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T il E AI..A Il AMA I~ AlV }' E R Vol. 62, No. 61 September 200 1

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UlllI, we have the hcst slaff In the SEC, I do nOi intend 10 thllnge this. 1 imend to encourage the good work tlleY arc doing. III 1993, 1 had the pleasure or scrvinll on the 5111te bar's Lollg.Rallge Plannillgl'n.~k Force, We conceived a broad five-year plan thm WbJ adopted by the board of bllr cormnil'siuners. This is Ihe only tllst farce or l:ommince on which I served Ihat every gool was subsequently II1CI. Rcviewlng the§e prol)()sals, I WIIS UStotlilded thm every pl~n Wlrs inlplclIlellled lind every gOlll rcllchcd within the live-yellr l>criod, It is now time for me to appoill1l1nother Long- Range PllLllnillg Thsk Force and I ~1ieve the result!> will be equally II.~ ,ood. At you r request, II committee iM ~illa appqinled to review our annual meeting programs, Many lawyers feel since we life often in IIdvcrsario.l positions with each other, it would help to have more 50do.llnteructlon nnd this committee will address thi! suggestion, Advenising continues 10 be l\ coruinuinl romplnint and concern ror 1ll0St bnr mcmbers and yO\lr SllLlc b:rr will closely monilor and exnmine this issue. Hn rry "1'01111:111, in s i ~lng up our 13[h l'residclIl , Millard Fillmore, said, " I'll tell you, lit a lime when we nceded u strong man. whm we got WlLS a man thaI swayed with Ihe ~lightesl breeze." Beuchump Clark was President Woodrow WiI~on'. Vice-President. With World Wllr I raging in Europe in 1917, Clark's biggest concern was what he srllOl ed when he w.id, "Wh1ltthis rountry nccds is a good five,ceru cigar," I promise you, as your 1251h president, 1 will not bend nor 'WilY from the thing~ thm have made our profession great nor willi Oipplllllly atld ren this job, I will Mrive to preserve bnd improve our tradition of cxcelicllce wi thoUltaking myself too seriou~ l y. Ouring this yent, I would urge nil or you 10 IlUu~e lind enjoy the journey, not the deslinmion. It can be Q 101 of fun beinll a luwyer. It is tOll y a wonderful profession,

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RUSSELL FINANCIA L CONSULTI NG, INC. /b1'''/''II'a ASH f.(tclllil~ OIm:lOr K,llh Normi'" (nm pic-. '"ff!iI) un "'''' WUItI.iuiQfltl'l (It/iIO rig/If): TOmmy S/lIl6rd, IIl/lIm""t: {)oH. )(I#t$, Mf)lIIg(J"It'".: SIf:l't/ Mooft. MIJbIl~: Bob Mtni/o ....', O/Hllka: ulIIllJnm 1'11(",,1,,: J(IJtH'''

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Gramm-Leach-BI iley Act: Deja Vu AllOver Again C

ongress enacted Ihe Fi nunci~1 Services Modemilhtion Act in 1999. This Detls commOldy referred to liS the Granull.Leach,l3li1ey Aet. TItle V of this act re{luires that finaneih l institlltion~ disclose to their clients their privllcy poliC)lllnd explain how they share nOflJXlblic, personal infonna· lion with affiliates nud third partie'. Followina the lief. adoption. the Federul Trude Commission (Fl'C) adopted regulations for TItle V ( 16 crRPart 3 13). The pt)lential effects of these new regulations on the leglll profession went largely undiscovered until recently. Although the net Wll~ dmfted to apply to finMd~1 inMitUlions. Institutions thnt nre significantly engnged in "financinl activities" nte included under the brond terms of the regulation adopted by the FTC. nus br'Qlld definition nppelltS to include law fim)s that provide tll}{' rchued services. renl estate sell lemc:m services. debt collection services and employee benefit cr compensation plannin. 5ervicc.'. among other.;:. Areas of prnclic:c where non public informution i~ obtained. such as domestic relations. abo nppear to be included under i t~ temls.' The regulation requires inStitutiol1s prOyid· ing these ~efvices 10 notify eliellts :1000\ the disclosure of their r10lljlubJic personnl infomllition, The reguhu ion required iliSlilUtiolls to provide thi~ notice by July I, 2001 . The uppticillion of these r~gu llltion s to law fimls i~ unneeessnry. Rule 1.6 of the Atllbullla Rutes of l>rofessional Conduct and simihtr ethic,,; proyisiuns in other ~tate~ require InwyeN to protect the c:onfidentiali· Iy of their clients. In fael. the profession's rules of con· fidentiality ate far more stringent thlln the feral I'C(luirc· n~nt. The ..~rC's interpretalion of Ihe Gmllllll·U:uch· Sliley Act and ilS promulibtcd regulation undcr lhe aet are simply the ratcst effort by the FT'C to n:llulate the legnl proression. In 1979. Ihe FTC commenced a nationwide i~ye~ti gbtion of the legulilrofe~sion. State bur flS§OC iotions bCroSS the count ry were besieged with lengthy inter. rogatories seeking detailed information Ilbout their 288

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(lpcrtltions and actiyilics. This "5trong.urm" lactic cuused n notional uproor and it wus qu,ckly ubundoned. AlthouSh the FTC withdrew the mond.tory question· naire, a "voluntary" one wn~ sent to the suite burs in 1981 . The FTC intillluLed thot it might reson 10 n com· pulsory process and t:ompel nnsweN if lhe voluntary rc.\poIIM:S were insufficient, Although "lOSt stnte b.~1'S completed and returned the quesIL()fInllires. the FTC Illter dropped the investigation altogetl'er. With this ncw "'IC fCgulntion, however, we see Ihlll "the camel is Imemplin, to cnter the ten!" ugnin. Thi, lillie hi ~ nose is farther under the tcnttlmn eYer. I think it is Slife 10 sny thm few law)'Cl"lI welcome the P1'C '~ latC.'it rorny. Thi ~ new regulutio~ not ol1ly threat· ens stUie regulmion of the llrofessioll, but unlen the rcguhuion is chonged. a federnl ogency could soon be determining important issues of confidentiolity for lawyers lind law finns. I do not think that the Financial Services Mod<:mization Act of 1999 was eVer illlended to include lawyers lind law firms amons those entities n:aullllcd by its provisions. The American Bar Association is urging the FTC to exclude the Iliwyer§ in the practice of law front the regulations regarding nonpublic eonsumel informlltion, As the licensil1g and regulmor)' authority ror lowyers in AlnbulI1n, we have mode known to our congressional dclegll1ion thbt oycrsight of the legnl profession til the stute leYel already requi res a higher dellrce of privacy protection than mandated by the fCgu lation. , encourage you to write your COfIgrusmlln and Senmor Shelby and Senalor Sessions to expreSS your conecrn about this new regulation. Lctlhem know that the legal profession is bc.~t regulllted at the state leyel and encroachments by a federal ogency nre unneces· Jary and wilt only ililpnir )'ouf obility 10 effectively represent your clients. •

Endnote

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• The Aln bu lII!! Crhn hul!l>efense Lnwyers Assoclllllo n electcd offieers for 2001 -2002. 111ey nre: KCllllcth A, Nixon. pre8ldem: Chrlsllne Fn::cmun. pr.:sidcnt-elecl: IIru ce A. Gn n l ner, vice· presiden t: J II II1t'S II , Roberts, J r., secretlll)': and JOSCllh I'. Villi II c('Sl. trensurer.

Alnhnmn State Bar mcmber Unlee r. lIower recent· ly received the State Bnr of Texas'S J. Chry8 Doughcrty uglll Services Awurd for outstanding pro bono work (or the poor. Bower is II 1976 AS B admittee: he is direCtOr of client li nd ndvocucy services at Teltn! LeSOI Services Cenler in Austin. •

New Advance Health Care Directive Law In its last session, tlto Alabama legislature passed, ond the Governor Signed, 8 major rovision to Iho AdI'lIflCe Health Care Oireclive. This revision rllWlilOS Ihe mandalQry languago of the diroclive, making it mIlCh clearer to understand,

major problem of the previoos mandatory langulltll. The now form look effect August I, 2001 The Governor of Alabama has proclaimed October as UfEPlAN 2001 month and the Alabama State Bar, as state co-sponsor With the Alebama Hospital Association and me Medical Association 01 AlabafllJ. will participate In sI81awida UFEPlAN 2001 events. ilegioolllg October' , as woll as a 1'I<lll0000WIde prO\]rom to enhance the publiC'S knowledge and u!ldefstanding of advance health care directives Wllh public programs dU1I1lg NotIOnal Health Care Declsioo Week, Oclober 21 -27, 2001 . For mOlo infOfmallon. COOlac! Susan Andres at the ASB, (334) 269· 1515, ext. 132 or ssndresOalabsfOtg

Attorneys: Buy Extras for Your Staffl

2001

[g3&'lRl [0)0 [R1~cr©~o []:~ are herel - Get your extra copies now.

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Legal and Health Professionals Team Up for LIFEPLAN 2001 Help Alabama Citizens Prepare for Future Health Needs In October 2001, Alabama attorneys, physicians and health care professionals are delivering a valuable public message-planning for future health needs is a gift to your family. LlFEPLAN 2001 Is a statewide public information campaign to encourage people to discuss health care wishes with their families and document them

now, rather than during a crisis.

The campaign also aims to improve the way legal and health professionals provide such services oy offering seminars statewide for attorneys, physicians, other health care provicers and clergy involved in advance care planning. With Alabama's new advance directive form now in et'ect, it is Important for citizens to be familiar with health care directive options, UFEPLAN 2001 workshops will be presented by attorneys from local bar associations, physicians from county medical societies and health care professionals from hospitals and clinics across the state. The campaign, to be held during the entire month of October, is sponsored by the Alabama State Bar, the Medical Association of the State of Alabama and the Alabama Hospital Association, with support from the Alabama Depanment of Public Health and the Alabama Organ Center, and reaches out to adults of all ages, Consumer guides will be distributed free at local UFEPLAN 2001 events and information is available online at

www.alabar.orgby accessing the LlFEPLAN 2001 icon. For more Information, contact Susan Andres at the Alabama State Bar, at (800) 354·6154 ,

IIIII/I/III/I/IIIII/(

2.9

I)II~ IQ 1I11ltlise

IlI cre/uI 111 1I0licII for "Abolll M f lllblrs, Alllon8 f'i,I1I S," TIte AluOOlIlII lA,wyer ""ill 1m 101lIJtr pllbllslllllldressIs aml ltitplwn t nllmbln u"I", Iltfl a"nOllIlCll1l llll( rlllalllS (0 IIt t opt llin: 0/ /I 1Il1"" firm or , alo IlNlcllCt!. " /, IIS, co"ll"u~ 10 11IId In a"aoul/clme"ls o/ll//or address C/ltlflgt S 10 Ih t A/llbllma Stoll /1ar M embership I)fpartmelll, (11 (334) 261·6310 (f(u:) or IW . OfIX 671, M O/I/golll e,), J6101.

About Memben Joseph E. J'olt'ell llnnounces lhe fonnolion of Josellh K Iluwell, P.C. Offices IIIl: locllted at 9 11 Main Avenue, Nonhport. 3S476. Phone (2005) 3405-87505. Mllrthll Durant Hennessy IiMounces lhe oprning of her office al 209 N. Joachim Streel. Mobile. 36601. Phone (205 I) 431-6000. '('wnln Crnnt Wllllnct! anllounces the opcnillg of her office at II I N. 19th Stree/, Suite 100. Blrml nghn m. 305203.

Among A .... Thnner & Culn, L.L.e. Illlnounces Ihm Ralph 1'01, Clement. has become associllted with the fi rm, Kllufmull & RotMeder, I',C. Ilnnounces thlll J. Scott Pierce lind Cltrlll Cole Gllmol'C h!l.ve become 5hnrchoidefS in Ihe firm ~ n d John A. lIowa rd, Jr" Chellirs 1\'1. Porler lind Onlt'ls n . Smith huvejoll1cd the firm II~ 1I~5ocilllc5. l'Iornuln . Wood, Kendrick & l \mlcr ~nnou n~es thllt Mllrk P. Wl1IllIms hits joined the linn as a plln ner and Mntthew W. Robln£1I hlu become associmcd wi th tile firm. Morris, CMY & Fisher, L,I•• C, IInnounc;cs th.t S. Mllrk And rews has joined the timl M a partner and the firm name has ehllnged to Morris, Cary & Andn!ws, L.L.C.

290

Alehlsol', Cr06by, Saud & nl~be, I'.C. nnootl nees that Derek Atchison has become IISsocimcd with the firm. Wilson. Pumroy, TUrner & James, L.L.C. IInllOUnCCl that Robert C. OiUC)n has joined lhe fiml. Roberts & Fish. p.e. announces thot Ethll n R. Delllhl" hilSjoined thc firm. Mllry A, '1\lrner lind R. IIUY8 Webh announc;e the fonlllllion or 1\lnlcr & Webb, I'.C. Offices ure located at 601 Oreell~boro Aven,le, Suite I·A, 'l'uscliloosa, 305402. Phone (l05) 7058·50576, Rlcluml Maille!!, Jr. and Gilbert L. Fon l~nIl t announce the fonnmion of Muplt':S & Fonlenot, 1.,1..1'. Offices arc locllted at the LIlClede Building, ISO Govern ment Street. Suite 1()()4. Mobile. 36602. Phone (334) 432-2629.

RObe.IU , Shields & Green, P.C, nnnounct'll thnl Tbonlll..~ G, F, Lundry has joined the finn tIS a member.

MeltOn, E..~ JlY, Wili hun.~ & IInyes, I'.C. nnnoutlces Ihlll J. ~'l ynTl Mo:tlngo hus become u member of the fi nlllllld e . Mllrk Ullin hils joined the fi rm us lin nssocillte, IIInslm w & Cul bertson announce thll Steve n Worley has joined Ihe finn. Offices nre locatcd in Jacksonville. Aorida, Ucrkowllz. Lctkovlu, lsum & Kusbner, P.C. IiIlllouncu thut AI Willklns hn joined the firm liS a member. Cllry S, Sehi" and Mllrl(ln . '. Wplker hllve become rnembel1 of the fi ml, lind Matt he w S. Celler hILS become IIssocillled wi th the firm. GIIICIlWllttrs & Lowe II nllOtlnCCS thllt Jnscph D. Flc(IUelie has becomc il550cinlcd wi th Ihc firm. Lynn C.unpb l and Anne Mosu an nounce the rot· mmion or Camlllsi & Moses. Offices Ilre localed at 3008 l>Ump House Rood, Hirminlhom. )05243. Phone (lOS) %7-10 10.

Oililnund, 111L...~er & f>'l'os t announcCJ !hm Stu Art Y. Luckie hilS become II pllnncr.

.Juekson, Rhodes. Moulton & ClippS IUlIlou!\CeS th:lt R. Allron Cartlnl! hIlS Joi ned the fi rm as an IIssoci"te.

Urnlit ley & 1'lIrker. L.I•.C. announces th m Thnuny L. Stinson hilS become D.ssocillied with the firm,

Cochrn u, Cherry. GI~e ns & Smith, I',e, IInnounces thai U. Siumnon SlIundenl and LunCe II. Swnllller have joined the finn ,

Miller. 111I1II1ItOIl, Snlcler & OdOlll, L.t.e , announces thlll SCOIt W. Conndden hilS joined the

SI!PTIlM81!R 2001

firm.

T he Lllw omCES or Joscph T. Cnrllt-lIler announces Ihal Wins ton W. tAlwartis has bc<:Q'lle associated with the liml.

Huie, Fenllllll bucci & Stewarl announces thm JlIson Robert Watkins hils become an IIssocintc with the lirm. Redden, Mills & C lnr k announces Ihm LUlu'u S. Gi bson hnsjoincd the liml as nn nssocillte. LtUlI(' r, ford, Sbll.~cr & Payne. i'.C. announces thlll J)lI vld L. licrtlnn hils become II shar'Cholder in the finn. Ihand Ar(' ndnlt , I...I..C. announces thllt Sleven C. I'carson hll.~ become lin IlSsocimc of the firm . Cheryl Euhlln k.s Corle lind Nnoml G, Drukll nnnouncc the fomliuion of Corle & I)rll ke, Officcs nre locnted nt the Daphne Execulive Center. 22 10 Mniu Streel. Suile U. Dnphue. 36526. Phone (251)625·227,

lIornsby, Wnlson & McginniS$ Ihut Duvld U. MCl:innlss, a me mber since 1980 lind II partner since IInnOtJnce~

1988. has been IIwarded the dcaf« Master of Divi nity. He hilS leftlhe pmc· lice of Inw for ministry in the Episcopal Church. effective with his ordinlilion in Mil)'. The lirm Illso announces thllt Jeffrey G. BllIck" 'ell hag been m:tde a member nnd Ihe finn name hll~ chnuged 10 lIol·lIsby. Wntson, Ho rnsby & Ul nckwc lt.

JlIllies V. Robel'lS. Jr.. of the linn of Robe rts. Shields & Gree n, P.C.. hilS bee n appointed ns the first nlunicipl:ll Judae of Spllnish Fon.

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Ronilid W. Wise announec.s Ihllt Rlclm rd ,,: Mn uhews, Jr. h/18 become Ilssocimed wi th the firm.

• • • •

Wnlson. deG rRrr~n ricd , Ibrd hl & l'yru, L.I~. P. wmoun t cs that nll"ld A. IIUlIt.!l hn~joi n ed the finn M II plln ncr.

1.IIIIII.'r, Ford, Shnvc r & !'uylle !'.C. llnnounccs thltt Geurl:e W, Ruyer, Jr., Johnllie f. Valin and 11I-.vld L. Ucrdun have become members or the firm lind thllt Kenneth O. GnlYd, J. Clnrk l·endergril§.'l (n~ Anlhl S. Dnmln n have bec"me associated with the firm . •

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Ilrmide I;tal underwriting solutions. We're rated the num~r one title insuntnce

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Albert Jacksoll Seale Albcl't J. Scnle, u highly respected member of the: Mobile Bar Associluion. died Sunday. Pcbruury 25.

200 1, j'le WIIS horn in Nc:w York City April 29, 1925 ~nd moved 10

Denver, Colorado and then 10 [.,(Ing Il c:LCh. Mississi ppi, where his parents retired. He gradunted from lhe University of So uthern

Mississipplund earn ed his L.L.B. degree from the University of Alubunm in 195 1. j'le: pmcliccd with the Mo bile finn of SClllc. Marsul & Senle for 50 yenrs. Al joined the NLiI')' III lise 17, righl OIH of high school. nnd while inlhe NIIYy, :lI1clldcd Ihe V路 12 program for bright Sludems.

111crenfu::r, he WitS assigned 10 To rpedo School And, after gradu. nlion from it, served in the:

Pacific during World Wllr 11. AI and hi ... wife. ROSCl11 hry.

AllH:r/ J. Sc(!/~

murried in Long Beach in 1947 in ~ l3aptisl dlUrch with sc:rvices condu cted by n PresbYlcrirul minblcr. RoscmlU')' was ~ Bapli ~tllnd AI was a Pre~byterian, nnd Ihey (;ompromised on th eir wedding day. 'nley hrld live children, Sidney Senle. Vincent Scale. Susan Roberts and Stncy Scale. 1\11 of Mobile. and Kelly Scale. of Dallas, uml four grnndchildrcn. Durlng his bu~y lifc liS :In lIllomey. he ulso look lime QuI 10 cnjoy his beach home III Oulf Shorc.~. He wus un

292

ovid IighefnllLII. nn lIccomplished Ilho1Qllraphcr IInd:1 cllmelJin enthusins\. Al grnfled severnl hundred eUnlellills on his 22-ucre horne.~ile in Mobile and wus 0 member of Ihe Mobile CUlI1ellio Society. Jud ge Ferrill D. McRae sliid. "I was lold Ihal every tll1le il good person leaves Lhis earth. (I slar WIIS tit ill the hen\cns. (md IftlmL be LnlC. II very bright star now burn ~ for AI Sellle." Al was known by his m!!ny close friends 10 hnve one of the bcstlet;ul minds Jillhe Mobile I3 l1r. und his word wns his bond. !-Ill WIIS II friend 10 lilt lawyers. C~pCciilll y you ng IiIwyers, whu sought his help nnd advice, nnd oVllr his years of practice. he rep路 rescnted IIllllly hLwyers ptrsonnl. Iy. ncvcr chnrging a fee for his rcprescllllUioll. He was Illso high. ly rc~rcClcd and loved by the

judges before whol11 he practiced. Accurding to his wife, Rosemary, Ihey were Illumed in (1 BUptlsl Chu rch by a Pre.~by Lerlitn l11inisler nnd Al w~ buried by a Mcthutlbt 1l1inbter. She: feels thllt ull bases hnvc been covered.

- umy U. Sims, fJI'(!J'ic/ltut Mobile flar Assod/ltlrm

LybnHld, Fred Ray, Sr.

Sial e, Rudolph Wright

Allllistoll

Admil\cd; 1958 Dicd: June 13.2001

Hal'lsclle Admitted : 1967 Died: June II. 2001

Morris, Kathleen 8rooks

Stlll'lin, TholllllS Winston

Montgomery Adm ined: 1997 Died : June I , 200t

Col umbus. Georgia Admilled: 1937 Died : Muy 31. 2001

SI3PTn MIl p.R 2001

Justice McKinley Legal Milestone Marker Erected IOIl/fltll'I,If/IIIII!

ny I. 2001 Willi " very $pcclal l.aw Day fot the Alllbmllll SCale BIIt, the Lauderdale Couney Bat AssociDlion nnd the City of Florence, AlabMUl. It marked che unveiling or the most rcttnl Alabnma l..egal Milestone

Marl<cr in honor of rorllIcr United Simes Supn:mc Cotln Justice

John McKinley. McKinley wns appointed to Ihe high court in 1838 while 1\ resident of Florence. Florence Mayor William D. Jordan proclnimed May I, 200 1 liS Justice John McKinley DIIY. 'nl(1 event also cclebrulcd lhe 221S1 birth dUle of Justice McKinley. The marker is locnlcfl in rronl of I'lorcnce'$ United S l nl c~ Post Office lind Cou rthou ~e, which WIIS re nnmed the Justice John McKinley Pcdcmll}uilding. The nome change occurred on

Oclober 27, 1998, when Prcsiden! 13ill Clinlon signed Public Lnw J 05·299. TIle tellt of the IlIllrker rends liS follows : Namcd for Alabmml's first United SlnlC.!i Supreme COUI'! Justice, John McKi nley IIlllde his horne in Aorcnce, Alabamll, from about 182110 1842, Bom May I. 1780, in Culpepper County, Virginia, he died July 19, 1852, and Is buried in Loui~vllle, ik.nlucky. McKinley was an earl y settler of liurusville, Alboomb. bnd resided in Ihe Howard Weeden Home. As b member of the Cypress Land Company, he wa~ one of the seven founders of Aorc:nce in 1818. McKinley helped C.!ilabHsh one of Plorc:oce's 111'51 schools bnd its first church. First Presbyterian Church. Mc Kinley was on early benefactor of public education in Alaoomn by donating Ibnd for the current Athens State Univer$ity and serving on the originblBoord of Trustees for the Univel'5il), of AlaoonlR, As a locolIlIwyer. he gained rcgional status liS nn Alabllnlalegislator lind notionol SIlIllU in both the U.S. I-louse Hnd Senbtc. 1·li5 work in CongTCS' on the li rst Plorence Cllnnl estnblishes him as thc "SpirilUIiI Father of TVA ." While 11 resident of

Picfljrtd aOOI'fl ...I,h ,ht MrKItilt')· ,,,,,rktr Uff!: II fh Cirrllil/klr CemmiSliom:' Robe" l.. Gmrct: 2000·2001 ASH " tl'lid,,,1 $("""cI It. N~"IOtl', Jf.; ff!Iirtd U.S. DlsI'*I COl'" JlMlgt, NfI"h<!1'II Di»rir/ I( A/fI/JoIlmI'J, £H. /III/10m, Jf.: LA,~/t,..kll~ Coum1 811' IMsoclll;1cn Prr~IdM' Rlllph £ IIiJlI: 111111 /M,II,., Q/ ctff!mooltJ Wll/lom E:. Smil/l. Jt.

Florence in 1838. McKinley wu~ lWorn in IU the 23rd Associate Justice of the United Stales Supreme Court where he scI'Ycd until hi~ deuth, The marker is pal'! or the Alabama Stale Bar's progmm designed to recognlu the stll le'~ legal history. Five OIher leaal milestone markers have been ertcled throughout the .~ t llte. These include Olle in Hunlsville to honor the state's conuitutional convention or 1819: one in Mobile, which is the 14th oldest bar Itsso<::lution in the nution: one in Montgomery allhe Alllbnm.ll StIlle Bur heudquanCfli: one in Monroeville to honor "To Kill ~ Mockingbird" lawyer AuicuJ Finch: and one in " ,scalooslllll the University of Al ubllnm School or Lilloi'. The Mc Kin ley mnrk. er WIlS funded hy the Alllb;unu SllIle Bar. the I.audcrdale CoulLlY l1~r Associmion, the McKinley Young Lllwyefli and the Florence Historical Bo~rd . Appointed by PreSident Mn11in Vim Buren, McKinley was Ihe fil"lit justice to serve on the newly el"(atcd Ninth Circuit. Much or his tenure wa~ devoted to his "circuit.riding dutie~" which in one yenr hnd him travclina over ten thousllnd miles. Mc Kinley's contribution to constitut ional legal the()ry includes his opinions in Gro'l't'S 1\ Sltl"ghlU and Tilt PfI.fStll8l1f C(/Su. • Willi... E. Smim • .It.

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Reapportionment

he SI>ecilll Session Ihm called for reapportion-

me nt las ted It week. The reapportionmeut pions proposed by the House Rnd Senate PermaJlent I(cLLpportionmcllt Committees were plIs~d . The Semite

Reapportionment Committee was chuillld by Senator JcffEnlingcr while Representatlve Mal'Cei Billek.

chaired the House or Representmives' Commillee. nle house pilln, Act 200 1-129 (HI), 1), establishes house districts. The SCItme redistricting plan is in Act 2001 . 727 (58 , 2). A third IIct. Act 2001 -728 (H8 . 2). russed, which requi rc~ allY contcst of It ~cdi ~t riclin8 pilln mu~1 be brought in Montgomery CITClUI Court. l 'hc 2000 Ce nsus indicated thnl Alnbnmll hudgrown

from 4.040,587 pc:.rsons in 1990 10 4,447.100. II more· thnn- tO percell! growth. The lOS house districts Ideally should tllc h hnvc 42,353 personS. while II senme district should be (:OlollOse<i of 127,060 people. The 1970, 1980 lind 1990 pllms nil wert "ncsced" (three house seats comprised one senate se.at). Thi~ year's plnn is nOt "nested," The sennte d~vl tiCd th~ .r own district plnn nnd the house drew t!leu own diStriclS. EIlch plnn was druwn without regard to mutching the othcr boundaries. Very few states huve "nC5Ied" house lind SCllllle districts. The leglslutors' criteria for dn\wing districts was to 1lS5ure comp!W:tness, comnlunity of interest, gccgrnphlc boundaries, county boulldnries. city boundaries, and rucialmakeup I\S primary f!\Cton to be con5idt~d In the nu\keup of tach district ' 11e 2000 Census indiclllcd the dcmography of mce in AIQbamQ was 71.1 2 1 pertcnt white; 26.287 percent black: 0.850 pcrccntA ~iD n : L7051'ercent ~I i spanic: and 1.238 percent other. Interestingly. we hllve 62.89 percent of the citlr.cns registered voters. Untilthc 19605, Alab.1!1la districts wert generoll y 1I10ng cou my lines. After Ihe 1960 census, a nCIII SllIn. dard for districlS was imposed, In 1964 the U,S Supreme COlin in R~)'lrolds ~'. Sims, 377 U.S. S33 (1964), required both houscs of the legislbture to be 294

S E PTE MU tl R 2001

McCIlfI.y, Jr.

apponloned on a population basis, New reapportion,. ment plans were filed in both the 1965 Regular Session lind a SUbsc'l'lcnt Special SeS$ion. A fooc.ral courl accepted the sen~le plan but rejected the house plan ILtld prepared its Qwn plan. When the legislilture did not reapportion itself in 1970. ~ federul court in Sims v. Amos, 336 P. Supp. 924 (M.D. Ala. 1972), diylded the state intO 35 senate di jtriets with each containing three house districts, In 1973 the legisluture tried to draw its own districts 13\.t the federnl courtS rejected the legislature'S plan and the coun plan became effective. Aftcr the 1980 Cen~u'.the legislatu re again passed a plan only to see It rejcctcd by the U.S. Justice , Department. The legislature po.~sed a second plan In 1982 which was used on an interim blIsis for elections, In 1983. the Icsisluture met in special ~ssion to approve a plM which IlIId been presented in federal court by blaCK citi1.cns. ThIs plan was .ccepted by the Justlce Department and redcrol court but new elections were ordered, See Hllrf()n 1\ Hobble, 56 1 P. Supp. 1029 (M,D. Ala, 1983), Opinion of the Justi£cs. No, 305. 442 So.2d 42 (Ala, 1983), IJ uring 1992. the lcgishuuro pM~cd II fcdistr~cting plan, This plnn was litigated by a s.roup of,A~nCa.n- , American plai ntiffs in one case lind by phllnuff~ ,dent,fyins. themsclvCli as Republicmts in another. The~ co.scs ~re consolidated (tnd subsequently the leglslatiye 1)11'111 WIlS rejected by the federo l court. See Brrwks \I, lIobble, 63 1 So. 2d 883 (Ala. 1993). This 2000 redistricting pliln was crafted after e:(I(n· siye public hearings by the PemlanclII Legislative Committee on Renppol1ionment. Law$u it.~ haye again been threatened. The plan is now s ubje~t to review under the "Volina RighlJ Act of 1965." 42 U,S.C. f 1972 e/ seq. The Justice Department must approve or disapprove wilh;n 60 days or obtain II declaratory judgment from the District Court In Washington, DC, For more Infonnmion about these redistricting bills, go to the legislpUire's Web site, WM'W. /esls /(11 II re.Slflft. ill.11,'1/.

AnnuaI Maeting The Law Institute held its Annuol Meeting July 18, 200 1, Officers for the 2001 ·2002 year are: l'resident I)crnelrius Newlon, lJimlina hlm : Vice-President Rogcr Bedford, Ru.~!lellvillc: lind Secretary Bob McCurley. Tuscaloosa, Other members of the Executive Conunillcc are: David Boyd, Montgomery; Jim Campbell, Anniston:

RepreSCllIativc Mark Gai nes. Ilnd Reprc$e nloli vc Ken Guin. Athlete Agent Acl sponsors arc Senator Gemld Diol . Senator Rodger Smhhermnn. Rellrescmo.tivc Gemld Alien lind

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CON FI 0ENTIALlTYCan You Keep A Secret? T he COmel'litOne of the attorney.client rtl:uion· ship continues to be loyalt y. 'nle fldllcilUY rela· tionship crtllted when the client rttai ns lIle atlorney requires absolute commitment by the attorney to Ihe cliene, and :tClIlous representation by the IIttorney in fXIrsuit of the interests und ri ghts of the e1ien!. Inherent in such Q rtlntlonshlp ;8 the need fOl" the attorncy 10 mai ntain eonfidcntiullty lIS it relates to hny and all infonn ntion gllincd by the Ilttorney during the repre.~en t ation of Ihe client. However, IIHllly ottol'ncys continue to confuse or mix the concepts of confKlen· tilliity and prillilcge. Confidentiality i~ gOlle rned by Rule 1.6, Alnbama Rules of Prurcsslunnl Conduct. which stllles as follows: "Ru le 1.6 Conlidentiality of Information (a) A lawyer shall not relltal ;nronnation relating 10

representation of a elient unless the client canscnts lifter CQnsul uu ion, eJlcep! for disclosures Ihal are impliedly authorized In order to cllrTy oUllhe representation, and except 1\5 SUlI ed in pl~ISl1lph

(b)

(b).

A luwyc r nuty relleul stich inforlll ution 10 the eXlcnt the lawyer reasonobly bclielles neceuury:

(I) 10 prellcnt the clienl from commillina a

crimiaal llCt thlltthe luwye r bclieve.~ Is likely to result in imminent delllh or sub!ltuntial bodily hann: or (2) to estll blish II claim or defense on behalf of the IlIwyer ;n II COntroversy between the Inwyer lind the Client, !O esulblish n defense to It criminlll chtlrge or eillil clni1l11lguinst the IlIwyer bused ul)On conduct in which the elienl WliS Ir\\lOllled. or to rcsl)Ond to ullegmions in ully proceedina concern ing the lawyer'! represenlalion of Ihe client." 298

SI!PTH MII B R lOOt

A ~ Ihe omment poinlS 0111. infol'rnmlOn gOllerned by Rule 1.6 is more C~p;tlls ille thnn Ihm gelle.roll y rec· ognized by the leanl principle or concept of prillilege, The Commenlto Rule 1.6 states 15 follows :

''1be conlidentiality rule applies nOt merely 10 mllLters commun icated in confidence by the client bul also 10 lIli infonllation rell~ ing to Ihe repre.~entatlon. whnteller its lIOuO:e,"

While the conccpt of prillileged oonlinuniClitiOnJ UpPCll1"ll to be more reslrictille, liS II m a lleI' of IIIW, th(m the ICllll confidclI tinlity, liS n ill/liter of e:hies, consider the opinion of the Supreme COlin of Al t blllllll in the elise of Richmrl$ v. UllIlo.limill$frirs, Inc.. 574 SO.U 736 (AlII. 1990). Then::in, homeowners filed II pro(h1cts IilLbility action IIgainst the nutnurllCt urer lind d i ~tribUlor of a gas furnace that ex ploded lind injured the home· owner. At tri al, the ronnel' law clerk or the homeown· ers' IIttorney testified, oller objection, thlt he hod ob.'iCrved 11 teSI C(lnducted on the valve IlSscmbly in Cjue.~tlon prior to il5 rtlIIoval from Ihe home, thilt he hlld removed the 11111 lie IiSscmbl y from the ftlnlaee III the homeowne rs' residence with no Ilsslslnnce from unyonc, and th nt to hi s knowledge there wert no "plms broken off or Ithe valve IIssc mblyJ" IItlhe lime he re molled it, and Ih m he. hlld returned the vullle assembly to hi ~ former employer's [homCOWI1CI1' attomeyJ office. On appeal. tile Suprtme Court of Alabama considered Code (If A.labtlllill 197.5, 112-21 -161 . which states that an attorney or his law clerk is not competent to testify 11811inst n client as to infonnotion conCl:rnlng any muller which mlly have been Rcqul red duri ng (he represtntmlon of Ihot client. The Objection to the luw c1e rk' ~ testimony wus grounded In this SllitntOry prollisioll, with the homeowners contending Ih m the fomler Illw f lerk hod joined this inforrn;.tioll during his employ by thei r attorney, li nd during Ihal representlltion,

The supreme COJn, in reviewing signHicnnt case hlw o n the mailer of privilcged communicmions, determined that the "acts" performed by the former low clerk wcre privileged comllluniefl' lions,lmowledse of which was obl:lined from a confidential IIl1orr1ey..client rektionship. lind the trinl coun'~ admission of that evldencc, over the objeclion of the homeownel'$, violmed

112·2 1· 161. Dissecti ng Rlde 1.6, there are exceptio ns 10 the II bsoluteness of eonfidentlllllty, as well as recogni tion of ull thoriled d isclo5ure of informntion which wou ld otherwise 00 deemed conli demial. The fi nllllnd mC5t obvious e)!:ception 10 the llltomey's l'C<J uirement to mn nHl in confident iality of infon nullon occul'$ when the client consents. "afler con~ultlltion," to disclosure of confidential informat io n. Howe~r, the Illomey ~hould c)!:erei'\(. e)!:tre me caUl ion wilen consulting wit h II client about waiver of confiden tiali ty, ~i nce once Ihe waiver ocelli'll. in III probabili ty, it comwt be revoked. runher, the w,dver cou ld lend third port ie~ 10 discover in fommion whic h woul d otherwise would not be subject 10 d isc losure pUl'l!uIlnt 10 the rules of upplicllble criminlll or civ il proced ul'C. Rule 1,6 liiso (lIIOII'S the llII orney to Nye"l eonfidemiul information if the ano mey r'C IISQIl Dbly believCll sueh Is necessury to prt:vcntthe client (rom commini ng a crimin:llllCtthm Ihe anomey bclievu i~ likely to ~alt in immi nent dcath or substantial bodi ly hlltTn. As 'IOtt:d by the italiciled lansuage of the pr'Cv ious sen· tence, di.sc losure in this insumce is permissi\'C, nOl mandmory. TIlt fonner Pe nnanent Cexle Comm ission of the Alabama Stnte Oal, in .;o,bidcl illg 1'U~~ilJlc dlllflJ; tv 00 l>U UlILi lh:J Iv the

Ailibamn Supreme Court ror adoption, weiihed the 1){I5~ i bili ly of mllkinl th is provision mandatory, i.e .. the Ilttomey hod 10 d isclose th i! infon nution if such ~lIme known to him. 1·lowever, the eve ntunlproposcd ru le, as adoPled by the Supreme Court of AlabmllQ, effective JlInulIry I, 1991, contai ns the pcnll inive la nguage of "may," concel'lling revc: I ~l ion of suc h i ~ fonnol ion by the IIlIorney. An nttorncy ll l ~o may d isc lose con rt tlem inl illfonlla\i oll other· wise protec ted by Rule 1.610 establish a clai m or II de fense on oohulf of the ollorney in a cont roversy be twee n Ihe Illlonley ll nd the clien t, 10 establish II defe nse to 0 c rim inal ch nr¥~ Of civi l cluim against the II1l0m ey bosed upon conduct in whic h the cli e nt was involved, or to respond to IIllelntions in Iny prtx.'ecd1118 concerning the IiIlClmcy'S n: prescnllll ion of the client. lnterpl't tin. subsection (2) of parngruph (b), the Office of Genei'll! Counsel nnd the DiSCi pli nary Com mission hllve generall y detemll ned th~t where nn att orney's conduct Is called into qucstion with reg:lrtlto claillls of mal prac lice, ineffective ass is· tOllee of cOl," ~el, Of et hiclil misconduct, con li dcnl iaii ty is wuivcd by Ihe client M~n ing sa me to lhe c)!:lelll reasonably McceUllry to nll ow the II lIomey to eslllblis h n dcfcns.e 10 slIid clai ms. Ilowever, the ru le allows d isc losure of o nly thot Inronnation which is rensonnbly llt(;e~Sory to respond to the specific all egations of mnlpt'Uctice, ineffec tive nssistn ncc of counsel Of' eth ica l misconduct. In cennin inslances. lI\tomeys hllve eXl-eWcd thi5 rc'ilriction, QPI~l'tnt l y in (ul elTon to eXlICt II toll UIKln the client allegi na mi<eol\duct o r ma lpract ice aga inst \lltir allomey. 1be ni le prohibi ts ~lICh , :Uld an ;IIWfIlCY', engnging in this type of

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297

conduct subject~ him to disciplinllry action, unci possible civil liability, Recent elhicel inquiries disclose nn incrc:asina I1mount of activity in Iiliguiol1 where attorneys ate subpoenaed to testify concerning their representation of II client, Itnd ate even requested to produce cliclll files, nle Office or Genenll Counscland the D i~ciplinnry Commission consistcnlly nlllintllin the position thm the U\lome)' subjected to such II request for testimony or documellls lIS~crt coulidcntia1ity, HUe! privilegll, nnd resist disclosure of this Infonnmion. The rule specifically IIllows the IlItorncy to (;onltst such nttem pts to require disclosure of confi· dentilll Informmlon, with disclosure only bcina IlCrmitted u])Qn conSCIlI of the client after consuitlltion, or b)' order of 0 tribunal. If the tribunal ordenl disclo$ure of the infomllltion. the 111101"ne), Is ethically protected from discilllinltl)' action ItS to any viaIlIlion of Rule 1.6. The allomey is tlOt required to funher appelll or cOllleSt the order of the coun. and mlly comply with ~Ilme without exposina himself to disciplinllry action. The !,uhHc hn. heard horror stories liS they relme to confiden· thdity nnd privileged infonnmion in the IUlomey-client relatiOnship context. TIle claJsic exnmple is where the II110mey rcprescll1ing the criminal defendant IICC U.'iCd of murdering the child victim cm1l10t disclose to the parents of the viccim the whereabouts of the ehild'$ body. 'n it media spin given to t1d$ story plllCcs the legal profession in n b.1d light, nnd gencl'Il.tly seck5 no explltOlltion as to why the anOlTlC)' mu~t withhold tilt infonnntion In question.

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What the publie fails to perceive. nnd the medlll refusc~ to ItCknowledge, i5 Ihot but for the confidentinlity cancept of the fidncillry relationship belw~n the !lllomey lind cllent. the nllorne)' would be hllndicApped in representing lhe client. by not ltCeivina nny lind all information necessary 10 Allow effective nnd l.elllOu~ reprcsenllllion of the clicnt. Ukewise. the clienl may be ehilled from disclosing ccnain informru ion to the mtor· ney for renr thnt the infQmmtiQn would even1Llaily be disclosed 10 " third pllrty. Attorneys should exercise the Ul mosl cllfe 10 protect confidcn· tinlinfonnotion Obtfliued by them during the represelltation Qf their clients. The Ultomey should be OWlLte thot the eonfickntiality requirements of Rule 1,6 cover a mueh greater amount of infonn:uion thlln Ihm considered to be privileged inforrnlilion liS 11 matter of Il1w. The opinions of the Office of General Counscl and the Disciplinary Commission restrietlhemsclves to on inlerprctation of the Rules of Professionol Condl1cl, rtS 11 Inaller of ethics, nnd in no wny attempt to interpret leanl principles oppli. cable 10 the concept of privilege. In view of the fnctch:ll confidentiality doc.' cover 111110re exponsive I1rell of informl1tiOn, uttonleys ure cl1coumgcd to err on the side or Ilssenlng confidcmiulilYwhen di ~clo~ u re of infor111:11iOll is sought concerning re l,re.~entn tio n of the client. nnd to nlso seck coullscl of the Office of Genentl Counselor the OiM!iplinltty Commission if the circumstances of the rtprtSCllll1lion dictate the need for funher ethical auidance, •

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P.O. Bo)( 671, Montgomery. Alabama 36 101 Phone (334) 269-1515. ext. 30 1 • Fax (334) 261-63 10 · WMV.aI8bar.OIg

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Vrlllrlubl''8h COIIIII), CfJlm/rIJlI,lt, t,·'·1'111,·i1/r. {lillillii/I. ('(}/IIfJ{nll'l{ 1890 PhOIO IlIkrll JIIII(I

2oo{

Vandertxlt'gh County ESl8bhs/led, 1319

Vanderburgh County-Evansville, Indiana vnnsville, lndhmo is II historic Ohio River cily. 11 W'i~ incorpor;llcd in 18 19, the s~ me yel r Ih:ll Alabama becnme U SHlIe, II is the couruy sem or Vanderburgh CounlY, Bill wlllli 1$ il$ significllOcC 10 Ihe theme of " Buildini Alabamu'8 Counhouscs"'! Several years lIaO, inspired in pan by my interesl in Alabama cQunhouscs, I bcaan collccting bookl' till the counhoust'S of othcr 510le5, A nnc book thltt I acq uircd in 1999 WitS 71u! MlIlIllijil'tWI 92 ilu/i(llul CmmhIJIIsu. The book WIIS quile i nlere~l ing bccuusc on page aner puge there were pictures of beautiful old counhousc~ throughout Indionu Ihm were slill being used forthei r ori gi nnlpurpose or thm hnd been preserved and rcrlovllled for ol her uses. The erurics in the book nrc nrrnngcd nlphnbclicnlly by cou nly. Cnpsn1i1-ed lnfomlmion on eueh courthouse 1$ cll5y 10 view III n glttnce. When I came tQ n.~ CG'MM ' Vlmderburgh Coonly I WIlli takcn completely by SUt~ 01 AIDonI) «IU'II'\' ~ - dW Jri. prise. The courthouse WIIS built bctw~n 1887 and ~1IId _oI ~,. 1890. The: lIrt:hitCCI was 1·lenry Wolters (1845- 192 1) , . WIO ttltItIitMed of Louisville, Kent ucky. And the contrtlClor W!\S gtr1t1IIIh./f IW_-r Charles Pearce & Co, of ladillnllpolis, Indiana, ~oI-"r(Jf What was surprising aboul Ihls counhouse WIlJ thm PtMfl/""*rIIouuI. ,.,. fOIWMJ IIIIim 10.' $6mwI A Ihe second courthouse in mrmi ngham was built Jl lhe tUooIt. Jr.. MIf}Iionko & Slime time, wa$ dcsigned by the snme nrc hilecl, and Rumort.I2JO/ktw.rIMIf, was constructcd by lhe ~lIme contractor. (See " B~ildini I~~ AlllbIl11l1l'~ Courthouscs,"1'IuI A/abml/a wwyu Jnnunry 1991. page 16, lind Mll rcb 1991. phOIO, pnge

10'"

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SUPTUMHB R

200t

84). The costs of Ihe counhouses were ulso compamble. The only rcal diffcrl:llce was ttllU the l3inn ing.tmm counhousc had been repilleed in 1931 and flt7,cd in 1937. 1be Bvan~ville courthou5C was n:pll«:cd in 1969 bul WItS ~t ill ~tnndin8. 'rilis discovery made a ~idc- trip to Evansvillc a nccessity in ()f(/er to 5eC Ihe similarilies, ir IIny, between lhe two struclU res, lnd 10 view I tangible link with o.n historic AlhOOmo. courthouse Ihat had becn IlIken down more Ihan 60 years previously, TIle courthouse site in I1van~vl1le has hiMoric signifi. c""ce Ihat pre-dates the counhouse itself. Evansville was the $DI/lhem tcnlli n\l~ (or the Wllba~h IIlId Hric ClI,nnJ. TIIC counhQllsc site had becn Ihe cnnll1'5 ICnilillll1 bB.\iin. Hcttl lhe clUml boats were un lOlldcd lint! tIldr cllrgo Wlt~ Imulcd ovcrlund the shM distance to the Ohio River for

l>iclUl"eS of the Jeffenon Coumy Counoouse. designed III the .wme time, show a building with n similar celUl'Ill clock lower and dome with cupola. And Ihe Binningham courthouse contained anu m· ber of elnbornte carvings as well. It. too. appcW"t:d to be II gmnd building and gll~e nn impression of civic impor. Ulnce. However. the muie buildina mmcriaJ was brick ruther than Indiana limestone. The counhouse in Birmi nghum IIppcaml to be slighely ~mllller than the Bvnnsvil1e structure. but one mUSt remem· ber that l1 irrnlnghlllll 1100 only 26.178 citi· Hrl'I(Jl'tu CflUmOOm 11/ /J1d Vumlt'rhur'/(II "lens in 1890 while EVflnsville WIIS lit the CWlllly C/Jurl/umSt: time the princi pal C()ltImen.:illl city In InditUlll nnd second in populfillon tl) the stille cnpitlil. truns.~hiprncnl. W~en the canal.era ended. Upon w~lkini th l"l)Ug.'1 the Evansyille the cUJlnl WLlS filled In. The c(Xulhouse coorthoose I n:cdved OIIC additional 'U fo was completed Of! dle site in 11190. I)rise thllt made the CQflncc{iOll C()mplete Henry Wolten: WIIS born in Oemlany. betwCCn thi~ courthouse and 8 imlinghum. His design for clle VanderburSh County In the ~ment rotunda ~t:mds II ninc-and· Courthouse crented an elaborate Neo· g·hulf rOO high Slutuc. That in it5clf is not Baroque styled structure. The building contains mlmy scu l ptur~ flgureg with unusual btilihe sUbjecl of the stutue wns Vulcnn. Roman god of the forge IlIld sym· carvinGS of rmit. I1owel"ll and vcgetllble.s bol or Bimtingham. Alal>mua. TIle only indigenous 10 southern I ndi ~nfl. There difference was t1ll1tthis wen:: a l.~o I <I hUl11un figures Vllh:;011 WllS standing wi th a proollced fUf Ihe buildill!;. plow. A nUirker pl:lC<:d with ' 11c interior was built wilh the ~ tlllue c,"(pluincd thm finely cllrvcd woOOwork thm Evansville hlld been the gavc the lmp~ion of elehome of the Vulcan Plow gance. Company. and thllt the 8U1\' --:;; ue of Vuklln had been placed 011 the f!)Ctary roof ill 1910. When the fuctory was tom down in 1957. the Vulcull sllltue WllS SIlVOO. restored and plllCoo in the counhou;c bllSClI1ellt rotunda. n.c mlLrkcr men· \!Uk/III aml/rlt'llfl tioned that II lIuie stallIe of Vulcnn was in Birminghlnl. AhwllllUl. This stmue ele:.rly completed the tic between Dimtinghrun ruxl the 1890 Evansville, Indiana COIn1.house. When the Vanderborsh County govern· ment moved to its new Civic Center Complex in 1969.lhe b.li ldi ng wns sill!' ed for demolition. A group of concemed citizens Came to the rescue lind estllb· IIshed an Old Cou rth ou~ J>re ~ervmion Society. They soved the building usl ns as its theme "Some History Cannot Repellt

Itself." It WllS estimllled thlllihe replacemelll cost for the eounhouse building would be well over $40 million if the skilled crn Ftsmen lind Illmerinl~ cuuld be locntcd. The old courthouse is now used for vllriOUS public lind privllte offices. Communit y theater STOUPS and civic and IiI'U orglinizlLtiOfls also usc the building. VisilOl1 cun view II restored courtroom. There is II huge roum on tile second 0001'. called Wedgwood HIIIl. thai is Il~ailable to rent for mccting). catered functiOnS li nd wedding receptiuns. The building is truly an architecturoltrellsurc lind the eilil.ens or !;vllnsville shuuld be proud that they savcd thiS magni ficent edifice. Any cOlllll1unity in Alablllllathm haS a historic courthouse buildina could IlIkc note thllt there ill lin alternative to the wrecking ball. Il isioric AllIb.rnll counhouses can be fe·adapted for other uses when il is time for them to be rcpluccd. The key ingrediellts for succcss are the intefC.'iland concern of dt i ~c:ns who will not lellhcir historical Imd IL rchlteclurnl heritllge die. M learn ed In Indio!lfl. wi th respeCltO ulder buildings. some history eannO! repc:1lI itself. •

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LII/I II/L /llIllN

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Cole Portl. y tenure Il,~ prcsi<knt of the Young LnW)'cn;' Section is complcuxl. As ] poodcr !he c\~nts of the past year, I am ~mindcd of my initial jour. ney into the legal profc.~sion. I remember my three)'CIUJ of Inw school. During those years. I thoroughly cnjf))'ed f1mny of the relationships thnt I established wi th my clll.Uo mnles. Many of those clnSS1lIntes hllve 10llg ago "n~1

out," bm for mnny who began ht ..... school directly 01.11 of college, they I'Cmnin :1 young Illwycr for (lne nlore ycllf. Ench sprinG some of these former Inw school classnuncs of mincjourncy 10 the heaeh 10 pillY golf, l'le.~C I1rc fric:nd.~hip~ thai will endure forever. I appreciate the

fellowship of thc.'iC JJU! n. Not surprisingly. Cllch one of them has made Il mllrk in the leglll profession, AU of

them art very bright. wilh rny being the lone c:xCt:p-

lion, lind they thoroughly enjoy their chosen proJes. siol'ls. A few of them conccnlrnlc on the plaintiff's

pmctice of law, a few others primarily defend ci\ il cases, onc is a corponue IIl10rncy, another has a ml:11I town practice, one dabbles in l)Olitics and real escote, Ilnd onc is even II judge. Elich onc or these men lecog· ni~e~ Ihal Ihey huve been bles~ed in their CUfCe/'!i, Soon. neither I nor my friends will be considered "younS lawyel1i." We will become hlwyers who uc "young III helirt." A new group of bllr lIdmittees will

tnkc our pltl(."e$, It is my hope tlmt these new lIdrnitlCCll will bond logether ru\d oolllh'lue the heritage estab· lished by young lawyers long ago to promote the honor of the profession of the low, r1)l1unately. I am passing the lelldc:rship of this aroup 10 'Ihdd S t ",hm~yer, a Mobile 1:lwyer who has already been inslrurnentnllO the YLS by herni ng the re.~ponsibili. lie~ Q~socillted with the SandestIn ~ml nlU, 111i5 yenr's sernlnflr, gpeliIlieudt:d by Todd, unmcled 1~lcndllnL"C lurg. er thllll llllYof our past seminurs, 11lt~ eLE prognull li nd IICtivitlcs at the Sandesti n seminar were d'e best I h;lVe lIucnded. A )'OluiS 1!\I~yer frolll Georgilt who WitS drown 10 lhe seminar comrnemed 10 me. " I'his illU'IU\7.ing!" TIle young lawyers who WQrk tirelessly are amazing! Such n legl\Cy was born Ioog before my in\lOlvemenl and will continue long after I am aooe. Young lawyers POS!iCSS Ihe energy lind the Yi~iol\ 10 IICcornplish great Ihing~, I~ some reason, I have noticed thQl1I.'l some IlIwye/'!l lIge Ihey become more cyniclIl. believing thut Ihey CUll no longer hllVt un impncl 0 1'1 our society. I reject slIch II nOlion and wlll remain comrnltted to lmproving the li ves or thOse Mound rile. My service as presldenl or Young LII\\yers' Section providl:l.I me with an appreciation ror our proression, Thank you for the oppol1unity to serve, •

The IIOftwlre dOiliinod by lawyer' tor I,wyera Wo clln mllko your child l upponllnd uncontOl tod divorce Cllleilla elllY 811 ", 2 ." 3 .. , 1. Enior Ihe Caae Information 2, Print the Documenll 3, Filo with Ihe Coun C/oIII " - " " II! _ .

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Ready to a8\. tim. lind money? Uncontested Divorce In Alabama 2,0"",,, $595 Child Support In Allbama 2,0 "".""",, ..... $ , 95 Dotll pr~uet, 1IItlllde CfII' RII1II 32 Child SUPPOrl CalCulator I'MI

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334·244-2983 DATIAGLIA LAW OFFICE

302

SllPTIlMHEIl 2001

•

ALABAMA

Statistics

STATE

BAR

Interest

Number silting for exam .. ... .. . .................•. . •• . . . •... . . . . , , . , . , .. , . Number certi fi ed to Supreme Court of Alubnrllu ........ . ..•. . ..•.. . .•.. . .•...... CcrlificlIlion nile •.......................... , . , . .. , .•....•.. . .•....•...... Certification Percentages: UniVCIOSil) of A lflblimn School of LlIw . .. .... • • • . ... , . . . • •.•.•• . • .. • . , . .• . • ... Birmingham School of L.uw ............. . . .• .. . ..... .• . . .. •• ........ . •.. . .. Cumberlnnd School of UIW , , , , ......... . .... .. ...... . . . ..... , , ... , , ...... , Jones School of l..aw ,."." ... , ......... ........ ..... , .. " ........ , .... ,. Mil e.~

College of I..uw , • , , . , , •....•.. . .. . . ... . ..... . . .. , • , •• , •. , • , •• , • , • , •.

"/I/c/mlu ollly those

sllcct!s~:ful/y

349

158 4.5.3 percent 65.5 percent 23.5 percent

64 55

percent percent 11.4 percent

II(I.ullll; bar exam (///(/ MPRE

For rull eSIUll slllHsUcs ror Ihe Febrllil ry 21MII CSllm. go 10 WM ''W.lIla!lIIr,lIrll, click Ollt th e " Adll, lss lolIs" stcUon.

lIli

"Mem bers" II lId Ihell check

1111

"111\1/1/1111/11

3. 3

Alabama State Bar Spring 2001 Admittees Albtrl'iOtI, She", Michelle

I)ru~-'IlI. J~)'11C

i\ luandt r, Amy Noelle

I)UIIU)', Stepho:" J~/TICII

A lon~o,

"ote, Dnid Allen

EdlO'linh. ~IiUbtLh Keyoold:l

Kenl. Robcr1 Andrew Jr. KlnlC. Soodl1l Dcni5e Kirby, Carey Neill

EIUOII, Emml!u Woodward 1-:1115. ManheYo' Terrell

Kltlnbtrjt. Eli/,ubelh Alliwn

Redd, IlilIUId

l.alllhf ri. Pl'Ilnk

Andrllw, . Dlvid \1khllel

H C1lut llt, JOKph Dwayne

l.allt. J()jhu a JOnel

R OIU~, M~uhew

A lkhl!l, VK:kie Salon

"·ord. Kenya Sari

La na. Erica Lynllt Tucker

Roth , S.IIIC~ Mlirtin

AJ'ru. Chad Wayne

"·rlll\kow~ld .

Lauderdllle', Kenl Michael

Rum .., Jelhl'l,) [)w" lu

IJll cr. ChIll1C1 Ar1hur

"'Nnch. Tommy Allell (:lI rrlson, Jeuica Lynn Mtdtirm (~cl1rr, Mnubew Shane (:colry, Onna I'osey (:U, Hnrlleli ll Goodwin, Jennifer Leigh GrIlY, Colelle Ann U!IlTtlIl (;~ n , Mlilihew Sinfforo

l./Iwllltl\'e, Alln !)ay

Muudlel, Alc~lIOd(r 'Thylor

Ramon Edward

A nuuon, Silly BmwC'l'"

Andtl'MlII , Richard l)earmllI1

11I.1Ii, Jamel! AIM Wi lwn Ih,rroot, Chllrl« WillinmllOn IInrlow, II ~ U .

I)~v l. A~hur

1'rnolhy SCQII

lI e rlll~nehl , R eb«~~

Lynn

lIerry, 1!i!1)Ibelh Imloll· Mel,on IIln ckllloll. EII1J1bc;lh Ilnrswell 8111111, Selin I'mrlrk 8001h. Pn:nll~. a.ri~lopher 8rllndon. MlU'y Kale Cochmne Brown. Ddrdra JeneYlr Brown. ThonUl~ IIcnjllluin Brya nt. Anna Laune Burke. I'aul Willard Carr , Danny Daracll Ca rroll , GwrIlC I>c:lbcrt Ca rter, Marcu, P~Jmer Chh Mblanl. SanjlY Kishin Cllu k, Daniel Kcvin

Richard S,aniJlaw

C UIIII" Rllilini lI unrk , Sharron 1)~Jo IMe, Wen(ly Leiii' IM I, I)el:r/:lie Rtf!ve¥ IlIl.Iullton, Brian l'aul III,rrls, Christina Mwie

L.e.~he

l'Ol'e. Ricky Lynn I'rlCt, Jeffrey Brian ~Iu Sr. Robl nJUn , GcnldlllC Williarnl

lliIon

R y~n ,

Lcdheller , JIl(ly MllChelle

AIiMn Tro..'bri(l¥e I( yall, Ka,hy Ore", Dancy

Liggan, Chorle, J811011

Sa nd ers. K!lIdah Jnm~1

Lunl'll, Billy Moloy IAl pu , Temo

Su nford. Kr!~I! Schll' lIt'r. ROil

Mmll~O Il . Daniel WilkirlJ. !\1I1UhewJ, Riehanl Frankli n Jr. Mny, Chri~linD l..iIul'l:n

ScolC' n. Sarl'lh Mnlie Mlrfert· Fletcher. Shc:rry Aim Sh ~w, MOl'Th Lonnie Jr, S lm~, Patrick O' Brinn

LII7.11rtJ.~,

Juon Auron

MeAII)tcr, Curolyn Ann MeC"Ws'er , Anthony Orian McC" rl y,

"~t l.cc

III

~1L{:ury, Judlrh IIDn~ McKinnon, Jun~ Shllwn

M e.~!lCr

Smith, Robert Barl Jr. Sn,lth, Ronald Wayne Sile lle, Lane ThIIc~eray SIHlrlh'lt, Antonio 1>eIfQl1jia Stunrurd, SQnJe$ Anhur Jr,

Ih,rrold, 1'homllll Randolph

McWhirter, Julie A"n

III'y"ft, Janle~ Mmuhew Jr. Hevley, Kathleen Ann

M~tldor.

W,lliam Shane Miller, Holly Suc

Sth'WII, Thmmy Lynn StCNhlard, Sara E, 05Wllld

lIerrh'lItoll. Charlci Michael II leu. SlW'ph Bryllil

Miller, John Chri~IOI)ller Mitchem, JIIJ'ed Hdwanl Mlttlemlln, Und. Ruck

S ....lIInH, l./IrI(:O Ibrrbon 1\oylor, Anlcln (,'h;Jllne

Cmnploll. Jeffrey Mlchllel CU llboy, 1110111P~ Joseph Jr,

II lnSOIl. Melanie Darlene Olan 1I0ldcn, Kevin S'IIC)' 11011, L. D.

COOk. Curol Dialle COOk. CI~y Conley CrnblJ . StACy Cll1ulIcli

1101101'. Mi chReI Ouy 1l00d, Shelly Dcni~c lIudskll111l1, Knrcn Knthlcen

Moore. Charlollc Y. Trimble Moore. WilliMm Jcffrey 'I'hollll,!;on, SlephM Wam:':11 Morrisun, Ramona Johnson MOl1nt ellslle, Will iam Rundolph III Tlnlll,l, Clny Alan Neff, Jason Carl '!uw l1se nd , Tyfflne

Crlllidock. Micli l1ci Jerume Crllwrllrd , Lj~~ l.ec

HuffStutler , Todd Lloyd li mIter Ivkt r, Nnumi Anne Cohen JIII",lk , JOi,nnc Murin

Nichuls. VifJIinin Lynn NiNol1. KCrIIrClh ll ilroid Jr. Norrl~ , SUSIln t ee Ilcmllu\

'Iucker. Corrie EJilKbelh

Jetl, I!~k I'~ul John!l(III, Kri~lln P.Jiubt:th

I'",(c. Joy Ruth I'Qit~ . Shannon enoil

Vo llmer, J8me" Ourke White, Daniel Jay

John§On, M ~lIhtw Rnleiih Jones, Mareu~ Nolan JudICe. Nicole Ltah

1'lIrrJllii, W~~n Mil cheLi l'al'SOn. Nyya Conny$O l'auel'SOli. jnmes TaylQl'

Wil clI,\:, DcIT)' Oli'e WlIIIMn", Fnnklin Gene WlIwn, Julie Louise:

Keck. I'aula Waynell Kelilly, Christopilcr Robin KeUy, 1'homM Fmnk Jr.

I'lwllk. Ruth Tel,lIe I~vy, Keltb J..:kson Plunk , Molly Kalherlne

Wlnttr. lrvin,

Kell'p, PIIul Mlchael

1'0 01, GI'l:IlOl)' Mitchell

CrowSOIl. D~rrle1"'lroril Jr. Cunn l" lIllIu" , Samh A. J)"lIIlulI. Anita Snnl I)I4Y, IJ renl l'hon,., ' '''urlnlC , Allison ~1 lchc:lle Let 1"'" , Laun. Lea Avel'l:U UlilinghulII, Lydia Curti. l)ILo~nl(l, Joel lee 00M. Michael Locan Orlggen, Ilenncll Rly Sr.

304

Anumi

SB PTBMB RR 200 1

1\O)"lor, ScOtI I'Mktr 1'hll"'P~, Syman!ill Chri~!een 1'hlllllll.';oll, Rooney I)arrin

'lh'lItH. David Verlln 'i'rmutt· llowdoll1, \o1 Hry BlI7,l1be,h

Mom~

Jr.

f.'1I~,M'h " ......路,lIl/1arl.""'" /lool). "'/t,~u..dt' F IIrtHWt'/1 ( 2000) urn! Nirloni,u l' """ ..路,/III966} h"sbund "lid 'a,hn.. ill.I" ..

Kall, PI""t (200I). John P/,mt / 1~7fI} UlllIIIl/u.

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Cal"" 11",,..,, Gn'l /1i1()1} tIIId

I' ChrllWplw, /JooIh /200/ }.

}<!hll I 'MJ,p Omv (l99B)

Q IIatIIh / IO'f9} (Jnd Joy R. 1'<-

,,,I/tIm,, lind

(2001)

h~sbu",1

,rdmi""iJlanc,', ""h"/f"",,,.

,,"M' allll CDlOlm

0"1'1"1 Mi".Itt/l fWJ 12()()1} utld C""ill I'!xH (1971/

11"""'''''11

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CI", C ",.. >0\ 00011 "n.1 J.N 1I000wr, h (lWU)

<I/Im",,, Ulldfo,h" ,n /,,~

fi",,, ...III 路/,,,,,. und "dmirr"JpuMU'

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K,m M 1.... (2001) "".1 I..,urfn '" 1",,,,/,rtl,,l, / !996J

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1J<lVld /IIkllflll "'"d"""'1 (2001)11'''' S"/';'~" Mllrl "'lid .....'. (1'J971 ",/mill" b",'/',.

m,"

Mr", Ol'l'lll ( 2OQ1 J "III} N"rm

Raja,IOII,III(2OOllandGarv

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"',C. /J" rk"l (1997)

",/m/rr'M "",/ ,,11('1,

111/",1"" am/llIlI/h, ... I"./" ...

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at/milia.

/t,'. /H",J IH/,rman ... ""~ __ /1001AJwIp M",* MMIr ...1IdtrWtI. IV /11/916) ",/",1"". /11/11" ,,,,,I bl'fllllf,

r"""",. ill/", frwtth /WOIJ Im,1 Hoht-n /I frrll,-Io." /lWlJ) "Jmllln "",I/aIAn

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11.11_ .- /100/). Jwdt. HlrMni W 1bI1"'.... h ( 19SJ) - ' Rklll,,;J Jamn fI .. W IWI""" III (/911:, .,,/mlllu. /rull" ~nll /llVIh"

308

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Unn/,'II'II!m. /oI,,,I!IIm (ZOO/) un,/

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11<)1,ulll Um,/,m Mluf/101t (1084)

1. I",n~

,,,/,,,/,,,. Mil I1m/hn

mlmill" ~ml/mhn

SHPTE M BE R 1001

(1978)

lAM TllucM""Y Sprll, EII/. (1001) IIIId Mu,* f)1I. /I Pifl} adm/11ft tmd A"Jbwod

51,pM .. \I T'1ro.r.pJ<NI/1OO/Jand liwy M """",,,an (lqQ7) at/"'''''' lInd M'I/'

1>t"'I'I .... C_ - . lr. /10(1) "ml Ju1l8_ 0. M C"' ~'IQJ1 (197J) aI/mj"u Im,l/m/Y<,

Stv", 1I"l" nl\'k,r /200/1 "nd IJllva ~:'"I 'na'lu' / I~) III/m/".,

""d /rill'"

h, Commlillonir b",l1 P,Ie. "dmlr,." .p..h. John P..k·1 111 bela•• hi. pllllnlillon, "CI" M.n.~ .mUI ShoOlowl: Compiling I nd Con, ... I!ng th. Mall PopulI! Cu. Mlng.m.nI SOItWI" P.ogllms:

Ron SchllP" 2CIOO IItW .4millH 'fOIII Sltermtn O,~ .. e,moflll •• with (1111 to 'ighll (fIInli.... s.pp. 01_ Wiggins " .... C.II. CClIIIM, O.rrilrn GfllI\, 0011"1 P.IIIIIII tkMIlinll CI<yI Privlll 11111111'1111

IIUI/H

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Du...."~lnl. lIolun!... laWY'f1 P'~I •• m Inliln R~ ... II

fnnklln IA4 Jlmmt

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(Iou l.. Will i,"". lee l,l,nl.1 til, 0\58 Aw.rd 01 M.rit. ""4 PII.ld.nl RU""I 308

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Amon. I~O" hono,.d 101 50 f .. r"ln the plol.ulllll Will O.kl~ M.ltOn, J,. (e'nl,,1 01 MDnlggmt'Y'" lion G. Duh. Jr. 01 Meltll • • TOil! K,l1b, with

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3 ••

1',.,litnl Mor,l •• nd Put p",ld,nl Rumo.. •••• I

PUI pr.'I~UI' WI" BtMI.V .ft~ Stili 11,,11'10". 2OO1·1Il '",Id.ftl U", Monl, I"d P,..ld,nt ·EJK1 Fr.' GfI,

, , 310

S II'T I! MIIIJR

1001

';ftI' ' Iligh.

tkIIly I:kIIIDn, .laII* Cauey HIlI!$. AMQIOII ~.IIIY HllHIM"'. AIW1vI ... .km ~, Annoston GllQOri KIIfIIljGUgII. 8o!n'I"""""", I\ep!'MI11MIve. Mart Garlll. S.rming/lllm. Brandvl MIIddo~ PleISllll elM JloCk Venabll, T,l la'lM. M,kl H!lbbaflj, AIr"f MiIIIk!en, Olin Allburn, Gorlld Allen. CI:Ittll!lOlle. Ken Tea,!, Nllf'lley. Flall\ock GIIIII, Jr . Ctrbon H.II.WId MIlc.18J1ct, Jtmif" hrWlI\ iusetloosl r...... RIjen I'&II111on, BII~ £nmell f'IIIIIrd. ..II • ~ SwIOlf a..1eI o..I.li'Wvi1lll: '.-I unit. AngtII I'Idmort. PIetAnI GrM .... I\aduIw $onIII$nIIII, IInIole St._, Ashlord ~ Raga 1IIdt1lnl, IIuutItvollt, IJ'Id W8RI!IU MI1tl\eII, Amllee $m,\h, 8um'ngI\Im

Alabama law Institute legislative awards

l_~

MII1VV~.~11t

NalalM Wailoo. IIIQloou

Walter B. Gewin award (Alahama Bar

Alabama Stat. Bar

In.thuta fo, Clf)

Commissioners'

RoiIIwt F Prltltfl, ~

Award

Alabama State Bar Judicial Award of Merit .hidge Sendrillou SIDmI. ~

Alabama State Bar Award of Merit Thome. G ~eltll. H~1$Y1lto Eklulil Wl lli.tfnll, llurrtlngillm

Alabama State Bar local Bar Award of

fiOroOIabie Howell I Heflin. T\IICIII!IINI IWior&DIt C,C, Torben, Monl!pl'llll"/ HOOOI'lbiI [C HorMOy, TelieSl" ltonoreblt Pwt 0 Hooper, Sf , ~

Presidential Award N,I'II MlQloCnQ, 8or~

Fifty·Vear Certificate Recipients Howtrd Cobb AIuIrdeI, Mon~ .leIMI [rnat MlOII, kl'l'olll(lNnl J _ _ _ lid, AINIII, GA

lto BIIrymIn. J(., SIleffitid

OfNII80lhng!ley, J! , B,~ Achievement COYr1lll'on CoIInl'/ 6ar AI$O;IRlkJn IBrI"jaml" l oyal Roy 61ectwooc1. AId(/oI.flII, MS EU9GfIII Willi. lIrabtll)'l, 61rmiroghom M !Iowdon. ArdIlulii. president, Walt" GieM Brodgll, IIo15C1f...... Mobit 811 AMoI;>non lOOt U Sins. MobIl. IIoItot Crider! CIIIniIItr, J! . t.4empIw, TN MIrvin 0 . -. 8~ I'tctens Cowrty IIIr ~1DI \John A WiUIMI FIoyO-OV. ,JI , ~ I\rsMII, III. AIcevoIIt. ,..1ICII1II) JtmtI Roy CINtv. H\«IuYIIIe TllKlIooM Ccooty liar Apje .. bon III Coy McCltIky Cooper, 1hI~ Cooper Shattuck, lusellooN, plnldonli Hovt WI/yflII Copolll!ld, Gldldln J'ITIG$ Yalrll C\lr1, AtllI1t1, GAo Aobwt Ohl'tf CoI1. flollWlCt Vitgol c.:.1 c.,." .. J( , I'hIntl 01'/ Scholarship recipients WllIII WIIIJd DNn, TIIICIIooII I\obWI E. Bullly, Mol..., ChIlies SIn! 0.., J! , ......... JIGn lICIfl GotIIon DIIkt. J! . MoI/1t. JonIlhI11l a..-.;., Cor. Juhlll &.rl\lld fdwault, 'alll/'llOl', MO ~n 0_, Bkl!llllgllam Ornl Ii. flIlferd, BIIl'IIII'¢Irm

.-.

Kids' Chance

_....-

6torgISr,..,. W,I~II'I\

..II.•

eu..-.. MelUCCI

Goodwyn fow\eI. c.IP

Yi:1Of Gold, F,II, 0IUItII. VA GoocIt. NGwtIt. O£ ~ U!.Id1r4 GIlliam. IIIKIII"IIHt JohrI W.lliam Gr",,", Jr., Huntsville Walvem UIvUtl C'irh~.II. HutlI .....II. IIobIrI E.~ G!wIIIf. tbllSY!lIl RarlleI '*111., Mon~ ItIIibItd HInrI tlIrvty, $I. ~I WIbam ~ HeIrit. ..II.• MOOiIt .HIllel AIIltlll Hencltt.. ~It Hlrold FrIi'ltlIHel' IIIII, GIriIy .khn Jtglhl HIli, MobIle .ktIn NOlI Holt. 61rt111ng/1Om Millon Jtljllltlll

S\lfltord.loynel ~. IIorIl\llgllar!l Vl/gd MtDatllti $mill\, ~ ChIlies AIIn Spu, /loIIIrIwocI Jtme. CaIYln Slo'oWdIr, Jr , IlICbcIeft

Autul v~ Swlndlt. ilH1'I01f9\Im Gtora- PtllCh TarkM'. IUKIIoosI HIIH,I(! Nell TavIOr. llu ........lI. Jo/III Cf,'WI T~ III, ~

0IIIIeI ~ YoIl• .If" M)fII(IOIMIY Ourlll~~

Calm MDrc. WIll,""" MonIQOmll'/ MarrIIOO BohIr/iI WoIu.m, MomDQII'ItIV IIoberl Von Woo!d<odgt. Jt. TulCllooll Hubt!1 HlMIy WI9»- GaoI(Ien

E~lIll" Howtr, tiu/l~1I1 Gtoroe WutqUln HoweI, Jt., AihlYlIII, NC Retiring member,

Board of Bar

Kury JItk ~ Sl*fOOld

mcr..l1IlOWl Hinlir/, H¥tseIIe 'ItI;lmp Kill JIOOM J( , 8esMI\'IIII ItotnIs 6rocu ~ ArcIIcnuI, AI. Albof18orl\lllo Jordan, DCJ!tI&n Chirll' ludlord Kerr, MoodY BrICI Koy, 8irf\1ing/11m Jo1l'l ThomM 610, BlmwQ/Iam RobIfl ..... l~, C.lfon,on ~t I.OIoHt lilfllfthll, ArmIon kvn J8m8I t.IgIoRI, MobIle DorIeki Ndll1O!lltlhemtbntll Wibuf Eo:IwItd ltwi.. 8mmngll8m JRN. Edwin LolliS, Prftlwille liar Hunt M"'~, J( , 8orm~

Examiners GII'/ G StlMo. AMII,Ofl

Retiring members,

Board of Bar Commissioners &..tnt S Sapp, TuskeDM 6r_, Bmi/llll'ol1l c..n. O'ReIr, NI. MolIoIt

MII:'

PI' N&lton, Ja!pe! Jarnllt E Wilh3mJ, Montli'Jlf'lef'\'

OfIYlf F WOO:!, Hamilton

PtI'nII S ~, 1IlnnrngIwn

Root W WIIIWns. J!,. Cullnn"

IIoIIIrt HItNIIon ~ AI/IIOIt frfntll II\I,Itr McGil J! , ()pp 0..' John MIIdoI, III, Chlttouesvo", VA Ottlev Melton. JI , Mon1gom11'y lletijtmon MotIc Mille! ChIlders, Sem... P...I JlCklOf\ Moller, J(.. PhenlK CIW lot,l. Poe MoGle, fayett. Jo/ItI S,~ MoI"tll, ClllClOOId, OH EdQIr All Nelson. Mollo,. .Ioffl AaiI\III'IIoUipS. AnnIJIGn Attl!lllkl Adwdson, GreembDfo Fw'lt 511,," A.1dIey, Jt , Bumnjllm GeI1ge [~ IIIYtft. Sprn;jlield. VA Wil lI Coleman 1Iobo01Of\, DesIiO. It Wol lam HoI'II'f AIitSOIl, HuntSvlllo Willam MOI~ RuIH~ , J(~ Tuskegee ..Im$Ih TIIIdcIeuI Slilmon, MonI(/Dl1lelV Willlm HewlII SMdorI, N4Wtr1ll, 1

J Mt 8tnttt. 0peIib

WtbI,,,

Cr\Jr4IIOn SriIy, ~gMIIIY

Special recognition .10M C Clalto. Monl!lom"y, chI~, Commlllet on All8l1llli18 Dilll\lt~ flelOludon

JoMco/I A MoIrIl, Dotlwl, dIIIr, .......... Reler1" Servce CorMIiIIM

Alabama Stat. Bar Pro Bono awards (Committee on AccelllO Legal Servical) WoIlotnI H Rot. ar-rtIi.lIO!1Wt_dl &.rl.owru.lI!ruw.tl.110m & K~,

8"~ lr"",""'" E<Mlld fltlilll $aula, Gun BrMnll, Fl Thcrnt. DltIOl1QtOfl ~, Jr , s..lOtI. R. l.WIoII'lHy 01 AI8bImI SchotI 01 Uw Public; .,Ii)'I, WoIlItmI Sibley, J(,. FlIffl1O!"I}Ion ~II .. MI I.tw irllt'M. (ltw ItWCJrt _oj

11I11/I/lI\llllnllH.

311

Alabama's Legal Services Programs Receive Significant Grants from the Alabama Law Foundation

indy thoughl Thm Wll!l It nicc guy. He treated

her well, had 1151<:"d), job and didll" mind nbout Scott, her son from her previous marringe. In ftK.1, after Ihey .1101 manie<l. he WHOle<! to adopt the yOllllg boy. It setlllCd lIS if things were finally going Mindy'. way. Then a har5h reality hit her. At\er four yem of wluu ~he believed 1'0'115 a good rruuriagt. Milldy foond out thnl Tom had been sexually abusing her son. The Inull came out wl~n 10m tried 10 molClit ooc of SCOU'5 rric:nd~, lind that child told his mOllier. Unfonunmcly. 1bm will probnbly end up in II sex路 offender lrelllmcnt progmm and spend little lime in jllil. l.csal Scrvicc.t of NOrth-Centml Alabama is handling Mindy', divorce and working to ensuI'C that 1bm is denied ni l visiullion with StOlt. APllfOximntely 1,000 people, like SCOIl and his mom, will m:eivc free lellal hdp this year fronl Alabnrnll'S three Icglll services "mgmms. thanks to the Alnbullllll..nw Foundntion '~ IO!.:I'A (Intcrest 0.1 l.nwYCI1l Trust Account~) grunts. I..c:gal Services of North-Ccrllml Alabama. Legal $c;rvices of Metro Dinninghllm Dnd I..c:gnJ Services of Aliloomll are non-profit orgrudwlioos that provide fn:e Icgal resources 10lhose in need. Their lawycrs ami supIXlrt stuffs give Alnballlll'S poor II voicc ill the jU~ljcc systcm. This yeaf they received II loml of $42 1.875. 44

312

SIlPTBM D 1! R 1001

percem of IOLTA intl1u. The majority of this money will go 10 fund projecL~ that proIOClthe victims of dome5tic violcocc and abuse. Most of lhest victi ms are women and children. irmocents cllught ill a cycle. The Legal Services progJ'l'lIllj give them renewed hope. I..c:gul Servic~ of Nol'th-Cemml Alnblmn is bll..'iCd in Huntsville wid serves Madison. Morgan. D illman. Jackson. and Umestone counlies. TIley received $8 1,000 from the foun<JalKln 10 continue serving viclinlS of donleSlic vk)lcncc. 1110mas G. Keith. C}loculive director of I..c:gnl Services of North-Centml Alabnma, rccogn ites Iheir relationship wilh Ihe Alubmnll Luw Poundntion lIS;"\ partncr$hip vilnl lo their progrum. especiall y their domcslic violence work. "Evcl)' dllY we see victims of don~tlc violence who despc::n'llely need our help." he said. "The IOlTA funds help us ex plnin to them their ri,,'t15 and offer our resources like legal representallon. 1be foundmion hus supponcd AlaoollUl'l legal services Im>grnms for over le n yenf5 willi IOLli\ gnull~. but Lilis sul,!>OrI is now more imponant Ihlllt ever. Alltltree of lhe I..c:gal Services progrnms nrc fc:dcntlly funded. In 1995. thi~ fundillil Wll~ cut. Whilc their ICdeml funding is now ctttping back up, these OI1W1izalionJ depend 011 IOTLA money 10 supplement these funds. 1bc I..c:gnl Services Corporation of Alabama i~ based in Montgomery and serves 60 of Ihe Slate's 67 cou ll1i e~. TIlI~y received $259,875 to continue their do mestic violence project. ExtcUlive Director Melinda M. Wntcl1 ellpressed her gratitude 10 the foundation and kllow. that their program could OOt exisl without the foundation'S supH

pon. ' 'Thi ~ gmnl is abso lu tely vital 10 our work providin8 free legal services to low-income women nnd children in domestic ftbuse situmions," she 5aid. ''The Alabamb Low Foundation has su pponed U8 for yCRT3 and allowed us 10 help Ihoo n nds of women and children escape life-threatening silumions:' Legal Services of Metro BimtinghJun serv~ Shelby and Jefferson counlics and reedvcd $81.000 from lhe foundation Ihis ycar. They will also use the funds 10 continue their WOrk with domestic cases.

Kenneth Cain, Jr. is the executive dlreclOl' and said that they liTe alwllY' in need of ndd it ional resource!. "There nre n llilie number of domeSlic violcnce ond domeslic relations i s~ UI:~ in the BinninGham-melro aren," he silid. '1 'his Bmn! enables us 10 !Ierve Q population who enn'l offord attomeys und would otherwise not receive Msistul)Ce," This yenr approdmnlely $ 1 million wItS given in Branls, and since 1989, the Alnbamn Law l~oundal iOfl has provided over $ 10 million in i l1lnl' through the IOLTA progttUI1. With the continued distribution of IOLTA grunts to the Legal Services programs nnd other organi1:lItlon.~, the found atiOn fu!1h el'll ill! mi$sion to protect innocent future s and help 1!'lIke dreams come tOle. The follOWing OI'gllnillltiOfiS also n:ccived gl':ll1lS Ihis yeM from theAllbaln.u Luw Found:uion's IOLTA program.

Legal Aid to the Poor: Legal Services Corporation of AlubaUlll.................. ............ .... ............... $259,875 Legnl Services of Metro lJ imlinghnm .............. .... ...................................... $81.000 Legal Services Qr N. Cel11ral Alabama ......... ...... .............................................. $81.000 Alabama Stllle Bm Volull1cer Lawyers l>rogmm .............................................. $85.000 lJimlinghum Volulltecr l..ilwyers Progrnm ..... .. ......................................... .,........ $76,650 Mobile OllT Associlllioll Volunteer Lnwyers Progl'tllil .............................. .... .....$76.650

Administration of Justi<> • Child Protect (Montgomery) ....... ......... "" .... ""',, ................ .... ............................ $7,500 Alabama CoU!1-Appoinled SpccialAdvocme Network (lroudalc) ....................... $3,OOO Ahlbuma Di sabilitie~ Advocacy I)rogtllnl (l 'useuloosn) .... .... ........ .......~ ........... ,$62,500 Coort-Appoilllc:d Juvenile Ad v<>cmc of Marshall County .................... ~ ........... ,..$3.000 The 'l'uscalOO~:I Vilitalion Center ....... .................................................. ~ ............$26.000 The Baldwin Fnmiiy Violence Center (Robert.<;dnlc)..................... " ............... ... $10.000 '11C Fnmily S IUJ~ hlne Center (Montgomtry) ............................. " ......................... S5.000 Admillistt'mi ve Officc of ourts (Montgomery) ................ , .......................$5,000 Equal Justice Inhintivc (Montgomery) ........... ""." ... ,......... .......................$80,000 Alnbama Prison Projcct (Molltgomery) .... .. .. .........." ........................................$55,000 Lc:udel'llhip Montgomery .............. .... ,.. ,......... ................... .. .. ........ .. ..................... $ 10.000

I..aw-ReIated Education: YMCA Youth Judicial Program (Montgomery) .................. ,.............................$ IO.OOO Tuskegcc-Macon Coumy YMCA ........ ......................... ,...................................$ 10.000 Boys &. Girls Club of Limet;tone County ..... ................................................... ..... $S.OCXl Sumter COUllty Dhtrict Court ....................................................... .. .....................$ I ,500 Alabanla Center for Low and Civic &lllelllion (Ilinninghnm) ......................$ 12,000

Law Libraries: Bullock County ................................. .. ,............ "........... ................ ................... $ 1,193 llu ntsv ill e- Madi so~ Count y ............. ......................................... .... ........ "............. $ 1.093 Jefferson County ............................ ,.. ,.................................................... ,$2,OOO Montgomery COUllly ................. ,......... ......................................................... ,$3,500 PcIT)' County ........ , ............................. ............................................. ,........... ,........$2.000 Pike COlinty ...... " .. , ........... .......................... .. ........................................ ,.......... .....$2.500 Supreme Court ... .. ...................................................................................... .......... .$9.000 N

............

UALaw School International Program More Than Doubles In Size hc Univc rlity of AhlbmllP School of I..~w wi ll host 15 intenlfllionill ~hltle nt~ durina the 200 1-2002 school year I1S pan of ill! growing Intcmmiomd Graduute Progmm. 'Ille progtfllll offcrs attonley~ from other coulilries Ihe OpjlO!1UnilY to earn II MOSier of Luws (LL.M.) degree nncr eomplcting 24 houl'li of eoul1ie work It thc low school. SlUdents may foc u ~ on developing knowledge in specific urens of the luw ~ ueh IllI i~tcrllll' tiOllul bus illes~ Inw or em'ironmenud hlW, or they may tailor a custom course of study to suit individual interests or ImlfCS5iOntil needs. This year's chlss of intcmlttional lawytl'li hits more thllll doubled in sile since la~1 year'.~ elMS 3nd inc ludc.~ studc:nts from Sml il , Bulgarilt, Chinn, Germnny, Indio, Korea. Sweden, Switzerhmd, ll1ld TIutilillld. '11tc progmm provides our students with IlII opportunity 10 meet Muomey5 from abroad ond challengc.~ all of IJS to a gre:ater awure· uess of our eXI)lInding globul ceonomy," 1i mothy l'loff, Gordon ROSl:n I'rofessor of Law lind director of the IntenlatiOllal Gmdullte I'rogrnm, remnrked. Eurollmelll In the LL.M. prognull is limited. Vi ~ i I I\lW\\'. I(II\:rfO.(dll/lllcf for more: iuformlttiOfi.

TOTAL ............................................ ,......... ,........................................ " ........... $976,3 11 /1//1/1"1\11

lilt/II.

313

ice Ma",013 State \lar License/Dues \nVO QClO"'"\ .1$10' ••.,.,llollltl'l :1\1.~ • ouE. OCTOBER 1, ZOO' •

-...~-

AU\BAMA 314

S BPTB MBER 2001

Tax-Deferred Exchanges of Property~ SELECTED

ISSUES

hi (,1111/ A' I {II", \ III

n article on

Ia~-dcrcm:d

exchanges hll.'i no beucr plnce to

start than whh the definition of nn "exchange," II Simple yet often mi sunderstood concept which clarifies the

IlCCcnily of using a qualified intermedi· ary. A.II "adong"" OCcurs wlren" laxIHI,,4!r COIII'tyS ProM")' (,1111 "nUn· qlfi5/II!d profH!rlY") 10 /l.t!

S(IIIIe

pwly

from whom SUcll tax/NI)'c,. (j('{IU;~$ "rt'fJ/(lCt'III(!1I/ fJfVlltrty. " Contrnry to whot rt'IBny tilxpayers believe, if q tax-

payer conveyl relinq uished properly to n purchaser find aCCi uires rc plllccllIclll pmpcny rrom sOllleone ot her Ihllll the purch:lscr, nn exchange hilS nOI occurred even ir the sale !Lnd purchnse close simultnneously. Absent nn exchange. sec-

lion 1031 i~ inapplicable: :md the IMipaycr must recoHnil/! guin ror income: lUX purposes. Prior to the 1990... the rcqUirenu:1lI of an "exchange" crt'nted problel11~ in thllt a taxpayer desiring tax dcfcrnd uude r section 1031 was forced to require that the purchaser become a pany to the taxpay· er's acquisition of replacement property, as only then would the lallpayer be deemed to hllV(: conveyed propeny to the ,same pany from whom the tnxpayer IlCquired replacement propeny. The pur· chllStr would get nl:tWIlis and hire Il

lawyer, complex dOCUII~nts would be drafted, etc, Fonunatcly. these problenll were aile· viated whcn 1031 regul:uions l uthorized tnc usc or a "qualified intermediary" [0 acconullodate a taxpaycr's cxchange. l'ursUWltto ~uch re8ulatiOfl~, if prior [0 a snle or reJin<luished propcrty a taxpayer (i) uccutd lUI exchange agrremCIlI wilh an intermediary and (ii) assigns to the intemlediary his "rights" ul1d~r a reat estllte ~aJe agreement (such illsigmm:nt uceompnnied by wrillcn notice thereof to uti pnnic~ to the purchase agreement). Ihen for income tux' purpo~e~ Ihe Uixpny· er will be "Ikuled M if" he conveyed the relinquished properly In the intermediary fotlowcd by the intcrl11edinry'~ con. veyance of ~uch properly to tile purchaser (uhhou1\h m the closing Ihe tuxpnyer mlly ~il11ply dced the relll1quishcd propeny directly 10 the purch/Uer). Likewise, if prior to the t:Lxp:Lyer's acquisilion of replaccment properly the tllxp,yer Ilssigns to the intemledi:Lry hi ~ "rights" undcr II It'III estate purchllsc 'areemem (such lIuignmentllCeompanicd hy written notice thereof to Illl panics to tnc pur· chase Ilgreement), then for intome tlUlO purposes the taxp.'ycr will be "treated as ir' the inteml00iary acquired tnc replacement properly lind convcyed ~uc h proper1111

1/1111\11

11UlfN

31'

ty to the UlXp.1y~r (although III the elosing the seller may 5imply deed the replucl:fnenl llropc:rty directl y to the toxpflyer). In orner words. by execlling IUl exchange ogreement and assigning to the intcmtedinry righ,", under real estalc 1Illclpun.:hose agrten\entS (with wrinen notice thereof to all pillties to such agreemenls). the taxpayer IJ "trelltcd as if' he conveyed relinquished property 10 the aame pany (the intermediary) frolll whQm the taxpayer ACquired replllCtment property (lUI "exchange"). By rollowing the reglllatiQns, nl) longer must II taxp.1yer reqllcst th:lt II purehru;er become It Ilnny 10 the taxpaycr'~ acquisitiQn Qf replacement propel'Y. Neithcr the purchaser'. cooperation ner participat ion is I'c<luired fQr IlU rposc:.~ or the lax pnyer's eJ{Change lind for this rtllson there is generall y lie need 10 insert Illnguage in the real estllle snles agreement Implying otherwise. ' 1lere lire generally three major types of exchanges: n "S;IllUJtIl ' uCQus" exclllmge (tax payer conveys relinquished propel1y lind si llluhancou~l y acquires rep lncefllenl property), n "defelred" exctumge (taxpllyer conveys rcli n CJu i ~ hcd property lmd subS!:quemly uC<Juirc~ rephlCcmen! property). nnd II "rcvCI'llC" exchange (tllxpa yer l\C(luil'!s re]lhlCelllenL property und thereafter cQnveys rellnquished IIfOPCrty). Rcgurdless of the type of exchllnge being conducted. to usc II qlmlified intenncdlury the tuxpuyer must execute all exchunge IIgrecment and assign to Ihe intenllediary rig.hts unrJer telll estlltc saleJpun:hilse agreements (generally with wrillen nUtice Qf lIS$ignn.entto all llar1ies thereto). With rcspccttO deferred exchan&es, the 11lXp.'1yer must also (l) "identify" replocement properly -.ithin Ihe 45-<lI\y "idemification period," (ii) lICquirc replacement property within the "cxchange pcriod;'aoo (iii) avoid "cons:ructive receipt" of the salcs proceed5 in the IIl1::Intimc (which i~ usulI1Jy accomplished by plllCing in escrow the 5alcs proceeds with the intemli:dinry pursullntto IUl exchange ugrcement whicb restriets the toxp;lyer'li IIbi1ity to receive, pledge:, bon'ow or otherwise obmin the sille IIr<)Cccds). The "identificatiOn" rules for deferred exchanges arc tricky. Within 45 duy~ .Oer the SIIle. the Illxlmyer must identify one or nlore 1l1'01>Crties lIS IlOlellthli fCl)lllCclllent properties for Ihe exchlUlge. A laxpuyer Illll )' identify up to th ree properties without worrying aoout Iny ndditiQIlIII restrictions (the "three-property ru lc"). If " Ulx pnycr idcntifies morc tlmn three propertb. then the t01ll1 VAl ue of lill identilied property limy not cxceed twice the

Do Yo u Need a T ree Ex per t? .. T ree Vll luatio ns to I)csticidc OU IIHlgCS to T ree Carc ... H.egis tered Fores ters

... .. .. ..

T I'cc Protection Ti mbcl' Trespass T ree Asselis m c n lS Certi fied Arboris ts

Sou t he "11 Urbllll Forcstry AS50ci1lH~5

205-333-2477 P. O_ Dot 1403, No rltll)Orl. At 35476

3 10

S I3I'TEMH6K 1001

vnlue of the relif1(IUished property (the "200 pe~ent rule") unless the taxpayer acquires 95 peret:nt Qf everything identified (the ''95 rule"). If an idcnt ificatioo rule is violmed, the exchange will failnnd 100 percent of the aain nMt be recosnized. Any propeny lICquired during the 45-dny period is deemed to be K1cnt irll:d. Thus. the identification letter need only identify properties which I11l1y be .:quin:d after the end of the 4S-day period. He.....cver. for IlUI'JIU'CS of t/Ie thn:c-propcny rule aud t/IC 200 percent rule, IIny propcny IlCtjulred during lhe 45-day period COUnts. In other words. if a taxpayer ocquires one ]lfOI>crty during lhe 45-dllY period lulti idemilies three more properties, then thc tOlnl value of the foor ]lfOI>Crties cnnnOt exceed twice the Vllluc of the relinquished propeny !lbsent compliance: with the 95 percent rule. ' 1Ie identiliclltion must be specific. Wllh re~pcetto condQminiulll unitl!. for exnm ple, a IlIx]lllyer mll.~t identify II specific unit. Stntina " u \luI! al Shoreline Towers" will not suffit e. Also, within the exchllllgc period the tuxpuyer must acquire substnn· tililly the same propeny liS identified. If II tuxp;lyer identifies n unit, but acquires onl y a hn1f Interest in the unit (the other hnlf for example being ucqulred by n spouse. friend. cte.). the Imlf inle rest Is ItQt substontlall y the same IlroPCrty as identified. In this ense regulations indicate that if a taxpayer ncquire~ nt leas t 75 percent (in si7.e !\I!d vulue) o f whm was idClltified. thcn the acquired intcrest is subSlllntinlly thc 5ame as whill. was identified . Obviously, ira tllxpaycr intend s to acquire merely a half intcrest. a hnlf interest (or nt lellst no more lhun un undivided 66.67 pereent interesl) should be identified. The "exchange period" con be tricky. liS well. Most taxpayers believe the eJ{ehunge period is six monthS beginniog wit/t itle dme of the 5nle. Aetuall)~ the r'~(hu"ge ptrlod ellds 011 1M turfier of the 180lh (1(IYf(ll/owlllK Ihe $(Ile or Ihe (JIlt dmr'fOl' lite Utfpti) 'er's i"emllt' f(U rtl/lmfor fhe )'fmr III wllfe" the $(11,. wus place_ Assume an individual taxpa)'cr conveys relinquishW propc:ny on December 15. 200J. H i~ exclmnge period will end on April IS. 2002 (approximately two mOll1hs earlier than the 180th day). absent an exlen$ion of the due date for his 2001 income tux re mm. Individunls. pnrtnershipll lInd tru~1S m u~t ~ cognizant of this rule with respecl to uny sule occurring a(ter <Xtober 15th (as the due date for their income tflX letum Is April 15th of the fol· lOWing YCllr). COI'j)()nltlolls using Ihe cnlendnr yenl for income IIIX purposes must be cogni1.lInt o( this ru le with rcslx:::t to IIny s"le QCcul'Ting IIftcr Septcmber 15th (as the due dme for their income tax return 15 Murch 15th of till: fQllowing yeur). Within the e~c lHln ac period the tllxp;lyer must acrJ uire rep laccment propcny (idemified within the 45-doy identificlltion period) e f " like kind" to thc relinquished property. Generally• IIny "realt y" is of like-kind te olher "refllty." A tlLtpayer 1Il0y cenvey timberlnnd und acquire II condominiulli unit. A tltXpayer mllY conve)' II condominium unit and nCljuire a conllne",:iaJ building. vnc8nl lot or any other realty. NO! only must the relinquished and rephw:ement ])ropcnies be of like-kind. the re l iflqu i ~hed property must hllve been held "for investment" (or for use in a trocie or busine.u) and the replacement property must be IICquired with an intent ef holding such propeny "for investment" (or for use in u trude or bu~illCS!). I pc~elll

often receive culls from individuals who desire to conduct lin exchang(, yet soon leunt the reli nqu ished property is owned by :\ partnership or limited lillbility comp,lny having OIlier owners with no desire to conduct an exchange, In other words, one partner desires to conduct an exehllnge wilh "his share" of the. sale5 procee<b while the other partners simply wafll cash, '11le problem relmcs to the bMie requiremcll1 Ihllt a taxp.1yer convey relin· quished property which hilS 1)I:en held for invcsunCll1 , Under thC$ll facts lhe p.1rtncrship, nOI its pannen, hilS held the reli nquished property, Under one ol>tion, lhe partrn:l'Ship could be dis· M1lvcd with its assets distribuled to the individual partners. 11te Individuals (who tben would be tenllnlS in common with respecl 10 the. distributed (%"()pCrty) could begin holding the. relinquished property fQl" invr:.\tmcnt, Aner the property hIlS been held ror Investment. the O\.Vl1CfIi could lIl:lrket the rcli n(IUished property for snle. Al the elosin!! lilly owner mlty conduct un exchllllge with his share of the net sales proceeds while other individlllils Siml)ly cash out. Under a 5C<:ond option. the purtncrship could distribute 1111 urKIividcd illlerest in the relinquished property to tile patmer who de.~ires to comluctan exeltunge. The relinquiShed property (which then would be owned by the partnership lIIul lhe distribu· tee as tenlllll~ in common) could be held for inVe.~trnc:nl , After the property hus been held for inve~trllent, the pilrtnership and the distribntee cuuld nmrket the relinquishoo l)!'Operty for sale. At the closina the dIstributee rnny conduc t lin CJlclrlllllle with his share of the tICt sale5 proceeds while the purtnership simply cashes out. Irn:vhably, lhe [JIUIllem with eitller approach is Ihllt the relin· qulshed propeny is either already under contract or al least alrelldy on the nwket for sale. In either case, even if the pMner· ship distriootes the relin<tui~hed property or an interest therein to une or more partners desiring to conduct tln cxch:U1ge, lind even if such distribution takes place quile some time prior 10 el05;ng, such property rnlly never 11Ilve been held "for investment" by the

individuals dcsiring to conductnn exchange in thnt it wns "for slIle" during thei r entire period of owtICrsltip, An of\en misundcBtoOd cuocept invol ves the Ilmrunt or gain which must be rtC()gni1.ro when Icss than 100 percelt or the net ~Ics proceeds ii invested in reploccllle:nt prQPCrty. Assume II lax· pllyer owns property with /Ullncome tax ba~is of $ I(I(),OOO which will be. sold for $300,000. 'JWQ things lire denr to most tllxpayers. Fil'llt. if the lax puyer sells the 1)I'O PCrty for $)00,000 lind doc~ nol conthlct a tux-dcferred exchange, tlte taxpllyer's "reaJi7.ed Bain" would be $200,000, all of which mU5t be "rccognizt'd" and reported on the taxpayer's income tax return. Second. if the: tJu.payer OOlldUCIS I tax-dcfe:rred exchnnge and lICquitU one or more rcplllCCmellt properties of tike kind at a 0051 of $300.000 or nK/l'tl, none of Ihe 5200,000 realilc:d gain need be rcwgni7.ed, as the entire ghi n is deferred under secliun 1031. What IImny tllxpllyers lind their lIc!yisers do not unden:utnd is the mllOIllH of realized linin which lIlust be rcwgnized if, in this example. the taxpayer ncquiru reploceITICIIt property IIIIl COSt of $250,000. The IllIswer is $50.000. Rellli7J:'d gain I11U51 be recognized to the extent the ~t gles proceeds of $300,000 exceed the $250,000 COSt of the replllCemelll property. Taking this a step further. if the tllXpayer sells Ihe relinquished property for $300,000 lind rcinveslS only SIOO,OOO in replacement property. Ihe entire gain of SZOO,OOO J11 U~t be I'CCOllni1.ed, 1/ II,~ /(U1H'YU does nOI rtlnl'(/$lln I'fIJllllce. ffle", plYJ/1I:rlJ 1111 IIInoull/ wllkh uceeds Iris ;IICQ/ne Ill:( basis in the rtlinqulshed pro,1I:rlY, Ille lax CtJILfeq!ltllct!S 0/(111 t'.xchmrge allclly Ille SOffle (IS Ihe /(If consequences of II stile. A taxpay-

IIrt

er does not SUlrt deferring tall under sectiOn 1031 until he has reinvested in replacemem propeny an amount which excccd~ his Income tax ba~ill in lhe rt:linquished property. A relmed (:Oncel)! involves fin:lI1~ing issues upon tm conveyance of re lhlquishoo propeny or acquisition of rilplhccrntnt propeny. Assume a IIlXpllyer con yey~ property for $300.<XXl bul

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finances S2OO,OCO of the SIlks price for the purchaser, In other words, the purcmsc price is llUyable via 5 IOO,OCK) in cash at elming with the balMCe rel>resCnlcd by the purcha.~r'5 promissory note secured by I ~ndor'. licn or mortgage 011 the relinquished propc::l1y. In thb aample many tuxp;tym lxlic:vc: they may then acquire replllC:C.rne:nt propel1y for 5300.000 viII 5 100,000 down with the balance borrowed from It bank. This iii inoorrcct, In such an exchllnge lhe tuxpayer would have giyc:n lip reli rlQ~lished propeny wonh 5300,000 und exCCllled 11 $200,000 OOIe to Ihe bank in exchange for re~ace:llIelit pt'Ol>cny wOflh 5300,000 and the purchaser·, 5200,000 promiSSOI)' IlOIC. The purchaser·s promis..<;OI)' notc of 5200,000 C()I1StitUles "boot" (50rncthing other than real estll1e of like kiml to the relhKluisht.-d property). Gern:/"IIJl y, taxpayers must n:cognil.(: gllin to Ihe eXlent of the "boot." The quC:.'>tlon beconles whether the Inxpayer nmy (lfft;elthc l"C:<:eipt or such boot by exceming u note 10 the mink. "U,l answer is no, leaving the laxpuyer with up 105200,000 of renli'led lIain 10 be l"tCogni.,,ed, ')u<payers rnny nOI ofTscllhe receipt of boot by executing a nOle 10 II bunk, 'Ib defer 100 percent of the gnin in this c.r.nmple.lhe mxpayer should CQrulidcr "infusing" $200,000 imo Ihe exehnnge fr(lnl II source OIher th~n 1\ b:mk loon !lCCured by the replnccmentpl"Openy, If properly stroctured a cash infusion of $200,000 ~hould offsctthe purchaser's promisSOI)' note and fully reduce the .'boot" in this example. Another wuy 10 salvllge the exchange would be to find a seller of rtplocement propeny willing to accept the purchaSer's promi~sory ~ote IllI pru1 of the:«lles price, fill unlikely event. Related to the nbove Is the belief of nlllny taxpayers that 10 defer 100 percent of the reu liled gain they need only reinvest in replacement propeny III amount equal to or in excess of their "equity" in the relinquished propeny, This is incorrect. For eXllmple, if a ta~p.1yer conveys relinqui5hcd propeny for $300,000, and S2OO,OOO of the snle.~ proceeds are applied in satisfaclion of Ihe IlIxpnyer's mongage on Ihe relinquished property (Ieavins $100,000 to be placed in escrow with the intermedinry), tQ defer 100 percent the guin Ihe tltXllIIytr IlIUSI not only reinvcsl lhe $ 100,000 (If net sules proceeds but must also either infuse 5200,000 of ell~h or borrow III leasl 5200,000 in connection with Ihe lIcquisillon of rcplnccmenl prol>Ctty. Changing toplc.~. In September 2000 Ihe IRS issued Revcmte Proccd lll~ 200().)7 which selS fort h II !>lIfe harbor for purposes qf sU\lCluring whll1 111(ly OIherwi'!C consti1ute an invalid ·'reverse" exchange under section 1031. As conternplmed by the Revenue Proced ure, Ihe tuxpllycr genemUy c.r.ecutt'.~ a "Quulilk-d fl.xehimge Aceommodlllion Agreemenl'· wilh 1111"E.r.ehwlge Accornmoolllion 'I1tleholdcr" (the tltlcholder). The repillcement propeny is then ·'parked" with the titleholder. Within ISO days Ihcr"Cafier thc UlXpuyer exec;utes a real estate SlIle agreement wi th It purchaser, nssigl~ his righlli under such agreement (wilh written notice to the purchaser) to a Qu.1JirlCd Intennediruy puNiUlint 10 lUl Exchange Agreement, Md "direct deeds" the relinquished propeny Ii> the purchaser. SimulllineOtisly with such conveyllnce the taJr.payer a<;signs to the Qualified Intermediary his rights under the Qualifted Exchange Acoornmodntion Agreement (with wrillen notice to the titlehol()er), then acquires the replacement ptOpCny via direct deed from the titleholder. Under IlllllltenUltivc structure, pursuant 10 an

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Blehnnsc Agreement with a Quulificd Intermediary, the IIl.r.lXlyer acquires n::plllCCment property from IIlICller and sincllhfil\COt.lsly pnrb the n::linqui~hed property with the titleholder which would hold such propel1y for no more thnn 180 days pUl'SWUlt to a Qualified Exchange Accommodation Agreement. The Revenue I'roceduTe Includes the following requirements which should be expressed in Lhe Qulllilied Exehlnge Accommodation Agrctl1ICnt : I. The tnx payer mUSt have a bonn lide intent 10 acquire the replacement l>ropeny in nn exchange intended to qualify for non-recognition of gain under section IOJ I . 2. The titleholdcr must hold the replacement propeny (or the relinquished propeny, as the case IIlHy be) for the benefit of the taxpayer in order to fllcllitate Ihe taxptlyer"s eXChange under section 10JI nnd the Revenuc Proccdure.

3. 111e tnxpnyer aud the titlcholdcr mustllgree to t"eIX)rt the liequisltion, holding lind disposition of the "parked property·· as provided In the revenue procedure. In this regard, the titleholder must be trelUed for income IIIX purpoi)C~ liS the beneficial owner of the "parked property·· until such property is conveyed to anOther pllrty. 4, The relinquished Ilrol>erty must be " identilied~ within 4S day:t after thc ncquisition of replaccmem property. s. 1be exchange must be eomilicted within 180 da)'s. With respect to the third requin::mcnl sct fanh Ilbove. um/I!nulltd IIUlI ·'m-erSI!" I!.rdUllI$l!t hlll't! nOl/1I!tII IIwhoriud by 11r~ IRS. When rcpJuccmem propeny is purkcd with II tltleho~ pursualllto the requirements of the I{evenue Procedure, the titleholder must is \rl:IItcd lIS the true owner of such propel1y for inc()ll'e UlX purposes /"lither than LIS the laxpnyer'. o.gcnt, Given this trcmrnemthe laxP.1yer has yet to IICquire the replacement ptOpCny, The taxl).1yer IlIler conveys relinqui ~hcd 1>rOI>cr1y to II IXlR:hascr (throuillihe use of 8 Qualifioo lnlellnooiary) und simultaneously or ~ubscquently lICquires the replacement propel1y fmm the titleholder (through the usc of II QUlllilicd Intenncdillry). On the f'Ollll 8824 the trnnsaction is reflceted ll.~ Qslllluhnneous exehllnge or 1\ defem:d cxch;ulge, liS tlIC CIl.'iC llIuy be, either or which I~ ~Ilt<:i fic(d Iy (IUthori'll.'<Illy the Calc Qnd rcguilltion ~, Ir the tenn!! or the Revenue Procedure are not 111el, the titldlOldet would be t.'onsldcred the tllxp.~ycr's IlgeJlt, rind thc litlcholdcr'8 ac:qulsitlorl of the replac:emcm propc(1)' would be treated as lin acquisition of replllCement ptOpCl1Y by the tll.Xp;lyer prior to the tllxJlllyer'J CQnveyance of re1inqui~hcd propcrty_ "reverse·· exeh:trlgc which in the eyes of the IRS is oot allowed ulldcr sectiOfl IOJI. The issuance of Revenue Procedure 2000-37 WM eenllinly II surprise. Evcn mOl"C surprising Willi lire release of PLR 200111025 on March 16,2001. Mnking ulong ~t()")' shol1, ru\ "Actornmodation l>arty" borrowed funds (the repayment of which was gUnn'lntt.'Cd by the taxpayer for II fee), acquired replacement propC:l1)', executed a triple net lellse of the replacement propeny to the laxpayCf, lind execUted an aareement under which the taxp.1ycr would hlter acquire the replllCCmellt property from the

Accommodation Putty. The Accommodation Party Md the IllXpnyer reponed the tnrnslICtion as i( the Accommodation Pliny was not the taxpayer's 'gent. 11le ummgemenl between the taxpllyer lind the Accommodmion Piirty made it "l'IlClir liS if the Ac(;()rnrnodatiQn p,Lrty had some risk of los~ II.nd potential for gain. Although Ihe replacement propeny was to be "parked" with the Accomrllodutioo Pany far longer thlLll 180 day~. the [RS ~. scntcd the follOWing three ffijuircments for a Mlccc.\sful 103 I exehango-(i) Ihe t;lxpnyer must derl10n~lrme its intent to nchicve nn exchange arId the propenies 10 be exchauged must be of like kind nnd for a ([ ulliined usc. (ii) lhe steps in the various trunsfer!l mUSI be p.'Irt of lin tlllegrntcd pllm to exchange the relinq uished pmpc:rty for the rcrlllCerncnt property, and (iii) the patty holding the replacement property muSI nN be the taxpayer's agent. Regarding the IIgcncy Issue, Ihe IRS upplied the "National Cltrbldc fat toni" lind sU'l'risingly stmed liS follows: With respect to the first fuclor. Accommod:uion PMY has opc:rnted and will OJ)Crnte in its own nume and fot ilS own account. The Opernting Agreelntnt of Accommodntion pMY Slatcs "Julll business of Accomrnodntion Pany will be condueted in the Accommodation PIll'IY nnme" and that "Ac(:oITunodlilion Pnny will own and hold title 10 all or Its property in the IIDIUO of AccommodatiOn Party." Consislent with its ol'erntinl ugrecrncnt, Accommodation I'llfly entered into the ~rty Acquisition Agreement, the Thxpayer Acquisition Agreemcnt. the UII.'iC, the Bank Loon. and the Thxpnyer Loon Cl'Ich in it~ own nllmo lind each for It.~ own l\CCOtUIl . Accomnlodmion Party opernles its business through its own bank accou nts. whieh nrc held in its \IIul\e and (or its account. In rKlne of the opc:rntive documents is Accommodmion l'M y referred to Ill! Thxpayer's ngellt. With re.~pc<.'1 10 lhe IiCCOnd f:lCtor, Thxpayer hM oot contlllClUnlly nuthori.,.ed Accommodntion Pllrty to bind fu pa),er by ActOnllnOOlllion Pllrty's nelions. With respect to the third faclOr. Accommodation Pany docs not trnnsmit money it receives fot Its IittOOlllto Thxpayer. Under the l..casc:, Thxpayer is obligllted to pay ACCQI'nmodation Party II monlhly bnsc Knt fot AccommodllIion !'arty's 1ICt~1\1I . Applying the founh factor. Accommodation Pliny's I'Cntlll Income under thel..case is pursuant 10 its lessor·lessee rein· tionship with Th~pnyer nnd Accommodlllion !'arty's owncr· Ship of the Propc:ny. Thxpayer's rtntal income (rom the &l1~ tenants under lhe subleases is [lIll'Sunnt to AlWCOmmodation llatty's wignrnen t o( such snbleases to T!\.\'.pilyer under Ihe nssignlllents of lessor's inlerc51J:1 in lenses nnd IIssumption of lillbility under the lell.SC!i. The nnh fllClor is thm "the ngency rdntion$hip must not be dependent llpon the f3C1 that the principal owns it," ACCOnunoootion llatty and 'J'axPllyer Ilt'C separate Icgal entities. Neither Accomrnodation Party not I!xchnnge Company is owllCd by or reluted 10 Taxpayer. Funhcrmore. lIS delllon~tmted by Ihe Ilreceding nnalysis. ACtO nunooution I'urty is not acting on behll.lf ofThxpuyer, but mtl)er is IICting for it~ own IICcount. Exchange Compuny, as the sole member o( Accommodalion l>atty. will report

Acconunodation Party'! rentul income Il.OO expcnSCII on itll lax relUm~. With res:ped 10 the sixth fllClor, Actorllrnoolltioo Pany's blisincss purpose is not to cull)' Oil the nomlul duties of nil ngent. As Sll1led in il5 opcnLting agreemenl IUld ns dcmonstmled by its lICtion~. (I) At'(.'Ol11mOOation Party is eugagcd in the busine.u of acquiring. owning. holding. leus· ing. nnuocing. refinancing and disposing of rc:u! pmpcny lind its associated [ll'rsonal property and (2) Accummoonlion llatty will ,,'Unduet its business nnd will hold litle 10 nil of Its property in its own 1IIIme 1I11d ror Its own accounl. Further. the Thx Court hUll L'Onsislently hcld lhm Ihe fjlCt thalli" tICCOmmodntor is used 10 fllCilitlite a like-kind exchange doe.~ not mean that the oc'COfllmodmor;5 allllgent of the to.xpuycr....Thus. the: fllCt that Aeronunodmioo Party is f3Cili!ating Tnxpnyer's exchll.llge of the I~rk for Ihe P'ropeny does not l11e:1II Accolllilloomion PMy is 11lxpayer'8 Rgent. ACCOrdi ngly. Accommoomion Purty is not Thxpll)'cr's agent. Since relying 01\11 privnte letter ruling has obvious ri,ks, tu.plIyef!l should strvcturc "rcverM:" exchllnges within Revenue Procedure 2()(JO.37 whenever poSSible. Ho ..... ever. in instunces where the relinquished Pffil)erty will not be: conveyed within 180 duys of the initial tl'tlns rer to the "occor11modllt(lr." a trnnsIcCion bnsW on the fuclS of J>1~R 2001 1 1 02~ might be explOf'Cd. Olanging lOpic-5 again. many t:lXP.1yet$ desire to 8e1J ooc corwtonliniLull uilil (md c:xchan¥e into lI110thcr unit on a "pre-construction" b.1sis. 11tis type of improvement exehnnge uS\lall~ pre"iCnl~ problems in Ihm the fCplnccment unil mny not be complett'(l withi n Ihe ULllpayer's 18O-dllY ellrhUlI¥e period. Unless the ta~payer n:ccivcs a deed to a completed unit within the cxehllllgc period. the exchlillge will fnil. This generally rcqulre5th!ilthe (ievclopcr C()m· plete the condominiul1l, obtain a cenificate of occupancy and close Ihe conveynnce to the tnxp.1yer prior to the tnd of the I4Xpllycr'8 exchnnge ]Xriod. [n UII Il1tCl1l pt 10 aJlevime this problem.liOl1le (!evelopers otTer to convey to lhe tnXI),1YCf' (within the IJlXpaycr's uchange period) WI undivided i nle~ in tl)e overall u!lCOlllpletcd coodominium project. &llCh conveyance to be followed by a simul-

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Ulneoos exch.hns= of such undivided inten:st for the fIClu(ll IUlil

once II ccnifiemc of occupll!lCY is obtalned. This preKntS risks. in thi~

CMe the taxpayer would "kkntify" the undivided inle~t in the unoompk:ted prtljecl. I-Iowever, under the ''step u'!lrlSllClion doctrine" the IRS coold socccssfull y allillC tlullthe completed un it. 001 the undivided inlCrest in the uncompleted project, constitutes the replacementl>n>pert y for the initial exchange. 1be IRS could then poim outthm the completed unil WII~ ndtlM.'f identified during the 4S-day period nor Wll~ it IlC(l uin:d during the ISO-doy period. Focusing on II more COllllIIOfltype of improvemenl exchange. ImUlne IItllxpayer (using Wl intenncdiary) conveys a condominium for $300,000 lind dcsi!'Cli 10 llequire II vllClmt 101 for $75.000 and con~tmcI impru\emenlS thereon lit 0 COSt of $225,000. There are three cruclol requirements. First. not only mustlhe 101 be icli:nlified within the 45.d1lY period, tho improvements mU ~1 be identified ll~ well (gcncrnll y by Illi nc hlng ihe plnns to the idemificulion leuer). SteOll!!. amoun lJ must be ~pent nn the hnpruvcmt:1l1l1 prior to the clme on which the Ulxpnyer Inke~ title to Ihe rephtt'Cment property. This i~ usuully il\."'(!omplil1hed by "Ilurking" the repl!lCtlllent properly wi lh the intemlCdi nry (I.e. the inlemlCdinry tlikes tille 10 the replacement property) lind hllving the improvements constructed priQr to the dute on which the intcnllcdinry COrIW:ys such propeny [0 the 1UXpllyer. l1tird. regnrdle,o;."1 of whether lhe Improvements arc completed, the intennediary must convey the n:placement property [0 !he tltJ(pllyt.'f 11I'i0f [0 lhe end of the eJ(ehange period. l3eforc concluding, re lated pllrty issues should be d iscu5~. Most advi!lCrs undcrstand thnt a5 a gc nel'lll rule 1llllpllyeTli may condllct a tax.defcrl"Cd exchange wi th a "reillted pliny" such as a fami ly member, II clM'pOl'1Ilion in which the IIlXpllycr own~ /I IIIl1jorily or the outstanding slock. etc. In olher words. a 1axpay' er may convey relinquished propeny 10 a re llllcd pany in exchange for Ihe re luted party's conveyllnce of replacement propen y 10 lhe tllxpnyer. The kicker is thm fot a l)Criod of IWO yeaf1l follow ing an exchange with a re lmed Pliny, both Ihe laxpuyer und 'he relMed pany muSI refl'l1in from disposing of Ihcir propen y ncqllired In Ihe exchange. To unde rsta nd the logic of this requirement. consider Ihe following cX!1Il1Jlle: Futher owns "'P:u'Cel A" worlh $ 100,000 with li n income tax basis of SIO,OOO, Son owns "'Parcel B" wOr1h $100,000 wi th nn income lax basis or $90.000. Purchaser de$ircs to purc hnse Pllrcel A for $ 100,000. Father realizes Ihm If he sells Parce l A 10 Purc hasc r, he must rccosni:.r.e II $90,000 glli n. Thus, 1~lllhcr instcad conveys Purcel A to Glib,,, f. Duh.. lIt GiIIoR , DuIa, •. 01 ". Mobilt lirlfllII c.lt. DuIoa, ~.

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Son in exch:mGe for Purcel U. Pllther chcn owns Pureel B with II substituted locome IIIX basil of $ 10,000, lind Son owns I'urccl A with a substituted ioconle lax basis or $90,000. Son then sells I'arcel A to Purchaserfor $ 100.000 and recoglli~.es p $ 10,000 gain. The propo.<ICd outcome is thut by oondu<:ting II ulx-deferred exchange prior to lhe 5a1e. wid by , hiRing Son's high iocome tax basi5 to Parcel A prior to the ~ Ie, Father mid Son IS a family unit have reduced their gl1in from $90,000 to $IO.(XX). Th avoid lhis "'shiRing of basis" Ihe Code imposes Ihe lwo-yellr holdi ns period subsequent to all eJtchnnge bctw«n rcl ~tcd p:lrtie5. Gencmlly. if Ihe laxflllyer or the related Ih1ny di ~pmcs of his exchunge propeny within 1Wi;) yeurs nfter the ;nitinl exchnngc, thcn the IIIXplIyct'g exch:Ulge willi the rel/llcd palty will become IIlx nble. Strnill ht cxclmnses bclween two rcilltcd pnrties nrc uncommon. What is C0ll1 1110n is II \ lIxpllyer '~ desire 10 convey relinquished propeny \0 lin lInrelutcd purt y und acquire rep luccmc nt propeny from n rchlled parly through Ihe use of In inlemlediary. Mony tllXJlllycflI (and rtllllly Ul.~ ndvi~ers) believe Ihis Iype of cxchange will qUlllify for tax deferral, provide(11he IIIxpnyer holds the replacement propeny for two yellrs following [he exchange. TIlb is incorrect. Considcr the following exnmple: Father owns "'P3rcel A'" wonh $ 100.000 with un ineonlC tax !)(Isis of $ 10,000. Son owns "'I'nrcel 11"" worth $100.000 wilh nn income tax ba5 i~ of $90.000. I'u rc ha~er desires to purchltSC Parcel A for $100.000. PlI1hcr relllil.t'!l thnt if he u:lIs l>nicel A to Purcha$Cr, he would need 10 rccognil.e n $90.000 gai n. TIlUS. as pan of lin exehllnge Ihrough the U.!le of an internl':diary, Falher cooveys Ilnrcel A 10 Purchn ~er for $ 100,000 lind lICquires Parecl II from Son for $100,000, The !'CIiult of Ihe second exnmple i~ idcnt icili to the result in the Ii~t example. ]>lu'C haser ends up owning Parcel A, Flllhcr ends up OWJlillg Parcel 13 with p 5ubstitllled income tax basis of $10,000, SOli ends up with SIOO,OOO lind rceognil,cs II $10.000 gni n. For tilts rcllson, liS n ge nernl rul e. if n tuxpayer eorwcyi relinquished propeny to nn unrehrtcd p:lny nnd Ilequ ires rep lacement propeny from Q relulcd IllIny, Ihe IRS willtrem the eXChange as all Immediately laxable "'trnnsnctiorl structured 10 avoid the purposes of Ihe relmed IIMty rules" (i ,e" nn illll\lcdime violution of the two-yeor holding IlCrlod allpllcnble 10 rclnted pltny exchanges). GellCflllly, 0 tltxpnyer may con~cy re linqui shed property to a ,'elmed par1 y and ~C(llIlrc repl!Leement propeny from lUI unrelmed party, but a t~xpltyer IJ,enernll y nmy not convey relinquished property 10 lin unrelllled pun y lind l1Cquirc r.:plnce menl propeny from n relnted pllny. In conclusion. Rn IIrtiele such {U th i~ 15 far too st.on to cover ill (\ctui' all i~ucs which CIIIl wise in II ~ion 1031 tACh(lnge. This article ~imply skimnlCd the ,urfllCC with ~ltO issues which were di!i<:ussed.1Ifld many areas which present risks were nOi discussed ntall. For II much nKln: detailed diSCllssion of tax·deferred exchWlb't'S. obtain T(I.~ I-'rtfl E.xclllll'8tS Utrlltr 10JI by Jcremiah M. Long and Mary r"OSler, published by Clllfk. 8o;mI1I1l1n & Callaghan (80().328-4880), or receive lUI expllnded vefliion or this article by cootllCting the lIUlhot' at gll"kesfi#cllklllw.oom. •

ALABAMA STATE BAR ALABAMA STATE BAR MEMBERS

MAJOR MEDICAL INSURANCE ISSUEI) ON A

GUARANTEED ACCEPTANCE BASIS* PIA provides quality benefits for lIlembers, employees, and eligible family melllbers. Administrator: PltOH::s810NAL INSU RA NCEAI)MH~I STRATO I~S, I NC.

A" Insurance Specialists. Illc. compony, a Georgia corpora/ion

GrOll)) Policy Underwritten by New York Life Insurance Co rnpllu y 51 Madison Avenue, NY, NY 10010

PIA

Policy Form GMR

{ .

THIS COMPETITIVELY PRI CED PLAN INCLUDES:

.:. Deductible choices of$ 1,000, $2,500, $5 ,000 & $ 10,000 per ca lendar yea r .:. 80/20 In-Network and 60/40 O ut-of-Netwo rk PPO Plan .:. $3,000,000 per person maxi mum (so me restri cti o ns app ly) .:. Maternity covered as a ny other condition .:. End orsed by the A laba ma State Bar Associat ion DON 'T MISS OUT... Ca ll or fax your request for more information (including features, costs, eligibility, limitations and exclusions) TODAY to: PROFESSIONAL INSURANCE ADMINISTRATORS, INC. AlIllIsurollce Specialists, Inc. compally, a Georgia cO/pora/ion 1'.0. Box 2827 • Norcross, GA 30091-2827 800-241-7753 • FAX: 866-314-9088 ·A pplicunts are subjct:I IOthe medicnl undcrwrilingguidclincs ofNcwYork Life, This will nOI uffecl acceptance to the plan but m:IYaffect mtes at time of issue.

322

r e

or the past severnl

),CRrlI,

Medicare' hllJ been payi ng med· ical expenses for injured employees even when those expenses stemmed from work-rctlllcd Ilccidents or occupa-

tional diseases. The Medicllfc Secondary Payer stntutc was e"ntled \0 prtveru the burden of such expenses, which should rightfully be pllid by Olher insurance

plnns. includins ..... orkclll' compensation. (rom being shifted to Medicll rc. Pursuun! 10 the McdicnI'C Sccondury Puyer stnlutc, the Center for Mcdicure Ilnd Medicaid Services (eM S),' the federal agency Ihln administers Medicnre, hns recenlly undcnllken II comprehensive effort 10 collect money owed 10 Medicare for the

payment of Ihe.~e CJlpcnses,' The Medicare Sc:condnry Payer suuutc provides. in plln, thai Medicare may nOi pay for IU1 individuld'lI medical trenrment if payment can "reasonably be eltpccted to be mode promptly" under a workel'5' compensation law or under lin aulon)()bile or liability insurance policy or plan.' In such instances, Medicare is Ihe "sec· ondary payer" while the insumnce com. pliny or other responsible pany re mains the "primary payer." TIlis s!otute fu nhcr provides Ihm, in the event Medicare docs pay such expense~, tho~e expense, ~h:L1I be paid SUbject to reimbursement. If such reimbursemen t is nut nUlde within the estnbllshed time period, interest nmy be chnrged 011 the amouru or reltnburscmcn t unlil such reimbuNcme nt is received by Medicare from Ihe primary payer, In order to recovcr PlIyments described in the statute, the Uni ted StiHes is author. h.ed to bring lUi IK.'ti0n against the pri. Illilry payer "directly, os a third-party ildminisU"l"llor, or otherwise," [n addition, the statute provides that dOl/bit! d(lnr(lgts moy be collected from the primary poyer. The statute funher eStablishes II private cause of action for dlllmlgCJ "in nn amount double the amount otherwise provided" when II primary payer fllils to provide for payment or reimbun;ement

under the Medicllre Sccolldllry Poyer statute, In addition to payinS lind then seeking reirnbul'SClllent for lin injured employee's medical expenses. Medicare also has the option under the Medicare Secondllry Payer stalU te simply to refu&e toO P'lY such t"ltpense! in the first piKe. TIlis (.'Ould occur if the injured employee hilS previ. ously reached a lump sum scnlemem with the primary payer regarding fut ure med. icnl benefitJ;. Under the Secondary Pnycr statute, Medicare will nol pay for medical lreauuent until lhc: expcnse.~ incurred equal the amount of the sculement IIttribuled 1.0 ruture medical expenses. In the event thlll n.o PO'" of the lump Sum !!tltlemen! is specifically allocmed for flllure mediCilt expenses, Medic~ has I fonllula for apportioning an amount oflhc settle· ment iLo;c:lf. It 1111151 be fIO(ed thai "[ilf a settlement appeW"!lto Kpre.'lCnt an attcmpl to shift to MediclU"e the re..~pon§ibmty for payment of medical expenscs for treatment or a work-relnted condition, Ilrtl ,rtllIlmumll4'lIIl1Of be ruogll;ztld:"' To deal wilh this issue, Medicnre SctAside Custodial Agreements and Medicnre Set-Aside Agreements Jmve been developed. If either of these Igrectl1Cllts is pr0perly utili7.1:d, an employer or workers' compensation insu= c!ll"Tier nmy seule II workcrs' cQmpemwtion claim closing f\.uurc medlcnl benefi L~ without fear of Medicare Il1templing to make II clnirn for reimbursement of lIIedieru expenses result. ing from a work·related injury, or rerusing toO pay l1li injured employee's medical expc:nses. UtilizmiQn of a Medicare SCIAside Custodial Agreemenl or II Medicllre: Set-Aside Agreemen! 5hould ollow employenl to settle future medical claims with greater ease, si~ the employee will have insurance, through Medicare, for future: treatment, F\.trthetmorc, trilll couru are moOre likely to approve I scnlemcl1I that includes this !\lifeguard, Finally, these agre<'menlS often result in a substantial east savings to employ~ and wor\(crs'

compcnsatlon carriers. Medicare rcoogni7.t"S that, in order to SCttle a elnim for future medicol benefits, the employer or WQf"kers' compensation carrier will pulless money into the custodial tlCCQllIIt or the annuily than it would likely expend over the renwinder of the Injured employce's life. This type of eompromi.o;e with on injured employee Is IICcepted by Medicare liS nn Incentive toO the employer or work· ers' compensotion insurunee carrier to sctlie ch,ims for fulure medical expenses. Mcdicare Set-Aside Cusloolal Agreements and MedicIU"C Set-Aside AgreemenUl should be used if a delcmli· nation j~ made thlllthe employee will become eligible for Medicare within 30 months of the dute or the sctllcmcnl or currently 15 II Medicnre recipient and future medical trcutmc:nt Is likely, IndividUAls become eligible for Medicare aner they have been rt'l.'eiving Social Security disability benefits for 24 nlOntlti:, Social Security disability bcr.efits do not beSi" until five mont hs after the date of the accident, injury or ochcr diSllbling event. In order 10 qUIIUfy for Social Security disability benefits, 1111 individ ual mUSt be unable to pc:rform uny kind of 8ubSllllltiul, gainful work ~Juse of a physical or mental imlmimlent, or a com· binlltlon of both, which Is expected to either hlst III least 12 mon ths or end in deillh. There nre addi tioilld ways to (j uali. fy for Socinl Security disability bencfits including, but not limited toO: I. The eluinmm being 50 years old or older und unable to perform PllSt work (his own occupation) due to 0 physi. clil or mentol impaimlenl;' 2. The claimant ha., ony physicnl or mentul impilimlellliloo a lona histOf)' of heAVY, unskilled work;' ) , The elaimant has a physkal or mental cQndition that allpcul"S to satisfy the "medical listings" in the Code;' or 4, The claimllll! i~ iIIitenate lI'jth any physical or mental inlpninnent. 9 11111/11/1\1\

/,111/1(

323

If nn injured enl plo)'te meets uny of these crlltria, a Medicare Set.Aside Custodial Agreement or MediclI!e Set. Aside Aareemem ~hould be inc luded in ~etllernent ne80tllltion.~ regarding the employee's fUlUre lllediClI1 benefits.

cmployce's medicul care ubove thul monlhly IIIUOunl, The annuity may be purchased through any SlrllCturcd Kille. ment company, It should be notcd, however, that. because the ex penses for tII0~t injured em ployees' medicaltrcutmcnt val)' from nKHIth to monlh, CMS generlilly prde($, nnd sometimes requires, that II Medicare Set-Aside Cuslodial Agrcement he uscd liS oppokd to an agreement fu nded through an an nui ty,

Medicare Set-A.lde Cu.todlal Agreement Medicure Set-Aside Custodilll Agre<ements h.we b«n recognl/.cd I1S " wfly oflxtlaflcing Medicare's interests In" work· erf cornllCnSlltion selllelll,elllthnc ptlt'pOru to close future mwical bencfits find fltl injured emplQycc'! entillcmenllo Medic~ bellefit~ lifter rectlvinll a workers' l'ompcn_ ~don settlement. 'l1le Medicllre Set-Aside Cu~todilll Fund is funded with 1\ lump sum of money designtled to CO\'ef fulure medical e>;penses which M~-dkure W()Uld oroi. n:uily cover. '!lle bcneficiiu)' of thc fund nUIYeither ~ubmit tile bills for medical lreaunem related to his or her l'IOrl:-relaled inj ury to the cu5tooitUl of the fund or the hi ll ~ nllly be SCIl! directly to the custodian by the mediclll trrUl nW!nt provider. After tlw! fund is exhausted. the bcneficilll')' becomes eligible for Medicare to pay IIny lind all future n\(.'(tical eJlpcnsc.~ which Mt'<licure WOtlld non nally rover. In order to dcltnnine Ihe amount which should be placed In the custodial fu nd, numero us f:lclOrs regarding the injured employee'. fnj ury lind his or he r medical treallneftl IilUSI be considered. Such faclol'!I include, bul are not limitcd 10. the following: I. The date of entitlement to Mcd ieltre;

2, TIle basis for Medicare entitlc:me lll (disnbility or ~ie);

3. The type of inj ury or illness; 4, The age of the bel\eficinry (includmg an evnhmtion of whether the beneficiary's condition would $hOl1en his or her lire ~pan);

S. The clll5sifie~ion of the bcnc fic i ~ry'8 disability, SUt'll IU penn~nent, 100al; 6, l'rior lind future IlIcdic~1 needs of the beneficiary d~e to the injury or illness: 7. !slhe commu~1t ion for the beneflCiary's lifctime or for a specific period of time'! If not for the I felhtW!. Whlll is the bu.~is'l Whm is the stale law governing how long workel'li' compeuSillion is oblignted to cover Ihe services relmcd 10 lhe injury or illneM: 8. Is Ihe bendicui.ry's condition ~tuble or is medlclll deleriortltion possible; lind 324

SI! I'THMS!!!! 1001

9, ' 11e li vi ng iuTiutgeruenl of lhe benefi ciary and the level of continued clIre req uired, It is iml)()nitnt to remc mber Ihlu only the mcdicol cJCpcnSC$ Medicare would usually pay need 10 be St.t a~ ide. It is IIlso imponnm to reme mber Ihnt no " form" ngrce rnenl ~hould be used. as sevcrnl rae· t OI'!l must be considered und aPllropriuteIy IIddres!!Cd in each agreement. If the arnoulll nccwary to Clitnhlish the Custodinl fund CJCcecds II certuin threshold I)rior appruvhl must first be oblll.ined frum' CMS, Care must ulways he luken, however, [0 insure thatt.he III\100nt placed in the custodiul fund jg suffi cient :cud th lu Mcdicnre's interests 1U'e reas(lItubly considered in the settlement, If Medicare <k.lennine.~ Ih:"1 it~ intereslS were re:..sonubly considcred in thll selliement, Medicare will not laler mnke a claim again~ the employer or insurer for Ihe employee'. mediclll lrenlment expenses,

Medicare Set-A.lde Agreement This type ofagreemctU is vcry si mi lar 10 Ihe M cdicure Set-Aside Custodiul

Agreement, 11l5tead of Ii trust or eustodiltl fund, however. the employer or insurer may purehllse an nn nui ty or structured sclllcinent from which n designa ted nmount each month wi ll go [owllrd the injured cmployee'li "'edleal ellre. Uodcr a Mcdicare Set-Aside Agreement, Medicure will pay for the COSt of the

Conclu.lon Mcdic~ SeI·A~lde CUsuxliaJ Agreements nod Meclicnre ScHuidc Agreements ha~ proven inst!'\Jrnclltltl ln 111lowi ng tile closu re of fUlOre llW!diclll ben. efits QO Itlmost any claim while nvoidi ng rcimburscmem actions brot.IGht by CMS. [n udditioo. thc.'IC IIgrcemcrlt.~ have !llJved ~uh ~llIntial mllOIJnIS of mone), for cmplo),en; und workm' compensation carriers. Medic~ Set-Aside Custod.al Agreemcn~ and Medicare Sct-Aside Agreements lIlay be usc(] in lUlY ~tate WId are revo lutionizing the way futun! medical benefi ts lite settled

in wor\(CIl' compcnSlltion cases.

•

Endnotas MIdQr, d1tf8ll1Ublc.nw11t I-um MedaIct

Ellg,blhly 101 Mtduod it l1li.... ""'" "lII!Ilant'l eSleu ard lI'Itomo ...........s .hglbil,1y lor Me<!icfrl it 1101 baWd upon ell N'd'I1d11el'l "I\MIt~1 ennd,tiCl" 2 CMS WlIIII~ 1Aown .. 1M Heltlll

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Finlnclllll AIImInIIIooon nO"A 'J 3 New fielllll and IUnen s.r.-. SKieIlr'/, Tomrrr; Thoo:nIIIon.lMOI/IICld CI" JulIo I., z00lt"'l thO' IIIIN Htall/l CeI, fll'ltl'otlnQ A(btllsu.1I0n Wli

beintI dIqed 10 "ten1Bll1or Mad_ MIl

MIrbIrI s.rv.c.. ' Sltlll/S F.:t ~ hllp /fww.N hhl.gov/rItWJ

( 12 USC ~ 1395 V!bK21 5 In ~"t ((i(bUlemphlJlIIllclldI

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L ABAMA

S T AT

B A A

Publications ORDER FORM The Alabama Stale Bar is pleased ('0 make available \0 individual altOl'llcyS, fi nns <lnd local bar associations, a l cost only. a series of broch ures on a variety of Icgallopics of intcresllO the general public. Below is a current lisling of public infomlaLion brochures availuble from Lhe Alabama State Bar for distribu ti on by local bar associations. under establ ished guidelines.

BROCHURES To Servs the Public ..........................." .... ..." .. ,"""" ..." ...............S10.00 pl r 100

Oly.

001811.01 bar publIC seNieS programs highlighted Ifl lhe TO SERVE mE PUBlICvideo presentallOn

LRw As A Csreer ...............................,.... ,.................................•..$10,00 plr 100

Diy.

Dty,

Dty.

Dty,

Oty. or family

oppor.llnilies and challenges of (I law caroer today

Lawyers end Logal Fees ,...........................................................$10.00 per 100 ... a SUrmlllry of basic Information 0f1 common legal questions and p!ocedures lor the general public

Last Will & Testement ..........................................................." ...$l0.0O per 100 .• .COVEIrs aspect! 01 estate planning and the IrTIpOftance of haYl~ 8 Wilt

Legal Aspects of Divorce .. " ....." .. " ..." .. ""." .. "" .. " .. ,""" .... " ....$10.00 per 100 oilers options and clIolces

invol~ed

In divorce

Consumer Finance or "Buying on Time" ................................$10.00 per 100 " .outlines important considerations alld pro~ide$ ad~ice

011

financi al mellors affecting the

indi~idU81

Mediation.,. Another Method .................................... " .............$10,00 per 100 (or Resolving Disputes

Dty.

__ $ _

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Acrylic Brochure SUlnd ,................"""" .. " """"""""""""""""'~,.................$5.00 each Qty. . , indl~idU81 stand imprintod with indi~idulll , firm or bar association name lOt" use lit distribu tion points One stanj per brochure is recommended

pl"O~ld!ts

an OV8N1ew 01 the medl8tloo p!ocess in questlon.and.answer form

Arbitration Agreements ,... ", ... "".. " .. " ... " ... ""." ... " .... "" ...........$10,00 per 100 • answm questions on arbitration from tho consumer's perSpedive

Name to imprint on I land: _ _ _ _ _ _ _ _ _ _ _ _ __ Subtotal $

Mailing Address

Shipping & Handling $ 5.00 TOTAL $ Please remit CHECK OR MONEY ORDER MADE PAYABLE TO THE AL.A84..wA STATE BAR for the amount listed on the TOTAl line an:! fOt"Ward 1\ with IIlls Ot"der fOfm to· Susan Aridfe$, DirettOI' of Corrvnunlcations. Alabama SUIte Bar, PO. Box 671, Montgomery, Al36101 -.

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Defending Qui Tam Lawsuits Brought Under the False Claims Act 326

SE .. T B MIlER 20 0 L

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f you represent a business which sells goods or services to the United State.' or one of its agencies, your clicnt may be lhe subject of a multi-million dollar fmud lawsuit filed in federal court months ago, .Id neither you nor your client kllOW~ abotll it. The lawsuit hu bem filed by a privalCciliun (quite polIsibly a disgruntled fonner t mployce) under seal and served only on the Uniled Statu, which is discussing the case with the plaintiff and secretly invcsligllling your client's IICtiOfiS. By the ti me you and your dient find (XII Oboul the 1:lwsuit, you will olrendy be far behind the other sid: ill tenllS of fact-fi nding und nnnlysis of Ihe CMe. In fuet, the Govcnllncm may have fonned ItH "linnl" opin. ions about you r c lie~t 's CUIP.1bi1ity before you even hllve Imd an Oilpor!unity to rc.~pond to the allcgatlons. 11len. when you finnlly Icarn of the lawsuh. you may not IICwlllly be :dlowed 10 !lee a copy of the cofllilirunl, or 10 serve your own discovery requests, as you would in defending n nonnal civillawsuil. Sounds II bit unfair. doesn't it? Fair or not , such is life in the wQrld of defcnding companie5 and individUllls agai nsl qui Imn lawsu i t~ filed by pnv:lle cili:ten:'l on behnlf of Ihe Unitcd StalCS under the fedcrn! Fllsc Claims Act (r CA). The unique framework estnblished b)' Ihe rcA's (I lli ram provisIO Jl.~, dc ~ i sncd to encourage IlrivJlte citi:ten5 to ossist thc Unheu StOICS in ferreting out frlludu lcnt conduct by fedcrnl government cOnl ntetors, eremcs II number of unique i s~ues lind potcntial strategie& for defense lawyers in t l1i~ urea.

Basics of the False Claims Act and Its Qui Tam Provisions The rcA was enllCted during the Civil W\1t, in responsc to !iCVeml egregious incidents whc~ private commttors swindled the Uni ted SlInes ill pro~iding wur materieL Stt B. Yuill "High Coun Hem'S AIlIUJIlCll1 on Right of Qui 'nUll Whistle blowers to Sue Stutes," 8 BNA I-tenhh LlIw Rep. 1874-78 (Dec. 2, 1999). Under the t urrent version of the low, 011)' pel'St)n who "knowi ngly" present$ (or causes to be presclllcd) 10 the United States a false or frnudulent chum for Pl'YJll(nt or npproval is liable to the United States for civil penulties of $5,500 10 51I ,<xx), plus three t imc.~ the omount of the dnmu3cs suffered by the United StOte& in paying the false or fl'l'ludulent claim. Making false st:'!ClnenIS in onlcr to get a false or fl'l'ludulelll elnim paid, n.~ well as conspiring to get II falSe or fraud ulent claim allowed or paid. are also prohibited by the I:CA. 3 1 U.S.C. § 3729(1). As i\ result of amendmcnts to the law in 1986, the tenn "knowingly" is brrntder thnn It might otherwise appeur: it includes, in addition to octu nl knOWledge. ncting in "deHbcnHe ignumncc" of !he tMh or fulsity of Infonllntion, and neting In "reckless rli!m:gard" of the: truth or fnl sity of infommtion. TIurs, the stlllute mD1cs it clear thnt specific iment lO defrllud iJ not a prerequisite to liability. ld. at § 3729(b).

In order to enl,:ountge privllte titilCtlS (oftcn clliled "rdmors") to upo.'iC CllseS of fraud against the United Stnte.(, the original Sllllllle inc hided un ique provisions :tllowi ng private individtluls to bring lmd muintuin suits on bcllllif of the United Stntcs. und to rt tain a perecnluge of uny I1:CQvery obIained by the United SUles !lJl n result of d1e claim (under the CUlTent version or the ~tljute. the ~ lalor'l ~rcenlnge of the take ean range from 15.30 percent. St't J I U.S.C. § 373O(d). ~ lawsuits are conlmonly rercrred to as "q/lf mill" cases.' After II period of relative disuse due 10 restrictive :.nendmelU8 to !he rcA passed in 1943, CoogI'CSS jUntpostnrted tile qui /(jill provisions with libernJi:dng nmcoomen" in 1986. Si!(/ COOIl4!r~. (Jim! Cross Blu(/ Slrlt'lll uf Florillll, 19 r. 3d :S62, S6S n, 2 ( 111h Cir. 1994). ThC!lC chnnge~ delinitt:ly succeeded in cllCOur. llGing the lillns of m011: (11I11"m I~wsuilll ulldcr tile FCA: in tbe )'Cur uft er 1986. only 33 cases were filed: ili liseill ),ell1 1999.483 e~Sd were filed . Set! Ikpllrtment of Justice I>re.~s Rcl ea.'!C. "Justice OcIl:tl1mel1l R~)Vers Over 53 Billion in Whistleblow(t'$ Pulse Claims Act AwlUw und Sellicmcnts," F'ebrulll)' 24, 2000. While the initial wave of q/4j lam nctioos primarily involved the defcnse industry, in the ntid· I990s. the: focus Qf reiatoo 8hifted wffillticnlly townrd the heal th eare industry. One explanlltion for this shift i~ !he significant reductiC!f1 in tkfensc Jpendi'la by the ft<lcrul government during the 1990s, and the eorrtsJ)Olwling relative rise In fedeml spending in Ihe henlth cn~ uren. In addition, wlti le Ihe ucfcnse Industry ClISCS were Often fai rly luenltive dut tQ the onen ex pensive nutun: of the goods being sold to the United Stmes, the n.:iX)veries in some of the henlth cllre industry Cll!i(:.S have been staggering, due 10 the sheer number of elnims thm cun be involved In such CQ.'lCIl. l1ecnnsc: health cnre Jlrovi~1'$ orlen repetitively submit large numbers of the SOIllC Iype of claim for helllih C!Ire services rendered to patients who are beoeficiuries of the fedellil Medicare program. a pattern of fal~ or fl1lbdulent billing thllt ex i51~ for a signifICMt period of time can lead to potcntially IIIIl.~si ve linbility under the: rcA, pnrticulurly when lhe 5S,SOO-$ I I,<XX) ptr c/njm penalty is applied, TIle increase in /fui 111m fil ings in thc hcalth care Industry has coincided with the Government's high profile nnd politically poplilar effort 10 eombnt fraud nnd nbuse In the henlth care industry. The DepartmeUI of J usl i ce'~ MlltiSlie5 ilIustntte the Govemmcnt'5 enforcement focus In this llrea: Ove r hllf of the more th un $3.5 111111011 recovered in cases brought undcr the qu i I(lm provisions of the FeA have involved health Cllre fnaud nlle:III/IIIIIIIII/IIIIH

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aations. IkpnnmcnI of Justice I'rcss Relcm. February 24, 2000. Over $ 1.5 billion hils been puid by FCA defendants. most of thelll in the health care industry. juSt since: the end of fi sclil year 1998. Perhaps more to the poiOl, a~ of Fcbruary 2000, the I)epanment of Justice: had paid relnl()(S over $550 million D.!i their Statutory (hares, and that fi s ure is ri!ing in scemingly e:xponentinl fllshion. 8S United StlltC$ A1tomeylacross the coun· try continue to announce settlements of FCA Clllles. most of which Involve the heilith care industry. /d. In a few of the more publicized Cli:,qtS, (/111 lam relntors and their counsel have Nell owurdcd stllllllory shares in the lens of millions of dolhm. In oce: recent high' j)l'\)filc CIllIe, Nluionlll Medical Care. which is now nsubsidiary of Fresenius Medical Care. the world's largest dialySi5 provider. agreed to pay $375 million to 5Cltle II qlli 10111 Cllse alltging, amona other thi nas. that the company filed false claims to Medicllre for laboratory tesll. Sc« Department of Justice Press Rdease. l upm . February 24. 2000. In the health cllre industry. SCUICntCll1li in the $5-10 milliOn nlnge have become fn irly common; in such cllSC.~. the relntor's share will oneo be in the seven figure NIBge. Givcn these numbers, It sholiid be no sur· prise tlmt United Stmes Allomeys are very bu,y Investigpting nilegltlious mode In complain ts fil ed under the qlll trllII provisions of the FCA 080inst hClllth ellre and other busi nc~sc:5 which do busineH with the Government.

Dealing with the Government's Investigation A8 noted, It q:11 fllm relutor files his or her comploilll in federal coun under seal lind serves only the Uniled States (specifically. the Attorney General of the United Stllles) with II copy of the comphlint. TIle re lntor should also deliver a "di:;closure stlUement" to the Govemment. describing the basis of the allegntions in funher detail. 11lC Governmcnt wilt then begin its invcstigation of the ollea,1\ions. typiclllly by interviewing the relator and reviewing any documents the relntor has provided. The Govemment willalS() tllke IIdvnntuge of other sourcc.~ of information at its disposal. including information in the possession of Medicru'O cnrriers or intermediaries. the privilte COtltn'lCtOl'll who udministcr the Medicare progntrn on behalf of the Govemment. In IIIklition to these "informal" methods of investigation. the Government coo lliso tuke advnt1~1ge of two more fom1111 nvenuc!l-IIubpoenas from the npillicllble agency's Ofllce of I n ~pec tor Geneml (OIG subpoenas). und civil investigntive de ll1 l1nd~ (ClDs). Onen. the recei pt of one of these documents is the first inkling II defendwlI has lhm a qlll trim cnse hM been fi led against it. The 0 10'5 subpoena power Ill'iscs OUt of the hlsl)CCtor Genernl Act of 1978, which. like the I1CA. WIlS enacted to coml»tt a perceived "epidemic" of fmud and abuse In federal proarams. III$/Jeclor Gt:llcrn/ Of/Itt: Unl/t:d S/MulHpt. ofAgricllimrt! II. Git:nll. 122 F. ~ 1007. 1009 (11th Clr. 1997). The scope of the 0[05' subpoena powe.r i~ broad, and court$ will enforce 0 10 suDpoenas a5 10ng u: ( \) the investigation Involved is within the applicable 0 10 ', lIuthorily. (2) the dCOland is not overly bul'den· some Of indefinite, nnd (3) the infommtlOIl sought Is reasonably relevlln t ijnd lIot nlrendy in the Government's possession. V"i"HI SWftS v. Ml!dic I/ou.fc, h,c.• 736 F. Supp. 153 1. 1534. 35 (W.O. Mo. 1989). 'n le Oovenllllent enjoys It cenuin nc~i bil ity with respt:Ct to itS usc of informmion obtained through 0[0 subpoc328

SEf'TI!MH6 R lOO t

nas, ~s the information the Government obtains though ~uch subpoenM can be shared freely with OIllers. includin, the relator and his or her counsel. A$ a result. the DepnnnlClu or Justice andlor responsible United Simes Anomey will onen re.quc..~tthat the applieable 010 issue a sllbpoena in COOfICCtion with the Goycrn ment's qlll /(1111 investigation. CIDs nre issued by the Anorney Oenerol under the outhority of the F A. Section 3733 of the FCA provides detailed require. melllS governing the use of this discovery tool. which the AHorney Genernl eun use to require the. production ofdocurne.ntllry mnteri ul. nnswers to interrogmories or omlicstilllony. a5 long liS the Infonnation sought is relevant to 1\ ral!ie claims IIIW investigat ion. A recipie.1II can seck to have the C[D sct aside by filing 0 petition in the United States district court for the recipielll 's federal judicial dislrict within 20 days aftel the dille of service. bul a district eoun'~ discretion to restrict the enforce· llIent of a vlliidly-issued CIO is "limited." V" i/ttl StattS I'. MMho'()()(/. 48 F. 3d 969. 976 (6th Cir. 1995). In essence. bcClIlIse CIDs nre trented like other admlnislrntl\'C sllbpoen:l~, they ure enforeed u"less the recipient cnn convlr.ce II COLlrt that the request is im:lev(lI11 or overly burdensome, or thntthe ooJ Is acting in blld fa ith or llbusing the cOllrl's procus in issuing the subpoena. S(I(l ld. m 978. Coumering the u~e fulness of this broad power to the Government. on the other hnlld. are considernble R:Striclioos on the Justice Depanmem 's nbility to share die informal Ion obtained through a cm. [n fact, the DOJ can onl y disclose such infonnation to investigators 1m the. case. 10 Conaress or to another fcdernl agency with a "substan tial need for the U.'\C or such Infonnmion in funheral1(:c of its stOlutory responsibilities." 3 1 U.S.C_ § 3733(iX2)(C). II shuuld be noted mat the aovt:rnmenl'&power to usc CIOs to obtnin discovery In connection with an unsealcd qui flllII CIL'iC can be dmllenged. 111e StilWte nllows the Anomey Oenentltu serve fI CII) only "before commencing II civil pl'QCC(:dillg under" the FeA. hi. at I 3733(a). Given th m the qlli talll reli~or lUiS "com· mcnced" nn FCA case by filing his complaint. it can be argued Ihm a C[D issued by the Govcmmenl IU pan of it! Investigation Into the merits of the rellltor'li allegntionJ comes too Illte. Moreover, liince the United Statcs never trul y "commences" II qlli /(1m ell.o;o-it ('itlLer inteI'VCnt'JI in the already comn.:: nC<"d c~ or declines to do ~he IWI8uage of the statute cnnnot be reooliternlly, or the United Statcs would technieall), be IIble to cootillue the use of dlC CID to obt:lin ex PfIr/(I discovery e\en after the C!lSC is unsellied. 'llIe only coun to add ren this Ilrgument directly hIlS rejected it, however. [n AIPco Corpol'(//Io/l I'. U,ti/ttl S/I11/!$ Dc/)//I'/IIlCIIf of )lllfiCl!. 884 F.2d 62 1 (~ .C. Cir. 1989). thc D_C. Circuit held thm tbe fili ng of a qlli talll nctlon by IIseif docs not depri ve tile Attorney Gencrnl of the power to issue CIDs. On the other hand, the AI'CO coun strongly indiemcd (without actually holding) that CJDs eannot be issued aner the Go\'e rnnlCnt has intervened In I qui/am case. /d. lit 624. Often the Government will indicate during its Invwigation that il has decided to inter· ve ne in a case. or at lellst a ponion of it. In such CIlSCS_ the defendant should consider resisti ng any effnrt by the GovcnU!lent to enforce n CII), on the a rounds that the Governmcnt hBS already effectively decided to intervcne in the euse. thereby making use of the ~ IHlrft cm discovery power inaPl)r'O prillte. On the other side. the defendan t is left wit h few options for conducting its own discovery, since. the Fedeml Rules of Civil Procedure do not apply u1l\il the ease i5 unscaled pnd officially

served on the defendant. Despite thm fllCt. there lire severnltaclies the defense lawyer can and should pursue in response to a Government investigation triggered by a qlllltml complaint: Find OUt 115 much as you can 300m the nllture of the allegations from the Govcrnment. TIle United Stlltes Attorney is restricted by the ~tntu t e in what can be disclosed to the dcfcndlHlI noold fI COSe under sellt ~I owevcr. the Governmenl ClUl 'ask the district court for II "pnrtinl llflJ ng of the seal." ill order 10 discuss the lss ucs with the defendllnt lind thereby furt her the invc.~l igal ion . The scope of tlull order can \·ary. bul ortetlthe GOvernment will 0iree 10 seek pennission to inform the dcfendllll\ of the allegDtions mode in the complnint. or even 10 provide a copy of Ihe cornplflint itscM to the defendant (usually with the namell of lhe relator nnd the relmor's nttomey redIlCIW). Generally speaking. the Government has 110 interest in mnking Ihe wrong decillion on intervenlion, !especially if Ihnt wrOni decision results &imply from a fuil ure 10 obtnln the defendalll ', side of the 8tOry. In most cases. the sooner the defendnnt can initiate this dinlogue, the better. Work with your client 10 eonduetllll inlenml investigmiotl of the mll1 tcr (at your direction. subject 10 the IIttorneyclielll privilege), using whlltever illfornullion is uvailable. For example, if the elient hM rt:I.:eivcd an OIG subpocnl\ 01' a CID, you clln often obtain a good idea abO\ltthc issUC$ involved by reviewing the requests. Ask the clienl to con. sider whether it ha5 been involved in any particularly COIltentlous issUC!l relaling II) legal COntllliruw:e. Many rclutOl"!l are former employees in llreas involving rinnncial mallcl'li or claims submission- have any of the elient '8 entilloyed recently resigned or been tenninated1 Fl)r health care clients in partlcullir. hnve they heen subject 10 unusual nudit IIClivity from the Medicare cumer or i n ternlcd i ~ry1 l'relllire key witl:d!iC.\ for Government interviews which, in most cases, will evelllulIlly take place as the Government proceeds with lu investigation and nl1cmptS to delernline whethcr or nOl to intervene in the case. In this regard, it is critical for defense counsel reprcsclliing Ihe corporatiQn to cvnlullIe the often difficult issue of whether individual employce~ of the oomp.1lly need SCparute counsel. and to IlTCpurt the client for the decision of whethcr to JXty for ~ueh seplllitte counsel. Although Ihis issue is beyond the scope of Ihis nniele, nn Ulldel'litntuling of the iS8ues which urise In Ihis flfCn is essential if one i5 to navigate through Ihe waters of nn PeA inve.~l lgmion while nvoidina Ihe shouls of Insurmoontllble conflicts in rc~nlation. Uecome familiar wilh the statutes and regulmions which arc or mighl be It issue. 111 heRhh care cases particullU'ly. the applicable siandurds can be extremely voluminous lind complex . Ollen, defense counsel will need to consult wilh an attorney who coneemnites in the Inws and regulutions applicllble 10 the: industry involved.

Motions to Dismiss Qui Tam Complaints SllPPOse you hnve helped yo ur client deal wi th the initial shock of learning tllOt it is the subject of II luwsuit claiming

h\mdreds or thousands or millions of dollar-, in dnmages on behnlf of the United StateS, as well as enonnous Jl(ltentllli penal. lic..: you have worked with your diell t to conduCl1l Ihorough tntcmal inve,\liaation of the issue; you have guided the defen_ dantthrough the Government'S invcstignlion and obtllined what you believe is the uh i m~te viclory-<:onvincing Ihe Govemmellt nOi IO intcrvene in the case brought by Ihe (1111 lam relulor. At this point, while you should be well ~ml sfied wilh your work $0 for, don't brenk OUI the chumplIgne jusl yet. The relntor still has n shot lert to take. if he or she wishes. bcCltUse Ihe FCA allows the relalor 10 proceed with the case. even if the Go\'emmellt elects nl)tto intervene. 31 U.S.C. § 373O(c)(3). Typically. ollCe the Govemmetll notifies the fcdcrnl CQUri of its eleclion not to inlervene in the case. lhe relutor can choose to dismiss the ca.o;e berore it is unsealed and serv«i on ihedc:feoonnt, 01' the relator can allow lhe complnint 10 be unse/lled lind served 00 the defendllnt. Ilistory and $tmistics rencclthm in almost t\ll cases the lrue bmtle. is wlIged over the (iovernment'slnlervention declsiOll-only aboul 6 ptrt,'ent of the tOial recoveries in A:A qui Irl'" CPSCS hllve been oblnlncd by rclntOI1i who litiSUIed Ihcir claims arter Ihe l:>Cpltnmcn! or Justice declined to pursue Ihe ca~. Dcpllrt metll of Justice Pl'CSS Release. Februll.ry 24. 2000. Nevenhclc.~~. many relalors elect to pl'()(:ced wit h their CIl$CS in the flll'C of II Governntent rejcction. and one CI1II twlWlle Ihat such claims will increase 115 oVelW()rked Uni ted Stmes Allorneys IlI'C forced 10 be mQnl selective in laking on FCA cases. Once the complaint is served on lhe defendant. the case pmceeds like. a IiOnIUtI fcderul luwsuit, PUfSullnt to the Ftderal Rules or Civil Procedure, with a few exceptions. The Government nll\y ask 10 be scrved wilh copid of nll pleadings and deposition trrul. KriptS in lhe case. (d. [n addition, the Govcrnntenl may be allowed to intervene at allYtime 10ler in Ihe case, if good cause ex i sL~. 1(1. l:>Cfcnse counsel should Ill$O kCC11 in mind !hut if Ihe rolutor electH to pr'QCced withom the aove mmC!i! lind Ihe defendarll eventuully ]lI'Cvail$ in the case, thc court C&l ~wtmlthe defendam', reasonnble expenses and mtMICY', fees, if lhe daim WII$ Mclearly frivolous. cleurly vexatious. or brought primarily for the purposes of hllrussment." 1tI. at f 373O(dX4). III the eVell1 II relator elccts 10 proceed with a case against your client wi thoutlhe Government. there lire a number of nrgu. ments Ihnt 5hould be considered lit the mol ion to dil\llliss $tage. A Ilumber of jurisdictional argu mentS arc prcscnled by the speri tie lansunie of lhe staCUte. Sce i(l. /I tt 3730(e). 11lc most prominent ofthe8e appears m § 3730(e)(4)(A). which bllni qlli /11m aClions based on "public disclosure" of the nllesulions. ~ nless tht: relutor is nn "originlilsource" of Ihe infonnution. Under Ihe 8tlllutc, n per!iOn cnn be rill "orisinol source" only ir he or she hfls (l) "dircct ltlld independent" knowledge of the aJleglltions bnd (il) hu voluntarily provided Ihe informntion 10 the Government tHfore riling the easc. A nllmber of interesting lisue! arisc In the context of jurisdictional challenge, under C37.3O(eX4): the Cllse Inw in thi! area Is extensive aMi varies from cireuit 10 cireuil. (The tcader Is referred 10 f'rofeuor Oucy's Novcmber. 1997 article in Tire Ala/xmw LtlwYflr for an excellent discuuion of these issues,) Historically. defendants have also mnde constitutional challengcs to Ihe '1111 111m provisions in 1ll0lions to d l~ m iS5. These chnllenges generally hnve involved two principal urgtunent!. Finit. defe ndnms have lU'8~ed thot qllilam relolors Ilick 51undi ng WIder Article ]]1 of Ihe United Sinies Con ~ti lUlion 10 maintain 11111111/1111 IIIIIIN.

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thcir IIIW~ult5 without the Government bcclluse re llltO~ have not experienced any personnli1.cd injury. Second, defendants have contended that, by allowing privhte individuals to wnductlitiglltion on behnlf of the United States, the qui tllIIl provisions ulleonstitutlonnlly encro.1ch upon the Executive BOInch's exclusive powers, One p'1rt of this aIJUlllent is thllt (Iu/lam cases vio.Inte separntion of poweTll principles nnd Article 11 , f 3 of the Constitution, which requires that the Executive "take CIu'C that the Lnw~ be faithfully executed." In flddilion, defendants posit thnt qui 1(1/1, luv.suits violille the Apl>ointlm!IlIS Clause (Anicle II , f 2) of the Constitution, which r'\'I(lui res In Illin that the PresIdent nominate and, by and with the advice and consent of the Senme, IlPI)Oil1l all officers of the United State.~ who:te IIppointmcnts nn: not othcrwise providcd for, Unfonunatcly (Of defendants, the Anicle III siunding nrgument WIS ]Ilid to re-l'1 by Ihe United SIme5 Supreme Coun Inst year, in Vumom A8t!IICY 0/ Natural Ruou(f:u 1\ Un lIed SIDles t!X rei, SI(!I't!IIS, 529 U,S, 765, 120 S, Ct, 1858, 146 L, Ed, 2d 836 (2000). Thlll CMe invQlvcd 11 qui t(llll nctlon liled ngninslthe StUie of Vermont's Agency of Nalural Resources. The Uniled Stotes declined 10 intervene, ulld Stevens clected to procced by hlm ~ lr. 'n le Agency moved to dismiss, arjuing. (i) llS It stme agcncy, it WIlS nolll "person" 8ubjectto FCA linbility. and (il) the Sinle WIIS immune from qui Will actions in fedeOlI eoun by vinue of the Eleventh Amendment to Ihe Constitution, 30th the district COUrl nnd II punel of the Second Cireuit denied the motion to dismi~s, Ilnd the Supreme Courl gntrlted ceniomri, 329 U.S. at 770. 120 S. Ct. lit 1861 , Thus. the issue directly pre:tented to the Cllun in Sttll~ns Willi whether II State or state agency could ~ subjeci to FCA lil\bllity in a (1111 wm case whcn the Governmem does not intervene, 1101 the brt)llClcr 'Iue$tion of whether (lilY rollI/or cnn proceed wi1h his or her cnse arter the Government IHl~ declined 10 intervene. Neverthcless, JUSlten days hefore IInll nrgument, Ihe Supreme Coun expul1ded the seope of the case and requcsted the purties to brief the Issue of whether Stevens hud nny ~t anding lit 1111 to bring his claim. n. Yuill. sUfJm 8 UNA Health l./Iw Rcp, Ilt 1875, 1lle Supn:mc COOrl heard argumenls iii llCheduled lind issued its opinion on May 22, 2000. On the dil't'l.'1 issue involved in the appeal, kven JuMices ruled in fnvor of the Venllont Agency of NllIUIll ] Resources. holding that Stllles l\R\ not subjcct to qulwm liability because Stmcs are not "persons" undcr § 373O(b)( I), Sltt\Jf!/U, 529 U.S. III 787, 120S. Ct, at 1870.' On the stnnding i~$uc. nll nine Juslice.. conlirnlcd thutthe relutor possessed the "im-dueiblc constitl1tionul minimum" of 5tllndins under Article II I of Ihe Constitution 10 mnlmoin his lawsuit without the Government. TIl!: critical issue in this regard was whether the r'\'Ilu:Of could demonstnlte "injury in foct," or tI "'concrete privute interest in the outcome of )the] suit."· III, al 1862 (quoting 1..JIj(m I: lk/clI(lus o/IViI(J/l/tt. S04 U, S, 555, 573, 11 2 S, a . 2 130. 119 L, Ed. 2d 35 I (1992».10 get al'Qllnd the: ar;ument that the rel:itOf's "interest" in Ihe law~uit-the righlto a boumy upon nn)' recovery for the United Stlltes- is notllCtunlly rdmcd to lhe Injury to Ihe United State~, the COUrI invoked the: concept of fYffJ/Y'Ullwl;o/ial standing: "[A]dequatc basis for the rellllor's suit for his bounty is to be found In the doctrine thm the flssignee of \I clnim hflS siliniling to aSSCl't Ihc Injury In f(lct suf. fered by Ihe assignor." 1(1, tit 1863. In Ught of the "long \rIldition of (lui /(1111 lICtion~ in Englllild and Ihe Amcrican Colonic.~:· the Coun was comfonable holding thnt lhe Unitcd Slatel\' injury in 330

SB t' TUM8BR 2001

fact WIl5 enough 10 confcr sianding on the re]ator.' /cl, Critically, however, in a footnote, the Coun expfel;sly left the door open to continued constitutional chullenses to the rcA's qui/am provi5ions under Article II of the Constillltion, 111e Court explained thai in concluding Ihat a ql,1 /(1111 relnlor ha~ conSlitutiOnol standing to bring nn lIelion under Arlicle III. "we express no view on the qUcslion whether qlll wm suits violute Article ]1 , in ptlrlieulnr Ihe Appointment.q Clnuse of § 2 llnd the 'mke Cnre' Cluusc of § 3," /d. 01 ] 865 n, 8. 111US. the Anicle II constitutionlll defenses argunbly remaifl vilible. and bullIes con,inue to be wnged on this front in the lower couns. Most recently. Ihe full Pifth Cireui! rejected the Anie]e 11 arguments, in U"ited StaId rx ,.ri, Hiley v. SI. l..ukt! 's EI,lseQ/",1 lIosfJilal , 200 1 U.S. App, LEXIS 10832 (MIlY 25, '200] 51h Cir.). In 1997,lhe disirici C~lM dismissed qui til/II rcllttOl' Riley's claim! on jurisdictional grounds, concludln& Ihal Kiley IBCked Anicle III standing 10 sue because 5he hlld IKlt sulTered ~ny injury-in.fnct. Su UII/lcC! SllIlcs t!.l rtl. Riltty 1'. SI. Ulktt's 1:."plsco/Hllllo.rlllw/, 982 P. Supp. 1261. ]263·69 (S.D. Tex. 1997). On uPI)Cul in 1999, u thn::e-judge p!mel or tlte Fifth Circuit pnnel clisngrced with the dimicl COUI1'S decision Oil slIlIlding (II decision which. us we IHlve secil. WIIS Inter validUled ill Sltt!·t!/lS), but It flfJrrmctl (by II 2-1 decision) the dismisslil of the ease on Anielc II grou nds. U"I't!(1 SIiI/t!S u ",I. Hiley I'. $1, Ulktt'tl:."pisco/HII !101p .. 196 p, 3d 514, 523-24 (5th Cir. 1999). In making this decision. the panel focused on the test announced in M QrriSQ/1 1', Qls(Hl, 487 U. S, 654. 108 S. CI. 2597, 101 L, Ed. 2d 569 ( 1988), whe::re Ihe:: SUpn::I1l!: Court upheld the conStitutionlllity of the independent cou n ~1 ~tlltute . In Morrison, the COUrI stated thnt lhe I(:.'\t of constitutionltlity of congressional action thnt mighl undcnnine the Ext:<:U1lvc's conduct of litigation is "whether the Executive Bmnch retllins sufficient 'control' over the litiglltion 'to ensure Ihfitlhe President is uble:: to perfonn hi ~ constitutionally assigned duties,''' Hlft)'. 196 F. 3d m 525 (q uoling M orrisO/I, 487 U. S. lit 696), Thc pnnclthcn considcred the qlli /(1111 provisions p.1niculnrly nnd concluded Ihat they (llilthe M orris(m test ~IIUse when the Government doe!l nut intervene, "important snfeauards that ensure Ihe Allomcy Ocncrul'~ control Qf the indcpendent counsel are lacking." Id. at 527. The panel ~ptCiflCBlIy pointed to the ExC(;utive's lock of conlrol over both Ihe decision whether to pursue lin FCA claim. lind control over lhe liliglliioou it SOC.!! forward. TIle Court blso drcw Stark contOlsts on II number of fronlS betwccn the indepen<km counsel law UPPl'Oved in MorriJ'Oll lind Ihe ck:]eglllioll of ExeclAive power involved In qlll /(1m actiOI1S. Id. III 525-29. Pursuunt to Fifth Cireuil rule. the punel's decision WIIS immediately vacaled, nnd the Coun reconsidered the case Ill! balle. See Id. PI 516 n. l. After Ihat rehearing, the Courl reversed the panel's dismissal of Kiley's IlIw~uit and remanded the case to the district eoun . First, the Court stilted thlllihe ICIng hiStory of qui wm statutes in our country's jurisprudence. ~' hich the Supreme Coon foond to be persuasive suppon for the statute in nddre\sing the Article III dcfcnse. is jusl 115 penlllasive whcn considering the Aniclc II defcnses. 1(/, at ·5-6, Se<:ond, the Coun hcld thnt (1lIllflm eases do not violme Ihe 'TIlke Care clause of Anicle II becausc the Execulive reloins "significant control" over the litigation even when it hDS notlnter~CI1t::d. Id. lit ·7. In fncl, the fu ll Court disugreed with the panel's npplicn. tion of the M orr;SOfI I ', Obo" control test be(lluSt "it Involves un entir'\'lly dilTerent lawsuit and requires entirely dilTerenl con-

trol mechanisms." ftI. at - 15, PiMlly, the Coun summarily rejected the Appo.ntmenls Clause argument, stating th;lt qlli Itllll n:lalOr$ nre not officers of the United States. flf, at -20. Circuit Judge krry E. Smith, who authored the Rifey panel OI)ll1iOIl, is~ued u vigorous disscnt to full coon's decision. Judge Smith was even n:ore strident in di uent than he was in his panel opinion in Rfguing 111111 the IllIi IIlIIr provisions violate $CparrlliQII of powers principles it pUlling "unnccounUlble. sclfiruere~ted re lmors .. in chnfge of vindicOling govcmnleru rights." Id. nl -46-41. In shon. dcfcndllnls llssening the Article II ddenSC5 should sludy this opinkll1 carefully, as it provides II lengthy and well-lessoned argument otlRCking the constitutionali ty or the qlli IIml provisions. A final common gnJund for moving to dismiss qllll(llII cases is Pederal Rule of Civil P'rottdure 9(b). which n:quiru Ihat "in all avenllents of fmud or mistake, the circum~tlll1oCC.Il (:onstilutin; frnud or mistake lbel simed ..... ilh panicularity." Clnirns IIlllde under the I' A are subjcct to 9(b), Su, e,g .. CooIHlr, 19 F. 3d at 568·69. Thus. in the Eleventh Circuit. a '1111 /11m relator must incl ude [he "who. What. where lind why" ill the COlllplnint: ( I) "1)I'Ccisely" whnt f~I.'iC or fmudulent 5tntCIllCIlIS or omissions were IlIl1de; (2) who mude such sl ntcmcnt~ or omis~ions, as well \IS when lind where; (3) huw the United SlIItes WIIS mi ~led by the stlllcmc:nts ; and (4) what the defendant obtnined a5 II resul t of the fmud or fllse stntcnlCrtt. United SIlIII!S ex rd. /Jlltltr I'. Magtl/tlll lIettllll Stn,lets, 101 F. Supp. 2d 136~ , 1368 (M.D. Fill. 2000). RelatOl'1l often argue: fOf IIpplicatiOll of II rehuted stllndard under Rule 9(b) in eases alleging widespread fraud where lhe relmor clln Itllege thllt the ne<:e$SHry infonll:llion is within the defendant's control, bIlt couns will not allow this c.cep[ioo to suppon s~u IlIIive lind cOllciuSOf)' nl1egation~. Su U"luul $WltJ t...: rrl. l1rulll/ISQIIII CollimbilvH CJ\ l-ltwlll,C{u'l! Corp., 125 p, 3d 899, 903 (5th Cir. 1998). Qlli Will relUlur!j I'elying on mere infonl1lltion lInd belief IUUSt still set forth sume fuctulil bl1Si~ for th nt bellcC. lind courts uppcllt 10 be increaSingly skepticnl uf broud, speculative and unsupponed fmud claims llsscncd under the I"CA. Set. t.g.• id. (dismisSirl, allegations Ihnt the defendant provided medically unnc«..~SIlt)' 5Crvices which were supponed by 0111y slutislical ~Iudies); Omltr, 101 F. Supp. 2d lit 1368·69 (dismissing entire compluin t where lhe re lalor could not identify Illy SI)e<:ifiC occur· rences o( 11 false claim in funhernnce of lhe geocro.l fraudlliem scheme alleged); Un/It'd Slales e.l' fEl. Rlls.fellll £,,1(. lIellllhclII'e Mll/wgtmtlll GroIlP, 193 F. 3d 304, 308-09 (5th eir. 1999) (uffinlling disrnissul of c:ornpluint on Rule 9(b) grmmcls); Ulllled Sl(lIes t',x I'd . CkruSt11 \\ UlbUf(uory CIJI1HJmlioli (J/ J\mtll'iC{r, lilt:.. 2000 U.S. ])i5l, LEXIS 17162 (N,D. Ga. Nov. 29. 2(0) (reje<:ting theoreticII nlleglllions of wrongdoing wilhol.lt identification of lin nctull.I (alse claim subrnillcd ).

Conclusion A clear tumer:;taooinl: Qr Ihc unique COml)lcxities or lite Fc:dcrul False Clnims Act. alonl: with an ability 10 C9ml11unicllte wilh the United Stutes Attorney lind Il5signed Ikpatlme:m of Justice anomeys, Is crilical for the effe<:live defense of Ihe qui lum lawsuit. Dcfendunts fRCe trernendoos potential CXpo!iure in these ever-growing CII$CS, including treble dumagCll, enomlOus monetary pcn:llties nnd significam costs. And wh lle most iut'Orree[ elnimll submillcd to the Go~en1ment nre mcrely Inrtd venent rnistukc.~ which should result simply in rcp.1yrllCnt, II defense which is not well thought oot and prepared liS eMly IS possible during the GovenmlCnt's invesligation of a qllll(mi I\!lmor's aile· gatlons may resull in an intervention by lhe United States. Early discovery of the Inwsuit, 1\ thorough corporate inve.~ugal ion and lin aggrcs5ive defense nrc a ntuSI in order (or de(etMIJnL~ in qlli Itllll cases 10 be successful, Remember. the relator and the relaIOf'S counsel seck II botlluY-lhe larger Ihe better. The GovemlllCnt, while seeking to do justice, relies Inrgciy upon the reIU[or'H allcgutions and evidcnce. lind i~ obviously not averse to fecovcrin~ for the Uniled S[ ate~ Treusury ;IS much moncy us possible. Since thc lurgest payments almost IIlwllYS occur in cases whet'C the GO~cn"llcnt dcddc.~ to intervene, the I)rimary role of defense counsel is 10 convince the United States nut to intervel10C in the rdlltor'lI CI\5C. TIlen, if necesSW)', the defcndWJl can take on the relntor withOltt tile Gover'rlnk:nt, under the more bal:uw:ed flllmcw()ri; provided by the Federal Ru les of Civil Procedure. •

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John Klchu r d Willers• .Ir.. whose wl\ere .. bouts lire unknown, must answer th e Alabamu State BM'S formal discipli nnry chnrgcs within 28 duys of Seplcillber 15, 200 I, or therenfter, the elm rgcs contained therein shall be deemed ndmi ned and llpp roprill to discipline slmll be imposed IIguinst him in ASS No. OO·246(A) before the Disciplinnry Soard of the All!tlluna SUlIe Bar. LAmar FIl I'II1'11 Ihull , TIl, whose whereabouts :1I'e unkn own, IUIiSt !l ll$WCr the Alabilllla Stnte BM'S fOl11lal di~iplin3ry charges withi n 28 dnys of September IS. 200 1. or thereafter, Ihe chargC5 contained th erein shnll be deemed ud rniued lind npl'rol'riute discipline shall be imposed uglli l1st him in ASB nos. 00-252(A), 1-83(A), OI-84(A) lind 91-85(A) before th~ I)iseiplinury Uourd of Ihe Aluhmllll SUlle Bur.

Reinstatements 111e SUIJremc Coun of Alaba ma entcred UI1 order on July 2, 2001 bused upon the decision of Panel II of the I)isci plinary Board suspending Onvid J l!ronltl Hlt rrisoll from the practice of 11IW in the St3te of AIlibamu for u period of 30 months, effective retronctively lind concurrcl1 tl y with iln in terim ouSpension imposed by consem by the Disciplinary Commission eJT«:tive M;IY 30, 1991 . This discipline WIlS based ul)Qn Hnrrison's plea of 811il1y in ASB No. 91-25(A) to violating ntles 8.4(b), (d) and (g), A.R. P.C. On Murc h 6, 1991, I·Iarrison WIIS convictcd in the United States District Coun for Ihe Middle Dislrict or Alabama on one count of conspiracy to distribute und possession with intent to distri bute melhmnphetumine. Hll rrison was sentenced to 30 months inll,dsonlllellt, After (\ hellring on Hurrison'g petition for rci nStfitementl)ursuuntlO Rule 28, A.R.D.I>" Harrison was (Cinstated to the pnlctice of law ill the State of Alabama on a probmiotlory basis for two years. [ASI3 No, 91·25(A) and ASO Pel. for Rein . No, 01 -021 The Supreme Coun of AI~barlla emered an order reinstming Birminghom attorn ey Rose Marie JO lles to the practice of Inw in the Slme of Alabllmll effective June 4, 200 I . This ordcr was ba~ed li pan the dcci ~ ion of Punel VI of the lJisdpUnl\ry Ball rd. J one~ was previously suspended for noneomplinncc wi lh eLI! requiremenls. (AS Il Pet. No. 00-11 [ nle Supreme Coun of Alllbllmll entered lin order bused upon the decision of Pllnel I of th e Disciplirlllry Board of the Alabmnll State Bar reinsUlling Birminglmlllllltomey CI\lvln Seely Rockefeller, III to the I)racticc of law In the State of Alabama. effcctive Febmary 21, 200 1. (ASa Pel. No. 00-091 The Supreme Coun of Alabama entered an order based upon the dcc ision of Punel IV of the Disciplinnf)' 80Hrd (If the AIlibama Stllte I)ar rein_ slllIing Alabllster attomey Rk lm r d Wayne Mlzcll, Jr. to the practice of IIIW in the State of Alub:lllla, effective JUlieS, 2001 . (ASB Pet. No. 01 -03J 332

SE I'TH MSIlR 2001

Disbannent 011 April I J, 2001 , the Supreme C(lun of Alabmnn entered nn orde r based upon the decision of the Disciplirmry Oourd of Ihe Alabama Slale Bar d i ~bl\r rillg Ri chllrd J ude SIJurilu from the practice of 11Iw in the SlUle of AlllblUIIU. In AS B No. 9S-337(A), Spurlin wll.~ appointed by the Covington County Circuit Court to reprcscntu defendunt on app<:nJ to lhe Alabamu COllrt ofCriminnl AppCflls. Spurlin did not file bricfs On Ix:hlllf of his client and failed 10 respond 10 requests for infomullion during the cOurse of the bar's invcstigmion of the IIIlItter. ln ASB nos. 99-04I (A), 99-4I(A), 99-48(A), 9949(A). 99·12(A), 99-80(A), 99- 125(8), 99-134(B). und 00-o2(A), Spurlin "purchll$Cd" the low practice (If retiring Il nomey Vreeland Gerold Johnson. Thcreaftcr, Spurlin Ilcceptoo fcCli from fonner clients of Johnson Lmd fmlll new clients who hnd never bc:cn rcpre.!,entoo by Johnson. After accepting these fees, Spurlin did little or no WOrk on behlllf of the clients. In ASB nos. 00· 154(A) and 00· I5!5(A), Spurlin WIIS retalned to repre· sent cliellts in vurious civil acliorlS, After ll~'tepti l1g the rcpre:>Ctlllllioll, Spu rlin did little or 110 \I,oQrk orl behalf of the clients. On or about December I. 1998, Spurlin abumlonoo his client~ Hnd the pmctice of law in the SI3Ie of Alubam3. Spurlin did nOinotify the clients thlll he wns tennirlllting the represcntlltion, nor did he refund the uneilrn/:d portion of the rt:t~iner fCd pirid by the cliems. Dllring the course of the bar's investigUlioll of Ihese mailers, Spu rlin fuiled to respond 10 rcpem~'(l req UCStS for informmioll. IASI] nos. 98-337(A) tl al1

Su_nsions John Klc/mnl WAlers, .II'" whose whereabouts 11I'e unknown, 1I1uSt Iulswer the AJuballl1l Stute Bar's fOl'rnal disciplinary charges within 28 du)'s of September J5, 2001, or tllCfC11(ter, the charges contained therein sholl be deemed ~dmiucd nnd npprQl'riote disci pline shall be imposed nsainst him in AS IJ No. OO-246(A) before the Disciplinary Board of the AlllbmnH Stllte HIlT. Lalllllr Fnmdl Ibllll, ITI, who.>;!: whereabouts nrc unknown. mustllnswcr the AIlIrnlllUl SUite Bur's fomllli

disciplinary charJd within 28 doYAof September 15, 2001. or thereafter, the chruge.~ conlnined therein shall be deemed oolllincd IlI\d appropriate disci· pline ~haJl be imposed against him in ASS nos. OO-252(A). 01 -83(A). 01· 84(A) find 9 1·85(A) before the Disciplinary tJoard of the Alabanm Stille Bar, The Supreme Coun of Alllbtunn enlered an order confirming the onlcr of Ihe Disciplinary Boord. Panel 11. SUSpending MQbile attorney LafT)' Cllnlon Odom from the pnlCtice of Inw in the SUIte of Alabama effeclive MardI 12. 200 1. for II period of 91 duys. 0<10111 wns found guil ty of violuling rule.~ 1.3 Idiligence); 3,2 (cc. pediting litigation); 8. I(b) tbar admission and disciplinary muuers); and 8.4 (g) ImisconductJ. Sometime in 1996. Odom was paid $1.500 to represent II diem in a conlested divorce. 'I'hc case W:IS sculed JUSI prior 10 triul. Odom Wll~ ordered to pre. pare the nct-essury documents. have II COflllllissiontr take te.\timony. and file the documents (Of o.judgmcnt of divorce, Odoru fuited or refused to comply with this order, Alier the (.'()rnplnint wa.~ filed with the bat. OOOm wrote the bar on November I. 1999, and slIlIed thatlhe allegation, of the COml)lainl were true but he WD$ unable to refund Ihe fee paid tn him. 0110 111 offered 10 complete the divorce and Il.~surcd Ihat he could handle it within a few days. 111e complaint was held pending Odom's completion of the divorce. Odom fnited or refu~ to complete the divorce. Odom ulso failed Clr refused 10 respond to the Alabama SUle Bar 00 Illinlely basl\. or to otherv.isc coopcrnte with the bar in the ooorsc of its invelitigat)on of Sflid oolllph\int. IASB No. 00-2 1(A») Binninghum llllUlncy JumCll Vineenl Low wus illlerill1ly suspended from Ihe pl'l\Ctice of Inw in the State Qf Alubuma pursunm to Rule 20(1). Alabama Rules of Disciplinary I~edure. by order ot the Disciplinary Comnlissiol1 of the Alabama Stale Br.r effeetive MIIY 24. 200 I. The order of the Disciplinary Commission was bused on Q petition filed by the Office of Geneml Counsel evidencing that Low, on mQJ'C than one occasion. had co·mingled trust funds with personul funds !lnd failed to promptly !\Ccoum for nnd remit tru~ t funds to clients 0 ' third parties, (Rule 20(0); ASO Pet. 1\0. 0 1· 10)

On December 22, 2000. fomM:r Bimlin"halll anomey Iknnls Michael Sawyer received at .... o-yenr suspen· sian, .... ith specinl eQndilions. effective ~embcr I . 1998. In ASH No. 93-043(A). on or about Mny 12. 1992, Sawyer was employed 10 rcprcsellt thc compl ai n~m in u divorce proceeding. Arlcrwurrls. Sawyer fuiled to provide the cOl1ll'llIlnulIt with adequate rcpresentRlion IL'KI foJIed to com· municale with ller reg;vding Ihe status other case. Thereafter, Sawyer hnd hit telephone disconnccted. closed his law office. lind movcd Wilhoul notlfyillg the compluinnnt. In ASU No. 93-261(A), during March 1991 , Sowyer was reu:ined by tile com· plalnnnt in n WO!i;c:r's compensation clai m. 111e complninllnt 1I 1.~0 wamed to bring II wrongful tcnlllllution I nw~uit ugulnst her employer, Sawyer tkclincd to rcpresem her in the wrongful tenniMtion lawsuit. and referred her to another nllOmcy. In 1992. Sawyer pre:;cntcd n settlcment nnd relellS!: ngroe· ment to lhe eomplainllm, nntl IIdviscd her that thiJ would 001 arrectller wrongful tennimnion suil. Hued on this representation. the complainant signed the agreement. LItter the complllinlll1t's nttol1ley filed 1\ wrongfultemli nlllion suit. 11lC defend.'lnt filed for gUlllnuuy judgment which wos gromed based on tiM: worker's CQIJlpensalioll senlenM:llt agreement. Afterwards, Sawyer failed to provide the complainant with oocqullle represe ntation llnd rulled to comllllllli· cme with her regarding Ihe stlltU~ of her case. Thereafter, Sawyer hod his tetephollC disconnected, elosed hi.s law office. and moved without notifying the complainant. In ASB No. 93.350(A). Snwycr wus employcd 10 obtain an uncontesled divorce, ond was paid 5500 in altor· ney', fees. Aftcrwards. Sawyer failed to provide the cOlllpla, nnm wil h ade· quate rt:l're&Cl1lation mId failed to com· munlellte with the cOll1plnil1llnt regard· ing Ihe gtatuS of his clise. '111erenfter. Sawyer had his telephone disconnected. closed his 13w office, and moved without nOlifying the complainant. In ASB No. 93.387(A). Sawyer was employcd to represent the defendallt (complall1llllt) in connection wl\h a,l automobile accidcnt. Sawyer negOliat. ed II SCl\lenM:nt whereby Ihe defendant

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was 10 mnke qu nnerl y Ilny me l\I ~ \0 Ihe insurance carrier USF&O. In June 1992. Ihe Compillinanl Slive Snwyer II sum money which was to be paid to USF&O. Sawyer failed or re fused 10 rem it Ihe rumls 10 USF&G as agreed. Sawyer ItOlururui ly transferred to disabil· ilY hl ~lcl iveSlllUs in Febl\HII')' 1994 due to a subslance abuse problem, and enrolled in a wbstance nbuse progmm in i)imlinghnm. Sliwyer successfully Loomplcled the sub!;tance libuse progmlll. However. he flliled 10 kccp Ihe bllr infonned as 10 his whereabouts. Because Ihese four cnscs were slill pending, the Omce of Gellel'ld COUllsel l'lln a notice in TIle A lt/valll'l UJIII)'lff prepm,llory 10 uud ng a dcfmll1 j\ldgmcm. III res ponse 10 the nOliec, SlIwyer contllCtcd Ihis olliee. As discipline in the fl)ur casc~, Sawycr IIII.~ suhmiued a conditionlll guilty plell 10 II two-year sus pension with crt:dit for lime al rendy spcnt on di:;.ubility ini.cli ~ Stat us. Sllwyer has infomlCd the b.1r thm he hus no immedillte plans 10 relurn \0 Alilbilllla llor does he ha ve nny pillns to resume Ihe practice of law. However. I\.~ II cOlldilion of his suspension. Should he IIpply for rci nSllUemem. he will huve 10 have II henrin, before lhe Oisciplinary i)oord. Sowyc:r pled gui lty to \l iolntions of rules 1.1 lcompetcncel, 1,3 !diligenl;cj. 1.4(11) (I;onullunicmionj. 1.1.5(b) Isafekecpitlg propenyl. and 8.4(S) Imis· conductl of doe AI ll bama Ru les of Ilrofesslolli,1CondllCt. IAS B nQ.~. 93· 040(A). 93.267(A), 93·350(A). :md 93· 387(A)1 1::ot1 Payne mtomey StCI·"n George Noleoi WllS interimly ~uspended from lhe pmcticc or Inw in the Stnte of Alubnnm pursuant 10 Rule 20(11). Alub:mm Rule.~ of Disciplinary Procedure. by onlcr of the Disdpl innry Commission of Ihe Alabama SUlle Bur dmed June 20. 200 1. n le Disciplinary Commission fOUlld Ihut Noles's comillue<l pmcliee of law is COliS' ins 01' is likel) to cause inul1cdiale ulld se riO\IS inj ury 10 his cUcnts or to the publie. IRule 20(0): ASB Pel. No. 01 -0121 nIt Suprc.meCoun of Ai nblU1Ul Cll!cred nn order lIdop:ing the order of the Disci plinary Uonru, l>Unc1 l11. ~ uspend ing Killen nltomcy Juhn OU~11l Morrow front the pt1lClice of law in the Stule of AJabumu effe<:tive MIlY 23. 1996, for fi period oflWQ years to nUl COllcurrelll wi:11 his disoonne11l, Morrow ellIcred II guilty plcl1 lo violutions of

334

SE f'ra MIJ BI( 2001

niles K.I(b), 8.I(c). and 8.I(d) [bar and diS('iplinfu'y nlfi ltl:rsl Rules of l>rofessionl11Conduct. On MilY 23. 1996, Morrow surrcm lc rcd his lieense (lIW agl'CCd to dis~rmen l. Morrow had ll1isnppropri ~led nnd/or convencd I: lic nl~ ' fUlld~ to hi$ perliOrJUI use. Morrow subsequently entered II guilty plea to fedeml r.;hurgcs of nluil (mud und was st: nLCnced to sel'\le Ihue iTl the penitentiary. On M<lrch 21. 2001 . MolTOW submi tted a $igncd eondiliOllrtl pleu. In 1995, Morrow represenled il client ill all estmc maller involvinJ,; n reside nce which wa$ sold. Morrow misapproprinted nnd convened lhe funds 10 his usc. Morrow reimbun;cd these funds to Ihe client prior 10 cri milllli chn1l\cs being fi 1t:d agninsl hi m. jASS No. 96-333(A)J Be.\~ mer ullonley RltH Dilvunni: Ilood was summarily suspended from the pmclice of law in UlC Slnte of Ahlbf\[lla pursunrlltO Rule 20("). Alabil ma Rules of Disciplinllry Procedure. by onlcr of the Disciplin:lry COll1mission of the Al nbml1Q Stille Bur effective M:lY 18. 2001 . '111e order of the Disci pli un1)' Commi$sion wa.\ based upon Hood's failure 10 pllnici pme in formal dbd plinnry prucceding.~ cond uetL'tl by the Disciplinary Bool'd of Ihe Alnbmllll Sime Oar. [Rule 20(<1): ASB Pet. No. 01-081 TIlt Supreme Courl of AI:ib;.lI na OOoltted lin OI'dcr of the Disciplinnry Boord. P'IInel I. suspending Binninglmm mlol11ey Thomns AllIIn Wingo. Jr. from the pmc· lice of law in the SUIte or Alnbunm. effec· live FehnJ:Jry 20. 2001. Wingo hnd been on inacti ve~lmus 5:ncc lan uary7 , 1997, for non-paymenl of due.~ and f<:e!; . Wi ngo failed or refusc<i 10 respond to nUnltmus requcsls for infonl~\Ii on from n discipli. nary lluthority during die course of lhc disciplinnry proceedings by the Alabllmll Stme Bar ruld die local grieval1Ce COIllIliille<: of Ihe BilTT't ingh om 13nr AssocimiOl1. Wi ngo nlso faited or refu$Cd 10 appellr at his hcming at the Alnbmml Stme Bar. '!1ICrI!fOl'l.'. Wingo was found guilty of rulc.~ 1.4(1) tcOlllmunicutionI WId g. l (b) Ibur ildmissions Ilnd disclp]j. nill')' llumers1in ASH No. %-356(A). lind ru lcs 1.4(il), 1.4(b) Icoll1rl1unicl1tionI lind 8. 1(b) Ibar oomissions IllWdisciplillllry mmtersl in ASH No. 98·87(A). Sl:ollsboro IIUOl'ncy Ellct:n RoblnSQn Mllleom wa~ ~umm nrily suspended fro m the prne licc of law in the StO ICof At llbmnll pursuonl to Ru le 20(0). lldmb~ ion

Al nbamo Ru les of Disciplinary 11'octdure, by order of IIlc DiSCipli nary Commission of Ihe Ahlbama Slale Bar dntC(i May I. 2001 . " Ie. I)i ~ip li nllr)' Boord found Ihm Mnlcotn's eOntinUL-d pmctice of IbW is ellu ~ i ns or is like ly II) euusc inul1cdiu te und serious injury to ller clients or to the j)ublic. On MilY 22. 200 1. Ihe Disciplinfiry Commission issued un order denying Malcohn's peli· tion to disSQlve the s\! ll1 mary suspension. IRulc 20(3): AS B Pct. No_0 1-0061 On May 16. 2001. the Alnb.'1mll Supreme Court adoplC(i [111 onk:r suspending Birnlingham 1l1l0l1lC)' Donllid To\\'Il~ 'I'rllwick from lhe prnctice of law in Alabnnm for n period of 91 days effective March 22. 2001. On November 17. 1994. 'l'mwick wus suspentk.-d from ll.c practice of low for il period of 1111 days. Since Ihm dme. Tmwlck has not been reinstmed 10 Ihe pr11Cliee of law pu rsunnCto Rule 28 of the Rules of l) isciplin;lJ)' Procedure. Evcn SQ, 1)11 or nOOnt May of 1999, Trawick engaged in the UJlllu thori7..c:d prnctice of luw by repI'C.'lCnti ng clientl; in r.;onncction with a fence lint: dispule. On Moy 21 . 1999. Trawick sem tile adjocem landowners alet\(..'1' on lellerhend wlul:lt 1dt:lHificd hiln liSfIlllUIOIney nt law. In doi ng lhe ~bove-describcd aclS. l 'r.twick W (iS g\I\l1y of violming Rule 5.5(a) lunauIIlori7.ed pmclice of lawl of the R ll lc.~ of Professionbl Conduct. IASB Nu. 0071(A)1 Montgo mery lIt10rn ey I'uul Whiling COllcluud wns intcrimly suspended frum the pfIll:tice of luI" In the State of Aluhamn pursu ant to Rule 20(11), Alubn nm Rules of Discipli niU')' Procedure. by order of the Disciplinary Commission of the Alabmna Stale Bar dilled April 26, 2001. ' 11e Disciplinnry Commission found Ihul Copeland's continued prnetil:e of tow i ~ ~ aus i llg or is likely 10 cause immediate nnd serious injury 10 his clie nts or 10 the public_ tRu le 20(11): ASH ]let. No. 0l-007j Mobile Iltlomey T homas MlcllIlcl To mllkins WIIS interimly su ~ pe lldcd from Ihe pructiee of luI" in Ihe Stllte of Alabama pursuom to R ~le 20(a), Alnbmno Rules of Disl:iplinary Procedure. by order of lhe Disciplinary Commission of the Alabllma Stme Bnr dnlcd Mny 30. 2001. The [)isciplinury Com m i ~s i on found Ih ut Tompkins', continUL'tl proetice of IIlW is I:llusing or is likely to cause inunedime and serio

ous injury 10 hi~ eliertl$ Of' 10 Ihe publie.I Rule 20(1): AS H Pel. No. 0 1·0 11J Florcocc Iluomcy Ocnnl! Neill Odem pled lullty before the Disciplinnry Commission of the Alnbmna Stille lJar to vioiliting mlc.~ 1.4(b) JcommuniC'I' don] lind 1.5(11) (fees). Alnbmna Rules of Profes~iorml Cunduct. Odcm admit· ted thut he Wll~ n:lnlncd to rt::prcliCnt n cliem to obtain darnllges for injuries tlmt she ~ ustllined as a result of a motor vehicle accident. The client signed lin cmploymcm ngn:ernent agreeing to Po1Y Odem SO percent or the: 101111 recovery obtained in the event suit WI\! filed. Ancr Dbench trial, the COlIn awarded D judgment for $8,IXX'l. Su~ucnt 10 the trial, the respondent attorney leamed tlmt the client hlld $5,000 in mcd.puy bencfits aVllilablc through her insumnee Climer, Odern m;lclc II tlcrmtnd for pay· ment un(icr Ihe rIled'llny provision of the policy IUId received an lIdditional $5,000. Thereafter, Odcm dil>btIl'Sed S6.SOO to himselr in attorney fees: 56.000 to n chiropractor who had t~mcd the clicnt ba.'ICd ~ (}dem'$ rcfcrTUl, anti paid CIISC expcn!iC.~ of S181 . lbe client'S net n:covt'ry was $319. Odcm did not provide II oomplctc accoun tin; to the client III the lime of disbun;cmcnt nnd fniled to respond 10 tht: l,;1icnt'li requeSIS for infomlution regarding the di~bun;cr1lcnt , In accordancc wilh the ternlS of the plea ~reemelU , Odenl WIlS suspended from the practice of law in the StIlte of Alabama for ~ period of 91 days. The imposition of the 91-day suspension WUli ~tay«l Dnd held in abeylUlCC during I two-relIT period of probIltion. Odcm Wlt~ ordered to make I'C.'l titution to the client in the amou nt or $6.500. Other conditions of prom.tion were ortIcred. lASH No, 00. 178(A)]

Counhou'ICon Marth 16, I99S. IASI1 No. 98·298(A)J On May 18,2001, tilt: Di'ICiplinary Commis.~ion iswed II public reprimand without genc:ruI publicuti()rl to MOlllgomL'ry anomey HulT)' ArlhLIL' Lylt:$, Lyles is also required 10 moke restlnttioll 10 the corLlpllLinllnt in the IImou"t of 5500, Lyles agreed to Ihlg proposed disposi tion. On Moy 29, 1998, the complainlllH hired Lyles to represent her in a child custody maner. She paid a retainer of $3.500. which Lyles did not depollit in his trust account. Thn days Inter the complainant infonned Lyles that she hud ubulincd other coonscl and uskc:<l for the return ofher money. Finally, In MfltCh 1999. Lyles refurn.led $2,500. In the memnime, the com· plniniUu h:l(ll0 pay anot her lawyer $500 to write Lyles Ihree letters concerning her reflULd, Lyles fni led 10 provide the coml,lniannt wi th un lL."COILrlting for the 5 1,000 he continued to withhold. LILler, Lyle.~ mllde IlIl additil)T1D.I $500 refund with 11 leiter of upoloBY. After the rom· plailllUltliled a complaint with the Alubnnta SlJIte Bill', L)ICll n:fundl:<i the la~t S5OO. Lyles violmed rules 1.15(a) lsafekeeping properlYI and 1,I6(d)

Ideclining or tenninnling rqlfCSCntation) of the Rules of l'rofcssionul Condl.JCl lASS No. 99·093(A)J On MIlY 18.2001. FlorcnceaUomcy Wllllull1 Mllrsludl Gllrdntr received a public reprimand without gene",1 publi· cation in connection with tile: oompillini filed agninst him by Judge Debomh ]Juscur of the LnuderdlLle County District Cotrn. On Scptember 8. 2<XXl. Judge 1'1l.'ieUr lient a letter of complnilll 10 the bar ~tm ins thm for the pn:cc<lina six monttu Gnnlner's condLICI in her COUll, during four triuls. wns. " .. . totally unacceptable. orrt'nsive to partie.~ und offICerS of the court, liS well n.~ to this judge.,," On September 7, 2000, during n criminal trilll in which GlI'dner IlCted R.~ dden.o;c cou n ~l , Judge P1,scur had \0 ndlllonish him for continually mIlking inappropriutc COllmLcnlS in response to objections by Ihe di ~tric i allOMley, or in response to nn adverse ruling on Gardner'~ objections by the coon. The Disciplinary Commission found that such conduct violated rules 3.5(c), limpnniality and decorum or the tribunaIl, 8.4(d). and 8,4(g) jmlscooductj or the Rules of Professional Conduct. lASH No.00-222(A)j •

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direct WlIISrt. propllrty loss preparDtlon Mombel SA MC

ContICI Douglas F Miller, EmplOyera' Risk Management PhonIIZOSI995,OOO2, B,rmirogham, or WATS (8001462·5602 • HIGHWAY SAFm AND TRAffiC ENGl· NEERING: HIg/1w3', salmy and trallre: trlgl,.,· inoln the rO<idway (nvuonmenL construction wort loneS, roadwD1 hawds, rO&dSldtI NUDrdl, RR grada cro5slrogs, Hellic controls, hlghwoV engil\fllrring saloty lIandBrds. lKtiden\ recon· Structlon. drl'lOl rear:trons and expectatrons GE lotrr. PE. Box 12339, Cl\arl(t5ton. South carolina. 29422·2339. Phone (B43) 795-7218 E· mall IohrgOmsnCOl/7 • FORENSIC DOCUMENT EXAMINATIONS: Seventeen yearl' forwrc cIocument Wt8Illlna tror'I$, 21 yoII1' total 'or_II: ~ Retired senrorllDwTrtntllQrtllnef and diaciplrne coordl. I\8tor, AI&b8ma Dep&rlmel'll 01Fcrrl!l\llic 5crences MomOOr, aueSiionnd Dor:Ui!WInt SactlOilAmerican Acade!rrI rJ forwrc 5cIIl!'COS, Southeastern As$oc~tlOll 01 forer\SIC [)xum&nt Eumroml. SouIhem As$ocJ8tron 01 Fotensrc 5cl8l1tIJll: Alabama Stale AssocI8II011 01 fO/'ensrC 5c18l1t$S lpasl pn!srdlnll ContllCl Rrc/IIW'd A RopGr, Ph.D, 7956 Va.rghn Road, 1141, Montgotr'l6l'(36116 Phona(~I200-2552 Fax (334)26£1.7929 E·/Mi. l/CIrrJpetOaoIcom • RESEARCH: Need halp? call Jeckson lor holpl Rell8Drch lor cawl, fIIol proponv, IB~, 11110s. changlllg 01 laws. anol court CBSes. Hovo law dGgroo call 12051 421·5287 • REGISTERED FORESTER: forty-one yean' exptfI8I1C8 III P'lWI8, Ir;;krstnallnd "'allomst IlIUfIBIj9I!lenllllld ~actrcel $peclahlll"o\l In trrnbor tr9SJlil$$ 1Ml11Io'l1l0ll1 rod lICQIIi$ilion awtIlsals E~ A. Spera, Ann SIO"I. Phona (256) 231..t».l • HANDWRlnNG EXPERT/FORENSIC DOCU· MENT EXAMINER: O\BFOE ceflilied formGrly Chlel, Oue5tiooed Oo;umonts Division. US /lJmy Cflminallrwo"igalron l~bor&tory Ammrc;an Sotlllfy 01 Ooestroned Document uam.ntlrs. ArOOllCIflAcatlomy of forensIC Sclonces CM! and Cl lnlnal CoIIS8I IICC6ptod Farrell ShIYOr, Shll'tlf!o Nelson DocYmrlnl InvostlijDtlon laIlO!Bt~, 19o:llllM: Ridgo OrlVO, Woodstock. Geo!gla, 301119 P!IOIIII (770) 511·

...

CONSUltiNG ENGlNEERJUlPERT WIT· NESS: ProfeSSional engineer with 24 veDra of indusulsl. conslHlCllcrn, 11110tv, machineI'(. SIld pulp BOO Pllpor a~polllll1Cl 18<1' 8 "hands-On" engineer Wltll an plrtmely strotl\l mecllllnlCBl aptitude I worlced IS. ted1niclBn end rneeh&nre:

betore IIIIn,1"o\l mv d8grflt In 9fIQl~lng IIlavtt IUPllfb troobleshoolrfIQ etilitlea, with 8 thor· OI/gh koowleOae and ~erslllnding 01 mach,n· 91'(, iOOulitri.1 !lCcl(lijn", OSHA, building codes. automobile ICCKlenlJ, product liabihly, and delenq Robert T Tolbert, PE PIrone (205) 8569922. Fp (2051 BS3·~353 • LEGAL RESEAACH,wRITING: E~ pollo!\Cod membor of tire Alabama 511118 Ba! can ptO'lkl. quahly assistance wnh a~lIato brrels. Iflal briefs, fIIIlCOllanoaus Ilial pteptlf8l1ans.1ega1 memOfenda, moilOllJ, pilladingl, lIIulament pack.aglla. and medrcal OOposilions Use my seNlces 10 J\trlp you conlrnoO baing tho lawytll yOI,I "live to be Wiltrout s/Iotlchanglng yoor clrellli. your lemlly or VOUrseli ConlaCt Emily J Hurlt PO Bo~ 5S3S8, BlmlllQllam, 35255. Phone(205)J22-I.t38 E·/lltlillHIlhutstObBll· SO/J/h.oot. No 'opreSSfl/IJ/1OfI IS made rMI /Ilf qlHl/!/r 01 legal sorvrcos /0 btJ pc,formfXi is {}fOalDr r/rBn rM QUality 011of181 services 10 btl

If you don't have the time necessary to resea rch your opponent's arguments or write your brief, tlten

I CAN HELP!

(JOf1(J(mQti by 0/h6r /8wyflrI

For S ....... ItIL ••• 1I • SMITH LAKE LOTS; Watlrhoot lotl. tlllee and four (lCfOI and 200 f!HIl of watll!f!Dflt. morll or less Severallrom whiCh 10 choose Cor..-rly bd 82. Cullman Courlly, Cold SpringS Area, COnYlIIlItIIt to 1·65 YUHounc! and Hason&! water 1011. Water and po'MIr available Rllrltrlcfad, VOl'( privale, alJ,rndant hardwoods lind wlldille Starting at S62,500 Some lOti are brOker-owned Tyler W Goodwyn ProfllJflies. Phone (334J 978·5400. OFFICE SPACE fOR lEASE: Amp Rod Mou rltain, BI!mingrnrm C~'lont lv oolng remod· oled dUG 10 Febrllo'll'( Ilorm dama!le. ESllfnatod compiotlOl'l date Ottober 1 Come design yOI,Ir own spaet PGrieet f1lr prolnllOllill and/or any type OIlICB 8,150 sq toot IVJllabie and will subdl~lde Cell Gorh8m Pr~rliel.(2Iffi194J.

9339 • LAW OFFICE AVAILABlE: Fiva Points. ncwty r8fllO<leled, SouthSKlalaw otflCe available lor solo allorneyjll Fasl DSt IntOlnat IICCBU, 1117 22nd Street, South, Blrml~ham New p>lone SV'1em, etc. ·Vlrt ~BI" olilee or "corporate Image" also oV81111ble 10/' \hosa needIng limited tonfererocl room lime Rec:lPtrOl1rSt and otIIef anclllllY IIIViees PfOYlded One 1181 ree that irocludal phonI, utllrtlEls. lilt Call Tom PIooIf, esq " (ZOSI939-1XXX1

A:J an l llOtney witb ~i&blc. n

YUrI

uperience In and writing 1 have thd time ne<:lIuiIJ)' for tIIo I UM lainud, unilllcrrupl~d rcsllllr<: b 10 often neadad 10 wi n G <::lM , Wben your use If full y rcselU'cbod yo u can r1IpreHnl y OUl" d ien! with more co nfldellce lind be better PI'llPlifeU in <:o url. I am Iyolill.bl~ ror ,borl ru eattb questionl or I~n g tb ier brillr, . My laic II 535.00 per bou r, KlllhHln. S , Wwd P. O. Bo~ 590104 Dinninahlllll. AI. 35m r~~ lU"Cb

(205) 941-1496

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OFFICE SPACE: Homewood ollito or ~t. 01 olticnlY8llilble. hmr$hed 3ffrce can be proyitIed, 1wO tonterant.a rooms. IbillY, c:oprer. lax. Ilfl

1111/1111 IIIII//(

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voico mall. rocoplion. fu ll broak room. fi la stOl" ago. flee pilrkirog. Joi n three othor auOrrl8yS: Oroat loetJtion tostart 01 bYild 8 IlIOCtice. located

ATTORNEY POSITIONS

at 200B CreSCOOIA\1lIlOO Phone (2OS) 87902'999.

Prominent hlw firms ucross Aluburllli have immediate openings fex'rlssociales und pun ncr-level luwyers with eltperience in any of the following areas: • civil l ili g~ll ion • bnnknJpt(;y • labor und employment luw • csWte plunning • intellectual llrOllcrt y • corporutc luw

• SPACE FOR LEASE: OfficII lor IOW'(llr. ZZ30 Third Avenue. NClflh. Birmingham. Wheeler Buildll'r9 Ilarkll~ lor BUorney. !ocrotary ond chlll\ts. lIbr.lfy/ltllitles. rllCClltionist. copy M/lch lne/fa ~ ClIII Wayne Wheel6f (2051322· 0627 Available Immedlatoly. • OFFICE SPACE IN HOMEWOOD: Indlvldulll OIliCD! or sultos ~vDil8blo fOllagal or other Pfo' fossionals. lew li i)(ory 8/1<1 plush conforonce room DVlIliablo f(lf oach tenant's use. Pr ivate p&rkinll AeesO/Ilble mtas Cell Jim McFerrin (2051870·57(14. PROFESSIONAL OFFICE AVAlLA8LE FOR SUBLEASE: locatod In Iho heart of Homowood. this oWee IS 100 squsre feet. It Includes 8 confe'once room. two prolessiQIUII offices ond e supply room Both olliees have windows. Very CJnvcnlent loc~IIOfl. Call (205) B71·B179 or (4Ot) 525·6664 fill morO details.

sac.

PU8L1C INTEREST ATIORNEV: The Southern interesl Organilillion providing legal OtM!cacy and laadorship (II priority MvirOllrnMlall$$ues In tOO Southe8Sl soaks oxcellont laW'(llt with str ong lICodomlc bac~Olound. 4.. yosls" Irllga· lion OXp(lrierrco. for our Atlanta. Georgia office Salary Is COmp(l~ltve and commensufBle with

Nun )IOtlU

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• AnORNEVS; AnorMyS MlKOO for oxpandirl\l mid,slzOO downtll'M1 Bllmll1g~am IIIW firm InlOJOSIOO onorll6YS nl\I$1 have fltJ)8llence in 1110 practice of omplovment,t1abor law ero-J have eSlotlliVoed prectic" ExJ;ellerrt beneril5 811(1

lQrv,j·tenn care opportunity AI flIjllies wmbe kepi

Environmental Law COnter. a leading public

eXpilrience: excall~nl ~ll\Ill ti. Apply In Wlltlnll With resume. law ~hool uanSCflpt, al laast threB rBlerllflCBS 10: Clr men Horner. 201 WeSt Main Sirnal. St~ . 14. Chmlotulsvllio. Virginia 22902. WVt'W.rourhfJllWnV1f{Xtmalll.rxg.

Positions Offered

POv

All ;ngujcies lICC siriclly CQuGdc lltinl. Pleuse COlli act Richurd G. Brock. Esq.

• LAW FEllOWSHIP: lila Southern Environmootallllw Cantor is also accepting applications for a \WQ·filllr ilsstltima ~nO/ncy positlooin It' Alianll. GDOfg,a oUics law gradu· atllS and pr!IClicing 8\10rn\M Will be consldttred. Sllong acooomfes ICQL.lrOO, litigation Of srwlron· mcnl8la(/vocacy expell8OC1l preferled Salery $47,000 to $49.1XXl. ~$urDle With e~peri·

enea. excelloot beoolil5. lIppIy in 'Mlling with resumu.IBW school tJllflsc ript. at leasllhroo ref·

eronces 10: Carman Hanor. SElC. 201 West Mein SUIIOI. Ste. 14. Charlol\oSVIlio. Virginia

sllictiy conlklenclal. Oualified Bl101'1l1!'f! may ~pPiy by sending a resume 10: Spain & Gillian. Atm: Admimstrator. P.O. Box 11l5Bl. Billfungham. 35202 • ATIORNEVS WANTED PART·TIME: Mon~ry. Huntsvi lle. M~B. Birmingham. Ft !laMing. U.S. Amrf Aeserw JAG Mu~1 bIl Willing to com~lIte 3 weaks task traiMIQ. E·mail: wuilllalwnOmJndsprll{J.C(Im (JJ goarmYJlIgGt!alltlllilcam Phmo (2001444·0925 or 1404) 975-95B7 •

22902. www $out/mmfrlVlff)nm()IIt.(N(J

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(205) 492-0815 inquiry @god ieali ns ights. not 338

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