ORANGE COUNTY
Volume 130, 2017 $6.95
5 Tips For Starting Your Own Law Firm
Jeff Kerr
7 Steps to Productive Meetings
Handling Conflicts With Your Colleagues
Shawn Healy 5 Ways to Improve Your Law Firm’s Culture
Paul Burton
Mary Redzic
What’s Hot and What’s Not in the Legal Profession
McIntyre’s Civil Alert Organized Succinct Summaries
Bob Denney
Monty A. McIntyre Making Clients’ Lives Easier
Attorney of the Month
Sally J. Schmidt
Ronson J. Shamoun
RJS LAW – A Tax Law Firm Innovation, Inspiration & Collaboration:
The University of San Diego School of Law – RJS LAW Tax Controversy Institute
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Keller/Anderle LLP BUSINESS TRIAL LAWYERS
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ORANGE COUNTY LOS ANGELES SAN FRANCISCO SILICON VALLEY SAN DIEGO
2017 EDITION—NO.130
TABLE OF CONTENTS 6 Five Tips for Starting Your Own Law Firm by Jeff Kerr
8 Seven Steps to Productive Meetings by Paul Burton
10 Making Clients’ Lives Easier by Sally J. Schmidt EXECUTIVE PUBLISHER Brian Topor EDITOR Wendy Price CREATIVE SERVICES Skidmutro Creative Partners CIRCULATION Angela Watson PHOTOGRAPHY Chris Griffiths STAFF WRITERS Jennifer Hadley Bridget Brookman Karen Gorden
12 COMMUNITYnews
ATTORNEY OF THE MONTH
16 Ronson J. Shamoun RJS LAW – A Tax Law Firm Innovation, Inspiration & Collaboration: The University of San Diego School of Law – RJS LAW Tax Controversy Institute
by Jennifer Hadley
22 Five Ways to Improve Your Law Firm’s Culture by Mary Redzic
CONTRIBUTING EDITORIALISTS Leigh Stringer Monty McIntyre Paul Burton Bob Denney Shawn Healy Jeff Kerr Mary Redzic
24 Handling Conflicts With Your Colleagues
22
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28 What’s Hot and What’s Not in the Legal Profession
by Bob Denney
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Tips for McIntyre’s Civil Alert Starting Your Own Law Firm Organized Succinct Summaries by Monty A. McIntyre, Esq.
by Jeff Kerr
W
hen I graduated from law school in 2010, legal jobs were hard to find. After a brief stint as a staff attorney, I wasn’t optimistic about finding a job that would fulfill the dreams that led me to law school in the first place. So, I started my own law firm with a law school friend, called Mays & Kerr, LLC. Neither of us had experience as lawyers or business professionals, but we were entrepreneurs at heart and passionate about the legal profession. Despite our inexperience—and some early mistakes—our practice took off and the firm has been very successful. Based on building my own practice and helping several friends and colleagues also start their own, here are five things I learned about starting your own successful small practice and keeping the big picture in mind.
1 2
KEEP IT LEAN
3 4
The best thing about starting a law business is how costeffective it can be. Lawyers don’t need to buy any specialized equipment or tools. Give us a computer, a phone and a suit, and we can start making money representing clients. If you can forgo renting office space, buying an upscale desk and other “nice-to-haves,” then you’ll take more money home. Staying lean also helps immensely when you start to invest more in your practice. For every dollar spent, you’ll ask: “How does this expenditure increase my ability to generate revenue?” Getting to the next level often requires a willingness to increase operating costs, but you’ll invest wisely because you’ll know you can function without frills.
SPECIALIZE
When first starting my practice, I thought it would be fun to be a general practitioner. I quickly realized it wasn’t—it was my personal hell. Like most people, I enjoy being competent and knowledgeable in my work. But when I was taking family law, personal injury, employment, probate and civil rights cases, I never felt fully knowledgeable. I didn’t know answers to most of the questions that came up. And, while I could find the answers eventually, this was no way to practice. Soon I made a 180-degree pivot to specializing with a laser 6 Attorney Journal Orange County | Volume 130, 2017
focus on a single species of employment law: claims arising under the Fair Labor Standards Act. Despite my lack of a preexisting interest in wage and hour law, it seemed interesting enough. So I learned everything I could about it. After six months, I knew more about this tiny neighborhood of the law than many of the more seasoned lawyers I litigated against— not because I was smarter than them, but because I only did FLSA cases, whereas they handled many varieties of cases. Also, I found I had more clients than when I was trying to be a general practitioner. Nailing a niche turned out to be the key to enjoying my job and making a living doing it.
BE SMART ABOUT LEAVING YOUR CURRENT JOB Most lawyers start their first firm after leaving another law practice. It’s extremely important to wrap up with your past firm and transition clients in a way that won’t create legal or ethical problems. Refer to the ABA’s Model Rules of Professional Conduct and guidelines from your state bar for information about ethics requirements. Regarding legal duties, note that you may have fiduciary duties to your current employer. It’s never a bad idea to consult with a business lawyer at this stage. “The Lawyer’s Career Change Handbook” author Hindi Greenberg provides great advice on how to make a smooth transition in her post “How to Successfully Leave a Law Job.” She stresses that remaining on good terms with your former employer should be a priority: “You never know when you may need to work with your former employer again in some capacity, ask for a reference or have some contact in an unrelated business situation.”
PREPARE FOR A RAMP-UP PERIOD While starting your own law firm can be inexpensive, that doesn’t mean you can jump in without financial backup. Building a base of clients and cases takes time. Make sure you have enough in savings to cover your living expenses while revenues are growing. Think about your personal living costs. Look at your budget (and bank account) to see where you are spending money each month. What unnecessary extras can you live without, at least temporarily? What necessities
can’t be ignored? Think about mortgage, utilities, health insurance, meals. Estimate how much you need in savings to cover expenses for five to six months (assuming you don’t have a penny of profit come in during your ramp-up period). Be sure to add in a buffer for those unexpected situations that always arise at the worst possible moment.
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DON’T SKIMP ON ESSENTIAL TOOLS As with any other business, you will need to spend money to make money. Carefully consider how to spend your seed money, but don’t skimp on the essentials your firm needs to operate. We all know time is money. So keep in mind that cutting corners often turns out to be more time-consuming and more costly in the end. For instance, you may save money up-front by using a cheap scanner and PDF editor, but these will cost you time that could be spent more efficiently. n Jeff Kerr is a former litigator and CEO and co-founder of CaseFleet. CaseFleet is a case management software that empowers litigators to win more, with tools for crafting timelines, legal calendaring, billing and more. Jeff writes about law firm start-ups and other law practice topics on the CaseFleet blog. follow him on LinkedIn and Twitter @ Casefleet. Previously published in Attorney at Work.
Attorney Journal Orange County | Volume 130, 2017 7
Seven Steps to Productive Meetings M
eetings are the most expensive periods of time we spend together. Try, for example, adding up the loaded employee cost of a simple weekly status meeting. Your answer will make it immediately clear why meetings need to be highly productive to justify the expense.
EFFECTIVE MEETING ELEMENTS Let’s focus on the components of a meeting, and how you can use a new structure to produce more efficient meetings that get the job done. These seven simple steps make every meeting more productive:
1. Set an Agenda How can meetings occur without an agenda? It’s like scheduling a business trip without an itinerary! Agendas are simple to construct and distribute. The road map they provide not only prepares attendees for what will be covered, but agendas are a terrific way to keep the meeting on track. The more specific, the better the road map, and the more likely you are to accomplish the stated objectives.
2. Make Sure There is a Hard Start and Hard Stop Meetings need a physical structure, which means predetermined start and end times. The old saying that “work 8 Attorney Journal Orange County | Volume 130, 2017
by Paul Burton
fills the time allotted” is completely true. Always state the start and end times at the beginning of a meeting. This serves as a reminder and sets the parameters for everyone involved.
3. Prepare Necessary Materials—Only A lot of work can go into preparing for a meeting, so prepare (or instruct others to prepare) only what is truly necessary to communicate effectively during the meeting. One thing that should be eliminated from virtually every team meeting is PowerPoint slides! Read that sentence again because it’s important. Most people use PowerPoint to put their speaking points on the screen. BORING! We can read speaking points, so why are we here in a meeting? Moreover, creating a list is much easier to do in an email or Microsoft Word than in PowerPoint—and there’s no setup time required to fiddle with the projector and such.
4. Distribute Materials in Advance Send out materials well before the meeting—preferably, the day before—with a request people review them and come prepared to discuss the items listed. You don’t want to waste everyone’s time by reading your summaries to them! You want to leverage that time for input.
5. Moderate the Discussion
7. Identify Follow-Up Expectations
If this is your meeting, it’s your job to “run” or moderate it. That means staying quiet most of the time and acting as a guide to keep everyone on course (topic-wise) and moving forward (productivity-wise) within the time allotted. Think of it as a referee or facilitator role. You want to marshal these valuable resources (people and their ideas) toward an effective end. If you, as the leader, participate too much, you’ll run the risk of commandeering the meeting, which is not an effective use of team members’ time.
The final point of any effective meeting is identifying and stating the next point of follow-up, if there is one. Place parameters around the work so people have relatively shortterm goals for producing a result. Make the follow-up period reasonable within the context of the work to be performed, but make it date-certain.
6. Confirm Decisions and Action Items It’s the moderator’s responsibility to confirm, out loud with everyone in attendance, the decisions made, the action items determined (if any), and the people assigned to those action items. This can be reduced to a follow-up email and placed on a future agenda for updates. This is a huge point of failure for many meetings—the failure to articulate decisions, action items and attendant responsibilities. Ironically, it is generally the stated reason for meetings! Fix this hole by stating things clearly before everyone disperses.
THE PATH TO MEETING PRODUCTIVITY Group leaders and managers are charged with using their own time effectively, as well as leveraging their team’s time. Meetings are a perfect opportunity to do both! Make a checklist in Microsoft Word or Evernote so you have this meeting checklist available whenever a meeting is approaching. n Paul Burton is a recovering corporate finance attorney who helps people regain command of their day. As a nationally recognized time management expert, Paul regularly speaks to audiences about getting more done and enjoying greater personal and professional satisfaction. He is the author of five books on productivity. Learn more at quietspacing.com and follow him @ QuietSpacing. Previously published in Attorney at Work.
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Attorney Journal Orange County | Volume 130, 2017 9
Making Clients’ Lives Easier by Sally J. Schmidt
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awyers have a lot of questions about how to develop new business. Once they start working with a client, however, the question often becomes, “How can I expand the business?” The simple fact is that clients want to work with lawyers who “get” them—lawyers who understand how, as a client, I like things done, who take the time to learn my business and my situation, and who respect my guidelines and deadlines. If you can work in a way that makes a client’s life easier, you will get more work. Period. So how do you do that?
Be Responsive and Accessible • Meet in their offices and on their schedule, instead of yours. • Sync with their technology. • Acknowledge emails immediately, even if jut to say, “I’ll get back to you later.” • Return phone calls in the same half-day. • Update your outgoing voicemail message daily so you manage clients’ expectations about your availability. • Similarly, use your email out-of-office message when you’ll be gone for a good chunk of time.
10 Attorney Journal Orange County | Volume 130, 2017
• Discuss service protocols with your staff—should they transfer calls to your cellphone when you’re out of the office, for example? • Make sure everyone on the team knows what everyone else is doing so questions about projects can be answered in your absence. • Prepare a list of the team members or an organization chart so it’s easy for clients to contact your people. • Contact clients whenever there are changes, like budget overruns or developments in a matter. Everyone hates surprises.
Take Time to Understand Clients • Understand the business context for the legal decisions that will be made. • Ask how, and how often, clients would like status reports from you and be diligent about using them. • Clarify the kind of work product they are seeking. Is it a 20-page document with legal citations or a two-page summary memo? • Determine their deadlines and meet them. If you miss a deadline, the client misses a deadline, too.
• Ask about the timing and level of detail they want in their invoices. A business owner may prefer to see “for services rendered” rather than a detailed description of his discussion with you about selling his business, particularly if the invoice goes to his accounts payable department. • Follow clients’ instructions and guidelines. Be sure everyone on the team complies, too, to avoid billing non-approved items, using language that sets off red flags or billing to the wrong projects. • Find out about their internal schedules, such as regular inhouse counsel staff meetings or board meetings, where they may have to provide updates on legal matters—then proactively provide information. • Determine how clients prefer to receive information. For example, some people love Excel and others hate it. • Use their jargon and terminology. If they call their staff members “team members,” so should you. • Figure out how they like to be contacted: phone, email, text? • Find out clients’ work schedules. Do they work 24/7 or disconnect when they leave the office? • Ask what role they want to play in the matter, and how they want their own staff involved.
Continuously Improve Relationships • Conduct postmortem conversations to learn if you met clients’ expectations and what you can do better in the future. • Provide information on key trends and developments that might affect them or their businesses. • Look for ways to save them time and money. Put together templates, checklists or protocols that will make things go more efficiently or more smoothly on both ends. • Prepare a client-specific annual report that outlines what the firm has done for the client each year, both on and off the clock. • Conduct an annual relationship meeting to discuss ways to improve the relationship. While lawyers often focus on the subject-matter expertise they are providing to clients, clients often focus on the way that expertise is being delivered. If you can determine ways to make it easier to work with you, you will create loyal and lasting clients. n Sally J. Schmidt is President of Schmidt Marketing, Inc., which offers marketing services to law firms. Sally was a founder and the first President of the Legal Marketing Association. She is a Fellow of the College of Law Practice Management and was one of the first inductees into the LMA’s Hall of Fame. She is the author of “Marketing the Law Firm: Business Development Techniques” and “Business Development for Lawyers: Strategies for Getting and Keeping Clients.” Sally writes Attorney at Work’s “Play to Win” column. Follow her on Twitter @SallySchmidt. Previously published in Attorney at Work. Attorney Journal Orange County | Volume 130, 2017 11
COMMUNITY news n U.S. News & World Report and Best Lawyers have recognized Rutan & Tucker, LLP, as a 2017 “Best Law Firm.” Firms included in the list are recognized for professional excellence with persistently impressive ratings from clients and peers. Achieving a tiered ranking signals a unique combination of quality law practice and breadth of legal expertise. BILL MEEHAN Rutan was listed in “Tier 1” in Orange County for Commercial Litigation, Corporate Law, Litigation – Banking & Finance, Litigation – Intellectual Property, Litigation – Labor & Employment, and Litigation – Real Estate and Trusts & Estates Law. Other practices recognized in this issue are Corporate Compliance Law, Litigation in the areas of labor and tax as well as Real Estate and Water Law. The firm’s Construction Law and Labor Law—Management were also ranked. First published in 1983, Best Lawyers is based on an exhaustive annual peer-review survey. For the new U.S. edition, more than 50% of the lawyers listed in Best Lawyers cast more than 3.1 million votes on the legal abilities of other lawyers in the same and related specialties.
n Snell & Wilmer is pleased to announce that Orange County and Los Angeles partner Bill O’Hare has been selected for inclusion in the Orange County Business Journal inaugural edition of the OC500 List. At Snell & Wilmer, O’Hare’s practice is concentrated in BILL O’HARE commercial litigation, arbitration, and mediation including corporate, partnership and trust disputes, franchising, intellectual property and unfair competition litigation, and class action defense. He is the administrative partner of the firm’s Orange County office. O’Hare is a Fellow of the American College of Trial Lawyers and has been previously selected for inclusion in Southern California Super Lawyers – Business Litigation (2004-2016) and Top 50 in Orange County (2007-2016), The Best Lawyers in America, Bet-the-Company Litigation, Commercial Litigation, Intellectual Property Litigation (2005-2017), Trusts and Estate Litigation (2014-2017).
n Tinnelly Law Group, PC, is proud to announce the addition of attorney Kyle B. Roybal, Esq. to the firm. Mr. Roybal received his undergraduate education from California State Polytechnic University, San Luis Obispo, where he majored in Political Science, with a Pre-Law concentration. During his senior year, Mr. Roybal was the team captain of the Men’s Division One KYLE B. ROYBAL, ESQ. Tennis Team. He received his Juris Doctorate from Western State University, College of Law, in 2013 where he was a member of the Honors Moot Court Society and Managing Editor of the Law Review. During law school, Mr. Roybal successfully completed an externship with the Orange County District Attorneys’ Office—DNA Unit, where he clerked under Senior Deputy District Attorney Robert Mestman. Prior to joining the California HOA law firm, Mr. Roybal worked in a civil litigation firm where he obtained significant litigation and courtroom experience. He will work in the firm’s transactional and litigation departments where he will focus on interpretation of governing documents, contract review and negotiation.
n Umberg Zipser LLP is pleased to announce that co-founding partner Dean Zipser will receive the Franklin G. West Award from the Orange County Bar Association (OCBA) at the Judges’ Night & Annual Meeting on January 26, 2017. According to the OCBA: “The DEAN ZIPSER Franklin G. West Award is the OCBA’s highest honor, presented to outstanding attorneys and judges whose lifetime achievements have advanced justice and the law. This annual recognition was established in memory of Judge Franklin G. West, who epitomized the best of the legal profession as both an attorney and a judge.” “Everyone at Umberg Zipser is very proud of Dean,” said co-founding partner Thomas Umberg. “The award is well-deserved and a wonderful recognition of Dean’s lifelong service to the profession, the Bar, and the community.”
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12 Attorney Journal Orange County | Volume 130, 2017
COMMUNITY news n The 2016 Super Lawyers Business Edition features the most prominent attorneys in the country. This year, all five Berger Kahn shareholders are featured in this esteemed publication: Craig Simon, Sherman Spitz, Teresa Ponder, Stephan Cohn and David Ezra. Berger Kahn congratulates all of our shareholders for their continued success and recognition. n Traut Firm has been recognized as a 2017 “Best Law Firm” by U.S. News & World Report and Best Lawyers. Firms included have been recognized for excellence in professionalism, along with peer and client ratings. The firm earned a Tier 1 Ranking for Personal Injury Litigation-Plaintiffs, and a Tier 2 Ranking for Product Liability Litigation.
SHERMAN SPITZ
ERIC TRAUT
n Newmeyer & Dillion LLP is pleased to announce that managing partner Jeff Dennis was selected as one of the 500 most influential business people and opinion shapers in Orange County by the Orange County Business Journal (OCBJ). Located in the Newport Beach office, Dennis currently serves as the Firm’s Managing Partner and specializes JEFF DENNIS in a variety of litigation arenas, including construction, real estate and business litigation. He also handles insurance and higher education matters. Dennis currently serves on the Executive Leadership Team for the American Heart Association’s Orange County Heart Walk. Under Dennis’ leadership, the firm proudly supports the OC Heart Walk, with over 150 participants joining Team N&D in 2016. As such, he volunteered to serve in the Orange County District Attorney’s selective Trial Advocacy Partnership (TAP) program. He is the past president of the Occidental College Board of Governors and helped lead Occidental’s Alumni Association as its former Orange County Regional Chair.
Attorney Journal Orange County | Volume 130, 2017 13
REFERRAL & CO-COUNSEL RELATIONSHIPS
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“I recently co-counseled a serious Las Vegas injury case with Rick Harris and his law firm. Rick’s advocacy and skills are extraordinary, and were instrumental in resolving and maximizing our client’s sizable recovery.” ~ Carl Wolf, Esq., Callaway & Wolf Northern California Super Lawyers San Francisco, California
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INNOVATION, INSPIRATION & COLLABORATION RJS LAW Partners with USD to Form the USD School of Law-RJS LAW Tax Controversy Institute to Educate and Empower Tax Professionals While Strengthening Tax Communities Throughout Southern California by Jennifer Hadley
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hen Ronson, “Ronnie” Shamoun launched RJS LAW in 2003, he had two primary objectives. He was first determined to make a difference in the lives of individuals desperate to solve their tax problems. But he was equally driven to making a lasting, positive difference in his hometown community. Specializing in all areas of civil tax controversy as well as criminal tax defense, Shamoun says, “Our mission at RJS LAW has always been to act as steadfast advocates on behalf of our clients, treating them with compassion while solving their tax problems and achieving the best possible results.” To that end, Shamoun knew that the key to being able to change lives would consist of building a team of the most highly educated tax attorneys in the Southland.
KNOWLEDGE IS POWER A native San Diegan, Shamoun attended the University of San Diego for his undergraduate degree in Accountancy, before attending the University of San Diego School of Law for his J.D., and staying on to earn his Master of Laws in Taxation (LL.M.). “My dad encouraged me to get my LL.M. because it showed my commitment to expertise in my field, and I agreed. I didn’t want to be just a tax attorney, I wanted to be a tax expert,” Shamoun recalls. “It turned out to be an invaluable investment, and I can honestly say, that the University of San Diego provided me a top-notch education and made me the attorney I am today.” As it turned out, that education was not only exceptional, but necessary in order to be able to give his all to those that are facing uphill battles against the power wielded by local, state and federal agencies. “The government agencies are aggressive. They 16 Attorney Journal Orange County | Volume 130, 2017
will levy money you have in your accounts, levy your accounts receivable, and can seize assets,” Shamoun says. “The people who come to us are in trouble, but they aren’t hardened criminals. They have experienced some event— divorce, a lawsuit, or a loss of income which caused them to get behind with their taxes. They pay their rent, utilities, and employee wages, but have fallen behind on sales taxes or payroll taxes, for example,” he explains. Irrespective of their unique circumstances, they desperately need solutions. That’s precisely where the team of highly specialized tax attorneys at RJS LAW comes in. “We solve tax problems with both the state and the IRS, including civil and criminal cases. We are here to protect our clients. We get them compliant and help them save their businesses. It’s incredibly rewarding to prevent someone from losing their business and help them rebuild their lives,” he says. Beginning his career as a solo practitioner, Shamoun, who was already an established entrepreneur, had his finger on the pulse of his local community from day one. “I worked evenings and weekends at my convenience store and Subway in Ocean Beach, trying to spread the word about my new law firm to my friends and neighbors who came in. I built relationships with them and little by little, they began coming to me with their tax problems. They knew they could trust me because they’d see me the next day when they came in to get their coffee or sandwich,” he says. The more members of his local community he was able to help, the more referrals began to pour in, and Shamoun began adding like-minded attorneys—all of whom also had an LL.M. or were in the process of pursuing the advanced degree. RJS LAW grew as a result of the extensive knowledge of its individual attorneys,
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other accolades, Shamoun remained ever true to his desire to not only provide the best tax advocacy in Southern California, but to also do everything within his power to better the community which supported him. In 2017, he intends to do more of the same, through continuing to educate others, so as to be able to help even more members of his community.
EMPOWERING OTHERS THROUGH EDUCATION “I had many mentors in the legal community, including Richard Carpenter, who helped me when I was starting out. In addition, Dean Stephen Ferruolo and Howard Abrams of the University of San Diego School of Law have continuously believed in me and all my aspirations, including becoming a professor,” Shamoun says. “One of my greatest passions and dreams in life was to become a professor, more specifically a professor at USD School of Law. I love to teach and share my practical knowledge and insights with students. I wanted to become a mentor and offer my support to students, as a resource for them to use throughout their careers, as my previous mentors have been for me,” he explains. In 2015, that dream became a reality, and Shamoun took his expertise in tax law, along with his passion for educating others, to students at USD School of Law, where his Tax Practice and Penalties class is now a required course to obtain a Master of Laws in Taxation Degree.
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who shared Shamoun’s dedication to treating every single client as family. Also, Shamoun credits Lisa Nelson, RJS LAW’s first full-time attorney, and Chandara Diep, his first full-time Paralegal, in leading the growth of RJS LAW from one to five attorneys in four years. Furthermore, Shamoun acknowledges that the growth of his firm would not be possible without the continued support of his parents, Sabri and Mary Shamoun, and his wife, Melanie Shamoun. “We treat our clients with compassion, advocating for them and caring about each one as if they were a part of our family,” he says. “We give each client personal attention, promising a 24-hour turnaround time on all phone calls and emails. We create genuine relationships with our clients, making them friends for life. Our strategy of putting compassion at the center of everything we do has proven to be innovative. Our clients come to us scared, looking for someone they can trust and turn to in their time of need.” Suffice it to say, over the years, Shamoun and his team have been honored to serve as trusted advocates for countless Southern Californians, representing them before the IRS, the California Franchise Tax Board, the California Employment Development Department, and the California State Board of Equalization. The firm has also defended clients against criminal prosecutions by the federal government and the State of California. Yet even as Shamoun’s star continued to rise, and RJS LAW began amassing award after award, including being voted San Diego’s Best Tax Law Firm repeatedly, along with dozens of
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In addition, Shamoun has chosen to honor those who guided and educated him through serving in multiple roles for his beloved alma mater. For example, RJS LAW grants a $5,000 annual scholarship awarded to a law student pursuing their LL.M, each year. The firm also hosts their annual BIG GIVE event, which raises money for USD School of Law, with funds allocated toward helping law students with various scholarships. Moreover, Shamoun serves on the Board of Visitors for USD, which is an advisory and support group that is dedicated to the School of Law’s advancement as a leading center of legal education and scholarship. Members of the Board of Visitors provide counsel and feedback to the dean on a range of issues related to the priorities and needs of the School of Law. Shamoun is also a member of the USD School of Law Comprehensive Campaign Committee, which was launched in February 2016 as a University-wide $300 million-dollar comprehensive campaign focusing on fundraising in five critical areas: capital projects, scholarships, program and faculty support, and the endowment. Most recently, in December 2016, Shamoun was afforded the opportunity to further give back to not only his alma mater, but to the entire southern California legal community through the creation of the University of San Diego School of Law – RJS LAW Tax Controversy Institute held at the Joan Kroc Institute for Peace and Justice. “I am so grateful to Howard Abrams, and Dean Stephen
Ferruolo for believing in me, and partnering with me to create the University of San Diego School of Law-RJS LAW Tax Controversy Institute. The goal was to create the premier tax controversy event in San Diego, bringing together the region’s top tax attorneys, CPAs, EAs and Law and Business School professors to discuss topics including federal and state audit strategies, tax penalties, and criminal tax matters,” Shamoun says. Continuing he says, “We wanted to share our knowledge and love of tax law with the entire Southern California community of tax professionals. The Institute was a way of bringing the entire tax community together, regardless of whether they are CPAs, EAs, tax preparers or attorneys, not only to learn from one another but to network.” To that end, the first event, held on December 2, 2016, was more than worth the effort put forth to create the program. “We had dozens of prominent panelists, and the event was a tremendous success. It means so much to me to be able to help support and promote the school that had given me such a strong foundation,” he says. Incidentally, “100% of the proceeds go directly back to the school,” he adds. The next year’s annual event is scheduled for the summer of 2017, according to Shamoun, and will boast equally prominent panelists and experts, with the same goal in mind of bringing together all tax professionals, as a wholly inclusive, rather than exclusive tax event. “It is an incredible honor to be able to partner with USD on this Institute, and I’m humbled by being allowed
Attorney Journal Orange County | Volume 130, 2017 19
Ronson J. Shamoun with the RJS LAW team. He credits much of the firm’s success and growth to the team he has assembled. to play a role in bringing together the tax community in this way, to collaborate and innovate, on ways to help our fellow community members successfully navigate and get through tax controversy.”
STRENGTHENING COMMUNITIES THROUGH SERVICE There is no doubt in Shamoun’s mind that his firm’s success is directly tied to his dedication to improve his community in any way possible. “We donate thousands of pro bono hours each year. The people we help in a pro bono capacity have become some of our biggest fans and best referral sources. They are in the community advocating our services for the rest of their lives,” Shamoun says. Beyond that, attorneys at RJS LAW donate countless hours of their time and resources to charities and nonprofits close to their hearts. Organizations and associations which are supported by Shamoun include Grossmont Hospital Foundation, the Knights of Columbus, the Saint Peter Chaldean Seminary Program, the Challenged Athletes Foundation, the National Academy of Television Arts and Sciences, and the United Services Organization, amongst others. His team of equally civic-minded colleagues contribute their 20 Attorney Journal Orange County | Volume 130, 2017
time and resources to organizations both inside and outside of the legal community including Young Tax Lawyers, Habitat for Humanity, the National Alliance on Mental Illness, Big Brothers Big Sisters, Kiwanis, and Lawyers Club of San Diego. Many of the attorneys at the firm are also professors at local universities. One of the most unique ways that Shamoun has recently found to help organizations including the Girl Scouts of San Diego, The United Way, and the American Diabetes Association has come through a billboard sponsorship campaign. “We purchase billboard space to donate to these incredible organizations,” says Shamoun. “We are firm believers that we should give back to the community that supports us.” As such, he says, “We never turn down someone who needs our help. When they come to us for help, we are there. Our job is to lend a helping hand no matter what,” he says. “When you do good for others, whether it’s by taking on a pro bono case, offering a free consultation, helping to create an educational tax event, teaching the future tax professionals of tomorrow, good comes back to you.” Good things have certainly come to pass for RJS LAW over the last decade. In 2016 alone, Shamoun was named to the San Diego Business Journal’s San Diego 500 Influential Business Leaders list, and voted San Diego’s Best Tax Law Firm in the Union Tribune’s Readers Poll. RJS LAW was also recognized as a San Diego MostRecommended law firm in tax law by Our City San Diego, and
Contact Ronson J. Shamoun RJS LAW-A Tax Law Firm San Diego | 303 A Street, Suite 400, San Diego, CA 92101 Beverly Hills | 8484 Wilshire Blvd., Suite 210, Beverly Hills, CA 90211 Irvine | 2 Park Plaza, Suite 1258, Irvine, CA 92614 P: (619) 595-1655 rshamoun@irssolution.com RJSLawFirm.com
The Ronson J. Shamoun Building in San Diego, CA, RJS LAW – A Tax Law Firm’s Headquarters
© Bauman Photographers
EXPERIENCE
included in the San Diego Business Journal’s 2016 Best of the Bar list. Indeed, over the years, the awards and accolades for Shamoun’s excellency in advocacy have earned him incredible distinction, including becoming a frequent legal commentator for various media outlets including Fox 5 News, ABC Channel 10 News, KUSI News, and NBC 7 News. He is also an expert contributor to the San Diego Union Tribune, the San Diego Business Journal, and Law360. With offices in San Diego, Irvine, and Beverly Hills, Shamoun’s team continues to grow, all the while remaining dedicated to their core values of excellence, compassion, personal service, hard work, and empowering others through education. “You have to produce great results for your clients by caring about their matter and working hard. I stress to my students at USD the importance of getting involved whenever they can and however they can in their community. There is no doubt that RJS LAW owes its success to support we received, which we do our best to pay forward through our efforts in the community, including educating others, philanthropy, and hard work,” he says. n
» EDUCATION • Law School: University of San Diego School of Law • Other Graduate School: Masters of Law in Taxation • College: University of San Diego, Bachelor’s in Accounting
» AWARDS • Most Recommended Law Firms – Our City San Diego Magazine, 2016 • Top 10 Best Accounting Firms in San Diego, CA – AdvisoryHQ News, 2016 • Voted San Diego’s BEST Tax Law Firm – Union Tribune Reader’s Poll, 2014-2016 • Martindale Hubbell AV Preeminent: Highest Excellence in Legal Ability and Ethical Practice, 2013-2016 • Real Estate Tax Law – San Diego Magazine, 2016 • Best of the Bar – San Diego Business Journal, 2014 & 2016 • Most Admired CEO Finalist – San Diego Business Journal, 2015-2016 • Top Tax Lawyer – San Diego Magazine, 2015 • Top Tax Attorney – San Diego Daily Transcript, 2013-2015 • 40 Under 40 – San Diego Metro Magazine, 2015 • Best of the Bar – San Diego Business Journal, 2015 • Top Lawyer – San Diego Magazine, 2013-2015 • Client’s Choice in Tax, Business, Trusts, and Real Estate – Avvo.com, 2014 • Torch Award Finalist – Better Business Bureau of San Diego, Imperial, and Orange Counties, 2014 • Most Admired Companies – San Diego Metro Magazine, 2014 • Best Attorney – San Diego Metro Magazine, 2014, 2016 • Mover to Watch – San Diego Metro Magazine, 2014 • Family Owned Business Finalist – San Diego Business Journal, 2014 • State of California Senate Certificate of Recognition – RJS LAW, 20132014 • California Legislature Assembly Certificate of Recognition – RJS LAW, 2013-2014 • San Diego Regional Chamber of Commerce Certificate of Merit – RJS LAW, 2014 • City of San Diego Certification of Recognition – RJS LAW, 2014 • San Diego Regional Chamber of Commerce Certificate of Merit – RJS LAW, 2014 • San Diego East County Chamber of Commerce Business of the Year – RJS LAW, 2013 • San Diego Regional Chamber of Commerce Certificate of Merit – RJS LAW, 2014 • Top Young Influential – San Diego Daily Transcript, 2013 • Top Lawyers in America – American Lawyer Media, 2013 • Certificate of Special Congressional Recognition – RJS LAW, 2013 • San Diego County Board of Supervisors Certificate of Recognition – RJS LAW, 2013 • Top Young Attorney – San Diego Daily Transcript, 2009-2010 • San Diego 500 Influential Business Leaders – San Diego Business Journal 2016
W
hether you practice solo with a small staff, at a midsize law firm or in BigLaw, you can always find ways to improve your firm’s culture. It’s true that law firms have a unique culture, regardless of size. One reason is that the billable hour limits and even stifles collaboration. (Collaboration? It’s not something lawyers are taught to think about.) But the hierarchies and structures built into the law firm model can be managed in a way that creates a positive work environment and organizational culture. The benefits are both financial and psychological: lower turnover rates, increased productivity, an easier time recruiting new team members, increased morale and motivation, greater involvement, lower absenteeism and even lower insurance rates. How can you ensure that your law firm (or legal department) builds or maintains a great culture? Here are five steps and resources.
1. Find the Root Cause of the Problem Resource: “Five Dysfunctions of a Team” by Patrick Lencioni. You don’t necessarily have to have a problem to think about how to improve your law firm’s culture—or ensure that it endures as the firm grows. A firm can lose its way as it expands, so thinking about how to maintain a great culture is a smart, proactive move. Here are some questions to ask yourselves to maintain a great culture: • What makes our culture great? Is it transparency, the people, the communication? • How can we maintain this every time we add a new lawyer to our team? How can we structure our interview process to ensure a great cultural fit? On the other hand, if you’ve noticed a decline in morale, you can take steps to rectify this as quickly and painlessly as possible. “Five Dysfunctions of a Team” does a great job of presenting a team that has its own dysfunctions in a way that’s easy to relate to. It shows how one relentlessly negative person can 22 22 Attorney Journal Orange County | Volume 130, 2017
5
Ways to Improve Your Law Firm’s Culture by Mary Redzic
bring down the whole team. It forces you to think about your own team, to identify whether it’s the lack of transparency and communication or the fear of confrontation that’s causing problems, and then suggests ways to troubleshoot. Goal: Use the book to help identify the root cause of your problem, and do some experiments of your own. Listen closely the next time your team meets to see if you can pinpoint the problem. Use the lessons from the book to address it.
2. Lead by Example Resource: “12: The Elements of Great Managing” by James K. Harter and Rodd Wagner. Leaders are often the No. 1 reason employees leave, and the No. 1 trait of a great leader is selfawareness. If you know how you act around others, how you treat others, how you praise or, unfortunately, degrade others, then you also know how you can improve your leadership and communication skills to ensure your best people stick around. This is not to say that it’s all on you, but how you act can definitely impact how the rest of the team acts. If you don’t praise your team members, if you don’t care about their performance or needs, it will create a toxic environment that quickly spreads through the organization. Whether you’re a partner, paralegal, associate or office manager, “12: The Elements of Great Managing” is a great resource. It covers the intricacies of Gallup’s Q12 survey on employee engagement. Goal: Take the Gallup survey with your team, identify the issues, and then take steps to nip them in the bud.
3. Don’t Rely on HR or the Office Manager Resource: “How to Win Friends and Influence People” by Dale Carnegie. While it’s easy to defer to human resources or an office manager, their efforts to improve your culture will fail if the whole team does not embrace them. Staff can develop all sorts of programs, experiments or trial runs—but if you don’t actively step up as a leader and embrace the changes, or speak up when their approach isn’t working, all their work will go to
waste. And they may actually make the culture worse. Before your firm attempts a new program or makes a change, be sure you know what your culture should be like (see No. 1). What makes your culture great? What’s most important to you and your team? Is it a safe environment, with fluid transparency and a shared belief in speaking up regardless of the consequences? If not, attempts by HR or an office manager to create an “open space” office plan, or conduct a culture survey, or have annual “360-degree” reviews may be useless because they do not coincide with your goals. Done thoughtfully, regularly and in sync with your existing culture, 360-reviews can be great. However, if your team is small or scared to speak up, any 360-review will be useless because it won’t shed light on the problem itself. Similarly, if trust is an issue, an open floor plan will create more problems. People who don’t communicate well to begin with might reject being in an open environment with the people they are trying to avoid. “How to Win Friends and Influence People” has been a best-seller for decades for a reason. It shows how every person in an organization can improve their communication skills, regardless of title or position. Goal: Make it everyone’s job to ensure they contribute to a positive environment and communicate well.
4. Increase Collaboration Resource: “StrengthsFinder 2.0” by Tom Rath. You may have a rock star team or practice in a highly hierarchical or structured law firm, but there are always ways to improve communication and collaboration. One of the most interesting methods is by rigorously outlining the strengths of your team. “StrengthsFinder 2.0” explains that focusing on people’s strengths, rather than their weaknesses, promotes a healthier discussion of what’s working and what isn’t. The theory is that you can only improve on your weaknesses so much; in the long run, they will not impact your communication or productivity. However, if you focus on your strengths, you can learn to use them to your advantage and overcome your weaknesses. If you’re competitive, for example, but you’re not a great communicator, you can have a competition with a friend or co-worker to take one step per week to improve your communication, so at the end of the month, you will have the “win” you crave. Goal: Have your team take the “StrengthsFinder 2.0” quiz, share their top five strengths, and discuss how they can collaborate by using one another’s strengths. If one team member is an “achiever” and another is “futuristic,” they can collaborate by harnessing their complementary skill sets. For example, the futuristic person can present any idea by focusing on its impact on the future of the case or firm, while the achiever can talk about the tasks that must be completed to achieve the goal.
5. Don’t Let Your Size or Geography Be an Excuse Resource: “Remote: Office Not Required” by David Heinemeier Hansson and Jason Fried. We live in a digital world where technology makes working from … well … anywhere possible. While this mobilization has its benefits, it can make team collaboration more difficult. Likewise, in larger firms especially, closed office doors are not uncommon and there, too, collaboration is hindered. Regardless of the obstacle, there are ways to overcome and create a great collaborative culture. “Remote” (a collection of essays from the people behind Basecamp) has some insights into working remotely— particularly for making remote team members feel like they’re still involved through the use of technology. Goal: Investigate the tactics and tools described in “Remote,” such as group conference calls, screen-sharing and, for law firms specifically, case management systems with team calendars and activity trackers.
Don’t Forget the Happy Factor Bonus Resource: “Delivering Happiness” by Tony Hsieh. If you’re in a midsize or large law firm, read up on Google’s strategies for building a great team. For example, creating smaller teams within a large organization can improve communication and collaboration. Zappos is another company with a great culture, known for experimenting with different strategies for improvement. In “Delivering Happiness,” CEO Tony Hsieh describes how making sure that every customer is happy with their services is a common team goal and shared internal priority. Every team member goes through the same training process regardless of title or position. Whether you have 10 people or 10,000, there are tried-andtrue methods for ensuring transparency, collaboration and trust, to build a winning team. To name a few: Create smaller teams, experiment with onboarding strategies by having associates work with different partners each week, create a mentorship system, hold weekly meetings to collaborate on cases, sacrifice one billable hour per week to come up with unique solutions. Ultimately, focus on learning what works best for your team. The benefits will outlast the sacrifices. n Mary Redzic is a Product Marketing Manager at MerusCase, a law practice management solution. She is a former solo practitioner and in-house lawyer who turned her obsession with legal technology into her career. She is always looking for new and innovative ways to make lawyers more efficient and effective, and loves legal tech so much she blogs about it at disrupt.legal. Follow her @maryredzic. Previously published in Attorney at Work.
Attorney Journal Orange County | Volume 130, 2017 23
Handling Conflicts With Your Colleagues by Shawn Healey
W
orkplace conflicts among colleagues are not only common, they are necessary. Despite most people’s desire to avoid or minimize them, conflicts are normal. In fact, conflicts are not even a bad thing. Most of them are positive; we just tend to remember the ones with negative outcomes. Simply put, conflicts are differences in perspectives, opinions, viewpoints or values. When viewed through a more neutral lens, conflicts have the potential to be positive agents for change. So how do you make a shift from experiencing a conflict as destructive to experiencing it as a positive agent for change? In short, you learn the various levels of conflict and how to navigate them effectively.
Start by Striving to Understand At the heart of every conflict, both parties want to be understood. The thinking process goes something like this: “I’m a reasonable person. If I can just get the other person to understand what I’m saying and where I’m coming from, they will agree with me, and the conflict will be gone.” Then you try your hardest to convince the other person of your perspective. The problem is, both parties have this same desire and both want to be understood first. The result is an impasse, which 24 Attorney Journal Orange County | Volume 130, 2017
usually feels negative since there is no helpful resolution. Since you cannot control what others do, it is best to focus on what you have control over, namely yourself. Be the first person to listen. Ask clarifying questions that will allow the person to express his thoughts and feelings. Acknowledge that you have heard what he has said and that you recognize how he feels about it. (That last point is very important.) Feelings are often overlooked If you simply repeat what someone has said, hoping she will feel understood, you will likely be met with a “yeah, but you still just don’t get it” reaction and get a repeat of the person’s original message. That repetition is a sign that the speaker does not feel her message (content and feeling) has been understood and acknowledged.
Most Conflicts Aren’t About What You Think They Are About The next step in navigating a conflict in a positive way is to recognize what the conflict is actually about. A helpful resource for breaking down conflicts is “Getting to Yes,” by Roger Fisher and William Ury. It’s a classic, easy-to-read book on the topic.
Conflicts are made up of different levels. Breaking conflicts into these levels can help focus your efforts and prevent you from getting stuck on the surface. The framework of “issues, positions and interests” is one way to break down a conflict. • The issue is the question. (Should the firm take this client?) • The positions are the answers that each party fives to that question (yes and no). • The interests are all of the reasons why each party has chosen their position. Interests are rarely discussed directly. Most conflicts get stuck at the positions level, and many assumptions are made about the other party’s interests. Positive outcomes from a conflict require a mutual understanding of each other’s interests, identification of shared interests, and collaborative decision-making. To be overly simplistic, remember these steps: • Think of conflict as a potentially helpful interaction. • Assume less. • Be the first to listen and reflect the other’s statements and feelings. • Communicate your interests. • Look for common interests.
Conflicts Do Not Have to Be Harmful When you seek to understand, you gain confidence in the interaction, learn more than you knew before, and develop stronger connections with others. Hopefully, you will also feel more comfortable with your colleague. You may still disagree, but at least you will foster understanding and respect for each other. n Shawn Healey is a licensed clinical psychologist with Massachusetts Lawyers Concerned for Lawyers, Inc. (LCL). Shawn frequently runs stress management groups for law firms and has provided numerous training sessions on time and stress management to bar associations, solo attorneys and law firms. A frequent writer on the topics of conflict resolution, anxiety management, resilience and work-life balance, he is a contributor to the LCL blog and tweets for @LCL_MassLawyers. Previously published in Attorney at Work.
Not Your Typical Civil Litigation Defense Firm
WE SPECIALIZE IN: • Insurance Defense and Coverage of All Kinds • Construction Defect Defense – Subcontractor Representation • Writs and Appeals
Law Offices of Adrienne D. Cohen 714.954.0790 adc@adcohen.com
1551 N. Tustin Avenue, Suite 750 Santa Ana, CA 92705 adcohen.com
1120 Nye Street, Suite 300 San Rafael, CA 94901
Attorney Journal Orange County | Volume 130, 2017 25
McIntyre’s Civil Alert Organized Succinct Summaries by Monty A. McIntyre, Esq.
Monty A. McIntyre has over 30 years of experience as a mediator and arbitrator. More than 35 years of experience as a civil trial lawyer representing both plaintiffs and defendants in business and commercial, bad faith, brain injury, construction, land use/CEQA, medical malpractice, personal injury, real property and wrongful death cases. To schedule a meeting with Monty A. McIntyre contact Kelsey Hannah at ADR Services, Inc. at 619-233-1323 or kelsey@adrservices.org
CALIFORNIA SUPREME COURT Real Property Horiike v. Coldwell Banker (2016) _ Cal.App.4th _, 2016 WL 6833005: The California Supreme Court affirmed the Court of Appeal’s decision that reversed the jury’s verdict for defendant at trial. An associate licensee owed to the buyer a duty under Civil Code section 2079.13(b) to learn and disclose all information materially affecting the value or desirability of the property, including the discrepancy between the square footage of the residence‘s living area as advertised and as reflected in publicly recorded documents. (November 21, 2016.)
Torts Kesner v, Superior Court (2016) _ Cal.App.4th _, 2016 WL 7010174: The California Supreme Court consolidated two cases that addressed the issue of whether employers or landowners owe a duty of care to prevent secondary exposure to asbestos. The Court reversed the judgment in Haver v. BNSF Railway Company and vacated the judgment in Kesner v. Superior Court and remanded both actions for further proceedings. The duty of employers and premises owners to exercise ordinary care in their use of asbestos includes preventing exposure to asbestos carried by the bodies and clothing of on-site workers. Where it is reasonably foreseeable that workers, their clothing, or personal effects will act as vectors carrying asbestos from the premises to household members, employers have a duty to take reasonable care to prevent this means of transmission. This duty also applies to premises owners who use asbestos on their property, subject to any exceptions and affirmative defenses generally applicable to premises owners, such as the rules of contractor liability. This duty extends only to members of a worker’s household. (December 1, 2016.)
CALIFORNIA COURTS OF APPEAL Arbitration Condon v. Daland Nissan (2016) _ Cal.App.4th _, 2016 WL 26 Attorney Journal Orange County | Volume 130, 2017
6553961: The Court of Appeal reversed the trial court’s order confirming an arbitration award of $180,175.34 for plaintiff and denying defendants’ motion to compel a new arbitration before a three-arbitrator panel as authorized by the arbitration agreement when the award against a party exceeded $100,000. The lack of “appellate rules” was no impediment to ADR Services, Inc. (ADR) providing a new arbitration. Defendants did not insist on a new arbitral forum and indicated they would be happy to have the new arbitration with ADR. Plaintiff’s motion to confirm the award should have been denied, and defendants’ request for an order requiring a new arbitration should have been granted, specifying arbitration before ADR. (C.A. 1st, filed November 4, 2016, published November 30, 2016.)
Attorneys Foxen v. Carpenter (2016) _ Cal.App.4th _, 2016 WL 7017964: The Court of Appeal affirmed the trial court’s order sustaining a demurrer on the basis of the statute of limitations in an action where plaintiff alleged numerous alleged wrongful acts by her attorneys who had represented her in a personal injury action. Most of the causes of action were barred by the one year statute of limitation in Code of Civil Procedure section 340.6. The causes of action for fraud and conversion were barred by the three year statute of limitations in Code of Civil Procedure section 338(c) because the complaint was filed more than three years after plaintiff first discovered the alleged wrongdoing. (C.A. 2nd, filed November 3, 2016, published December 1, 2016.)
Civil Code McNair v. City and County of San Francisco (2016) _ Cal.App.4th _, 2016 WL 6879277: The Court of Appeal affirmed the trial court’s summary judgment on an intentional infliction of emotional distress cause of action and its nonsuit on a breach of contract action in a case arising out of a letter written by a doctor to the Department of Motor Vehicles disclosing her patient’s confidential medical history and health conditions that resulted in his commercial driver’s license being temporarily revoked and the loss of his job as a bus driver. Both of plaintiff’s claims were barred by the litigation privilege in Civil Code section 47(b). (C.A. 1st, November 22, 2016.)
Civil Procedure (Anti-SLAPP, CCP 473) Gee v. Greyhound Lines (2016) _ Cal.App.4th _, 2016 WL 6835513: The Court of Appeal affirmed the trial court’s order granting a motion to set aside a dismissal under Code of Civil Procedure section 473(b). Section 473(b) can provide relief when an action is dismissed due to plaintiff’s counsel’s mistake or inexcusable neglect related to the failure to pay change of venue fees. Because this was plaintiff’s initial application for relief under section 473(b) and not a request to reconsider a denial of relief under that section, there was no requirement that she file a motion for reconsideration under Code of Civil Procedure section 1008. The Court of Appeal found there was sufficient evidence to justify the relief granted. (C.A. 3rd, November 21, 2016.)
Class Actions Driscoll v. Granite Rock (2016) _ Cal.App.4th _, 2016 WL 6994923: The Court of Appeal affirmed the trial court’s judgment for defendant, following a bench trial, in a class action alleging primarily that defendant failed to provide off-duty meal periods and/or failed to pay plaintiffs one additional hour of pay for dutyfree meal periods. Defendant affirmatively notified its employees that they were entitled to a 30-minute off-duty meal period free from its control through its policies, postings and communications. Defendant did nothing to interfere with drivers’ ability to take an off-duty meal period. Drivers did not take off-duty meal periods because they did not want them. There was substantial evidence presented at trial to support the trial court’s finding that defendant provided its concrete mixer drivers with an off-duty meal period as required by law. (C.A. 6th, November 30, 2016.)
Corporations Goles v. Sawhney (2016) _ Cal.App.4th _, 2016 WL 6875926: The Court of Appeal reversed the trial court’s order, under Corporations Code section 2000(c), specifying $139,666.67 as the buyout value of plaintiff’s 36.7% minority shareholder interest in Katana Software, Inc. After the three appraisers could not agree on a value and submitted three different valuations, the trial court erred in “confirming” the reports “in their entirety” and averaging the numbers in its valuation order. This is not allowed by section 2000. In addition, in valuing the interest the three appraisals improperly failed to consider the breach of fiduciary duty claim alleging “looting” of the corporation, and improperly discounted the minority interest for lack of control in violation of Corporations Code section 2000. (C.A. 2nd, November 22, 2016.)
Education Doe v. Regents of the University of California (2016) _ Cal.App.4th _, 2016 WL 6879293: The Court of Appeal reversed the trial court’s judgment requiring defendant to set aside its findings and suspension sanctions issued against a male UCSD student after he was found to have violated the Student Conduct Code as a result of a sexual encounter with a female student. The Court of Appeal
found that substantial evidence supported defendant’s decision and findings, the process was fair, and the sanctions were not an abuse of discretion. (C.A. 4th, November 22, 2016.)
Elections Eblovi v. Blair (2016) _ Cal.App.4th _, 2016 WL 7011551: The Court of Appeal affirmed the trial court’s order denying a writ petition seeking to compel the city clerk to strike both the “Primary Argument Against Measure F” and the “Rebuttal to Argument in Favor of Measure F” because they were not filed by the city council. Petitioner argued that, under Elections Code section 9282(a), only the city council could file an opposition statement against the measure. The trial court correctly ruled that the law in this area should be interpreted liberally, not restrictively, because it deals with constitutionally protected freedom of speech and the right to a fair election. (C.A. 1st, December 1, 2016.)
Evidence LAOSD Absestos Cases (2016) _ Cal.App.4th _, 2016 WL 6875924: In a case alleging damages from asbestos exposure, the Court of Appeal affirmed the jury verdict for defendant. The jury found that defendant‘s conduct exposed plaintiff to asbestos, but that defendant was not negligent. The trial court did not err by (1) excluding two exhibits containing Southern California Gas Company specifications for contractors, (2) allowing the president of defendant to use a contract from a later time period to refresh his recollection about the content of earlier contracts, and (3) giving the jury two instructions: one about employer duties, and another stating that defendant was required to adhere to a “professional” standard of care. (C.A. 2nd, November 22, 2016.)
Government City of Palo Alto v. Public Employment Relations Board (2016) _ Cal. App.4th _, 2016 WL 6902091: The Court of Appeal granted a writ of extraordinary relief under Government Code section 3509.5. The Court of Appeal affirmed the Public Employment Relations Board’s (PERB) conclusion that the International Association of Firefighters, Local 1319, AFL-CIO had sufficiently requested to meet and consult with the City of Palo Alto (City) regarding the vote of its City Council to place on the ballot a measure to repeal a City charter provision requiring that impasses in negotiations regarding wages, hours, and other terms and conditions of employment for the City’s police and firefighters be submitted to binding interest arbitration. The Court of Appeal also held that the constitutional issues raised by the City were meritless. However, the Court of Appeal ruled that the PERB’s order directing the City Council to rescind its resolution violated the doctrine of separation of powers by ordering a legislative body to take legislative action. The PERB’s decision was annulled and remanded back to the PERB with directions to strike that remedy. (C.A. 6th, November 23, 2016.) n
Attorney Journal Orange County | Volume 130, 2017 27
What’s Hot and What’s Not in the Legal Profession by Bob Denney Bob Denney is a recognized authority on strategy, management and leadership for law firms and companies. He serves as an outside Director on company boards and has also served as an interim CEO in turnaround and crisis situations. For further information visit our website at www.robertdenney.com. This article appeared in a recent edition of Of Counsel. It is reprinted with permission.
T
his is our 28th annual report on what’s going on in the legal profession. As in all previous reports, it is based on information my colleagues and I continually gather throughout the year from many sources—law firms, other providers of legal services, legal departments, surveys and the legal and general press. It is also the seventh report published shortly after a Presidential election and the fourth in which the election resulted in a change of party and, therefore, a change of administration. These changes always have some impact on the legal profession, mainly in practice areas, but we expect the Trump administration will have a greater impact on the profession than any of the last three changes of administration.
Practice Areas Note: There can be differences in geographic areas. RED HOT
• Cybersecurity continues to be the number one issue for
in-house counsel and is becoming so for consumers. Also see “Other Trends & Issues.”
• Health Care and almost every practice area involved. Of
course the Affordable Care Act (ACA) will have substantial changes or could even be repealed.
HOT
• Intellectual Property, particularly patent prosecution and trademark litigation.
• Immigration. Obviously. And it will get Red Hot. • Regulatory. While there will probably be fewer new
regulations or even cancellation of some existing ones, prosecution under corporate integrity agreements (CIAs) will continue and also under other compliance issues. The Davis-Bacon Act will at least be modified if not repealed.
• Energy. Oil, gas and electrical. Coal may warm up but
alternative energy will cool down. Also see environmental below.
• Technology. Of course.
28 Attorney Journal Orange County | Volume 130, 2017
• Environmental. The Trump Administration is expected to
pull back a number of the “Midnight Rules” the Obama Administration will promulgate before inauguration. In addition there may be far more friendly policies regarding the exploration and production of both coal and natural gas.
• Infrastructure. One of the reasons will be greater support for public-private partnerships.
• Financial Services, although IPOs have been Cool but they may get Hot next year.
• Real Estate & Construction. Commercial. Residential now heating up.
WARM
• Labor & Employment. Was Hot earlier this year and will heat up again regarding wage-and-hour issues and also if more states pass Right to Work laws.
MIXED READING
• Commercial Litigation. Pretty Hot in MidLaw firms but
still Cool in most BigLaw firms. Many clients don’t want to pursue the types of litigation they used to. Also companies are having their legal departments handle more and more cases.
• Corporate. As we reported in our Midyear Update,
depending on a firm’s client mix and also industry practice groups.
COLD
• Bankruptcy. Will remain so unless the economy stumbles.
Industry Groups Note: As with practice areas, there can be differences in some geographic areas. HOT
• Manufacturing & Distribution. 3D printing continues to grow.
• Food, Beverage & Agriculture. Have been Hot (and we missed listing them previously).
• Cannabis. There is significant product liability risk to both
manufacturers and sellers as marijuana is infused into edible products.
COOL
• Renewable Energy Storage. It is still in the early stages
but the Department of Energy is currently funding the development of different approaches. This may get Hot.
Hottest Geographic Markets • New York. Firms which had previously branched into other markets are now opening offices in Manhattan for a variety of reasons: It has become a high-tech center; their clients are doing business in the city and “It looks good to be in New York.”
• Pittsburgh. As described by Steve Taylor in the Of Counsel
700 Annual Survey, “its economy is fueled by banking, health care, technology and education.” Not only are the two long-dominant firms growing but also other mid-sized firms. Recently firms from other parts of the country have opened offices there.
Marketing & Business Development • Gamification is being employed by a growing number of firms to motivate lawyers to become better rainmakers.
• Predictive Analysis, which has been used for years to
determine what a jury will decide, is now being used by some firms to identify client and industry needs.
• “Hunting in packs.” The term is now being used to get
lawyers in different practices and geographic areas to work together to obtain new clients.
• Client Feedback is much talked about but in many firms is still honored more in the breech than in the observance.
• Professional Business Developers, i.e. “sales executives.”
They have been a staple in accounting firms for many years. Now some law firms are employing them and believe they are, or will be, productive.
• “Evergreen Content.” This is material which has no time
limit and, therefore, can be used currently or retained for later on. Susan Kostal encourages developing it for all forms of writing and social media. Makes sense.
• Social Media. Continues to be far more effective for
building individual lawyer reputations than for firms.
• ROI is becoming even more important for measuring the
results of marketing & business development activities. The challenge is what criteria to use.
• Marketing/Business Development consultants. There are more than ever!
Other Trends & Issues • Increase in number of lawyers. The Of Counsel 700
Survey reports a 3.7% increase this year. In view of the over-capacity that has been growing in the profession the past few years and the decreasing number of law school graduates being hired, this is a huge surprise and, at first glance, doesn’t make sense. However, Of Counsel went on to say this blip is due to timing and that the overall trend continues to be downward.
• Lateral hiring continues to be hot. While there are other
reasons, the principal one is to increase revenues and, hopefully, profits. However, some statistics indicate that only about half of the lateral partner hirings achieve these objectives. One of the reasons is that . . .
• Lateral integration all too often is not adequately
implemented. Some firms such as Benesch are using client teams and cross-office meetings to improve and accelerate integration into the firm.
• Project Management. Firms are continuing to invest in this to meet client demands.
• Artificial Intelligence. Just being explored by a few firms. Will be the focus of next year’s College of Law Practice Management Futures Conference.
• Competition. It’s no longer just from other law firms. It’s
now coming from two other directions: Non-legal business entities like LegalZoom and, for large firms, more and more from the clients themselves who are using their legal departments as well as alternate service providers
• Blockchain. The technology behind bitcoin. It is a shared
digital ledger in which items or transaction are added at the end of the chain and encryption ensures that it remains unbroken, tamper-proof and error-free. Currently being adopted by banks. Advocates say it has the potential to “change the world” as the internet has done.
• Fewer equity partners. In October The Wall Street Journal
reported that the average number of equity partner billable hours in AmLaw 200 firms had dropped to 1,589. The resulting impact on profits is the principal reason most of these firms are planning to reduce the number of equity partners next year, either by de-equitizing them or asking them to leave.
• Higher partner contributions. Due to slow growth and
declining productivity, some firms are requiring more contribution from their partners for operating capital rather than attempting to increase their bank loans.
• Alternate Fee Arrangements. While they may account for
more than half of the total legal spend, this is due mainly to large firms with clients that have a high amount of litigation and want to drive down the fees. Many clients want billing options but most firms still cling to the billable hour structure. Therefore, despite continued predictions . . .
• The Billable Hour is not dead—and won’t be.
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• Cybersecurity. While many firms have developed plans for
reacting to a cyberattack, many more have still not developed or implemented cybersecurity plans to prevent such attacks. One overlooked factor is what actually constitute a “breach.” Some firms regard any unsanctioned access of a firm system as a breach while others do not regard it as a breach until something—data, files or money—has been taken.
• Law firms for churches. In September, Nelson Madden &
Black claimed they are the first private law firm in New York City to cater to religious institutions. But they’re not the only such firm in the U.S. The office of Raymond Dague in Syracuse does and, in Grapevine, Texas. The Church Law Group, a practice area of Anthony & Middlebrook, has built a substantial practice.
• Publicly traded law firms. Slater & Gordon in Australia, the first such firm in the world, is facing a securities class action suit. This leads back to the issue of . . .
• Alternate Business Structures (ABSs). This is the current
term for non-lawyer ownership or investment in law firms. Still prohibited in the U.S. except in a limited form in Washington D.C., they have been “legal” for 15 years in Australia and for nine years in the U.K. We first discussed this issue in an article I wrote in 2012 and then in our January 2013 Legal Communique. Opposition continues to be strong although the number of non-lawyer entities continues to increase and is providing more and more services.
• Employee Class Actions. Dormant and almost extinct in
recent years, they appear to be making a comeback since the death of Justice Scalia.
• Mergers. Soared to a record high in 2015 and may surpass
that number this year. For the acquiring firm, the objective is usually to increase revenues and, hopefully, profits. For the acquired firm, it’s usually to survive—in some form.
• Leadership. While effective Management is needed in all
firms regardless of size, this is not enough. To survive, firms also need Leadership to execute the vision, strategy and culture established by the leader. This subject is superbly discussed by Susan Duncan of RainMakingOasis in the blog headlined “Do Your Firm Leaders Lead or Manage?” posted recently on INFOCUS.
• Fewer private practice jobs for law school graduates.
According to the National Association of Law Placement’s 2015 survey, although the number of jobs in large firms increased, the overall employment total was the lowest since 1996. While the percentage of graduates who obtained jobs has increased slightly, this was the result of the steep drop in overall law school enrollment which continues. Not a good
30 Attorney Journal Orange County | Volume 130, 2017
picture for the future. But what can be done to improve it?
• Scamblogging. A category of online writing by debt-
burdened law school graduates who are convinced their law schools misled them about their opportunities for employment.
• Changing lawyer structure. Because many firms of all
sizes are being faced with overcapacity, there will be fewer equity partners, more non-equity partners and “permanent” associates as well as greater use of contract lawyers.
• Changing management structure. Some mid-size as well
as large firms are recognizing the need for more non-lawyer managers, not only in the technology and marketing areas but also as project management directors and chief operating officers. The term “legal engineers” is being used more widely to describe these positions.
• Student debt. A few firms such as Orrick, Herrington &
Sutclliffe, are beginning to offer new associates cash to help them pay their student loans until they qualify to receive a bonus.
• Litigation Funding, which has been little noticed until
recently, is increasing as start-ups like LexShares and Trial Funder attract investors with promises of double-digit returns.
• Women being elected partner. There are mixed reports on whether the number is increasing or not.
• Bar passage requirements. After being threatened by the
Department of Education with having its accreditation powers removed, the ABA has started the process to tighten up the bar passage requirements for accredited schools. One part of the proposed rule would mandate that at least 75% of a law school’s alumni pass the bar exam within two years of graduation. Currently the requirement is five years. There are several other factors involved which may or may not make this change effective. The House of Delegates must approve the measure and the earliest they can do that is in February at the Midyear Meeting. If approved, it could go into effect for 2017 graduates who sit for the July bar exam.
• First Trans-Atlantic Alliance. While many U.S. firms have
forged alliances with firms in Asia, Womble Carle has become the first to forge and alliance “across the pond,” in this case with U.K. firm Bond Dickinson. Will there be more?
This report could not have been developed without the participation of my colleagues whose comments, by agreements, are not attributed to them. I am most appreciative for their input. Each of us maintains our commitment to the legal profession but with concern on whether or not it will continue to adapt to change as it has always done in the past, albeit often slowly. n
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