Practice News

By John W. Olmstead, MBA, Ph.D, CMC

Q. I am part of a three member management committee of a 16-lawyer firm located in Akron, Ohio. We have 10 partners and 6 associates. Several of our partners are in their 50s and 60s. We have had recent discussions with a couple of potential merger partners and laterals and in all cases they have backed out because they were uncomfortable with our balance sheet. What can we do to better position ourselves? We desperately need to bring in new talent with books of business.

The Illinois Supreme Court announced on Friday that the annual registration fee for attorneys practicing in Illinois will increase by $3 next year.

The increased funds will be directed to the Lawyers' Assistance Program (LAP), a not-for-profit organization that helps attorneys, judges, and law students get confidential assistance with substance abuse, addiction, and mental health issues.

Under amended Supreme Court Rule 756, the annual registration fee will increase from $382 to $385 in 2017 for attorneys who have been in active status for three years or longer. Attorneys in active status for less than three years, inactive status attorneys, and out-of-state attorneys eligible to practice in Illinois under Supreme Court Rule 707 will not see their attorney registration fees rise.

“This modest increase in the annual registration fee will have a significant impact on the LAP’s ability to provide services to impaired attorneys and to shine a light on the issues of addiction and mental illness in our profession,” Chief Justice Rita B. Garman said. “I have often observed that when the Court is called upon to impose professional discipline on an attorney for some sort of professional misconduct, the attorney very often has an underlying history of substance abuse or mental illness. Intervention by the LAP, thus, serves not only the attorney whose career may be impacted by these issues, but the members of the public who have placed their trust in the attorney.”

Asked and Answered

By John W. Olmstead, MBA, Ph.D, CMC

Q. Our firm has three partners, two associates, and 2 staff members. This is a new firm that started in practice a year ago. We are equal partners and allocate compensation equally based upon these ownership interests. We believe the current system has worked well, but have been considering whether one person should handle all the management duties and how that person should be compensated. We would appreciate your thoughts.

Asked and Answered

By John W. Olmstead, MBA, Ph.D, CMC

Q. We are a 14 lawyer firm in the Boston suburbs with four founding partners and 10 associates. Two of the partners are in their 50s and two are in their 60s. Several years ago we adopted a retirement buyout plan for the founding partners where each partner upon retirement is paid the balance of his cash-based capital account and a multiple of one times an average of his last three years earnings paid out over a five year period. I am concerned that when partners begin to retire the retirement payouts will place undue stress on operating funds and the firm's ability to be successful. I would appreciate your thoughts.