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I dHlnk GoJ (or blessing me Wi lh lhe wl em or tcach ing and I (1 m h[lPPY t o shuTe with the s t ude n u lind th e ba r my experiences lh rough seminars tmd thCc!;:lssrOOlll. I :lpprccialc

ABI C LE giving m e [h e o pportunity to teac h a nd therefore to learn.

Robert F. Prince The Prince Law Finn PC Tuscaloosa. Abbamn 2001 rttI/licl1l ~ 1M Woller P. GeMn

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C,II ABlCLE" 1·800.627-65 14 • • 205·348.6230 for progr:lm informalion ,

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TilE ALA/lAMA LAWYER Vol. 62. No.7 I Nove mber 200 I

On the Cover: "mauga Cou /lly CtJurthtJust. I'rolll'illt, AlnMmll-Alllllu,a Counly 11m "llllbll!lr~d /" 1818 by acl 01 Ttrrlwrilll U~IJllIIurt'. TIl, "all/Usn lillI/tills /lV'I/ fill 11r, rff!" lrom ... /rlch Ih .. rOlJlty taus lIs ",m". nit' "UI(lf{SIlS ... ,rr m(mMrs o/Ih .. "lIbantl/ milt, {lIIllllrq It", /IIany II {/Triors 10 frSisl " nd,.....' JIM'''-ftm'~ InWlslon in l/rl' errrt Ill,,; 1111' ('O"lIIy II'IIS part of Ilrr I",rl/ory (witt! by Ilrt Crrrt In IillrlS in II" 7""1), 01 Fort Jlld:.I,"" 1814, I'hmogrop/ry by 1'1414/ Cm llford, JD IIII' A/aiKIIIIII

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No More Closed Doors

366

New IRS Rogulations Greatly Simplify Minimum Distribution Rules for IRAs and Qualified Plans By Cynthia UIIII(lr-III1r/

373

The Rules Do Apply to Me

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Understanding Title Insurance in Alabama By I(obut R. M (ult/ox (jnd ÂŁ1I(!n Oroy OIl'(!11

380

Advising Clients: How to Recognize and Protect Intellectual Property By K(!l rl rel /r M . BlIslt

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The Home Front By Ben

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THE ALABAMA LAWYER

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I Al3791 I

lIlry W, Morrl.

The President Asked Her To Go Shopping e said ii , Silting there with my wife I heard him. The President of the United States asking us to be patriotic. Help the economy. Then he aaid il-" If nothinil else. iO shopping. spend some money." Now we hlld already purehascd flags. ribbons and someth ing thnt stkks on can from crafty cntrepre.neu~. This is whllt I thought the: l>rcsidcnt menm ntxMll spending money, but oh. WIU 1 wrung. After a couple of exhaustive trips to the mall. my wife returned with $acks of Silks' mel'Chondise completely convinced that she had carri ed 0111 the ordc~ of her cornrnll nder-inchief. Whllt II l'lIl riOtl She hnd Ilerfol1l1cd her mission well . She hnd bolstercd the economy JUSt ~8 the President hnd requested. When as ked aboUl the emmt of the shopping. she PfQudly proclaimed that we b\d

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HaUiesbllrg Hild Thscul OO5ll lh:11 hIlS yello be found, I ulli· mlltely decided thnt reponing Il 28·year-0Id lost jeep mighl clluse such p mon umenllli invesliglllion by the Nmiomll Gunrd thllt it could interfere with the war effort , Slowly, I realized that I would me re ly mnke good cllnnon fodder for the misled enaies thllt th realel1 our very exhlence, When all around us Ihere is a hue lind cry to teSiriCI OUt inalienable rights, Inwyel1 have to lissu me n leadership role, Whnl we liS IlIwycrs clln do in such a perilous lind tense time is do whm we. do best- Slay composed. We n« d to ~llIy composc:d bcCIiUse lhese ri llhl ~ ha ve 51«rcd us Ihrough a revolt from our nothcr COUlltry, pn internlll war pillina brother against brother, two world wars Rnd numerous 50Ciallind political changes. Now is not the lime 10 abandon t hl!.~ precious rights or 10 ullow thei r power 10 shrink un lil for prnClicll1 purposes they do not exisi. Lawyers tire pnnie ularly prel)ftrW 10 dil$ UmC th is increl\sed burden of citizenship. We unders t ~nd Ihm in order to combat the zelilots who respect neither law nor reli· gion. we must be rendy to snerifice the possible loss of ~me 1iberli l!.~. I gnldgi ngly reml (,botH the nece~s i ty of invnsive wireUlppinll. electronic Nurveillance and restricted immigmtion procedu res. II is Impol1unt Ihm we work through our elected officilll.'lto let them know it is vi tully impol1l1nt thm we ac hieve and muinlain II deilcale blllllnce between erudicuting terrorism and preserving the rights tltld pdvileges Ihm huve Ill10wed this (OUlltry 10 thrive for 200 years, As n lellder, and liS a lawyer. I know you will take mOSt seriously yoUI' responsibility in RC hieving thill blllllnce, At Ihe end of the ooy. you will be proud you did.

P.S. Your state bar is running smOOlhl y and effidentl y. It would scem callOus and p resU lUptUOUS 10 diS(;uss with you lhe worki ngs or OUl' b.1r when we all lite tryill8 to kelp our country and its thrtau:ned citizenry. •

Free Report Shows Lawyers How to Get More Clients elllr.- Wh y do lome lI"")'trs ItI rich ...·hile OIhers JIt\l&lIc to pay ,he:ir billJ? The: an ....-cr, l«Ordil'll LO 11\Qm()'. o.,,1ei M. W.rd. haJ nothlnl 10 do .. lIh Illcl'Il, ~U;:ltion, hanl wor~, or co,-cn Iu;:k, ~The 11",,·e......·110 ml~c lhe bia moocy are not Il«cUllfily benef IIWYC;'," he SI)'S, " Tile) hue limpl) lumtd how 10 m.rhl lhe:;r JClYlcu." A Jucc eurul sole p""IIIlone."'ho once llrul&lcd 10 allnCI clienll, W.rd c!"Cdil, his turnaround 10 ~ rcfcfTIIl m.rkelll'li J)llcm he dc"e loped sh )'Url .,,0. " I wcnl fronl dud broke Ind dr(lwnlnll In debl 10 curnlna 1300,000 • )CBr, I'llIcllull), o' cmiahl:' he ,.~ •• Most I....')'crs depend on refcmls.. he: Min, 1)111 not one in 100 UJC" "'fe.... I,)'Sltm " Wilho\ll I J)Slem, Ide .... ls

In: unpRdicu.blc. YOu ma), gtI MW clienlJ Ihi, mo.lh.),ou May nOI, he IIYS. A rtfeml l)'1Iem, Wlrd ""ys, cln brina In I $Iudy lileam ne .. clrml J. monlh .Oer OlOnlh, )'t... Ifler yt .... "It rtclJ art.1 10 come 10 lhe: office e-~f')' dl)' ~nowina lhe phone ... 111 ,in, and new bU51MII ... ill be on lhe liM" W... d hIS lauahl hil ",remll ')'tICm \0 o'-cr 2.100 I.....)'tf$ .... orld" ide•• nd hili! .... rinen • lie" rtpol1 , Mil o.. "0 ef l ~I orl Clltn\) In A ,..tonlh Th in \'ou ND '" Ge l All Vnrl" "hleh revul! ho.... In> lawyer un use Ihis !)5ICm III 8:cl mo~ clients lind increuse M

their Income. Alabama I;"')'el) un 8:(1 I FREE cOJI)' of Ihk report b) cllIinl 1·800·562../627, • H· hour fm: rccor<Jc:d n1C:lS68t. or vilillnl Ward', .... eb ! ltc. hI/ p:/I.. "

For an Expert Business Appraisal. Knowledge and Experience Make the Difference ... 111(_ " pn Ilwle"klllol firm '1~lahllnllln tllNne\\ nppmi\lIh_ Dl'irdrl' Ru"c1I. "''''Jlcr. hi" the e!lpcri~nce und rec· 0!llu/cil 111111"11")' crl'dcn!ml< Ihlll I,n,vide Ihe hilthe\! 11110111)" cXp(:rJ ~nlual;"n< for Illl ~lnu,c< uml Imltc,sll'"nl pructkc,. lIer ufflllnt!vn with Ihe Amerleull BlIsi ncb _ _ .1. • - ' Appl'llj .... r~ Nelwork. n "mional coahtion or OA,,ID indep'cnden! oo<iJlclS 1111l'ruisell, cxpnJ1ds her rC~I\I'I:C~ 10 {'(fer II whle Tnll,e of b!1"UCSS Ilppn,i~ul neelt", ku.t,ell 1-lI1lnnll

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RUSSELL fi NANCIA L CONSULTING, INC. BUSI NESS VALUATION SEII,VtCtS J\lst OffICe IkIA 14llm • MOIIIJOn'Ift)'. Alablma .1612... 1612

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A/aball/(I Reporter you would be correct. This is the nUlIllx:r of vo l umc~ or the A/(I/lmu(j Reporter comuining Ihe published decisions of our llppelllllC courts lhm have borne Ihe scrutiny [he

reponer of decisions. George Earl Smith . George Earl retired as the repol'lcr or decisions Or\ September 30th. The reporter of decisions is nOlll head line grabber. Yel, Ihe reporter p lllY~ II vi tal role in ou r Stlllc'S jurisprudence: by e nsuring lh ut the written decisions of our uppel1illC courts ure nol

onl y gromllHilicflUy correct, properly punctullted lind inter-

nally consistent, bul ulso correctl y reported. [n the losl 80

years, we have hnd only three reporters: Nobel 1·1, Seay ( 19221968), John B. Scon (1968· 1978), lind George Earl Smilh (1979.2001). 1 urn pleased Ihal Bilee CaU ley, Ihe 1I.~s i$111111 reporter, hll~ been appointed 10 follow (iCQr,e Earl as reporter of decisions. The first decision of Ihe Ahlburna Supreme Court rclXll'lcd by George I3MI appeW"ii in volume 369-370, pagc I, of the AltlbtmW Rtlmfltrf. Since Ihat til'lll volume of ellses, George &1rl has rclXlrted Alabama nl)pcl. IDle rllses filling 133 volumcs, He hlls also reponed the Rules of the Alllb:lma Supreme Court IhlllllUlllber ill the hundreds lind nowexcC('d I ,000 page~ . Allhough Ililee joined George EDrl in 1989. Ihe number of ~ppel Inte decisions and court rules Ihm he eorrccled as reporter is omozing. 1·le hus Spenl 22 yeaf!i of SO-hour work weeks to keel) up wilh Ihe prodigious workloud of our Ihree "ppellme courts, Yet, this work was neither drudge!)' nor u chore for him but a Inoor of love. 350

NOVEMllER 100 1

I have known George 001 si nce 1982 when I workcd staff 1II10mey for Justicc Hugh Mflddo,l(. Law clerks who have worked for one of the appellate courts. and huve been called IQ retrieve the wriuen opinions for their judge's chambcfll after George EArl read them. remember those occasions vividly. A perfectionist, GeQrge EDrl wnnted each decision to relld cleurly and be smmmaticlilly correct. His thor(lUghne.~s in this regurd reminded me or Illy 121h gtilde English Itilthcr. Once his suggestions were incorpormcd, however. the final version Always reud much bet· tel', Although busy, George Earl still took time to improve Ihe mnks of his peen. He was II founding member of the nlltional organi1.lIIion of toun reportef!i. the Associalion of Rcponel"!l or Judieinl Decisions (ARlO). He served as ils president from 1984 to 1985. TIlis past AugUSt. ARJO held it5 20th IInnulIl meeting in Omnse Ilcuch. At thlll meeling George Enrl received lite Out sl~ndins Leadel"!lhip Award I'CCQsnizins him for his many yelU"S of service to the organi1.8tion flJld profession. Retirement will nOl be II period of innctivity for George Earl . l)rior to Il\lending law .schOOl. George Earl was nn En8lish leacher. I-Ie reccmly told me thm he wilms 10 return 10 Ihe clAssroom. although in Aslighll y different contcxlthis lime. Presently, he IS IUldergoing un intensive sludy of SpAnish at Auburn University Montgomery so thlll he will be able to teach Enalish to Splluish-speoking studenL'i. I lim 1101 too surprised III hi ~ new endellvor becnuse George Burl hu.~ ~uJly been lin English tcocher mnsqueruding us iI reporter of decisions these PMt 22 years. My advice, in poor Spallish. to his future slIIdclits is: l'reJ't/ilt tIIeltci611 (I los dcwllcs ! • liS

CEELI Attorneys Wanted

The Alabama Association of legal Assistants is a notfor·profit professional association for legal assistants !also kno'Ml as paralegals). The MlA not only furthers the legal education of its members and supports community service and charitable projects. It also maintains a job bank to assist members and Alabama law firms with employment needs. Firms can post job openings on the MlA Web site, 'lMlW.aala.ner. and it will be available to members throughout the state. For more information about AAlA or specifically about the job bank, contact Michele Steadman, employment chairman, at (2{)51250-5024 Of mSleadman«:/awfs_com.

TIle Cell1ml lllld En~t European 1_'1'011 Inili:llive (CEELI). a public service project of the Americnn Bur Associlllion. 5eeks nl1onle)'~, wi th live+ years' experience. to develop. coordi· nate and implcmcnllcgal reform projocts in Centl'lll and Eastern Europe lind the NIS. ~itions or VwiOUb lengths Me nY1lilable throughout the region to work with locnl judiciaries. bar llssocill1ions, auomeys and legislative dlUfting cQmmittees on crimina], environmental, oommercilll. or gender issues or civil law reform. Pnnicipal115 receive II generous S\lllllOl1 package. E·mail Ali\Oll 31 c~~li@(jb(m~I.O'8 or visit ww"'~ (I/}(IIIt'I.0"8kt''''1 for an nppliclltion arn.l infonmuion.

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The Alabama LawlIl!r is looking for "war ~tories" to publish in upcoming i55ucs. humorou~ t..~lu lind Ilnce· dotc$ aoout Alabama JaW)l<!rs and Judges. Obviously, for such sloriu to be published. they must be (II) lrue. (b) IImwing lind (e) tllSteful. Send )'Our reminiscenw to: The Alabama Lawyer. P.O. I10K 4156, Hontgomery 36101. Be . ure 10 Include )'Our name, addreu l nd l daytime telephone number. In cue we need 10 contact }IOu.

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Rho nda IJ rowns tcln wns recently "limed legal dirt(:\()r rQr the SO\lthem Poverty LIIw Center. u nonprofi t OIlanb:ation co-fQlm(\cd in 1971 by lllwyers Morris Oec~ lind Joe I..cwin that combats hale. illlolerance and discrimination thl"O'13h litigation ~nd education. At. legal director, BrownstE:in is rc.~ponsible for overseeing Center litiglltion. mllnaging a stalT of lnwyers nnd support pel"Mlns. Ilnd helping guide the Center's advocucy elTorts.

Le urn Cnrl1!11 Cmulry wtlS sworn in September 4th Ihe first presidcntiall y nominmed WOrlUtrl to serve lIS a United Stat/!ll Anorney in the state of Alaboma. liS

She serves as the U,S. Anomey for tlte Middle District of Alabama. Ms. Cannry ~eivcd her undergl"lldull1e degree from Huntingdon College nnd her law dealee from the UnLVen>ity of Alobamo School of 1..1111'. She worked from 198 1 until 1990 os on Alabama Aui5HII1t Attorney General. For the nex t four renB. she served liS /I triol ullomcy in the civil division. eonsti!lllional and specialized torts MutT of the Department of J II~t i ce in Washington. D,C. She then becamc nn Assistnnt U.S. Attorney for the Middle District of Alnblllllll, whc re she served M chief of the civil division lind also as spcciol IIttorney for both the Northern and Southern districts of AI_bnm3. •

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ALABAMA STATE BAR ALABAMA STATE BAR MEMBERS

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DON ' T M]SS OUT... Call or fax yo ur request for more information (including features, costs, eligibilitY, limitations and exclusions) TODAY to: PROFESSIONAL INSURANCE ADMINISTRATORS, INC.

AI/ Insurance Specialists, Inc. company. a Georgia corporation P.O. Box 2827 • Norcross, GA 30091-2827 800-241-7753 • FAX: 866-3t4-9088 • Applicants nrc subjcct to the medical unck:rwriting guidelincs of New York Life. This will nOI affect acceptance to the plan but may affecl rules allimo of issue.

J)u~ to t" ~ IlUg~ illcretls~ 1l/ l lOtietl / or

"Alwlll AI(IOOIll(l LAwyer wfll

M flmhfln , Alll ong f'irllll," nlf! 110 iUlIgflr puhlisll adJffsslls olld tflll'pllOllfl llumberr IInless the al/ no/mcllment n latn to II" opel/illS u/o Il e ll' firm or liMo pfllctice. " /t aYfI CO I/tillllt! to .f fllld III (llIII O/lIIetfl/ell lS uflil/or (IIlllrn s clulIIgeJ to tllll Alabmtlu StO/1 Bar MelllbtJrslli,1Oepllr/I/U!fIt, III (334) 261·63 10 (/(1."1:) or I !O. Il ox 67 1. M OIl /golllery 30101.

About Members Christopher A. 'l'h lgl~ n announce! the n: locluion of his pmclice 10 2223 81h StrUI. Thscaloosa 3SGO I. Phone (205) 345-4 122. William H. Fl hu o/"e IInnounce~ the opening or his office lit 3 1 S. Court Sllunn:. 01.llfk 3636 1. Phone (334) 774-7274. Michae l O. Mllchell onnounces the openi ng of his office lit 2820 Columbl:lIla Road, Suite 100, Uirmi ngham 35216. Phone (205) 824·5370.

Among Firms lJollrd ma n, arr & Wl'Cd. I'.C. IInnounces a nlt/ue chnnge 10 IlOli rom ll R, Carr, Weed & II Ulcheson, I'.e. lind Ihlll the o ffice~ hllve rc locnl ed 10 400 Bo.1rdman Dri ve. C hel ~1I 35043. Phone (205) 678-8000. Wo lfc. J oncs ~~ lJoswcll announces thnt Eric J. Artrl]l has become auoc iatcd with the lil'ln. Eva ns, Jo n~ & Reynol ds, " .C. announces thllt Sumuel D. I'uyne hlu been named II shareholder. Ilor ns by. Wutson, Il urIIs by & IJI l1ckwell announces thm J ennlrer I.. McKown hIlS bc<:ome associated with Ihe timl, Urll dl t'y Ara lll Ruse & While L.L.P. announces thm Geur ge Hll r rls has relOCllted 10 Ihe MOlllgomery offi ce. lIJ1d I' hlllil II . lJuller, Weml cll Cnul cy, W. Sta nley Gl1!jtory, Churles A. Stt'wn rt, TTl , Robfrl D. Thorington, ThoIlIllS ..... Monk, and IJrill n I', St rength have joined Ihe Montgomery office. 354

NOVBMOBR 200\

.' Inkbuhner. Lawler & RMY. L.L.C. IUInouACes tlull John Lu wle.r has withdrawn rrom Ihe liml and will continue to ]llllClice in Mobile. Royce A. Ray, III has also wit hdruwn from Ihe linn lind Ihe pmctice of law, Gl'(l'ltt! W. finkbohn er lind Ski ll Finkho hnt' r will cont inue to jlt'dctice as T ht' Flnkbulmer Ln w Firm, L.I... C., wilh offiees IOClilCd llt 1650 CiQvemnlelll Strect. Mobi le 36604. Phone (2.5 1) 412-3388. Coch n lll, Cherry, G h'ens & Smllh, I'. . announces 1/1111 U. ShilllllOIl SJiuml l'ni und Lunce II. SWllllllcr hove joined the liml. IIranl ley &: Par ker, L.L.C. IInnounces IhpI Th mmy 1... Stln.'I01l hIlS become II.-"sociu tcd with the firm. lJush Craddock & RCllckcr I... I~.I'. annou nces thc ope ning of un office in Montgomery and IhllL Mlcltntl L. White lind Wl n~ l o n W. Ed wnrd.~ hnve joined the liml. Offices are locllled III 4142 Cunn ichllcl ROlld, Suite C, Montgomery 36 106. Pholle (334) 21!l-3064. ZIWI.u ur & Sch wu rt~, " ,C. annuullCCJ thut Nao mi A. Co hen hkt r h" joined the finn. T he LIlW o m ct';!; or Arch ie 1.11mb. I..I•.C. unnounCClj thllt A. OQ vld .' Qwftl hu joined the li rm und Bli rbli rli F. Ol~dtnc r has become of cotlll.ft'l. Ah l t'.~, lJ ux ler. I'n rkcr & l'lnll, )'. C. nnnounces thm Clmd W. Ayres has become IIssocill ted with lhe lirm.

COnljlnngy. Urooks & Smlth. I...I..,C. nn nOtl llCeS Ih llt J, Tohhl~ l>ykt'S hM become llU ll ~soc ilue, Shcll y D. 1l00d and I' lurick O. S hll~ IInnOUnce the openin, of Hood & Shlls, L.L.C •• with offiees located a12!l 16 Pilul W. Bryan' Drive. ThsclIJ005:l35401. Phone (20!l) 752-9333. O1t1e, UIC!i & Upshnw, L.L. I'. announces Ihm II. Slewli r t hos bc:CQr11C on ussocime,

R nl ~ rt

Smit h, Spirt'S & " edd y. I'.C. n nn Oullce~ \lULL Du vld A. llrlll. ht hnsjoincd Ihe liml WI an ossoclfllc.

McKoon, 1'hOIlIllS & Grn)' nnnounces thrjt J. PdhAm I"fn1!l1 hus become 0/

C. JnSOIl Ugglln hIlS Joined the fiml /IS

coli/luI.

lin associate.

, 'hc And erson l..uw Firm, L.I...C.

that it has opened II Binninghllm office /lfId Jcs.~icM O. Kirk hus become resident counsel of the finn. Bnnounce~

John Unrndt, III nnd JefT Oyt'SS announce the romtMtion of lJu rnett. Buga, Lee & OYU!!. L.L.C. Allet F. ~ is also ;1 member. Offices lin: locmed Ilt the Monroe Coull1Y Dunk Building. Suite 200. 60 Hines Street. MonroeYilie 3646 I. Phone (2S I) 743·3386. Lloyd , G rny & Whltchend, I'.C. unnounces thnt T homns J. Skinner. IV

hus become n stum: holdcr. uud J. Ounny li tickney, .Iohn C. We hh, V, I'reston n . OIlY\S, und I)nYls A. n rll'luw hbYe become uSSociUled with the linn. Robert K. Jordnn. I'.C. nunouuce~ that Angelu A. CO('hnm hlU joined the lintl as un associllle.

Roberl F. Lewis, I'.C. announces that

Nl\Jjnr Dtnllburg. r. c . announces Ihnt RobIn I.. Burrell has become II. shllrcholcler lind ScaH t-: Ford, Kimberly U. Glass ar.d Mlehllel A. Anderson have become associutes.

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White & Oukes. I'.C. announces tllnt t:rick K. Prnll and Angelll Hunlt'! Snhurie hllye joined the timl as associ.

Wlndow5 HIl.sed Collecllon Soft wa r\! I;or AttorneY5

atc.~.

• • • •

T. Eric Ponder announces that he is now associllted with the firm or Uerlon. I'onder & Wlklcndt, 1..1".1'. in Duluth. Georgill. UI'OOks & Ilurmon announces n name change to lh·ooks. Hurllion ~~ MOllk, I..I..C. lind that Ceorge A. Monk and A. llonliid S«!U, Jr. haye. joined as a memo ber oud an associate. n:~pecti\·e ly. •

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Bain, Lee Edmundson, Sr. Birmingham Admitted: 1936 Died : July 4, 2001

Long, Frank M. Montgomery Admiued: 1954 Died: August 12,2001

Britton, .John Manley Phenix City Admitted: 1984 Died : August 3, 2001

Parker, James Allan Montgomery Admitted: 1934 Died: Jul y 22, 200 1

Culp, Douglass Birmingham Admitted : 1968 Died: Jul y II, 200 I

Riley, Ray Gordan, Jr. Mobile Admitted: 1968 Died: May 16,200 1

Dollil<, Gerald G. Thscaloosa Admitted: 1970 Died: December 26, 2000

Thrner, James Arwood

Harvey, Hubbard Henry, Sr. Demopolis Admitted: 195 1 Died: September I, 200 I 358

NOVUMBBII 1001

Tuscaloosa Admitted : 1952 Died: June 27, 2001

join t e ~(al1am tate -:Bar Vo(it teer Lawyers Prov,~r.a_m

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oin the Yolunt er Lawyers Program and receive manual on a 3 1/2" disk, free. This manual cove

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/11/1/1/'11/1/111/11

3'7

•

11111

Roben I.. McC~II.~. Jr.

Th ird Specia I Session T

he Al ubllmu lcgisll1lure in September completed its Third Special Session during 2001. This is the IIlOSI specill] sesSiOM held since Governor Wallace called Ihe legIslature foor limes into sptdlll session in 1983. Only Ihe Governor has the lIulhority \0 calil he legislature into II Special Session.

The First Special Session in 200 1. clliled in the mid· die of the Rc~ uJ llr Session, p:lsscd no IIcls. It tHld been culled for the purpose of dealing with the shoMage in the Special Bducmion ' j'ni sl FUlld. The Second Speci!!1 Session, culled for rtll ppon io nmcnl of the legislature. yielded three bills. I!llch house of the legislature WIIS reapportioned lind a third bill passed dctlignlliing llle venue for conlesling these plnns. In the Third Special Session, the legislature passed 55 bills. ThinY·lhree were ullllrollrintion bills 1Ot.1Hng IIpproltimmel), 2!iO million dollars. Another bill. H8 .6. provided a 110 million dollllr bond issue 10 oIT'scI prorulion (or local !lChool boards of edllclliion. [I provided Ihc authority to usc the bond~ (or equipment. build ings and cOllitill outl uy !llld to retire dehts hy mncllding Act 200 1·668. 111Cse bonds ure exempl from usury lUld ellllnOt exceed 20 yenrs. Another bill. 11.8 . 7, exempted from the Certi tieate of Need law a hospital of not less than 3.000 beds to allow it to become a "dla ital hospital." HR. 6 1 provi des that the Hllbitllal Offender Slalllte. I3 A·!i·9. thaI was nnlClUled in 2000 lind applied only prospectivel), will now he applied retroactivel)' by the sentenci ng judge or pres idi ns j udge for considel1l tion of earl y p/u'()le o f each non·violent, convicted offender based on evalumions by the Department o( Cornctions und when lillilroved by the Sonrd of Pardons lind Paroles. HI3. 86 amends the Cont ro lled Substance low by lidding th ree new Code section5 and amendins others which i ncl ude~ the me re possession of precursor su b35.

NOVI! MK E R

200 1

stances wit h the intent to unlll wfull y manufacture a COntrolled substa nce to be a CIIl$$ 8 felony. It (urthe r enhances the punishmenl i( the person pc>$scsses II tire llnn or is within SOO feet of a reside.'Ice, business Or school. It fun her makes the mere possession of onh)'o drous nmm(mip to be II cri me, Act No. 90 amends the il1lernnciOllnl \101M )' Public Art iclc. 36-20-50 u seq. to add dcfin itions lind to chllnge the nnrue fr()m "AI ~bllm" IlIIcrn:lll01l111 NOlll ry" to "Civil Luw Notllry." l iB. 92 provide!> thlltthe pre.~ id i ng judge Qf Ihe eir· cuit has the IHllhority 10 npl>oinl ~pecin l judgeM 10 ~ it in ci/'¢uit, district or probate courtS of II judiciltl circuit liS needed. TIle pel'SOn so appoiltted wil l possess the quali. tications of the jud geship 10 which appol nled. The special jUdse 511;111 qualify by taki ng the omh of offICe but shllll not ~eive compensation fOf his ()t her services. The II ppointmc nt cannot be more than ISO conSCi::utive dllYI but mlly he ~appoi nted liS needed for one IIdd i· tiollul 180.consccut ive-dll),-perlod. This is supplementnl to Ahl. Code Sc:ction 12- 1-14 which cUn'Cntly requ ires the MII)I'Cme court 10 mnke IIppuill tmcll u. Senate 0 111 28 proposes j) constitutlollnillmendment th at "nny new I)rol>oscd COnstitulion of Alabama IIdopted to replace the existing Constitution or 1901 shall become cffecti ve onl y upon ils I'tll i fic~ tion by II mlljorit)' of the qunlificd voters vOlinS on such ra tifica· tion." SII. 7S . know n a.~ Competitive Hid l'roceS$ for ProfC5~ionlll Contnlcts, provides Ihal lillorneys retained to represent the sllIte in Ii tiglllion shall be appointed by the Allorney Oenel'l'1l in COnSult lllion with !he Governor fro m II IIsl of IItlOrtteys mllinlllined by the Attorney Ge ncrlL!. AU IIltorneys imeresled ill represe nti ns th e Stnce of Alllbama may opply ond be included on th is listing. The selection of the attorney or I" w finn sholl he bll.~d on the level Qf skill, experience lind ex pertise

rc(luired inlitign1ion nnd the fees charged by the anorney and law lirnl Shll l1 be tllke n into eon~i demlinn $0 Ihal the State o( Alabllm:1 receivellhe best representati on for the funds paid. ttCCJ shall be negotioted and approved by the Governor in cunSl-ltalion wilh Ihe Anomey General. The maximum fees J»Iid fOf' legal rcpre.'lCnlation may be establi shed by executive order of the Governor. A llomey8 reta ined by the Illite to reno der non -li tigation legal services shull be selected by the purchllsing entity needing an attor'r1eY frolll IIl8t of atto rneys maintai ned by the le81l] odvi~r 10 the Gove rn or. All II tt orneys interested in 1'l:p1'l:scnting ony purchusillg StOIC emity may npp ly nnd be illcludcd o n th is listing. T he selec tioll i.~ under the sa me c rite ri a as those on the list rnuintnined by th e Attorney Oencrll iund does not npply 10 IlIl0meyg appolnled by the cOLIn. Ltndel1i o rten bundle similbr loons such IlS can; or mOl'1gage loons Ilnd se ll Ihemto other e1l1ilies. 'nle l)urc hll5Crs of these loans !\til ~uri li es ]).1ck 10 buy the 101los. Th i~ is call ed a sec uritizllt ion tranSllction. S8 . 40. is dt-~igncd to cor-

re(:t Ihe problem recemly crentcd by Ihe l:'i nancial Aecount ing Standards I) oard whi ch hud rulcd a sccurili 7.a tion tra nsaction ellnnl){ be trented as n finlll 5nle of asscts unlilthe Stille clarili es thm such a tran saction is II sc ll . S R. 94 ~uires onyone who submits a proposal. bid. tommct or 8ram proposal to the SIHte of Alabam.t to disclose the ir family re lotionship with public officials. public employees and fam ily members. 111i5 act is very broad. Anyone deali ng with the SlII te should con.'iult thi s OC t. A vio lation or this lIet will s ubject the per· son (0 a civil penalty. At the writing of thi s art icle these bills have been sent to the Governor who mu st sign them before it will become law. You s hould cons ult the legis hllure's Web Hile to determine effective dotc~. T he genentl discu ssion is Ihm !hcre will be II Po urth Spccinl Sc:.Is ioll culled. If thi s hltppens it will be on ly the third yellr si nce 1975 Ih!lllhere h)ve been (OUf SIIe· eial sessions in one year. TIle prev ious two yenrs were 19751l11d 1983. whe n George Wallace in hi s fil'5'l yeur of each of his las! two terms called the legi5lature into ~ssiQn four lillles in addition to

the rca ulnr SC5~ion nnd o raanizlltional ~ess i on .

l11e 2002 Regul ar Scssion will begin Junuury 8, 2002 and may contin ue 105 days until April 22. 2002.

Acts Effective January 1, 2002 Act 200 1-48 1 Revised lICe Article 9 Act 200 1-458 Alabama Electronic Trunsactions Act

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Judicial Award of Merit Nominations Due The Board of Baf Comrnissioocrs of the Alabllma Stille Bar will rudvc norninnlion~ for the nlnle ba(s Judi cial Awurd of Merit throu gh March IS. 2002. Nominations should be prepnred and muiled 10:

K eit h U. Norman, secretary Board of Bar Commissioners

Alabama Slate Bar P. O. Box 67 1 Montgomery. AL 3610 I nleJudiciul Award o f Merit Wll8 esillblishcd in 1987, The award is not necessarily lUI annun l nwurd. It must be presented 10 u judge who is not retired, whether sime or federal coun , Iripl or nppclhuc, who is delermined \0 have cornritxued significllmly \0 the wministnuioll of justice in Alllbnmll. The rccipic ll1 is prcscnu,!c] wilh 1\ cryslnl guvel bcMing the SIOIe bar senl and the ),C3r of prc(lell1 l1lioll. NOl1li1ll\lions lire considered by (\ three-member COllll111ltee appoinled b)' Ihe presideru of Ihe silue bllf. which Ihen makes" recommendatlon 10 Ihe board of bar commissioners wilh respccl lO II nominee or whelher Ihc OWllrd should be presented in 1111)' givel\ ),elli'

Nomimuions should include D delliiltd biogrtlphicul profile of tin: ntlllrincc and II nnrmtive uutlining the slgnificllrlt contribution(,) Ihe nominee has made to Ihe ooministrmion of jusllee. Nomin mlons Ill"), be sup. pol1ed wilh Ic llc~ of endOI'SCment.

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No Morey'Closed Doors In 1995, the Supreme Coun of Alabama adopted a rule governing bar disciplinary procedures which added to each discipli. nary board panel a ley member, a nonlawyer, for participation in the Alabama

State Bar's disciplinary pro:ess. The American Bar ASSOCiation had previously created The McKay Commission to cooduct an overall review of lawyer discipline

nationwide. Three basic criticisms of the self-policing of lawyers were nOled by The McKay

Commission:

1. Too slow; 2. Too soft; and 3. Too secret. In response to number ltree, the

Alabama State Bar Board of Bar Commissioners petitioned the Supreme Courl of Alabama seoking a rule modili路 calion 10 the Alabama Aules of Disciplinary Procedure which would add a non路lawyer to the discipli,ary process, thereby 路opening" that portion of lawyer discipline in Alabama. The result was an addition, in 1995. of ten lay members to the bar's drsciplrnary board panels, Alabama lawyer Susan Cullen Anderson interviewed certain 01 these individuals, The following i5 an excerpt from Ms. Anderson's work..

In 1995,1he ROADSHOW hOI

details, The tonowrcI- CLE

,. ;,~~~ Low OfIlce Mcnagoment _once FregIa" _ Laura (:aile,. ~ quesllOns on evefYIhIng from _ _110",10 COIIII>UlW-

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• and Th und st of "otabllClIC8 the abuIe 'NItI*1 the protlIIIO'.... and tell you solution 10 this grOVllng problem

• Judy Keegon. director 01 the Afabama Center for DIspute ReIoIutton. txIngI you a the lolest updates and Important casee from the fast-growtng areas of mediation and • Genelol Counsel Tony McLain keeps bar members Intormed at the lotesl ln disciplinary Issues and maJor legal developments In Alabama and across the nation. • \JoIunteer lawyers Program OlractO!' Undo lund has developed an ethic s a nd professional component covering signific ant developments on a local and notronollevel.

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S umrull joined the Alaba ma Slatt

Oar's disciplinary bOf1rd in 1995 without preconceptions and with SOllle empathy. "My brother i811Iawyer," she

says. "Yoo alwnYi hear thlll lllllawye~ nrc crooked and all JlQliticiPIlS lire crooked. BIll I know there are great lawyers and ireal polit icians. In Ilny profession, you'll find bad caiS," M~. Suml1lll Willi one of len Illy people added to the state bar's disciplinury bOllrd IIflC~r the task force ~ommcnded. lind the

AI!lblImll Supreme Court approved, cl!l7.cn participation in lliwyer discipline. AI prescnt. there nrc six IllY mcmber1l1nd 11010 alternates. TIlt di~iplinllry board is divided into &i1l panels coo-

sisting of one lay member. four bat commissioners, and II disci· plinnry henring officer. Boch j)lUlcl hears chnrges against

lawyers IIcc used of violating lhe bar's Rules of Professional Cond tu;t, The lay membe rs nre nppointed for one· yellr tenm lind may serve unlimited successive temlS, Mobile luwyer lJilly Bedsole, a bllr cormnis· siouer for severnl yellr~, nnd presentl y serving lIS a disci plinary henring orncer, IIdmits he wns apprehensive before tile lay members were selected, "I didn't think the Iny me mben would ulldc rstnnd the le8al niceties of cthicnl violl!tions," he 811y5, And Bed,wle WIIS n1i ule ncr ... • ous abou t the punr$hmellL those Iny folk would wan. ' 0 dis!) QUtto .he wLlyward altorneYl, "Serore they were lidded, I thought they'd say, 'I have the chance to punish II IlIwyer, let'll hnng him by lhe heels,'" Bedsole snys, Thankfully, BC(!50le found he wa~ wrong on both co~nts , " I think the Iny people understand the problems just ItS well as we do," he 5IIY5, And RS for the pun· ishment, it's been his experience tha t the lay members are ITl(lre h: nienllhon Ihe b.1r commissioners, They have to sce Ihal a Inwyer intended to do hnml before Ihey're willing 10 punish him, he ,~uy~, RcccllLly odded lay member I'nul Huillam, a retired orthodonlhl from Oolhlm, IIgrce5, The lawye~ on his pnnel "were u lillie tougher tha n I WO!, I don'llhink Ihey leI up on Iheir own," Not thllllhe lilYmembers cut the IIccutled hlwyers any shl.ck, Leon Gorrell, a retired assistant sUI>e rilllende nt of Ihe Anniston City Schools, has high expcctlll10ns for Ihe al10meys who aPI>car before his pune!. Mllny oflhem ho... e been accused of neglecting clienl$, "I expect auorneysto be a li Ule more honest and profe55ional." he UYI, Some of Ihe lawyers on his p:lnelare ITl(lfC ~y mpnthelic 10 their peers aellina bosaed down in Iheir easc:lo!lds, GatrCtlsays, bul to him, il'5 no excuse, "If I had per· fonned that WilY M n superintendent, I'd be fired," he says, Bedsole soy. Ihlt the loy members hnve no lrouble recognizing fI "SIKlW job," He rememben fI Cllse ill which the accused lawyer clai med his sexunl proposition to a client- a proposition memorialized on tPpe-WIIS a joke, Before any of the lawyers ... oiced their opinions, the lay member of his panel di5mi5sed the lawyer's claim liS prepoSlerous, '1'hey see Ihmuah the 5cuff as quickly n.~ we do,MUedsole UY5, "We li~ten to them and we give them re~pecl. They are equlIl to anybody on the pnne!."

GllrrellaffimlS that he has been treoled o~ on equ,11 by the lawyers on his panel. '111e auorneys do respecl illYopinion, It seems thm Ihey enjoy my input," he 8ays, "We have not alwaY5 IIgreed, but we've always been able to reach a conclusion." Alteffillie Jim Hayes, Jr., Il Binninatmm financial eonsullllni tlnd vocal propolM!llI of tay involvement in bar discipline, IU15 SlIt on a panel once so flU I10d found it fascinllting, bul "intim:dating from a layman's standpoint." HUyd states thul the bar'l deci~ion to!ldd lay people to its disci plinnry board panels is "commendable," 1-IIIYes believes thaI loy members pre pn important addition to the bar's disciplinary boord, "l./Iwyc-111U'C JUSt thnt- Iawyers," he saYl, "I have lilways5llid that unt il IllY members are involved, there is no credibility In the syslem," Mlilk White, a bar comm issioner nnd II Blmlingham trilll lawyer, asltt.~, " h '5 very, very healthy," he say~, " It aives the genernl public a senJiC thm Ihis is not a proceeding by lawyers, for lawyen," Mayor Sumrall suys she was surprised to lind thnt Ihe lawyer members of her pflJlel have been trul y UJl:leI fit the messes their fellow lawyers get themselves inlo, '1'hey seelll to be renll y fair and undel'SlImdlng," she says, "It bothers them 10 si l Ihere and judge their peel1. II ', not nil black nnd while ,~ II 'S been difficul t for her 10 ~it in jUdg· menl, too, SumrnJl adds, When the disciplinary bonrd disbars lin anomey, it takt'll uway his li velihood, und "that's nOI eilSY," she say•. "II hall given lne insflht into how anyone clln gel inlo trouble," Thill insight is lUI important effect of I~y involvement in the disciplinary~, Bedsole says. "Lay mernbers go home and lell their friends about their experience and Ih.:ll the la wyers ure tryina 10 do lhe riahllhmg, II's bel' ler than IIny advertisement," he $IIy., (The followi na portion of I hi ~ article WIlS wri tten by Ihe AS B Genel'lll Counsel 'I'ony McLllin,) Addition of lay members to the disci plinury board panels has brought (Jllt-rme$! nnd accountabili ty to the disciplinary process, It is imlKlrtu nt thut the IIUbUc 1)t:l'(:elves Inwyers as willing to allow lay l>eople to heM cuses against their own, And, Iny memo bers bring n different l>erspcctl... e 10 the hellrings, Their terms of nccountability are differem frolllthll t of illwyer§, They review Ihe process and the hlwyer's conduct more from n CQllsumer's sllIndpoinl, This IncrcniICd participation by non - Iawye~ In the disci plinury proce.\S has provided an enhanced degree or accounlllbilily to our stnte bur disciplinary proceu, Retired COlonel Hollis DOStOll, who recently resigned his position as 0 Iny member, COfllllltntC(! on his experience: "" ,Ihe bar hal immuni1.ed itself against criticislllthul lnwyers, li ke foxes, shouldn'l auard lhe henhouse alone:' "I learned a lot durinS my lime wilh lIIe l)isciplinl1l')' Board, and left with areDI admil'lltion for your profenion and Ihose who labor in its ... ineyards, Count on me to ~h are this opinion with everyone I know," • 1111

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IRS Regulations Greatly ir!} Minimum DOstribution Rules IRAs and Qu oed Plans In ( I \ /III \ , \ 1/ If..' /I ","/

n Jllnunry 17. 20(H.the IRS issued ne", proposed regulutions

Ih1l\ greatly sim plify the rules governing minimum distribtnions from JRA$ lind qualified retirement plnns. Prop. 'I'rell.' . Reg. 1.401(11)(9)·0 through 1.40 I(a){9)-8; 1.408-8: and 54.4974-2 (JlIllunry 17.200 1).' Not only do the new Ill'OpWeti regulations demysti. fy the liming and &election of II beneficiary (or such . pllll) or account. butlhey also provide for the usc of 1\ new uniron»

Inble for cillcul", j ~ g minimum dislribu· cions Ihlll wlJllIllow 1ICW1InI holden lind

plan pnnicipunlJlIO benefit from generous income Hue defeml fomll~rJy available [0 only II select few part icipants who limn· aged (pri marily through the kindness of rnle) 10 Cjlmllfy under the old "MOm" nile (nO longer II fIiCIOf). This firl icle will sununllriu Ihe new rules 3S they apply 10 defined col1lribu1iC)fl plans (such as profitsharing plans, money purchase pension plun5 aod 401 (k) plans) aod IRA!, fOCU5' ina on the "required bcainning date:' distributions during the p.1nicipant's nfetime, di5tribution~ nfter the participant's dellth, tlesignutetl tleneficiarie~, trusts liS bclleliciurie$, lind the sp<x:illl rules IlpplyIng to spouses as beneficif1l'ieg,

The "Re~ired Beginning Date" The rtquiretl beginning dllte (ROD) is the tlote on which II p.,nicipant in a qualified retireme nt pion or an owner of un IRA (both of whom mily sometimes be refcrred to II~ a "panici pant") is required to begin Ulkinll at h:ust the rcquirctl minimu m di ~tribUlion from the Dccount or plan. The detcmlinntion of this date il nol chnnKed untler the new regulnlions. Por IRA owneB arKi participants in quallIied plans who own more thun S percent of lhe sponsoring employer, !he RBD Is April I of the YClir following the year in which the indiyitlual reaches the age of 70 112. For n pnni t:iplln \ in a qualified plan (but nOllin IRA owner) who dOC:5 nOt own 1II0rt thlln S percent of Ihe gpon· sori ng employer, Ule ROD is the April I following the Intel of th e cillendnr yellt in which the panlcip:uu retires or rellches the age of 70 112,

Distributions During the Participant's Lifetime The so-called "minimum distribution rules" of I.R.C. § 401(a)(9)(A) provide thllt. no later than the panicipnnt's IWD. the panicipant's pilln I:cnefits nnd IRA bIIlonces mUSt be paid in nlump su m or must begin to be p.'id in 8ubsuIrltiaily equal periodic ""yments oyer: II, The life of the J»lnicipnnt: b.The joint lives of the piLl1icipllilt nml II dtsigllmed beneficiary: e. A period not ex tend ing beyond the life expectnncy of the pa-tici pan t: or

d. A period IKH extending beyOntllhe joint nod IlISt sUJ'YiVQl' expecUlnc.y of the p.,r· ticip.,nt nnd n desigll:ued belleficinry. Under the old ~ regu lmlon~, in IIddition to choosing one of thesc periods, II panicipant hnd to choose whether to huye his lifc expectancy I'CCII\culmed tach yeur unrl, if the pHrticipnnt'8 Ilesillllllte(l beneficillf)' wa.~ the panicipllnt'~ spou.'Ie. Whether to have the ~pousc's life expccumcy recillculated each yeur. Thus, the old rulcs produced I bYlaneine structure whereby the calculation method to be used by Iny p.1rtieulat participant varied /lCCOI"ding to the identity and \lge of hill designmed benefieinry 011 his RO~. whllt method he had elected \0 use to detennine his own life ellpcctnncy and th:lt of his NPOUse (if applicable), Ind whether the panicipMt hnd clmnged his designlltcd belICficinry lifter the Rill), 1'lese choices resulted in four possible cornputlltlon methods for a pnnicipunt whose bellefici· /If)' WIIS his spouse. thl"tC possible IIleth· ods for participants with non·spouse ben· eficiaries and twO melhods If the punicipan! had no designated betltflCinry, These myriad choices and thetr various implications were well beyond the uoderslllntlins of ull but the most sophisticuted partici. pautll. not 10 mentiOn tl:dr Ildvisol"ll. The new ntles change significantly the dctenllinmion of minimum req uiretl distributions once II punicipllnt rellches his ROD. As has alwoys been the case, these

minimum required distributions will be determined by diy;dina the panicipant's account balance (reyalued an nually) by a life ellptCtnncy fllctor (th e "diyisor"). Fortunately, the new proposed reguhl' tion~ yieltl but twO Wlly$ of determ ining the a.pproprime divisor, one thut opplies to any panielpllilt whose sole beneficillry Is his spouse who Is more U'II11 ten years younger th:m he is. 3mlthe other (rcferred 10 herein as the "Uniform Thble") to be used by everyone else. Prop. Trells. Rca. t§ 1.401(.)(9)-2, A· I(e); 1.40I(o)(9)·S, A-4.

A. The Unifonn Table 'Ille divisors In the Uniform 11tble rcpre. sem ti1ejoint life expccuUlcy of ~ I'~rtici pant age 70 or older lind n hypotheticlll beneliciary who i~ len years younger than tlx: participant (a table footletly known lIS the Minimum Distribution In: identnl Oenefit [or "MOrn"] rule table and avail· able Oflly 10 particil"'11l1~ who rnlllUl~ to name a yoonger-gellel"lltion benerlCiary plior to their fC<luired beginn 118 MtCS). For a 70-year-old part icipant, the initial divisor under the Unifoml 1bble is 26 (the joint life ellpcctullcy of II 70-ycllr.old lind II 60-year-old). Under the old ruJC-'l, if th is $tunc: 70'yeur-old participant had nmned his same-oge spouse lIS hll bcneficiruy, he woold have had to use their IICtual ..loint life expectfinCy of 19,6, resulting in IlIrger required disuibutions. less income IIIX deferral and, ineYilllbly, Ie.~s Inoney for the particip.1nt's old age, or his heirs. Under the new. ~implifled ru le, nil p.1rticipant~ l[Ulllify for thi ~ favomble treatment, n:suh· ing in longer nmndlllOty pnYOtlts and greater in~"Qme tllX tlererrol. TIllis. the l"IllJllicilIion of the Unironn Thble represents one of the most practical lind tleneficiul chllnges brought by the new proposed regulllIions: A participant will tie IIb1c to selecl his beneficinry bnscd solely on the JleI"5Oll whom he wou ld like 10 receive post-dcllth distribulioDS, 5uch as a life-long spouse or elderly rdltiye, with· OUlthe eoncern thm such a choice will ac«lerute the required tllstributions to the p.~nieil)fUII dtlring life, By the smIle token, II panici putll wishing to nante a charity a.!I his sole bclleficiary may do 80 nnd still take advantage or the Unifonn Thble for lonser-Io.sting lifetime distribution.~. /11/1/1/1\111/\111/11

3 87

B. Much'munger Spouse as Sola Beneficiary If the only de~ignllted beneficiary Is n spou,'iO who is Ir.ore lhlll1 len years younger tlmn the plirticipM[, then the pIIr· ticipnm will be able to usc the 1IC1\J1l1 joinl

life expectaocy of him.'lClf and his spouse (Thblc VI). 1be new proposed ~gulmions Stale Ihm if the pat1ici]XUlt'S 8()ic designat-

ed beneficiary is the pnrticiparu's spouse, for lifetime: d islribtnion s lhe Imtticipanl

rimy usc the longer of the dlsuibulion peri. od lIctcrmincd under the Unlfonn Thbte or

the "joint life expecumcy of the lpartiei.

pant I 000 ~pousc: usins the (participant'sl und spouse's Ii.lIllined L1gcs as of the (parliciplUlI'sl and Ihe spouse'_ birthdays in the distributkm cnlendfil' year." Prop. 1'rens. Reg. § 1.40I(aX9)·.5, A-4(b). The dc\crrniruuion whether Ihe slXluse is lhe sole bcnelicillry will be mndc on II yearby· yeW' ba~is. arKIlhc spouse must be lhe lIOle beneficiary ror the entire distribution calendar yw. Prop. T~as. Rea. I 1.401(aX9)-S, A-4(b). 1be fOCI [hal the dc:tenninatiol1 is mode yenrly typically will be a fnvomble change, in thm it nllows II

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punicip:mt to switch to the mote advanUl' gCOlls joint life l:Xpt(tancy table if he 1I"I1II'ries a younger spouse after lifetime distri· butions hllve begun (mtl~r lIum his desig. nHted beneficiary's having been carved in stone III the ROD. liS under the old mlc$). or course, if th3t nluch younger spouse dies during Ihe pMicipmlt's lifetime. the pru1icipant will have 10 switch back 10 the Uniform Thb1e. a switch thm W()Uld IKM IulVe been required under the old mles, Also, the new rule ew1d be improved by ollowing a change in ~tlllus tllle to the dellth of il spOuse or • tli yort.'e to luke effcct in the (oliowin, year, mther thnn the pMial year in which it ()ccu~. IJecause the di YiSOf is rc:cnlculmed mmulally under either table. regardless of how long the particiPllnl lives, the required min· imum di5tribution~ Wi ll never cause the lIt't:otUI\ to be red uced to zem (assuming positive investment re;ults). Rccnicuiation IIIIIS uVlliinble under the old ru les if clected. but once death 0(;C1..Imd, the life expectancy of the deceased persDll (whether the participant or the spouse) went to :tero. COIlsc:qI~ntly, the rcrhaining pla/l be/lCfit or llCCount b.'llance !lt the Strrvlvor's deDlh hlld to be distributed before Ihe end of the year following the ycar of the lIurviYQl".'l dcmh. This could becostly for n beneflCl· nry whO hllll to rt::port 1111 the income i/l 0IlC year. Under the new ru les. If the pru1icipant dies nner his RBD, the benefits urc distributed oyer tI~ life exptCtuncy of thc designated bcncficinry or, II" there is IlO dcsignm. cd beneficiary, over' tI~ 1'Crt1llining fixedtcml life e:c:pecmncy of the plirtlclpam. If the spousclbcncfiei:lry dies subsequent to the participnnl, the applicable distributioo period becomes the life expectancy of the spouse, determined in the cnlelldllr ye;v of the surviving spouse'. demh, reduced by one each calendnr yeill'.

c. Summary Comparison. New RaquirarnanIB and Penalties for Noncompliance

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'11IC new rules thus climi ame two choices thHtlll)<\l1idpant Mti to muke at his ROD under tile old rules: ( I) the selection of a designated bfneflCinry Illhe'$: life CllpeclDI'IC)' 14-"OOId be ~scd for 0.11 purposes; and (2) the deciSi()llllihcthcr to recalculate the life CllpccllUlC)' oftl~ p:!nicipml1llJldJor the 11lIl1icipant'~ spouse. Hoth choices were

irrevocable unless. after the lIClcctJon was mllde, the paf1icipant chose an older pcrwn as his beneficilU)'. In S\lch I CIl.'lC, the rlCW beneficiary's life expectancy wItS used to shoncn funhcr the lI~ailnble distribution period. Under the new ruJC3, the l)IlI1ieipant must ehoose II beneficiary at his RBD only if he hIlS D. 5POUse more !hllll ten ycat8 younger lUld he wanlS to u~ his lICtual life exlJeCtnncy to IIChicYC II lor.gcr distributiQll period thllJ1 tlull made nvnibblc by the Unifonn 1'~ble, 111c nelll regilimiorls impose II n\:111 burden on IRA sponsors, thm of requiring un IRA ~ponsor to infoml the p.1rticipllnt or beneficiary of the nmount of the required distribution fmnl the IRA. llowever. even though eoch IRA sponsor i~ required to provide this infonnalioo, the panicipnnt mlly take the rt:quircd minimum distribution fmm ony one or more IRAs for which he is II partidpant. In addition, n beneficiary 1$ ullowed to take the required minimum distribution from IUlYof the IRA! c~ated by from the s.an~ decedent, It is hoped thm the s;mp:ilicDtiOrlS lICcomplished by the new proposed regu1ulions will hove the elTl.'Ct of ine~asing partldpants' nbility to comply with the minimum distribution rull:.! with cenainty, especially In light of the stilT penalties for fai lure to comply. A ~()..pelCe nt excise tax i~ imposed on t.he amount of uny n:quimi distribution thm is not IlCIUJlly distributed. 1.R.C.1 4974(1l), However, If the partici])lint dies bcfor¢ Ihe RBI) and there Is 1'1 designmed bcnclicilUj', but the dcsignmed beneficiury fuils to tuke the f't(luired mini· mum distribution in IIny yenr following the year of the participant'~ <kalh. the 50percent penllJty will be wllived if the bencficiary receiyC$ tile entire n:llUI.Ining plnn benefit or i)Ccount balturee befOfC the end of thc firth year following dlc ycur In which the jlnnicipanl died.

Distributions after the Death Ot the Participant One mujor difficult y of the old proposed regUlations was that, whilc postdenth distributions were supposedly oo~ed 011 the life expectancy of the bene-

ficiury, mnny timn the IlCtIlal beneficinries who eventllally inherited retirement plan benefits or lRA~ could not use their life c:xp«t:mcieslO measure required distribUlions bc:CIl~se Ihe dcterminntioo of who wa.~ Ihe p!nicipant'~ "beneficiary" was made allhe ROD. Under the new scheme. required distri butions will be based on the kwal life exptCulIIcies of the ucwal beneficiaries who inherit the plan benefit or IRA. FUrthc:mlOfe, the new proposed regul[l1ions contain on Additional innovation, in thnt, for purposC!I of calcuilltina ninimum distributions. Ihe identity of the actual bc:neficiltfYneed not be determined until December 31 of the yellr following the year In which the pm1ieipillu dies, 1I110wing Aome I)OSI· denth "clelinup" of the decedent 's esuue plan , n,e implicmions orlhls "clelln' up" option Me discussed fU l'thcr in the sec· tions regllroing deslgnllted benclicitlrie~ nlld tr\lsts liS bcncficiuries. below.

A. Death of the Participant before the

RBD With n:!Ipcct to!he plWl benefits lind or II panicipant who did before his RBD. the new rulal vary from !he old proposed regulations in several ways, 1:1jr.;I, as 00I.e<1 above, the designmcd benc:ficillJ')' need '101 be identificd unlil December 3] of Ihe year rol1owi~g the calendar year of lhe p.'1rticipam·s dcnth (sometimes rdemd I RA~

10 herein liS the "Designation Ome"),! Second, as discussed below, the default rule for anon-spouse bcnclicinry is revel'Kd from the old fl\'e-yc:W' distribution rule to the beneficiary" l if~ expectancy (Ir there is II designated beneficiary by the DeslgnutiQll Date). The new rules opernte bMiellily as follows: 1. Single. Non-Spou.. Boneflciary If II panicipam diC!l before rellChina his RO~ lind he has a oon-spouse designmed beneflciary lIS of December 3] of the yeW' following the calelldar year of his death (the Designation Dale). his plnn benefits nnd IRAs must be distnbuted over the dc!l. ignated beneficiary'8 1ife cxpe<:tntICy, dctenninc:d in Ihe year following the year of the purticlpnnt's deliO, nlld red uced by one yCal' for cach yeM t/tercnfter. Distributions must commence no huer th;U1 the eml of the calc~dllr yenr lifter the yeaf of the pm1ieipllnt's demh. P'rOJl. fuM. Reg. f§ 1.401 (aX9}-3; IA01(aX9}-S, A· 5(b). Under the old rulo. the ckfault rule for distributions WIlS the "five-year distri· bution rule," which the designuted benefi· ciary (who must have been delennincd at lhe ROD) could elect 0111 of lind choose inSteild his life expectancy. 1l'IC new pr0posed regulations rcvene the defa ult rule to be the dc:siglUltcd benerlCiary's ]ife expcctJll"IC)'. which will apply unless the desiglUlted beneficiary thoolic.~ instead the five-year rule or unlCS!i there is r10 designnted bc:nelicinry.

2. Spouse as

Beneficiary

If the !IOle designated bcm:fieiary is the participnnt's ~pouse. the distributions do not hove to commence untillhe panic;' pHnt would have reached ggt 70 In. Prop. TrcIU. Reg. 11.401(a)(9)-3, A-3(b). Once distribUlions commence to I!. SUfviving spouse. they can be mllde over the $ pousc'~ life eltptCtancy. re-detennined each year. Once the spouse dies, the npplicnble distribution period is the spouse 'I lire expectancy In the enlendar yeur of his denth, reduced by olle each year, Prop. TreIlS. Reg. ( 1.401 (a)(9)·5, A5(c)(2). unlcss the spou$C chooses the five·yenr distribution rule. 3 . Muttlple Individual BenefidariM and the Separate Account Rule

If there !Lrc lIfultiple itldividuflll>cneO· elodes, [IS long liS their respective shnres hove becn divided inlo "separate nccounts" lIS of the Destanntion Dme, the distribution rtlles will llpply to ench nccou nt sepnrntely. If thcir shures lire not divided by the Deslgnlllion I)ate. liS long us they lire ull individullis. then they mll.y either tuke di~ tributions under the five· yeur distribution mle or thc), may use the lire UpeCllUlCY of the oldest of them, beginning no Inler Ihlll1the year follow . ing the calendnr yellr in which the pllrtic. ipant died, This rule npplies even if one of the indivldulI l~ is the participant's survivina spouse. 1>rDp. fullS. Reg. " 1.401(a)(9)-3. A-3(a): 1.401(a)(9)-4. A4(c): 1.40 ](1)(9)-'. A-1. 4. Benefic:Wy Not .... Indfvidu.al or

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N o _ T h o ......_ Rule If there is • sinaiI'! beneficiary and it iJ lUI individual, or if there I\l'C lI1ultiple beneficinr\es whtl do 001 e.~tabti sh sepnmle ftCCOI.II118 by the Designation Dmo and one not

of them is nO( n~ individual, then the pIIr· licil)lUH is l!'Cmed WI huving no deslgllmed beneficiary, If Ih ~ plLl'liclparu doe~ not

huvo n dc~iillmcd benefiel:lI), by the Designlltion DOle, or is lremed as if there weI'C /lOlIe, then the live-year nile Ilpplies, whleh means \hol all bcnefils nUlst be distributed no Imer than the fifth annivclUl')' of the paniclpnnl:l's dale of death. This is the elISe even if one of the bcodiciarie.~ is the pmticipmu'. Ju rviving spouse. Prop. Trcll.~ , RCi.III A01 (aX9).3, A-I (b) &. A2; 1.40 I(aX9)-4. A·3(b). A-4(c): 1.401 (11)(9)-.5. A-.5(c)(3) & A· 7.

B. Participant Dies After the Required Beginning Date If the paniclptlll dies on or .flcr his ROD, Ihe minimum distribution (or the year of death will be Ihe same as Ihe decensed pMticipam would have been required 10 lake (if he had not Illrtllldy done 50). Prop. fu:u, Reg. 11.40 I(u)(9)S. A-4(II)( I). For sub!le(]uem yeurs, the rule~ applicable when the participant dies IIlier Ihe RBI) lire substantially simililf 10 the rul e$ that IIpply when Ihe pllrticiplillI dies before the ROD. exccpt when the panicipar\l dies willK)ut a designmed beneficiary. In such D. CIlSe. the distribu_ tion period is Ihe participanl's remllining life expectancy. determined in the year of

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his death, reduced by one for each year therefilier. Under thc old rules, thi, same clliculation would app ly onl y if Ihe participant 's life expecuncy were not beln, ra:a leuloted each )'elr, I( the participan(~ life expectancy were being recul. culUled , Ihe old rule. required that the life eXllCctnncy of the PM!icl pU1l1 be reduced to l.ero, li nd nil benefil, were required 10 be Pllid 1M by the end Qf the )'cur following the year of the partici. IlUnl '5 deilth.

Designated Beneficiaries A "designhled beneficinry " milS! be an individual. l>mp. Trcas. Reg. I 1.401 (0)(9)-4, A- I. An individulli beneficiury Qr n truSt Ill(IY be trcllled ns n desIsnated bcnefici ~ry irthe truSt meets eertni n n:quirements. Prop. TrelU. Reg, I 1.4{)I (a)(9)-4, A-S, which will be dis· cussed furthcr below. As OQtcd above. if there /art two or more individual beneficl· Nies. onl)' the oldest beneficiary will be: trellted as a designated beneficiary unlcss each benefieifir)' ill entitled to II !lCpanue share or account . Prop. Treus. Reg. f 1.401 (11)(9)·5, A·7(1l)(I). I f there ure multiple beneficlnries, Anyone or which is not un individual. then the I'ftnleipnnt will be treated as not hovlng II des ignnted beneficiary un les.~ the non ·indivld~lal ben. efieillry is enlitled to II scpamle share or a sepMnle accOunt. Prop. TrellS, Reg, I I ,40 1(0)(9)·S, A·7(1)( 1). To be lreated as 1\ designmed beneficiary, nn individual must be designoted under the tenns or the plnn, including an affrnll8tive election by the particiPlmt pUI'SUllrU to the lenns of the plan. Prop. TrellS. Reg, 11.401(11)(9). 4, A· I. 'I'hu ~. 1111 indi~id~ml who becomes entitled to the aecoullt pu~uant to uppllcllble stllte lllw will nOI be: lremed as II designated beneficillI)'. Prop. fu ns. Reg. I 1.401 (1)(9)-4, A · I . Purther, an e.~tm e lila)' nOi be a designnlcd beneficiary. As II result, il nppears that, If the Pllrticipant names his (:5tllte as the beneficilll)'. eYen if an Individual becomes entitled to receive Ihe benefit by the D¢Slgnatlon Date (such liS by the cstate's closing prior to the Designation Dille), thm individuul will nOt be treuted liS a de~ig nllt ed bencficiaI)'. Prop. Treas. Reg. § L40I (a)(9)-4. A-J(a), B~clluse the new rules allow D "c l~an -

up" period up 10 and includin, December 31 of the yeM following lire calendar year of the pnnicipllnt's death. there llPJ>Car to be at least three ways to ensure that an individual. or 11 panicular individual, will be treated as the des ignated bendlciary. Fi~t , if there are mul· tiple beneliciurie., lind one is not an indio vidufll, Such liS II clmritablc orgonizalion, thcn ir the non-quallfying beneficilll)' i5 paid itS portion of the plM benefit or IR A before the Oesigll mion Dnte, thut beneficiary will be disregarded for pur· poses of dclenllining whClher there is II dc~ignuted beneficiary, Scwnd, the clean·up period allows an individual benefidory to discillim benefits prior to the Ocsignution Dllte, the re. b)' call sing himself to be diMregonled for purposes or determining the de~ignllled bcneficilll)' (or bcneficiuries) Illid the ussocimcd clliculmions of life expectuncic.~.

Third, Ihe new proposed regulations ullow the estllblishment of scparate trC(;Qunlll for each benelicinry or group of beneficiaries by the Dcsi,alllion Date. As n result. the fOCI thllt the benefidllI)' of one scpanile account is nOt an individ ual wilt not "frecl the Other !lCparate IIceounts; the individuul bcneficillrics of Ihe remaining sc pomte fIC(Ou nts will be treated ll5 designated beneflclaries. TIle defin ition of sc parate aecoun ts is unchllnged from Ihe carl ier PtOllOsed reguilltion ~. l'mp. Trcas. Rei. 1 1.401 (a)(9)8, A·2 & A-3. However, lhe dille by which such sepamle aceounts must be csulblishcd has ehllnged. Under the old rules, the appliclible dllte was the date of death or the RHO, whichever fint oceurred. The new rules provide that the applicnble dnte, III least in the eise of death before the RIlO, Is the Designmion

Dme. Several expcn commentalon' hnve nOted II possible II nolllllly in the new pr0posed regu lotions if the panici pant's (icnth occurs on or after the rcquircd beginning dille, however. The Immble \0 the new ProllOscd regulation5 ~lIItes thaI the new regulatlons provide "the slime ru l~5 for distributions after the employee's delllh. regnrdless of whether such demh oe<::U!"li before or after" Ihe ROD. The Preamble funher SillIes that "(I If, [IS of Ihe end of the yellr following the year of the em ployee's deuth, Ihe employee hilS more than one designatcd beneficiary and the account or benefit

(until the panicipant would have reachcd age 70 It:!) for required distributions when the paniCil)D.IU diCi before his required beginni ng du te [ellvi n8 benefits to hi5 stlrviving spouse. §401 (a)(9)(b)(iv)(I): Prop. '['rens. Reg. f I .40 1(a)(9)-3, A-3(b): and (d)'i'he surviving spouse', right to roll over 10 his own IRA benefits received as a bendicinry Of Q decellsed ~pou se or to treal the decedent's IRA liS h i ~ OWII . f402(c)(9): § 408(1I)(3)(A) & (8 ): l'rop. Tre:l,s, Reg, f 1.408·8, A·5, Of COUnIC, as IlO4cd above, the IlppliclIdon of IIny of Ihese spednl rules req uires tlml Ihe ~pouse be the ~D lc beneticillry of the [lllrticlpllnl'S benetiu. 'n le Ilpplicabilily of Ihe tirst th ree rules h ilS beell dis· cussed, 1\1 lea!1 10 some eXlent, llbove, The oppon unity ror the spouse to roll over plan benefits or an IRA to his own IRA, which was also available under lhe old ru les, merits discussion here. A ~urvivi n g spouse may hllve Ihe dece(lC:I1I 's pill n benefit Im nsferrcd 10 his own IRA, if pennilled Wider the plan. or may have Ihe deccdent'~ I RA transferred 10 hi! own IRA. Also, the surviving spouse Illny e l«llo hlLve the deeedent '~ IRA treined as his own, If the pllrticipllnt dicd aftcr his ROD, the ILtvivin8 spouse would be required to take Ihe rtq ulred mini mum diSIribution tI~Ltthe deceased pnrticipnll t wou ld hnve ft:edvcd hnd the decedent survived until Ihe end of the calcndnr year in which he died. It aplM:lU'$ thnt if the ItllluYer or election tQ lteat the decedent's IRA 115 the survivi ng spouse's IRA IIIkes plflCe nrler lhe lur· 'living spouse has reached nge 70 In . the surviving SI)()use wOLIId be required 10 In ke II re(lui red minilli um distributlQIl in the yenr in which the rollover or Ihe election wu mude ir it occurred in a year after the year of the: decedenl's deat h. The required minimum dbtribu tion would be based on the distribution th"I wOILid hove been rtquirt'd if the ro llover or Ihe electioll hnd occurred us of the beginning or Ihe cnlendfll' yen r, '['hus, the distribution wOl.lld be bu>c:d on the Uniform Thble, rother th;tn Ihe surviving spouse's life expectancy. detemtined in the yenr in which the rollover election was mode.

372

NOVHMI1£ 1I 1001

Effective Date The new proposed reg ulations ore Sialed 10 be effective for distribul ions in cui· endnr yenrs beginnin8 in 2002, excepl tim! II{ A partidpmus may npply the lIew rules ror eLllendnr years beginning in 2001 , In addition. Q qualified retiremenl Illnn may adopt lin amendmenl 10 apply the new regulmions 10 distributionsln ealendur years beginning In 200 1. However, Annou ncemenl 200 1· 18 nmde clear Ihul A required minimum distribution due before April I. 2001. beCllUse it was the plIrtic:ipant's RI3D, was n n::quired minimum dislributioo ror !he calendar yew 2000, such that it wItS 5Ubject to the old rules. •

Endnotes lh11 old ru18lljOWllnInG I1IQUkeci mlnmum 1I1,lrdlO,/' 1l0I'II _ . , 110 IItODOHd regr.rllJtionI, IUUId July 27, 1981, ...... tmtncIIId on DKtmbtI3(lI997 1Ief..- M\ !hoi; Irbtlt 10 "PIOCIOWd rIQUI.,;cm' .. lrL\eIICIId to irIIIcMsIlhI 2001 I1OPOIId regIM-

2. IN. Itrm WIll coIn«ilJr h'a\olio B (1'0110. lSI!, in Jltr JIIjlUbII.hecllfllc:te 'Unclerllandl~ IhI Now Minimum DllliltllJHDIII Aule.: ThII.l.rI.IIr/ 2001 Arnol";n" !CI IO\lie P!oposed RevU~IOIII,' Marth 18,2001 Ms ChotIO·ll!IIr"'~lonlMtGpic ...,. .. of th .. wr1rrL\O. ....,1abIt on _~ cum 3 III, l _ A. MeulIlIo, IIQ.• .flo', ...:,.,..

o.,lfibW_ 'MIM~ ........ ABA Stcion 01 ~ "'01*1'/, Pt,*18 . , 1,1.I$l Law 12th ~I ~ "'01*1'/ and ('!IUi Plamrng ~, Ptollln8 a TrUlt "'00'8rn.. Ffklav. AIJI1I21. 2001

5. In Idr;hllDll 10 1Irt lout ItIILIIOIY ~, it ~ doIr "'" -.-1Ire II1II1 I11III •• '1ool..\IIC1J9L' MIa. lilt id",ul'" ~riatry """I .,.tlfo/ ...

AIIO, lire JIoltrrnllllLtrOll 01 \111 bllleHc!1I'f IIITLII'/ 1'(11III II!IilIltnt unllLlt

dttlQl'llleci br!trItIlClary \YhO

IlrrJlfUl1 II fDQULlad 10 PIli 1lII0UQIL Jllnlrnum dlal1l· brliiont 10 tIrt InrIt bllnehclil'/ 01 bllll.!rr:itlill

Cyrllhl.lIrn."II, n ~ lM*-illrlIl .......... *"II I_

......,.. "'01""-'-~' a.. PC SIll ........ """ ..... _5 • • c..,.voIIIr" 1A._~"'''ur.rI'''''''''JD

..........

,.., ..

hils not been div ided illlo separate ItCCOUnL. or shares for ellr;h beneficiary, the beneficiary with the shonest life expectanc), is the dcsignated benefir;l· o.ry," suggesting thllt the se paratc accounts detenninmi on is made on the Designation DRCe. without illly rderenr;e to when the pnnir;ipant's dea th occurred , Howeyer, the acuml l:UlguHge of Prop, l'reas. Rcg. §1 .401(a)(9}·8. A· 2(tl) SlllleS thllt 8cpll.rDte IICcounts are aggrcgo tcd "except liS othcrwise pn;w ided in" sub· pllnIgrBph (b), I!.lthough the cited 5UDparngrnph dOCJ not provide any specifi c contrary rule for poil-death dimibution5 where dClI1h occurs after the RO D. Subparagra ph (b) only proYide$ II specif. ic contrary nil e for li fctime required dis· tributions where deat h occ urs before the RUO. It 15 hoped thot, in view of the conflict with tile st:lled intent in the PreullIbl e, the omission of post·death di stributions whei'e death oceun after the RBO was an oversight. and the Service will corteet the mistllke in or pri()r to the finlll regulations. An addi tional problem raised by the new ~ regulations' is this: WhDt i~ the effcct orthe designated beneficia· ry'a death if he surviYe$ the pllrticipunt bu t di Cil before the Designation Date? Under the new role~ us written, it would IIppellr that the beneficil1ry's delll h prior to the Dcslgnlltlon Onte would CI1U t>C him to lose his StlltuS as the desi8 n ~ ted bene· ficiary. In the un likely eYcm that the plan all ows the beneficiary to name his successor beneficiary and he has done so, then the sueccuor beneficiary will be the designated benc:ficiary on the: Deslgn Dtion Dlte. In mOOI cases, howey· er, wilhout proper planning with the participant to address this silul1tion, the ben· eficiary's estlllc will be the recipient, such that the particil>illll hns no designm. ed beneficiary and the liye.year rul e will uppl y. Aa nin, il is hoped that the SerYlce will cO llsidcr comments requestin g that the beneficiary's surviyal until the De!lignlliion Date not be required u a cond itIon of designated beneficiary sla· tus. Of course, iI would appear that the paMicl pant can avoid this pmblem entirely by providing in his beneficiary desig· nati on that ir hI' primary benefi ciary doe.~ not SIII'yiYC umillhe Dcsignml on Dnte, then Hn ahern nte be neficiary is named. It Is hnpcrntiYe that advisors rec· ognize th Is irnportlltlt plllnning opportunity and tllke the initiative tu help their

elienll implement a beneficillry designa· tion that closes this gap created by Ihe new propOSed regulations.

Benefits PalJable to a Trust Under the new pro posed regu lutions, lIS ulldcl' the old, a truSt must slIIisfy four requiremenlJ in order for un indi yid ual beneficiary of the truSt to be trellted 115 a designated beneficinry: ( I) The tMt must be a YlItid troll or would be II Yalld trost undu statl: la .... ir it had a corpus; (2) the beneficiarie, or the truSt entitled to the plan benefit Of IRA must be ident ifiable: (3) the trust must be irreyocable or, by its temlS, will becoll1e Irre'lOCllble nt the pMicipflnr's delith: lind (4) ce rtain documentlllion requiremerlls must be su t· isfi ed. Prop. Treas. Reg. 11.40 l(a)(9)·4, A-S & A-6.' These docu mentation requirements Benemll y req uire thm the p4I1icipant or trostee must furnish to the plan IIdmini~trntor or IRA troStee, cuStQdilln or bsuer by the Designation Date either II copy of the truSt instroment or a list of beneficiaries. incl ud ing contin gent and re mainder beneficiaries, and the con· dit lo ns of their ellliile ment. Prop, TrtM. Reg.§1. 401 (a)(9)-4, A· 6(b); Prol). Treas. Rcg. §1.408·8, A- I(b). Also, the pllftici. pllllt or tro stee must ce rt if), thm the JiSt is co mpl ete lind agree to furni sh a cop)' of the troSt instroment if requested. Bccause. under the new regulations, the identit y of the des ignated beneficiary is releY/1I1I for purposes of detenn ining the required minimum di stribution at the panicipan!'s RHO onl), when the deslg. nmed bencficiary i ~ a spouse who is len yenl'll ),oun ger thlln th e pnrtici pant. typi. call )' th ese four requirements nnd the docum cnt ution rcq~ ireme n ts nced not be met umilthe De.\ignntion Onte. Howeyer. if the pIlrIicipan t wanuto take ad'lllntnge of 1\ much.younger spouse's Ilctual life expectancy under 11tble VI to calcu ll1te his required minimum di stributions duro ing life, these docunlentatioo requIre· ments must be 5IIti5fiooat Ihc: RHO. If th e trost bgtcell1Cnt i5 nmended after the RIlD, a cop)' of th e ame ndment or /I cor· rected ee r1ilkution must be rum is hed to the pion admin istNltor within U r'Cuson· able time, A SllrYiY ing 8pouSC whu is u beneficiary of a tm~t will be trented as the pllnicipant's sole benefi ci nry only If

the entire requIred mininlu m distribution that is made duri ng c:nch calendar yCllJ' during Ihe surviving spouse's lifetime ia required to be redi5lribu:ed to the surv iy· ing spouse. With respect to bencfits pa),able to truSt~, the new regulntions contain seyer· III improyements oyer the old role.~. For eXlIm ple, the new regulmiulls con tuin modest clarl ficat lolls of the definition of "t!'\l st bencficillfY" und iTllproye the gu id. IlOCI: regarding whIch contingen t benefi· cinries ma), be disreanrdro. Prop. Treus. Reg. 11.401 (a)(9)-5. A· 7(b) & (c)( I), 11lcy also confi rm that tCS tllll1e nlary troslS can meet the requ irements of the truSt mlu. Prop. Trea.'l. Reg. § 1.40 I(11)(9)-.5, A· 7(c)(3). EX(I.mplcs 2 & 3; Prellillble, ''TnISI us lleneficiary." The opponunit)' under the new 11rQpo~ed regul ations to "cleun up" benefici· aries or pllln benefits or lRAs prior 10 the Dcsignuti on Dute a l ~o u llow.~ tho curi ng of deficienl trosts. Fo r eAample. non indiyidullI beneficiarie~ cnn be "remoyed" from eonsidcrntion if the ir shares are callable of being distribu ted prior 10 the l)esignltion Dote.

Special Rules for the Surviving Spouse. Including Spousal Rollovers Although nn ex haustive discus~ ion of the special ro les olTcctin, the sUfYiying spouse or an 1»Ir1 icilllint i~ be),ond the $COpe or this tlM icle, In gCllerol, there Me fQur un ique provisio ns that ma)' nppl y when the Pltnici plllll'S survlY ing spouse i ~ ntlmed a.~ the beneficiary: (a)1'he calculat ion or lifetime required distributiOM u.~ing the actual joint life eXJlCCtaoc), of Ihe panicipant and a 5pouloC mOte Ibnn ten )'ears yoonger than the pMicipanl. Prop. Treas. Reg. 1 1.401 (a)(9) •.5, A-4(b): (b)The culcu ll11 lon of tlte su rvivi ng ~pouse's life eX ]lCcllncy by lInnulIl recal cu lation duriugl he su rviving spouse'5 relllain inglire and fixed tenll life expectanc) thereafter: (e) 1be JlOSlponcd eom:ncnee ment dille 1111

IHIIII

IIUIIN

The Rules

Do Apply to Me

Tit/I lime of )'twr is tilt e.rtreml'/y "/lll/limb/e ,i",e for I/Util'/ltl/fl/S "II/r (I drll8. (lica/wl or f/eprts.r/oll II/IICS!. Ills II/SO II Illff/clIll lime for Ihe 1H!(Jpl~ who Im'l! /1111111. I rtu;eiwulliris ~'/(}ry itt Ihe lI1aillht! Qllrer I/IIY. I 11'(1$ rt!lIIim/(ui (l8(1ill of lire lucreflivld iml}(ICI (1l/iSe III/relIt!

Irm'fJ.

Oil 1111 /mlJily

member!.

Wl'ell mles mY! pfttm ol'erll'ludlUf!l/ by the illcrt!lUed alcolroilise (IIII/r he aim celebr(l/jOIl! /Iull co;',cide wilh litl! limt of yeor: 711t: I1' IQI'('I! (Jill! 's wtllbelng is ii/emily IId,1 ill SIISIJerrst: (IS fhey pomkr: II IYJ flrtf)' dril'iflg'! Is Sllli saft!? I hopl! /10 0/11/ .fUS him 1/1111 14'(1),. 11011' m/lch h9S he 11(111 /0 drink? Will/,e or she fiji" (he nay agalll ? Is IllIlff! (111)' IIIOIIQ It/l'! I'll IN! rtally quitt so we '/0 110/ lit/I'(' u fig/II. Am/so all. If mre of these Illnesses i.r prrSt/lf In your fim,ily, Illtn you knoll' M'hllllllm 1(llklng (Iixm l. You 11M aI/too (I»'llrr o/fht Illcrtllud (In.~ltt)' (11111 p(wle 111m IICCOI"IHIII1 the holitJ(ly StliSOIl, I tnCO/U'(lge yo" 10 rrmtmbu Ihat thtfff il htlp. (/f/(/ 111I!rt! ;S (I .wlllilim. It CflI/ b#' ujo)'Q/U IllIlt, C(III AUP lor )'Ou lIIul )'our 100't'd (}/It. - Jt(lfIne MIJrle uslle. (IirrclOr, Allllxlfll/l UIII')'r!f

Ass/.flmICt PmSrtJlIJ

his holidllY scllson. I'll spend lime wilh my frnnily, the people whom I love and love me in return. I hove 80 much to be snudul ror loooy. [ hove n good relmio nship with my wife ond my children, I know ['m Ulllking 0 difference in Iheir lives. I didn'llllwllYs have lhal. Above all, I nUl grateful to be sober. for wilhout thllt. 1I0ne or the resl could be possible, Ii waSII'1 alwllYS thp t way for me, In JIII1Uary 1981 , I knew I hlld :t drinking problem. I hnd just received al)UI. and sPCI1l the night In Ihe exeeutivc suite of the city jlli!. "1cre WitS nddilionlll evidence of Illy problem, in fnet. II mounll1ln evidence Ihm I hud previously ignored. which crushed me with the undel'!otllnding thm I had 10 'Iuit drinking, I swan: I would never drink IIgain, or course, rnan· juana hnd never cllUsed me any problems and I 5IlW no rellS(IliO IIUil thm, I took the Ixlf eXlm for the.second time in f'ebnlllry 1981, nod p.'\s!icd. I f"liled the fi~t time lx'ClIUSC I WIL~ hung OVCT and high 1111 !l1ll.'C dUy$, For !lie 5C.'Cond bar cxum, [ quit 5moking mruijuuJ1u for II week und gOl plen. ty of rest. lind 11).tqed with nyi ng 00100. I opened my law pnlCticc 115 It sole praclitioner [n June 1981 , and I piclUrW myself as an outia", at law, a rebel with somcthinllto ptQw; in criminal coun, tak· ini eriminalappointmcnts. I did well in coun, bulthe constant lIlarijuana smoking 511ppcd me of my energy. IInd!IQ I didn'l get many ullpointments becausc I wus 100 lazy to Bhow up for IIrrujgnmenL~, I sturled drinking oglli n, for no apparem /'Cason except thm I needod the action. I rcnmined lazy, and the lack of bu ~i l1CS.~ caught up to me in February 1984. 1

closed I11y prilCtia::. and stuncd &<ling 10 /1,/1, meelings 10 get sober, This lime I Stopped marijullna 1\S well. II worked, J followed Ihe niles, I gOl n sponsor, tlliked In mcctings lind worked the stcps. In six munth$ 1 got ujob with (I judge in n different dty II! his luw elerk. arK! u yenr IUler gOi ajob with Ihe sime. J kept 80in8 10 mcetings, and I got monie([ , I got bored with the job, and took artOther where J would be pniCticillg law. /l,llhiJ lime. I hnd three ye.1r,s' MJbm:t)'. but I kellL &<ling 10 mettings, My wife and I had a SOli, and three years later II d1ughter, At some point I lost interest in All. and quit goi ng 10 mecti ngs, but hnd IH) problem sluying ~r, 'nU!n I begun 10 get bored with my job, lllld I felt tropped. [n 1993, with over nine yciIJ'S of sobricI)" I dc.:(;idtd Ihul I could smoke mnrijualllland COl/troll!, I smoked one joint. Ilnd wilhin the hour [

had purchnscd II whole bag. and wilhi n a week J was ~mok i ng every dlY. I stnrled drinking aguin, qui t my job lind opened II prnttice again as a !\Ole pructilioner. 1 was 011 the rood 10 cOl11lllete destruction iUld didn't even know il. I managed to hide nly drinking and drugging from Illy wife for m.1lly month!, but within the year, I had mllllllgcd 10 completely de~tf'OY my relationShip with her and my pm\:nls, I wai well on the wily to deMf'Oying my relulionship wilh my children. On Vulcnti nc's Ouy 1995, rny wife J::llve me un ultimatum 10 quit drinking find get ltC1Hment or move OUI of Ihi: hoose, I mode Ihe only chOice an lIddicl could make. r moved 01.11. huo II trailer pMk on Ihe outskirts of lOWII. I didn·tlosl thou&IJ. 1 wourxl LIP in a trcatmel1l cel11er dim:lcd by on IllruQing woman. It was IiQneslllnd confrontational. My wife and I &01 back IOSCtbcr and worked through our II1l1ny problems. Today. with six YClirs' .sobriety, I lUll n lull'llY lInd well rnllnnccxl individual. Professiollally. I'm Illore successfulthrul ever before, lind I'm a good hLlsrnmd :md flll her, TIICSe blessings corne directly from God. whom I found in the rooms of All.. and frorn the reali7.111ioo ofth/l:C fundamental facts aboul nly life. I run never drink successfully: one drink or drug will lead 10 certWn disa.\tcr, All of the rules 31lPly 10 me: ru les arc guidc~1li to Ulocn· tered life. not chai ns of authority, FinDlly, 1 know that when I need some ~Ion, [ can always choose to go 10 II meeling or talk uoonl it Wilh Hl10ther alcoholic: liS 5()011 115 I've talked abeul it, the desire for aclion is gone. replaced by gnlli1ude fer my life aoo the people in it. • 1/III/I"I\lIII"I/H

373

Understanding Title in /II UUII/I"" /( I/I/!/)()\ ,,",11111 \ (./,1) (/11/ \

itle InslirtIflcc:, (Of most Al3b,1mians, is one of the numerous documents that swirl ~ around the table during a resi· dentin] closing. At the time it only IIPPC:llrs to be pan of Ihe lillmy of ree~ paid und signuturcs requi red at a closing, which just servcs \0 kn ot up Ihe emotions of both tht ~cllc r and purchaser. Once the closing is completed. the pm1ies pllrt wnY$ lind likcly plm with the fleeting though t of title in ~urunce, until it is nceded nnd/or disputed, and Lhen title insurance is lnvalu-

able not only financia lly btu for peace of mind. 1'he purpOSe of Ihi~

aniele is \wo fold; first an overview of Ihe com ponents and nlC:chunics involved wi th title insurance. followed by tn analysis

of A llIbmnu's newly cnltCtro "Alnbllma Title Insurnnce A ct."

Why Buy Title Insurance? Introduction to Title Insurance

Ti!lc Insurance scems to be OtIC of chose liulc unclcn;!ood. bm rt(luired. itcms shown on lhe II UD· 1 for the purchllse or refinnncc or renl propcny. For II one·!ime premium. lenders nnd owncn clln purchllSC: II til[e insurance policy which will PfOt1:(;1 IIIWlly~

374

NOVP.MU611. 1001

IIgainst ll number of problems. Most lellden requ.re 0 [ender's title policy. which docs not necessarily protect 3n owner. An owner Cln [lurcho.sc his own policy for lin ndditiooal premium, which will offer [lro!cccion for his bencfit usuall y bllsed on the owner's equity in Ihe lnnd. Title insurance is a contract between lhe inSli ref Ilnd lhe insured, nnd is ordinnrily [JU rch:~seti in the eOll1eXI of II !rnnsfer of lin interest in rt nl propc.ny. In the typicnl real Utllte: trunSIlC· tion , whether purchllsc or rtfinan<:e, II scllICh of lIIe land records is conducted to d!:tennioe ownershi p of the IlInd to be insured, I1lI well as recorded cncumbrances such IlJ liells. judgments, restric tion., etlSemen l~, etc. Arter the $Cllrch has teen complet. ed, typicall y II commitment is issued. The commitment tells the lerld!:r and owner. if owner's title insurnllce is being purchased, Ihlll the title Insurtr will Il.gree 10 insure the lund under the cir· CUIIl$tll nces outlil1ed in the commitment. n lere ure al1umbcr of pollcy tyf)CS issued by tille insurers, soch os leuse hold. mi neral. oil & aIlS. !lnd the: m05r widely known, owner', rInd lender's. The ritle policy is mnde up of Ihree PIlns: rhe pre· primed policy jacket, which CQntulns i n~ lIrin8 provisions, the Exclusions from

Covemge lind the Conditions and Stipulations: Schedule A, which contains the na me of lhe inSU!l:(1. the lindt of liability, the dme of Ihe policy, the descri ption of the Iflnd, find the nmure of interest held by the Insured (It is similar to a casualty Insurance dcd aJ'l\' tions page): and Schedule n, which contllins exceptions from covemge which are peculil\t to the pllrticulllr IlInd insured. 1llc contmet of title insuJ'l\llce is II contract of Indemnity agllinst actual monetary loss sustained (See Condition lind Slipulo.liOfl 7), which means Ihlll if Ihe title of the land il not as insured and the insured suffer.; a Jrn;$ , thell the illsurcr pays that 1rn;5. Title Insurunee insures against pMt risks which ute known and knowable, un~ike casuldty illsumnce which insures ogain$! future risk. A title policy incul'i a one·tlme premium, rather than an an nual premium like 0 casualty policy.

The Policy A. Schedules A and B The title policy, like the cOJluliitmem, has a number of parts: Ihe pre-prinledjackel, which contai ns a 1)()1icy number, the insuring provisions, the Exclusions from Covel11se, nnd the ConditiOflS and Stipulations. The pre· printed jflCkeL 15 HIl American Land Title AS$QCi:l\ion fonn and is idenlical for each ti tle insurer. Schedule A. whieh is what would be cal1ed the dec· Il1l11t;on5 page in a casualty context, names the insured, dille of policy, limit of liability amOunt, and dcscrilld the ~1nd inSUred. Schedule 8 eontl1iml the individual e)l:cluslons which IIpply 5pccilicnlly tOt he land described in Schedu le A. Schedules A lind a lire customized for 1\ p..miculBr piece of land.

B. Insuring Provisions

The Commitment The commitmenL is Lhe insurer's ngreeme ntto IM um Lhe title SO long ItS certllin condi tions arc mel, TIle comnlitmcnl hll5 a nu mber of pan$: lhe cover Shcel, Schedule A. and Schedules 8 J lind 02. TIle condi t ion.~ undcr which lhe insurer will issue otitic policy nrc contnined in the Schedules and typically include requirements of wlIlT1mty deed; payment and rcle/ISC of prior mongage5: 5Iltisfaction and rele~ of judgments; etc, The schedules In the commitnlent ul50 contain information ~boLJt thuse recorded mOILer which ~rrect the land nnd were discovered durhlg the tit le search. such as IlIliity easements. restrictive covenants, etc. These ore uSLJally considcred e)l:eepl ion~ nnd thus nOt covered by the policy. Once L1 closing rms occurred, nil condi tions eontnlned in the commitment have been met, Bnd the premium paid, the title pol. icy is issued.

The owner's policy jflCkcL contains four insuring provisions: The insured owns the described land (Provision I); then: are no def~u, liens or encurntmlnCCS thlll the insurer has not lold the Insured ubout (Provision 2): title is marketable (Provision 3): and the insured h". leaal right of access (Provision 4). The lender's policy adds four more insurin; pmvbions dealing with priority (Provision 6) nnd enforceability (Provision 5) of lhe insured lien: n,slanmem of the in~ ured lien (Provision 8); and mecha nic's lien issues (Provision 7).

c. Exclusions from Coverage Pol1owin1lthe insuring provisions are the exclusions which arc cont nined in four numbered paragraphs. These exclusions state Ihal Ihe insurer will not pay for loss or dlUtlllge, costs, attomeys' fees, or expenses lIrising frorn enurllCNltcd Items such

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as ~.oning (BlIcI, I(a)] and locallllw enfo~foentlExel. I(b)] or cminent domnin (Exel. 2). Other pnrngrnphs exclude liability for dcfects, liens, cnculllbmnees or other mullel"!! which hnve been created, suffC:l"(d, assumed or IIgreed \0 by Ihe insured claimant or those mn nen koown to the insured, not known to the compa· ny, not of recold nnd nOl di5,.lo"lcd to the company prior to the is~un ncc of lhe policy, Exclusion 4 dcals with bankruptcy issuell which affect title such as preferential transfers rth cl. 4(b)].

D. Conditions and Stipulations The last part of the policy jacket contains Ihe Conditions and StipuIOlions. These describe Ihe obli g~t ions on ooth the insure r lind the Insured The Condltion$ and Stipulations Illso define important lenm lind contml the conduct of a c1l1im. One of the lIl().Gt importont seclions of the C&S is the defini· tions section, This scction definCll "insured," '·knowledge," or "known;· "Ialld," "public records," and ''umno.rkembility'' among others, Usually "illsured" means the named insured in Schedule A. However, an Insured alsu incl udes those elltities to which an RS.'JiglUnellt hilS been made lind those who take title by operntiOn of law such 115 lin heir or deviscc (C&S I(a); oot sec l..llw)'t:rs Tillt! III$Ur(lIIct! CorpomliOIl I', C{It!· /jl1k, 4.5 f,3d 426 (I ?9.5)I, "Knowledge" nlellns lIetu lII knowledge, mther than constructive knowledge IC.t:S I(e)], "Land" IC&S I (d)] means the lnnd described in Schedule A nnd docs nOt Include !lny land outside of thm description, ··Unmarketnbitity" of title IC&S 1(,)] essentially means thm there is some deftct in title, not previously known or disclosed. which would allow n eomfllet Ilul'Chnser 10 resci nd or revoke the eontrue\. It docs nOt mean Ihat the policy 8uurnntees thall an insured can ~lIland !It the insured's asking price:. Another impoMll1ll part of Ihe Condi tio1l5 lind Sllptll lll io n~ involves notice to the insurer of II elnim [C&S 31. The require. ment8 SCt forth ~alC: specifieall y that notice must be prompt and in writing when 1111 inSllred clnimnnt learns of a defect in title or there is litigotlol1 filed. 11\18 ftllow~ the Com puny to muke II cov· emge determination in a limely milliner. In cose of litigation involving the Insured land [see 4(a)l, if notice Is not prompt, there is 0. relil dflnger Ilml eovenige will be jeopMdized if there has been prej udi~e to the Company by the insured's fuUure to notify timd y. An insured eRnnot sit 011 his rights under the poli. cy. lose his case tn court, und Ihen expect tht title insurer to come to his rescue. Panljl"oIph 4 describes the defense of claims and the dut y of the insured claimant 10 coopertlte with the Company. In the event an insured is sued, the Company will provide II defense for the insured for only those clillms which IU'C covered uoder Lhe policy. For C)lllmple. while 0 ti tle insurer may provide: 0. defense ngaill~t a elllim or cll5Cnlcm rights RilSCrtcd by 1111 o.djllCcm Iruwowncr, it mny not neces~ly defend the Insured agai nst cluirns of harussnw:nt, inlcntion inniction of cmotiooal distreSS, swlking, misdemeanor threlll~ of bodily harm, slander, and the like, 'rolU are nOl OOvcmJ i tellt~ under IltitJc policy. If the title Iss tie can be sepamted in Ule COIlICllI of the titisution, IIlitle insul"I!r will ordinarily elect to do so. 378

NOVBMlll!R 2001

l'he policy allows an insurer an option of bringing suit to ti tle as inNumJ liS in the ense of Hecess [C&S 4(b)]. Typical cases include access mallei'll, lack of pri ~rity, boundary disputes Rnd casements. 1bc insured hll5 II du ty 10 eooperute with the insul"I!r and /lSsist the Company in the prosecution or defcnse of the case [C&C 4(d)l. Thi ~ dillY (lin mean that the insured mily hnve to provide a deposition to linother pany or to the title insurer. provide eopies of all documents relating to the dispute in his possession; or do ~ny other ac\ which the insurer deem! in the be.~t intcl"I!st of the handling of the claim. Anothcr provision of whleh lin Insured ~hO\lld be IIware Is cOntllined in Pnmgmph 9(e). This pllnlgmph eliminmes !lobility to the inBured for lo~s or dlllllnge voluntllrily aS~lImed by Ihe insured claimant without the prior written conscft! of the Company. Another 5ignificaru section involves the option of the insufCr 10 plly or stttle in a variety of ways (C&S 6). For example, the CompMY ean lender policy limits (C&S 6(4)]; or it can Kttle wilh the competing claimlllll in order to eSll1blish litle liS insured IC&S 6<b) ]; or it can concede the loss to Ihe insured (C&S 6(b) (iii)! and pay the diminUlion in val ue lu described In 7(a)(iii)l, usullll y ancr Iln llpprnisal is made. e.~tabli~h

Claims The vast majority of cloirns mllde are against residential prop. eny, mther than eommercilll, Illid typically involvc unpuidlunreIcascd prior mortgagcs, boundary line disputes, cnemuchment!Cllscment issues, and, increasingly, bllnkruptcy problCIns. A typical cluim illvcstigation includes I litle exam, review of the lonn dcx:umcnts, review of the closi ng file, lind discussion with the agent, approved IIttorney andlor insured claimttnt. Ouee the coveru.ge decision has been made, most inSllrer§ comm unicate the decisions to the insured in writ ing, citing the applicable policy provisions if IIlIbility IS denied, The policy provides a number of ways 10 §cltle claims (C&S 7 and 8]. The insurer cart ]Iay policy limits '0 the insured Pt any lime. 'I'his is limited by the exislenee or li'ignlion in which B company has already aeeeptcd tender of defense, Under m05t circumstances, payment of policy limits and termin~tion or involvement in liligntion i~ not an option. The insurer eun (lIsa pay IIny third pany ill order to cstablish title a5 inJured. A title insurer Clm also concede the defect and pay the imure<lthe diminution in v"lue as de.'lCribed in C&S 7(1I.)(ii) or reach some compromise with II third party. Thcre :Ire oceaslolt~ in which un insurer will iitigllte:an issue to its conclusion on behalf of the insured, ItS pem1itted by 4(c), AdminiStflltively, COSIS lind expenses incurred do not affect the limit of liability lIS shown on Schedule A ]C&S 7(bXil)l. Once II loss has been pIIid, the policy is usually endorsed 10 show the reduetion in the limit or Ii:lbilhy [C&S 10 lind 12(a)[. If policy 1imitlillre pnid, tbe policy is canceled, and fut ure elaims will not be covered [C&S 6(a)],

It i~ important to note thut when there are both owner's and lender', policies. most losses lire pllid to the lender on behalr or the owner. unless the lender wllives the pllyment in writing.

A. Recovery of Loss Once lin insurer IS involved. the possible IiOUfCes of recovery nnalyzed Ilnd eVlllulited. Recovery sources typieillly include the policy issuing agent, the apllrQved IInomey. the contractor lind the grantor under warmnty theories, An insurer Clln pursue recove ry under Its l ubroglltion rights conrerred by C&S I J. TIte recovery process is sometimes protrnctcd nnd cnn lllke yeurs to recover losses which hllve been Imld. TIlere nre nmny instnnces in which the covcfllge oO'orded by the title policy clln Huve the duy. For eXlimple. the policy Iypicully proteels ugnhlst forgeries Of unk nown heirs in the chain of title. 'Ii tle Illsurers hOlidic humJrcds of clnims llllnulIlly. lit n cost of hundreds of thousnl1ds of dollurs. for I08~ which lII'C covered under the po1i:y. This IIrticle is n brief guide to the title in~u rn n ce policy nnd is not a complete discussion of ull policy provisions and is nOI to be used 0 subSlitute for n rc::tdina of the issued policy, or applicable ease low.

1lI'C

Who is Affected?

Title Insurers and Agents The Title ACI ~resse5 the resulation of bolh title insurers lIId title agents who are engllged in Ihe business of providing title insurnnce. The 'Ii tle Act defines D title insurer M "jal company organized under the laws of this stbtC or Iicens..-d in this ilate for the purpose of transllCting tIS insurer Ihe bminess of title illsurnnce, liS defined in f 27-5-10, COile oj A/alHIIIUI 1975, Ind any foreign or IIlien title insurer licensed 10 be engaged in !his state in the btlsinen of title Insurance." S. I1 . 246. 200 1 Leg .. (AlII. 2001). Furthermore. the Title Act defines II title Igent as "[lIlny person who is lIuthorized in writing hy II title insurer to perform the following: (II) ~o li c lt title inSlirance business; (b) collect premiums: (e) delennine insurability in aeeordnnce with underwri ting rules. 8 taudard~. and ~ lJ ide lines prescribed by the Iltle Insurer: lind (d) issue title insui"dnce commitnlenlS, policies or endorsements of Ihe title Insurer. The lefm 'title agent' does not Include the officers or employees of a title inslu路er." S.O. 246, 200 1 Leg .. (Ala. 200 1). Funhennore, the Tille Act narrows the scope of title age nlS by requiring thllt the Ilgent either be a domiciliary or a resident of

Analysis of the 2001

Alabama Title Insurance Act Introduction The first title inSliranee company WIIS foml(~d in Pennsylvania in 18SJ, lind since thlll time it has evolved lind deveiaped into It nnlionwide induwy. D. nar/oll' Burkt, Jr., Law of '!jtle Insurance, 1:2 (2 ed.. Little Drow n & COntptlny 1993). Over the past decade and a hal( stllte governments ha ve 8Oughtto regu路 Ime Ihis essential industry in order to prov ide stability and orgAnizlllion and to Ilrolecllhelr citizenry. On October I, 200 1 Alabnmll joined 41 OIher stlltes In reguluting its ti tle insurance indUStry with the Aillbllntil '11tle Insurance Act (hereinafter "Tille Act"). S.U. 246. 2!Xl I Leg.. (AlII. 2001). The $ulle of Ailioomn lind long recognized title insurance us II fonn of insurlince, liS Indicated by defining it in prior in~uruncc sectiOnS of the Alobnma Code. '''11tle Insurl1ncc' i~ Insurancc of owners of propeny, Of others having an intcrest therein or liens or enCIJIlIbrnnces therein ogainst los5 by cncumbrnnce. or defective titles, or invalidity or IIdVCfSC eluim to titlc." AI(I. Coile f 27-5-10 (1975). liowever. the intent of Alabllmu's !lew Title ACI is to c1eurly define and regulate Ihl" roundational indu5lry:

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Alabama. The TItle Act provides that a title insutDnce policy in Atabllmu "5hall not be issued by any pcrgOli or agent unlcss the person or agent issuing a title insurunce policy Is domiciled In or i5 otherwi5C a boml fide resident of and resides within this state or is a punnershil). lissocintion. eorponu ion. or other legal entity properly or&lIoized or u isting under the laws of Ihis stale." S.O. 246, 2001 Leg., (Ala. 2001).1k apparent rea5Qn for requiring n title IIgent 10 be u dOllliciliury or bonn tide resident of Alabarnll i~ so the Stllte of AMnullu moy reguillte the profession. clearl y have jllrisdietion oyer nlly violalOllllnd ellrorGe the upplieable sections of this Tille Act.

insurer. must either IIpproYe or disllpprove or tt.e r:nes. If the Insurance comrl1 is~ ioncr d isl. pprove~ the file rutes, the commissioner shall provide written ootificotlon to the title insurer and provide II heari ng within 30 days ullOn written reques t by the tille Insurer. The Title Act gmms the inNUTllnCe cornmissione( the power to cxamlne witnesscs and require the production of documents relevllnt to Ihe mle inqui ry either upon reque~t of the commissioner or the title insurer, S. B. 246, 2001 Leg .. (Ala. 2001). Thus, the thmst of the premium filing tDlC i,to prohibit chl1rging a mtc thot is more, or less, than thc mte filcd by the title insurer with the illsurMlce commissiorlcr.

Duties for Title Insurers and J\tents

C.1he Notice of Availability of Owner's Coverage

A. Certificate of Authority Alublllllll'S I'IeW Title insunmce Act places du ties and respon, sibilities both upon Ihc title insurers and the title agcnts. For Alabama litle insurers the new act provides tWO prerequb'itc:s be:fore the title insurer ma y allow one of its IIgents to issue II ti tle insunmce policy. Seetioll 4(b) of the 'Ii tle Aet r.:qui res litle insurellio obtain "II certificate of authority from the linsurunceJ comlllissioner," 5,0 . 246, 200 1 Leg .. (A la. 200 1). This Ccnificme or Authority is for cach individu!t1title nsent, However. it is the duty of the title Insurer agency to acquire a Certificate or Amhority for ellch member of thm agency who is !luth ori;~ed by tbe titlc insurer to sign eornmitrne1ll5, policiCli und endol'!lf!ments, 1lIe Certificate of Au thori ty must be reissued ann ually Ht a C()lt of $50 10 the title insurer.

B. Filing Rates with Commissioner AB a condition precedent, § 6 of the TItle Act re<luircs a tille Insurer to file with the itlsururlCe commissioner II schedule of pre, mium tDtes priOr to engaging in the: busines~ of tille insuntllCC. Section 3(6) defines premi um us "Iflces clmrged for IIssuming lill· bility and risk under II. title insuruncc policy. For the purpose or this 3Ct, 'premium'shall include any ornollnl retained by or paid to an lIgent under all ngreement betwecn the ogent ond the title insurance comp:K1)'." S.I1. 246, 200 1 Leg.. (Ala, 20(1). HoweYer, the: Title Act further define.'l premiums lIS I1Qt includin8: expe llSe~ for the perfomutnce or scrvi ee~ such lIS abstracting, scarching ond examinin8 titles or ubtllining II title opinion:

fee. for docurnent preporat ion;

(I ) the uddrtss or Icgal desc ription of the property:

(2) a disclosure thaI owner's title insurunce may be: aVlliioble in lIecordance with the underwriting guidelines of the title Insurer lind the premium therefore: (3) a space 10 indicate the desire of the purchaser to either ae(luire or dccline owner's title insurance: (4) the dute the notice Is executed by the purchnser: and (5) the signmufe of the purehllScr or pllrthusers. S.B, 246, 200 1 Leg.. (AlII. 2001). If the litle Insurnnce 8gcnt fllils to secure the NOlice of Avuilability of the owner's covernge, signed by tile purchu.o;er 81 the closing, the title insurance ogcnt may cure this omiuion lit any time aft er the closing of the sellJc ment: however, this CUtDtive remedy m llSI be done "prior to aCInal Of coustructive notice of a claim or possible claim "gll.instthe tille of the real estme." S.O. 246, 2001 Leg .. (AlII. 200 1).

fees for handling escrows, selliemenls or closlng5:

D. Title Search

fecs incurred to cllre dc(cct$ln the title: and

In addi tion, AJabmnl1's new TItle Act requires th m a litle eXlImination/sclirch or the real property records be: dooe prior to D title insurer/agent i~ 5uing II "prelimillllf)' repon, commitment. bindcr, policy ur contrllet of title insurnnce." S.O, 246, 2001 Leg .. (Ala. 2(0 1). Specifically, the title insumnce IItt requires thlll the titlc insurer/lIgcll1 perfonn IIny of the following:

fees incident to the issua nce of II commitment to insure title or title insurance policy, including, bllt not limitoo to, the eost or rci nsumnee. S.O. 246, 200 1 Leg.. (AID, 200 1). Furthennorc, the '[''hIe Act prohibits negotintion or bidding of the Ilremiulll nne to be charged fOr 0 policy insuring an Interest in property in Alabamll. Finllily. the insul'atlCe COmmi5sioner, within 60 dUys of receipt of the premluill flIte tiled by the title 3 78

l'ttf'S\lant to § 7 of the TItle Act, either during or before the closing of 5Clllement lind disbursement of lilly funds. I title Insurnnce agcnt must obtwn a stmetnent in writing from the: purchaser "l1cknowledging thlltthe purclllt.l;Cr has received a nOlice thut owner's title insunl.rlCe may be oYlliloblc 10 the purchaser in nccordance with the underwriting guidelines of the title insurer and that the purthllscr does or does not desire 10 ptlrchase owner's l n ~ur ancc covernge." S. I1. 246, 2001 Leg.. (Ala. 2(01). This wrillcn notice of aVllilability ofthc owncr'ltitle i n~rnnce must include:

NOVBM 8 8 R 200 1

(I) cOlldllCt li !;Curth or e.1.mninlllion of title; (2) obtllin all "bstrncl of til Ie: and (3) obtllin 1111 opinion of title,

S.I1. 246, 2001 Lea., (Ala. 2(0 1). The Act further defines coch one of these individual prerequisites to issuing a title policy. 'l1tle scllf\';h/titlc c)l:l!.minltion is defined liS "!u l seurch of the records in the offICe of lhe judge of probate in the county where the real property is Si1Ufltcd through such period of lime as is IICCeptllble to the title insurer. TIK)Ugh oftcn litig.1ted, the Title ACl's definition of 'records' 115 only title rerords in the office of the judge of prob.1te, und Il()t the Circuil Court records, i ~ consistent wilh current Alabama elise law," 51'1' U,JlOlt v. /IIi.r:ri$siPIJi V/lfll!)l7ill~ hu. Co.. 469 So. 2d 543, 557 (Ala. 19115); l>arbr I'. lVall'J. 614 So. 2d 975. 976 (AlII. 1993). AblitrnclS lire defined by the '1111c Act itS, "!a! compilation or sunllntlry of all instruments of public record of whlltever kind or llilture which In uny manner uffC(;t Ihle 10 u specified pm'Cel orrelll property." S.B. 246. 2001 Leg .. (AIIl. 200 I). The TIllc Act dcfi nes opinion of thle IlS, "la] written cxpression of the SI.1\uS of ti l Ie bllscd UPQn :111 cXlIlllination by all .1\lonl!!}' lit law. who is licellscd to pmclice law Inlh i.~ SUitt to IIsccnllin the history und pI'Csenl condition of title" S.B. 246, 200 I Leg., (Ala. 2(.() 1). l1Iu.~. Ihe l 1tle Act definitively SClll fonh thllt the title insurel/ugent must eomplete one of the llbove·mcntjoned prcrcqui ~ite ncts prior 10 i~suing nny type of preliminl'1/')' documemmion on the real property In question.

E. Time Rec,lirement for Issuance of Policies [n an attempt 10 provide Ii b~k~t op from forgotten or ornitled tille insuronce C(lmmitmcnts, in which premiums were collccted for the title insunlllce policy, • 4(c) of the Title Act provides that within 60 daYIi from the effective dille of the policy fI. title policy shllll be is~ued. Or in the case of a title insunlllce com· milllient hllving IIhwdy been i~sucd. within 60 dllYs uner the Sllti~ftlClion of all requiremcnts and eOrldition8 sel OUt In the 1W0mmitll1ent ." S.O, 246, 200 I Leg .. (Ala. 200 I), The effective date of the l)()licy. tinder Ihe Title ACI 6(l-dIlY requirement. is the "dote lind time the instnltnetll convty ina thc imerest to be insured is recorded," An exception 10 the Title ACI'$ 6O-day requirement . whic h uhinllltcly mOOl5 Ihe requirement. is whcn the I>roposcd tille i~sured subsequentl y fC{llIests II polilWY lifter the i~strumellt hns been recorded in the Prubnle tl1le records.

Enforceability of the Act The Title Act grants to the insurance commissioner the ability to cnfon:e the dut ies lind/or requirements or the ACI. Punhermore, the 'ntle Act provides the i ns ur~nce commissioner, upon the Cllllse shown. the authority to penaliZe title in$uret'$ or agents for failure to follow the ACI. These penliltics include rev· OI;lItion of Cenificale of Authority of a title agent. revocation of the license issued 10 the title insurer. o.nd fines ranging from $500, for nch v[olntion. up 10 but not exceeding $5.000 for willfu!and intentionll! deviation front the premium filed nliCS. Included within these monetary penalties is a st8lement thaI no title Insurer shall ply directl y or indirectly any portion of the fine im posed on liny Ilgent of.he litle insurer. S.I1. 246. 2001

Leg.. (AIIl. 200 I). The appal'Cnt intention of thl~ requirement is \0 prevent n title IIgent from negligentl y or willfully disregarding the requirements of the 'Title Ael nt the dire<:.ion or order of its employer, Ihe litle insurer, Finally, the TItle Ac. opress!y miles ,hllt "ltJhis Bet ... does not crell.e IIny priVilleCaU$e of aclion or other priva.e leglll recoUNt," S.lt 246, 200 1 Leg.. (Ala. 200 1).

Conclusion

Alabama's first enacted regulation of the lille Insurance indusshould be commended as an nffinllmive step by the State to provide guideliuCJ lind relluin:mcllt.S of this foundati onnlllnd necessary industry. Though the Act places restrictive requirenlCntS on 'hose directl y involved with Ihle insur.lnce in Ihis stute, residentillt relluiremenlll for thle ngents und un Al~bnmll State IJnr mlmissions for ullonl ey~ i~suing title opinions. the beneficl .ries of the req uirements or Ihe ']jtle ACI will be the corlll\\ereial corponl1ions and citizens of AI"ballla, 'nle residential requ irenlCIU for litle IIgents in AIHbllnl:l should hllve Ihe intended effect of guarnmecing to Alabanm purchascrs thllL their agent is sinau~1rly fami liar with Aillbumlilitie insunlllce laws. Furthermore, ~I {lte rcgu lnlion of the ti.le insul1Itlce industry will relSsurc multiSlate commereial real c.~t ute ventures of some Itability in a previously unrcgutlllcd prnt.ice, th u~ , it is hoped, providing 0. more fcnile ground fOf commercial dcvelopment. FilUllly. the requirement of notice of availability of the prior owner's title insur.mce covel1lge mtly cducme lind notify Alabama ptJl'(hascrS of Ihis type of fundamental propert y insumnce, Truly, if effeclively implemented. the Alabamli TIlle Insurance ACI will serve '0 ben(fit Alabamn llllonleys and their client$, • try

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CL I ENTS

How to Recognize and Protect Intellectual Property III "I \ \/11/1/ III

~II

vcr the years. I huve mel wilh mllny prospective: clients

regarding theit inu:llcclUlll property Imd how beSt to protcct it. I'lrom large companies. \0 individuol (livenIQrs lind (mists. 10 the anOMley, who Rdv isc them, I hltve frequeml y encountered mistnken betids 8$ to whllt is protcctablc as intellectual property. how iI should be protected. and how \0 (wold infringing on nnothc:r's intellectual property. We live in n competitive world Illid IlKlSI new businesses fnil. To s~. a busiJ1e55 fl\U!>1 have II competitive odvantasc. 1b obIain 1\ competitive advllmagc. II busillCS.$ must CVII]ullle its prodtIClS and serviccs und talc steps \0 protect ony vnlunblc inlcllccILm1 property. AB ottorneys, we must nssisl our diems in protecting their intelÂˇ kc tlllli property to , ive them thiJ competitive ad ...."l1lage. So what is intellectual properly, or " [P"1 Simply 8tllled, il i ~ the rnlil of Ihe mind. [t is the crcotivc ideas, thc know-how, the swell! of the brow thlll gives you r client II competitive edge. [p begi ns with an idea, on idea for a business. II benef product, 0 book, II S()ng, It $Olution to It problem. BUI an idea, without more, is 1101 protccwble, A bluincss must hlke ~I ep~ 10 Implement its idea lind then Hike steps 10 protect il. As the idea takes form, the businc$8 will develop IP suitable for prulcclion. BIl1 how best 10 protecl 11)1 Should It eQUlpany publicly disclose its novel nilln ufacturing process in exchange for a palenl monopoly havi ns limited dunnion. or keep Ihe procen a trnde secret and thereby have an indefinite mooopoly1 1f the company doe~ not ha ve the re5{)urccs to protect all of its IP, whlll should it prutect1 Wh m take~ priority'! Where should it Sllu1? These ure all good (]uestions. The IInswers begi n with lin introduction 10 the principal (omu of IP. While IP can be owned by lill types of entities, I will frequently refer to Iho intc ilectliltl properly owner ill thi ~ 1Ir1 1clc as II "compatly" for convenience.

Trademarks, Service Marks and Trade Names service nwrk is any wonI, name, symbol, logo, to indicate a company as the source. of il8 goods or serviL'C.IlInd to identify lind distinguish its goods or serviCC$ from Ihose of others. A Inldc millie b the name used to identify the COIlIP.'Uiy. A trudc name owy !lbo Serve as:\ trademark or service mark. Trndcnull'ks, ~rvice rn.vks and trade names used as Irlidcnmrks or service mork~ lire collectively referred to liS "marks." A company's I11Mks lire typicnll y the primllry mel1J\S by which its CustOIllC:D Msociate its goods lind serviCCll: with the compMy. For a new company, a name, logo or slogan clIn be e~Senti allO tho growth necelsary to surv ive lind nourish. Successful companies typically have llCcullllllaled ~ubstllntj a l customer goodwill, which ellSures rtpelll business. Usually, that goodwill is reflecttd in lhe val ue of the companies' identifying marks. EXllmplc.~ A trndcmark

(I'

Of other device I$XI

380

NOYti MII RR lOOI

1101

rio<

of ~ uccessfu llllafks are PEPSI , FORD and IBM â&#x20AC;˘ Whether yOUf client is beginning 0 new btlsi~s$ or eJlpanding it.~ current business, thei r murks need to be carefull y selected lind protectcd be<:nuse these mMks are the must imponont link to their customers. Conlrnry to popular belief, registering a corporate nume with the Seeretary of SllIle does nOl give II eompony the righl 10 use Ihe registered nllllle liS II murk. Precious cllpllal resources eun be wllsted If money is spent ndvtnising u mark, onl y to fi nd later the same rllark i~ ulrewy the property of unother. TmdCnlllrk uvailablljty searches lire the best way to minimize this risk. Amle<i with the results of \I tmdelllllrk availability Seltl'(:h lind lin opinioo from IP counsel, a CQmpany can make 1111 lnronned deci$ion whether to ndopt a mark. Once 11 company hns adopted U nlllrk, protc<:tion of the nlurk through stille lind fedenil reg istrtulons clln give lis busines~ Ihe freedom to grow. In ()((\e, to mllintuin II competitive lKIvllnlage. the compMy must protect and enforce its rights in thc:se valuable inlllngible USSCIS. If pmperly proux:tcd lind muintllined, these mllrks c!tn be owned indcfinitely, HOwever. if Ihe comllllny does not actively pmtcct it.~ marks, it may lose the eltelusive right to tho$e marks. A U'Ildemark owner should seriously oonsider a lrademark watch service, Il~ well ns a prognnn of cOl1lllctlng potentiul infringers, to clIsure the vullie of Its mmk.q Is protC<:ted.

Patents u.s. pmcm IIIW ree01; ni1.es three types of plltents: utility, design und ]lImn p.1lents, A utili ty pntent may be obtained by unyone who invents or discovers uny new and usefulpl'OQ:$S, machine. IIrlicle of mnnufacture, or cumposilion of muller, or nny new lind useful improvement Ihereof. II dc.~ij)n Pl,tent mllY be oblulncd by anyone who invents mlY new, original lllld omnm~nt DI dc,,;ign for an lII1icle of manufllCture. Basicall y, II utili ty p..'!tcnt protc<:u the functional features of an invention, and II dc.~isn pllent protectS the orname ntal (i.e. nonfllnctionlll) features of lin invention. II pillflt pllleni mllY be ootlilnOO by IInyOlte who invents or discovers and asexually fCproduees uny di~Inct and new variety of planl. Once In inventiOlI is realil_cd or begins to tnke form. the comp.'!ny's nge nt and/or inventor(s) should meet with II regi~tcrc:d palent anomey (Le. an 1I11omey who is registered to pl'Ik::lice before the U.S. Plllent & Trndcmark Office) 110 thai the attorney ean ew.iuate the invention and advise the clienl whether the Inve mion nmy be plilentllble mid cdllcn\e the client lI\)out the patenting process. U.S. ]llllcnt lllw includes Sirict time periods in which eenlli n llCIions must be tukcn to llvoid losing the right to obuUn II putent. l>rior to filin g a patent applklliion, It is Iypicully ~dvi sllble to llerf0l'1l1 11 novchy se"l'(:h in which the l'nlcilt Office's rceord~ are searched tor "prior DI'I" tlwI is rdated to the invention. The results or the IlOvdty Karch should be cvalullted by II palent II1\0ntey to delennine whether the invention has inlpol'lant fCII-

tures thut clln be distinguished from thc prior an . Based on the plltent o!tomey's opinion. the company can mllke an informcd decision whether the $Cope of pntent protection potentillily uvaitablc is worth the cosu nSlIOCillted with preparing. filing lind prosecutina II plltelll appliclltion. To obtain a patent on an invention, a putent application must be submitted to the U.S. Patent & 1'rndellIark Office. TI1C uppli· cation IIIUSt meet strict requirements Ilnd should properly capture the idea embcdied in the Invention. 11lc fonn and skill with which the tljJplicllIion is drnned li nd prosecutcd in the Patent Office can dramatically IIffect the scope of patent protection thut llIay be obtained. 8y hiring II sl:illed putent IIl1omey, inventors and their organizations can obtain the broadest possible protection Ilvailablc for their i n ve nt ion ~, Throua h the pal: nting process, a limited mOllopoly for II fi xed lime period mlly be anll1ted in exch:mge for publicly disclosing the details of the inve ntio n. Upon arll nt of a patent, the pll1em owner hM the ris ht to exclude othen; from making. u ~ing, sell· lng, ofre rin g for 811.1 e, or importing the putented invention. These righ ts e{m be crit iculto the success of II Comp:my. particularly if the eOml)Uny Is engllHed In a very cornpetitivc industry.

Copyrights u.s. copyright Iflw recogni1.tS protection (or ori&imtl works of authon;hlp fixed in IUly tfll1Hlble medium of expres.~ion from which the works eM be perceived, reprodu<.'Cd or otherwise l."OlIInll.lnicat· ed, either directly or with the aid of IIl11achine or device. Works of lIuthQrs,hip include: lilcrnry works: IIHlSicnl W(loIi{s: dr".unatic works; pnntomimes and c~mphic worb; pictorial. gral)hic alwl Stulpturnl worb: lIIotion picHU"e.' and other lIudiovisual works: 500nd n:oordings; and IU"Chitcctural works. Examples of works of IIllthor· ilhip W"C computer !iOflWW"C, book~, son"... poems. photographs, video recontings. atlYt:I1iscmel1lli, and company brochures. Under CUl'n:nl law. copyri ght protection automncically attaches to the work wllcthtr or not the copyright owner registers the work with the U.S. Copyright Office. Ilowever. registratiOn pr0vides cenain beneli t~ and is a prerequisite for filing suit and fC(;Overina 8tallliOry damages or attorney fees for copyright infringemcnt. l)ecllu$C copyright registration is relntively inexpensive. it ill ad viSible to reaister Ilny work Ih nt may be of value, Subje<:tto cel1l1i" lill1 i Ulti on.~. the owner Qf a copyrightoo work hus the exclusive right.~ to reproduce the wor". prepare derivati ve work~ bm,ed upon (he work, distribute cupi e!> of the work to the public. displ,LY the work publiCly. lind perfom\ the work publicly.

Trade Secrets A trude secret illcludes proprietary informlltion th llt has eCQnomic volue to u c()mpany and iN not gcnerully known or relldil y ascertainable b), others who could obtuin economic vlllue from the Informm ion. Tlade secre15 can be preJlerved indefinitely 50 long as reasonable efforts are taken to protect their secre<:)'. EXlLmples of infOf"llllion that may be protectable tIS tmde secrets lire client n'ts, son drink formulas and mamlfacturi ng processes. A famous example of a successfull y maintai llCd trade secret is the formula for the COCA-COLA1 M 80ft drink. All companies sltooJd consult their IP cou n~ 1 regarding the gafegUl1r(b that are ulIPrullriute for the cOlllpalliC5 to pmlect their trode secrets.

Trade Dress Trude dre.~s is u form of tnidelllllfk protection which protects the al)pellJ'llnce or "look" or Il product. A product's trade dreN5 is the overall image presented to consumers. Ilnd may include features such (IS size, ShlLl>C, color, textu re, gNlI)hics. aad various combinations thereof. Trade dress protection is typically associated with product confi guration or product p:w:kagiag, but trode dress protection hll5 also been extended to protect such things as advertising 5trutegiel and restau rant layool$.

Computer-Related IP IP llbounds today in computer sonwure lind hardware. For computer sonwllre ellll be proleeted undel copyrii/lt, patent and trnde secretillwi. Since today'. technolosies have made du pJicuting softwtl/"C and hardwllre designs easy lind inexpensive, 111king Ste l'~ to llrotect dHhts in computer.rclutcd IP is paramount to protecting 11 cOlllpany'S IISsets. ~Llmple,

Internet-Related IP The Internet poses increased COl1lplellit), for procfCtion issues ror all t)'I>tS of Ill. A vlrtunl potJlourrl of IP rights Me cmOOdicd In Internet sites. Ml su pProl)ri~t ion of tradelllnrks. copyrighted images lind patcnted processes is IIlmost CQmmonpl:ICe todll),. Whcthcr the misappropriation is innocent or willful. legal StCJlll should be tll"en to proteCt lP accessible throUgh the Internet. COII/ill/lt(l olI fXlgt: 383

Are your

communications secure? Don't let your confidential Of j)foprietary irlfOfTTlalion be atolen. Your private conyerutiona ~ be monlOfed In a

numbot of waY': • • • • •

telephonea telephone lin.. .-.dlo frtquency transmittefl power line tran.millionl hard wired microphone.

SpeclaUy '(lIned technician. will UM Itale of Ihi art equipment to perform ea.....sdropplng countermeasure aurveya Ihat wlU allow attomeY' and Ihelr eIIenit the comfort of conducting their bulino.. aff,l,.. In a MQ,Ife enYlronment. Aegis witlldentifot area. 01 vulfleflbillty and develop . tratogl" IOf protecting inform,tlon ,nd technology,

au~

Investigative SeMce. P.O, Box 231120 Montgomery, AL, 36123 Phone: (334) 3~047IFax: (334) 396-2304

////1/ LULUI /11\)/11

3.,

THE In /11 \ 11(111 I

~:~:'::~~;,::::~~;:,:! to ,0 WII!i Ii . I .nona lhe101' trqops.

~;~~~::~~"t:r. ;·tl ':':S:1 1WO days

delenninntion. Like solllCthb)S they were focused on tll" Insk III hand llIsk. ! were less than 100 IJCOPle 10 troop Can)c.,Jl\rough. He . Whe n he/ 8l:ttcd with "Illy we needed 10 SQ to the Hille '~'~"""'oni He wa., ago. They Onl),

welcomed the opportuni.

t)' to get Qut of the office for a li nle while.

''The Hne" or "mobility fine" is the tc nn the Air Force u~ to refer 10 the pro<:css by which we: pl~n:ady to dcpl6y [0 olher IOCDlloru. [t collsisl5 of "s(auolIs" Ulunned by II QU1I\oor of

ugcncicJ-mi lhnry 1':1)'. medic)!!,(lcaul (JAO,:tci'nIUllC 8 few. Military mcmi>trs 5Chc:dlllca 10 deploy al'l:: pfOeef!k'fJ through each ~ullion in order 10 Hike ,clIle.of any III~I Imnulci:lct:lils before deploying, Eliminutini dislmcti01lJ Olfl~h6Olc front

o"t,

wi. you," Hc Sailor's delll)'

Ort

helps the troops focus Ih C llli~n III hllnd. AI [cnst lh:u is wl1m I huvc been lold . lI~d like nro\-9fthi nas in the mili tary,

you really don', bother to question the logic. Hoving been assigned 10 air bases in Euro¢-~hen J -" " 1 active: duly, J hpd worked Dnumber of mobili tY lines. Milsi of the lime it Wll5 for traini ng. Most recently I hud worked the line !II Skyline API) to deploy troops in 5upport of a "pcueekcCI)ing" mission. This .....a~ different. We were responding to an anack on our Country. This wu the reullhin,. Captain Smith kemcd 10 halle II few misgivings ubout send· ing me to work lhe line. Quite llltturnJ1y she WflS concerned 1l00tJ1 1i reservist'llibility ellelitO find the fllcility where Ihe line was loculed. much leSillClually knowing whal to do when I aot there. I IlliSurcd her I had done this many times before. She Knt along Cuptain ' 1'0rllflS for good IllenMIre-a new Cllptain who WIIS probably ill the eighth arade when I worked my fi rsl mobility line. We also took alons II pantlegal. Technical Sergeant Jones, \0 help 01,11. We anivtd early 50 tllm we could 1Ie\ up. OUr ptinUlf)' function was to provide powers-of,ulIomey for service lnembel1l so Ihllt olh· ers oould twncUe dlings for Ihem while they were OWlly. 11tc Air Force has pre-priRted forms fO( everylhin&illUlsinable. rrom pay. ing U\)I,CS to looking afIet dependents. At OUr ~tion. we had a eompolc( lied into the oflice cornpUlcr ncrou the base in order to Recess the "hl~t wiU und testllment" computer llTOgmm. We [ilso had a lillie room thn! we could go in to counsel SOrnc:one in privme. Ironically, we sh~ this room with the Ot.'1plain, Punny how work for Chaplains anti JAGs !lCCms to spike during I crisis. Someone culled oullhn! the lillC wa~ open. 1lle low rumble of voices grew IlC/lJ'Cr. A crowd IIOOn gAthered lit oor slmion: "I need 10 sell my boat"; "I need II. will": "What hllpptn$ if my military pay gets nleWd ~1' We were quickly overwhelmed IIlId I was th!lllkful thaI Cuptain Smith had the r~ighIIO:;end IIddiliOO!\I help. I prep.'lred IX'Wel'll-of·/I l1omey. Technical SergCAtll Jones notarized cverylhing. I hellrd Caplain 1' lOmns in the backaround,

w.,

382

I'JOV8MRI!.R 1001

Who's

in II

there be n mas. . of Vietn um. I wQr· rled centered.

l~~J:~j~~~~~ i

WIl5 stlf· I . I WIl5 ,,~

Ilan of 1\ group Reserve." Most Theyare II specifiC i

. excepl 11"

they nre IIJwlly8

rtSCrvi~t. Ct::;.1~'

; active-d uty RCtive-d uty fortes. only serve a few d/l)'~ II month h yclm, 11l1l1l)' crltlclll I Guurd and of any Reserve such the IIClivmion of many "citl/.cn After gClling back to the buse legnJ office, I imrnedinlely prepared II power-of'lIl1omey for my wife, I wenl down to the uni· form store and ordered nlilne t~gs (name t ug~ I1re the hardesl

thing to get in a hurry). J updated Illy personnel information!iO Ihal the Reserve Commnod could get in touch with me. A dny or two Inter. I went back to my ciYilinn proctice. The thoughts of uniforms and militllry IlIw quIckly gave wily to the pressures of priYllte pructicc. Prom time to time, I ~top lind ponder whot will hnppen if l am called up. I go from wot1')'lng about what will happen to my pnaCtlcc If I have to go. to worryingthm I won't get to participnte in whm may be my gcnerutiQn'$ war. I keep telli ng concerned family lind friends thm it will hllye to get pretty bad before they will need me. Some of our fumily. neighborli, and friends huve olreody gotten the calL As citi1.cn~ nlld htwyerli. we nccd to find ways to help kccp thing~ "quiet on the home front" so thllt OUI' troopS Cjlll focus on their missions. It is quite pos~ible thut hlwyers throughout Alubama will get calls from people in u siwmioll much like the young enlisled tl"Olll J mentioned ubovc. It is possible thm ~rve JAGs may be called up and wllIllCtd help maimllininS lheir practices. l)jcase consider donating n lilllc of your timc to answer questions, prel>at'e lilllpic documents, or cover II coon appeumncc for II colleaguc. If)'ou fla II unique militllJ')' issuc. IIny of the kjal offices located on military install It ions nrc ulwny5 willing to help, Our Nation il cn;ll;cd in a tremendous struggle und we aU need to do what we cun to $CC it through. Finally. if yOll have nOt aln:ady joined Ihe Voluntccr Lawyers PI'()gnl1n.~ plCMe do SO right away. You woo't C'oer rtgrtt geui ni the opportunity 10 help.

dtplelldln Ihls 1m/ell lilt baud QtI a ,rut 111lry. TIlt and pillus 001'11 bun cllanlftdlOPI'OlUI Ukntllitl and ,"lIitllq

..,.", n'11I1S fIIlllU'l

fI~mlloru.

."'1'IIl \VIIi/tltU UtWY'rr ProlrTI," (VfJ') ~,I'" "lIInWle In A'floont(J in 1991. MotMt'lI4/lfT Iltt Iri/fll/)I s"eusf/ul MfJbllt Iklr Au.,.;:iulimr ",Ium,u l.owY<'rt Prolfmm. II pfOl'lIIts II "'ilY for lilW)'t'rt In Alabamn /0 htlp Ihll.. communilitl. AlfomtYs tlll'Oll III 'he prolfrTIllI ~)I ilgl'ttlllg 10 pr(JI'Idt "/, 10 20 Itorlrs. IMr Y<'1lr. ofIttt It&1I1 sen'ict /(> pooreillUrtl of Ai(loolllO. CllSts (lit ,.,jrrrrd 10 II" VU'jrom tJsal Sen'lctl of!ic:"llrollml fir, SIIIlt. flQorr rr!~mll. II,,, (O,'ll art Jerttlltll foil' ",,,,it ,,,,d <;o"'I,lr.firy (tl/f.h CIUt sltlili/d IN rtJnll'llb/1! III 20 /umrl or Ir.\'S) /t",llirl! f}(JMltfjfll eli!!,,/ II IcrtMrd /01' Incrllltl! tllgib/IIIY (mlls/ INl III J25 fHlI'L' tm of PO\'fIrf)·I~I·tl. cII"/'IImly J J. 776 /lIOitiltly,for II hOllse , !rold of/o"r). •

a,,, 80w4 . " HI",,,,,,, NAr

1M 8..... II .. '""""" .... Mr-. CIrfIDIo, AMnIIII. ~ • ~ P't. ill ~ fGW ........... \tII . . J\IGII NMaIt Gtn.1I'I c." HI ...... rM¥ ~ ... Ail r- •• ,.. ~ .. 't!I2l!1i1! " ...... ". .... c;.,.... '"" AroittID Nt .... """ iii " • • _ _ rlN..,..... ~ LafI\ SIMla r-.. tiN AItItIoot

.,..1IIt

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s.. ...

Conti/Uild Imm /Mill 381

International IP Protection

Conclusion

TIle SICPS a company tukulo protect its II' dQmestically will not prote<:t Ihc Jr in foreign cQuntrie.' . However. through nllmeroUs international agreements, U.S. ci tb:en.~ and corpo. mtc entities may obtain legal rights for their Ii> In foreign cou nt rie~ It purity with foreign nationnls. Similnr to U.S, luw, intcrnnt i()null uw~ include strict time periodg In which cenain uctions must be tllken to ayoi(] losi ng III rights.

Whether your client htl! a new prodliCI or manufacturing proceu. ~ clitchy ,10gRn or name for ils products or services. or II erentiYcllcw soflwllrc program. you r client's ability 10 rccojllize il8 III and its willingness 10 dcvelop and protect this valuable propeny could be the key to its prosperity. As Illlor· ncys. we must IIssist 0111' clients in protccting nny aspect of theiT bu~i l1 e'$e.. thatlliyes them a competitive UdYanlllge. After 1111. u ~ucces§ful client i~ n lonll-tenll client. •

Ownership of IP Because: ownership of I1n invention Iypically YeSIS in its inventor(') and ownership of It copyrighttypiclilly vests in its aUlhor(J), every com puny needs to take affinnaliyc Stel)~ to obtllin exclusive rights to these PfOPCl'lles before the propenies ure developed. Transfer of exclusiye ownership to a company is typically nc<:omplished with cmployee "jrecnlClll$ lind work-far-hire lIjrecmcnts, Confidentiality IlgrccmenUlllre 1Il!iO valunble for protccting the company's proprietary information and trade: secrets. The.<;e types of IlgrccnlCnts should be routine if a company has ~mployCd engujed in research lind development or in other cTeative endeIlY0r5. or if the COIllp;lny contracts work oul5ide of Ihe company.

K.nMth M. 8wlll

"'""'" M ...... wilt .. ,... or SIIOIt • ""-tI.'C

\tII .........

s...,.. ..........

IIIicI." ...

IPd .. tr ...... 1IotorI IIIlftItd ~ III,..... .... _ *- .... $fIIIIoII[ t.WooenolW ... ,.,...., IWI J G """ III ~ 01

" ' - SIhIoI tI t-

11I1111/l1\lII,1I111i

383

Notices to Show Cause Notice is hereby given to S tep]ulnl e D. who Ilmc1iced law in Stone MOImtllin,

Unnlt~t

Georgin. and whose whcrc:ltxmls are unknown. llml PUrsUIln! to 1111 Order to Show Cau!</: of lhe Disciplinary Commission of the Alabama Sime Bar. dated Ju ly 10.2001. she has 60 d:lys from

the dme of Ihi~

public~lion

(November IS,

2(01) 10 come inlo compliullcc with the Mandatory Continuing l~8al eduCation require. mcnlS fot 2000. Noncomp1innce with the

MCLE requirements sholl resu h in

II ~uspen~ion

of her license, ICLE No. 01 -41

Notice is hereby given to Wnll er Eu!;cnc

Unl.,;wcll . who I'rIlCliccd Inw in Birmingham. Alabama, and whose whereaboul$ arc unknown, lhal pursunnl to lin OnleT to show cause of lhe Disciplinary Commission of the Alllb:lrllll Slutc Bar. daled Jul y 10. 200 I. he hils 60 days from the dille of this publication (NovenJoor I ~, 200 I) to come into compliance with the Mund:uory Continuing Legal &lucution requiremcm~ for 2000. NOllconlplitlUCC with the MCLE requiremenL~ ~ hnJJ result in l\ suspension of hi5 license. ICLE No. 0 1· 101 Notice is hereby given to 1A'SlIil Sheldon JohnSlOn . who pructiced low In Df1phne, Alnbnma. and who!Oe whereabouts are unlnown. Ihat pursunnl to an order to ~how Cl\use of the Disciplinl\l"y commission of the Alabama Slnte Onr, daled Jul y 10,2001. she has 60 day$ from the date of this publicmion (Nove mber 15. 200 I) to come into cOlllpli /Ulee with the Mandiltory Continuing Legl\1 Education require. mems for 2000. Noncomillillilce with Ihe MCLE TC<luirement!l shall result ill II ~u~ pen~ion of her license. ICLE No. 01·25 J Notice is hereby give n to Michael Clmrlcs J onlnn . who pructiced Inw in Otflninghu.m, Alabama. !\nd whose whereabout:! !ire unknown, thnt PUT5UllIIl to lin order to show CIlUse of the Disciplinnry Commission of the Alab~nul SUIte Oar. dated July 10. 2001. he has 60 days frolll the dllte of this publicfllion (November 15, 2(0 1) to come imo compliance wilh Ihe Mandalory Comilluing Legnl l!ducation req uirements for 2000. NoncompliAnce with the Me tE requiremenl~ shall resul t in a suspension orhi~ license, ICLE No. 01 -261

384

NOVEMII£II

~ O OI

Notice is hereby given to Miclulci No n lUlII Mclnlyte. who prncticed law in Ilinninghalll. Alabmml, and whose whereabouts are unknown. Ihm pursuant to un order to ~how calise of Ihe Disciplinary Commission of the Alubmnn Slate Bur. dmed Jllly 10,2001. he has 60 dilY' from the dale of this pUblication (November IS. 2(01) to corne into compliance with lhe Mund.1lOry Continuing Lcgul Bducmion requirements for 2000. Noneomplinnce with the MCLE ~(Iuire. ments shall ~ult in a suspension of his licensc. ICLP.No. OI-JIj Notice is hereby given to Mury J une Stnnrn rd. who practiced law in Birmin,hull\, Alabama. lind whose whereabout~ arc: unknown. Ihnt pUrllUalll to an order to show causc of the Di!!Ciplinary Commission of the Alnbnma StlUe Bnr. dnted Jllly 10.2001, she hns 60dllYs from the dute of this publle:llion (November 15. 2(01) to cOllie inlo compliance with the Mlll1dlllOry Continuing usnl Educmion requirements for 2000. Noncompliance with the MCLE requircmculS shnll resu lt in 11 slIspcnsion of her Iicen~e . (CLE No. UI-44] Notice i~ hereby aiven to Midmcl Eric "·owler. Jr.. who Ilfllcliced law In !limliHgham. Ahlblllltli. llnd whose whcl'I:ubout.~ lIre unknown. thm pUl"lItlllnt to un order to show CIIU!Oe of the Disciplinary Connl1i~sion of the Alabanla Stllte !lllr. dllted June II . 2001. he has 60 days from the dllte of this publication (Novcmber 15. 200 I) to come inlO (:Orllilliunce wilh thc Client Security Fund assessmcnt requirement for 2001 . Noncompliance wilh the Client Security Fund asses~nl(l nt requirement shllll result in a Sllspension of his license. [CSF No. 01 -4 J Notice is hereby given to MlciUlcl Cltnrlcs Joni:m. who pructkcd law in BimlinghruH. Alab/lma. arid whose whereabouts ute unknown. lhul pUrliuant to 1111 order to ~how cnuse oflhe disciplinnry conlllti ~~ioll of the Alubanm Slnte Bllt, dated 1une II. 200 I, he has 60 days from Ihc date of this publication (November 15.2001 ) to CQrne into comp/iunee with thc Clieltt Security H.IIId usse~~ll1enl te(llIi remell1 for 2001 . Noncon'pliuncc with thc Client Security Fund a.~ses.~menl require· IIlCIII shall result in a ~uspen~iOI1 of his Iicclll>C . ICSF No, 01'()71

Su~ion. Gadsden

1ll101lle), Johll

Ed"'llrd

Cunnlnglmm WM 8unumuily suspended frollIlhe prncIlce of low In the Suite of

Alnoolnn purStiMI to Rule 20(1). Alnb.1nla Rules of Disciplinary Procedure, by orck!r oflOO Dio;ciplinary Commission of the Alnb;mlll Slate Ilnr dilled September 1, 2001. On Mil)' 10. 2001. a lettcr with II copy of II complaint received by Ihe Offi~'C of Genelll! Counsel wns sent ttl Cunningham, lie INns requested to respond within 14 days of the dme of Iha lener, I}c\w«n Jlme 6, 200 1, lUld &ptcmbcr 6, 2001. "nCr no

n:,Qponsc

WIlS

were ~Il!

rcccivtd, three more Icllcl'5 unnll1gJulin by ccniticd

1I\oil. lind two IclcplKlIlC titUS wen.: made 10 Cunninshnm', ollice. Cunninghurn failed or reCused 10 rc.~polld 10 lilly l'OlTt~pondcll(,'C rtlillhl&to the complaint filed wilh the hnr. 'n \erdurc, on September 7,

2001. the Disciplhllry Commission emcted 1111 order unlnlllrily JUsllcndins

Cunningh.1m for his refU'l.11 and/or fail· ure to respond 10' Inwful dcmmld for infonnu.tion from IUl admissions or disci· plinary lIuthorhy. [Rule 2!Xa): ASB Pet. No.OI.()I.5] St.'Oll~ Ullome:y Ellt'ClI

RobInson

Mllkom ww; sunl1J.arily su~pendcd from the pr..ctice of tllw in Alabama on May I, 2001, PUI'!iUl'lnllO Rule 2O(u.) of the Alab.1llla Rules of Discil)llnary Procedure, On Muy 18,2001,:1hearing was held pursuaIU to Malcom's petition \0 di s~lvc Ihe summary suspen~ion. On Mny 22, 2001, the· I) isciplinary Board issllcd ml Older dcnying suid petition, On June 2.5, 200 [, M ~leOJn entered 11 Conditionul Guilty Plel! 10 Charge II. Ru le 8, I(b) of IheAlnbmnn Rules of Profcssionl'll COI\ducl, or Ihe chlU'gCi filed against her O~ Muy 22, 2001, TIICSC chlU'ges were txlSC'd on II complail11 filed wilh lhe Alab.111111 Stale Bar Ilgainst Malcom nlKI M~lrom's 11OI1·re.~ponse 10 the bar concerning th is complaint. On September 10. 2001. the Supreme Court of Ailibumu entcred nn order lIC."CCpling the terms and condilk.ln$ of the Disciplinary Commission's order of July 12, 2000. This onIcr SUSpelKIed Mldcom for a period of 9Od.1YS. btu gave crc:dil for the time she had been ~ummari]y

suspended. 1'he ren.rur,ing 34 dliy& will be held in IlbeylUJCe pending her suc· cessful completion of llWOoyelU' pt'Oba. tionlll)' period, [ASB No. 01'25(A)1 TIle SUpl'Cme Court of AlaOOnUl. Issued

order affinning the lhree.year suspension of formet Birminghanl attorney Scun Edward MeLllughll tl clTcctive May 26. 2001 . Mcl.aughlin reprucnted two clicnts who WCrt lIcil'$ of an c~tDle. TIle ooministrntrix of the c~tDte was rcpre.'lC:nted by counscl. McLuughlin would periodically contact the OJlIlrniing allor· ney's client without her ullomey Of hcr attorncy's knowledge ~U'Ough leucrs he sent 10 the adminlstflutiX . MeLaughlln's leUers were lmprofessional. Mclaughlin would angrily eonfrol1llhe opposing lawyer. elTOncou~ly filed a lis pendens, lind contacted the opposinK Inwycr's clicnl directly. McL.llughlin violmcd ru lc.~ 1.1 [competcnce]. 4.2 ]cornmuni· cation wilh person repn~..;cntcd by coun· !itl] tmd 8.4(&) Imio;.oooouctl of the Allibmnll Ru~ of ProressiOnal Cooduel.(ASB No. 99-IOI(A)] WI

Annisloo attorney Gtl.. l>ath Coke Wil/huns wItS summanly suspended fn'lm the pructicc of 11iW' in Ihe Stille of Alabama pursuanllO Rule 20(4). Alabama Rules of Disciplinary Procedurt, by ordet oflhe DiSCiplinary Commission of lhe AloOOma SIIIIe Hilt effective A\lgu~l 23, 200 1. TIIC onkr of ttlC Disciplinm)' COlllmi~5ion WWJ hao;cd on Il petition filed by Ihe Officc of Gcncrul Counsel evidencing that n COlli' Illuinl hlld been fill'<i againsl Willioms ulleging Ihul Williull1s WIlli held in con· tClllpt of court for failing 10 honor a subpoena Issued by Ihe Alabanm Dcpilr1l1ler\l of Revenue, Dllring tllC investigation of Ihe eomplaim, Willinll1~ fniled to respond to rcIXmcd rcqucSl~ for info""ation fl'Qllllhcl Office of('"ocncrnl COIII1SCI. (Rule 2O(a). I'CI. No. 01 - 141 1l1e Supremc Coort ell:Crcd an order bu..'iCd upon the dcci~ion of Panel I of lite Oi!;Ciplinary Board su.~?Cnding Bcsscmer aUOI'llCy Rill Dil.u:mllC llood from the practice of law in the Slme of Al300ma for a period of9ldays. The Boord suspended lhe imposilion of lhe 91-ooy suspension and placed Hood on prob3lion for II period of two ycnrs, con· ditioned on her SClVing 45 dDyJ of the

91-duy suspension. She WIlS autommical· Iy rtinstmed 10 the proctlce of I;lW upon the expirntion of ttlC 45-ooy sllspension, Other condilions of probation Wert ordered, including, but 1101 limited 10, pnnieipmion illll ntentoring progrnm and a specific prohibition thllt Ita" rnothC'r. I3etty M. llood, I OOI1.tawycr. not. huvc nny involvement with 1·lood's continued Ilntctice of law. In ASB No. ~- 126(A) 11000 oomilled to falling 10 properly supervise her nlOlhcr. Beny M. Hood, a nOll·lnwycr cmployC(l, who 'Nas engag· ing in tilC unmuhori"l.cd prncticc of 1:lw. a violmion of Rule 5.3(11), A. R.I~C. [n ASH No. 99· I37(A), Hood ~drnillcd 10 fuillng 10 properly supcrviNC her mother. II non.luwycr ernpl()yee, who Wl!S engng· ing in the unauthorized pnlclice of law. to fllilllll1 lo diligcntly PUI1UC lhe nrallCI'$ on behalr of lhe client, and to foiling 10 rea.wnnbly commllnicnic widltllC client regarding tlte 5tatu~ of tlte II1~Uel"$.

Public Reprimands Bimlingblml allorney Milt! Rlse.llng AmOS was publicly reprimanded by lhe Disciplinary COfllllli5sion Qf Ihe Alabamll State ]Jllr for fnilina to provide contpetcnt repre.<entlltion 10 Il clien!, willfully nealccting I Icglll mnl· ter entru5ted to hcr. flliling to ade· quulely cOlllmunicate wilh n client. fuiling to make rellsonable effons to expedite litigation consistent with the intere~ts of a client, and making a false StlilCfllcnt of material fact to a Iribunal. violl1tlon~ of nllc8 1.1, 1.3, 1.4(n), 3,2, Ilnd ),3(u)(I), AI:lbnlOll Rules of J'rofcsslolllli Conduct. On Februllry 17. 2000, Amos WII.~ rclllincd 10 represent II clielll in all uncontested divorce. The cJien! paid Amos'~ fcc of $1 79. The clicnt IIltl wit h Alnos agoin on Murth 7. 2000. At thlLltimc. the client [I!lid the filing fee, prov ided II tc!ephone nUlllber for her husband lind signed the divorce documcnts, During this mcel· ina, Amos told tlte elielllthat it would takc silt wcek~ 10 obtain the divorce. The client wailed ~ill. week!; and then cOfllacted Amos's office a number or limes by telephone to Dblnb informa· tion concerning Ihe status of her divorce, Each time she called. Amos', IInswering ml1chine was either OIl! of 1111

111111111

1\111/11

3 ••

Investigative Services For the Leg,,1 Profession

Represent your client with confidence: Products Liability Personal Injury Criminal Defense Witness Interviews Background/Character Investigations Workers Compensation Claim Investigations Expert Witness-Telephone ToN Ana[ysis Asset Identification Video and Stilt Photography Covert Surveillance Operations Computer Based Research

order or full , Eventually, the client cuntocted the JetTerson County Circuit Clerk's Office nnd discoyered tlull her divorce hud not ~ell tiled, 'nlCreltfter, the client med a iriev~llce wil h the Al~b~mll Stllte Bur. On September I. 2000. afler the grievunce WDS filed, Amos filed the divorce. AmO!i'~ IHIS' bund und office nlfln0l;er, DUlln), 1Amos. 1l0larh:cd the cllent'li signature on September 1,2000. ulthough the client actuolly lillned !he dOCumen! on MlU'Cb 7, '2000, when Amos presented Ihe document [0 her ror her signature, IAS B No, 00· 169(A)! Thscurnbia altOIll()' Ould" Y"ctle Orown WM publicly reprinlAlldcd by the Disciplinary COIn:nission of the Alabama Stille Bur for willfully neglcclina a legnl mom:f lind for fUiling to Miequulcl)' commlmicule with II dicm, vloIutions of rules 1.J lmd 1.4(b), respec· lillC'ly. Brown W;l8 relained on July 9. 1997 to represent a client in an action for dIlmllge.~ Te.'iultina from u 1II00or vehicle IlCCldentthat QCCUJTC<I on April 16, 1996. Brown did nUllile the C()mpln.illI in thc case IIllIil April 17, 1998. arter the Slulute of Ilmitmions hlld p.'lSSCd, In Septcmber 1998, the llial coun dis· missed !he COUlI)lrJnt, based upon the stlllutc of Ijmi lmio~s . However, Hrown did not promptly l:otify Ihe client of the coun'l\ order of diJml!!S.1l, which wo..~ ~l~ upon BrQI.\IT\" failure to limely file the OOll1plu.int. [ASH No. 99.oo3(A)J On September 7, 2001, Alubl1~te r hll()rney Rus.""II I,ouls lIubbllrd received 1\ pubJlc reprimund without gcncml publication, in connection with the complaint filed aaainst him on October 4, 2000. [n 1997, while Hubburd WM IIvi~1I in M is~i55ippi,

L:lUnl l'lumphreys swore out n rclony hnl1lssmenl WnfTl\lll nlainst him. After Hubburd reHlmcd to Alllbnmfl , he mcd II I~wsuit un June I I. 1998 ngninst Ms. Hllmllhrey. in the Un.ted Stlltes District Coun for the Northem District of Alab~mD for fli ise UTest. dcfornllIion und ciyil riahls violations. This lawsuit WIlS dismissed Still sponte by the coun for lnck of personal jtlfisdictlon, The case was dismissed " ... without preju. dice to the right of the plaimiff 10 me his ~Ion In an uppropriate Mississippi court," Hubburd Ihen filed thc idclllicill octlon in the Circuit Coun of Shelby County, Alnbmna on Ju ne 16, 1998, Thill coun ul!lO dis· missed the cuse for lack of jurisdic· lion. Hubtmrd $Qugll\ I«()oslderution of the dismissal and nlso nppenled the dismissnl ( 0 the Alnbumll COIU't of Civil Appel,ls, During the pendency of Hubtwd's appeul In the Shelby County case, he tiled liUl! in Dfederal coun in the Stl'l1C of Mississippi. On July 17, 2000. the Shelby County Circuil Courl gr:llucd ~ motion (or sanctions ngnlnst HubbMd in the amount of $6,500. In Its order regarding sanctions, the cour! found Ihat ", . .this civil litigntion which hns been commenced and pursued in this cOlin by Hll bbnrd WIiS frivolous, groundless in fllc t nnd Inw, vexatious, impo~ for un improper purpose, and was without substantial justification. .." A copy "f Ihis order WDS forwankd to the Alnbulllll Stille Bnr. The Discipllnury Commission found 1-I ubbnrd'~ Ilcllons constituted It violation of Rule 3.1 [meritorious claims and contentions) of the Rules of Prufe.~ sionnl Conduci. No prior discipline wos involved or considered. [ASO No. OO·232(A)[ •

Eavesdropping Surveys

YOU DON'T HAVE TO BE. P.O, Box 231 120 Montgomery, AL 36123 Phone: (334) 396-4047 Fax: (33-4) 396-2304

388

r.lOVIlMUIlR 2 00t

The Alabama Lawyer Assistance Program can heiR.. Calls are strictly confidential Phone (334} 834-7576 " [334} 395-0807 [24-hour pager}. Jeanne Marie Leslie, program dinctar

r-----------------------------------~

International Conference on Addictions for Legal Professionals February loa 11, 2002 • Montgomery Civic Center· Montgomery, Atabama

Speakers Include:

Mark Seitter, esq. - Disability Insurance Spedalls, Philadelphia Honorable Charles Hayden·Santa Clara County Municipal Court J. Anthony Mclain, esq. - General Counsel, Alabama State Bar Myer J. Coh,n, esq. - Exerutive Dlll!dor, Aorlda lllwyer Assl~al1(e Program

Robert E. Albury, Jr., esq. - Executive Director, Tennessee Lawyer Assistance Program

ClEApproved lor 12 hours FOR MORE INFORMAllON: (334) 262-<1526

To pre-reglslef, complete and send back till! InfonnaUon requested below. AbnXhure with a «lmplete agenda, costs and addlUonallnformaUon will be malled 10 )'IXI. Name _ _ _ _ _ _ _ _ _ _ _ _ _ ProfesslooalllUf _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Address

City _ _ _ _ _ _ _ _ Stme _ _ Z1p _ _ _ __

Telepllone _ _ _ _ _ _ _ _ _ _ _ _ _ _ [·mal _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ send to: COSA-NCADD, 100 COmmefce SIrett. Suite 800 Montgomery, AL 361 04 • [·mall : csanmdd@bf//SOUIh.ntI

Sponsored by \he Council on Substan<e Abuse-NCADD, In cooperation with the Alabama Stale Bar and Joint sponsors: State of Atabama Administrative OffIce of Courts, tegal Education Division; Alabama DIStrict Attorneys Association; Alabama Defense Lawyers Assodatlm; Alabama Trlallawyeo: Association; Alabama Lawyers Assodallon; Alabama Medical Association; Alabama State Troopers Assodatlon; Alabama Departmetlt 01 Pu~lIc safety; and the Alabama Bureau 0( lnvesligillion.

~-----------------------------------~

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Rill,,: Membon:: Two IrltEllistings 01 50 words or less per bar membor per calendar year EXCEPT 11)1 ·position wanled" or "position o"eloo' listings-$3S per insortion 01 50 words or loSS. $ 50 per additional word; NonmemberJ: $35 per Insertion of 50 words or loss. $.50 per additional word. Classified copy and paymlJlt must bo recaive<! according to the following publishing schedulo: Novamber 2001 issue-doadline Seplember 5. 2001. JantJ3ry 2002 issLl&-Ooadline November 5. 2001 . No deadllno exten· sions Will be made Send classified copy and payment, payable 10 The Alabama lslo\ofOf. to: Alsb8m8lswyBrClassifeds, C/o Shannon Elliott P.O Box 4156. Montgomery. Alabama 36101

Services • ENGtNEERING/CONSTlIucnON EXPERTS: DrIlIM\l8.JlfUCILIIII. ~.IOOI"" eIoctrrcal. poceu cIliImrcIl, EIfSistuct.O), mold end ITIIkkrw. ffJAC; I« tuOtnualllJuso;j, "MInai and cIlBmIcal IICIIIIIM. PlpeIqs. ~ statION. o:mtI8Ic.... buildings. aoo port structll"8S. f'wide e.ql8rt conslnl:tm dBlIIlS alii di$pUte 8MlysiS PTlMOOllOll1llillef ammlUioo 01 5trutllllal bahavio' unr:IIJI' load •. UiJerillnCed \eltifyfnr,j experrs with licensasaOO tUDential' Comoon'/ OO\Ili'I9IIlIrY;! and c0011tlC10I' Ircenses in Alabama an:! LouISl8ll8 Contlrct Hal K. Cal/l, MobIle Phone 13341661-2fai E· IMII ~axn. WeO 111& _htcHI,tm1, • INVESTIGATIONS: The AegIS GrOllP. Inc P«MdM a I~I arr.y 01 irwaltrgalM! SOMceS to include· pl'odutls hablhry. !lAnGIIII injury, cflmlllBl OOlonu. witness intllMlIWS. backgroond/characler. 'NOIkor.· tomPGnsa1ron. ISIiIt identlfil:~tioo, ~idoo!W1d 11111 photllgrap/ly. coven SilfWllionce operations. computllr·b!rwd resGarch. and es.-esdfQllClIng/countermaalure SUIVe'(S. bpert Wltneu in phone loll BI"III\ysII. Contact l/ll Moore al (33413964047 OI/1·mailll L~com • SECURITIES AND TRUST INVESTMENT EXPERT: Tl'I'eIlry-"yt

year.' invel\mllnl oxperrence Fat"", vice-pruidanVllOI110ho nIOn&ger. Chase

Manhall~n.

SvnTrust Bankli, United JIlBOV

Bankl Charl8red financial analvat, Cum InudlJ. Wharton SchOOl. Un!YEusItV 01Ponnsy~anl8 BS Econom!cs Dual major. tconom· in/finance Registered InwSll'I'"IOOtlldYlSOI' Slovon SIOrl\ CFA, PO Box 310151, MIami. fL 3323\ Call 13051374-8493 ('/OIUl (30S) 374·8494 (IexIOf /l-mall Sremllwesfholcom • STATISTICS, OATA ANALYSIS, SOFTWARE EXPERT: Uugatlon IUIlC)OIt 00 malton inYOlvrrY;! e1l81V$11 01 131011.1$ of data and informallon sV$lomB practlCU CUllom prllglBm"lng also a~III I Bb l e. We use tho SAS system and other p100UC1S ConsultDnts With yeels 01 eXp(I!lOfleIln finance. IT\DII\IfllCturmg. phtItrTI6Cautrc.als. travel. credit Call Heidi Mar~OYiu. COP. at (3051 J65.0439 01' VISit our Web IIle _.S~18m.l'.toM, ~ Syslems. 16\ Crillldon BNd. Ste 325. Key Srscayna. R. 33149 • MINING ENGINEERING EXPERTS; Ext1InIiMt OI(jlEll1 WItnesS expo!lll'ClI rn all arlla8 01 milling - lUriete and undIIrgraood m..... coal. Qlllliriot. etc. Accidllnt I!MlSllt!llUon. K1Jur~. Wl'ongful deeth, mine constrUCtion. hallfago/\ndlrY;!. ~ll6I\'lOI\t dISPUIOS. prod~ liability. ITllnetal j)'Of)(lIrty 1T\iII\8geII'I8t. asset eod mlner~ ~alllll fOl' IIState end Ia. purposes Joyce Awxi8tes 15401 91&5727 • DOCUMENT EXAMINER: Examination 01 CIU8$\roned docu· manti Certlhed I~IC handwl'ltlflQ and documoot .~amll\9f Thlrty·lour years' experlllf'lCt in .11 forll1llC document pl'ooloms FOfmDrly. chlel Questionod documtnt analysl. USA Criminal 388

NOVEMBBR 2001

Investlgetloo laboratOnes Oiplomate (cortlll:ldfoABfOE. Mornbef· ASOOE, 1A1. SADFE. NACOl. Resume and fee scheOOle upon feQUest Hans Mayer Gidton. 218 Merr,mont OrM!. Augusla. GA 30901 Phone (70611160-4267 • TRAffiC ACCIOENT RECDNSTRUCnONIS~ thiS If'lllIMer ha, raconst~ed 0YGf 3.000 aa:idants in 13l1alas 00 highways. IlrBllt •. r811roods and highway construction nnes Irwc~lng trucks. ~anl. COfl. PGdcsulens. trains. and farm Implements, Compuler-gellllrated drawings are prepaled ~ iIIusllale his opiflo Hw. Ovor 46 year,' engllletifl/lg experience Registered profesSIOf\allf'l(jlneer 8IId lull board r;erllhclltion b\ ACTAR, Contacl Jom T 8&t... PE. IOII·Ifllli 1tIOO1299·5950 • INSURANCE EXPERT WITNESS: Fee·only Ixpert WillieS, Twenry VlIlIrs' IXpIlIlence in fisk me~llnsurallCil consult· 111\1 Pre·hllng o~aILIDl ioo. deposillon 800 ulal PoliCY eCMIrage. caplives. excosi. deducllblel. self-inSYfonce. 8{lrmcv oparatlons. difett writers. prOj)Orty lou preparation MOOIber S RM.C Contact Oougl3s F MIIIer_ EmploYlfI- Risk Mlnagemetll PI\oI'Ie (:rosI995-0002. BIrmingham or WATS 11KXl1462-S602 HIGHWAY SAfETY AND TRAFFIC ENGINEERING: Highway

safery and traffic englneGflng In tha roadway OfMfonmtll'll, COfI· lUUCllOl1 work loneS. rO&dwlly hazard •• roadSl(le halords. AR grade cro.sings. traffic cOOllols. highway IInginoOring SIIfely Standards, accloont fil'ConSUUCtioo, drl.-el rOllCliOllS and expectalions G.E.lDhr. PE. Box 12339. Charleston. South Carolina. 29422-2339 PIlona 18431795-nlB E,mall 1o.'rIpOrnln.com • FORENSIC DOCUMENT EXAMINATIONS: ~ y&aI1. forllfISIC doi:IJIWIt b:M'llnallOO( 21 \'MIS' to\bl bI!nIic uperief'ce RItr~ad senior doaInentJ exarrnner end dlsClphne c:oordinaltT_ A18bam& Department 01Fnrsnsil: Sciences Monbor. Iluastionod Documenl SoctlOO-Amoricao Academy 01FOI'lJlslC Scioocas: Southeastern Associltlion 01 Forensic Ooc;OOlIlnt Exarrunets. Southam Awxi8lbt of Forensic StienIlSts, Alabema State A$scca1lOl1 of fOl'WlC StIertes (past prBSidantl Coourct Richerd A. 1Io!*, Ph.D" 7!I!i6 VwIrn Roed. '141 _MontgoMery 36116 Phone (334) 260-Z552 Fa.1J341 2fD.7929. E-ma~. 'Jdr<.¥Mllldam • REGISTERED FORESTER: FOrty,ona 'fIIlr.· IIljlEIneoce In PlI· valo. indululal lind fedelel fOl"esl mMagomart end p1DCtk:es. Spociehllng in Ilmbef trespass IWSlu8110ns 8nej IICquilitioo Ollllf81sais Elw(n A SPGnce. Anniston PIlona 12561231-4309 • HANOWRITING EXPERTIFORENSIC DOCUMENT EXAMINER: ABFOE aIftIh.t. ~ 0lIIIf, 0UestI0nId OoM'rants DMsion. US Mrf( CnmrnalllWastlgiltll)l'lleboratory ArroncIn StDetv 01 Questioned OoCI.mtnt Examlnan ArnwIcan Acmnv 01 ftNElllSrc Si:lerq, CMI end O'lmiMI cases IICCOpted fanel1 Shfvef. Sh'rver &

Nelson lb:umontlrMIstlOjiiltlOlllabor~\ofy. 1!1l3 Utac Ridge OrMl. 'v'boIbttd, GA :11189 PImI

t7701S17.(m1 • CONSULTING ENGINEERlEXPERT WITNESS: PrO/OUIONI tnOlnMI Wltll24 yean ol lndusul· al. COI'ISlfuction. seltty, mec~lnetY. end pulp & paper experleocl I am 8 "handS--on" tlflgHl88f

wnh an Ultromely strong mecllDnicllleplltude I 'MIrked alII IlK:hnician and IT1{I(;hanic beforo go nif1ll my dll{lfOB In IIlIQlnaermg. I have luperll Irooblesl\c)ollrlg abi~lin. wnh a thofough l.nowIodge and undefStanding 01 machinery,

Indusillal accltltnlJ, OSHA, bulldlllQ coda •• automobile llCCIoon:s, IlImt II3b1hty and derense Roben T Tolbert, PE Phone !2051856

9922 F&Ii: 12051 BSH3S3 • COURT PSYCHOLOGICAL SERVICES: 912 S AltJ)OtI Road, Jaspet Specllllll,og in aSSMS' ments, child CUSI~, marrill{llt dissoMion, ailollHiIV, geriatric inullS. $(tl'Iirog tefltrlliend IlOfIh· W1ISI Alaba ma For note Inlar mallon please coo· tacl Ron BroV, PhD .. cllnK:a1 ~ilt. Phone 12051 648-9497 Fax IZ05) 648·9:178. IAIII phone 12051276-4685 ~-fl\I11 bray419Oao1.com. AUTO INJURY REVIEW: BoanI-(8rtllied med· ical speciaJislJ in Alabama lor rBYlOW at maGical reconts IIIIIIIIQ 10 motor vehICle ac:trdtnlS

POSITION

For oorendanl. Prompt tum·,lIound Avallilble lor 8Jl1l81t teStuTIOt\y. PhorIa (256) SJ9.1211. Fax 12561529·4007 E'mail II'IImdOIIIw&trllllt.

Do You Hol\C MUrL'

Positions Offered • ATTORNEY POSITIONS (ASSOCIATt- AND PARTNER·LEVEL): Leiding IIlms in AJabama and actOSS the Soulll Mila ImmedlatB openlr.g1 for la...,.,.,.-ers Witt, expeuel'(;8 In IlIloallon, bank· ruplC'/. employment law, u late planniog. or cor· poral8 I IlltnSllC\ions AsI(x;ie18 and partne/· level position, lIViIilable. Allltrqulr;fll'fI striclIy conlidenflBl Ploase contact RldIard G Brock, 8Iq Phon!! (205) B7I·3223 ruI205l871.J224 E·mall. f~ttlCltr:om. • ATTORNEY POSmON: ESl8bhslled A..V.-fated 181110IIII OOloose Irtl!llltron firm With oIfrCOl in TeAM. Florida Mod l.oo,SIMa his immediate oponlngSfor an OOlty level eSSOC18!8 &rid Dssocl· 8\0 WI!h lWO 10 Ioor roal$ 8Xj)(1rlonco In hi Gulf 9/l)jllelPensac~8, Florida ollico Entry·lovel mOCla!8 myst be 11can5ed In Florida or sll for the Floflda Bar In 2001 Expefienced Bssociate must be licensed in AJaIIarnIr Wlth Florrda 8af IIC8fliI a pllJ$. Berth ~trons raq,rifa Itrong ICI!' cIemrc rllCOfds. axcellant Wlltl/'O, computar end OfQII\ilat.oonal wAs lew I\ev!ew, mool caurt.

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Law School Professor of Trial Advocacy 11\C ClJmberlalld School of Law, Samford Univcl1iity,

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tor to serve n., u prorCS!lOf of triullldvOC8CY lind a.~soei:ne director of advocllC)' and clinical progrnlu. Cumberland's etl'OI1~ in Ihe.'IC urtliS are loog-sllInding Bnd wellregurded. We §eek cllodidalell who are enll1usia.~tic about. and are willing to make II long.tcnn OOfllfnitment 10, the study and ICllching or ndvocucy, 1bc MK:ccuful CIlIl· didJlte will teuch basic lind ttdvanced courses in the lr'C1IS of uilil advocacy. 1l1'PClh'l\c OOVOCflCY, negotilltion. andlor clienl interviewina and counscling. In addilion, the successful candid:ne will comribule to Ihe work of CUl1lberillild's extel1l~hip progmm. our well·l:.nown moo COO" and trial competition teams, and OJr e,ll:tensivc lutr:ll\luml progmrns ill lIinl und uppc::l1utc uelvocacy, We setk so/noonc fOf' this posi· tion who cun makc substuntiul cOl11ribulion.Q10 lhe (unher development or Cumberland's ell'ons in this nren. Snhlry i~ competitive. We offer the position liS either tcnu red, ICRuTe-tmck. or lIS lending 10 Ihe elluivu]cnI of [enure liS defin ed In Sllinelard 40.5(c) of the ABA's 5tondards (or lICcrcditution. Cumberland hM appt'oll.immely .5.50 studen l$ and 30 full-lime f!)Culty. II WIlS rounded in 1847 in Lebanon. Tennessee lind moved to Bimlingham in 1961. Samford Universi ty hM IlPJ)f'OJlillllHely 4,500 studenls. The eamllUi is locmed in suburban Birillingllam, an area 111111 enjoys 11 modcmle climate and cost of living. For more informmion, contact Professor Michuel DeBow. Cumbcrlbnd School of Law. Samfon:l Uni vers ilY. Birminghum 35229: phone (205) 726-2434: e·mail

As In atlOrney wllb eighteen

years of npericllCc In researcb Ind writing I have tbe time ncec..ary for Ibll sus. lainc<.l, uninll:l'TU~d ruearc:b .0 onen ncoded 10 win II:He. Whon your cue Is fully rtS~vcbed you 1:.0 n:prciCnl your client wIth more conn· denee 1111<.1 be boiler prepared in I:OW"L I lim ava!lpbl~ for ,hort r~SIIarcb quu[lon~ or lcnglbier brie rs. My rDIII is S35.00 per bour. Klllh l:rlo. S. Wa d P. O. Bo. '90I().I BinnillJ,ham. AL )'139

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Snmford Univcr.;ity is nn !!quul Opponunity ln~ tltution und wclcon1~ ul'plicli. tions for cmployment and cdu cmioltol progrful1 ~ froillull individuals regardlcs~ of nice. color, SCJl, disability, nge, or umional or ethn ic origi n,

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389

and mock ttaal.~ierce a pius Compedtive salary wim e~lIe!\t benefits Send resume and ~ IChooI trncllpta 111 ccnlidence 10' Managing DirtICIOt. Galloway•.Johnson. TOtTtpklnl.IkIrr5o Smith. flLC_. 5511aybrldge Olfve. Gulf8retle. Fl32S61. Fax (8501934-3848.

• ASSOCIATE POSITION; Montgomery.1lIId Illed insutiInCe delentlllirm. seats an(!tiet" With twO UIIDIJ yearl' 01eXllIIrienca. Please fQIWsrd UlSUlTlll to Hlrlr,g PaftMJr. PO Box 41 28. Monlgom&ry 36103-4128 • ATTORNEY POSmON: SmIII! insurl1fl:8 firm roeeds ON)Ofienatd at1llmll'/. GUIDI benafil$. SaIIlfY negotiat*. Offices in Btrmlngham and JackIon. MiutSSIJIP Sand reMl810 1001 SixttI AVIIlUII. North. Suite 1500. Birmingham 3S203. Fax (2051322-5577. E·mall: haret1JhBr8l8w.com • ESTATE PLANNING ATTORNEY : NOIded kit tstabIlshed. buu'eu-onented firm In Tuscaloou. TlvlMIIO flV!! yea'1' experianca required Componsatioo r.eootlabill bilstKI on bilckgrOOI1d end 1lIjlIIrienct. Send inquiries lOcI r811m8S 10 Karen M. Hicks, PO Bmc~. Tusatloosa 35403. • UTIGATION ATTORNEY NEEOEO: Firm in NeslMlle with 5Il1ow,oers sooijng to hif9 one

IIIXIitiDnlllaY.yarv.m 3t yea'1' uparien:e 10 wort in 11\JgaIIOn. Ptaclce will ~ prmarily tM:intm m8noo and professkwlBlllabtiity 00100se. Sard (O'l/kl8t!tia1 reM'MIlO ~ Attomay. flO. b IW1. NMtMIle TN Jnls.0021

For RentILease • VACATION IN FRANCE ANO ITALY: Tusceny· 18th C. haul' wilh vews of San GlmtgnaflO on Wille.

oIfve eSUlte. III: bedloonu. three baths.

weekly $2.200-SJ.1JOO. Aepresontl"" owners of autllenlic, hlstOtIC properllU for photos Of dQtalll 01 this and oUler PfOIlIInlel. IIISiI www./awofr,c81"ktHIIlW$OO.ron!Ofcellf200t 632-1085. FDX (2061 E32·1086. • LAW OFFICE AVAILABLE: Five Points,

Southside lawofflCe(s1. 111122nd StrDeI. South. 200 5qUBre lett to 3.lXXIlQuare leet ·Vinual" Olliea also ~v8I!ab I 8. Receplionisl, t;OI1f,ronce room. tolep/1lroe. fax. COjlIIlJ. hIspeed OSllntomet, alC.• prOYlOed call Tom PIouf!. esq &t 12051919·0000. • OFFICE SPACE AVAILABLE: F1f1een minutes from downtOWllBtrmlnghDm. new olflc:es Iocallld near \hi 1·59 800 1-459 jurction It the TI'\IS$YIIIII ilJJl. RecepilonisL COjlIQtI and fax inckxl8d With the renl. fr" PIIrkino For more inlonnDtlOfl. con· !let ElllIbath Panons.1205l &61-11D) • orne! SPACE FOR RENT: located in Valu,.;. AlDbama. Excellent 10Cll1loo. Prolession/ll ollice spaces of Wl'1CIJS dimentlons MliiabIe; 1.400 SQI.I8Ie1eet to 3.200 .,...Ie feet Will rarnodal ., necessat'1 tilltIXmllD:latG On Fob JDmH Onve connecting 1·85 to CityHBl1. Only I milo Irom 1-65. ontv I mil, from VallevCtty Hall EllS'/" ICCIU. hqIl'1Slbthty. plenty 01 /rea paRlf'9 O!toer tM-

anti In olliee parII prOIOSlional and S&MCe-orlentad. Call Oliver I(itd'oans at (334) 863-21 81

Notices • NOTICE FOR INVOLUNTARY TERMINATION OF PARENTAL RIGHTS ANO AOOPTION NOTICE: In lila Court of Conmon Pleu 01

Berts Countv. Peno$vlvania, Orphan" Coun Division Case No: 16972 NollCl llllereby g.ven thlllha Pelll10n 101 the Involunll11V letmlfl8tlOn or Parentallllghts 01Gayle l . Himolsen. whoSt last kllO'W!! addrell I. 132 Courtty Ro&d 881. Jones, Dellal Couo!y, AlabalTlD, 361'9. aM the Peblion foI the Adopt~ 01 ChriJlopiler OoTemplell8V8 been filod in 100 aboVe Jl8t116d Coun. PlaVing a deoree 01 Involuntary Termlralion 01 ParOt'lta) Aighu of GevIe L HlfI181M1f1 and pravrng 101 dooee 01 Adoption 01 ChU$llPher De Tempte. The Coon 1m 11*1<1 the 6th day of FeOt1J<lty. 2002. et 9.l') 8,m in the COI.J'fOOIl\ 01 Petet W SchnahI, II the Belts COi.I'IIyCtuthouse. 633 Co.rt SIIBBl. f\eadiro.llerb CWlty. ~. M tho time aM place I()I' rhe h6arirYJS of tho said f!8titlOflS, vmen IIIld wtwe all or &rly other Jl8I" $OIlS II1llllested. iIckJImg ~ L HKnet$III, ~ appear and show Patillonl a/'o.IId noI be \IIl!1I1ted. Aetlocca Baldorl Slone. asqwe, 311 Easl lancaster Avenue. SIIllIlI'IIIton. PennsylVania 19601. phone (610) 175-0477 •

Professional Valuation Services Possessing the necessary experience , education and training , Pam W. Clark, CPA, eVA of Donaldson, Holman & West, P.C. will successfully and promptly determine, substantiate and support value utll1zlng proven and accepted methods for you and your clients. We assure the valuation service you and your client receive meets the

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