Practice News

Asked and Answered

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

Q. I am a sole owner of a 4 attorney law firm located in Washington, D.C. Our practice concentrates on estate planning and administration. We have 6 support staff members. I just turned 60 the first of the month and am beginning to think about what I will eventually do with the practice. None of the associate attorneys are interested in partnership or in purchasing the practice - they just want jobs - they are not interested in owning a law practice. When is the best time for me to sell my practice?

A. You really have to give some thought to your timeline - how long do you want to work? Do you plan on pursuing another career? Have you put enough money away so you can simply retire without concern about the need to generate additional income?

If you need revenue for an additional 10 years and if you enjoy what you are doing - then it will not be in your interest to sell the practice too early. Let's say you could sell your practice for one million dollars - this might equate to two years of earnings. If you worked another 10 years - you could have earned five million dollars.

To a large extent owning a law firm is in essence a job where you work for a living where you have provided employment for yourself. It might be hard to find a job that pays as well as your firm. So if you need revenue for another 10 years and your enjoy your work - you should probably plan on working another 10 years. Build you timetable to sell your practice around your future work timeline. Things change - you may find that your associates change their mind or down the road you may end up with new hires that will have an interest in partnership.

Our panel of leading appellate attorneys review Friday's Illinois Supreme Court opinions in the civil cases Ferguson v. Patton, Julie Q. v. the Department of Children and Family Services and DeHart v. DeHart and the criminal cases People v. Cruz and People v. Donelson.

CIVIL

DeHart v. DeHart

By Michael T. Reagan, Law Offices of Michael T. Reagan, Ottawa

For more than 50 years plaintiff believed his decedent father’s representation that the decedent was plaintiff’s biological father. Plaintiff found to the contrary when he obtained a certified copy of his birth certificate to obtain a passport, which revealed who his biological father was. That man had abandoned the plaintiff when he was two, and had no further contact. Decedent married plaintiff’s mother, and for more than 60 years held plaintiff out to everyone as his biological son. 

Plaintiff’s mother died in April 2001. In 2005, decedent, then 83, married defendant, 29 years his junior. Three hundred sixty-four days later, decedent executed a new will in which he stated “I have no children.” A prior will provided bequests for plaintiff and plaintiff’s children. 

Legal suspense builds throughout this Opinion as the court methodically works through the six counts of the complaint which had been dismissed by the circuit court, knowing that what lies at the end will be the court’s treatment of the theories for “contract for adoption” and “equitable adoption.” The appellate court, which had reversed the circuit court’s dismissal of all counts, was affirmed in the entirety. 

Asked and Answered

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

Q. I am a partner in a mid-size firm in Memphis. We have 250 attorneys in the firm and I am considering making a move to a smaller firm. While I have a client base, I am not sure how much business would go with me. I am currently making $600k in compensation. With my experience - 25 years plus -- how important is a book of business initially? How big of a book will firms be looking for?

A. A portable book of business is critical - especially if you are looking to earn what you have been earning. A rule of thumb for many of the lateral moves that we have seen for compensation is 1/3 of book. You will need a book of $1.5 to $2.0 million to generate interest from major players.

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John W. Olmstead, MBA, Ph.D, CMC,(www.olmsteadassoc.com) is a past chair and member of the ISBA Standing Committee on Law Office Management and Economics. For more information on law office management please direct questions to the ISBA listserver, which John and other committee members review, or view archived copies of The Bottom Line Newsletters. Contact John at jolmstead@olmsteadassoc.com.

The Supreme Court of Illinois has announced the filing of lawyer disciplinary orders entered on March 15, 2013 during the January Term of Court. Sanctions were imposed because the lawyers engaged in professional misconduct by violating state ethics law.

The attached list contains the name of each disciplined lawyer, the address at which the lawyer last practiced, and a brief summary of the misconduct that led to the sanction. The announcement of the orders may be reviewed at the Supreme Court of Illinois website: www.state.il.us/court. Unless otherwise noted, the mandate of discipline issued immediately.