evidentiary value.” The speed with 

which electronically stored information is created and 

altered and the diversity of computer systems and programs 

used to automatically store and delete such 

information dramatically impacts a lawyer’s obligations 

to act diligently with respect to the preservation 

of discoverable ESI. 

Recently amended Federal Rule 26(b)(1) requires 

that all potentially relevant evidence, specifically 

including ESI, be preserved. As explained in 

Zubulake IV, this obligation attaches at the moment 

a party reasonably anticipates litigation. At that time, 

the party “must suspend its routine document “retention/destruction 

policy and put in place a ‘litigation 

hold’ to ensure the preservation of relevant documents.” 

8 As further explained in Zubulake V, counsel 

shares in these obligations and is required to: 

• Oversee the client’s implementation and 

compliance with a “litigation hold” designed 

to preserve all relevant evidence; 

• Make certain that all sources of potentially 

relevant information are identified and placed 

“on hold;” 

• Become fully familiar with the client’s 

document retention policies, as well as the 

client’s data retention systems; and 

• Take affirmative steps to monitor the client’s 

production of relevant documents. 9

The Zubulake V court was confronted with the defendant’s 

failure to preserve a number of relevant e-mail 

files. The court was extremely critical of both the 

defendant and its counsel, finding that “counsel failed 

to properly oversee UBS in a number of important 

ways, both in terms of its duty to locate relevant 

information and its duty to preserve and timely 

produce that information.” 10 Further, the court concluded 

that while “UBS personnel deleted e-mails, 

copies of many of these e-mails were lost or belatedly 

produced as a result of counsel’s failures.” 11 The price 

paid for these failures was steep. The court imposed 

sanctions that included an adverse inference instruction 

with respect to e-mails deleted and irretrievably 

lost and payment of the costs of any depositions or redepositions 

required by the late productions. 

The Zubulake V court refrained from imposing sanctions 

upon defense counsel, but defense counsel were 

not as lucky in Phoenix Four, Inc. v. Strategic Resources 

Corp., 2006 U.S. Dist. LEXIS 32211 (S.D.N.Y. 

2006). In Phoenix Four, despite notice of pending litigation, 

defendants failed to search a number of computer 

workstations to determine whether they contained 

information related to the litigation. In seeking 

sanctions following the late production of ESI 

amounting to hundreds of boxes of documents, the 

plaintiff claimed that both the defendants and their 

counsel had failed to conduct a reasonable and timely 

inspection of computers and servers in defendant’s 

possession. 12 The court found both defendants and 

counsel to have been remiss. With respect to defense 

counsel’s behavior in particular, the court found that 

their lack of diligence was “grossly negligent” when 

they failed to inquire sufficiently of their client 

regarding the disposition of office computers. 13 The 

court imposed monetary sanctions that it further 

ordered were to be borne by the defendants and their 

counsel equally. 14 

The message is clear. ESI presents unique risks of discoverable 

information being lost, and these unique 

risks heighten the diligence required of lawyers to take 

immediate action to prevent the loss of relevant ESI as 

soon as litigation arises or is reasonably anticipated. 

Heightened Protection 

for the Heightened 

Risks of Inadvertent 

Production 

Model Rule 4.4(b) requires that “[a] lawyer who 

receives a document relating to the representation of 

the lawyer’s client and knows or reasonably should 

know that the document was inadvertently sent shall 

promptly notify the sender.” The risk of inadvertent 

production is heightened in the context of ESI 

simply because the sheer volume of ESI produced in 

discovery can be massive. In recognition of this heightened 

risk, recently amended Federal Rule 26(b)(5) 

includes a “clawback” procedure for handling inadvertently 

produced information. By this amendment, a 

party’s inadvertent production of privileged information 

is protected and specific procedures are established 

for handling such inadvertent productions. For those 

who are required to produce large quantities of ESI 

and may have limited time to conduct a thorough privilege 

review, the “clawback” procedures are an important 

new protection. 

Model Rule 4.4(b) and Federal Rule 26(b)(5), however, 

do not complement each other well, and this is 

an area where further developments can be expected. 

For example, in today’s digital environment, a party’s 

obligations and its counsel’s obligations with respect 

to metadata are not clear. Metadata is data about 

data. More importantly, it is usually data that is not 

apparent on the face of a particular record. Metadata 

may reflect information about who created a document, 

who edited it, when changes were made, and 

what changes were made. Parties who receive records 

of a type likely to contain metadata are often able to 

engage in “metadata mining.” What is not clear is 

whether a party is free to assume that metadata was 

intentionally produced (and thus is free to “mine” it 

and take advantage of it) or whether a party must 

assume that it was inadvertently produced (and thus, 

if privileged, must return it pursuant to the “clawback” 

provisions of Federal Rule 26(b)(5)). 


at 435. 


at 436. 

12 Phoenix Four, 2006 

U.S. Dist. LEXIS 32211 

at *14-15. 



at *20. 



at *28. 



11

ethical 





15 American Bar 

Association Formal 

Opinion 06-442 

(August 5, 2006). 

16 Maryland State 

Bar Association, 

Committee on Ethics, 

Opinion 2007-092 

(November 2006). 

What remains unclear 

is whether the 

Maryland Bar 

Association would 

reach a different 

conclusion if the 

metadata contained 

privileged information. 

17 New York State 

Bar Association, 

Committee on 

Professional Ethics, 

Opinion 749 

(December 14, 2001). 

18 Florida Bar Association, 

Confusing matters further, those states that have considered the ethical implications of metadata mining have 

reached differing conclusions. The Model Rules contain no specific rules prohibiting it, 15 and the Maryland 

Bar Association has issued an ethics opinion stating that “there is no ethical violation” if a lawyer “reviews or 

makes use of the metadata without first ascertaining whether the sender intended to include such metadata.” 16 

In contrast, however, the New York Bar Association has issued an ethics opinion prohibiting lawyers from 

“mak[ing] use of computer software applications to surreptitiously ‘get behind’ visible documents or to trace e- 

mail.” 17 The Florida Bar Association has reached a conclusion similar to that of New York. 18 With respect to 

metadata, therefore, counsel’s obligations remain either uncharted or dramatically different depending upon 

which state’s law applies. 

Conclusion 

As the Zubulake V court cautioned: “Now that the key issues have been addressed and national standards are developing, 

parties and their counsel are fully on notice of their responsibility to preserve and produce electronically 

stored information.” 19 Counsel’s obligations in this regard derive from their ethical obligations to represent a 

client’s interests competently and diligently. Those obligations are not new. The world in which they apply, 

however, has changed dramatically and will continue to do so. Counsel, in order to satisfy their ethical obligations 

and the newly amended Federal Rules are required to stay abreast of those changes. 

Ms. Branthoover is a partner of Kirkpatrick & Lockhart Preston Gates Ellis LLP and 

practices in the area of complex commercial litigation, with a particular focus on insurance 

coverage matters related to environmental, toxic tort and product liabilities. She has 

represented major industrial clients in numerous state and federal courts throughout the 

country. 

Ethics Committee 

Opinion 06-02 

(September 15, 2006). 

Carolyn M. 

Branthoover 

Karen I. 

Marryshow 

Ms. Marryshow is an associate in the litigation group, and practices in the 

e-Discovery Analysis & Technology Group and Records Management practice. 


at 440. 

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12 

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www.clla.org 

Where leaders go to be in the know. 

HAVE YOU “CLICKED” LATELY? 

It’s the site designed by commercial law professionals 

for commercial law professionals—featuring: 

Breaking news that affects you— 

Read up on the latest from Washington, D.C., Member News, 

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Calendar of events— 

Learn about and register for upcoming regional 

and national meetings where you can meet 

colleagues, network with peers, learn about 

new and upcoming legislation, and attend 

educational sessions. 

Directory of Members— 

Access the CLLA Names Directory 

to stay in contact with colleagues 

near and far. Non-members can 

find professional assistance in their 

city simply by entering a city, state, 

or zip code. 

General resources— 

Find copies of the New Bankruptcy Code, 

various CLLA Position Papers, and a list of Data 

Breach Notification Laws by state. 

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Find Attendee Lists from CLLA sponsored events, receive discounts up 

to 60% on LoisLaw searches, discounts on INSOL membership, and 

discounts on encrypted data backup services from Green Backup. 

Shopping cart— 

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Me…Buy Debt? 

Y O U M U S T B E J O K I N G 

by David G. Rosenberg, President, CEO and Founder of Unifund 

Why would someone sell bad debt and 

why would a collection law firm want to 

buy it? If you happen to look on eBay 

you find millions of items which have value to prospective 

buyers but the owners are “done with them.” The same is 

true in the debt purchasing marketplace. Essentially, buyers 

buy debt, or buy on eBay, when they have spotted a beneficial 

opportunity and sellers sell when their items are no 

longer of use to them, i.e., the paper reaches the end of its 

productive life for its current owner. There IS STILL 

VALUE in the item up for bid, just less value than when the 

item was brand new. Remember that you too can find 

those opportunities in the debt buying marketplace as you 

read the following overview of the benefits to both buyers 

and sellers. 


14

Benefits to Sellers 

The sale of delinquent account receivable portfolios has 

attractions for both buyers and sellers. Sellers can be 

grouped into two general categories: original creditors and 

resellers. Original creditors typically benefit by increasing 

their cash flow in an immediate and effective way and most 

originators will admit that cash flow is the driving factor in 

the timing of the sale of their portfolios. Resellers typically, 

but not always, are collection agencies who resell debt 

once they are “done” collecting on the paper or decide to 

sell at the point when it is equally as cost effective to liquidate 

the portfolio as it is to perform further collection 

efforts (when accounting for factors such as time, staffing 

and other resources), essentially a “break-even” point. A 

third type of reseller also buys paper from originators and 

then segments those national portfolios into smaller files 

which are then attractive to regional, state and local buyers. 

Original creditors may choose to sell their accounts receivable, 

rather than collect them in-house or refer them to an 

agency because they believe that the sale of the debt reduces 

their legal liability. With the publicity generated by court 

cases in which creditors have been held liable for collection 

agency practices, today’s environment is one in which some 

creditors would rather terminate their legal connections to 

agencies and debtor accounts. Many creditors believe that 

selling their debt resolves any agency related legal liability 

because the buyer becomes the owner of the debt. 

Creditors may also sell their paper in order to maintain a 

good relationship with the debtor. Creditors can distance 

themselves from the collection process and hope to keep the 

debtor as a current or potential future customer. (A defaulted 

credit card customer may still be a debit card, banking 

or mortgage customer of a bank and the bank may not 

want to lose those relationships.) Creditors may also sell 

when they feel the market has priced their debt at an “indifference 

price,” the price at which it is a break-even to sell 

today verses expected collections on the accounts for the 

foreseeable future. Whether it is the original creditor or the 

fourth buyer of an account, a seller will sell when they feel 

they have extracted maximum value from their investment 

or when the paper no longer fits their business model. 

Benefits to Buyers 

Collection law firms can benefit substantially from purchasing 

accounts receivable. By utilizing a variety of collection 

methods, skilled collection personnel and a broad 

range of techniques, considerable profit can be made. Some 

particularly profitable debts include charged-off consumer 

credit card accounts, consumer loans, dishonored checks 

and judgments. Often, debt buyers can purchase these 

types of loans at pennies on the dollar and recover their 

investment and much more in about three years. This type 

of profit margin has made purchasing delinquent accounts 

receivables an attractive option for collection law firms. 

Today, collection organizations of all types are feeling 

increasing pressure to either consider buying or to increase 

the percentage of debt they buy verses contingency. By purchasing 

delinquent debt portfolios, buyers are able to take a 

longer view of the collection horizon verses the “sprinters 

mentality” needed in order to maximize collections during 

shorter placements. Also, collection law firms realize the 

value of combining contact collection strategies with legal 

collection strategies in order to achieve maximum portfolio 

yield by liquidating different parts of a portfolio using 

different methods. 

Often, firms are restricted by their clients as to the type of 

payment plans or terms that they can offer debtors. In contrast, 

when law firms own accounts, they can be more flexible 

in the terms they will accept and can pursue debts more 

enthusiastically without the time limitations set by original 

creditors. Firms that purchase debt are no longer subject to 

the normal administrative reporting and remitting expenses 

required in traditional third-party collections. 

Operationally, “placed accounts” drive a firm to meet and 

exceed a client’s service level agreements for activity, not necessarily 

meeting or exceeding results. Debt purchasing 

allows the buyer to invest disproportionately in the accounts 

with the highest potential return on investment over time. 

In fact, many legal collection firms are buying “litigationready” 

portfolios where the debtor account has an asset, typically 

a home. These accounts are placed immediately into 

a legal process with no “collection floor” time or effort and 

are viewed as more efficient to collect upon. 

Debt buying also gives a measure of comfort and insurance 

for those who augment their contingency business with a 

healthy dose of purchased debt. Call it an insurance policy 

against potentially other lost business because, with purchased 

debt you control the workflow, you don’t worry 

about getting “fired” or face a total recall of a placement 

and your profit margins should significantly improve as 

well. Besides, with purchased debt you get to keep all the 

money instead of sending most of it back to the client AND 

you can sell the portfolio once you feel you have extracted 

your maximum value. 

If you do decide to buy and sell… 

The buyer and seller should pursue the transaction realizing 

that there is some inherent risk for both parties. As a 

buyer you will want to mitigate the risks and create the 

environment for a mutually profitable experience. By not 

“rubbing it in” that either side is getting the better or worse 

end of the deal, both parties can create the professional 

dialogue, results and atmosphere which will lead to additional 

successful future transactions. 

David G. Rosenberg, 

Chairman and CEO, Founder 

The Unifund Group 

In 1986, David Rosenberg 

established The Unifund 

Group as one of the first 

companies to purchase 

underperforming and 

distressed consumer 

receivables. Over the past 

20 years,The Unifund Group 

has developed proprietary 

tools and invested heavily in 

technology which allows it 

to evaluate, purchase and 

liquidate diverse portfolios 

of obligations from a broad 

variety of originating 

institutions and resellers. 

The companies which 

comprise The Unifund Group 

work under various forms 

of joint venture, participation 

and management agreements 

to maximize portfolio 

recoveries from both 

wholly-owned portfolios 

and portfolios owned by 

other institutions. 

Mr. Rosenberg has written 

many published articles 

regarding consumer debt, 

and he is the author of a 

manual issued by the 

American Collectors 

Association (ACA) entitled 

How to Buy Bad Debt. 

He is a frequent speaker 

at industry trade shows 

on the subject of buying 

and selling distressed 

consumer receivables. 


15

marketing 

Is it important that prospective 

clients see you as an expert in 

your field? 

Is it important to be an influential 

voice with governmental bodies, 

courts, and the business 

community? 

Does having your name 

mentioned positively in 

professional journals and 

news outlets helps to build your 

professional credibility? 

Then public relations 

(PR for short) should be 

a keystone in your 

PRmarketing plans. 

PUBLIC RELATIONS 

FOR PROFESSIONALS 

by Kelly Newcomb, Newcomb Marketing Solutions 

PR is often misunderstood. It may conjure up the notion 

of political “spin doctors,” Hollywood image consultants, 

or the proverbial “publicity hound.” PR has been used to 

manipulate, stretch, and even bury the truth. However, 

while PR has had some rather bad PR over the years, for the 

most part it is a positive and powerful force in business and 

society. It can build businesses, build careers, and educate 

the public. 


16 

At the heart of any professional public-relations effort 

should be a strong underlying passion to educate public 

opinion, provide intellectual dialogue, inform colleagues 

and competitors, and speak the truth as you know it. If the 

object of your publicity campaign is to garner recognition 

and respect for your company and your personal “brand,” 

then the best way to do it is to deliver the goods.

marketing 

Information, education, and reasonable opinions are always 

in short supply, but they are the stock and trade of most 

professional media. If you can deliver it, they will publish 

it. Especially if you can send pictures! 

PR is a valuable marketing tool that can be superior to 

advertising, because it is based on third-party influence, 

endorsement and acceptance. In other words, if others have 

heard what you have to say, found it worthwhile, and 

published it then you are not “blowing your own horn.” 

PR builds brand value, communicates messages, and develops 

your identity in the market place. And compared to 

advertising, the production and placement costs are lower. 

However, advertising and PR often have a symbiotic 

relationship. In other words, the publisher who runs your 

space ads on a frequent basis may consider your press releases 

more newsworthy than say a press release from someone 

with whom he or she has never been previously acquainted. 

PR is so important that it should be strategically managed 

in the same way that operations, finance, administration, 

technology, human resources and other facets of your business 

are managed. 

In addition to publishing in professional journals and trade 

magazines, PR can take many other forms including, 

broadcast media relations, speeches and presentations, 

newsletters, public service announcements, internal or 

employee communications, sponsorship of special events 

and/or trade shows, charitable programs and sponsorships, 

crisis communications, letters to editors, white papers, case 

studies, and press releases to community newspapers. 

THE PRESS RELEASE 

Perhaps the simplest and most common tool of PR is the 

press release. It is important to remember that many things 

you, your employees, or company do are newsworthy. 

Stories about gaining a new client, speaking at a major trade 

show or association meeting, helping at a charity event, 

providing commentary at government functions, being elected 

to board membership or becoming a board executive, 

developing a new product or service, hiring and promoting 

employees, and celebrating anniversaries are newsworthy to 

trade publications and local business sections or magazines. 

If your business or organization isn’t finding something 

newsworthy for a press release at least once a month, you 

are missing a great marketing resource. You may wonder 

who reads all those little news snippets you see in the 

columns of your local magazines and newspapers? Well, 

everyone at some time or another. Haven’t you? Every time 

a client, prospective client, prospective employee, or business 

associate sees your name or your company’s name in 

print, it helps build your reputation, your brand and your 

business’ success. 

Collecting press releases and publishing them on your web 

site is a good way of developing an online history of your 

company’s recent activity. This provides a great source of 

positive information for people who are using your web site 

to learn more about your company. 

THE NEW IMPORTANCE 

OF BLOGGING 

The term “blog” is derived from “Web log.” Like an ongoing, 

online diary of you or your company’s opinions and 

activities, a blog can be used both internally, to enhance the 

communication and culture within your company, or 

externally to maintain an ongoing relationship with clients, 

to draw positive attention to your business, and to communicate 

with prospects, colleagues, the media and others you 

wish to influence. 

If you haven’t familiarized yourself with the world of 

“blogging” yet, you should at least make yourself aware of 

how quickly this online tool is growing and how influential 

it is becoming. As of November 2006, blog search engine 

Technorati was tracking nearly 60 million blogs. Blogs are 

beginning to influence media and government at the highest 

levels. Several recent scandals in congress were brought 

to the public’s attention by bloggers. 

PROFESSIONAL ARTICLES 

AND SPEECHES 

An old saying in the academic world—“publish or perish”—also 

applies to the business and legal world. Both 

publishing and public speaking are ideal ways to get recognition 

for your knowledge, skills, and accomplishments— 

all attributes that new clients are looking for in a business 

partner or advisor. 

If you haven’t published before, it is easier than you might 

think. Start by looking at the topics in the professional 

magazines and journals you read and start thinking about 

article ideas that would fit the editorial content of these 

publications. Once you have a topic, it is not much different 

than doing a college paper on the subject. You’ll need 

to do some research, keep track of your references, and 

express your opinion. If your personal writing skills are 

weak, put a draft together and let someone with stronger 

skills edit and improve the article. Often professionals hire 

freelance ghost writers to do most of the work for them. If 

you have the content expertise and experience, you need 

not actually write the article, just sit for an interview with 

the writer and then edit the writer’s draft to make sure the 

content is accurate and conforms to your own ideas and 

opinions. 

Giving a speech may be even easier than getting published, 

especially if you have expertise in areas that you can share 

with less experienced colleagues. Professional organizations 

like the CLLA and others are frequently looking for volunteers 

to speak at meetings and conventions. Since many 

studies have shown that fear of public speaking ranks nearly 

as high as fear of death, volunteers are not always easy to 

come by. 

I personally thought I would never be able to speak in public, 

however in the last couple of years I have started giving 

professional speeches and found it much easier than I 

dreamed it would be. I recently spoke in front of a group of 

600 small business owners and didn’t feel any more nervous 


PR is a valuable 

marketing tool 

that can be 

superior to 

advertising, 

because it is 

based on 

third-party 

influence, 

endorsement 

and acceptance. 

In other words, 

if others have 

heard what you 

have to say, 

found it 

worthwhile, 

and published it 

then you are not 

“blowing your 

own horn.” 


17

marketing 

PR 


PUBLIC RELATIONS 

FOR PROFESSIONALS 

than if I had been speaking in front of a dozen people. For 

me, the secret to getting over my fear was threefold: 1.) to 

admit from the outset to the audience that I was nervous— 

this helps relieve my fear of failure, and often draws a 

chuckle from the audience; 2.) to speak on a subject that I 

know very well so that I can follow an outline without trying 

to memorize anything; and, 3.) to get off the podium 

and walk among the audience focusing my attention on the 

individuals who I make eye contact with as I move. This 

latter technique helps me feel like I am talking to individuals 

in a small class rather than to a large crowd. 

THE FIVE GREATEST 

STRENGTHS OF PR 

To sum it up, public relations has five great strengths over 

other forms of marketing, they are: 

CREDIBILITY—Because you are not directly “purchasing” 

the time and attention of your audience, someone at a 

publication, media outlet, special event or a leader within 

an organization has tacitly endorsed the validity of your 

message. 

TIMELY—Announcements can be developed on a very 

tight schedule. Newspapers, association newsletters, and 

trade magazines must be published regularly and they are 

always on the lookout for breaking news. A blog or other 

Internet-based PR program can be created and delivered in 

a matter of hours. 

TARGETED—PR can be highly targeted to the appropriate 

audience of decision makers. A proper mix of such 

diverse audiences as customers, employees, investors, partners 

and suppliers can be specifically targeted based on 

where and when the PR is delivered. 

COST EFFECTIVE—While the development cost and 

tracking of PR can be expensive and time consuming, it is a 

fraction of what can be spent developing ads and buying 

space or media time to run them. 

CUMULATIVE POWER—Story ideas, speeches, and content 

can be reformulated and utilized again and again. 

Written reprints, text references and Web archives all help 

a single story last for months or even years. Reprints of a 

published article can also be mailed directly to targeted 

audiences. 

With some 13,000 individual magazine titles published in 

the United States, and thousands of professional meetings, 

conventions, and association events each year, there are 

innumerable ways to deliver newsworthy stories, educational 

pieces and well-reasoned opinion. PR has the unique 

ability to tell stories that resonate within a narrowly focused 

interest group. The more information and value you can 

deliver to a particular audience, the more credibility and 

name recognition you will gain. And, that’s not only good 

for your business, it’s good for everyone with whom you 

communicate. 

Kelly Newcomb, President of Newcomb 

Marketing Solutions has been helping organizations 

with strategic planning, development of 

client-loyalty programs, and the execution of 

marketing campaigns for more than seventeen 

years. He also owns and facilitates Can Do! 

Success Building Programs designed to help organizations improve 

organizational culture and effectiveness, team-building, brand 

development, sales and communications. He can be reached at 

kelly@candosuccess.com or at 1-800-921-1221. 


18

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practice aid 

Although many law firms have offices in multiple states 

and thus enjoy broad geographic reach, it remains common 

for lawyers to hire lawyers in other jurisdictions to 

act as local counsel in litigation. Local counsels’ roles vary widely. 

A local counsel may be nothing more than a “mail drop.” 

Alternatively, local counsel may appear in court and engage in 

discovery without participation by the out-of-state firm hiring 

them. Although lawyers hiring local counsel investigate to some 

extent the firms they hire before doing so, and most local counsel 

check out their potential co-counsel and client before agreeing 

to serve, and everyone checks for conflicts of interest, these relationships 

nonetheless hold the potential for sanctions, malpractice 

liability, and professional discipline. 

Perhaps the leading case on the potential professional liability of 

local counsel is Macawber Engineering, Inc. v. Robson & Miller, 47 

F.3d 253 (8th Cir. 1995). In that case, Macawber retained the 

New York law firm of Robson & Miller to defend it in a 

Minnesota case. Robson & Miller in turn engaged Steven Hedges 

of the Minnesota firm of Abdo & Abdo as local counsel. After filing 

motion for admission pro hac vice on behalf of Robson & 

Miller, Hedges was not actively involved in the litigation. The 

plaintiff in the underlying case, Red Rock, eventually served 

Robson & Miller with over 100 requests for admission. Red Rock 

did not serve the requests on Hedges. Robson & Miller did not 

respond to the requests and Red Rock later moved for summary 

judgment based on the facts accordingly admitted. Macawber 

ultimately confessed judgment for just over $67,000. The firm 

then sued Robson & Miller, Hedges and Abdo & Abdo for legal 

malpractice in failing to respond to the requests for admission. 

The district court granted summary judgment for Hedges and his 

firm when Macawber’s expert was unable to articulate that standard 

of care applicable to a reasonable lawyer acting as local 

counsel. Id. at 255. Macawber appealed to the Eighth Circuit. 


22 

RISKS & 

RESPONSIBILITIES 

OF LOCAL COUNSEL 

by Douglas R. Richmond

practice aid 

The Eighth Circuit affirmed, reasoning that that the negligent 

conduct about which Macawber complained was 

beyond the scope of its attorney-client relationship with 

Abdo & Abdo. Macawber’s retention letter to Hedges stated 

that the company wished to “confirm our appointment of 

your firm as our local counsel in support of litigating attorneys, 

Robson & Miller,” in the Red Rock case. Id. at 256. 

Macawber’s CEO testified that he relied on Robson & 

Miller to handle the Red Rock litigation and to direct local 

counsel’s activities. Robson & Miller lawyers testified that 

Abdo & Abdo’s role was limited and that the firm did 

everything asked of it. The court concluded that the attorney-client 

relationship between Macawber and Abdo & 

Abdo “was limited in scope and did not encompass a duty 

to monitor the discovery process and ensure responses to 

the requests for admissions.” Id.. at 257. 

Macawber countered by pointing to a District of 

Minnesota local rule requiring non-resident lawyers to 

associate with a member of the Minnesota bar before 

appearing in any action or proceedings before the court, 

and stating that local counsel must “participate” in the 

matter for which they are retained. The Eighth Circuit 

deferred to the district court’s interpretation of the rule. As 

interpreted by the district court, the rule did not require 

Hedges to monitor the discovery process. 

The court in Macawber stated that “[l]ocal counsel does 

not automatically incur a duty of care with regard to the 

entire litigation. When the client vests lead counsel with 

primary responsibility for the litigation, the duty of local 

counsel is limited.” Id. (quoting Ortiz v. Barrett, 278 

S.E.2d 833 (Va. 1981)). As the court explained: 

Were the law otherwise, the costs involved in retaining 

local counsel would increase substantially. 

Confronted with a duty to monitor lead counsel’s 

handling of the litigation, local counsel would be 

bound to review all manner of litigation documents 

and ensure compliance with all deadlines. Out-ofstate 

litigants would be forced to pay a local attorney 

to review lead counsel’s work. Given the skyrocketing 

costs of litigation, the duplication of effort and 

increased fees that would result from such a rule foster 

problematic public policy. Though some litigants 

may choose to enter a representation agreement 

which includes extensive duties for local counsel, 

Minnesota law does not (and should not) require 

them to do so. 

Id. at 257-58 (footnote omitted). 

The West Virginia Supreme Court of Appeals followed Macawber in Armor v. Lantz, 535 

S.E.2d 737 (W. Va. 2000). The court in Armor, however, tempered its adherence with an 

explanation of some professional responsibilities on the part of local counsel. While 

acknowledging that local counsel may contractually limit their duties, the court explained 

that local counsel may not contract away those responsibilities “expressly or impliedly 

imposed by the relevant rules of practice pertaining to the association of local counsel.” 

Id. at 749. Local counsel must, for example, ensure that out-of-state lawyers with whom 

they associate are qualified for pro hac vice admission. Under West Virginia rules they 

must attend all hearings, trials and depositions, sign all pleadings, and be a responsible 

lawyer in the matter for which they are engaged in all other respects. 

The courts in Macawber and Armor took decidedly limited views of the role and responsibilities 

of local counsel. On the other side of the coin is this view articulated several years 

earlier by an Ohio federal court: 

Although the term “local counsel” at one time may have meant less responsibility on the 

part of the attorneys so designated, it is clear to the court, and should be clear to every 

lawyer who litigates in this country, that . . . developments in the law have invalidated 

this prior meaning. The trend is, properly, away from the view that some counsel have 

only limited responsibility and represent a client in court in a limited capacity, or that 

the local counsel is somewhat less the attorney for the client than is lead counsel. 

In modern day practice, all counsel signing pleadings and appearing in a case are fully 

accountable to the court and their clients for the presentation of the case. The Federal 

Rules of Civil Procedure and Local Rules for the Northern District of Ohio do not recognize 

any lawyers as less than full advocates for their clients. The law makes no distinction, 

as to the liability of lawyers signing pleadings, between those who are designated 

“lead” or “local” counsel. Federal Rule of Civil Procedure 11 places stringent obligations 

on all counsel signing pleadings, however designated. 

Gould, Inc. v. Mitsui Mining & Smelting Co., 738 F. Supp. 1121, 1125 (N.D. Ohio 1990). 

Other courts hold similarly broad views of local counsel’s potential liability. See, e.g., Ingemi 

v. Pelino & Lentz, 866 F. Supp. 156, 161-63 (D.N.J. 1994). 

Which of these views is likely to prevail in a particular case? In the absence of controlling 

authority in the jurisdiction, the wise course is to presume that the views articulated by 

the courts in Gould and Ingemi will carry the day. To be sure, local counsel are not guarantors 

of the conduct of the out-of-state lawyers who engage them; local counsel typically 

must have some involvement in the alleged misconduct for responsibility to lie. See, 

e.g., Masone v. Levine, 887 A.2d 1191, 1197 (N.J. Super. Ct. App. Div. 2005) (declining 

to hold local counsel liable for misrepresentation by out-of-state counsel where local counsel 

did not know true facts). But even limited involvement—such as signing pleadings or 

discovery responses containing false statements of fact or law—potentially provides a sufficient 

basis for sanctions or professional discipline. 

If you agree to serve as local counsel, there are some fundamental steps you should take to 

reduce your professional liability and responsibility risks. First, conduct your 

standard conflicts of interest check. The fact that you are going to be local counsel rather 

than lead counsel does not alter any conflict analysis. See Gould, 738 F. Supp. at 1125 

(discussing client consent). Second, investigate the firm and prospective client for whom 



23

practice aid 

RISKS & RESPONSIBILITIES 

OF LOCAL 

COUNSEL 


you are being asked to serve as local counsel, and make sure 

you are comfortable with the nature of the matter in which 

you will be involved. There may be firms, lawyers or 

clients with which you simply do not wish to be affiliated, 

and the matter may be one that you do not have the expertise 

to handle, even as local counsel. Third, make sure you 

understand the obligations under local court rules that you 

will be assuming by appearing in the matter. Fourth, draft 

an appropriate engagement letter and be sure to send it to 

the client—not just to the out-of-state law firm that 

approached you. Define the scope of your representation, 

keeping in mind that you cannot disclaim obligations 

imposed by rules of procedure, local court rules, or ethics 

rules. See Armor, 535 S.E.2d at 749-50. If local rules 

impose responsibilities on you that out-of-state counsel or 

the client may not anticipate, such as your mandatory 

appearance at all court proceedings or depositions, make 

them aware of these obligations so that they do not balk at 

your involvement, or, perhaps more importantly, recoil in 

anger upon receiving your related bills. Fifth, do not agree 

to do things with which you are uncomfortable on the basis 

that you are merely local counsel. For example, if you are 

going to sign a pleading, read it first. If there are statements 

in the pleading that concern you (we are not talking grammar 

here) insist that the document be suitably revised 

before signing. 

Certainly, lawyers cannot require clients to indemnify them 

for malpractice liability. A question that sometimes comes 

up in connection with local counsel representations, however, 

is whether local counsel can require either the client or 

out-of-state law firm to indemnify them against sanctions. 

With respect to clients the answer clearly is no. See Curtis 

v. Meijer, Inc., CIV. A. No. 86-40361, at *2 (E.D. Mich. 

Apr. 28, 1987) (refusing to allow indemnification by client 

for sanctions); Ass’n of the Bar of the City of N.Y., Comm. 

on Prof’l & Judicial Ethics, Formal Op. 1989-3 (1989) 

(same). We think many courts would take the same 

approach to indemnification agreements between law 

firms, though law on this point is admittedly scarce. 

Three final thoughts on engaging local counsel, all from 

the perspective of the firm looking for local counsel. First, 

do not wait until the last minute to file pleadings or 

respond to discovery if those pleadings or discovery 

responses require local counsel’s signature. There is always 

a risk that your local counsels’ other commitments may 

limit their availability on short notice. Second, if you practice 

in a big city in your state and are asked, for example, 

to defend a large financial services company or manufacturer 

in a rural venue in the state, consider whether you 

should engage local counsel even though, as a member of 

your state’s bar, local counsel is not required. There are 

some venues where local counsel can be exceedingly important, 

whether it involves relations with the court, relations 

with opposing counsel, knowing local witnesses or jurors, 

etc. If you are unreasonably “home-towned” in pre-trial 

rulings or at trial, your client may wonder what you did to 

guard against such unfairness. Third, take advantage of your 

local counsels’ knowledge of local practice and procedure. 

Consult with them in addition to reading local rules yourself. 

The failure to comply with local rules is occasionally disastrous. 

See, e.g., Seyler v. Burlington N. Santa Fe Corp., 121 

F. Supp. 2d 1352, 1354 (D. Kan. 2000) (faulting plaintiffs’ 

counsel for not filing reply memorandum which, while not 

required by rule, was permitted); Black & Decker (U.S.) Inc. 

v. Home Prod. Mktg., Inc., 935 F. Supp. 1010 (N.D. Ill. 

1996) (failing to comply with local rule on summary judgment 

results in facts being deemed admitted). 


24 

Douglas R. Richmond is Senior Vice President in the Professional Services Group of Aon Risk Services. 

Aon’s Professional Services Group is the world’s largest broker of insurance for professional services firms. 

Doug consults with Aon’s many large law firm clients on professional responsibility and liability issues. Before 

joining Aon in Chicago, Doug was a partner with Armstrong Teasdale LLP in Kansas City, Missouri 

(1989-2004), where he had a national trial and appellate practice. In 1998, he was named the nation’s top 

defense lawyer in an insurance industry poll as reported in the publications Inside Litigation and Of Counsel. 

He is a member of the American Law Institute (ALI), the American Board of Trial Advocates (ABOTA), the 

International Association of Defense Counsel (IADC), and the Federation of Defense and Corporate Counsel 

(FDCC). Doug has also been selected to The Best Lawyers in America in the areas of legal malpractice, personal injury 

litigation, and railroad law. In 2003, the Euromoney Legal Media Group named him as one of the nation’s top insurance and 

reinsurance lawyers. He has published roughly 50 articles in university law reviews, and many more articles in other scholarly 

and professional journals. Doug teaches Legal Ethics at the Northwestern University School of Law and he is a regular National 

Institute of Trial Advocacy (NITA) faculty member. He previously taught Trial Advocacy and Insurance Law at the University of 

Kansas School of Law, and Insurance Law and a seminar on Damages at the University of Missouri School of Law. Doug earned 

his J.D. at the University of Kansas, an M. Ed. from the University of Nebraska, and his B.S. from Fort Hays State University.

Why should you sponsor the 

19th Annual CLLA Breakfast at the 

National Conference of Bankruptcy Judges? 

Sponsorship 

Opportunities 

COMMERCIAL LAW LEAGUE OF AMERICA 

19th ANNUAL BREAKFAST 

Thursday, October 11, 2007 

In conjunction with 

National Conference 

of Bankruptcy Judges 

Oct. 10-13, 2007 

Orlando Marriott World Center 

All sponsors will be listed in the CLLA Bankruptcy Section 

elecctronic newsletter, the CLLA publication Debt 3 and 

on the CLLA website. 

LEVEL 1 – $20,000 

• Lead placement on all signage/ 

promotions, including company logo 

• Banner on Dais 

• Website Banner Ad 

• Full Page Back Cover Ad 

of Educational Materials 

LEVEL 2 – $10,000 

• Prominent placement on all signage/ 



• Inside Back Cover of Educational 

Materials 1/2 page ad (full color/bleed) 

LEVEL 3 – $5,000 

• Promotion in all publications 

and handouts 

• Company Logo/ Banner 

prominently displayed 

• Black/White ads in inside cover 

of education book 

LEVEL 4 – $3,500 


and handouts 



• Black/White ads on sponsor 

pages of program materials 

1. Because Dave Barry, 

humour columnist 

is the speaker. 

2. Because the Lawrence P. King 

Award for Excellence in the Field of Bankruptcy 

will be presented. 

3. Because breakfast is the most important 

meal of the day. 

This year we bring you the profoundly funny humor columnist— 

Dave Barry—a syndicated columnist whose work appears in more 

than 500 newspapers worldwide. 

Who Will See Your Sponsorship? 

• The audience consists of a “Who’s Who” of insolvency professionals. 

• The CLLA Bankruptcy Section is the largest membership Section 

of the CLLA, with members in every state in the US and in more 

than 20 countries around the world. 

• The NCBJ brings in a record number of judges and insolvency 

professionals from across the US and the world. 

• NCBJ Annual Conference averages an attendance of more than 

2,000 professionals with the annual Hot & Emerging Education 

Program averaging between 700 and 800 attendees. 

Questions? Paula Lucas c/o CLLA 

70 E. Lake St. Suite 630, Chicago, IL 60601 

(p) 800.978.CLLA / (f) 312.781.2010 

plucas@clla.org / www.clla.org 




leadership 

MOTIVATION AT WORK 

Making an offer they can’t refuse! 

by Mike Davids, Newcomb Marketing Solutions 

miked@newcombsolutions.com 

One of the more interesting jobs I have held in my career as a marketing writer was 

on an educational research team at the University of Chicago Medical Center. Our 

goal was to create education programs for patients that motivated them to make 

changes to improve their health. 

Doctors often give patients very clear instructions with equally clear outcomes. For example, 

a doctor may say, “You need to lose 20 pounds in order to get your blood sugar under 

control or I will have to surgically remove your feet.” Or, “You need to quit smoking today, 

or you will die within two years.” 

You would think that instructions like these would be very hard to ignore and very motivational. 

It sounds almost as intimidating as the proverbial “offer you can’t refuse.” 

Unfortunately, medical studies show that 75 to 90 percent of patients with chronic problems 

ignore their physician’s advice. 

How many times have you given employees ultimatums, only to watch them continue to 

fail and eventually get fired? Why don’t people do what’s good for them? Why don’t they 

do what they’re told? How can they refuse an ultimatum that would seem too serious to 

ignore? Have you ever found an ultimatum that turned a bad employee into a good one? 


26 

Nationwide, hospitals spend billions of dollars a year on education programs. But insurers 

are not willing to cover health-education expenses because research teams have had little 

success proving these programs work.

leadership 

The research group I worked on at the University of 

Chicago included a heart surgeon, an endocrinologist, two 

Ph.D’s in educational research, a psychologist, a couple of 

nurse practitioners and me—a marketing writer. It was the 

idea of my boss, Dr. Wylie McNabb, to add a marketer to 

the group. He had heard the old adage that a good salesman 

could “sell ice cubes to Eskimos,” and wanted to see if 

it was true. My first assignment was to look at the educational 

materials and classes that had been developed from 

an advertiser’s perspective. He asked me to consider marketing 

techniques that would get patients to “buy” in. 

At first, I felt like I was in over my head. The information 

was clear and so were the consequences. But as I spoke 

with patients, I began to hear the same things again and 

again. “What’s the use?” “I have lived this way for so many 

years, I can’t change now.” “But I love cigarettes … or 

booze … or fried food … etc.” “I can’t change because my 

partner … family … friends … or co-workers, etc. live this 

way too.” 

Patients weren’t motivated to change because they believed 

that they couldn’t. And, I believed that there was another 

problem under the surface—they weren’t being given positive 

choices. They were given information, ultimatums, and 

substitutions. 

An advertiser would go out of business trying to sell this 

way! Just imagine the slogans—“Drink Diet Coke, it won’t 

make you as fat as regular Coke!” “Drive a Volvo, so that 

you won’t die in a crash!” “Come to Disney World. It’s not 

as boring as your normal life.” It occurred to me that people 

need a strong, positive offer and easy instructions on 

how to receive the offer. 

As we began to structure our educational programs as a 

positive marketing offer, the results began to change. For 

example, in a class for children under 12 years old with 

type-one diabetes, we taught them to give themselves an 

insulin shot twice a day by becoming “Sugar Busters.” Like 

the Ghost Busters (popular at the time) they were given a 

“weapon” to fight monsters—Hypo and Hyper 

(glycemia)—their syringe. We created a comic book for the 

program that showed heroic children their age using riflesized 

syringes to defend themselves against the bad guys. 

When a child gave him or herself their first shot without 

help from a nurse or parent, they received an official Sugar- 

Buster Badge and a wall plaque. The program transformed 

children who screamed and cried every time they saw the 

needle, into kids who couldn’t wait to give themselves the 

first shot. The positive choices empowered them and minimized 

the threat. 

In a program to help adult diabetics lower their fat and 

sugar intake, we created a lunchtime cooking club. The 

combination of free food and natural competition among 

cooks who brought dishes and shared recipes, made the 

lunchtime meetings very popular. Inexpensive free offers 

like food scales and measuring cups drew new members to 

the meetings. We moderated the fun, but didn’t have to do 

very much teaching because the attendees were learning to 

make positive choices from each other and meeting new 

friends, too. 

The early results measuring compliance and health outcomes 

were some of the best results ever found in medical 

education research. Unfortunately, that winter Congress 

passed an emergency tax reduction bill that cut all National 

Institutes of Health Research Grants by one third across the 

board. The research stalled, I was out of a job. 

While that was more than 15 years ago, I have never forgotten 

what we learned about human motivation in that study. 

And I believe it is applicable to many situations, especially 

the workplace. 

I still don’t know why people won’t do what they’re told. 

But I do know how to “make them an offer that they can’t 

refuse.” Information, ultimatums, and substitutions don’t 

work nearly as well as a strong positive offer that empowers 

people and minimizes the threat. 

Creating the Offer 

Employees who expect a clear reward, such as a promotion 

or monetary bonus, for the timely, successful completion of 

a goal will be inclined to work harder and give it their best, 

especially if the goal is clear and the expectation of attainment 

is high. While it may seem to a manager that an offer 

is hard to refuse, individuals will assess five factors before 

deciding on their course of action. These are: 

• If I attempt this behavior, am I likely to succeed? 

• How much do I value the offer? 

• Is the new behavior intrinsically valuable? 

(For example, will I be liked by my co-workers and 

respected by management.) 

• Does this value outweigh any negative consequences? 

(Will co-workers reject me for “sucking up to 

the boss?”) 

• Will my new behavior be acceptable to my family? 

(Or, will overtime cut into family time.) 

Managers who create motivational offers must therefore 

find desirable, valued outcomes that outweigh the natural 

desire to keep things the way they are. And, rather than 

simply assuming they know what their employees really 

want, they should interview them and candidly ask what 

kind of incentives would be most desirable. Surprisingly, it’s 

not always about money. Choices that take into account a 

variety of employee preferences will be more desirable than 

single options. 


“…make them 

an offer that they 

can’t refuse.” 

Information, 

ultimatums, 

and substitutions 

don’t work nearly 

as well as a 

strong positive 

offer that 

empowers people 

and minimizes 

the threat. 


27

leadership 

MOTIVATION AT WORK 

Making an offer they can’t refuse! 


Avoiding Reward Burnout by 

Building the “Brand” Value 

Offers that worked wonderfully in the beginning will gradually 

stop working as employees become accustomed to 

receiving them. Advertisers see similar behavior when they 

use coupons or run a sale in order to lure new customers to 

their store or product. A sale or coupon may get a consumer 

to switch brands, however, if the new brand does 

not deliver superior value to the old one, then the consumer 

will return to previous behavior. 

I suspect that people enrolled in our health programs at the 

hospital would have returned to their previous behavior 

too, if they didn’t begin to see the value of their new behaviors. 

If they didn’t look better, feel better, and get better 

health results, then the “offer” would have only had a temporary 

effect. 

If employees change behavior in order to receive a reward, 

the behavior will be only temporary unless their new routine 

creates value. High performance work should lead to 

praise, recognition, greater responsibility (if the employee 

desires this), better salary, better assignments, and 

improved working conditions. 

Creating an offer employees can’t refuse is much more difficult 

than giving them ultimatums, i.e. “Do it, or you’re 

fired!” It takes creativity and communication. It requires 

that management gets to know employees well enough to 

understand what it is they really want. 

Not all your offers will be effective. Billions are spent for 

creative ideas from advertising agencies each year, and a 

good percentage of these are ineffective too. However, try 

it and you’ll find that a positive offer will beat an ultimatum 

every time. 

Mike Davids, member of Newcomb Marketing 

Solutions’ Creative Team, has more than 20 years 

of experience in marketing and print communications. 

Mike has a graduate certificate in Direct 

Marketing from DePaul University, Chicago, an MA 

from Wesleyan University, Middletown, CT, and a BA from the 

University of Iowa. He can be reached at mike@mdavids.us or 

at 800-921-1221. 


28

When Selecting a Collection Agency be Sure to Ask… 

ARE YOU A CLLA CERTIFIED AGENCY? 

If the collection agency you are using does 

not display the above seal, they are not an 

agency certified by the Commercial Law 

League of America, the nation’s oldest 

creditors’ rights organization. Use of CLLA 

Certified Agencies ensures that you receive 

the following protections and advantages: 

■ Professional services to help 

attain maximum dollar recovery. 

■ Prompt remittance of collected funds. 

■ On-going oversight to ensure adherence 

to a rigorous Code of Ethics. 

■ Minimum $300,000 surety bond 

for your protection. 

■ Maintenance of separate Trust Accounts 

for collected funds. 

■ Reputable collection procedures that maintain 

your customers’ good will. 

■ An experienced agency that has been in business 

for a minimum of five years. 

■ Agency executives who are required to attend 

yearly seminars and educational meetings. 

■ Assistance choosing legal counsel when necessary. 

■ Creditors may call on the Agency Association’s 

Executive Director should a complaint arise 

regarding an agency certified by the CLLA. 

To find out if your collection agency is a CLLA 

Certified Agency and to download free, informative 

literature that will help improve your collections, 

visit our Website at www.ccaacollect.com, or contact 

Emil Hartleb, Executive Director, at (973) 239-0721. 

Visit us at www.ccaacollect.com 

for informative, free literature on collections.

league business 

CLLA 

EDYOUCATION! 

by: Christine Hayes Hickey, CLLA National Education Chair 

We asked; you answered. The members of the League know what 

they want in education, and we conducted a survey to determine 

exactly what that is. Of those polled, 243 members responded, 

and here is what you told us: 

Web-based programming and electronic materials. 

Over two-thirds of those responding are interested in taking education into the electronic age. 

Reams of paper and face-to-face lectures are quickly becoming a thing of the past for many 

organizations.The ease with which materials can be downloaded and participants can learn from 

in the convenience of their offices is becoming more appealing as we grow more accustomed to 

e-life.The League is ready to answer this call. Live programs at League conventions will be supplemented 

with web-based offerings, and educational materials will no longer be handed to you 

in binders to lug home. Instead, condensed materials will be available for use during the programs 

and Chicago will introduce the first-ever electronic materials for attendees. 

Non-traditional educational programs. 

Over half of you would attend one day educational programming and there is a strong interest in 

teleseminars.The League has brought you teleseminars in the past and will continue to do so in 

the future.With busy schedules and local practices, one-day programs allow for face-to-face interaction 

without several days out of the office.The one-day educational meeting sponsored by the 

Western Region and the California Commercial Collectors’ Association scheduled for Friday, 

October 12, 2007 in Universal City, California fits this bill. The League is encouraging other, 

similar programs and our goal is to provide more of these opportunities in the near future. 

What is it that you want to hear about? 

We polled members on topics of interest for future programming, and asked them to identify 

issues that would lend themselves to an educational offering.The survey confirmed that 57% of 

those responding are interested in attending a seminar on office management and human 

resource issues. Individual responses supported this as many of the top-rated seminar suggestions 

fell within this category.The most desired programs ranked in order of priority include 

generally: the Fair Debt Collection Practices Act; collection and trial tactics; bankruptcy; office 

management/business development and marketing; and Uniform Commercial Code issues.We 

also requested topics involving ethical considerations and local concerns, and the feedback was 

impressive. Individual responses and specific program suggestions will be used to guide future 

educational planning for the League. 


30 

As a member of the CLLA, what interests you interests us. Education is a key benefit of membership 

and we invite you to participate in helping to shape our programs. From format to 

content, we strive to provide nothing short of excellence in education. We encourage your 

feedback and welcome your suggestions at plucas@clla.org and ch@rubin-levin.net.

A The Notte gency Inc. 

Professionals Assisting Professionals 

Sandra R. Kuzma, President 

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125(&29(5

In This Industry, Knowledge is Key— 

Let Them Know You Are 

Serious About Education 

Sponsorship 

Opportunities 

COMMERCIAL LAW LEAGUE OF AMERICA 

22nd Annual Education Program 

“The Honorable Frank W. Koger Memorial 

Current Developments in 

Hot & Emerging Areas of Bankruptcy 

In conjunction with 

National Conference 

of Bankruptcy Judges 

Oct. 10-13, 2007 

Orlando Marriott World Center 

All sponsors will be listed in the CLLA Bankruptcy Section 

elecctronic newsletter, the CLLA publication Debt 3 and 

on the CLLA website. 

LEVEL 1 – $20,000 

• Lead placement on all signage/ 


• Banner on Dais 


• Full Page Back Cover Ad 

of Educational Materials 

LEVEL 2 – $10,000 

• Prominent placement on all signage/ 



• Inside Back Cover of Educational 

Materials 1/2 page ad (full color/bleed) 

LEVEL 3 – $5,000 


and handouts 



• Black/White ads in inside cover 

of education book 

LEVEL 4 – $3,500 

• Promotion in all publications and handouts 



• Black/White ads on sponsor 

pages of program materials 

Reserve Your Sponsorship 

Opportunity Today, Call: 

Paula Lucas c/o CLLA 

70 E. Lake St. Suite 630, Chicago, IL 60601 

(p) 800.978.CLLA / (f) 312.781.2010 

plucas@clla.org / www.clla.org 

Hurry, these opportunities won’t last. 

Reach up to 900 of the most influential bankruptcy 

professionals in our industry by sponsoring the 

CLLA’s premiere educational programs at the annual 

National Conference of Bankruptcy Judges— 

Thursday, October 11, 2007 

This year’s afternoon education program is specifically geared towards the 

many questions arising out of the 2005 Bankruptcy Abuse Prevention and 

Consumer Protection Act (“BAPCPA”). Our experts will be serving up a main 

course of Preemption, a side of Statutory Construction and Constitutional issues 

for dessert. 

The CLLA programming at NCBJ promises to satisfy the hunger of any 

insolvency professional. Your sponsorship dollar will go a long way to 

getting your name in front of this group. 

Moderators for each session are: Professor Nancy B. Rapoport, Honorable 

John K. Olsen (Bankr. S.D. Fl.) and Honorable Elizabeth Stong (Bankr. E.D.N.Y.) 

Who Will See Your Sponsorship? 

For 22 years, the CLLA has 

produced, “The Honorable 

Frank W. Koger Memorial 

Current Developments 

in Hot & Emerging Areas 

of Bankruptcy” which 

routinely draws 700 to 900 

bankruptcy professionals. 

• The audience consists of a “Who’s Who” of insolvency professionals. 

• The CLLA Bankruptcy Section is the largest membership Section 

of the CLLA, with members in every state in the US and in more 

than 20 countries around the world. 

• The NCBJ brings in a record number of judges and insolvency 

professionals from across the US and the world. 

• NCBJ Annual Conference averages an attendance of more than 2,000 professionals 

with the annual Hot & Emerging Education Program averaging 

between 700 and 800 attendees. 




CLLA Future Planning and Leadership Conference 

Royal Pacific Resort at Universal Orlando • Orlando, FL • July 19–22, 2007 

Who: CLLA members interested in the future growth and 

development of the League; Members of the CLLA Strategic Planning 

Committee; CLLA Officers and members of the Board of Governors; 

CLLA Section and Region Officers and Executive Council Members; 

Association of Law List Publishers' Officers and Board Members; 

CCAA Officers and Board Members. 

What: The Southern Region of the CLLA will host the CLLA's First 

Future Planning and Leadership Conference. 

Where: Royal Pacific Resort at Universal Orlando, A Loews Hotel 

6300 Hollywood Way, Orlando, Florida 32819 • Phone: (407) 503-3000 

Fax: (407) 503-3010 • Reservations: (888) 273-1311 

When: July 19-22, 2007 

Why: The CLLA is in the process of developing and implementing a 

strategic plan for the future of the League and each of its constituent 

Sections and Regions. It is incumbent upon each League member who is 

currently among the leadership of the League or hopes to be among the 

future leadership of the League to provide us with your ideas and input into 

developing our strategic plan that will set the future course of the League. 

How: Room cost is $169 per night. Please call the Royal Pacific Resort 

at (888) 273-1311 and mention the CLLA conference to book your 

rooms now. Further details 

regarding registration, hotel 

arrangements, and conference 

schedule and events will be 

forthcoming. 



70 E. Lake Street, Suite 630 • Chicago, IL 60601 • 312.781.2000 • www.clla.org 

Western Region 

Meeting 

Western Region’s next meeting will take place in Los Angeles with the 

Commercial Collection Agency Association 

and California Collection Agency Association. Please join the 

Western Region at the Universal City Hilton Hotel, in Universal City, 

California (Los Angeles area) on Friday, October 12, 2007. It is an 

agency-qualified meeting and promises to be a well-attended event as usual. 

There will be great opportunities to network and receive education. 

We had a great attendance in prior years and hope to continue to make 

this meeting meaningful to both agencies and attorneys. For further information 

contact Arlene Cohen Miller, Western Region Arrangements Chair at 

amiller@creditorsrights.com. You may also visit the CLLA website 

at www.clla.org for additional details about educational programs 

and speakers closer to the date of the event.


ABC Report 

NEW MEMBERS AND CHANGES 

AT THE AMERICAN BOARD OF CERTIFICATION 

By: John F. Young, Chairman Of The ABC Marketing Committee 

Block Markus & Williams, LLC ~ Denver, Colorado 


34 

Congratulations to 

Our New Members. 

The American Board 

of Certification 

wishes to 

congratulate the 

following attorneys 

who have recently 

been certified: 

New ABC Members 

Certified in 

November 2006: 

Johnathan Christiaan Bolton 

Houston,TX 

Business Bankruptcy 

Roy Jackson Dent 

Charleston, IL 

Business Bankruptcy and 

Consumer Bankruptcy 

Benjamin Kahn 

Greensboro, NC 



Lawrence Kotler 

Philadelphia, PA 



Martha Lehman 

Indianapolis, IN 


James David Nave 

Nashville,TN 


David Nunn 

Edmond, OK 

Creditors’ Rights 

Mitchell Ayer 

Houston,TX 


William T. Bodoh 

Columbus, OH 


Chad Bowen 

Tampa, FL 


Robert Drummond 

Great Falls, MT 


Elizabeth Freeman 

Houston,TX 


Jeffrey Hester 



John J. Lamoureux 

Tampa, FL 


James N. Stanley, Jr. 

Griffin, GA 


Gene B.Tarr 

Winston Salem, NC 


Hilary B. Bonial 

Dallas,TX 


Christopher Celentino 

San Diego, CA 


Thomas C. Dame 

Baltimore, MD 


Elizabeth Flaagan 

Denver, CO 


Edward M. King 

Louisville, KY 


Joseph R. Lawrence 

Pittsburgh, PA 


I. Richard Levy 

Dallas,TX 

BBusiness Bankruptcy 

Teresa H. Pearson 

Portland, OR 


Joseph R. Prochaska 

Nashville,TN 


Matthew J. Richburg 

Milwaukee,WI 


Ronald B. Roteman 

Pittsburgh, PA 


Martin L. Rogalski 

Jenison, MI 


Gene Tarr 

Winston Salem, NC 


Kristina Johnson 

Jackson, MS 


William E. Maddox 

Knoxville,TN 


Peter B. McGlynn 

Boston, MA 


Kara K. Messner 

Harrisburg, PA 


E. Lee Morris 

Dallas,TX 


James M. Setters 

Chattanooga,TN 


James N. Stanley 

Griffin, GA 


Ward Stone, Jr. 

Macon, GA 


Mark R.Wenzel 



Scott D.Wilson 

Nashville,TN 


■

ABC Report 


NEW ABC MEMBERS 

CERTIFIED IN 2007 

Algernon Butler, III 

Wilmington, NC 



James B.Angell 

Raleigh, NC 


Jeffrey K.Tyree 

Ridgeland, MS 


Joseph N. Callaway 

Rocky Mount, NC 



Jeffrey P. Norman 

Houston,TX 


David I. Cisar 

Milwaukee,WI 


Wendy Diane Brewer 



Julia P. Gibbs 

Sacramento, CA 


Bruce F. Jobe 

Lumberton, NC 


Gary M. Kaplan 

San Francisco, CA 


W.Timothy Miller 

Cincinnati, OH 


Roger Moore 

Jacksonville, NC 


Michael D. O’Brien 

Clackamas, OR 97015 


Thomas E. Panowicz 

South Bend, IN 


Donna T. Parkinson 

Sacramento, CA 


Michael P. Peavey 

Wilson, NC 


Monte J.White 

Wichita Falls,TX 


Neil E. Colmenares 

Flushing, NY 


Samuel Davide Hodson 



John Steinberger 

Southfield, MI 


Jon C.Thornburg 

Biloxi, MS 


■ 

CHANGES AT ABC 

ABC started off the new year at its new headquarters located at 101 Second Street S.E., Suite 904, 

Cedar Rapids, Iowa 52401; telephone number 319-365-2222. 

In addition to our new central location, the ABC and its members will also enjoy the services of both a new 

full time director and a full time assistant in Cedar Rapids. Dian Gilmore is the ABC’s new director and Pamela 

Farmer is our new full time Assistant Director. The ABC Board of Directors looks forward to working with 

Dian and Pamela and believes these new changes at ABC will greatly enhance the benefits being provided to 

our certified attorneys and applicants for certification. 

■ 


35

member news 

MEMBER BENEFITS 

Tell Us What You Want… Let Us Deliver What You Need! 

By Mark V. Matz, Chair CLLA Member Benefits Committee 

The CLLA’s Membership Benefits Committee has diligently worked at finding, reviewing and instituting new programs 

to provide an added value to current members and incentives to those considering joining our respected organization. 

We hope you have taken a look at our affinity partners and contacted them to see how they can fulfill your needs. To 

see all the programs currently available, simply visit www.clla.org and sign into the Members Section of the site where you will 

find links to all our benefit and affinity programs. 

But, what does the CLLA look for when seeking new programs? There is a set of criteria used by the committee to evaluate the 

options presented for review. First, is it truly a product or service that will benefit members of the CLLA? Secondly, can our 

members obtain this new benefit at a price less than if they contacted the vendor outside of the program offered by the League? 

Another consideration is the uniqueness of the offering compared to other possible sources (i.e. insurances offered by state bar 

associations, etc.). Using these guidelines, we are always looking at what we think everyone would want. As a committee with 

representatives from all constituencies of the League, we have provided input based on our experiences. But now, you will have 

the direct opportunity to help us determine just exactly what you want in a benefit program and what may be of interest to your 

fellow members. 

A new tool at the CLLA is the online survey through a service called Survey Monkey. Recently, the CLLA National Education 

Committee used this with great success for their goals and we would like to do the same. You may have participated in the education 

survey and know how easy and quick it was to complete, not to mention the value of the information obtained by those 

willing to share a few moments of their time. 

The CLLA Membership Benefits Committee will be taking advantage of this tool to survey the entire association to obtain an 

idea of what they feel are programs that the committee should investigate on behalf of the CLLA. When you receive the email 

(if you have not already done so) we strongly encourage you to take the brief time to complete the questions. Just a moment 

from everyone may yield us a tremendous amount of information that will benefit the association at large. 

Finally, as we approach the beginning of a new administration at CLLA under our new President, Wanda Borges, I must thank 

Sid Friedman and the Board of Governors for their support along with all the current and past members of the committee for 

their time and input in working to find and approve the programs that will provide added value to CLLA Membership. Our 

current committee consists of Lee Baldieri, Brenda Majewski, and myself who all serve as a sub-committee of the CLLA 

National Membership Committee (which is chaired by Bob Bernstein of Charleston, SC). I would also like to thank Bob and 

that committee for their support of our efforts. 

On another note, we are pleased to announce two new benefit programs for members of the CLLA. We now have discount 

arrangements with two major rental car companies, Avis and Enterprise. Look for the link to each of these companies and the 

special rates for our membership in the Members Section of the CLLA Web site (www.clla.org). You may also contact them at 

their toll free numbers as follows: Avis (800.331.1212; code: B193100) and Enterprise (800.261.7331; code: 62C0545). We 

hope you take advantage of these new benefits and assist us by contributing your thoughts on the CLLA survey of membership 

benefit and affinity programs. 


36 

As always, we look forward to hearing from you if you have an idea about a program, product or service that could benefit the 

members of the League. ■

CLLA members 

encouraged to submit articles for DEBT 3 

Have an idea for an article? Why not write for Debt 3 ? 

Debt 3 wants to increase the number of articles it publishes written by members of the CLLA. 

There is a tremendous wealth of knowledge among CLLA members that would be beneficial 

to all if shared. Debt 3 regularly runs articles on law office or collection agency management, 

technology and marketing. Articles on practical tips in practicing law are welcome as well. 

Feature articles and analysis of new and significant cases are encouraged. If you have an article idea 

or would like to submit an article, simply e-mail it to: 

clla@clla.org, fax it to 312-781-2010 

or call the CLLA headquarters at 312-781-2000. 



Have an ethics question? 

We’re here. 

Concerned about a potential 

conflict of interest? 

We can help. 

Want to know more about 

the CLLA’s Code of 

Professional Conduct? 

Let us assist you. 

Want to discuss any of the above 

in a completely 

confidential manner? 

We have 

the answer. 

The CLLA is pleased to announce a unique and worthwhile member benefit. 

Available exclusively to CLLA members, the CLLA Ethics Panel is here to assist 

in answering your ethics questions. The Ethics Panel will have trained duty 

officers available to provide prompt, professional and confidential advice. 

CLLA members may contact the Ethics Panel to discuss ethical questions 

or issues related to their practice or business, including state ethics rules 

and League rules. 

In our effort to continue to provide unparalleled value for your membership 

dollar, this outstanding service is provided at no cost to CLLA members. 

To learn more and access the current list of duty officers, 

log on to members section at www.clla.org. 

Not a member of the CLLA yet? 

Become a member at www.clla.org. 




37

member news 

Newly Admitted Members 

The following individuals appeared as applicants in the League’s electronic publication in January and February, 2007. They became members on 

March and April 1, 2007 respectively. 

Members before whose names an asterisk (*) appears are lay members under Article 2; Section 1, of the League’s Constitution. Individuals before whose 

names a bullet (•) appears are lawyers devoting the major portion of their time to lay business organizations listed after the new member’s name. 

The name of the League member, if any, referring the new member to membership is listed after the new member’s contact information. 


38 

UNITED STATES 

ALABAMA 

Birmingham 

Steven D. Altmann 

Najjar Denaburg, P.C. 

2125 Morris Avenue 

Birmingham,Alabama 35203 

Willard L. Dean 

Specialized Recovery 

Services, LLC 

5266 Grantswood Road 

Birmingham,Alabama 35213 

ARIZONA 

Phoenix 

Barbara B. Maroney 

Law Office of 

Barbara Maroney, P.C. 

15433 N.Tatum Blvd. 

Suite 106 

Phoenix,Arizona 85032 

Joseph J. Pezzuto 

Law Office of Joe Pezzuto, LLC 

4013 East Broadway Road 

Suite A-2 

Phoenix,Arizona 85040 

Scottsdale 

Todd Haley 

Corporate Collections 

International 

6908 E.Thomas 

Suite 200 

Scottsdale,Arizona 85251 

Tucson 

Tristan J. Burgess 

I. C. System, Inc. 

5501 N Swan Rd, Suite 231 

Tucson,Arizona 85718 

CALIFORNIA 

Encino 

Gregory S. Abrams 

ASK Financial 

17401 Ventura Blvd., Suite B21 

Encino, California 91316 

Los Angeles 

Arash A. Khakshooy 

Law Offices of 

Arash A. Khakshooy 

8581 Santa Monica Blvd. 

Suite 552 

Los Angeles, California 90069 

Orange 

James Baumgartner 

Sakamaki & Baumgartner 

500 N State College Blvd. 

Suite 1100 

Orange, California 92868 

Francis T. Sakamaki 

Sakamaki & Baumgartner 

500 N State College Blvd. 

Suite 1100 

Orange, California 92868 

San Francisco 

Ross A. Spector 

Spector & Bennett,APC 

50 California Street, 15th Floor 

San Francisco, California 94111 

San Luis Obispo 

*Dean Kaplan 

The Kaplan Group 

2250 King Court, Suite 50 

San Luis Obispo, California 93401 

DELAWARE 

Dover 

Kevin J. Doyle 

Matthews, Pierce & Lloyd, Inc 

830 Walker Rd 

Dover, Delaware 19904 

GEORGIA 

Alpharetta 

*Keith C. Simington 

Capital Recovery Corporation 

312 Maxwell Road, Suite 100 

Alpharetta, Georgia 30004 

Atlanta 

James W. Martin 

Simpson Law Offices, L.L.P. 

One Securities Centre, Suite 300 

3490 Piedmont Road, NE 

Atlanta, Georgia 30305 

ILLINOIS 

Chicago 

*Melissa Stieglitz 

Neal & Leroy 

203 N. Lasalle, Suite 2300 

Chicago, Illinois 60601 

Glendale Heights 

Michael T. Nigro 

Nigro & Westfall, P.C. 

1793 Bloomingdale Road 

Glendale Heights, Illinois 60139 

Morton Grove 

Cameron H. Goodman 

Goodman Law Group LLC 

6210 Lincoln Ave 

Morton Grove, Illinois 60053 

INDIANA 

Terre Haute 

Michael J. Sacopulos 

Sacopulos Johnson & Sacopulus 

676 Ohio Street 

Terre Haute, Indiana 47807 

NEVADA 

Las Vegas 

Brian J. Pezzillo 

Pezzillo Robinson 

150 N. Durango Dr., #200 

Las Vegas, Nevada 89145 

NEW JERSEY 

Roseland 

Sharon L. Levine 

Lowenstein Sandler 

65 Livingston Avenue 

Roseland, New Jersey 7068 

NEW YORK 

Hauppauge 

Daria M. Campisi 

Glacial Star Group 

150 Motor Parkway, Suite 103 

Hauppauge, New York 11788 

Hawthorne 

Joseph L. Genzano 

Elhilow & Maiocchi, LLP 

22 Saw Mill River Road 

Hawthorne, New York 10532 

New York 

Jeffrey Lowitt 

Jaffe & Asher LLP 

600 Third Avenue 

New York, New York 10016 

Andrea B. Schwartz 

Golenbock Eiseman Assor 

Bell & Peskoe LLP 

437 Madison Ave 

New York, New York 10022 

NORTH 

CAROLINA 

Cary 

John W. Akins 

Akins & Rassette, PLLC 

103-A Kilmayne Drive 

Cary, North Carolina 27511 

OHIO 

Cleveland 

Antonio J. Scarlato 

Shapiro & Felty, LLP 

1500 W.Third Street 

Cleveland, Ohio 44113 

Timothy M. Sullivan 

Law Offices 

of Timothy M. Sullivan 

25651 Detroit Road, Suite 203 


*Jordan D. Warfield 

American Lawyers Quarterly 

853 Westpoint Parkway 

Suite 710 


Shaker Heights 

Bill Mann 

Joseph, Mann & Creed 

20600 Chagrin Blvd., Suite 550 

Shaker Heights, Ohio 44122

PENNSYLVANIA 

Philadelphia 

*Michael DuFrayne 

Executive Sounding Board 

Associates, Inc. 

2 Penn Center Plaza 

1500 John F. Kennedy Blvd. 

Suite 1730 

Philadelphia, Pennsylvania 19102 

Pittsburgh 

Timothy A. Krieger 

Tucker Arensberg, P.C. 

1500 One PPG Place 

Pittsburgh, Pennsylvania 15222 

West Chester 

Derek Blasker 

Burton Neil and Associates, P.C. 

1060 Andrew Drive, Suite 170 

West Chester, Pennsylvania 19380 

Neil Sarker 

Butron Neil & Associates 

1060 Andrew Drive 


Brit J. Suttell 

Burton Neil & Associates, P.C. 

1060 Andrew Drive, Suite 170 


TENNESSEE 

Knoxville 

Stephen W. Gibson 

Ambrose,Wilson, Grimm 

& Durand, LLP 

P.O. Box 2466 

Knoxville,Tennessee 37901 

TEXAS 

Dallas 

*Thomas P. Backal 

The Dunn Law Firm 

12801 N. Central Expressway 

Suite 250 

Dallas,Texas 

Steven R. Dunn 

The Dunn Law Firm 

12801 N Central Expressway 

Suite 250 

Dallas,Texas 

member news 

Christopher J. Jameson 

Jameson and Dunagan, P.C. 

3890 West Northwest Highway 

Suite 550 

Dallas,Texas 75220 

Houston 

Benjamin K. Sanchez 

Sanchez Law Firm 

806 Main Street, Suite 920 

Houston,Texas 77002 

WISCONSIN 

Milwaukee 

AnneMarie D. Case 

Case Law Firm, S.C. 

400 N Broadway 

Suite 402 

Milwaukee,Wisconsin 

Daryl Diesing 

Whyte Hirschboeck Dudek S.C. 

555 E.Wells Street 

Ste. 1900 

Milwaukee,Wisconsin 53202 

INTERNATIONAL 

MEMBERS 

BELGIUM 

Antwerp 

Gary Liesmons 

Liesmons Judicial Officer 

Britselei 94 

2000 

CANADA 

Montreal, Quebec 

Sion Amar 

Creditfax 

555 Chabanel #1009 

NETHERLANDS 

Maastricht-Meerssen 

Leo Stikkelbroeck 

Stikkelbroeck Van Uden 

Cratsborn Lawyers 

Hoogveldweg 2 


39

member news 

Among Our Members… 


40 

Submissions for Member News 

may be sent to the Commercial 

Law League of America by mail, 

fax or e-mail to: 

Member News, 

Commercial Law League 

of America ® 

70 E. Lake Street 

Suite 630, Chicago, IL 60601 

312-781-2000 

fax: 312-781-2010 

e-mail: clla@clla.org 

The Commercial Law League ® 

reserves the right to determine 

whether to publish submissions 

or photos and to edit 

submissions without prior 

notice to those submitting the 

announcement. 

▲ F. THOMAS RAFFERTY NAMED MARYLAND 

“SUPER LAWYER” 

CLLA Member F. Thomas Rafferty of Ober, Kahn, 

Grimes and Shriver was named a Maryland “Super 

Lawyer” in January 2007. Twenty-two attorneys from the 

Baltimore, MD firm received the award which recognizes 

the top five percent of all practicing attorneys in Maryland. 

▲ RICHARD G. BAUMANN NAMED SOUTHERN 

CALIFORNIA “SUPER LAWYER” 

CLLA member Richard G. Baumann of the Los Angeles, 

CA law firm Sulmeyer Kupetz has again been chosen as 

one of the Southern California “Super Lawyers” in 2007. 

Considered among the best in their professions, “Super 

Lawyers” represent the top five percent of all practicing 

attorneys in Southern California. 

▲ CHAD PEDERSON, 

DIRECTOR OF MARKETING 

Fein, Such, Kahn & Shepard, P.C., a Collections and 

Creditor’s Rights law firm in Parsippany, NJ is pleased to 

announce that CLLA Member Chad Pedersen has come on 

board as Director of Marketing. Chad has been in the collections 

industry since 2001 and a CLLA member since 2002. 

He was previously with The Columbia Law List and The 

Forwarders List of Attorneys marketing the law lists to forwarders 

and attorneys alike. He will be marketing the firm in 

all collection fields. Fein, Such, Kahn & Shepard, P.C. is one 

of the largest creditor's rights firms in New Jersey. 

Chad Pedersen 

Fein, Such, Kahn & Shepard, P.C. 

7 Century Dr. Suite 201, Parsippany, NJ 07054 

Phone: 973-538-4700 x131 

Fax: 973-644-3287 

Email: cpedersen@feinsuch.com 

▲ BANKRUPTCY TRUSTEE 

SETTLEMENT GROWS 

In December 2006, Bankruptcy Trustee Marc P. Gertz 

announced a settlement with more than 70 former partners, 

law firms and insurers of the former Cleveland-based law 

firm of Arter & Hadden. This settlement was reached over 

claims made in a 16-count complaint, which was filed against 

the partners and their new law firms by the Trustee in the 

U.S. Bankruptcy Court for the Northern District of Ohio. 

The Trustee recently filed documents seeking approval of 

another round of settlements involving three banks that 

loaned money to Arter & Hadden. Gertz and other parties 

to the case reached an agreement with J.P. Morgan Chase, 

Huntington Bank and Compass Bank thereby ending 

claims made by and against those banks since the demise of 

the law firm in 2003. 

In addition, the Trustee is asking the Cleveland Bankruptcy 

Court to approve settlements with more than 80 other partners 

(bringing the total to more than 150 defendants). 

Combined, the settlements call for the defendants and their 

insurers to pay approximately $10.5 million to the Trustee. 

This amount does not resolve claims against 35 additional 

partners who remain targets of the Trustee's lawsuit 

Arter & Hadden closed its doors on July 15, 2003, owing 

millions of dollars in pension obligations and other debts to 

creditors. The law firm was one of the nation's oldest. It 

began an aggressive expansion through an acquisition program 

in the 1990’s. Once a regional firm of 70 lawyers, 

Arter grew to 12 offices, 465 lawyers and 178 partners in 

Ohio, Texas, California and Washington, D.C. 

Gertz was appointed as Chapter 7 Trustee in January of 

2004, and conducted an 18-month investigation into the 

cause of the firm's demise. The investigation by Gertz, his 

attorneys and forensic and information technology experts 

led to the filing of the complaint, which alleged improper 

year-end compensation distributions to the partners and 

other misconduct. 

According to Gertz, the settlement reached with the banks 

and the additional partners will narrow the scope of the 

remaining litigation and will move the case closer to a conclusions 

and a significant distribution to creditors. The settlements 

were reached after many months of negotiations 

with representatives of the defendants and the banks. "With 

so many defendants (almost all of whom are lawyers), the 

negotiations were complex and challenging," said Gertz, 

who expressed appreciation of the efforts made by his counsel 

and that of the other settling parties. 

Gertz is being represented in the action by Bernstein Law 

Firm, P.C. of Pittsburgh, PA (Robert S. Bernstein, CLLA 

Member, and Charles E. Bobinis) and Goldman & Rosen, 

Ltd. of Akron, Ohio (Robert M. Gippin, Irving B. 

Sugerman and Michael A. Steel). 

For more information, 

please contact Bob Bernstein, 

Bernstein Law Firm, at 412.456.8101 

or rbernstein@bernsteinlaw.com 

or Irving B. Sugerman at 330.255.0714 

or ibsugerman@goldman-rosen.com 

▲ DAVID C. BERMAN - APPOINTED 

MORRISTOWN ADVISORY BOARD MEMBER 

Congratulations to CLLA Member David C. Berman. 

Lakeland Bank a NJ holding company has appointed him 

to their Morristown Advisory Board. As a member of the 

Board he will serve as a liaison between the bank and its 

community. The goal is the promotion of stronger partnerships 

between the bank and the communities that it serves. 

David C. Berman 

David C. Berman, PC 

71 Maple Ave., Morristown, NJ 07960 

Phone: 973-631-1000 

Fax: 973-631-1111

member news 

▲ CLLA MEMBER PANELISTS SPEAK 

On Monday March 26th the Commercial Law League and 

the following members spoke to the students at The John 

Marshall Law School (Chicago) on careers in the field of 

Commercial Law: 

Lauren Newman of Fagel, Haber, LLC 

Kevin Posen of Teller, Levit & Silvertrust ,PC 

Bryan V. Reed of Reed, Centracchio & Zac, LLC 

Walid Tamari of Tamari & Blumenthal, LLC 

▲ JOHN D. RUCK JOINS McCARTHY, 

BURGESS & WOLFF 

McCarthy, Burgess & Wolff, a Certified Commercial Law 

League Collection Agency headquartered in Cleveland 

Ohio is pleased to announce that John D. Ruck has joined 

the organization. John has managed commercial forwarding 

for over twenty years with Grable, Greiner & Wolff as 

well as OSI. He’s been a Commercial Law League member 

since 1987 having served on a number of committees. He 

will be managing the Legal Forwarding Department. 

McCarthy, Burgess & Wolff, a commercial only Agency, is 

recognized as one of the 10 largest Commercial Agencies (as 

defined by revenues) in the country. 

▲ GAMACHE & MYERS, P.C. EXPANDS OFFICE 

Gamache & Myers, P.C., with offices in Missouri and 

Arkansas announces that it has moved to a new expanded 

headquarters also located in the St. Louis area. The firm’s 

new contact information is as follows: 

1000 Camera Ave, Suite A 

St. Louis (Crestwood) MO 63126 

(314)835-6600 (ph) 

(314)835-6604 (fax) 

The firm also is pleased to announce that CLLA member 

Donald A. Horowitz, Sara A. Monks, and Raymond P. 

Bozarth have joined the firm as associate attorneys in the 

St. Louis office. 

▲ BARRY P. CAPLAN NAMED AS ONE 

OF THE OREGON SUPER LAWYERS FOR 2006 

CLLA Member Barry P. Caplan of the Portland, Oregon 

law firm of Sussman Shank has been named as one of the 

Oregon Super Lawyers for 2006. Four other members of 

the thirty lawyer firm were also named. The award recognizes 

the top 5% of all practicing lawyers in Oregon. 

▲ CAINE & WEINER RELOCATES 

TO LARGER SITE 

Caine & Weiner, a leading global accounts receivable 

management company, relocated their corporate headquarters 

on January 22nd from Van Nuys, California to Warner 

Center, an upscale business center located in Woodland 

Hills, 14 miles northwest of downtown Los Angeles. 

Founded in 1930, Caine & Weiner has full-service collection 

centers located in Chicago, Louisville, Buffalo and 

Tampa to serve their 2000 domestic and international 

clients. The company employs 150 team members of 

which 100 work at the Warner Center location. 

Contact: 

Frank Draper Vice President-Marketing 

21210 Erwin St., Woodland Hills, Ca 91367 

818-251-1725 

frank.draper@caine-weiner.com 

▲ ROBERT E. POTRZEBOWSKI, JR. BECOMES 

THE SOLE SHARE HOLDER OF KOHN LAW FIRM 

Attorney Robert E. Potrzebowski, Jr., has become the sole 

share holder of Kohn Law Firm S.C. in Milwaukee, 

Wisconsin, as of January 1, 2007. Founding firm member, 

Attorney Robert W. Kohn, is remaining “of counsel” part 

time with the firm from his Santa Barbara, California 

office. Attorney Matthew J. Richburg has become the 

firm’s Litigation Manager. Attorney Paula Brunner has 

joined the firm as an associate attorney. Doug Smyth has 

joined the firm as Collection Manager. ■ 

▲ ALAN I. NAHMIAS NAMED 

ONE OF THE TOP 100 BANKRUPTCY 

ATTORNEYS IN SOUTHERN CALIFORNIA 

Alan I. Nahmias of Plotkin, Rapoport & Nahmias, in 

Encino, California was recently named by the Southern 

California Super Lawyers as one of the top 100 bankruptcy 

attorneys in Southern California. 




41

viewpoint 

A Salute to A President 

D av i d R . W a t s o n is the 

Executive Vice President 

of the Commercial Law 

League of America. 

He can be reached 

at 312-781-2000 and via e-mail 

at dwatson@clla.org. 

“Sid, you have been a great president, a great leader and have left a 

lasting legacy of which you can be proud. Those you have positively 

affected and encouraged along the way will forever be grateful.” 

Sidney Friedman will be ending his CLLA presidency in 

Chicago this Spring. I have had the pleasure of working 

with Sid as a member of the Board of Governors since my 

first day here as Executive Vice President. As I reflected 

upon Sid’s presidency, I wanted to highlight what will be 

just a portion of the legacy he leaves behind. 

his business partners and is dedicated to ensuring that he 

upholds his end of the partnership. He loves the CLLA as 

well, and would not take on the role of president were he 

not able to perform the required duties as president with 

the same level of skill and commitment that he shows daily 

towards his family, his partners and his businesses. 


42 

Sidney has incredibly sound business acumen. It is no accident 

that he has been a successful lawyer and businessman. 

He understands that you are only as good as your last bank 

deposit and strives to continue to improve his business and 

instill that same pursuit of excellence in all of his employees. 

I remember asking Sid several years ago whether, at the 

end of his three-year term as an attorney board member, 

he would be running for President of the League. His 

answer should have foreshadowed the type of leader he 

would be. Before he answered, he thought about the 

question carefully, and responded as follows. “I want to 

make sure I am ready to assume that responsibility before 

I choose to run for President of the League’, he said. 

“I also want to be sure my business partners and my 

family are both committed to my taking on this incredible 

responsibility.” 

That response truly represents Sid’s leadership style and 

personality. Sid is a steadfast family man. He loves his 

family and focuses first and foremost on providing for the 

needs of his wife, Fran, and their children. Sid also loves 

It has been said that great leaders make others great. Sid fits 

that description to a “T”. He encourages others to perform 

at their best and motivates them to push themselves beyond 

what may be comfortable. Yet, if they fail, he is there to 

again encourage that lessons be learned and that we must 

move onward. As president, he has encouraged his fellow 

board members to look at running the League more as a 

business. He has taken many of the lessons learned as a 

Prepaid Legal Services provider and applied them to the 

League. He has asked us to focus on customer/member satisfaction 

and expand our thinking to what markets we can 

and should be serving. 

As EVP, and with each new president, I get a new “boss”. 

Each president with whom I have had the pleasure of working, 

I have begun the year with an “incoming president,” 

but I have ended the year with a true friend. Such was 

indeed the case with Sidney Friedman. I have learned a 

great deal from Sid. His quiet confidence and no nonsense 

approach to management has been refreshing. Further, his 

enthusiasm for the CLLA has been infectious. He does not 

shy away from new ideas and is open to suggestions of how

we might provide better service to our members. He is an 

amazing salesman from whom his passion for the CLLA 

boils over as he discusses the benefits of the League with 

potential members at various trade shows. 

Perhaps, the ultimate compliment paid to Sid came recently 

when a number of his fellow Board members called Sid 

a “father-like” figure for them. They continued by saying 

that Sid had mentored them and encouraged them on the 

road to becoming leaders themselves in the League. He had 

provided for them a role model they hoped to emulate. 

Sid, you have been a great president, a great leader and have 

left a lasting legacy of which you can be proud. Those you 

have positively affected and encouraged along the way will 

forever be grateful. We will remain inspired by your gentle, 

but firm guidance and your unwavering ability to push us 

to think beyond what has always been and what might be 

if only we are to dream. 



ADVERTISERS INDEX 

CCC, Inc. 20 

CLS-Commercial Legal Software 28 

Commercial Collection Agency Assoc. 29 & 45 

Greenberg, Grant & Richards 39 

Jonathan Neil & Associates 

Back Cover 

Good luck and thank you. We are all better for your having 

served this League as our President. Welcome to (as 

they say) the best job in the CLLA – Immediate Past 

President!! 

The Notte Agency 31 

Todd Associates, Inc. 12 

Unifund 7 

Windham Professionals 18 


43

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ONLINE EDUCATION 

SPONSORED BY THE CLLA FUND FOR PUBLIC EDUCATION 

CLLA online education programming is available thanks to funding from 

the CLLA Fund for Public Education, a sponsor of quality education for 

more than 26 years. The Fund seeks to provide education to those 

interested in the credit, collections, or bankruptcy fields through programs 

offered to the business community, the bar generally and, if appropriate, to 

the public at large. The Fund is always seeking input from those in the 

field about topics of interest and new trends in the area of the law. Please 

email us at clla@clla.org for programming input and overall site reflections. 




When Selecting a Collection Agency be Sure to Ask… 

ARE YOU A CLLA CERTIFIED AGENCY? 

If the collection agency you are using does 

not display the above seal, they are not an 

agency certified by the Commercial Law 

League of America, the nation’s oldest 

creditors’ rights organization. Use of CLLA 

Certified Agencies ensures that you receive 

the following protections and advantages: 

■ Professional services to help 

attain maximum dollar recovery. 

■ Prompt remittance of collected funds. 

■ On-going oversight to ensure adherence 

to a rigorous Code of Ethics. 

■ Minimum $300,000 surety bond 

for your protection. 

■ Maintenance of separate Trust Accounts 

for collected funds. 

■ Reputable collection procedures that maintain 

your customers’ good will. 

■ An experienced agency that has been in business 

for a minimum of five years. 

■ Agency executives who are required to attend 

yearly seminars and educational meetings. 

■ Assistance choosing legal counsel when necessary. 

■ Creditors may call on the Agency Association’s 

Executive Director should a complaint arise 

regarding an agency certified by the CLLA. 

To find out if your collection agency is a CLLA 

Certified Agency and to download free, informative 

literature that will help improve your collections, 

visit our Website at www.ccaacollect.com, or contact 

Emil Hartleb, Executive Director, at (973) 239-0721. 

Visit us at www.ccaacollect.com 

for informative, free literature on collections.

JONATHAN 

NEIL 

& ASSOCIATES, INC. 

Since 1981, a commitment to service and results 

COMMERCIAL COLLECTION 

CERTIFIED 

AGENCY ASSOCIATION 

CERTIFIED BY 

COMMERCIAL COLLECTIONS 

EDI PLACEMENTS AND REMITTANCES 

ACCOUNTS RECEIVABLE MANAGEMENT 

COLLECTION SEMINARS 

OUTSOURCING 

STAFFING 

CUSTOM LETTER WRITING PROGRAMS 

The JNA network enables instantaneous access to viewing updated file 

information, generating detailed reports and communicating with collectors. 

JNA wants you to feel confident when placing your accounts and welcomes 

your review of our daily work. We can think of no better way to demonstrate our 

skills and services than letting you watch us work your files. With offices 

throughout the United States, JNA can service all your collection needs 

regardless of the time zone. 

(800) 331-6333 

www.jnacollect.com 

Chicago 

San Francisco 

New Jersey 

Los Angeles 

Orange County 

18321 VENTURA BOULEVARD 

SUITE 1000, P.O. BOX 7000 

TARZANA, CALIFORNIA91357 

TEL: (818) 705-3770 

FAX: (818) 708-2885 

131-A STONY CIRCLE, SUITE 500 

SANTA ROSA,CALIFORNIA95401 

TEL: (707) 578-2318 

FAX: (707) 578-2331 

15615 ALTON PARKWAY, SUITE 450 

IRVINE,CALIFORNIA92618 

TEL: (949)271-6400 

FAX:(949) 271-6401 

1600 GOLF ROAD, SUITE1200 

ROLLING MEADOWS, IL 60008 

TEL: (847) 981-4754 

FAX: (847) 981-5006 

71 WEST MAIN STREET, SUITE 304 

FREEHOLD, NEW JERSEY07728 

TEL: (732) 409-6148 

FAX: (732) 866-6119

leading the way - Commercial Law League Of America

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