Practice News

United States Bankruptcy Judge Carol A. Doyle of the Northern District of Illinois has
applied to be reappointed by the United States Court of Appeals to a new 14-year term when her current term expires on July 25, 2013. A United States Bankruptcy Judge is a judicial officer of the United States District Court who exercises the authority of the district court with respect to any action, suit, or proceeding under Chapter 6 of Title 28 of the United States Code. 28 U.S.C. § 151. Comments are invited from the public and the bar as to whether Judge Doyle should be reappointed. Those comments should be in writing and sent by November 15, 2012 to:

• Collins T. Fitzpatrick
• Circuit Executive
• 219 S. Dearborn
• Room 2780
• Chicago, IL 60604

E-mail is a persistent and annoying issue in every lawyer's professional and personal life. To help lawyers manage e-mail, Jim Callaway, the Director of Oklahoma Bar Association's Management Assistance Program, has posted EMail Issues for Lawyers Today. In it, he explores the ethical ramifications, security risks, benefits, and best practices associated with using web based e-mail services such as GMail and Outlook.com. He also gives advice about guarding against security breaches from the client's e-mail service; and considers the potential of insisting that clients set up a new e-mail account dedicated exclusively to communication between the client and lawyer. In addition, he reviews the current debate about encrypting e-mail. Finally, he suggests making up false answers to security questions in 2 step verification systems and the use of password managers.

Along the same lines, Kashmir Hill  at Forbes Magazine posted, 10 Incredibly Simple Things You Should be Doing to Protect Your Privacy. It includes such basic security tips as password protecting your mobile devices, such as your smart phone, iPad, and other tablets. She also suggests creating a Google Alerts with your name, being careful about giving out your email address and identifying information in public, encrypting your computer, clearing out your browsing history, and turning on 2 step verification in Gmail.

ISBA Director of Legislative Affairs Jim Covington reviews bills in Springfield of interest to ISBA members. In this episode he covers the Health Care Services Lien Act, Personal property exemptions and trusts, Child-support enforcement (Public Act 97-994 and Public Act 97-1029), Sanctions for visitation violations, Domestic violence form, Adoption and Article 9 of the UCC. More information on each bill is available below the video.

Asked and Answered

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

Q. Our law firm is located in San Antonio, Texas. We have a total of 18 attorneys which includes me and two other equity owners that founded the firm and contributed capital, three equity partners that were made partner that did not contribute any capital, two non-equity partners, and 10 associates. The original three partners control the firm and make all of the decisions with little involvement or input from the others. They are not provided with financial statements or reports. The original three partners bring in virtually all of the business. We are faced with some hard decisions concerning partnership admission - non-equity to equity, associates to non equity, etc. Our compensation cost for attorneys is eating away at our earnings for attorneys that are worker bees and don't bring in any business. Your thoughts?

A. You may want to ask yourselves whether you want employees or partners. It sounds like the other three equity partners are not part of the inner circle and are not really functioning as part of the partnership. What are the criteria for becoming an equity partner? Is client development part of those criteria? Should they contribute capital? If they are not adding value to the firm - growth - you are diluting the earnings pool and reducing the size of the pie for yourselves. Personally, I think in a firm your size criteria for becoming an equity partner should, among other things, include client development and a capital contribution. They should have some skin in the game, contribute capital, and signup for their share of the liabilities. I also believe they should then be included in the inner circle.