ORANGE COUNTY
Volume 139, 2017 $6.95
Written Schedule of Services And Fees Multiplies Credibility, Increases Client Comfort
Trey Ryder
Seize Your Reader’s Attention And Erase Doubt from Your Marketing Copy
Tom Trush
7 Words to Learn Before You Apply for Your Next Loan
Networking: How to Disengage From a DeadEnd Conversation
Brooke Lively 5 Steps to Confront Burnout, Addiction and Depression
Link Christin
What’s New in Structured Settlements? A Lot!
Marjorie Ford Smith
Mike O’Horo California Case Summaries Civil™
Monty A. McIntyre
6 Ways to Make Clients Happy to Pay Your Bills
Merrilyn Astin Tarlton
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2017 EDITION—NO.139
TABLE OF CONTENTS
8
6 Networking: How to Disengage From a DeadEnd Conversation
by Mike O’Horo
8 Six Ways to Make Clients Happy to Pay Your Bills by Merrilyn Astin Tarlton
12 COMMUNITYnews EXECUTIVE PUBLISHER Brian Topor EDITOR Wendy Price CREATIVE SERVICES Skidmutro Creative Partners
14 What’s New in Structured Settlements? A Lot! by Marjorie Ford Smith
16
by Monty A. McIntyre
CONTRIBUTING EDITORIALISTS Trey Ryder Brooke Lively Link Christin Marjorie Ford Smith Mike O’Horo Monty A. McIntyre Merrilyn Astin Tarlton Tom Trush
OFFICE 30211 Avenida De Las Banderas Suite 200 Rancho Santa Margarita, CA 92688 www.AttorneyJournal.us ADDRESS CHANGES Address corrections can be made via fax, email or postal mail.
by Tom Trush
24 California Case Summaries Civil™
STAFF WRITERS Dan Baldwin Jennifer Hadley
SUBMIT AN ARTICLE Editorial@AttorneyJournal.us
by Dan Baldwin
22 Seize Your Reader’s Attention and Erase Doubt From Your Marketing Copy
PHOTOGRAPHY Chris Griffiths
ADVERTISING INQUIRIES Info@AttorneyJournal.us
LAW FIRM OF THE MONTH
16 Geraci Law Firm, Irvine Combining Human Relationships With Technology’s Advances
CIRCULATION Angela Watson
WEBMASTER Mariusz Opalka
26 Written Schedule of Services and Fees Multiplies Credibility, Increases Client Comfort
22
by Trey Ryder
28 Seven Words to Learn Before You Apply for Your Next Loan
by Brooke Lively
30 Five Steps to Confront Burnout, Addiction and Depression
by Link Christin
Editorial material appears in Attorney Journal as an informational service for readers. Article contents are the opinions of the authors and not necessarily those of Attorney Journal. Attorney Journal makes every effort to publish credible, responsible advertisements. Inclusion of product advertisements or announcements does not imply endorsement. Attorney Journal is a trademark of Sticky Media, LLC. Not affiliated with any other trade publication or association. Copyright 2017 by Sticky Media, LLC. All rights reserved. Contents may not be reproduced without written permission from Sticky Media, LLC. Printed in the USA
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Networking: How To Disengage From a Dead-End Conversation
by Mike O’Horo
W
e’ve all found ourselves trapped in a dead-end conversation at a networking event. Someone drones on about a topic in which you have no interest. Or, it’s simply someone you don’t like. Or, there’s nothing wrong with the topic or the person, but you can’t spend that much time with any one person. You need an escape that doesn’t require you to be rude. Before I give you some tricks to manage this situation, let’s first take a look at why this happens, and how you can avoid most of it. This problem is often the result of aimlessly talking with anyone and everyone about almost anything, because you have no clear purpose. Since you don’t know what you’re trying to accomplish, you’re neither screening conversation partners nor directing the conversation. You’re guaranteeing irrelevant or indulgent chatter. Randomness also causes you to go to the wrong events, populated by too few people of the type you want to meet. When you go to an event simply because it’s available, you’re taking the Fogameer Approach, i.e., speaking with anyone who can fog a mirror.
Don’t Network; Hunt
The solution? Change your approach from networking to hunting. My definitions of the terms are intentionally stark, perhaps even a bit harsh: Networking: You hang around any available event, with no purpose, chatting with as many people as you can, initiating “relationships,” thinking that coming home with a biz card from anyone with a pulse constitutes some type of success. Hunting: You know who you want to speak with, and more importantly, who you don’t. You have a specific profile of who would need someone with your skills, and the conditions that trigger demand for those skills and expertise. You only attend events with a high likelihood of being populated with people who match that profile. You spend your time filtering the room, briefly exploring the problem you solve, testing for those who acknowledge having that problem, and disengaging from others as graciously as possible. When you arrive and pick up your badge, take a look at how it’s formatted. Where does the company name appear? Is
6 Attorney Journal Orange County | Volume 139, 2017
it easily read from 5-6 feet away? If so, you can scan badges to identify the wearer’s likely industry affiliation, and avoid those who are irrelevant. (In your profiling exercise, you’ll have deduced which industries have high concentrations of companies experiencing your demand-triggering problem.)
Your Escape Plan
Even so, you’ll still occasionally get trapped. When that happens, the way to escape graciously is to first test whether or not the person acknowledges that her company is experiencing, or faces, your demand-triggering problem. You (reading her badge): “Hello, Jane. Mike O’Horo (extending your hand). Nice to meet you.” Jane: “Jane Newman. Nice to meet you, too, Mike.” You (pointing to her badge): “Integrated Biometrics? I’m not familiar with your firm, but it sounds like you might be in the secure access business. How close am I?” Jane: “Good guess. We make biometric identification devices that secure sensitive areas for hospitals and defense contractors.” Jane’s company matches your target profile. You: “From what I see in the business press, that’s a very dynamic business these days.” Jane: “Oh, yes. It feels like the technology changes monthly. It borders on chaos.” You: “Besides the pace of technical innovation, it seems like biometric security companies are also wrestling with [your demand-triggering problem]. You’re in the business. Tell me, am I on track, or way off base?” Jane: “You’re pretty close, but [Jane modifies your understanding of the problem].” You: “Thanks for clarifying. That makes sense. I’d love to chat with you about some ideas I have for dealing with that, but I don’t want to monopolize your attention. You’re here to network. Would it make sense for us to explore this by phone over the next week or so?” Jane: “Sure, but this week is a bear for me.”
You: “I understand. Mine’s a bit jammed too. (Pull out your phone.) Want to put something on our calendars now, and confirm it tomorrow?” Jane: “No, Mike. Too many things are fluid right now. Send me an email next week and we’ll see what can work.” You: “Ok. May I get your card?” (Don’t say, “Here’s my card.” By doing so, you give up control of the contact to Jane. You always want to be the initiator. You know you’ll email Jane; you don’t know that Jane will email you.) Jane’s company doesn’t match your target profile, but is related to it. You (pointing to her badge): “Integrated Biometrics? I’m not familiar with your firm, but it sounds like you might be in the secure access business. How close am I?” Jane: “Close, but not close. We aggregate the data that those devices collect, and analyze it for activity patterns.” You: “Interesting. Do you partner with the device companies?” Jane: “Sure.” You: “I’m writing an article about how [your demand-triggering problem] affects the biometric security business. Do you think
any of your partners would be willing to have a brief call with me to get a quote from them?” Jane: “I don’t see why not. They might welcome the exposure.” You: “Would it be an imposition for me to ask you to introduce me to a few of them?” Jane: “Not at all.” You: “Thanks so much. I don’t want to monopolize your attention here. How about if I send you an email to arrange a time for a brief call about who might make the most sense?” Jane: “That’s fine. Here’s my card.” Jane is a dead end. You: “So far tonight, I’ve been wrong on most of my badge guesses. Oh, well. Jane, I apologize, but I’ll have to excuse myself. One of my clients is in the middle of something timesensitive, and I can feel my phone buzzing in my pocket, so I’d better find a quiet spot. It’s nice to have met you.” n For 20 years, Mike O’Horo has been known by lawyers everywhere as The Coach. He trained more than 7,000 of them, generating $1.5 billion in new business. Mike can be reached at mikeohoro@rainmakervt.com.
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Attorney Journal Orange County | Volume 139, 2017 7
Six Ways to Make Clients Happy to Pay Your Bills by Merrilyn Astin Tarlton
No one likes to pay bills. Even when the service or product we are paying for was way more valuable than the actual dollar amount on the invoice, we humans just hate to see the money out the door. And that natural resistance to doling out the bucks can often leave a lawyer looking at high accounts receivable and collections tasks galore. Yuck. Why not implement a few changes to help your clients feel more positively disposed—dare I say enthusiastic—to pay promptly next month? These six things will help. Don’t feel squeamish about this. Done the right way, marketing yourself does not diminish your reputation. On the contrary, it builds your reputation to the point where you will be turning clients away because your firm is in such high demand.
1. Greet them as a friend. Not only is it easier to pay someone you like, it is harder to stiff that person. Make a point of treating your clients as trusted and loyal friends. Use first names, express enthusiasm to see them, know about their business and their family, remember birthdays, understand what’s going on in their lives and refer to it, demonstrate that you are sitting on their side of the table. This will make doing business with you more pleasant (and improve your own experience of the time you spend in the office). Remember, too, that your client deals with others in your office, not just you. Model the way to make sure everyone—paralegals, secretaries, assistants, associates, partners, billing clerks—forms good relationships with all client representatives.
2. Keep them informed. Study. You may think it is your responsibility to do the job and tell the client about it afterward. And you may be right, that is what some clients want from you. Others want to know what’s going on when it is going on. Ask how they want to be updated, and make sure you give them what they want. This also applies to how you describe the work on your bills. I guarantee no one really wants to pay for an hour of your time, but if you can describe well what you did in that hour—and couch it in terms that show the value of the activity to them—clients will know more clearly why it makes good sense to pay you for it. 3. Go the extra mile. Demonstrate that a client’s relationship with you is worth more than the legal work you 8 Attorney Journal Orange County | Volume 139, 2017
perform. Make introductions to people who may be useful in their business or private life. Offer to co-write an article for publication about something significant you helped them do. Ask them to serve on a panel discussion with you to illustrate a new legal strategy. (Yes, this benefits you, too. Isn’t that nice?)
4. Please them with the work.
Sure, winning the big case always pleases clients and makes them happier to pay the bill. But even when it’s not a big win, the way you handle yourself and their interests demonstrates that you are doing everything you can to help them resolve a conflict or strike an agreement. And it shouldn’t go without saying: Don’t take their emotional responses to developments lightly. Do listen well and feed back what you hear to assure them they are heard. Don’t take shortcuts. Do proofread to avoid misspellings and other errors.
5. Make the bill simple to understand. While we’re on the subject of misspelling and proofreading, please avoid legalese and financial gobbledygook in drafting your bills. Speak and write clearly. If the system you use doesn’t allow text descriptions on the actual invoice, write a cover letter or memo to clearly restate the charges and any necessary explanation.
6. Always, always say thank you. That client doesn’t have to engage you. There are a lot of lawyers out there looking for work—looking for good clients. Make sure your clients know that you are grateful for their business and pleased by their trust and loyalty. Thank them whenever you meet and whenever you write. Send a gift to honor business anniversaries or family birthdays, or just because. Make them feel important and appreciated. It will make it so much easier for them to pay your bill. n Merrilyn Astin Tarlton is the author of the new Attorney at Work book “Getting Clients: For Lawyers Starting Out or Starting Over.” She has been helping lawyers and law firms think differently about the business of practicing law since 1984. She is a founding member of the Legal Marketing Association, an LMA Hall of Fame Inductee, and a past President of the College of Law Practice Management. Merrilyn was a founding partner of Attorney at Work. Learn more about Merrilyn and follow her on Twitter @astintarlton. Previously published in Attorney at Work.
Business and Partnership Matters & Board/Association/Property Controversies “Shannon is a well-respected litigator who is committed to getting her clients the best possible results. She is smart, hard-working, and experienced. I would not hesitate to refer my clients and colleagues to her for business litigation matters.” –Marie DiSante, Labor & Employment Attorney, Managing Partner – Carothers DiSante & Freudenberger LLP
“Shannon is very knowledgeable about the law, which I would expect; but what sets Shannon apart is her ability to be sympathetic, realistic and honest with her clients and convincing and tough when she needs to be with opposing counsel. I found her to be eloquent and wise, knowing the right time to speak up and doing so well when she did. Having Shannon by my side gave me the reassurance I needed.” –Monica Colonnier, Esq.
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I A L L AW
2018
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Keller/Anderle LLP BUSINESS TRIAL LAWYERS
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COMMUNITY news n For the fourth consecutive year, Berger Kahn has been included in the Best Lawyers of America list for Southern California, an esteemed list celebrating only the top 3% of the Bar. Berger Kahn attorneys included were: Craig Simon, Sherman Spitz, Stephan Cohn, DAVID EZRA and David Ezra. Shareholder David Ezra was also named the Best Lawyers 2018 Insurance Law “Lawyer of the Year” for Southern California. Since first published in 1983, Best Lawyers has become universally regarded as the definitive guide to legal excellence. Best Lawyers lists are compiled based on an exhaustive peer-review evaluation. Corporate Counsel magazine has called Best Lawyers “the most respected referral list of attorneys in practice.” n Cathy Tran Moses has joined the Orange County office of Cox, Castle & Nicholson LLP as senior counsel. She specializes in complex business litigation, including high-stakes employment and contract disputes. Moses leverages a CATHY TRAN MOSES decade of experience practicing in state and federal courts throughout the country and has obtained favorable results for clients through all stages of litigation, including dispositive motion practice, trials and appeals. Moses also maintains an active pro bono practice and has worked with local nonprofits to assist minors and other individuals in immigration matters. Ms. Moses was named to the Southern California Rising Stars list in 2017 for business litigation.
Have a Press Release you would like to submit for our Community News? Email it to PR@AttorneyJournal.us
12 Attorney Journal Orange County | Volume 139, 2017
n Snell & Wilmer is pleased to announce that 8 attorneys in the Orange County office have been selected for inclusion in the 2017 Southern California Super Lawyers publication. Of those 8, three were recognized as Southern California Rising Stars. Super Lawyers is a listing of lawyers from more than 70 practice areas who have attained a high degree of peer recognition RICHARD A. DEREVAN and professional achievement. The selection process is multi-phased and includes independent research, peer nominations and peer evaluations. The Snell & Wilmer attorneys selected for inclusion in the 2017 Southern California Super Lawyers rankings are Richard A. Derevan, Appellate; Roger A. Grad, Tax; Steven T. Graham, Business Litigation; Timothy J. Kay, Estate & Probate; William S. O’Hare, Business Litigation. BILL O’HARE In addition, Snell & Wilmer attorneys selected for inclusion in the 2017 Southern California Rising Stars list include Anthony J. Ippolito, Mergers & Acquisitions; Irina Ling (Rospotnyuk), Tax; and Jeffrey Singletary, Business Litigation. n Klinedinst PC, a business law firm, has welcomed a new associate attorney, Frederick M. Heiser, to its Santa Ana office. As Counsel, Mr. Heiser will focus his practice on retail defense, business litigation, employment law, and general liability matters. Mr. Heiser is an experienced litigation and trial attorney with over a decade of experience protecting his clients’ FREDERICK M. HEISER businesses in both state and federal courts across Southern California, including Los Angeles. Mr. Heiser has been recognized as a Rising Star by Super Lawyers® and is highly active in the legal community. He has been a featured speaker and author for Defense Research Institute and is a member of several other legal organizations. In 2014, he was elected to serve on the Board of Directors for the Opera League of Los Angeles, becoming one of the youngest members to serve on the Board. n JML Law, a California firm with offices in Los Angeles, Orange County and the Bay Area, is celebrating its twentieth anniversary. Joseph Lovretovich is the founder of JML Law, which is devoted 100% to litigation. Lovretovich founded JML Law to carry out his commitment to represent the rights of the individual. In his more than 40-year legal career, Lovretovich has tried numerous cases, involving almost every type of legal claim.
JOSEPH LOVRETOVICH
n Jennifer Keller, trial attorney at Keller/Anderle LLP in Irvine, has been named to the “Benchmark Top 250 Women in Litigation” list for 2017. According to Benchmark Litigation: “The Benchmark Litigation ‘Top 250 Women in Litigation’ is the definitive guide JENNIFER KELLER to the country’s leading female litigators. This publication’s extensive research process, which encompasses six months of investigation into the individual litigators’ professional activities as well as client feedback surveys and individual interviews, has culminated in the selection of the country’s most distinguished women in the world of litigation. “These women have earned their place amongst the nation’s leading female litigators by participating in some of the most impactful litigation matters in recent history as well as by earning the hard-won respect of their peers and clients. Though they hail from widely different practice areas, they all share the distinction of being recognized as top players in their respective fields.” n Newmeyer & Dillion LLP is pleased to announce that nine of the firm’s attorneys were recently recognized in their respective areas in The Best Lawyers in America© 2018. Two attorneys, Gregory Dillion and Thomas Newmeyer, also have been selected as an Orange County “Lawyer of the Year,” in the fields of Orange County Construction Litigation, and Orange County Construction Law, respectively. Attorneys named to The Best Lawyers in America, include Jason M. Caruso, Michael S. Cucchissi, Gregory L. Dillion, Jeffrey M. Dennis, Joseph A. Ferrentino, Thomas F. Newmeyer, John A O’Hara, Bonnie T. Roadarmel, and Carol Sherman Zaist.
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Attorney Journal Orange County | Volume 139, 2017 13
What’s New in Structured Settlements? A Lot! by Marjorie Ford Smith
S
tructured settlements became a popular alternative to lump sum settlements in the 1970s. In 1982, Congress adopted special tax rules that encouraged the use of structured settlements for personal injury victims and their families. Since then, little has changed in the industry—until recently. What used to be an industry with narrow parameters, now offers much more flexibility. Attorneys will rethink how they view structures once they realize how much has changed. First, a brief overview of structured settlements (“structures”): Structures allow claimants in physical injury cases to receive their settlement funds in future periodic payments, as opposed to receiving an immediate cash lump sum payment. The arrangement allows for claimants to maximize and safeguard funds. When the claim stems from a physical injury, structured funds grow tax-free. When the claim stems from a non-physical injury—employment cases, civil rights cases, construction defect cases, etc.—structured funds grow tax-deferred. In both instances, the tax benefit is significant, and the structure allows for budgeting, financial security, and peace of mind. Structures can provide lifetime income for injured people, many of whom cannot afford to incur any kind of financial risk. Structures can help settle cases and make for happy clients, which leads to repeat business and referrals for their attorneys. Attorneys may also structure their contingency fees. Legal fee structures allow attorneys to defer taxes on their fee and the investment income that it earns within a structure. Just as claimants may, attorneys may also choose how and when they receive their future periodic payments. Structures allow attorneys to save on taxes, save for retirement, provide for their children’s education, or simply ensure income regularity, given the uncertainty of contingency fee-based practice. It used to be that we could use only fixed-income annuities and U.S. Treasuries to provide structured settlement payments. Those investment options still rank most highly for safety of principal and for providing guaranteed growth. They give payees certainty, making them ideal for cases requiring court approval. For their guaranteed, management-free income, annuities are still our “go to” structured settlement vehicle. Now, however, some structured settlement company can offer Fixed Indexed Annuities to the Payee who needs certainty but who also wants a degree of market-correlated return. Fixed Indexed Annuities represent a balanced and conscientious settlement solution. They protect against loss of principal while yielding returns related to a specified equity index, such as the S&P 500. Because Fixed Indexed Annuities guarantee at least a 14 Attorney Journal Orange County | Volume 139, 2017
minimum return (a “Floor”), they can work for minors and for cases involving conservatorships. They enjoy the same tax status as traditional annuities: tax-free growth for physical injury cases and tax-deferred growth for taxable settlements and attorney fees. A structured settlement consultant can help claimants and attorneys evaluate the different Fixed Indexed Annuity options now available. The big news in structured settlements lies outside of fixed income, however. Programs delivering market-related returns have broken new ground. These market-based structured settlement programs appeal to those who want a structured settlement’s inherent benefits, including its tax status, but who want to have their funds placed in market-based investments. Within a market-correlated program, claimants may structure their settlement while having funds placed in a professionally managed portfolio of mutual funds, index funds, or other market-correlated investments. Such a program is a “no brainer” for someone whose fixed-income needs are properly addressed and who is looking for market-related returns for the remaining portion of the settlement proceeds. Some programs allow payees to have their own financial adviser or a trust company manage the funds. In cases where a physical injury is involved, all principal and interest or investment gains is completely tax-free. In non-physical injury cases, the principal and interest or investment gains is tax-deferred until the year(s) in which the payee receives future payment(s). Contingency fee attorneys may also structure their fees via market-based programs. Market-based programs can be the best of all worlds in some situations, but prospective payees must inquire about suitability, program costs and exactly what the program entails. With the traditional structured settlement annuity and the advent of market-based structured settlements for claimants and attorneys, there is no longer a “one size fits all” or “not at all” approach to structures. Every case and every claimant is different, but structured settlements are designed to protect all people, regardless of their degree of financial sophistication. Today, all claimants should be made aware of their one-time opportunity to receive tax-free or tax-deferred periodic payments in the form of guaranteed fixed income or market-based income payments. n Marjorie Ford Smith is a Certified Structured Settlement Consultant with Millennium Settlements, Inc (CA# 0I11806). She is also a Registered Investment Advisor with Ford & Smith Consulting, Inc., licensed in California.
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G N I N I B M CO HUMAN S P I H S N O I T A L E R S ’ Y G O L O N H C E WITH T S E C N A V AD by Dan Baldwin
A
nthony Geraci, founder of Geraci Law Firm, believes history could have a lot of different interpretations. It’s just the path to success in the coming years can be found because we had to band together to fight lions and tigers and in combining to feed ourselves. That’s the latest technology the true human need— “Our company has been using The Geraci Law Firm with the oldest of to connect with another since 2009. In our business there is very little margin for human emotions—the human being.” error. Their team has served as a strategic partner, helping need for establishing He employs a proven relationships. business technique us navigate through a complex set of compliance issues Geraci says, “What for improving his during one of the most challenging economic cycles we figured out is that personal performance, in recent memory. Anthony has always made himself you can take all the the productivity of his available on both small and large issues alike. His breadth technology you want, staff, and the longof knowledge on all real estate matters is unmatched. but let’s get a bit more term stability of his Christina Geraci successfully represented us on a title biological. Let’s get firm—incremental claim against one of the biggest insurance underwriters tribal. Why are we improvements across in the nation. After watching her work, I can honestly always in cities together? the board on a daily say that she is one of the best litigators in the business. Why do people go to basis. “We need to set We also worked with Kevin Kim on a mortgage pool 506 conferences? You can’t a goal to be just a little licensing conversion project. Thanks to him, our company tell me you can’t learn bit better each and every is now in a position to raise and invest money nationwide. things over a webinar in day. I just try to be a I am not only satisfied with their service but incredibly the comfort of your own better person, a better home. But people want father, a better husband, grateful for what they have done for our company.” to go to conferences. It’s a better boss… better in —Andre Jimenez, Windvest Corporation been proven that if you every way I can. I just don’t touch children and keep trying to be better if you don’t give them love and affection, they have disorders in incremental steps every day,” he says. later on. That’s because we’re communal. We’re tribal. I guess Geraci Law firm was founded in 2007 and today employs 16 16 Attorney Journal Orange County | Volume 139, 2017
LAW FIRM
OF THE MONTH
© christopher TODD studios
2017 2014
attorneys, a full marketing department, and is currently expanding its IT and marketing departments. The firm’s practice areas are: banking and finance, bankruptcy, litigation, securities, corporate, and real estate. “Our niche is the alternative non-bank lender who makes loans to people where banks will not or cannot,” Geraci says.
Taking Corporate Heads Out of the Sand “To my mind the trends clearly indicate that the law as a profession is going to change dramatically. What’s wrong with the industry is that we still treat the law as a profession and not as a business. Incredible change is coming and it’s coming fast. You can either stick your head in the sand or you can do something about it,” Geraci says. Toward that end and toward streamlining his firm’s operations, Geraci no longer practices law. He is a full-time manager as Managing Shareholder. The firm also has a fulltime Managing Shareholder of Operations. “I’m a CEO for lack of a better term. We do a lot of things differently. Most law firms who have someone filling the managing partner role have him bill a lot and they get a credit of 500 billable hours or so for it. To me that doesn’t make sense. Why do businesses anywhere from small businesses all the way up to Fortune 500 companies all have a CEO whose sole job is to grow the business and focus on the future? That’s the formula that works.” For example, Geraci says that technology will begin replacing many of the “Our company engages in private money tasks currently handled by junior attorneys. Automation, such as that used real estate financing and we have used Geraci by Legal Zoom, has already replaced work formerly handled by those junior Law Firm exclusively since our inception for attorneys. The attorneys with the best chances of survival in the new and legal advice and loan document preparation. ever-changing business environment will be senior attorneys, rainmakers, Their level of service and quality of loan and litigators. documents are the best in the business. I That line of reasoning has shaped the current success and future path of the simply cannot thank Nema Daghbandan Geraci Law Firm. “Our entire business model and the reason we’re doing what enough for his guidance and accessibility we’re doing is because of the institutionalization of technology. I don’t want which has been vital to our company’s to sound like I’m predicting doomsday. It’s not like attorneys are going by the wayside, but most people, especially lawyers, are not good business people. I success. I have referred a number of my think they’d admit that. What happens is they don’t see the trends coming, colleagues to Geraci Law Firm, and I would including technology. It’s going to be a crazy world ten years from now,” highly recommend their services to anyone.” Geraci says. —Carl Maggio, Principal Maggio Capital, Inc. Geraci sees another challenge having an increasing effect on legal firms in the near future. The requirement that prohibits non-attorneys from investing in law firms has and will continue to have a powerful negative effect on a firm’s ability to raise the funds necessary to thrive in the coming decades. “I think we’re the only profession hamstrung by that rule. This is behind Australia and England, who allow nonattorney investors in law firms. This needs to change, especially with technology to level the playing ground for us. That’s got to happen. Right now law firms are limited to lines of credit and other lending or debt facilities. We have to have access to outside capital,” he says.
The Un-Firm The attorneys and staff at Geraci Law Firm sometimes refer to themselves as “the UnFirm,” meaning their approach is beyond identifying problems and focused on finding solutions for client challenges. In addition to the Managing Shareholder (Geraci) and the Managing Shareholder of Operations, the firm has seven managers, or “chairs,” to handle specific practice areas. The firm has an established hierarchy but, as Geraci says, “We’re not so rigid that somebody has to report to somebody to report to somebody to report to somebody to get anything done. It’s just that I recognize my limitations in being able to manage. I can 18 Attorney Journal Orange County | Volume 139, 2017
© christopher TODD studios
© christopher TODD studios
maybe manage five to seven people. Above that it just goes crazy. But, if I had to boil down my management philosophy it would be work hard/play hard. If people love what they do and can feel a sense of accomplishment, they’re happy and that makes for happy clients.” Geraci practices the management philosophy of the servant leader. “I go in and ask what obstacles are you facing and what can I do to help you. That’s my mentality. And it’s worked for us. It’s a fact that if people feel loved they’re going to work harder,” he says. As a full-time manager he enjoys the strategic aspects of management. “I love thinking about what’s next. I love coaching our team on how to be better attorneys, better people, and helping them going through the challenges they face from clients, interpersonal skills, and leadership. I love teaching.”
Leadership in the Industry and the Community Geraci Law Firm plans to address and overcome the challenges brought on by change through expanding efforts on the communal as well as the technological fronts. The team has created its own conference line and hired an internal marketing department. Its national presence has grown from a regional footprint into the leading brand in its niche through a result of not just marketing in general, but by creating a conference line where clients can network with each other. The firm also created a magazine for its target audience, educating them through magazines and continuing to dominate the conversation in their footprint. The firm serves the community each year by sponsoring Families Forward, a local program for families who can’t afford jackets, sweaters, school supplies and such. The firm buys the articles and provides them to families in need. Each quarter the firm has an internal drive to sponsor a different charity. For example, they recently became a title sponsor of the Angel’s Baseball Foundation. That money goes directly toward helping children in education. “For me, that’s my sweet spot—helping children,” Geraci says. The Geraci Law Firm has developed a unique corporate culture designed to serve clients on a personal level while at the same time staying on the cutting edge of a rapidly changing business environment. “We think we’re different than most. We’re entrepreneurial people who have linked up with our own media and consulting divisions to deliver value to our clients over time. As far as I know, we’re the only firm our size that has a full-time Managing Shareholder who does not practice law. We became one of only six law firms on the Inc. 5000 list and we are the fastest growing law firm in the Southwest. As much as I loved practicing law, I love building the firm alongside a group of talented and dedicated people focused on ‘what’s next,’” Geraci says. n Contact Anthony Geraci Geraci Law Firm 90 Discovery Irvine, California 92618 949.379.2600 949.379.2610 Facsimile a.geraci@geracillp.com GeraciLawFirm.com
“The attorneys at the Geraci Law Firm are some of the most bright, hardworking and diligent attorneys I have had the pleasure of working with. Their team is extremely responsive and provide efficient solutions to some of the most complex problems lenders, trustees, and loan servicers encounter. I wholeheartedly endorse their attorneys for all loss mitigation, compliance, litigation and secured creditor matters.” —Randy Newman, Total Lender Solutions, Inc. 20 20 Attorney Journal Orange County | Volume 139, 2017
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Seize Your Reader’s Attention and Erase Doubt From Your Marketing Copy by Tom Trush
Drafting the Headline During the last century, countless advertising and marketing experts have crowned it king of the copy castle—the most critical element in any promotional piece. This status is well-deserved. After all, the headline is your first opportunity to grab your prospect’s attention. If you fail to attract eyeballs and communicate a reason to continue reading, then there’s little use for the remaining copy because most people won’t see it.
“On the average, five times as many people read the headlines as read the body copy. It follows that unless your headline sells your product, you have wasted 90 percent of your money.” —David Ogilvy, world-famous advertising executive and best-selling author of “Ogilvy on Advertising.” The good news is you don’t have to be a great wordsmith to write powerful headlines. You can simply alter ones that are already written to fit your needs. Once you understand the inner workings of a powerful headline, you can replace the elements with your own information. For example, let’s look at this article’s title (which serves the same purpose as a headline on an advertisement or marketing piece). There are at least three words you could change to target a completely different audience. In my opinion, the easiest terms to remove and replace are “Writer’s,” “Creating” and “Headlines.” If you want to target people who hate crunching numbers at tax time, why not use the headline The Reluctant Accountant’s Guide to Filing Taxes? If you want to target people who are hesitant about cooking their Thanksgiving turkey, you could try The Reluctant Cook’s Guide to Roasting the Perfect Turkey.
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Get the idea? A great source for coming up with headlines is Digg (www.digg.com). A social news website for discovering and sharing content from the Internet, Digg allows its users to determine the value of information using votes (or “diggs”). When you visit the site, it won’t take you long to notice a trend. Many posts with the most votes on Digg are numbered lists. Here are a few examples from this morning: 5 Ways Restaurants Provide Your With Better Service Top 5 Food Shortage Nightmares 15 Best Free Windows Mobile Apps “How to” headlines are also common on Digg. If you study Ogilvy’s ads, you’ll see he frequently used “how to” headlines to tell potential clients about his agency’s expertise ... How to Create Corporate Advertising That Gets Results How to Launch New Products How to Make Your Sales Promotions More Profitable The reason numbered lists and “how to” headlines are so effective is because they promise readers helpful information. If you use these types of headlines, be prepared to provide valuable content in your body copy so you reward readers for investing their time. You’ll be amazed at how fast you can build credibility and trust with them when you share your knowledge.
7 Quick Ways to Erase Doubt From Your Marketing Copy Your prospects become suspicious the instant they start reading your marketing materials. The reaction is only natural. After all, when you’re a prospect and you’re asked to take action on an offer, your internal skeptic alarm goes off, too. Right? So you realize you have only a few seconds to reverse your prospects’ thought process and get them on your
side. The challenge is figuring out how to complete this transformation. Here are 7 quick ways to eliminate your prospects’ doubt when they read your marketing copy:
5. Encourage involvement. Ask for opinions or
1. Address doubts immediately. The longer you
6. Give an escape route. This means making your offer
let suspicions linger, the more you risk your prospects fleeing to another marketing piece that better addresses their concerns. When you deal with objections, you become someone who helps rather than sells.
2. Add personality. Your copy isn’t just words on a page. If you want interaction, you must view the words you write as a friendly conversation. Prove to your prospects why you’re just like them and you’ll gain credibility.
3. Write the way your prospects talk. When you “speak” their language, you quickly establish a level of trust. Long words and jargon can create confusion and, in some cases, a sense of inadequacy.
4. Support your claims with proof. Testimonials, statistics and case studies go a long way in reducing doubt. Your prospects want to know people just like them were successful using your legal services.
responses to questions. Give prospects a checklist to help determine desires. You can even lead them to an audio, video or photo to engage their senses. risk-free. A guarantee or trial period shows confidence in what you offer and allows prospects to test your legal services on their own terms.
7. Deliver value. When you give freely, your prospects will feel more inclined to return the favor. There’s no substitute for making them feel like you truly care about their needs. Keep in mind, regardless of how well you write your copy, you’ll never get prospects to do anything they don’t want to do. All you can do is capitalize on an unfilled need or desire. n Tom Trush is a Phoenix, Arizona-based direct-response copywriter who helps entrepreneurs and executives craft lead-generating marketing materials. Pick up his latest book, Escape the Expected: The Secret Psychology of Selling to Today’s Skeptical Customers, for free (just cover shipping) at www.writewaysolutions.com/blog/ free-book-offer.
Attorney Journal Orange County | Volume 139, 2017 23
Organized Succinct Summaries of Some New California Civil Cases by Monty A. McIntyre, Esq.
Below are some recent cases summarized by Monty A. McIntyre in his publication California Case Summaries Civil™, which provides organized succinct summaries, every other Monday, of every new published California civil case for only $7.99 a month. (Go to http://montymcintyre.com/mcintyre/.) Monty has been a civil trial lawyer since 1980, representing both plaintiffs and defendants in a broad variety of civil cases, and has more than 17 years of experience as a mediator and arbitrator. He has been a member of ABOTA since 1995, and is the past president of the San Diego County Bar Assn. and the San Diego Chapter of ABOTA. Monty mediates and arbitrates at ADR Services, Inc., where he handles cases in the areas of business, commercial, elder abuse, employment/wage & hour, insurance coverage/bad faith, legal malpractice, medical malpractice, personal injury, real property and wrongful death. To schedule a mediation or arbitration, contact his case manager Kelsey Carroll at ADR Services, Inc. at (619) 233-1323 or kelsey@adrservices.org.
CALIFORNIA SUPREME COURT Torts Rubenstein v. Doe No. 1 (2017) _ Cal.5th _, 2017 WL 3691550: The California Supreme Court reversed the Court of Appeal decision finding that plaintiff had timely filed her sexual molestation claim in 2012, arising from events that occurred in 1993 and 1994. The California Supreme Court ruled that a government tort claim must be presented not later than six months after the accrual of the cause of action (Government Code, section 911.2(a)), the cause of action in this case accrued at the time of the alleged molestation, and the California Legislature’s 2002 amendment of Code of Civil Procedure section 340.1, did not relieve claimants from complying with the government claims statute when suing a public entity defendant. (August 28, 2017.)
CALIFORNIA COURTS OF APPEAL Arbitration Cortez v. Doty Brothers Equipment Company (2017) _ Cal. App.5th _, 2017 WL 3483719: Electing not to decide several difficult jurisdictional issues, the Court of Appeal decided to treat consolidated appeals as a writ petition. The Court of Appeal granted the writ in part, and denied the writ in part, modifying the trial court’s order granting a motion to compel arbitration in an action alleging wage and hour violations and a representative claim under the Private Attorneys General Act of 2004 (PAGA, Labor Code, section 2698 et seq.). The Court of Appeal granted the writ in part, finding that plaintiff’s action for failure to timely pay wages upon separation from employment (Labor Code, section 203), and his unfair competition action (Business & Professions Code, section 24 Attorney Journal Orange County | Volume 139, 2017
17200), were not encompassed in the arbitration provision in a collective bargaining agreement (CBA). The rest of the writ was denied because the remaining causes of action were subject to arbitration, and the trial court’s termination of class claims was proper on the ground the CBA did not authorize classwide arbitration. (C.A. 2nd, filed August 15, 2017, published September 1, 2017.) Harshad & Nasir Corporation v. Global Sign Systems (2017) _ Cal.App.5th _, 2017 WL 3484761: The Court of Appeal reversed the trial court’s order confirming an arbitration award against respondent Friendly Franchisees Corporation (FFC) for $1,154,793.72 in damages, $702,093.86 in prejudgment interest, and $1,142,596.20 in costs, and affirmed the trial court’s order vacating the award as to four affiliates of FFC (the Affiliates) who the arbitrator added as joint and several obligors under the award. The Court of Appeal ruled that the general rule, that the arbitrator’s decision cannot be reviewed for errors of fact or law, did not apply because the parties had agreed to limit the arbitrator’s authority by providing for review of the merits in the arbitration agreement. On the merits, the Court of Appeal ruled that substantial evidence did not support the award, and an alleged contract to be performed over a threeyear period violated the statute of frauds. Further, the arbitrator exceeded his authority by deciding a claim that FFC had not agreed to arbitrate. The Court of Appeal deemed appeals from the orders regarding motions for attorney fees to be petitions for writ of mandate, and directed the trial court to vacate the orders and make different orders denying the motions. (C.A. 2nd, August 15, 2017.) OTO, L.L.C. v. Kho (2017) _ Cal.App.5th _ , 2017 WL 3599067: The Court of Appeal reversed the trial court’s order denying a motion to compel arbitration. The trial court denied the motion to compel arbitration because it found the arbitration agreement was substantively unconscionable because it failed to provide the employee with an affordable and
accessible alternative forum as required by Sonic-Calabasas A, Inc. v. Moreno (2013) 57 Cal.4th 1109 (Sonic II). The Court of Appeal disagreed, ruling that the arbitration proceeding under the agreement satisfied the Sonic II requirements of affordability and accessibility. Because defendant was required by Armendariz v. Foundation Health Psychcare Services, Inc. (2000) 24 Cal.4th 83 to pay for the arbitration, the affordability requirement was satisfied. The absence of free representation did not make a wage claim arbitration unaffordable. The lack of an express employee-favorable attorney fee provision, similar to Labor Code section 98.2(c), did not cause the agreement to be unconscionable because the agreement required the application of another similarly favorable provision of the Labor Code. Because the proceeding outlined by the arbitration agreement was similar to civil litigation, it was no more complex than the process that would often be required to resolve a wage claim under “Berman” procedures. (C.A. 1st, August 21, 2017.) Sprunk v. Prisma LLC (2017) _ Cal.App.5th _, 2017 WL 3614265: The Court of Appeal affirmed the trial court’s denial of a motion to compel arbitration in a putative class action. Defendant waived its right to seek arbitration by filing and then withdrawing a motion to compel arbitration against the named plaintiff, and then waiting until after a class had been certified to seek arbitration against class members. (C.A. 2nd, August 23, 2017.)
Attorney Fees Sukumar v. City of San Diego (2017) _ Cal.App.5th _, 2017 WL 3483653: The Court of Appeal reversed the trial court’s order denying petitioner’s attorney fees. Even though the trial court denied the writ petition under the Public Records Act (Government Code, section 6250 et seq.), petitioner was the prevailing party because petitioner’s action resulted in respondent releasing copies of previously withheld documents. (C.A. 4th, August 15, 2017.)
Civil Procedure Sviridov v. City of San Diego (2017) _ Cal.App.5th _, 2017 WL 3203271: The Court of Appeal affirmed the trial court’s order awarding costs to defendant in an employment action by a former police officer. Plaintiff argued on appeal that defendant was not entitled to costs based upon Williams v. Chino Valley Independent Fire Dist. (2015) 61 Cal.4th 97, 99 and Government Code section 12965(b), because there was no proof that plaintiff brought or continued litigating the action without an objective basis for believing it had potential merit. Plaintiff also argued that, under the Public Safety Officers Procedural Bill of Rights Act (POBRA, Government Code, section 3300 et seq.), defendant could not obtain an award of costs for the defense of plaintiff’s POBRA claim unless the action was frivolous or brought in bad faith. The trial court properly awarded costs to defendant because plaintiff rejected three Code of Civil Procedure section 998 statutory settlement
offers and did not obtain a more favorable result. (C.A. 4th, filed July 27, 2017, published August 15, 2017.)
Employment Aviles-Rodriguez v. Los Angeles Community College District (2017) _ Cal.App.5th _, 2017 WL 3712199: The Court of Appeal reversed the trial court’s order sustaining a demurrer, without leave to amend, of a complaint alleging violation of the Fair Employment Housing Act for denial of tenure and termination based on racial discrimination. In light of Romano v. Rockwell Internat., Inc. (1996) 14 Cal.4th 479, the Court of Appeal ruled that the one-year limitations period for plaintiff to timely file a Department of Fair Employment and Housing (DFEH) complaint began to run from the last day of his employment, and because plaintiff filed his DFEH complaint within that period it was timely. (C.A. 2nd, August 29, 2017.)
Landlord Tenant Sleep EZ v. Mateo (2017) _ Cal.App.5th Supp. _, 2017 WL 2984900: The Los Angeles Superior Court Appellate Department affirmed the trial court’s judgment for defendants in an unlawful detainer case. When a tenant mails rent at a landlord’s direction and, through no fault of the tenant, the landlord does not receive it, the tenant is not in default in the payment of rent in an unlawful detainer action. (Appellate Division, Los Angeles Superior Court, July 13, 2017.)
Real Property (Quiet Title) Deutsche Bank National Trust v. Pyle (2017) _ Cal.App.5th _, 2017 WL 2981804: The Court of Appeal affirmed the trial court’s order granting summary judgment in favor of plaintiff. The trial court properly ruled that defendants did not qualify as bona fide purchasers as a matter of law based on a void default judgment. The void default judgment did not quiet title to the property. (C.A. 4th, July 13, 2017.)
Torts Grotheer v. Escape Adventures (2017) _ Cal.App.5th _, 2017 WL 3772580: The Court of Appeal affirmed the trial court’s order granting summary judgment to defendants in an action for damages arising from the crash landing of a hot air balloon. The trial court found the action was barred by the primary assumption of risk doctrine. The Court of Appeal affirmed, but for different reasons. It ruled that the defendant balloon tour company was not a common carrier subject to a heightened duty of care; the primary assumption of risk doctrine barred plaintiff’s claim that the balloon pilot negligently failed to slow the balloon’s descent to avoid a crash landing; and company had a duty to provide safe landing instructions to its passengers, but the undisputed evidence regarding the crash demonstrated that any failure on company’s part to provide such instructions was not the cause of plaintiff’s injury. (C.A. 4th, August 31, 2017.) n
Attorney Journal Orange County | Volume 139, 2017 25
Written Schedule of Services and Fees Multiplies Credibility, Increases Client Comfort by Trey Ryder
H
ow do you present fees in a way that emphasizes the value of your services and takes the spotlight off the price? If you’re a student of sales and marketing, you’ve probably read about the importance of completing your sales pitch and not revealing the price until the end. But, if you’re the person who asks the price, you know how annoyed you get when the vendor won’t disclose it. Instead, he wants to sit down with you in your office and go page by page through his entire presentation. Then, when he finally reaches the end of this marathon, he will reveal the magic numbers. And he knows that’s the right way to do it because he learned it at “Friendly Bob’s School of High Pressure Selling” where the motto is “Stay Until They Pay.” Here’s where salespeople miss the boat: By not disclosing the price, they arouse your suspicion, increase your skepticism, undermine their credibility—and, in general, irritate the heck out of you. And when salespeople finally do reveal the price, their previous stonewalling has built such a barrier that you don’t want to do business with them at any price. When you follow the education-based marketing model, you never hesitate to disclose price. And one of the most effective ways to disclose fees is on a written schedule of services and fees. This is a helpful document because you can use it in so many ways, including (1) as a handout during in-person meetings, (2) as a handout at seminars, (3) as part of your website, and (4) as a document you can email to prospects. On this written schedule, you list the service you provide and then break down the service into all its sub-parts. This shows your prospect value. Then you show in writing what your prospect pays for the service. By not concealing the price, your prospect sees that you have nothing to hide and that you’re not bashful about your fees. When you balance all the things you do against the fee you charge, you present your fee in the most favorable light. And—possibly for the first time —your prospect has a visual and detailed understanding of the in-depth services you provide when he hires your services. Here are three models you can use to create your written schedule of services and fees.
Business Services If you offer a variety of services, but not necessarily at any one time, you can offer a buffet:
26 Attorney Journal Orange County | Volume 139, 2017
Title: (Your Name’s) Business Related Legal Services As your business lawyer, I offer the following services or offer to handle the following matters for you: 1. Selection of new business entity, including corporations, limited liability companies, general and limited partnerships 2. Partnership agreements 3. Shareholder agreements 4. Business contracts and agreements 5. Business-related mediation and litigation 6. Shareholder disputes 7. Contract negotiations 8. (And so on) When possible, put a fixed fee next to the documents. If you can’t, then put a typical fee range next to the documents. If one type of business might pay one price, but another type might pay a different price (for my example, I’ll use small and large businesses), then say so. For small businesses, the fee is usually between $wwww and $xxxx. For large businesses, the fee is often between $yyyy and $zzzz. (Or create two forms, one you use for small businesses and the other for large businesses.) If you cannot disclose fees or fee ranges, then state your hourly rate. This really doesn’t answer much unless your prospect knows how long you need to complete a task, which most don’t. Then, after you disclose your hourly rate, offer to quote exact fees or fee ranges when your prospect describes his situation. The point is to show prospects your willingness to openly and honestly disclose and discuss fees—without boxing yourself into fees where you need flexibility.
Estate Planning
If you offer an asset protection and estate planning portfolio, you no doubt have a list of subjects you discuss—and documents you prepare—as part of your package. Here’s how to start your schedule of services and fees. Title your page: (Your Name’s) Estate Planning Portfolio When you ask me to prepare your asset protection and estate plan, you’ll receive ... 1. Living trust document 2. Powers of attorney 3. Living will 4. Pourover will
5. Certificate of trust 6. (And so on) I’ve seen lawyers list as many as 27 documents the client receives when he hires the lawyer to prepare his estate plan. You want the detailed list to include everything you do, so when the client reaches the bottom of the page and sees your fee, it will look modest when compared with the staggering amount of work you perform and documents you prepare.
Personal Injury
If you offer to settle accident claims, provide your prospect with the list of services you perform. Title your page: (Your Name’s) Accident and Injury Services When you ask me to represent you for your injury claim, I will provide these services: 1. Help you find a doctor who will wait for payment 2. Help you secure a rental car until your car is fixed 3. Order and review police reports 4. Hire an investigator to take photographs and interview witnesses 5. Review witness statements 6. Investigate the accident scene 7. Compile your medical bills 8. (And so on) Include everything you can think of because you really do provide all these services for your clients. It’s about time clients appreciate how hard you work to settle their injury claim. Some injured victims think all you do is write a letter and collect one third of the settlement amount. When you list everything you do, your fee at the bottom of the page looks small compared with the lengthy list of services you provide. When you meet with your prospect to discuss his case, use this new sheet to walk your prospect through the services you offer. As you point to and explain each service, you help assure that your prospect (1) understands what you do, and (2) appreciates the skills necessary to provide these services. On the same page, after your list, feature special aspects of your services. These are more things you offer that set you apart from other attorneys. Also, these special services may be your competitive advantages. Here are a few samples: Free Phone Consultations. Write two or three sentences inviting your prospect or client to call you any time he has a question or problem. Questions often lead to work that you can perform on your client’s behalf. Peace of Mind Meetings. Often, estate planners offer to meet with family members without charge after the death of someone for whom the lawyer has written an estate plan. Write two or three sentences pointing out how important this is at this difficult time. Fee Guarantee for a Limited Time. Some attorneys state that the fees quoted on this sheet are guaranteed for 60 days from the date prospects receive this document or attend your seminar.
After 60 days, simply invite prospects to call their office to see whether these fees are current. This is done to remind prospects that fees may increase and to encourage them to act while these fees are in effect. Costs. List things that might be added to your fees. State costs in a positive way and make sure you include everything that might come up. Also, as an added competitive advantage, include things other lawyers might charge for that you have included in the fee at no added charge, such as photocopies or other incidentals. Make sure you write everything in plain English and format it on the page with relatively large type that is easy to read. Prospects grow suspicious if they find a document hard to read or understand. Clear writing that’s easy to read increases your credibility. I usually create written schedules of services and fees on legal size paper (8.5" x 14"). This implies that you offer so many services that you simply can’t get them all on a regular size sheet. Also, the larger page looks more important and draws the reader’s attention. If you offer different services for different audiences, you can create a service and fee schedule for each audience. When you hand prospects your written schedule of services and fees, they feel more comfortable because they believe they can rely on what they see. In addition, they have everything in writing in case their memories fade. And last, you’re happier because you have reduced the risk of a fee misunderstanding because everything is right there in black and white. Plus, this written schedule has a pre-emptive value. Even if competing lawyers offer the same services, prospects and clients often don’t know this unless the competing lawyer publishes a schedule of services and fees. With this document, you can effectively display what you offer—and raise questions about what other lawyers might offer—simply by handing this document to prospects and clients. This written schedule of services and fees is a terrific marketing tool. I’ve used them with lawyers for 20 years with very positive results. And, as a general rule, people trust what they see in writing more than what they hear, so this document increases your credibility. Bottom Line: In most cases, when prospects see how much they receive from you in value, they are far less concerned about how much they pay. In this way, you take the spotlight off price and put it where it belongs, on the value you offer your clients. Till next time, I wish you the best of everything! n Trey Ryder has designed Education-Based Marketing programs for professionals and businesses of all types. Today, Trey shares his marketing method with lawyers through a wide range of publications. In addition, he writes and publishes his free e-zine, The Ryder Method™ of Education-Based Marketing. And he maintains the Lawyer Marketing Advisor at www.treyryder.com.
Attorney Journal Orange County | Volume 139, 2017 27
Seven Words to Learn Before You Apply for Your Next Loan by Brooke Lively
G
rowing law firms need cash, but cash can get tight. All firms should have access to reserve cash, such as a line of credit, but applying for a loan can be nerve-wracking— especially when bankers start throwing out unfamiliar terms. One of my clients (now in his second year on the Inc. 5000) needed to secure funding to keep growing. When he went to the bank, they said they needed to see his “pro formas.” He didn’t know what they were talking about and began to panic. Once I explained what a pro forma is (see below), he was mad the bankers didn’t just say that!
Hold Your Own in Law Discussions To help with your next loan, here are seven banking terms defined in plain English. Armed with these few phrases, you should be able to hold your own in any loan discussion. 1. Pro forma. This is a fancy term for next year’s budget or projections. Basically, bankers want to see if you will be able to pay back the loan. Create a spreadsheet that shows the revenue you anticipate having, then list all the expenses, and tally it all up. It should look just like your profit-andloss statement (P&L). There should be plenty of profit at the bottom to show that you can make payments. Be aware that the numbers need to be supportable, and you need to be able to explain them. 2. PG. Bankers like abbreviations, and this one stands for personal guarantee. Until a business has been above $5 million for a couple of years, it won’t start building its credit score. As a result, you will need to use your own. Typically, bankers will ask that you sign a personal guarantee taking full financial responsibility if your firm can’t repay the loan. 3. PFS. This abbreviation stands for personal financial statement. It lists all your assets (bank, brokerage and retirement accounts; house; cars; and personal possessions), your expenses and debt (credit cards; student loans; mortgage; and car payments) and shows what’s left over, meaning your net worth. Bankers use this to see what happens to all the profits from your law firm. If your firm is clearing $50,000 a month, but you need every penny of that to live your life, it will be hard for the firm to repay debt. The lesson here is to always try to live within your means—not doing so can strangle your firm’s growth. 4. Debt coverage, Debt ratio, Leverage ratio, DI (debt to income). Bankers will look at this for your firm and for you personally. Take all your firm debt and divide it by your 28 Attorney Journal Orange County | Volume 139, 2017
revenue. Then, using your PFS, do the same for your personal debt divided by your income. Bankers generally want to see this at 40 percent or under. If you go beyond that number, bankers worry that you won’t have enough cash to pay back the loan. 5. Collateral. Collateral is an asset pledged to guarantee a loan. Usually, assets are things that can be easily sold, so the bank can recover its money if you don’t repay the loan. Most law firms are low on collateral—all those computers, conference tables and law books won’t bring in much cash. However, firms can use things such as accounts receivable or even some large settlements to guarantee a loan. 6. Covenants. These are conditions of your loan that can be operational or financial in nature. Financial covenants generally say you have to maintain your DI (debt to income) at a certain level or get approval before taking on more debt. Operational covenants might require you to maintain a certain amount of insurance or not sell certain assets that may be tied to the loan. Covenants aren’t bad—but you need to be aware of and abide by them. Not doing so will trigger a technical default, which means you have to immediately pay back all money owed. 7. EBITDA. We hear this acronym on TV all the time. It stands for earnings before interest, taxes, depreciation and amortization. Essentially, bankers are looking for the net income number from your P&L because it’s a measure of your operating performance before you make financing or accounting decisions. If your bookkeeper is really on top of things and is subtracting depreciation and amortization from your P&L every month, simply add those back in when you are discussing EBITDA. These words and acronyms sound more intimidating than they actually are. Bankers like to use shorthand terms and often forget that most businesspeople aren’t familiar with them. It happens in every industry—even in the law. n Brooke Lively is the CEO and founder of Cathedral Capital, a consortium of CFOs and profitability strategists committed to equipping entrepreneurs and small businesses with the tools and expertise to take their business to the next level. Leading with her competencies of financial expertise and executive coaching, Brooke nurtures her clients’ growth, whether in the bottom line or their impact in their communities and industries. Previously published in Attorney at Work. Follow her on Facebook, Twitter and LinkedIn.
INTERESTED IN GROWING YOUR LAW PRACTICE? DO YOU HAVE AN EXIT STRATEGY? You’ve spent your career advising clients on their exit strategy. What is yours?
We are Business and Estate lawyers with experience in Law Firm Transitions. We are interested in working with San Diego and Orange County Law Firms who specialize in: • ESTATE PLANNING
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It is estimated that over 50% of law practice owners are from the Baby Boomer generation. Of this generation, one is turning 65 every 57 seconds and that trend will continue for the next 17 years! Considering the growing number of attorneys looking to exit their law practices in the next several years, along with the understanding that almost 90% of practice owners do not have a documented exit strategy, the time for legacy and growth opportunities has arrived. As the practices of law and technology collide, opportunities abound for those law firms and attorneys with the foresight to make legacy-focused decisions today.
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Five Steps to Confront Burnout, Addiction And Depression by Link Christin
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here’s no denying it: Lawyers have the highest behavioral impairment rate of any profession. Research has shown it. It is spotlighted in the media, as in a recent New York Times feature on a lawyer who tragically spiraled into addiction behind closed doors. And in August, the American Bar Association National Task Force on Lawyer Well-Being released its recommendations on ways the legal community can address it. The same innate drive and problem-solving skills that make a good lawyer also enable some to present as “highfunctioning,” while they successfully conceal addiction for as long as decades. Meanwhile, as with any chronic, progressive disease, it worsens until the lawyer’s behavior and capabilities deteriorate. The good news is once the problems are acknowledged, our community can join together to help remedy them.
Steps for At-Risk Lawyers To prevent and manage behavioral impairment conditions, lawyers need to know these five steps.
1. Educate yourself on the risks. Many people don’t understand that depression and addiction are scientifically proven diseases requiring attention and treatment; they are not moral failings, character flaws or caused by a lack of self-discipline. Through CLE courses, books, inhouse programs, and articles on and off the web, you can quickly become educated on the origin, symptoms and treatment of these conditions.
2. Find your work-life balance, and protect it. Most lawyers struggle with this, but it is essential to draw boundaries between your job and the rest of your life. Pursuing personal activities, exercise, good nutrition, robust relationships, adequate sleep, relaxation and time away from the 24/7 demands we face is the best preventative measure against the impairments and stress resulting from imbalance.
3. Self-monitor for warning signs. Those in the early stages of addiction, depression or burnout often deny the problem. Pay attention to objective changes in your
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behavior and routines. Ask friends for feedback. Take self-tests. Talk to a therapist. Keeping a journal of daily activities and feelings can be a great reflective tool when evaluating your quality of life and any behavioral changes. Understand that addiction creates an unreliable “private logic” and focus on your actual negative behaviors.
4. Seek professional help if you believe you have a problem. Start by talking to a psychologist, psychiatrist, interventionist, recovery coach, addiction specialist, your lawyer assistance program or someone at a treatment facility. These professionals will arrange a clinical assessment for you. That assessment will also include recommendations for treating your condition. Solutions may range from individual or group therapy to medications to residential treatment.
5. Don’t let fear of professional repercussions keep you from treatment. This is surrendering to the stigma. Getting better requires action—and if you do not proceed, you will lose everything. You may need to take a leave for treatment. You may have back-to-work issues involving your recovery that should be discussed with your firm. It may be that your firm or this profession is not for you and your long-term health. All that matters is that you become well and halt the predictable decline that will occur if you do not confront these matters sooner rather than later. I’ve discussed these exact challenges with the top law firms in the country, and have seen many success stories. The suggestions here are derived from evidence-based practices, and if followed, can create a fulfilling personal life and successful career. n Link Christin is Executive Director of the Legal Professionals Program at Caron Treatment Centers, and works extensively with impaired lawyers through the treatment and recovery process. A former lawyer and firm partner, he also educates and provides training to law firms about these issues. Mr. Christin is also a licensed and board-certified alcohol and drug addiction counselor. Previously published in Attorney at Work.
My goal is to help my clients identify, understand and conquer their business-related legal risk. Gregory M. Clement, Partner BKCG
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Too many business lawyers forget to step back and realize that business owners just want practical, workable solutions to their legal issues.
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“That’s where I come in,” says Gregory Clement, AV-Rated Attorney and Partner at Burkhalter Kessler Clement & George
949.975.7500 l gclement@bkcglaw.com 2020 Main Street, Suite 600 Irvine, California
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