leading the way - Commercial Law League Of America
leading the way - Commercial Law League Of America
leading the way - Commercial Law League Of America
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THE RESOURCE FOR BANKRUPTCY,<br />
COLLECTIONS AND DEBT RECOVERY<br />
d e b t 3<br />
Vol. 20 • Issue No. 3<br />
May/June 2005<br />
IN THIS ISSUE<br />
CARE for <strong>the</strong> Young<br />
Profitability Techniques<br />
Part 2<br />
Turning Prospects<br />
into Clients<br />
Bankruptcy Abuse<br />
Prevention and<br />
Consumer Protection<br />
Act of 2005<br />
What your Clients<br />
Want to Know About <strong>the</strong><br />
Business Provisions<br />
Using Technology<br />
Understanding<br />
Leadership:<br />
The Negative Power<br />
of Dependence<br />
LEADING THE WAY
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY<br />
mission statement<br />
The Mission of <strong>the</strong> <strong>League</strong> is:<br />
• To be <strong>the</strong> pre-eminent source of professional services.<br />
• To promote <strong>the</strong> highest standards of professionalism.<br />
• To foster economic opportunities for its members<br />
in service to <strong>the</strong> credit industry.<br />
objectives<br />
The Objectives of <strong>the</strong> <strong>League</strong> are:<br />
• To elevate <strong>the</strong> standard and improve <strong>the</strong> practice of <strong>Commercial</strong> <strong>Law</strong>.<br />
• To encourage an honorable course of dealing among its members<br />
and in <strong>the</strong> profession at large.<br />
• To promote uniformity of legislation in matters affecting<br />
<strong>Commercial</strong> <strong>Law</strong>.<br />
• To foster among its members a feeling of fraternity and<br />
mutual confidence.<br />
2005-06<br />
SCHEDULE OF MEETINGS<br />
July 13-17, 2005<br />
111th National Convention<br />
Four Seasons Hotel<br />
Toronto, Ontario, Canada<br />
September 15-18, 2005<br />
44th Sou<strong>the</strong>rn Meeting<br />
Hilton Suites, Nashville, TN<br />
Sponsored by <strong>the</strong> Sou<strong>the</strong>rn Region<br />
November 10-13, 2005<br />
85th New York Meeting<br />
Sheraton New York Hotel & Towers<br />
Sponsored by <strong>the</strong> Eastern Region<br />
April 27-30, 2006<br />
76th Chicago Meeting<br />
Westin Hotel, Chicago, Illinois<br />
Sponsored by <strong>the</strong> Midwest Region
CLLA Membership Application—Applicants Must Complete Areas A-C. Please Print or Type Clearly.<br />
A Preferred mailing address ❑ <strong>Of</strong>fice ❑ Home<br />
___________________________________________________________________________________ Date of Birth ____/____/____<br />
Name (Membership is personal. No firm/corporate memberships.)<br />
___________________________________________________________________________________________________________<br />
Firm/Company/<strong>Law</strong> School<br />
___________________________________________________________________________________________________________<br />
Firm/Company/School Address City/State/Zip Code (5 + 4)<br />
___________________________________________________________________________________________________________<br />
Home Address City/State/Zip Code (5 + 4)<br />
____________________________ ____________________________ _____________________________<br />
Work Phone Fax Home Phone<br />
_______________________________________________<br />
E-mail Address<br />
_______________________________________________________<br />
Internet Address (URL)<br />
_______________________________________________________________________________________________________________________<br />
Referred By CLLA Member - OPTIONAL<br />
City/State<br />
Applicant Data (for <strong>League</strong> Records)<br />
Admitted to Bar _______________________________________________________________________________________________<br />
Jurisdiction(s), Bar Number(s) and Date(s)<br />
Graduate/Attendee<br />
of______________________________________________________________________________________________________________________<br />
<strong>Law</strong> School Name<br />
City/State<br />
B<br />
Membership<br />
Basis of Eligibility (check one)<br />
■ <strong>Law</strong>yer - Solo or with Firm<br />
■ <strong>Law</strong>yer - Company<br />
■ Manager - <strong>Law</strong> Firm <strong>Commercial</strong> Department<br />
■ <strong>Law</strong> List/Legal Directory<br />
■ Agency or Bureau Representative (Please call <strong>League</strong> <strong>Of</strong>fice for<br />
supplemental application)<br />
■ Paralegal, Collector, <strong>Of</strong>fice Administrator in member law firm<br />
■ Private Bankruptcy Trustee - Currently serving or have served<br />
within 2 years prior to date of application<br />
■ Public Accountant<br />
■ Equipment Lessor<br />
■ Real Property Lessor<br />
■ Turnaround Manager<br />
■ Banker/Lender<br />
Dues Table (check one)<br />
■ Regular<br />
Dues<br />
U.S., Canadian and International Applicants $245<br />
■ Special “Short Term” Rate<br />
Dues<br />
U.S., Canadian and International Applicants under 31 $130<br />
years of age or admitted to bar under 6 years (4 year limit)<br />
Special Status Eligibility & Rate<br />
If not eligible for o<strong>the</strong>r categories, check one below<br />
Optional Memberships & Contributions<br />
(in addition to dues listed above)<br />
■ Bankruptcy Section $ 80<br />
■ Creditors’ Rights Section $ 50<br />
■ Young Members’ Section $ 35<br />
■ Sustaining Membership $ 25<br />
■ Fund for Public Education $ 30<br />
Dues<br />
■ <strong>Law</strong> Professor/Teacher $ 50<br />
■ Editor, Legal Periodical $ 50<br />
■ <strong>Law</strong> Clerk $ 50<br />
■ <strong>Law</strong> Student $ 10<br />
■ Bankruptcy Judge<br />
Waived<br />
■ U.S.Trustee (not private trustee)<br />
Waived<br />
C I authorize you to charge $_________to my ❑ I have enclosed a check for $___________________<br />
❑ VISA ❑ MasterCard ❑ AMEX ❑ Discover<br />
Account Number__________________________________________________________________ Expiration ________________________<br />
Signature of Applicant ______________________________________________________________ Date ____________________________<br />
Note: make all checks or money orders payable in U.S. dollars and drawn on a U.S. bank to: <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® .The price of an annual subscription<br />
to members of <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® for <strong>the</strong> quarterly <strong>Commercial</strong> <strong>Law</strong> Journal ($12) and an annual subscription to <strong>the</strong> bimonthly <strong>Commercial</strong> <strong>Law</strong><br />
Bulletin ($18) is included in a member’s dues.<br />
All applicants must remit one full year’s dues with application based on eligibility status. Dues are applied as of and prorated to <strong>the</strong> date application is<br />
received.Your name will be published as an Applicant for membership.The period for objections to be filed extends to <strong>the</strong> end of <strong>the</strong> calendar month following <strong>the</strong><br />
date of publication. If no objection is received by that time, you will become a full member of <strong>the</strong> <strong>League</strong> and will be sent your New Member Handbook.<br />
Send first year’s dues and completed application to: <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® , 70 East Lake Street, Suite 630, Chicago, IL 60601<br />
Phone: (312) 781-2000 Fax: (312) 781-2010 E-mail: clla@clla.org Internet Site: www.clla.org<br />
This is <strong>the</strong> official publication of <strong>the</strong> CLLA dues fee schedule as required by <strong>the</strong> CLLA Constitution.<br />
D3
contents<br />
Vol. 20 • Issue No. 3<br />
May/June 2005<br />
REMINDER:<br />
Please pay<br />
National Membership<br />
Dues before<br />
August 1, 2005<br />
(after August 1, 2005<br />
add $25.00)<br />
Debt 3 (ISSN 0888-8000) is published bi-monthly by <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® , 70 E. Lake Street, Suite<br />
630, Chicago, IL 60601; (312) 781-2000. POSTMASTER: Send address changes to Debt 3 70 E. Lake Street, Suite 630,<br />
Chicago, IL 60601. Periodicals postage paid at Chicago, Illinois and additional mailing office.<br />
Copyright ©2005 by <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® . Permission to reprint materials in Debt 3 may be<br />
granted on written request to <strong>the</strong> Editor at <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> offices.<br />
The views and conclusions expressed in articles are those of <strong>the</strong> authors and are not necessarily those of <strong>the</strong><br />
Editorial Board, or of <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® ; nor should any advertisement be considered an<br />
endorsement of <strong>the</strong> product or service involved.<br />
The price of an annual subscription to members of <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong>® ($18.00) is included<br />
in <strong>the</strong>ir dues. Annual subscription to o<strong>the</strong>rs is $65.00 per year in <strong>the</strong> U.S. and Canada, $70.00 elsewhere. Single<br />
copy price is $15.00. Write <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® , 70 E. Lake Street, Suite 630, Chicago, IL 60601;<br />
(312) 781-2000.<br />
small claims 10 Get a Good Night’s Sleep • The Difference Between Execs and Staff •<br />
Outsourcing • Change is Happening • NACM Index Reports •<br />
What You’re Missing •<br />
features 12 Bankruptcy Reform<br />
18 CARE for <strong>the</strong> Young<br />
league views 9 Mary’s Column by Mary Whitmer<br />
56 Viewpoint by David Watson<br />
12<br />
management 22 Profitability Techniques O<strong>the</strong>r Than More Hours<br />
and Higher Rates — Part 2<br />
marketing 26 Ongoing Follow-Up Key to Turning<br />
Prospects into Clients<br />
technology 28 Using Technology to Keep Your Clients Happy<br />
leadership 32 Understanding Leadership: The Negative Power of Dependence<br />
lifestyle 34 Public Toilets, Pews & Passenger Cabins<br />
practice aid 36 Debtor’s Word is His Bond?<br />
111th Annual Convention 38 Nominating Council Report • Candidates • YMS Nominating Report •<br />
Preview Section Proposed Rules of Order • Education Program Preview •<br />
25 and 50-Year Members • National Convention Event Highlight Preview •<br />
league business 46 ABC Report • Board of Governors Action • Creditors’ Rights •<br />
President’s Speech •<br />
member news 52 Newly Admitted Members • Among Our Members • Member Benefits •<br />
10<br />
26 28<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY
Enjoy <strong>the</strong> sophisticated city of Toronto!<br />
This location has something for everyone<br />
… so be sure to bring your children, or<br />
grandchildren for a summer vacation where<br />
<strong>the</strong>y can say <strong>the</strong>y have been to ano<strong>the</strong>r country!<br />
Some of <strong>the</strong> finest shopping and dining are within<br />
a moment’s walk from <strong>the</strong> Fours Seasons<br />
Hotel in <strong>the</strong> heart of <strong>the</strong> Yorkville district. The<br />
Sassafraz restaurant is Toronto’s most vibrant<br />
dining and entertainment experience, and a<br />
celebrity hotspot. This is <strong>the</strong> place to see and be<br />
seen! The Yorkville district is also <strong>the</strong> home of<br />
very elite shopping venues.<br />
CLLA<br />
L E A D I N G T H E W A Y<br />
Register by June 17th<br />
to be included in <strong>the</strong><br />
Roster of Attendees<br />
Toronto’s <strong>the</strong>aters, galleries, film festival venues<br />
and stadiums are all within minutes of <strong>the</strong> hotel.<br />
Located just around <strong>the</strong> corner from <strong>the</strong> Four<br />
Seasons Hotel are <strong>the</strong> Royal Ontario Museum<br />
and a park-like university campus to enjoy. For<br />
sports enthusiasts, an indoor Tennis Club is<br />
only 10 minutes from <strong>the</strong> hotel and <strong>the</strong><br />
Pheasant Run Golf course is about a one<br />
hour drive from <strong>the</strong> hotel. The Hockey Hall<br />
of Fame is also located in Toronto.<br />
If being on <strong>the</strong> water appeals to you and your<br />
family, take a narrated sightseeing cruise of<br />
Toronto’s harbor and islands. Enjoy breathtaking<br />
views of Toronto’s towering skyscrapers from<br />
this unique vantage point. Several of <strong>the</strong> cruises<br />
can take you for a 10-20 minute ride over to <strong>the</strong><br />
Harbor Islands where you and your family can<br />
enjoy <strong>the</strong> garden areas, rent bicycles, enjoy <strong>the</strong><br />
Centreville Amusement Park, cool off in wading<br />
pools or enjoy lunch at one of <strong>the</strong> restaurants<br />
on <strong>the</strong> islands.<br />
If it’s your first time to Canada, Niagara Falls is<br />
only a two hour drive from Toronto! This is a<br />
must-see tourist attraction. The Canadian side<br />
of <strong>the</strong> Falls is surrounded by beautiful flower<br />
gardens. Be sure to take <strong>the</strong> Maid of <strong>the</strong> Mist<br />
boat ride and get even closer to <strong>the</strong> Falls!<br />
Take time to tour Niagara on <strong>the</strong> Lake wine<br />
country and take in a performance at <strong>the</strong><br />
Shaw Festival.<br />
*Photo Credit:Tourism Toronto<br />
111 th National Convention July 13-17, 2005 • Toronto, Canada<br />
Join CLLA for an International Experience in Toronto, Ontario, Canada!
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
th<br />
111 National Convention • July 13-17, 2005 • Toronto, Canada<br />
Preliminary Schedule of Events<br />
(Subject to change)<br />
WEDNESDAY, JULY 13, 2005<br />
Noon – 6:00 p.m. Registration<br />
4:00 p.m. – 5:00 p.m. Young Members’ Section Executive<br />
Council & General Membership<br />
Meeting<br />
5:00 p.m. – 6:00 p.m. VIP Orientation<br />
7:00 p.m. – 10:00 p.m. Opening Night Event<br />
THURSDAY, JULY 14, 2005<br />
7:00 a.m. – 9:00 a.m. Association of <strong>Law</strong> List<br />
Publishers Meeting<br />
8:00 a.m. – 4:00 p.m. Registration<br />
9:00 a.m. – 10:00 a.m. Patron Fund Committee Meeting<br />
9:00 a.m. – 10:00 a.m. Resolutions Committee Meeting<br />
10:00 a.m. – 4:00 p.m. Board of Governors Meeting<br />
4:00 p.m. – 5:00 p.m. Elections Committee Meeting<br />
6:00 p.m. – 7:00 p.m. Nominating Reception<br />
6:00 p.m. – 10:00 p.m. Children’s Program<br />
7:00 p.m. – 10:00 p.m. Nominating Dinner and Debates<br />
(black tie optional)<br />
FRIDAY, JULY 15, 2005<br />
7:00 a.m. – 9:00 a.m. Bankruptcy Section Executive Council<br />
& General Membership Meeting<br />
7:00 a.m. – 9:00 a.m. <strong>Commercial</strong> Collection Agency<br />
Executive Council & General<br />
Membership Meeting<br />
7:00 a.m. – Noon CLLA Elections<br />
7:00 a.m. – Noon YMS Elections<br />
7:00 a.m. – 4:00 p.m. Registration<br />
7:30 a.m. – 9:30 a.m. Continental Breakfast<br />
FRIDAY, JULY 15, 2005 (continued)<br />
8:00 a.m. – 9:00 a.m. Creditors’ Rights Section<br />
General Membership Meeting<br />
8:00 a.m. – 11:30 a.m. Educational Program<br />
1:00 p.m. – 2:00 p.m. YMS Games<br />
1:00 p.m. – 4:00 p.m. Educational Program<br />
2:00 p.m. – 3:00 p.m. National Marketing<br />
Committee Meeting<br />
3:00 p.m. – 4:00 p.m. National Membership<br />
Committee Meeting<br />
4:00 p.m. – 5:00 p.m. Arbitration and Grievance<br />
Committee Meeting<br />
5:00 p.m. – 6:00 p.m. <strong>Commercial</strong> <strong>Law</strong> Foundation<br />
Reception<br />
5:00 p.m. – 7:00 p.m. Wine Tasting Event<br />
(Special ticket required)<br />
6:00 p.m. YMS Family Night Event<br />
(Special ticket required)<br />
SATURDAY, JULY 16, 2005<br />
7:00 a.m. – 8:00 a.m. YMS Fun Run/5K<br />
7:00 a.m. – 11:30 a.m. Registration<br />
8:00 a.m. – 9:00 a.m. YMS Executive Council Meeting<br />
9:00 a.m. – 10:00 a.m. Women’s Spiritual Circle<br />
10:00 a.m.–11:00 a.m. Annual CLLA General<br />
Membership Meeting<br />
11:00 a.m.–1:00 p.m. Annual Brunch<br />
1:00 p.m. – 1:30 p.m. National Nominating Council Meeting<br />
5:30 p.m. – 7:30 p.m. Cocktail Reception<br />
(Honoring Tom and Nancy Hamilton)<br />
SUNDAY, JULY 17, 2005<br />
8:30 a.m. – 11:00 a.m. CLLA Board of Governors Meeting<br />
*Photo Credits:Tourism Toronto
*Photo Credit:Tourism Toronto<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
th<br />
111 National<br />
Convention<br />
July 13-17, 2005<br />
Toronto, Canada<br />
HOTEL<br />
CLLA will be staying at <strong>the</strong> luxurious Four Seasons<br />
Hotel in <strong>the</strong> heart of Toronto. You will enjoy deluxe<br />
accommodations and superb dining. The hotel’s<br />
complimentary health club is open from 6 a.m. – 11<br />
p.m. and offers <strong>the</strong> latest workout equipment and<br />
has massage facilities. The hotel also has a heated<br />
indoor/outdoor pool, sauna and whirlpool.<br />
Special CLLA Convention rates are available by<br />
booking on or before June 21, 2005. Rates are in<br />
effect during <strong>the</strong> convention dates of July 13-17,<br />
2005 as well as six days prior and six days after <strong>the</strong><br />
convention (based upon availability).<br />
• Single/Double Room Rate: $299 Canadian<br />
(plus taxes) = $241.21 US Dollars plus taxes<br />
• Four Seasons Suite Rate: $370 Canadian<br />
(plus taxes) = $298.43 US Dollars plus taxes<br />
• Deluxe Four Seasons Suite Rate: $440 Canadian<br />
(plus taxes) = $354.88 US Dollars plus taxes<br />
For reservations, call <strong>the</strong> Four Seasons Hotel at (416)<br />
964-0411 and be sure to tell <strong>the</strong>m you are with CLLA for<br />
our discounted rate. The hotel can accept a maximum<br />
of 10 reservations for families requiring two rooms.<br />
The first room will be at <strong>the</strong> $299 (CDN rate) and<br />
<strong>the</strong> additional room will be at $250 (CDN) per<br />
night. These rooms will be reserved on a first come,<br />
first serve basis. If you need two rooms, please make<br />
your reservations with <strong>the</strong> hotel as soon as possible.<br />
A deposit equal to one (1) night’s stay is required to<br />
hold each individual reservation. The Four Seasons<br />
Hotel – Toronto honors <strong>America</strong>n Express, Diners<br />
Club, En Route, Eurocard, JCB, MasterCard, and Visa.<br />
If a credit card is not given for deposit, payment of<br />
<strong>the</strong> first night’s deposit must be received by <strong>the</strong> hotel<br />
in order to hold <strong>the</strong> room reservation.<br />
There is no additional charge for children under<br />
twelve years old occupying <strong>the</strong> same room with parents<br />
or guardians (space permitting). Check in time is<br />
3:00 p.m. and check out time is 12:00 p.m. (noon).<br />
Hotel Cancellation Policy: Generally, cancellations<br />
for a hotel room reservation must be received<br />
before 6:00 p.m. on <strong>the</strong> expected date of arrival, and<br />
may differ by arrival date and room type. When making<br />
your reservation, please verify with <strong>the</strong> hotel <strong>the</strong> exact<br />
cancellation policy for your room type and dates you<br />
requested. If cancellation of a guaranteed reservation<br />
is not received by <strong>the</strong> required date, <strong>the</strong> Hotel will<br />
charge for one night’s accommodation.<br />
Please note, <strong>the</strong> hotel is unable to confirm specific<br />
room types but will do its best to accommodate<br />
requests when reservations are made and upon<br />
check in.<br />
BORDER CROSSING<br />
When crossing <strong>the</strong> international border, be sure to<br />
bring ei<strong>the</strong>r a birth certificate or a valid passport<br />
in addition to your driver’s license. If you<br />
are bringing children with you, birth certificates are<br />
still required. If you are traveling with children,<br />
birth certificates are required for each child. Due<br />
to international concern over child abduction, single<br />
parents, grandparents, or guardians traveling<br />
with children often need proof of custody or notarized<br />
letters from <strong>the</strong> o<strong>the</strong>r parent authorizing<br />
travel. (This is in addition to proof of citizenship as<br />
explained above.) Any person under <strong>the</strong> age of 18<br />
and traveling alone should carry a letter from<br />
his/her parent or guardian authorizing <strong>the</strong> trip.<br />
Travelers without such documentation may experience<br />
delays at <strong>the</strong> port of entry or may even be<br />
denied entry if lacking proper identification.<br />
Additional information can be found by visiting <strong>the</strong><br />
website www.travel.state.gov.<br />
Exchange Rate<br />
The currency exchange rate is in your favor. By<br />
heading north, you will get more for your dollar!<br />
There is so much to see and do in Toronto that <strong>the</strong><br />
stretch of <strong>the</strong> dollar will be a plus for your budget.<br />
Tour <strong>the</strong> area and see <strong>the</strong> CN Tower (<strong>the</strong> world’s<br />
largest free-standing structure), Casa Loma Castle,<br />
<strong>the</strong> Sky Dome, and of course <strong>the</strong>re is unlimited<br />
shopping in this cosmopolitan city! Toronto also has<br />
a <strong>the</strong>ater district to keep you busy in <strong>the</strong> evenings.<br />
Some of <strong>the</strong> best and most elite shopping in North<br />
<strong>America</strong> is literally within steps of <strong>the</strong> Four Seasons<br />
Hotel, Toronto. If you make purchases in Canada,<br />
be sure to save receipts. When crossing <strong>the</strong> international<br />
border, you will be required to declare all<br />
purchases, and items may be taxable or you may<br />
qualify for tax refunds.<br />
As of February 25, 2005: $1.00 Canadian = .80 US<br />
Dollar. For up to date current exchange rate go<br />
online to: www.currency-exchange-rates.info.<br />
TRAVEL ARRANGEMENTS<br />
Sixty percent of <strong>the</strong> U.S. population lives within a 90-<br />
minute flight of Pearson International Airport<br />
(Toronto, Canada).Toronto is also approximately only<br />
a 10 hour drive for 60% of <strong>the</strong> U.S. population. It is<br />
<strong>the</strong> perfect destination for being “close to home,” yet<br />
allowing you to enjoy an international flavor.<br />
<strong>Of</strong>ficial Airlines<br />
<strong>America</strong>n Airlines is <strong>the</strong> official airlines for <strong>the</strong> 2005<br />
National Convention. Special low fares are available<br />
by contacting <strong>the</strong> <strong>America</strong>n Airlines Meeting<br />
Services Desk at (800) 433-1790 or your travel<br />
agent. Be sure to mention that you are with <strong>the</strong><br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> and <strong>the</strong> CLLA<br />
Starfile Authorization number 9175AT to get <strong>the</strong><br />
best price. Make your reservations at least 30 days<br />
in advance. NOTE: This discount is not valid for fares<br />
found on <strong>the</strong> Internet. The Meeting Services Desk<br />
phone number listed applies to calls from <strong>the</strong> United<br />
States and Canada. If your trip originates from a different<br />
country, please call your local <strong>America</strong>n Airlines<br />
reservations number but still refer to our Starfile<br />
Authorization number (9175AT).<br />
Rental Car<br />
Car rental is easy, fast and rates are discounted for<br />
CLLA National Convention attendees. Avis is <strong>the</strong><br />
official rental car company for <strong>the</strong> CLLA National<br />
Convention. Special discounted rates are available<br />
by calling Avis directly at (800) 331-1600 to make<br />
a reservation and refer to AWD #B193199. For<br />
more information or to register online, visit<br />
www.avis.com or visit our CLLA website for a<br />
direct link to Avis.<br />
SPECIAL<br />
EVENT<br />
HONORING<br />
TOM & NANCY<br />
HAMILTON<br />
The <strong>Commercial</strong> <strong>Law</strong><br />
<strong>League</strong> of <strong>America</strong><br />
will be honoring Tom and Nancy Hamilton for <strong>the</strong>ir<br />
many years with <strong>the</strong> <strong>League</strong>. Tom joined <strong>the</strong> <strong>League</strong><br />
in 1977 (28 years ago) and has served on <strong>the</strong> Board<br />
of Governors, as <strong>the</strong> Chair of <strong>the</strong> President’s Cup<br />
Committee, and as <strong>the</strong> Chair of <strong>the</strong> Convention Site<br />
Selection Committee. Nancy joined <strong>the</strong> <strong>League</strong> in<br />
1979 (26 years of service) and has been extremely<br />
active in <strong>the</strong> International Conferences. Both Tom<br />
and Nancy have served and continue to serve on a<br />
variety of o<strong>the</strong>r CLLA Committees.<br />
Please join us for a special cocktail reception on<br />
Saturday, July 16, 2005 from 5:30 p.m. - 7:30 p.m. to<br />
celebrate <strong>the</strong> many years of dedicated service Tom<br />
and Nancy have shown to <strong>the</strong> <strong>League</strong>.<br />
OPTIONAL EVENTS<br />
Wine Tasting<br />
Friday, July 15, 5:00 p.m. – 7:00 p.m.<br />
Arrangements are still in <strong>the</strong> planning stages for<br />
this event. As soon as <strong>the</strong>y are determined, <strong>the</strong><br />
information will be listed on <strong>the</strong> CLLA website. A<br />
special ticket will be required to attend this event.<br />
The ticket price is also forthcoming.<br />
YMS Family Night Event<br />
Friday, July 15, 6:00 p.m.<br />
As everyone knows, Canadians love hockey! YMS<br />
has secured space at Gretzky’s restaurant for<br />
dinner. The sports bar/restaurant displays Wayne’s<br />
personal collection of memorabilia from his career<br />
everywhere! The restaurant also features two<br />
satellites and all <strong>the</strong> best televised sporting events<br />
are available to watch. And, of course, <strong>the</strong>y have t-<br />
shirts and o<strong>the</strong>r merchandise available for purchase<br />
at <strong>the</strong> restaurant. Even if you are not a hockey fan,<br />
<strong>the</strong> food is great! Join YMS for this fun event (special<br />
ticket required).<br />
CLLA CONVENTION<br />
ELECTIVE EVENTS<br />
YMS Games<br />
This annual event, sponsored by <strong>the</strong> Young Members’<br />
Section will take place on Friday, July 15 from 1:00<br />
p.m. - 2:00 p.m. Open to all ages, bring your family<br />
and join your colleagues for an hour of play time that<br />
everyone will remember for years to come.<br />
YMS Fun Run/5K<br />
Everyone is welcome to participate in this Saturday<br />
morning event, so whe<strong>the</strong>r you are a serious runner<br />
or a weekend jogger, lace up your shoes and<br />
join in <strong>the</strong> fun! The run will take place on Saturday,<br />
July 16 at 7:00 a.m.<br />
For more details on <strong>the</strong> Four Seasons Hotel,<br />
please visit <strong>the</strong> CLLA website (www.clla.org) for a<br />
direct link to <strong>the</strong> Four Seasons Hotel website.
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
th<br />
111 National Convention<br />
Four Seasons Hotel • Toronto, Canada • July 13-17, 2005<br />
Registration Form<br />
Please type or print clearly. Your badge will be created using this information. Please use one form per member. You may also register online at www.clla.org.<br />
Name<br />
Firm Name<br />
Address<br />
City State Zip<br />
Phone<br />
Fax<br />
Attendee Information<br />
In addition to <strong>the</strong> member registrant listed to <strong>the</strong> left, please<br />
register <strong>the</strong> following individuals:<br />
Spouse (indicate name as you wish it to appear on badge):<br />
_______________________________________________<br />
Children (indicate name as you wish it to appear on badge):<br />
______________________________________Age______<br />
______________________________________Age______<br />
______________________________________Age______<br />
E-mail<br />
❑ Check here if you have a disability and require accommodations to participate fully. CLLA will contact you.<br />
Please note: All attendees must pay a registration fee to receive an entrance badge for events.<br />
I/We plan to attend:<br />
❑ Opening Night Event _____# of Adults ____# of Children ___# of Kosher Meals<br />
❑ Nominating Dinner _____# of Adults ____# of Children 12-21 ___# of Kosher Meals<br />
❑ Annual Brunch<br />
_____# of Adults ____# of Children<br />
Optional Events<br />
Event Date Cost # Tickets Subtotal Participant’s Name(s)<br />
Children’s Program 7/14 $50 ____ $______ List Below<br />
YMS Games 7/15 FREE ____ $ 0.00 _________________________<br />
Wine Tasting Event 7/15 TBD ____ $______ _________________________<br />
YMS Family Night Event (YMS members/non-member adults) 7/15 $29 ____ $______ _________________________<br />
YMS Family Night Event (Children 10 & under) 7/15 $12 ____ $______ _________________________<br />
Fun Run/5k (Non YMS) 7/16 $15 ____ $______ _________________________<br />
Fun Run/5k (YMS members) 7/16 FREE ____ $ 0.00 _________________________<br />
Optional Subtotal<br />
The following optional events will be offered at <strong>the</strong> 111th National Convention:<br />
Children’s Program<br />
The children’s program is open to ages 4 through 12 years old. The<br />
program is offered on Thursday, July 14 from 6 to 10 p.m. The cost is<br />
$50 per child.<br />
Name_________________________________Age______<br />
Name_________________________________Age______<br />
Name_________________________________Age______<br />
$______<br />
registration fees<br />
Adult registrations include <strong>the</strong> Opening Night Event, Continental Breakfast, Nominating<br />
Reception and Dinner, Annual Brunch, and Hamilton Reception. Register by June 17 to be<br />
included in <strong>the</strong> Roster of Attendees.<br />
Registrant Type # of Registrants Subtotal<br />
CLLA Member $450 ___________ $______<br />
Spouse (non-member)<br />
of CLLA member $350 ___________ $______<br />
Registration for 21 and under includes Opening Night Event, Continental Breakfast, and<br />
Annual Brunch. Children ages 12-21 may attend <strong>the</strong> Nominating Dinner for an additional<br />
fee of $75 per child.<br />
Ages 12 – 21 $175 ___________ $______<br />
Ages 8 – 11 $100 ___________ $______<br />
Ages 4-7 $75 ___________ $______<br />
Ages 3 and under FREE ___________ $ 0.00<br />
Ages 12-21<br />
Nominating Dinner $75 ___________ $______<br />
Registration Subtotal<br />
$______<br />
FOR OFFICE USE ONLY<br />
Date______ID#______Type______Check #______Amt. $________Badge______ Cnfrmd______<br />
payment Method<br />
❑ My check or bank draft for $________ is enclosed as full payment of<br />
registration fees. (Make checks payable to CLLA.)<br />
❑ Charge my credit card for $_________<br />
Please check card type: ❑ AmEx ❑ Visa ❑ MasterCard<br />
Required for credit cards:<br />
Card Number: ____________________________________________<br />
Exp. Date: ________________________________________________<br />
Card Holder’s Name: (Please print)____________________________<br />
Signature: _________________________________Date:___________<br />
Mail this form and payment to:<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
36404 Treasury Center<br />
Chicago, IL 60694-6400<br />
Note: If paying by credit card, you may fax this form to (847) 526-3993.<br />
Registration is not complete until payment has been received.<br />
cancellation policy<br />
Cancellation must be submitted in writing. Registration fee refunds will be granted on<br />
<strong>the</strong> following schedule. Cancellation notice received by June 13, 2005 refund less $50<br />
processing fee. Cancellation notice received between June 14, 2005 and July 6, 2005<br />
50% refund. Cancellation notice received after July 6, 2005 no refund.<br />
Questions? Contact <strong>the</strong> <strong>League</strong> <strong>Of</strong>fice at (312) 781-2000.
You can expect<br />
results when<br />
you talk<br />
to leaders<br />
debt 3<br />
readers are <strong>the</strong>ir company’s key decision makers:<br />
82%<br />
74%<br />
89%<br />
are involved in <strong>the</strong> purchasing process and make<br />
<strong>the</strong> final purchasing decisions.<br />
are partner/owner/president/chair/CEOs<br />
of Debt 3 readers have recommended, specified or approved<br />
<strong>the</strong> purchase of products and services, including:<br />
• Computer/office software, e.g. collection, bankruptcy, organizational<br />
• <strong>Law</strong> office automation services<br />
• Legal support services, e.g. skip tracers, auctioneers,<br />
process server services<br />
• <strong>Of</strong>fice supplies and equipment<br />
• Online information services<br />
Source: 2004 Debt 3 Independent Reader Survey<br />
For more information on how your company<br />
can target this exclusive audience, contact:<br />
Bill Spilman, President<br />
Innovative Media Solutions<br />
1134 N. Henderson St., Suite D<br />
Galesburg, IL 61401<br />
Phone: (877) 878-3260 or (309) 342-3211<br />
FAX: (309) 342-3212<br />
E-mail: bill@innovativemediasolutions.com<br />
LEADING THE WAY
about clla<br />
Vol.<br />
20 • No. 3<br />
May/June 2005<br />
meeting notices<br />
111th National Convention<br />
page 3-6<br />
44th Sou<strong>the</strong>rn Meeting<br />
page 17<br />
85th New York Meeting<br />
page 31<br />
editorial staff<br />
Board of Associate Editors<br />
Elliott D. Levin, Chair, Indianapolis, IN<br />
Leonard M. Salter, Chair Emeritus, Boston, MA<br />
David A. Rubin, Vice Chair, Toronto, ON<br />
Manuel Newburger, Vice Chair, Austin, TX<br />
Richard G. Baumann, Los Angeles, CA<br />
<strong>Law</strong>rence C. Brown, Buffalo, NY<br />
Harry W. Greenfield, Cleveland, OH<br />
Nancy Hamilton, Cleveland, OH<br />
Lee M. Mendelson, Atlanta, GA<br />
Manuel Newburger, Austin, TX<br />
David A. Rubin, Toronto, ON<br />
Robert Schatzman, Miami, FL<br />
William C. Sturm, Milwaukee, WI<br />
Stanley Tulchin, Westbury, NY<br />
Editor Emeritus<br />
Leo E. Smith, Chicago, IL<br />
Editor<br />
David R. Watson<br />
Design/Publication Consultants<br />
Newcomb Marketing Solutions<br />
Editing Director<br />
Paige E. Barr<br />
officers and board of governors<br />
President<br />
Mary K. Whitmer, Cleveland, OH<br />
President-Elect<br />
Jerry Myers, Raleigh, NC<br />
Treasurer<br />
Charles R. “Rick” Johanson, III, Birmingham, AL<br />
Recording Secretary<br />
Gary M. Weiner, Springfield, MA<br />
Immediate Past President<br />
Paul I. Mendelson, Memphis, TN<br />
Board Members<br />
John M. Birk, Gainesville, FL<br />
Wanda Borges, Syosset, NY<br />
Robert Caine, Van Nuys, CA<br />
George Eliades, Hopewell, VA<br />
Sidney Friedman, Baltimore, MD<br />
David R. Gamache, St. Louis, MO<br />
Bruce Godwin, Boca Raton, FL<br />
Joel Klein, San Antonio, TX<br />
Robert Levy, Commack, NY<br />
Joseph A. Marino, Clifton, NJ<br />
Louis S. Robin, Longmeadow, MA<br />
Ernest “Rick” Thomas, III, Cincinnati, OH<br />
Executive Vice President<br />
David R. Watson<br />
<strong>the</strong> CLLA mission<br />
To be <strong>the</strong> pre-eminent source<br />
of professional services<br />
To promote <strong>the</strong> highest standards<br />
of professionalism and<br />
To foster economic opportunities<br />
for its members in service<br />
to <strong>the</strong> credit industry<br />
<strong>the</strong> CLLA objectives<br />
To elevate <strong>the</strong> standards and improve<br />
<strong>the</strong> practice of <strong>Commercial</strong> <strong>Law</strong>.<br />
To encourage an honorable course<br />
of dealing among its members and in<br />
<strong>the</strong> profession at large.<br />
To promote uniformity of legislation in<br />
matters affecting <strong>Commercial</strong> <strong>Law</strong>.<br />
<strong>the</strong> vision of DEBT 3<br />
To promote a reading resource along with a<br />
tool kit which will promote and advance <strong>the</strong><br />
recovery of debt, including collections and<br />
bankruptcy, with a primary emphasis on<br />
commercial and a secondary emphasis on<br />
retail so that readers become more successful<br />
as a professional, leader, manager and a person.<br />
To foster among its members a feeling<br />
of fraternity and mutual confidence.<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY<br />
<strong>League</strong> members and o<strong>the</strong>r readers are invited to submit previously unpublished articles on commercial practice or topics relating to<br />
<strong>the</strong> general practice of law. Articles should be submitted electronically via e-mail or by disk. The preferred format is Microsoft Word<br />
or plain text. WordPerfect is accepted but not preferred. All articles will be promptly reviewed. Send articles to clla@clla.org.<br />
Disks or manuscripts can be sent to Editor, Debt 3 , 70 E. Lake Street; Suite 630; Chicago, IL 60601.<br />
The phone is 312-781-2000 or 800-978-2552. The fax number is 312-781-2010.
<strong>Of</strong> Ethics & Leadership<br />
mary’s column<br />
President, <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ®<br />
It said, “Imagine,” in charcoal gray mosaic lettering set<br />
against a sand-colored mosaic background, in a sun,<br />
emitting charcoal rays ever outward. It was framed, a<br />
photograph of <strong>the</strong> sidewalk memorial to John Lennon.<br />
David Watson, who bought it from a street vendor in<br />
New York, gave it to me; a wonderful, inspiring gift. I<br />
took it home and hung it over <strong>the</strong> towel bar in my bathroom.<br />
Every morning when I reach for a towel, I take its<br />
message to heart.<br />
Aim High! Our goal is to be Number One. We can do it!<br />
So, we tried this year to give our members <strong>the</strong> very best<br />
we could: <strong>the</strong> best meetings and business opportunities;<br />
<strong>the</strong> best educational programming through <strong>the</strong><br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> Institute; <strong>the</strong> best magazine,<br />
Debt 3 ; to act as <strong>the</strong> beacon for ethical practice in <strong>the</strong> field<br />
of commercial law; to be <strong>the</strong> most credible voice in<br />
Washington on bankruptcy and commercial issues; to<br />
give our members <strong>the</strong> best service. This is <strong>the</strong> new face of<br />
<strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong>: Positive.<br />
Relentless. Excellent.<br />
Now it is time for me to go. Jerry Myers, <strong>the</strong> new<br />
President, with his style, energy, and sophistication, will<br />
take it from here. He will be a great President, and carry<br />
us forward again. As for me, on <strong>the</strong> occasion of my exit<br />
from office, I ask you to help me imagine. . .<br />
• The greatest staff in <strong>the</strong> world. We have it, here and<br />
now. The CLLA’s ability to compete and stay relevant<br />
is directly proportional to our ability to keep <strong>the</strong> staff<br />
we have. David Watson has energy, drive and an oldfashioned<br />
optimism that carries <strong>the</strong> organization—<br />
and its officers—forward by <strong>the</strong> very force of it. Erica<br />
Henry and Cheryl Palombizio provide brisk, instantaneous<br />
and flawless member service. David Goch is a<br />
wise and thoughtful <strong>League</strong> counsel, and he really<br />
roots for our success. Susanne Dickerson, our<br />
Education Director, works hard to insure that our<br />
education programs are <strong>the</strong> best <strong>the</strong>y can be. Sarah<br />
Jolie provides invaluable assistance to our bankruptcy<br />
section. TSO, our outsource partner, insures our<br />
accounting is organized and accurate, and our conventions<br />
run like clockwork, (actually, better than clockwork).<br />
TSO is a big reason for our success—Dick<br />
Schascheck, Suzanne Spohr, Mary Jo Ritt and LeAnn<br />
Urban are our colleagues and our friends. Special<br />
mention must be made of <strong>the</strong> insight and ability of<br />
Kelly Newcomb and Newcomb Marketing, our publisher,<br />
our marketing coordinator and our leadership<br />
guru. More recently, Paige Barr has joined us as Editor<br />
of Debt 3 . Thank you all for your loyalty, your energy<br />
and your help in our success.<br />
• The best leadership in <strong>the</strong> world. The CLLA has <strong>the</strong><br />
best leaders, ergo, we have <strong>the</strong> best organization. Not<br />
everyone is a natural leader, so we help our leaders<br />
with leadership training. Leadership instruction is <strong>the</strong><br />
one of <strong>the</strong> most important initiatives that <strong>the</strong> <strong>League</strong><br />
has undertaken. It needs to be expanded so that it can<br />
reach younger members with ability, and all leaders<br />
who are new in <strong>the</strong>ir responsibilities. We have learned<br />
that even natural leaders can benefit from <strong>the</strong> insights<br />
and guidance of a good leadership institute.<br />
Now imagine one more thing: <strong>the</strong> best job in <strong>the</strong><br />
world, President of this great organization. Guess<br />
what? The President of <strong>the</strong> CLLA has fun. She goes to<br />
wonderful places, she stays in beautiful accommodations,<br />
she eats in great restaurants. The worst thing that can be<br />
said about this job is that it is hard on your waistline.<br />
Sure, you have responsibilities. You have to think strategically,<br />
but solving <strong>the</strong> problems is an enormous—and<br />
incredibly rewarding—challenge. In <strong>the</strong> end, <strong>the</strong> <strong>League</strong><br />
gave me much, much more than I could ever give back to<br />
<strong>the</strong> <strong>League</strong>. And so, my friends, it is with much regret<br />
that I say, “goodbye.” The <strong>League</strong> has had and will have<br />
many smarter and wiser Presidents, but it will never have<br />
a President who loved you or this organization more<br />
than I.<br />
Mary Whitmer is an<br />
attorney with <strong>the</strong> law firm<br />
of Kohrman Jackson &<br />
Krantz PLL. She can be<br />
reached at 216-736-7255<br />
and via e-mail<br />
at mkw@kjk.com.<br />
IMAGINE<br />
9Debt3 May/June 2005
claims<br />
small<br />
Getagoodnight’s<br />
sleep<br />
The difference between<br />
Do you ever wake up in <strong>the</strong> middle of <strong>the</strong> night concerned that <strong>the</strong> large project, involving several<br />
departments and dozens of staff members, just might not be moving forward at <strong>the</strong> pace it needs to<br />
be? Wouldn’t you love a tool that automatically tracks where everyone is on <strong>the</strong>ir piece of <strong>the</strong> project<br />
and alerts you of bottlenecks. Talk about being able to sleep through <strong>the</strong> night!<br />
You might want to check out a product called Worklenz created by Metier (www.metier.com), a<br />
Washington, D.C. information-technology company. Currently used by Lockheed Martin, BMW,<br />
Northrop Grumman and <strong>the</strong> U.S. Agency for International Development, this product tracks a<br />
computer user’s keystrokes and helps determine whe<strong>the</strong>r <strong>the</strong>y are on schedule with <strong>the</strong>ir segments<br />
of large projects. The program does this in part by collecting data automatically from an employee’s<br />
Outlook, Microsoft Project scheduling file and PeopleSoft timesheets.<br />
If instead you want to make certain that your staff that is on <strong>the</strong> road is actually making all <strong>the</strong> visits<br />
you expect <strong>the</strong>m to, <strong>the</strong>n consider using a GPS system for your personnel. The City of Chicago<br />
recently added global position satellite devices to <strong>the</strong> cell phones and trucks of members of <strong>the</strong><br />
Department of Transportation crews. Employees can be tracked to <strong>the</strong> exact location where <strong>the</strong>y<br />
were assigned and an alert will pop up on <strong>the</strong> computer screens of supervisors and managers at <strong>the</strong><br />
main office when a location or time doesn’t match <strong>the</strong> planned schedule.<br />
execsandstaff<br />
The morale of executives is almost twice as likely to be negatively affected by a lack of open<br />
and honest communication than that of employees. However, having excessive workloads for<br />
extended periods of time is three times more likely to negatively impact employees’ morale than<br />
that of executives.<br />
This is according to a survey conducted in 2004 by <strong>Of</strong>ficeTeam (www.officeteam.com) headquartered<br />
in Menlo Park, Calif. The study looked at responses from 150 executives from <strong>the</strong> 1,000 largest U.S.<br />
companies and 571 employed men and women 18 years of age or older.<br />
Employee morale is most negatively affected by:<br />
Factor Executives Employees<br />
A lack of open, honest communication 52% 30%<br />
The failure to recognize individual achievements 21% 27%<br />
Debt 3 May/June 2005<br />
10<br />
Micromanaging workers 17% 16%<br />
Excessive workloads for extended periods 7% 23%<br />
Don’t know/No answer/None of <strong>the</strong> above 3% 4%
Change<br />
ishappening<br />
Change is happening everyday, every moment, and every where. How we deal<br />
with change is significant.A lot of errors are made, according to Phillip Kotter<br />
<strong>the</strong> author of Leading Change and a management consultant, who in October<br />
of 2001 was ranked <strong>the</strong> number one leadership consultant in <strong>America</strong> based<br />
upon a survey, conducted by 504 of <strong>the</strong> Fortune 1,000 listed corporations.<br />
The most common reasons companies do not respond effectively to shifting<br />
conditions:<br />
1. Allowing too much complacency (no established and reinforced<br />
sense of urgency);<br />
2. Failure to create a sufficiently powerful guiding coalition;<br />
3. Underestimating <strong>the</strong> power of vision (when you cannot describe <strong>the</strong> vision<br />
driving a change initiative in five minutes or less, you are in trouble);<br />
4. Under communicating <strong>the</strong> vision by a factor of 10 (or 100 or even 1,000);<br />
5. Permitting obstacles to block <strong>the</strong> new vision (failure by o<strong>the</strong>rs to overcome<br />
cynicism and conflicts);<br />
6. Failure to create short-term wins (build momentum);<br />
7. Declaring victory too soon (Allows o<strong>the</strong>rs to begin complacency all over again);<br />
8. Neglecting to anchor changes firmly in <strong>the</strong> (corporate) culture.<br />
Outsourcing:<br />
Are customers leaving<br />
and costs rising?<br />
According to research conducted by Gartner (www.gartner.com), about 80 percent<br />
of outsourced customer service endeavors fail to cut costs. Instead, poor<br />
planning and execution have tended to lead to customer defections. This tends<br />
to occur because companies don’t take into account all that <strong>the</strong> customer expects from<br />
<strong>the</strong> customer service experience. As a result, poor service leads to defections by <strong>the</strong> customer<br />
base and ultimately, a diluted brand value.<br />
Four tips from Gartner on how to outsource correctly to meet goals as reported in <strong>the</strong><br />
May/June 2005 Insight magazine are:<br />
1. Identify objectives – Does <strong>the</strong> process really need to be outsourced?<br />
Only processes that are not key to organization competencies should be considered.<br />
2. Map <strong>the</strong> customer experience from start to finish –<br />
Companies considering outsourcing must be ready to dedicate <strong>the</strong> proper resources<br />
to maintain <strong>the</strong> experience even when outsourced.<br />
3. Conduct appropriate pilot testing of an outsourcing program<br />
before entering a long-term agreement – Success should not be measured<br />
only by <strong>the</strong> number of calls made or handled, but by o<strong>the</strong>r considerations,<br />
such as customer satisfaction and service levels.<br />
4. Commit enough time to make <strong>the</strong> relationship work –<br />
Careful management is necessary, especially early on in <strong>the</strong> venture.<br />
claims<br />
small<br />
NACM index<br />
reports continued strong<br />
economic growth<br />
After a strong first quarter, <strong>the</strong> National Association of<br />
Credit Management (NACM) Credit Managers’ Index<br />
(CMI) for April 2005 continues to show growth. The<br />
CMI rose for <strong>the</strong> third straight month to 59.3, strongly<br />
indicating a continued economic expansion, and mirroring<br />
<strong>the</strong> positive economic growth of <strong>the</strong> recent GDP<br />
report as well as better-than-expected reports on personal<br />
income and personal spending released on May 1, 2005.<br />
The CMI manufacturing sector was flat, but <strong>the</strong> services<br />
sector, boosted by a whopping 11-point increase in dollar<br />
collections, rose for <strong>the</strong> third straight month to 60.2, an<br />
overall change of 3.44 percent, indicating accelerating<br />
growth. Both <strong>the</strong> manufacturing and service sectors have<br />
recovered from January’s plunge, but <strong>the</strong>y still remain<br />
below last April’s peak.<br />
Dan North, economist with Euler Hermes ACI, speculates<br />
that this may reflect <strong>the</strong> drag caused by high commodities<br />
prices, especially oil; and that <strong>the</strong>se higher prices, combined<br />
with <strong>the</strong> likelihood of more interest rate hikes from<br />
<strong>the</strong> Fed, may put a drag on <strong>the</strong> economy in <strong>the</strong> coming<br />
months.<br />
What you’re missing<br />
If you aren’t one of <strong>the</strong> 88 collection agencies eligible to<br />
bid for <strong>the</strong> opportunity to be one of possibly three firms<br />
to collect $5.5 billion in delinquent tax debt, <strong>the</strong> following<br />
will tell you what you are missing so you can decide<br />
if it is worth it.<br />
According to <strong>the</strong> request for quote, <strong>the</strong> IRS will grant<br />
only a 12-month contract. Successful firms will be eligible<br />
for three six-month extension options.<br />
The highest commission rate suggested by <strong>the</strong> IRS is 24<br />
percent for taxpayer collections totaling less than<br />
$1,500. There is a sliding scale that reaches 21 percent<br />
for collections more than $10,000, which is <strong>the</strong> highest<br />
collection amount category. The IRS also reserves <strong>the</strong><br />
right to adjust commission under certain conditions.<br />
However, <strong>the</strong> RFQ provided by <strong>the</strong> IRS to bidding<br />
agencies did not identify those conditions.<br />
Commissions will not be paid on:<br />
• amounts collected in excess of an individual’s balance<br />
• amounts received directly by <strong>the</strong> government within<br />
ten days after <strong>the</strong>y transferred <strong>the</strong> account to <strong>the</strong><br />
collection agency<br />
• payments made prior to <strong>the</strong> placement of <strong>the</strong><br />
taxpayer’s account with <strong>the</strong> collection agency.<br />
On June 1, <strong>the</strong> IRS extended <strong>the</strong> deadline by one week<br />
in part due to <strong>the</strong> 151 questions submitted by prospective<br />
vendors.<br />
Debt 3 May/June 2005<br />
11
Bankruptcy<br />
Reform<br />
By Paige Barr<br />
Bankruptcy Abuse<br />
Prevention and Consumer<br />
Protection Act of 2005:<br />
What your Clients Want to Know<br />
About <strong>the</strong> Business Provisions<br />
After many years of debate and consideration,<br />
President Bush signed <strong>the</strong> Bankruptcy Abuse<br />
Prevention and Consumer Protection Act of<br />
2005 into law on April 20, 2005. Straddling <strong>the</strong> line<br />
between your comfort zone and <strong>the</strong> unknown is never a<br />
welcomed feeling. For many attorneys and <strong>the</strong>ir clients <strong>the</strong><br />
Bankruptcy Abuse Prevention and Consumer Protection<br />
Act of 2005 may resemble <strong>the</strong> scary unknown.<br />
Apprehension may exist as <strong>the</strong> Act’s effective date looms<br />
closer. However, <strong>the</strong>re is time to prepare your clients, your<br />
firm and yourself. This article touches on some basic questions<br />
that your clients may have regarding <strong>the</strong> business<br />
sections of <strong>the</strong> new Code. So, what do your clients need or<br />
want to know, now?<br />
Is There Any Change to Reclamation Rights?<br />
Debt 3 May/June 2005<br />
12<br />
Yes. There are several changes to a creditor’s reclamation<br />
rights:<br />
• Reclamation rights are now subject to <strong>the</strong> prior rights of<br />
<strong>the</strong> holders of security interests in <strong>the</strong> goods (or proceeds<br />
of <strong>the</strong> goods).<br />
• A trustee no longer has <strong>the</strong> ability to avoid a warehouseman’s<br />
lien for storage, transportation or o<strong>the</strong>r costs<br />
incident to <strong>the</strong> storage and handling of goods.<br />
• The trustee’s avoidance powers are subject to <strong>the</strong> reclamation<br />
rights of a seller of goods sold to <strong>the</strong> debtor if <strong>the</strong><br />
debtor received <strong>the</strong> goods within 45 days of <strong>the</strong> commencement<br />
of <strong>the</strong> bankruptcy case and <strong>the</strong> seller makes<br />
a written demand for reclamation within 45 days from<br />
<strong>the</strong> debtor’s receipt of <strong>the</strong> goods, or if <strong>the</strong> 45 days passes<br />
after <strong>the</strong> commencement of <strong>the</strong> bankruptcy case, <strong>the</strong>n no<br />
later than 20 days after <strong>the</strong> commencement of <strong>the</strong> bankruptcy<br />
case.
• Failure of a seller to make a written demand for goods<br />
does not extinguish <strong>the</strong> seller’s right to assert an administrative<br />
claim under § 503(b)(9) of <strong>the</strong> new Code for <strong>the</strong><br />
value of goods received by <strong>the</strong> debtor in <strong>the</strong> ordinary<br />
course of business within 20 days of <strong>the</strong> commencement<br />
of <strong>the</strong> case.<br />
Do I Still Need to Prove Industry Standards<br />
in Defeating a Preference Attack?<br />
Not if you don’t want to. The Code allows creditors to<br />
defeat preference attacks by choosing to ei<strong>the</strong>r prove <strong>the</strong><br />
subjective or objective of <strong>the</strong> ordinary course of business<br />
requirement. Thus, <strong>the</strong> creditor may choose to establish<br />
1) that payments were made in <strong>the</strong> ordinary course of<br />
business between <strong>the</strong> debtor and creditor or 2) that<br />
payments were made according to regular industry standards<br />
in order to defeat a preference attack.<br />
Can a Preference Mill Still Trap Creditors into Making<br />
Payments Ra<strong>the</strong>r than Defending Small Preferences?<br />
Yes, but it’s going to be harder and more expensive. Under<br />
<strong>the</strong> new law, actions for less than $10,000 in non-consumer<br />
debt against a non-insider, for <strong>the</strong> most part, must be<br />
commenced only in <strong>the</strong> district court where <strong>the</strong> creditor is<br />
located. The creditor no longer needs to make <strong>the</strong> decision<br />
between defending a small preference action or simply<br />
making payment to avoid wasting time and resources.<br />
When Must an Unexpired Lease of Non-Residential<br />
Real Property be Surrendered?<br />
An unexpired lease of non-residential real property requires<br />
<strong>the</strong> debtor (<strong>the</strong> lessee) to surrender <strong>the</strong> property to <strong>the</strong> lessor<br />
if <strong>the</strong> lease is not assumed or rejected by <strong>the</strong> earlier of 1) 120<br />
days after <strong>the</strong> order for relief or 2) <strong>the</strong> date of entry of an<br />
order confirming <strong>the</strong> plan. Thereafter, <strong>the</strong> court may grant an<br />
extension for 90 days upon a showing of good cause. After<br />
that initial extension however, <strong>the</strong> court must obtain prior<br />
written consent of <strong>the</strong> lessor for each subsequent extension.<br />
bonus is essential to <strong>the</strong> survival of <strong>the</strong> debtor’s business; and<br />
3) <strong>the</strong> amount paid does not go beyond a cap provided by <strong>the</strong><br />
statute. The compensation must not be greater than ten times<br />
that given to non-management employees during <strong>the</strong> same<br />
year. If that measuring stick does not exist, <strong>the</strong>n <strong>the</strong> amount<br />
cannot be greater than 25 percent of any transfer made in <strong>the</strong><br />
year before <strong>the</strong> year in which <strong>the</strong> bonus was given.<br />
Fur<strong>the</strong>rmore, severance payments are prohibited to insiders<br />
unless <strong>the</strong> payment is part of a program that is generally<br />
applicable to all full-time employees and <strong>the</strong> amount is not<br />
greater than ten times <strong>the</strong> amount of severance pay given to<br />
non-management employees that year.<br />
Are Committee Members Entitled to Administrative<br />
Expense Claims for Professional Services?<br />
No. The Act expressly excludes fees for professional services<br />
rendered to committee members in connection with <strong>the</strong>ir<br />
service on <strong>the</strong> committee as administrative expenses.<br />
However, professional services expenses incurred by <strong>the</strong><br />
committee itself do qualify as administrative expenses.<br />
As a Small Business Creditor Do I Still Have Zero<br />
Chance of Serving on <strong>the</strong> Committee of Creditors?<br />
No. Under <strong>the</strong> new law, after notice and hearing <strong>the</strong> court<br />
may direct <strong>the</strong> trustee to expand <strong>the</strong> membership of a<br />
committee to ensure adequate representation of creditors.<br />
The court must determine that as a creditor you have claims<br />
that comprise a large and disproportionate amount of your<br />
annual gross revenue.<br />
Are There Any Changes that Affect <strong>the</strong> Modification<br />
of Chapter 11 Plans?<br />
Yes. A modified plan can only become <strong>the</strong> plan after <strong>the</strong>re<br />
has been disclosure (under § 1125) as <strong>the</strong> court may direct,<br />
notice and a hearing and <strong>the</strong> modification is approved.<br />
How are Small Business Bankruptcies Affected?<br />
Bankruptcy<br />
Reform<br />
(continued from page 12)<br />
Severence payments<br />
are prohibited to<br />
insiders unless <strong>the</strong><br />
payment is part<br />
of a program that<br />
is generally<br />
applicable to all<br />
full-time employees<br />
and <strong>the</strong> amount is<br />
not greater than<br />
ten times <strong>the</strong><br />
amount of<br />
severance pay<br />
given to nonmanagment<br />
employees that year.<br />
Is There a Cap on Damages for <strong>the</strong><br />
Rejection of a Previously Assumed Lease?<br />
Yes. There is a cap on damages for <strong>the</strong> rejection of a previously<br />
assumed non-residential real property lease. The cap<br />
is equal to <strong>the</strong> amount of all monetary obligations due two<br />
years after <strong>the</strong> later of <strong>the</strong> rejection date or <strong>the</strong> date <strong>the</strong><br />
premises were actually surrendered. A reduction or setoff is<br />
only allowed for sums actually received or to be received<br />
from an entity o<strong>the</strong>r than <strong>the</strong> debtor.<br />
Are <strong>the</strong> Executives Still Allowed to Escape with a<br />
Highly Disproportionate Bonus or Severance Payment<br />
When <strong>the</strong> Company Goes into Bankruptcy?<br />
Not exactly. Bonuses to insiders are prohibited unless <strong>the</strong><br />
court can find (based upon <strong>the</strong> evidence in <strong>the</strong> record) three<br />
elements: 1) <strong>the</strong> bonus is essential to retention of <strong>the</strong><br />
employee because he has a bona fide job offer from ano<strong>the</strong>r<br />
entity at <strong>the</strong> same or higher rate of compensation; 2) <strong>the</strong><br />
A small business case is a Chapter 11 filed by a small<br />
business debtor. A small business debtor is defined as one<br />
engaged in commercial or business activities (except <strong>the</strong><br />
business of owning or operating real property) that has<br />
aggregate non-contingent, liquidated debt of not more than<br />
$2 million as of <strong>the</strong> date of <strong>the</strong> order for relief, provided that<br />
no creditors’ committee is active.<br />
Small business debtors are now required to file periodic<br />
financial and o<strong>the</strong>r reports containing:<br />
• The debtor’s profitability;<br />
• Reasonable approximations of projected cash receipts and<br />
disbursements over a reasonable period;<br />
• Comparisons of actual receipts and disbursements to<br />
those projected; and<br />
(continued on page 14)<br />
Debt 3 May/June 2005<br />
13
Debt 3 May/June 2005<br />
14<br />
Bankruptcy<br />
Reform<br />
(continued from page 13)<br />
The courts even<br />
have latitude<br />
to completely<br />
dispense with <strong>the</strong><br />
disclosure statement<br />
requirement if<br />
<strong>the</strong> debtor is<br />
classified as a<br />
small business<br />
and <strong>the</strong> plan itself<br />
provides adequate<br />
information.<br />
• Whe<strong>the</strong>r <strong>the</strong> debtor is in compliance with all post-petition<br />
requirements, including timely filing tax returns and<br />
o<strong>the</strong>r government filings and payment of taxes and o<strong>the</strong>r<br />
administrative expenses.<br />
Fur<strong>the</strong>rmore, if <strong>the</strong> debtor is not making required government<br />
filings or payments when due, <strong>the</strong> debtor must<br />
identify in its report its failures and how, at what cost, and<br />
when <strong>the</strong> debtor intends to fix <strong>the</strong>m.<br />
Does <strong>the</strong> Act Cut Small Businesses Any Breaks?<br />
Yes. The courts are now directed to consider <strong>the</strong> complexity<br />
of <strong>the</strong> case, <strong>the</strong> benefit of additional information to creditors<br />
and o<strong>the</strong>r parties in interest, and <strong>the</strong> cost associated with providing<br />
any additional information in <strong>the</strong> debtor’s disclosure<br />
statement. The courts even have latitude to completely dispense<br />
with <strong>the</strong> disclosure statement requirement if <strong>the</strong> debtor<br />
is classified as a small business and <strong>the</strong> plan itself provides<br />
adequate information.<br />
Are There Any New Requirements<br />
for Small Businesses?<br />
Yes. Under <strong>the</strong> Act a debtor must:<br />
• Attach to its petition its most recent balance sheet, statement<br />
of operations, cash flow statement and state and<br />
federal income tax return or a statement, under <strong>the</strong><br />
penalty of perjury, that no such documents have been<br />
prepared or filed;<br />
• Attend meetings scheduled by <strong>the</strong> court or <strong>the</strong> US<br />
Trustee, unless <strong>the</strong> court waives <strong>the</strong> requirement for<br />
extraordinary circumstances;<br />
• Timely file schedules and statement of financial affairs;<br />
• File all post-petition financial or o<strong>the</strong>r reports required by<br />
<strong>the</strong> Bankruptcy Rules or local rules;<br />
• Maintain insurance;<br />
• Timely file tax returns and timely pay all taxes; and<br />
• Allow <strong>the</strong> US Trustee or a designated representative to<br />
inspect <strong>the</strong> debtor’s business premises, book and records<br />
on reasonable notice.<br />
Is <strong>the</strong> Period of Time for a Small Business Debtor<br />
to File and Confirm a Plan Modified?<br />
Yes. The debtor shall have an exclusive 180<br />
day period to file a plan following <strong>the</strong><br />
order for relief. However <strong>the</strong> period<br />
may be extended or <strong>the</strong> court for cause<br />
may order o<strong>the</strong>rwise. Fur<strong>the</strong>rmore,<br />
<strong>the</strong> debtor must file a plan and a disclosure<br />
statement within 300 days of<br />
<strong>the</strong> order for relief. The court can only<br />
extend <strong>the</strong>se periods (<strong>the</strong> 180-day period<br />
and <strong>the</strong> 300-day period) if <strong>the</strong> debtor<br />
demonstrates by a preponderance of <strong>the</strong> evidence<br />
that it is more likely than not that <strong>the</strong><br />
court will confirm a plan within a reasonable period<br />
of time, a new deadline is imposed at <strong>the</strong> time <strong>the</strong> extension<br />
is granted, and <strong>the</strong> order is signed prior to <strong>the</strong> expiration of<br />
<strong>the</strong> existing deadline.<br />
Are There Any Provisions Meant<br />
to Target Serial Filers?<br />
Yes. Under § 441, <strong>the</strong> automatic stay does not apply in<br />
cases where <strong>the</strong> debtor:<br />
• Is a debtor in a small business case pending at <strong>the</strong> time<br />
<strong>the</strong> new petition is filed;<br />
• Was a debtor in a small business case that was dismissed<br />
by an order that became final in <strong>the</strong> two-year period<br />
ending on <strong>the</strong> commencement of <strong>the</strong> current bankruptcy<br />
case;<br />
• Was a debtor in a small business case in which a plan was<br />
confirmed or dismissed within two years of <strong>the</strong> filing of<br />
a new case; or<br />
• Is an entity that acquired substantially all <strong>the</strong> assets or<br />
business of a small business debtor as described above,<br />
unless <strong>the</strong> entity can establish that it acquired substantially<br />
all of such assets or such business in good faith.<br />
However, <strong>the</strong>se provisions barring application of <strong>the</strong> automatic<br />
stay do not apply if <strong>the</strong>re was no collusion between<br />
<strong>the</strong> debtor and <strong>the</strong> petitioning creditors or if <strong>the</strong> debtor can<br />
prove 1) <strong>the</strong> filing resulted from circumstances beyond <strong>the</strong><br />
debtor’s control not foreseeable at <strong>the</strong> time <strong>the</strong> case was<br />
filed and 2) it is more likely than not that <strong>the</strong> debtor will<br />
confirm a feasible plan, but not a liquidating plan, within<br />
a reasonable period of time.<br />
Are Status Conferences Still Discretionary?<br />
No. Status conferences are now mandatory as necessary to<br />
fur<strong>the</strong>r <strong>the</strong> expeditious and economical resolution of <strong>the</strong><br />
case. Notably, while this provision is contained in <strong>the</strong> small<br />
business debtor provisions, it is applicable to all debtors.<br />
Do <strong>the</strong> Grounds Remain <strong>the</strong> Same<br />
for Dismissal or Conversion of a Case?<br />
No. This provision also falls within <strong>the</strong> small business<br />
debtors provisions; however it is applicable to all debtors.<br />
Absent unusual circumstances adverse to <strong>the</strong> best interest of<br />
creditors of <strong>the</strong> estate, <strong>the</strong> court shall convert or dismiss a<br />
case if <strong>the</strong> movant establishes cause. The elements of cause<br />
are:<br />
• Substantial or continuing loss or diminution to <strong>the</strong> estate<br />
and <strong>the</strong> absence of a reasonable likelihood of rehabilitation;<br />
• Gross mismanagement;<br />
• Failure to maintain insurance;<br />
• Unauthorized use of cash collateral;<br />
• Failure to comply with <strong>the</strong> reporting requirements;<br />
• Failure to attend <strong>the</strong> 341 meeting of creditors or a Rule<br />
2004 exam;<br />
• Failure to timely provide information or attend meetings<br />
with <strong>the</strong> US Trustee;<br />
• Failure to timely file tax returns or pay taxes;<br />
(continued on page 16)
The Bankruptcy Abuse Prevention<br />
and Consumer Protection Act of 2005<br />
Public <strong>Law</strong> No. 109-8 • April 20, 2005<br />
Effective Date and Exceptions to <strong>the</strong> General Effective Date<br />
Prepared by Ca<strong>the</strong>rine E. Vance, Development Specialists, Inc.<br />
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (<strong>the</strong> “Act”) was signed into law on April 20, 2005. The<br />
Act provides, at Section 1501, a general effective date of 180 days from <strong>the</strong> date of enactment. Section 1501 fur<strong>the</strong>r provides that<br />
<strong>the</strong> Act’s amendments are applicable only to cases filed on or after <strong>the</strong> effective date.<br />
The following is a summary of <strong>the</strong> provisions of <strong>the</strong> Act for which <strong>the</strong>re is an exception to <strong>the</strong> general effective date.<br />
• Sections 308, 322 and 330, all relating to matters<br />
involving <strong>the</strong> homestead exemption, are<br />
effective on <strong>the</strong> date of enactment, as provided<br />
for in Section 1501(b)(2).<br />
• Section 324, concerning <strong>the</strong> district courts’<br />
exclusive jurisdiction over matters pertaining to<br />
professionals employed in bankruptcy cases,<br />
applies to cases filed after <strong>the</strong> date of enactment.<br />
• Section 325, addressing bankruptcy filing fees,<br />
is effective for <strong>the</strong> two year period beginning on<br />
<strong>the</strong> date of enactment. Only subsections (b)<br />
and (c) of Section 325 are governed by <strong>the</strong><br />
Section’s effective date. These deal with <strong>the</strong><br />
U.S. trustee system fund and <strong>the</strong> collection and<br />
deposit of miscellaneous bankruptcy fees. The<br />
Section’s amendment to <strong>the</strong> fees for commencing<br />
cases under chapters 7, 11 and 13 are governed<br />
by Section 1501’s general effective date.<br />
• Section 434, which sets forth specific reporting<br />
requirements by small business debtors in chapter<br />
11, takes effect “60 days after <strong>the</strong> date on<br />
which rules are prescribed under [28 U.S.C.<br />
2075] to establish forms to be used to comply”<br />
with <strong>the</strong> reporting requirements. Although <strong>the</strong><br />
Advisory Committee on Bankruptcy Rules of<br />
<strong>the</strong> Judicial Conference is required to propose<br />
such forms for adoption under Section 435 (in<br />
accordance, under <strong>the</strong> Act, with 28 U.S.C. §<br />
2073), no specific timeframe has been set forth<br />
for doing so.<br />
• Section 601, requiring <strong>the</strong> compilation and<br />
reporting of various data in consumer<br />
bankruptcies, is not effective until 18 months<br />
from <strong>the</strong> date of enactment.<br />
• Section 603, requiring random audits<br />
of individual chapter 7 and 13 cases, takes effect<br />
18 months from <strong>the</strong> date of enactment. This<br />
includes <strong>the</strong> Section’s language adding as a<br />
ground for revocation of discharge <strong>the</strong> debtor’s<br />
failure to satisfactorily explain material misstatements<br />
discovered in a random audit or <strong>the</strong><br />
failure to provide information and records<br />
requested in conjunction with an audit.<br />
• Section 1001, permanently reenacting <strong>the</strong> provisions<br />
of chapter 12, is effective July 1, 2005.<br />
• Section 1213, overruling <strong>the</strong> Deprizio rule,<br />
applies to any case that is pending or commenced<br />
on or after <strong>the</strong> date of enactment.<br />
• Section 1221, which requires that transfers<br />
made by nonprofit debtors comply with<br />
applicable nonbankruptcy law, applies to cases<br />
pending or commenced on or after <strong>the</strong> date of<br />
enactment. However, before confirming a<br />
chapter 11 plan, <strong>the</strong> court must consider<br />
whe<strong>the</strong>r <strong>the</strong> provisions of Section 1221 would<br />
substantially affect <strong>the</strong> rights of a party in interest<br />
who first acquired rights with respect to <strong>the</strong><br />
debtor after <strong>the</strong> date of <strong>the</strong> petition.<br />
• Section 1223, providing for additional bankruptcy<br />
judgeships, is effective on <strong>the</strong> date of<br />
enactment.<br />
• Section 1234, amending provisions of § 303<br />
and involuntary cases, is effective on <strong>the</strong> date of<br />
enactment and applies to cases commenced<br />
before, on or after that date.<br />
• Sections 1301 through 1306 make various<br />
amendments to <strong>the</strong> Truth in Lending Act and<br />
require <strong>the</strong> Board of Governors for <strong>the</strong> Federal<br />
Reserve System, inter alia, to promulgate implementing<br />
regulations. Each of <strong>the</strong>se sections is<br />
effective upon <strong>the</strong> later of 1) 12 months from<br />
<strong>the</strong> date of enactment, or 2) 12 months from<br />
<strong>the</strong> publication of <strong>the</strong> Board’s final regulations,<br />
except Section 1301, which is effective upon<br />
<strong>the</strong> later of 1) 18 months from <strong>the</strong> date of<br />
enactment, or 2) 12 months from <strong>the</strong> publication<br />
of <strong>the</strong> Board’s final regulations. However,<br />
it does not appear that <strong>the</strong> Board is required to<br />
undertake its duties under <strong>the</strong>se Sections<br />
by any specified date.<br />
• Section 1401, which increases <strong>the</strong> cap on <strong>the</strong><br />
wage priority to $10,000 and expands <strong>the</strong> lookback<br />
period from 90 to 180 days, is effective on<br />
<strong>the</strong> date of enactment, but is applicable only to<br />
cases filed on or afterthat date.<br />
• Section 1402 expands <strong>the</strong> look-back period for<br />
fraudulent transfers from one to two years and<br />
adds language to § 548 to allow avoidance of<br />
certain transfers to or for <strong>the</strong> benefit of insiders<br />
under employment contracts not in <strong>the</strong> ordinary<br />
course of business. The look-back expansion<br />
would apply only to casesfiled one year<br />
after <strong>the</strong> date of enactment. Avoidability of <strong>the</strong><br />
insider transfers would be effective on <strong>the</strong> date<br />
of enactment and applicable to cases filed on or<br />
after <strong>the</strong>date of enactment.<br />
• Section 1403, requiring reinstatement of retiree<br />
benefit plans under certain circumstances, is<br />
effective on <strong>the</strong> date of enactment, but applies<br />
only to cases filed on or after <strong>the</strong> date of enactment.<br />
• Section 1404 amends § 523(a)(19), added<br />
by Sarbanes-Oxley in 2002, which excepts from<br />
discharge certain debts relating to securities<br />
fraud, but <strong>the</strong> effective date of this amendment<br />
is not clear. Section 1404 makes <strong>the</strong> amendment<br />
retroactively effective to July 30, 2002,<br />
<strong>the</strong> date of enactment of Sarbanes-Oxley.<br />
Under Section 1406, which concerns <strong>the</strong> effective<br />
dates for <strong>the</strong> Sections within Title XIV,<br />
Section 1404’s effective date would be <strong>the</strong> date<br />
of its own enactment, applicable to cases filed<br />
on or after that date.<br />
• Section 1405, which requires that <strong>the</strong> U.S.<br />
trustee move for <strong>the</strong> appointment of a trustee<br />
where <strong>the</strong>re are reasonable grounds to suspect<br />
fraud, dishonesty or criminal conduct on <strong>the</strong><br />
part of certain corporate officials, is effective on<br />
<strong>the</strong> date of enactment, applicable to cases filed<br />
on or after that date.<br />
Debt 3 May/June 2005<br />
15
Bankruptcy<br />
Reform<br />
(continued from page 14)<br />
In determining fee<br />
awards a court will<br />
also consider if<br />
<strong>the</strong> professional<br />
person in question<br />
is board certified or<br />
has o<strong>the</strong>rwise<br />
demonstrated skill<br />
and experience in<br />
<strong>the</strong> bankruptcy field.<br />
• Failure to file a plan or disclosure statement or to confirm<br />
a plan within <strong>the</strong> time fixed by statute or <strong>the</strong> court;<br />
• Failure to pay any fees or charges;<br />
• Revocation of an order of confirmation under § 1144;<br />
• Inability to effectuate substantial consummation of a<br />
plan;<br />
• Material default under a confirmed plan;<br />
• Termination of a confirmed plan by reason of a condition<br />
of <strong>the</strong> plan; and<br />
• Failure of <strong>the</strong> debtor to pay a domestic support obligation<br />
first payable after <strong>the</strong> petition date.<br />
If grounds exist for conversion or dismissal of a case, but <strong>the</strong><br />
court determines that a trustee or examiner appointment is<br />
in <strong>the</strong> best interest of creditors, <strong>the</strong>n <strong>the</strong> court should grant<br />
relief through <strong>the</strong> appointment.<br />
Are Professional Fees Affected?<br />
Yes. In determining fee awards a court will also consider if<br />
<strong>the</strong> professional person in question is board certified or has<br />
o<strong>the</strong>rwise demonstrated skill and experience in <strong>the</strong><br />
bankruptcy field. Fur<strong>the</strong>rmore, creditors’ committees may<br />
now obtain <strong>the</strong> services of a professional person on any<br />
reasonable terms of employment, including a fixed or<br />
percentage fee basis. This percentage fee basis is in addition<br />
to <strong>the</strong> existing conditions of retainers, hourly basis or<br />
contingent fee basis.<br />
When Does All of this Affect Me?<br />
The general effective date is 180 days from <strong>the</strong> date of<br />
enactment. Only cases filed on or after <strong>the</strong> effective date are<br />
affected. However, <strong>the</strong>re are some exceptions. See page 15<br />
for a detailed list of sections and <strong>the</strong>ir effective dates.<br />
This article only touches on some key points that may be<br />
of interest to your clients. For a more in depth discussion<br />
of <strong>the</strong> changes to <strong>the</strong> Code a wonderful resource is <strong>the</strong><br />
materials prepared by Judith Greenstone Miller, Cathy<br />
Vance, Judge Wedoff, and Jay Welford which are available<br />
at www.clla.org.<br />
Paige Barr is an associate attorney at Kenneth B. Moll &<br />
Associates, Ltd. in Chicago, Illinois. She can be reached at<br />
(312) 558-6444 or via email at peb@kbmoll.com.<br />
Have an ethics question?<br />
We’re here.<br />
Debt 3 May/June 2005<br />
16<br />
Concerned about a potential<br />
conflict of interest?<br />
We can help.<br />
Want to know more about<br />
<strong>the</strong> CLLA’s Code of<br />
Professional Conduct?<br />
Let us assist you.<br />
Want to discuss any of <strong>the</strong> above<br />
in a completely<br />
confidential manner?<br />
We have<br />
<strong>the</strong> answer.<br />
The CLLA is pleased to announce a unique and worthwhile member benefit.<br />
Available exclusively to CLLA members, <strong>the</strong> CLLA Ethics Panel is here to assist<br />
in answering your ethics questions. The Ethics Panel will have trained duty<br />
officers available to provide prompt, professional and confidential advice.<br />
CLLA members may contact <strong>the</strong> Ethics Panel to discuss ethical questions<br />
or issues related to <strong>the</strong>ir practice or business, including state ethics rules<br />
and <strong>League</strong> rules.<br />
In our effort to continue to provide unparalleled value for your membership<br />
dollar, this outstanding service is provided at no cost to CLLA members.<br />
To learn more and access <strong>the</strong> current list of duty officers,<br />
log on to members section at www.clla.org<br />
Not a member of <strong>the</strong> CLLA yet?<br />
Become a member at www.clla.org.<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY
44th<br />
Sou<strong>the</strong>rn<br />
Meeting<br />
September 15-18, 2005<br />
CLLA<br />
L E A D I N G T H E W A Y<br />
N A S H V I L L E<br />
The land of Opry-tunity!<br />
Join us in Nashville… home to <strong>America</strong>’s music for over 35 years!<br />
You will head home singing a happy tune after attending outstanding<br />
educational sessions and enjoying a variety of networking opportunities<br />
at <strong>the</strong> 44th Sou<strong>the</strong>rn Meeting.<br />
There is plenty to do in Nashville… from visiting <strong>the</strong> legendary Grand Ole<br />
Opry to shopping or dining at <strong>the</strong> new Opry Mills Mall! Enjoy a dinner<br />
at <strong>the</strong> Gibson Bluegrass Showcase, or dine and play at Jillian’s!<br />
Watch <strong>the</strong> CLLA website for updates as <strong>the</strong>y<br />
become available. www.clla.org<br />
For more information<br />
www.musiccityusa.com<br />
photo credits: Nashville Convention & Visitors Bureau<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY<br />
70 E. Lake Street, Suite 630 • Chicago, IL 60601 • 312.781.2000 • www.clla.org
CARE<br />
for <strong>the</strong> Young<br />
By Hon. John C. Ninfo, II<br />
There are more than 1.5 million bankruptcies filed each year in this country. What is more alarming is that in<br />
<strong>the</strong> last ten years, <strong>the</strong> average credit card debt, a major cause of those bankruptcies, is up 152 percent and<br />
bankruptcy filings among young people between <strong>the</strong> ages of 18 and 25 have increased 96 percent. Dr. Robert<br />
Manning, an international expert on consumer credit and <strong>the</strong> author of The Credit Card Nation recently estimated<br />
that between 7 percent and 10 percent of college students drop out of school because of debt problems.<br />
For bankruptcy and credit professionals who deal with <strong>the</strong> consequences of credit abuse on a daily basis, and believe that<br />
<strong>the</strong> problem is here to stay, <strong>the</strong>re is a refreshing, innovative and personally satisfying <strong>way</strong> to get involved and help prevent<br />
this growing problem.<br />
The Credit Abuse Resistance Education (CARE) Program, which makes bankruptcy professionals available nationwide to high<br />
schools and colleges, is designed to help students avoid becoming one of <strong>the</strong>se statistics or suffering some of <strong>the</strong> many o<strong>the</strong>r<br />
increasingly severe and numerous consequences experienced by young people who have abused credit cards. These o<strong>the</strong>r consequences<br />
include being turned down for student loans, admission to graduate school, jobs, apartments and car loans.<br />
Debt 3 May/June 2005<br />
18<br />
In Rochester, New York, where <strong>the</strong> CARE Program was founded in November 2002, it has achieved a critical mass, making<br />
presentations in over 20 high schools and five colleges annually. As a result of <strong>the</strong> caring, interest and enthusiasm of so many<br />
members of <strong>the</strong> bankruptcy community, as of April 2005, CARE was being presented or developed in parts of 25 states.
The CARE Program has three components: a live presentation,<br />
handouts and a Web site. From <strong>the</strong>se, students can<br />
learn about:<br />
• <strong>the</strong> “true costs” of using credit cards at 18 percent to<br />
24 percent interest<br />
• how difficult it is to repay credit card debt incurred to<br />
“buy stuff” and “do things”<br />
• <strong>the</strong> consequences of financial problems<br />
• <strong>the</strong> difference between “maintaining” debt (making<br />
minimum monthly payments) and “affording” debt<br />
(paying off balances each month or within a reasonable<br />
time)<br />
• <strong>the</strong> benefits of living a credit card debt-free life<br />
• realistic budgeting that distinguishes between “wants”<br />
and “needs”<br />
• <strong>the</strong> importance of having savings for life’s inevitable<br />
emergencies<br />
On <strong>the</strong> CARE Program Web site “What are People Saying”<br />
link, you can read about <strong>the</strong> many positive things that educators,<br />
students and <strong>the</strong> public have had to say about <strong>the</strong><br />
CARE Program. In her November 18, 2004 nationally<br />
syndicated column in <strong>the</strong> Washington Post, Michelle<br />
Singletary said, <strong>the</strong> idea is to:<br />
[S]end a bankruptcy professional - judges, attorneys<br />
and trustees (<strong>the</strong> folks who handle <strong>the</strong> administration<br />
of bankruptcy cases) - into high schools<br />
and colleges all over <strong>the</strong> country to share <strong>the</strong>ir personal<br />
experiences in dealing with people who have<br />
filed for bankruptcy protection. What a brilliant<br />
idea. Who better to counsel young people about<br />
<strong>the</strong> perils of overspending than <strong>the</strong> professionals<br />
who have to deal with <strong>the</strong> aftermath? Look, if you<br />
are responsible for <strong>the</strong> education of high school or<br />
college students and you care about <strong>the</strong> <strong>way</strong> credit<br />
card debt and consumerism could affect <strong>the</strong>ir<br />
financial future, contact CARE.<br />
<strong>the</strong> CARE Program can and will affect behavioral<br />
change when it is most important - before young<br />
people confront <strong>the</strong> possibility of filing for personal<br />
bankruptcy.<br />
The many members of <strong>the</strong> bankruptcy community, judges,<br />
trustees, attorneys and court staff members, who have<br />
become a part of <strong>the</strong> CARE Family because <strong>the</strong>y wanted to<br />
be a part of <strong>the</strong> solution, ra<strong>the</strong>r than just having to deal<br />
with <strong>the</strong> problem after it is too late, have uniformly<br />
expressed a great sense of satisfaction in being a part of this<br />
important community outreach program where <strong>the</strong>y feel<br />
that <strong>the</strong>y are making a real difference for <strong>the</strong> young people<br />
in <strong>the</strong>ir community.<br />
Alison Scott, Community Outreach Coordinator with <strong>the</strong><br />
Boleman <strong>Law</strong> Firm, is one of <strong>the</strong> members of <strong>the</strong> Richmond,<br />
Va. CARE Program. She recently remarked, “After 22 years<br />
in this business, it is finally great to do something proactive<br />
ra<strong>the</strong>r than reactive.” Lori Simpson, with Bishop, Daneman<br />
& Simpson in Baltimore, expressed her feelings this <strong>way</strong>, “I<br />
have truly enjoyed my experience as a CARE presenter. We<br />
are teaching <strong>the</strong> kids something that will stay with <strong>the</strong>m for<br />
<strong>the</strong> rest of <strong>the</strong>ir lives. The proper and intelligent use of credit<br />
is fundamental to surviving in today’s society.”<br />
Mark Neal, an Assistant United States Trustee in Baltimore<br />
adds, “As an Assistant U.S. Trustee, I routinely see people in<br />
severe financial distress. The CARE Program gives me <strong>the</strong><br />
opportunity to use my bankruptcy experience to help prevent<br />
such unfortunate situations in <strong>the</strong> future. It’s a wonderful<br />
experience to share information and real-life stories that<br />
not only capture <strong>the</strong> students’ attention but also provide useful<br />
guidance for <strong>the</strong>m as <strong>the</strong>y enter adulthood.”<br />
CARE<br />
I have truly enjoyed my experience as a CARE presenter.<br />
We are teaching <strong>the</strong> kids something that will stay with <strong>the</strong>m<br />
for <strong>the</strong> rest of <strong>the</strong>ir lives. The proper and intelligent use<br />
of credit is fundamental to surviving in today’s society.<br />
—Lori Simpson<br />
Bishop,Daneman & Simpson<br />
Dr. Manning has noted that:<br />
[B]y introducing <strong>the</strong> CARE Program in local high<br />
schools and colleges, it offers a practical roadmap<br />
for unwary students who too quickly succumb to<br />
<strong>the</strong> temptations of easy credit during <strong>the</strong>ir most<br />
formative years. By discussing <strong>the</strong> ‘real world’<br />
consequences of consumer debt and offering guidance<br />
for developing personal finance skills,<br />
Tim Pfeffer, a senior at Penfield High School, remarked<br />
after hearing a CARE presentation, “It was very informative<br />
for soon-to-be college freshmen. It helped focus on <strong>the</strong><br />
dangers of impulse buying and <strong>the</strong> consequences of those<br />
purchases.” Kat Zhao, a junior at Montgomery Blair High<br />
School, expressed <strong>the</strong>se views after her CARE presentation,<br />
“I thought it was very important, and I enjoyed hearing<br />
about real-life experiences and what to watch out for when<br />
handling credit.”<br />
(continued on page 20)<br />
Debt 3 May/June 2005<br />
19
CARE<br />
(continued from page 19)<br />
Please check out <strong>the</strong> CARE Program website,<br />
www.careprogram.us. It has:<br />
(1) a link on how to start a program in your area;<br />
(2) all of <strong>the</strong> CARE Program presentation materials,<br />
ga<strong>the</strong>red from CARE Programs across <strong>the</strong> country,<br />
that can be easily downloaded;<br />
(3) a series of CARE articles written for NextStep<br />
Magazine, a college preparatory magazine that is<br />
distributed in over 21,000 high schools in 48 states,<br />
which are a great resource not only for students, teachers<br />
and parents, but also for presenters;<br />
(4) a credit information link that provides important credit<br />
and financial information and links to o<strong>the</strong>r credit<br />
information websites;<br />
(5) <strong>the</strong> Credit Card Chronicles, two college freshmen, one<br />
at Georgetown and one at Boston College, reporting<br />
back about <strong>the</strong>ir experience with finances and credit<br />
cards in college;<br />
(6) media articles, a Federal Judicial Center documentary,<br />
a Program Synopsis and videos of television coverage<br />
that are important marketing tools; and much more.<br />
The CARE Program is continually working to establish<br />
partnerships and collaborations with o<strong>the</strong>r entities, including<br />
with <strong>the</strong> National Foundation for Financial Education<br />
(NEFE), MTV, YoungMoney Magazine, <strong>the</strong> Federal<br />
Financial Literacy Commission, and o<strong>the</strong>rs. Local programs<br />
often create <strong>the</strong>ir own presentation materials and<br />
pick and choose various materials available on <strong>the</strong> CARE<br />
Program Web site. However, being a part of <strong>the</strong> CARE<br />
Program allows you to take advantage of its Web site, presentation<br />
and marketing materials and national identity,<br />
publicity and contacts. This can be an important consideration<br />
when approaching school administrators and teachers<br />
to ask <strong>the</strong>m to bring a financial literacy program into <strong>the</strong>ir<br />
school. Also, <strong>the</strong> CARE Program Web site is currently <strong>the</strong><br />
only national clearinghouse for <strong>the</strong> financial literacy outreach<br />
efforts of <strong>the</strong> bankruptcy community where interested<br />
administrators and teachers can go to find contact information<br />
in order to schedule a presentation.<br />
As members of <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong>, you<br />
have <strong>the</strong> personal knowledge, experience and stories of real<br />
people with financial problems to share with <strong>the</strong> high school<br />
and college students in your community so that <strong>the</strong>y can<br />
improve <strong>the</strong>ir Financial I.Q., use credit responsibly and avoid<br />
<strong>the</strong> many consequences of abusing <strong>the</strong> far too easy to obtain<br />
consumer credit.<br />
The CARE Program desperately needs you so that more<br />
students across <strong>the</strong> country can be exposed to its important<br />
lessons, tactics and techniques. If <strong>the</strong>re is a CARE Program<br />
in your community, please consider becoming a part of it,<br />
or supporting it in some <strong>way</strong>. If <strong>the</strong>re is no local presence,<br />
please consider partnering up with o<strong>the</strong>r bankruptcy professionals<br />
in your area to bring CARE to your community.<br />
Show <strong>the</strong> young people in this country that you CARE and<br />
become part of <strong>the</strong> solution.<br />
Being a part of <strong>the</strong> CARE Program allows<br />
you to take advantage of its Web site,<br />
presentation and marketing materials and<br />
national identity, publicity and contacts.<br />
John C. Ninfo, II is United States Bankruptcy Judge for <strong>the</strong> Western District of New York and was a member of <strong>the</strong><br />
Bankruptcy Appellate Panel for <strong>the</strong> United States Court of Appeals for <strong>the</strong> Second Circuit. He currently serves as<br />
Chief Bankruptcy Judge for <strong>the</strong> Western District of New York. For 18 years prior to taking <strong>the</strong> bench, Judge Ninfo<br />
was with <strong>the</strong> law firm of Underberg & Kessler in Rochester, New York where his concentration was in <strong>the</strong> areas of<br />
Debt 3 May/June 2005<br />
20<br />
bankruptcy, banking and commercial law. In <strong>the</strong> Fall of 2002, Judge Ninfo founded <strong>the</strong> Credit Abuse Resistance<br />
Education (CARE) Program. Judge Ninfo can be reached <strong>the</strong> <strong>the</strong> CARE Web site, www.careprogram.us or by phone<br />
at (585) 613-4200.
Patron FUND<br />
The CLLA Patron Fund provides an excellent means for CLLA members to<br />
give something back to <strong>the</strong>ir association.<br />
The Fund was established in 1963 and has a proud tradition of supporting <strong>the</strong> <strong>League</strong> and its endeavors.<br />
Patron Fund contributions create a financial reservoir that allows <strong>the</strong> <strong>League</strong> to underwrite worthy<br />
projects without <strong>the</strong> need for special fund drives. Patron Fund grants have been used to finance a<br />
variety of programs and projects that benefit our members and increase <strong>the</strong> overall visibility and viability<br />
of <strong>the</strong> <strong>League</strong>. In recent years, grants have been awarded to:<br />
✱ <strong>the</strong> CLLA Bankruptcy Section ✱ <strong>the</strong> <strong>Commercial</strong> Collection Agency Association ✱<br />
✱ <strong>the</strong> Membership Development Committee ✱ <strong>the</strong> <strong>League</strong>’s Legislative Writer ✱<br />
✱ <strong>the</strong> DePaul Business & <strong>Commercial</strong> <strong>Law</strong> Journal ✱<br />
✱ <strong>the</strong> CLLA to underwrite <strong>the</strong> expenses of <strong>League</strong> Counsel ✱<br />
✱ <strong>the</strong> CLLA to underwrite <strong>the</strong> cost of having a Liaison between <strong>the</strong> <strong>League</strong> and <strong>the</strong> NCBJ ✱<br />
✱ <strong>the</strong> CLLA to establish <strong>the</strong> ABC Commission ✱<br />
All <strong>League</strong> members are invited to join this esteemed group of colleagues by simply completing <strong>the</strong><br />
pledge form below. Your pledge is a meaningful <strong>way</strong> to demonstrate your commitment to <strong>the</strong><br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® .<br />
Contributing companies or firms are recognized by publication in <strong>the</strong> Patron Roster and by special<br />
designation as Patrons on conference badges for <strong>the</strong>ir members.<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY<br />
Return <strong>the</strong> completed<br />
form below to:<br />
CLLA<br />
36404 Treasury Center<br />
Chicago, IL<br />
60694-6400<br />
Phone:<br />
312.781.2000<br />
Fax:<br />
847.526.3993<br />
COMMERCIAL LAW LEAGUE OF AMERICA ®<br />
PATRON FUND PLEDGE FORM<br />
Please include my name among <strong>the</strong> esteemed list of colleagues that support <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® as a<br />
Patron of <strong>the</strong> <strong>League</strong>. I understand that <strong>the</strong> minimum pledge to <strong>the</strong> Fund as established by <strong>the</strong> CLLA Board of Governors is $150.00.<br />
I also understand that my membership will appear by firm name when published in <strong>the</strong> Patron Fund Roster.<br />
❏<br />
OR<br />
❏<br />
I am enclosing my check made out to CLLA in <strong>the</strong> amount of $_____________________________.<br />
I am faxing my credit card information to 847-526-3993 authorizing CLLA<br />
to charge my credit card <strong>the</strong> amount of $_____________________________.<br />
❏ MasterCard ❏ Visa ❏ AMEX ❏ Discover<br />
Credit Card Number<br />
Exp. Date<br />
Signature<br />
Date<br />
I understand that my listing in <strong>the</strong> Patron Fund Roster will appear as shown below.<br />
Firm Name<br />
Location
management<br />
Profitability<br />
Techniques<br />
O<strong>the</strong>r Than<br />
More Hours and<br />
Higher Rates<br />
By Joel A. Rose<br />
Part Two<br />
11. Alternative Billing Methods<br />
The concept of alternative billing methods to hourly rates<br />
is of growing importance. It is one of <strong>the</strong> best <strong>way</strong>s to recover<br />
for efficiencies created by <strong>the</strong> effective use of automated<br />
systems. Demands of clients and competition among law<br />
firms are causing fairly dramatic changes in <strong>the</strong> pricing of<br />
legal services, a<strong>way</strong> from straight hourly billing. For example,<br />
task based billing, contingent fees, modified hourly rate<br />
with a success factor, fixed fee or combinations of <strong>the</strong> above<br />
are gaining favor.<br />
One key to pricing legal services effectively is to understand<br />
what <strong>the</strong> client values most in <strong>the</strong> engagement: is it highly<br />
specialized expertise; is it labor (i.e., is this an engagement<br />
many firms can handle and <strong>the</strong> client is looking for inexpensive<br />
labor); is it speed of production; is it <strong>the</strong> reputation<br />
and credibility of <strong>the</strong> firm; is it a contact or connection; or<br />
is it risk sharing? What <strong>the</strong> client wants and needs will<br />
frame how legal services for <strong>the</strong> engagement can be fairly<br />
priced. Structuring a fee arrangement that does not match<br />
up to what <strong>the</strong> client values, frequently spells trouble for <strong>the</strong><br />
relationship as well as for <strong>the</strong> collectibility of <strong>the</strong> account.<br />
12. Attorney Staffing: Flex-time,<br />
Part-time and O<strong>the</strong>r Options<br />
Where and when appropriate, flex-time, part-time and temporary<br />
lawyers may allow a firm to call upon trained lawyers<br />
to work as needed, and reduce <strong>the</strong> amount of unproductive<br />
time, seasonal fluctuations and expensive carrying costs for<br />
attorneys and staff. Also, <strong>the</strong> costs associated with flex or<br />
part-time and temporary attorneys are traditionally lower<br />
than full time attorneys, and <strong>the</strong>re is frequently no need for<br />
health care or benefits nor partner track.<br />
The new challenge for law firms today is how to increase profits and reduce clients’ legal<br />
fees. This second of a two-part article describes <strong>the</strong> last ten of 20 approaches for enhancing<br />
profitability o<strong>the</strong>r than by working more hours and charging higher hourly rates.<br />
To read <strong>the</strong> first ten ideas, see pages 22 and 23 of <strong>the</strong> March/April 2005 issue of Debt 3 .<br />
13. Partnership Track/Addressing <strong>the</strong> Issue of<br />
Under-productive Partners and Associates<br />
Every partner and associate should be subject to continuing<br />
scrutiny. Profits should be distributed and career advancement<br />
should be awarded to those who earn it, not those<br />
who stand <strong>the</strong> test of time. Partners and associates who no<br />
longer justify <strong>the</strong>ir compensation package should be counseled<br />
by lawyer management. Absent appropriate improvement<br />
in <strong>the</strong>ir performance, <strong>the</strong>ir salaries should be adjusted<br />
accordingly and <strong>the</strong>ir career progression and/or <strong>the</strong> continuity<br />
of remaining in <strong>the</strong> firm should be reevaluated.<br />
Debt 3 May/June 2005<br />
22
management<br />
14. New Systems, Methods and Technology<br />
In today's practice environment, it behooves lawyers to<br />
determine whe<strong>the</strong>r <strong>the</strong>y can substantively improve <strong>the</strong>ir<br />
practice, accomplish more work in a given time, do a better<br />
job in <strong>the</strong> same time, retrieve and use prior work product<br />
more efficiently, and in short, provide benefits to <strong>the</strong>ir<br />
clients and <strong>the</strong>mselves by using modern hardware systems<br />
and software. By considering <strong>the</strong> following, lawyers may<br />
begin to assess <strong>the</strong> extent to which hardware and software<br />
applications, people and practice systems will accomplish<br />
specific results: With hardware systems, how much is<br />
enough, i.e., individual PC's, handhelds, office networks,<br />
multi-office networks, home to office capabilities?<br />
Concerning software, which of <strong>the</strong> selected examples of<br />
individual and firm wide user applications are appropriate<br />
for your office:<br />
individual user applications - operating systems, phone<br />
lists, spreadsheets, time and billing, word processing, calendar,<br />
check writer, communications/internet access, data<br />
bases, mailing lists, modern telecommunications systems,<br />
firm-wide applications - accounting, banking online, case<br />
management, conflicts, disaster recovery, docket control,<br />
document production, file room, LANS and WANS,<br />
library, management reporting, new client intake, time and<br />
billing, website/marketing, etc.<br />
To address <strong>the</strong> above applications, lawyers must answer<br />
several questions including:<br />
• What do we actually do in our practice?<br />
• What do we want to do (or what should<br />
we want to do?)<br />
• Can we get <strong>the</strong>re with existing hardware, software,<br />
people and operating systems?<br />
• Do we have <strong>the</strong> means and technical skill to<br />
upgrade and if so, are we ready for this?<br />
• Should we upgrade as a single project or<br />
compartmentalize and stretch <strong>the</strong> effort over<br />
a several year period?<br />
• Have we analyzed compatibilities, training, and<br />
financing?<br />
• Are consultants of several kinds appropriate<br />
at this time?<br />
• Should we just out source much of our<br />
immediate needs?<br />
15. Expand <strong>the</strong> Use of Programmed<br />
Form Documents<br />
Increase your firm's "library" of pre-approved programmed<br />
form documents. Encourage lawyers to share frequentlyused<br />
form documents. Formalize <strong>the</strong> process by having a<br />
departmental committee work with each lawyer's forms to<br />
create departmental standards where practical, and encourage<br />
your lawyers to submit examples of good work received<br />
from o<strong>the</strong>r firms for possible use in your practice.<br />
All standard or semi-standard forms should be entered into<br />
your computer system so that all document preparers can<br />
retrieve <strong>the</strong>m easily. Be aware that <strong>the</strong> secretary's attitude<br />
will affect <strong>the</strong> lawyer's willingness to use a particular form,<br />
so make it easy for <strong>the</strong> secretary.<br />
Circulate hard copy of existing forms to all potential users<br />
whenever <strong>the</strong>re are revisions or additions. <strong>Law</strong>yers can't use<br />
what <strong>the</strong>y don't know exists. Fur<strong>the</strong>r, to gain greater acceptance<br />
of <strong>the</strong> use of standard forms, be flexible with alternate<br />
language to suit each lawyer's style. It's better for a lawyer<br />
to use 80 percent of a form because he or she may craft 20<br />
percent to <strong>the</strong>ir own liking than for <strong>the</strong> lawyer not to use it<br />
at all because <strong>the</strong> rules are too rigid.<br />
Bill appropriately for form documents. You must be paid<br />
for development efforts, and it is both reasonable and proper<br />
to charge based on what <strong>the</strong> document is worth to <strong>the</strong><br />
client, not for <strong>the</strong> few minutes it takes you to pull it from<br />
<strong>the</strong> computer.<br />
16. Increase Specialization by <strong>Law</strong>yers<br />
and Paralegals<br />
Today's social and economic climate is no longer practical<br />
for <strong>the</strong> general practitioner. Too much additional time is<br />
required for <strong>the</strong> lawyers who purport to be general practitioners<br />
to acquaint <strong>the</strong>mselves about a specific type of law<br />
that may be unfamiliar. This is not cost-effective. Fur<strong>the</strong>r,<br />
lawyers should focus on complex legal issues and emerging<br />
fields of law. To do this, <strong>the</strong>y must recognize tasks that may<br />
be best performed by competent paralegals.<br />
<strong>Law</strong>yers and paralegals that have specialized in particular<br />
practice areas should have <strong>the</strong> capability to work more efficiently<br />
and effectively, produce a higher quality work product<br />
faster and presumably can charge higher fees. Even in<br />
smaller firms, when practical, it may be beneficial to divide<br />
up <strong>the</strong> legal work by substantive practice areas, <strong>the</strong> ability<br />
and interest of each lawyer. Hence, lawyers should be<br />
encouraged to become well educated, even beyond mandatory<br />
CLE requirements.<br />
<strong>Law</strong>yer management should insist that work be assigned to<br />
<strong>the</strong> correct department or lawyer who possesses <strong>the</strong> appropriate<br />
level of expertise in your firm. A personal injury lawyer<br />
should not be allowed to write a will or handle a real estate<br />
closing, even if it is for a relative and is being done at a discount.<br />
Fur<strong>the</strong>r, <strong>the</strong> firm’s compensation system should<br />
reward referrals to <strong>the</strong> right specialist, and perhaps even punish<br />
inappropriate retention of work by <strong>the</strong> originating lawyer.<br />
17. Enhanced Management of Substantive<br />
Practice Areas<br />
<strong>Law</strong>yer management should be able to rely upon those partners<br />
within practice groups to deal with issues of attorney<br />
workload, staffing, rates, realization and billable hours within<br />
<strong>the</strong> group. Clearly, a practice group doing insurance<br />
defense litigation is going to have different rates, billable<br />
requirements and activities in sharp contrast to a transnational<br />
group. Partners within <strong>the</strong> practice group must be sensitive<br />
to <strong>the</strong> distinction and managing partners must be equally<br />
sensitive to this distinction in addressing profitability issues.<br />
(continued on page 24)<br />
All standard<br />
or semistandard<br />
forms should<br />
be entered<br />
into your<br />
computer<br />
system so<br />
that all<br />
document<br />
preparers can<br />
retrieve <strong>the</strong>m<br />
easily.<br />
Debt 3 May/June 2005<br />
23
(continued from page 23)<br />
Joel A. Rose is<br />
president of Joel A.<br />
Rose & Associates, Inc.,<br />
Cherry Hill, NJ, a firm<br />
of management<br />
consultants that<br />
specializes in law firm<br />
management and legal<br />
economics.<br />
Mr. Rose calls upon<br />
38 years experience<br />
as a management<br />
consultant to law firms,<br />
and has special<br />
expertise in strategic<br />
planning, partner<br />
compensation systems,<br />
planning and facilitating<br />
retreats, assessing <strong>the</strong><br />
feasibility of mergers<br />
and acquisitions<br />
and approaches for<br />
enhancing revenue<br />
and profitability.<br />
He may be<br />
contacted at<br />
jrose63827@aol.com<br />
or by phone at<br />
856-427-0050 or<br />
fax 856-429-0073.<br />
18. Controlling Costs<br />
After years of consulting to <strong>the</strong> legal profession, one<br />
inescapable conclusion pops out...that profitable firms are<br />
revenue driven, and that an hour spent in deriving new<br />
revenues normally results in more profit to <strong>the</strong> lawyer than<br />
an equal hour spent in trying to reduce costs. That said, <strong>the</strong><br />
following are some of <strong>the</strong> standard techniques for controlling<br />
law firm costs:<br />
• Budget ahead of scheduled activities<br />
• Time expenses to match firm initiatives and<br />
strategies for achieving particular objectives<br />
• Centralize office purchasing in one employee<br />
• Review performance against both budget and<br />
prior year expenses. Make <strong>the</strong>se reviews with<br />
o<strong>the</strong>r lawyers and/or administrative staff<br />
responsible for line items.<br />
• Compare ongoing performance and/or starting<br />
conditions, i.e., salaries, rent, etc., with published<br />
surveys. Remember, <strong>the</strong>re is no average law firm.<br />
Your firm's costs will be higher in some areas<br />
and lower in o<strong>the</strong>rs than survey averages of firms<br />
your size. Your analysis must be tailored to<br />
your practice.<br />
• Exercise collective purchasing power. Negotiate<br />
for group rates - usually best done through your<br />
local or county bar association, or legal administrator's<br />
organization. <strong>Law</strong> firms and<br />
o<strong>the</strong>r service firms and businesses may<br />
form buying co-operatives. <strong>Of</strong>fice<br />
purchases may be drop shipped or, if<br />
your group is large enough, use your<br />
own warehouse.<br />
19. Modernize In-House<br />
Organizational Procedures and<br />
Controls in Single<br />
and Multi-office Firms<br />
There is an absolute need for <strong>the</strong> managing partner,<br />
firm administrator and o<strong>the</strong>r management<br />
personnel for <strong>the</strong> whole firm to give attention to<br />
<strong>the</strong> above recommendations to enhance firm<br />
revenue and profitability. The whole firm must<br />
pay attention to <strong>the</strong> operations of <strong>the</strong> various<br />
practice areas and offices and to avoid ignoring<br />
problems that may adversely affect profitability.<br />
In multi-office firms, <strong>the</strong>re is an absolute need<br />
for a hands-on managing attorney within each<br />
office to assume <strong>the</strong> first level of responsibility<br />
for <strong>the</strong> profitability of that office. Fur<strong>the</strong>r,<br />
branch offices should be able to stand profitabil-<br />
ity on <strong>the</strong>ir own or serve some significant profit-making<br />
function that benefits <strong>the</strong> firm as a whole. If <strong>the</strong>y do not,<br />
<strong>the</strong>se offices must be identified, and steps taken to ei<strong>the</strong>r<br />
increase profitability, or eliminate <strong>the</strong> office and its drain<br />
on <strong>the</strong> firm.<br />
These organizational control steps are <strong>the</strong> only <strong>way</strong> in<br />
which some law firms may maintain control over cost elements<br />
in a rapidly changing economic entity: write a<br />
Limits of Authority statement for all who have <strong>the</strong> right to<br />
sign checks or commit <strong>the</strong> firm to any financial obligations,<br />
including partners; and designate those individuals<br />
who can hire and approve overtime.<br />
20. Improve Banking Relationships<br />
Banks have become more difficult and expensive to deal<br />
with. Customer service for individual and smaller accounts<br />
has taken a back seat to larger commercial accounts, and<br />
smaller firms are feeling <strong>the</strong> pinch. Therefore, bank wisely:<br />
• Shop for <strong>the</strong> best banking relationships you can<br />
• Use your escrow accounts, checking accounts,<br />
etc., as a bargaining chip for favorable banking<br />
services, costs and marketing opportunities<br />
• Use possible client referrals as a fur<strong>the</strong>r<br />
bargaining chip<br />
• <strong>Of</strong>fer to use bank services for real estate closings,<br />
trusts, etc.<br />
Bressler-Duyk <strong>Law</strong> Firm<br />
“A Full-Service <strong>Law</strong> Firm Serving<br />
All of New Jersey Since 1967”<br />
New Jersey Collections<br />
Bressler-Duyk is a creditors’ rights law firm providing<br />
comprehensive collections and litigations services in areas<br />
including <strong>Commercial</strong>, Retail, Subrogation, Transportation<br />
& Insurance, Probate and Foreclosure/Real Estate <strong>Law</strong><br />
• Representing Creditors on <strong>Commercial</strong> & Retail Claims<br />
• Asset Locators<br />
• Bank Levy and Wage Executions<br />
Martin L. Duyk is past chair of <strong>the</strong> Eastern District<br />
of The <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ®<br />
Marc Bressler and David Bressler are members<br />
of <strong>the</strong> Creditors Rights Section<br />
Marc Bressler serves on <strong>the</strong> Executive Councils<br />
of <strong>the</strong> Eastern District and <strong>the</strong> Creditors Rights Section<br />
of <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ®<br />
Debt 3 May/June 2005<br />
24<br />
(732) 494-8555<br />
Fax: (732) 494-9464<br />
Bressler Professional Building<br />
60 State High<strong>way</strong> 27, Edison, NJ 08820-3908<br />
marc@bresslerlaw.com<br />
www.bresslerduyk.com
Debt 3 May/June 2005<br />
25
marketing<br />
ONGOING<br />
FOLLOW-UP<br />
KEY<br />
TO TURNING<br />
PROSPECTS<br />
INTO CLIENTS<br />
By Trey Ryder<br />
F<br />
ollow-up is critical to good marketing. Why? Because<br />
prospects may not be ready to hire you <strong>the</strong> moment<br />
<strong>the</strong>y discover you.<br />
Debt 3 May/June 2005<br />
26<br />
To remain in <strong>the</strong><br />
strongest<br />
competitive position,<br />
you need to stay in touch<br />
with prospects—<br />
in an<br />
education-based <strong>way</strong>—<br />
so when <strong>the</strong>y decide<br />
to hire legal services,<br />
<strong>the</strong> lawyer <strong>the</strong>y<br />
choose is you.<br />
Prospects may need more time to get to know you. They<br />
may need more time to evaluate whe<strong>the</strong>r <strong>the</strong>y can trust you.<br />
They may need more facts to make <strong>the</strong>ir decision. Or <strong>the</strong>y<br />
may not want to hire you until <strong>the</strong>ir circumstances change.<br />
Whatever <strong>the</strong> reason, prospects may need time. And with<br />
time comes <strong>the</strong> opportunity for your prospect to contact<br />
o<strong>the</strong>r lawyers -- and for o<strong>the</strong>r lawyers' marketing efforts to<br />
get in your <strong>way</strong>.<br />
To remain in <strong>the</strong> strongest competitive position, you need<br />
to stay in touch with prospects -- in an education-based <strong>way</strong><br />
-- so when <strong>the</strong>y decide to hire legal services, <strong>the</strong> lawyer <strong>the</strong>y<br />
choose is you. This is why it's important that you identify<br />
your prospects and capture <strong>the</strong>ir names and addresses for<br />
your mailing list. (If your prospect does not want his partners,<br />
co-workers or spouse to know he has contacted you,<br />
ask him to get a post office box or e-mail address that is not<br />
known to <strong>the</strong> o<strong>the</strong>r parties.)<br />
You want your first communication with a new prospect to<br />
be neutral and non-threatening. This is one reason your<br />
offer to mail an information packet can be so attractive. In<br />
addition, when you offer your packet by mail, you (obviously)<br />
ask for your prospect's name and mailing address.<br />
And your prospect (naturally) gives it to you, without
marketing<br />
raising his defenses as he would if he thought he would<br />
soon become <strong>the</strong> target of a sales pitch.<br />
During <strong>the</strong> follow-up process, you strive for <strong>the</strong> highest<br />
level of personal interaction with your prospect -- hopefully,<br />
a personal conversation. When you speak with your<br />
prospect, you help your prospect feel at ease, you respond<br />
to your prospect's questions, and you help move <strong>the</strong> process<br />
forward so your prospect hires your services.<br />
Make sure you build your follow-up efforts on answering<br />
questions and providing information. When your followups<br />
focus on offering facts and advice, every time your<br />
prospect interacts with you, you reinforce <strong>the</strong> depth of your<br />
knowledge, skill and experience.<br />
One note of caution: If your follow-up efforts include taking<br />
a prospect to lunch, or playing golf, your prospect<br />
might assume he is <strong>the</strong> target of a sales effort. If you choose<br />
to go to lunch or play golf, you streng<strong>the</strong>n your position by<br />
keeping your prospect's legal situation at <strong>the</strong> center of your<br />
discussion.<br />
To stimulate a second contact from your prospect:<br />
★ Invite your prospect to a seminar or roundtable. This<br />
gives him <strong>the</strong> opportunity to talk with you and ask questions<br />
in a non-threatening setting.<br />
★ In your information packet, provide an intake or evaluation<br />
form. Ask your prospect to provide basic facts and<br />
<strong>the</strong>n return <strong>the</strong> form for your review, in advance of your<br />
first conversation. Or he can bring it to your first meeting.<br />
★ <strong>Of</strong>fer additional articles and educational handouts.<br />
While sending an article is not as personal as speaking<br />
with your prospect, if your prospect isn't ready to talk<br />
with you, his requesting an article is at least a cordial and<br />
educational contact. Plus, it keeps <strong>the</strong> flow of information<br />
going from you to your prospect.<br />
You can extend all of <strong>the</strong>se offers by mail or e-mail (through<br />
letters and newsletters) -- and on your web site.<br />
I caution you NOT to conduct your follow-up effort by<br />
calling your prospect on <strong>the</strong> phone. An unexpected call<br />
labels you as a telephone solicitor and could cause your<br />
prospect to respond to you <strong>the</strong> same <strong>way</strong> he responds to<br />
o<strong>the</strong>r telemarketers.<br />
How often should you follow up?<br />
Frequency is more important than <strong>the</strong> amount of information<br />
you provide. For maximum impact, send your prospect<br />
something by mail (or e-mail) every five days for <strong>the</strong> first three<br />
weeks. Make sure whatever you send is designed to educate<br />
your prospect and help him make an informed decision.<br />
When your<br />
follow-ups focus<br />
on offering facts<br />
and advice,<br />
every time your<br />
prospect interacts<br />
with you,<br />
you reinforce<br />
<strong>the</strong> depth<br />
of your knowledge,<br />
skill and<br />
★ <strong>Of</strong>fer to speak with your prospect over <strong>the</strong> telephone to<br />
answer questions or provide fur<strong>the</strong>r information and<br />
advice.<br />
After <strong>the</strong> first three weeks, follow up at least monthly. If<br />
you can send something twice monthly or weekly, that's<br />
even better.<br />
experience.<br />
★ <strong>Of</strong>fer to meet with your prospect in your office or his, so<br />
you can discuss his situation in more detail.<br />
★ In your information packet, and on your web site,<br />
provide a form on which your prospect can list his objectives.<br />
Ask him to fill out <strong>the</strong> form and send it to you --<br />
or bring it to his first appointment with you.<br />
You work hard to identify new prospects and add <strong>the</strong>m to<br />
your mailing list. Now make sure you provide ongoing follow-up<br />
and take good care of your prospects. If you don't,<br />
hundreds of o<strong>the</strong>r lawyers will.<br />
Trey Ryder is a law-firm consultant who specializes in Education-Based Marketing for attorneys. He offers lawyers<br />
three free articles by e-mail: 7 Secrets of Dignified Marketing, 11 Brochure Mistakes <strong>Law</strong>yers Make, and 11 Ways to<br />
Turn Your Fee and Billing Policies into a Competitive Advantage. Send your name and e-mail address to<br />
trey@treyryder.com and ask for his free e-mail packet of articles.<br />
© Copyright 2005 by Trey Ryder LLC. All rights reserved.<br />
Debt 3 May/June 2005<br />
27
technology<br />
Using<br />
technology<br />
to keep<br />
your<br />
clients<br />
happy<br />
By John P. Meehan<br />
Everyone knows that clients want <strong>the</strong> highest recovery<br />
possible on <strong>the</strong> cases <strong>the</strong>y entrust to you, whe<strong>the</strong>r<br />
you are an agency or an attorney. However, <strong>the</strong>re are<br />
four additional expectations clients have about cases <strong>the</strong>y<br />
send to you. They want to:<br />
• Stay informed about what is happening with <strong>the</strong>ir cases<br />
• Minimize efforts by <strong>the</strong>ir staff in forwarding<br />
and overseeing your work<br />
• Evaluate that cost and recovery rates are competitive<br />
• Be assured that <strong>the</strong>y are not exposed to<br />
potential liability<br />
Technology, and particularly <strong>the</strong> Internet can help you keep<br />
clients happy by meeting all four of those needs.<br />
Keep clients informed<br />
Technology, and in particular <strong>the</strong> Internet, allows you to<br />
keep clients informed about <strong>the</strong> status of any case on a continual<br />
basis.<br />
Think about what happens when a claim arrives into your<br />
office. Typically, <strong>the</strong> information about <strong>the</strong> claim (e.g.<br />
debtor and creditor contact information; claim amount,<br />
etc.) is noted into a case file. As <strong>the</strong> attorneys or your staff<br />
works <strong>the</strong> claim you update <strong>the</strong> case file with <strong>the</strong> results of<br />
phone calls, asset searches, recommendations, key dates and<br />
actions taken on <strong>the</strong> case.<br />
Almost without exception, every active collection firm or<br />
agency has some form of collection management software<br />
that is a database to store all <strong>the</strong> information about <strong>the</strong> case.<br />
Once this information resides in your collection management<br />
software database, it is easy to make it available in a<br />
secure fashion to anyone you want.<br />
Debt 3 May/June 2005<br />
28<br />
If you received <strong>the</strong> claims through an<br />
electronic delivery provider, generally you<br />
don’t need to do anything more to keep your<br />
forwarder or client informed.<br />
If you received <strong>the</strong> claims through an electronic delivery<br />
provider, generally you don’t need to do anything more to<br />
keep your forwarder or client informed. Both of you can<br />
access <strong>the</strong> data remotely through <strong>the</strong> electronic delivery<br />
provider’s Internet site whenever you wish. Depending on<br />
<strong>the</strong> number, breadth and depth of <strong>the</strong> reports <strong>the</strong> electronic<br />
delivery provider offers, you and your forwarder/client<br />
will be able to know what is going on with every claim sent<br />
through that provider remotely at anytime. No more<br />
reporting or prompting.<br />
<strong>Of</strong> course, some forwarders or clients send claims “electronically”<br />
using excel spreadsheets directly and not through an<br />
electronic delivery provider. Even this information can be<br />
made available to your forwarder/client in an easy, continuous<br />
and secure fashion. Simply capture <strong>the</strong> data for <strong>the</strong>se<br />
cases from your collection software management database<br />
and send it to yourself using an electronic delivery provider<br />
that offers such an exporting service. This <strong>the</strong>n places a<br />
copy of <strong>the</strong> data onto <strong>the</strong> secure Web site of <strong>the</strong> electronic<br />
delivery provider. You can <strong>the</strong>n grant <strong>the</strong> forwarder/client<br />
permission to access <strong>the</strong> data and reports about those claims<br />
via <strong>the</strong> electronic provider’s secure Web site. Again, no<br />
more reporting or prompting.<br />
Your forwarders and clients are happy because <strong>the</strong>y know what<br />
is going on with <strong>the</strong>ir cases anytime at <strong>the</strong>ir convenience.
technology<br />
Minimize staff effort<br />
Obviously one <strong>way</strong> to reduce <strong>the</strong> amount of time and effort<br />
a forwarder spends on cases assigned to you is to reduce<br />
<strong>the</strong>ir need to prompt. As discussed above, providing online<br />
access to status information about <strong>the</strong> cases significantly<br />
reduces everyone’s workload by reducing telephone tag,<br />
eliminating <strong>the</strong> need to complete and file reporting forms<br />
and <strong>the</strong> cost of retrieving data on an ad hoc basis.<br />
Ano<strong>the</strong>r <strong>way</strong> is to eliminate <strong>the</strong> need for keystroking data<br />
and avoid errors. Moving data via an electronic delivery<br />
provider that interfaces with your own collection management<br />
database eliminates <strong>the</strong> need for staff to input data<br />
into that database. Errors are eliminated as <strong>the</strong> data is captured<br />
exactly as sent. Staff can spend more time on increasing<br />
recovery and less on technical or data entry tasks.<br />
Standardization of <strong>the</strong> process helps reduce staff time as<br />
well. On <strong>the</strong> receiver end, this has probably become quite<br />
evident. If you receive claims electronically, you most likely<br />
are dealing with half-dozen or more different formats in<br />
which <strong>the</strong> data is sent. If <strong>the</strong> data is coming via electronic<br />
delivery providers, your IT department and staff need to<br />
wrestle with several different interfaces.<br />
Even if all you do is receive excel spreadsheets, you have<br />
probably discovered that each is slightly different in format<br />
and structure. Your staff must spend time reorganizing <strong>the</strong><br />
data in order for it to work correctly in your collection software<br />
management database.<br />
Forwarders are probably experiencing similar issues as well.<br />
Their clients are sending files using a variety of protocols<br />
and file structures. They are required to manipulate files or<br />
maintain several different interfaces in order to serve <strong>the</strong>ir<br />
ultimate clients.<br />
Some forwarders may believe that standardization of how<br />
claims data is structured is irrelevant to <strong>the</strong>ir business<br />
because <strong>the</strong>y are able to simply demand that all receivers use<br />
<strong>the</strong>ir format if <strong>the</strong>y want to receive <strong>the</strong>ir business. This is<br />
costly not only to <strong>the</strong> receivers but also to <strong>the</strong> forwarder.<br />
The receiver must maintain and support many different<br />
formats and interfaces. If this weren’t necessary, <strong>the</strong> receiver’s<br />
time in processing and reporting on claims coming<br />
from a multitude of formats could be significantly reduced.<br />
Reducing <strong>the</strong> back office time to process claims accelerates<br />
actual collection activities on <strong>the</strong> claims. As everyone in<br />
this industry knows, time is definitely money when it<br />
comes to delinquent accounts.<br />
Part of <strong>the</strong> reason for <strong>the</strong> lack of standardization is <strong>the</strong> fact<br />
that most electronic delivery providers and data hosting services<br />
do not make <strong>the</strong> information about <strong>the</strong>ir file structures<br />
and conventions <strong>the</strong>y use available in <strong>the</strong> public domain.<br />
As <strong>the</strong> business of electronic delivery of data matures,<br />
clients, forwarders and receivers will expect a standard for<br />
claims processing that is open and available to all. In that<br />
(continued on page 30)<br />
Moving data via<br />
an electronic<br />
delivery provider<br />
that interfaces<br />
with your own<br />
collection<br />
managment<br />
database eliminates<br />
<strong>the</strong> need for staff<br />
to input data into<br />
that database.<br />
31 Oak Street • P.O. Box 352 • Patchogue, New York 11772<br />
Phone: (631) 475-4400 • Fax: (631) 475-9882 • E-Mail: <strong>the</strong>firm@roewallace.com<br />
• Complete Creditors’ Rights Service •<br />
– <strong>Commercial</strong><br />
– Retail<br />
– Insurance<br />
• Competitive Rates • AV<br />
– Transportation<br />
– Bankruptcy<br />
– Subrogation<br />
– Mortgage<br />
Foreclosure<br />
Rated • Proven Track Record •<br />
CONTACT:<br />
Lester P. Taroff • l.taroff@roewallace.com<br />
Steven Taitz • s.taitz@roewallace.com<br />
SERVING METROPOLITAN NEW YORK<br />
Debt 3 May/June 2005<br />
29
technology<br />
Using e-mail to forward and report on claims makes it easy for a disgruntled<br />
staff member to sabotage your business.<br />
John Meehan is Chief<br />
Operating <strong>Of</strong>ficer of<br />
YouveGotClaims.com,<br />
a provider of data-hosting and<br />
electronic delivery of collection<br />
data. The website is<br />
www.YouveGotClaims.com.<br />
John can be reached by email at<br />
MeehanJ@YouveGotClaims.com<br />
or by phone at 800-542-0204<br />
ext 230. Copyright 2005.<br />
All rights reserved.<br />
Debt 3 May/June 2005<br />
30<br />
<strong>way</strong>, <strong>the</strong> process on all sides of <strong>the</strong> transaction will become<br />
more standardized reducing <strong>the</strong> need for multiple interfaces.<br />
Staff time will be reduced and less effort will be<br />
expended on forwarding and managing <strong>the</strong> data. Recovery<br />
rates will increase, errors will be reduced and everyone<br />
involved from <strong>the</strong> client to <strong>the</strong> forwarder to <strong>the</strong> receiver will<br />
earn more.<br />
Evaluate cost and recovery rate<br />
You know that you do a good job collecting claims. Your<br />
recovery rate is competitive with o<strong>the</strong>rs in your jurisdiction<br />
or your market. Forwarders want to be able to compare<br />
how well receivers are doing. Clients want to evaluate <strong>the</strong><br />
agencies <strong>the</strong>y use.<br />
Forwarders and clients that use an electronic delivery<br />
provider and <strong>the</strong>ir data hosting capabilities have numerous<br />
reports available to help compare recovery rates among<br />
receivers. If you are particularly proud of your recovery<br />
rates, you can “self-publish” your success to current as well<br />
as potential clients and forwarders.<br />
If <strong>the</strong> data host offers an exporting capability, you can place<br />
data about claims your firm has worked on <strong>the</strong> data host’s<br />
Web site. Reports can be fashioned in such a <strong>way</strong> to show<br />
clients how successful your office has been in working <strong>the</strong>ir<br />
claims. The data can be used in summary form, without<br />
revealing confidential data or names of creditors or debtors, in<br />
order to show potential clients your successful track record.<br />
In addition, everyone in <strong>the</strong> process wants to be able to<br />
evaluate <strong>the</strong>ir true cost of recovery based on a variety of factors.<br />
Some obvious criteria might be to compare recovery<br />
rates and direct cost of collection by state or by size of<br />
claim. O<strong>the</strong>rs might include <strong>the</strong> age of claim or <strong>the</strong> length<br />
of time <strong>the</strong> receiver has been doing work for <strong>the</strong> forwarder.<br />
Most data hosts have a variety of reports that are “hardwired”<br />
to provide users with a great deal of information.<br />
However, what if ei<strong>the</strong>r as a forwarder or receiver you have<br />
your own set of criteria that you want to use to evaluate success.<br />
For example, as a forwarder, you might want to analyze<br />
cases to determine which receivers are more likely to<br />
recommend suit and <strong>the</strong>n compare recovery rates between<br />
receivers based on whe<strong>the</strong>r or not suit is recommended and<br />
by size of <strong>the</strong> claim or length of time between placement<br />
and recovery.<br />
Some data hosts provide <strong>the</strong> additional capability for<br />
authorized users to download <strong>the</strong> data itself and manipulate<br />
it as <strong>the</strong>y desire. In that <strong>way</strong>, <strong>the</strong> user need not be satisfied<br />
using static reports or individual claim information that <strong>the</strong><br />
hosting service may offer. The user can not only analyze <strong>the</strong><br />
data any <strong>way</strong> <strong>the</strong>y wish, but can also do so off-line by<br />
downloading <strong>the</strong> data.<br />
Avoid potential liability<br />
Privacy issues are in <strong>the</strong> forefront today. There have been<br />
many recent news reports about companies having <strong>the</strong>ir<br />
data exposed due to tape backups being lost, identity<br />
thieves posing as clients and even reports of “dumpster diving.”<br />
These are companies with deep pockets and significant<br />
safeguards in place, and yet <strong>the</strong>y face <strong>the</strong> potential for<br />
having data compromised.<br />
If you make data in your collection management software<br />
database available to forwarders or clients on a direct basis or<br />
are tempted to do so, think twice. Even if you feel comfortable<br />
with <strong>the</strong> privacy and security issues, consider <strong>the</strong> amount<br />
of time and training your staff needs to provide to those<br />
accessing your system. And of course, <strong>the</strong> client or forwarder<br />
must become adept at accessing several different systems in<br />
order to keep up with what is happening to <strong>the</strong>ir cases.<br />
And if you think that sending spreadsheets via e-mail doesn’t<br />
create potential liability for you or your forwarder/client,<br />
think again. How often have you or a member of your staff<br />
typed an e-mail address incorrectly? The result is that <strong>the</strong> data<br />
about debtors is sent inadvertently into <strong>the</strong> hands of some<br />
unknown and unintended recipient. Just think of how your<br />
business and professional reputation as a forwarder or receiver<br />
would suffer if data including social security numbers accidentally<br />
fell into <strong>the</strong> hands of someone who decided to use it<br />
for <strong>the</strong>ir own gain or decided to let <strong>the</strong> media know about <strong>the</strong><br />
information <strong>the</strong>y received accidentally.<br />
Using e-mail to forward and report on claims makes it easy<br />
for a disgruntled staff member to sabotage your business. It<br />
is easy to forward an e-mail containing an attachment with<br />
personal data to a competitor or sell it to an identity thief.<br />
Remember that viruses are easily spread through attachments.<br />
Imagine having to explain to a client or your forwarder<br />
or receiver why <strong>the</strong>ir system became infected<br />
because of a file you sent.<br />
None<strong>the</strong>less, it is crucial that you balance <strong>the</strong> need to provide<br />
information quickly and electronically to clients, forwarders<br />
or receivers with <strong>the</strong> need for security of <strong>the</strong> data. It can be<br />
done using <strong>the</strong> Internet in a safe and secure manner.<br />
The technology provided by reputable electronic delivery<br />
providers and data hosts virtually eliminates those concerns.<br />
They will use secure “file transfer protocol” as well as firewalls,<br />
encryption and can provide confirmation of delivery<br />
of data. The data will be received <strong>the</strong> <strong>way</strong> you sent it.<br />
Reducing as much as possible <strong>the</strong> risk and potential liability<br />
will keep clients happy.<br />
Conclusion<br />
Clients and forwarders want to be happy. Use of today’s<br />
Internet technology including secure electronic delivery as<br />
well as remote data hosting can help keep your clients<br />
happy and that will make you happier as well.
The <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ®<br />
and <strong>the</strong><br />
Eastern Region<br />
Members’ Association<br />
present <strong>the</strong><br />
th<br />
NEW YORK<br />
85MEETING<br />
CLLA<br />
L E A D I N G T H E W A Y<br />
Questions?<br />
© Jeff Greenberg/NYC & Company, Inc. © Joseph Pobereskin/NYC & Company, Inc.<br />
© Jeff Greenberg/NYC & Company, Inc.<br />
November 10-13, 2005<br />
Sheraton New York Hotel and Towers<br />
New York, New York<br />
Coming Soon…<br />
One Singular Sensation!<br />
Outstanding educational events by day and<br />
<strong>the</strong> lights of Broad<strong>way</strong> by night… <strong>the</strong> 2005<br />
New York Meeting has it all!<br />
(Theater options will be better than ever and<br />
will be announced at a later date.)<br />
Headliners:<br />
Thursday, November 10, 2005<br />
• Agency/Attorney Networking Day<br />
Anthony F. Picheca, Jr.<br />
Regional Chair<br />
Phone: 908.234.0536<br />
Email: apicheca@msn.com<br />
Warren Pinchuck<br />
Arrangements Chair<br />
Phone: 800.648.1914<br />
Email: warren@columbialist.com<br />
Friday, November 11, 2005<br />
• Agency/Attorney Networking Day<br />
Saturday, November 12, 2005<br />
• Annual Reception/Cocktail Party<br />
(including Warren’s famous Martini & Margarita Bars)<br />
Sunday, November 13, 2005<br />
• Lavish Sunday Brunch<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY<br />
70 E. Lake Street, Suite 630 • Chicago, IL 60601 • 312.781.2000 • www.clla.org
leadership<br />
UNDERSTANDING LEADERSHIP:<br />
THE NEGATIVE POWER OF<br />
DEPENDENCE<br />
By Kelly Newcomb<br />
Ihave two daughters, two years apart in age,<br />
who are as different in personality as night and<br />
day. Although both are bright, one is very well<br />
organized and excels in school. The o<strong>the</strong>r lacks<br />
what I’ll call “sequential” organizational skills.<br />
She has trouble in school, and she has been<br />
diagnosed with ADD (Attention Deficit<br />
Disorder).<br />
The youngest daughter has al<strong>way</strong>s<br />
been an early riser. She keeps her<br />
room neat and gets ready for school<br />
on her own each morning. The<br />
older daughter with ADD could<br />
never seem to get out of bed in <strong>the</strong><br />
morning, get herself ready, or get<br />
to <strong>the</strong> car without running out <strong>the</strong><br />
door trailing an open coat, dropping<br />
books, and tripping over<br />
untied shoe laces.<br />
For <strong>the</strong> past few years, getting <strong>the</strong><br />
older daughter off to school was one of<br />
my wife’s most difficult tasks. Every<br />
morning <strong>the</strong>re was a fight. Al<strong>way</strong>s something<br />
was left undone or forgotten. My<br />
older daughter frequently made my wife late<br />
for work and required her to get up hours<br />
before <strong>the</strong> time to leave. The atmosphere was<br />
often quite negative.<br />
Then at <strong>the</strong> end of school last year I took over <strong>the</strong> job of getting<br />
<strong>the</strong> girls ready each morning. My wife told me I would have<br />
to take on <strong>the</strong> responsibilities of waking up my older daughter, laying<br />
out her clo<strong>the</strong>s, making sure she ate breakfast, rounding up her books and<br />
homework, and getting her out <strong>the</strong> door on time.<br />
Debt 3 May/June 2005<br />
32<br />
I promised I would take care of everything. My wife looked dubious and for a good reason<br />
since I’ve been known to have moments a lot like my oldest daughter. I am not a naturally<br />
organized morning person!
leadership<br />
However, my love for my family has required me to get up<br />
very early to get work done that would o<strong>the</strong>rwise have to be<br />
done in <strong>the</strong> evenings. Since my wife and I made a commitment<br />
several years ago to share evening dinners toge<strong>the</strong>r as a<br />
family, I have begun to get a knack for early rising.<br />
Overcoming my own difficulties with <strong>the</strong> morning took<br />
time, as I became accustomed to change at my own pace. I<br />
sensed it would also take time for my oldest daughter to<br />
make similar changes for herself.<br />
Realizing this, I decided to start slowly with her. Little by little,<br />
we worked on making small changes. Each change<br />
encountered its own cycle of frustration and resistance. There<br />
were some angry moments between us—her being mad at<br />
me for feeling that was I pushing her to do something different,<br />
while dealing with <strong>the</strong> fact that I would not do everything<br />
for her.<br />
Every decision was hers to make. I would simply give her <strong>the</strong><br />
choice, stated as “ei<strong>the</strong>r, or.” The consequences were natural.<br />
For instance, <strong>the</strong> first time I told her <strong>the</strong> evening before that<br />
ei<strong>the</strong>r she make her own breakfast or she would have to do<br />
without, she wasn’t impressed. However, <strong>the</strong> next morning<br />
left an indelible impression on her when she left for school on<br />
an empty stomach. Since <strong>the</strong>n, she has never missed breakfast<br />
and has even made pancakes without making a mess!<br />
I gradually began to notice that <strong>the</strong> less I did for my daughter,<br />
<strong>the</strong> more she did for herself. Now she gets out of bed on<br />
her own, chooses her clo<strong>the</strong>s to wear, and packs her backpack<br />
with her previous night’s homework inside.<br />
While she still lacks some time awareness and performs her<br />
morning ritual at a much more uneven pace than her younger<br />
sister, she has become very successful at doing what has to be<br />
done. Occasionally, she is even ready before her sister.<br />
The year is almost over now and she hasn’t been late once. I<br />
no longer worry about her abilities to be successful in this<br />
world. I know she is going to do whatever she must for herself<br />
at her own pace.<br />
My wife frequently asks about our mornings. She can’t<br />
believe things are going so well. I want her to think it’s my<br />
superior parenting skills at work, not my own challenges with<br />
kid management that has led to our success.<br />
Ra<strong>the</strong>r than giving my daughter orders—“Get out of bed,<br />
get dressed for school, get your homework, etc.”—I gave her<br />
responsibility and made her accountable for her own actions.<br />
And that is what made all <strong>the</strong> difference!<br />
If we all had employees, team members, and politicians like<br />
my youngest daughter, getting things accomplished at work,<br />
in our associations, and in our world would be easy.<br />
However, people come in many different personality types<br />
with many different issues. Regardless of this, I have begun<br />
noticing persons do better when <strong>the</strong>y are held accountable<br />
and responsible, even when performing at <strong>the</strong>ir own pace.<br />
There is ano<strong>the</strong>r lesson I gained from my experience with my<br />
older daughter. People who give orders or do all <strong>the</strong> work<br />
<strong>the</strong>mselves often get reluctant, irresponsible work in return.<br />
However, people who help o<strong>the</strong>rs to be responsible for <strong>the</strong>ir<br />
own actions are freed from doing all <strong>the</strong> work <strong>the</strong>mselves and<br />
less likely to be <strong>the</strong> target of o<strong>the</strong>r persons’ blame. My daughter<br />
could no longer point <strong>the</strong> finger at someone else for<br />
something that did not get done, especially when that something<br />
was ultimately her responsibility.<br />
Recently this experience has caused me to reflect profoundly<br />
on my work, especially with volunteer organizations. It<br />
al<strong>way</strong>s perplexed me to see committees blame o<strong>the</strong>r committees,<br />
even members on <strong>the</strong>ir committee or <strong>the</strong> organization<br />
for its inabilities to get things done. <strong>Of</strong>ten, meetings would<br />
be long, torturous referendums on all <strong>the</strong> things that weren’t<br />
being done or couldn’t be done.<br />
One day last week in a session, I heard a polite man state<br />
“Aren’t we all volunteers?” I thought briefly, “Oh – Oh, here<br />
it comes, <strong>the</strong> cop-out,” when he surprisingly asked, “Isn’t this<br />
what we volunteered to do…to get things done and help<br />
solve <strong>the</strong>se problems ourselves?” At that moment ano<strong>the</strong>r<br />
lady piped in stating “ei<strong>the</strong>r we do something or stop meeting<br />
like this. Personally, I want to do something.”<br />
Immediately I began to smile. Like my daughter, perhaps<br />
<strong>the</strong>se folks would learn how to operate independently.<br />
From that moment on, <strong>the</strong> meeting was no longer focused<br />
on <strong>the</strong> problems, as people decided to take responsibility and<br />
solve <strong>the</strong> issues that were making <strong>the</strong>m feel so negative for<br />
such a long time.<br />
People who<br />
help o<strong>the</strong>rs to<br />
be responsible<br />
for <strong>the</strong>ir own<br />
actions are freed<br />
from doing all <strong>the</strong><br />
work <strong>the</strong>mselves<br />
and are less likely<br />
to be <strong>the</strong> target<br />
of o<strong>the</strong>r persons’<br />
blame.<br />
But in <strong>the</strong> end I realize that what I have learned are several<br />
important lessons in leadership. My daughter was dependent<br />
on her mo<strong>the</strong>r for everything, and that dependence had a<br />
negative power that led her to take less and less responsibility<br />
for herself. It also had a negative power over us, since we<br />
were never able to focus entirely on what we needed to do<br />
without first doing for our older daughter what she could<br />
eventually do for herself. She became helpless and needed to<br />
be pushed through her morning like a stubborn donkey,<br />
sometimes kicking and al<strong>way</strong>s baying.<br />
Kelly Newcomb, president of Newcomb<br />
Marketing Solutions, has been helping businesses<br />
develop marketing and strategic planning<br />
programs for more than 14 years. He also<br />
owns and manages Can Do! Success, Inc., a<br />
personal and organizational development company<br />
specializing in corporate culture, business<br />
development, human resource development<br />
and sales training. He can be reached at kelly@candosuccess.com<br />
or at 800-921-1221.<br />
Debt 3 May/June 2005<br />
33
lifestyle<br />
&<br />
PUBLIC TOILETS, PEWS<br />
PASSENGER CABINS<br />
By Peter de Jager<br />
Debt 3 May/June 2005<br />
34<br />
I obviously have a<br />
different view of <strong>the</strong><br />
importance of a<br />
ringing phone.<br />
It will never have<br />
priority over <strong>the</strong><br />
person I'm<br />
physically with.<br />
I will never<br />
interrupt a personal<br />
conversation to<br />
answer a call<br />
from what could<br />
be a complete<br />
stranger, or worse,<br />
a telemarketer.<br />
The problem with public transportation is <strong>the</strong> ever present press of people. We're herded from one location to ano<strong>the</strong>r<br />
with little opportunity to be alone. The only chance for quiet and privacy are <strong>the</strong> few minutes we spend hidden<br />
in <strong>the</strong> safe harbour of a public stall. Hardly an opulent resting place, but it provides a few moments of peace, safe<br />
from <strong>the</strong> noise of <strong>the</strong> crowd.<br />
That is until, in <strong>the</strong> stall next to you, a cell phone rings out with <strong>the</strong> opening notes of Beethoven's Fifth and <strong>the</strong>n, to your<br />
utter amazement, <strong>the</strong> individual, amid <strong>the</strong> grunts and groans of normal bodily functions, answers <strong>the</strong> phone and holds a<br />
loud (as al<strong>way</strong>s) conversation. As you leave <strong>the</strong> stall you shake your head as you realize that ano<strong>the</strong>r bastion of privacy and<br />
solitude has fallen prey to electronic communications.<br />
While I see <strong>the</strong> usefulness of a cell phone, I've never really understood this compulsion to be in constant contact with<br />
anyone. Nor do I have a need, in my line of work, to give my clients <strong>the</strong> ability to contact me at a moment’s notice. Until<br />
very recently I did not own a cell phone. To many that marks me as a card carrying Technophobe. For me it was merely an<br />
acceptance of <strong>the</strong> fact that I had no pressing need to be in 'contact' every moment of <strong>the</strong> day.<br />
I now carry a cell phone. Why? Because recently I underwent heart surgery and while recuperating I went for long walks<br />
with <strong>the</strong> dog. Having a means to call 911 if I fell down and couldn't get up seemed like a good idea. Only three people have<br />
my cell phone number - my wife and sons.<br />
I obviously have a different view of <strong>the</strong> importance of a ringing phone. It will never have priority over <strong>the</strong> person I'm<br />
physically with. I will never interrupt a personal conversation to answer a call from what could be a complete stranger, or<br />
worse, a telemarketer. That, in my mind at least, is an grievous insult to <strong>the</strong> person in front of me.<br />
We have all been in <strong>the</strong> middle of a conversation with a sales clerk, receptionist, airline check in person etc. and have <strong>the</strong>m<br />
turn a<strong>way</strong> from us to answer an incoming call. Personally I have a very negative response to this behaviour. I consider it both<br />
extremely rude and an example of <strong>the</strong> poorest possible customer service. I don't care that <strong>the</strong> phone is ringing. I'm here<br />
now... deal with me first and <strong>the</strong>n deal with <strong>the</strong> person who might be a thousand miles a<strong>way</strong> from <strong>the</strong> front of <strong>the</strong> line.
lifestyle<br />
I doubt that my gut reaction to this situation is different<br />
from that of most people.<br />
All of us have sat in a cinema straining to hear <strong>the</strong> actors<br />
over <strong>the</strong> chattering of some fool having a conversation<br />
(loudly of course) on a cell phone. This is so common as to<br />
be unworthy of comment. A cinema after all is a 'public'<br />
space and rudeness isn't a crime, just an indication of social<br />
immaturity and a symptom of <strong>the</strong> etiquettely challenged.<br />
If answering a phone when with o<strong>the</strong>rs is a sign of disrespect<br />
and a personal insult, what are we to make of phones<br />
ringing and being answered in places of worship? All<br />
around <strong>the</strong> world, churches are faced with <strong>the</strong> problem of<br />
phones disturbing holy services. I wonder how God feels<br />
about having his (her?) time with believers interrupted with<br />
conversations about more important topics?<br />
Which raises <strong>the</strong> question... If you're a believer, I'm curious<br />
as to what phone call you think qualifies as sufficient<br />
enough reason to interrupt your conversation with God? It<br />
must be earth shattering to say <strong>the</strong> least.<br />
There was, and for <strong>the</strong> moment still is, one place where we<br />
are safe from <strong>the</strong> sound of a ringing phone. At 30,000 feet<br />
we're not allowed to use cell phones. The reason is that <strong>the</strong>y<br />
will supposedly interfere with <strong>the</strong> sensitive navigation<br />
equipment. Yes, <strong>the</strong>re are on-board phones we can use but<br />
<strong>the</strong>y're expensive and that alone cuts down on usage.<br />
Although <strong>the</strong>re was this one painful trip where<br />
<strong>the</strong> gentleman sitting next to me, carried on a<br />
conversation with his mistress throughout <strong>the</strong><br />
long trans-Atlantic flight... an expensive tête-àtête.<br />
How do I know it was a "mistress?" When<br />
you can't avoid overhearing a five-hour intimate<br />
conversation, <strong>the</strong>re isn't much you don't know<br />
about <strong>the</strong>ir relationship.<br />
That last bastion of ring-free space is about to<br />
vanish. The airlines have recently done extensive<br />
testing and have decided that <strong>the</strong>y can offer cell<br />
phone usage while in <strong>the</strong> air. Since <strong>the</strong>y can offer<br />
it safely, and <strong>the</strong>re is a class of traveler who<br />
believes <strong>the</strong>y need this service, <strong>the</strong>re is no doubt<br />
that within a few years, all airlines will allow it<br />
and present it as a feature.<br />
to strip down to your underwear to comply with <strong>the</strong> latest<br />
ineffective security measure. Add <strong>the</strong> effect of a few drinks<br />
at 30,000 feet and <strong>the</strong> scene is set for fisticuffs in <strong>the</strong> aisles<br />
and determined attempts to shove <strong>the</strong> tiny cell phone down<br />
<strong>the</strong> throat of <strong>the</strong> offending party.<br />
The bottom line is this: adding cell phones to flights will<br />
fur<strong>the</strong>r decrease <strong>the</strong> quality of <strong>the</strong> travel experience. It will<br />
erode <strong>the</strong> safety of passengers in general. Irritable passengers<br />
attempting to sleep will not take kindly to <strong>the</strong><br />
inevitable barrage of loud conversations throughout <strong>the</strong><br />
flight. Polite requests to ei<strong>the</strong>r stop using <strong>the</strong> phone or to<br />
talk quietly will be met with predictable hand gestures and<br />
will generate equally predicable responses. But we will add<br />
this technology to flights any<strong>way</strong>... ei<strong>the</strong>r because we're<br />
incapable of seeing <strong>the</strong> unintended consequences or<br />
because we don't care about those consequences.<br />
The question to all of us is this. When do we start thinking<br />
about how technology changes our lives for <strong>the</strong> worse<br />
and start acting on that knowledge? Or are we destined to<br />
forever be at <strong>the</strong> mercy of technology?<br />
Peter de Jager is passionate about change, how<br />
it affects both individuals and organizations and<br />
allows <strong>the</strong>m to grow and prosper. To contact<br />
him, and host internal seminars on Change<br />
Management visit www.technobility.com<br />
© 2005<br />
If answering a phone<br />
when with o<strong>the</strong>rs<br />
is a sign of disrespect<br />
and a personal insult,<br />
what are we to make<br />
of phones ringing<br />
and being answered<br />
in places of worship?<br />
It is also a simple matter to predict that incidents<br />
of air rage will spike sharply when this happens.<br />
In <strong>the</strong> long run, cell phone usage at 30,000 feet is<br />
a bad idea. In a cinema <strong>the</strong> chattering idiot is hidden<br />
in <strong>the</strong> dark and can't be found. In <strong>the</strong><br />
church, our outrage at <strong>the</strong> interruption is tempered<br />
by our respect for <strong>the</strong> sanctity of our surroundings.<br />
In <strong>the</strong> air, <strong>the</strong> noisy fool is within<br />
arms reach. Passenger cabins are small. They can't<br />
hide from our wrath.<br />
The situation will be ripe for hilarity and mayhem.<br />
You're already in bad mood because you're<br />
cramped and tired and vainly trying to sleep.<br />
You're jet lagged and still smarting from having<br />
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Debt 3 May/June 2005<br />
35
practiceaid<br />
Debtor’s<br />
Word<br />
is his<br />
Bond?<br />
By Richard B. Frandsen<br />
Apolice officer sees a car driven recklessly by some<br />
wild looking hippies. As <strong>the</strong> officer pulls <strong>the</strong> car<br />
over he sees some leafy substance being thrown<br />
out <strong>the</strong> passenger window. He approaches and sees smoke<br />
billowing from <strong>the</strong> car. When he leans in to speak with <strong>the</strong><br />
driver a strong pungent odor fills <strong>the</strong> air. It sure smells like<br />
marijuana. The longhaired driver looks nervous and his<br />
pupils are dancing. The officer asks if he has consumed a<br />
controlled substance or if he has drugs or something illegal<br />
in <strong>the</strong> car or even in his pockets. The driver stutters out<br />
“no.” The officer thanks <strong>the</strong> driver, apologizes for any<br />
inconvenience, and returns to his patrol car.<br />
Debt 3 May/June 2005<br />
36<br />
After a judgment is entered debtors<br />
are routinely brought back into court<br />
to testify or provide detailed<br />
information on <strong>the</strong>ir income, assets,<br />
and intentions to pay <strong>the</strong> debt.<br />
An unlikely scenario to be sure. Yet an identical situation<br />
occurs when <strong>the</strong> collection attorney hauls a debtor into<br />
court for a supplemental hearing or debtor’s exam.<br />
After a judgment is entered debtors are routinely brought<br />
back into court to testify or provide detailed information on<br />
<strong>the</strong>ir income, assets, and intentions to pay <strong>the</strong> debt. <strong>Of</strong>ten<br />
an asset questionnaire is completed that is designed to provide<br />
<strong>the</strong> attorney with a clear, detailed picture of <strong>the</strong><br />
debtor’s assets and financial status. In effect, what we attorneys<br />
ask <strong>the</strong> debtor is, “Do you have money, income, or<br />
assets I can take from you or your company?” The answer<br />
is predictably “No!” The attorney routinely relies on <strong>the</strong><br />
debtor’s honesty and virtue as no debtor would lie under<br />
oath or after signing a certification.
practiceaid<br />
It’s no revelation that some debtors choose to hide or at<br />
least shade <strong>the</strong> truth. When testifying or completing <strong>the</strong><br />
questionnaire debtors will predictably forget or understate<br />
<strong>the</strong> value of <strong>the</strong>ir assets. The attorney is left to rely on <strong>the</strong><br />
debtor’s love of truth and full disclosure despite suspicions.<br />
Like <strong>the</strong> police officer, <strong>the</strong> attorney takes <strong>the</strong> answers on<br />
blind faith.<br />
The ownership and value of a debtor’s real estate holdings<br />
are relatively simple to confirm. Personal property is more<br />
challenging. Never<strong>the</strong>less, <strong>the</strong>re is a rarely used, but often<br />
cost effective tool to confirm and value <strong>the</strong> debtor’s inventory,<br />
equipment, and o<strong>the</strong>r assets. The debtor’s assets can<br />
actually be examined and appraised, ei<strong>the</strong>r voluntarily or via<br />
court order, by a professional personal property appraiser.<br />
The benefits of such an examination are clear.<br />
Accuracy is far greater when an independent third party<br />
assesses <strong>the</strong> assets. An appraiser can examine each piece of<br />
property at <strong>the</strong> debtor’s place of business or residence.<br />
Normally photographs, and even videos, will be taken to<br />
allow <strong>the</strong> appraiser to examine <strong>the</strong> asset at length and without<br />
<strong>the</strong> debtor hovering over his shoulder. This photographic<br />
evidence and <strong>the</strong> written appraisal are also made<br />
available to <strong>the</strong> creditor’s attorney. The appraiser will likely<br />
know how <strong>the</strong> region or locale where <strong>the</strong> assets are located<br />
will affect <strong>the</strong>ir value.<br />
Based on <strong>the</strong> specific asset, <strong>the</strong> reason for <strong>the</strong> appraisal, and<br />
perhaps <strong>the</strong> guidance of <strong>the</strong> client, <strong>the</strong> appraiser will value<br />
<strong>the</strong> assets using one of <strong>the</strong> following measurements:<br />
■ Cost is a useful measure when <strong>the</strong> appraisal is made<br />
shortly after an arms length sale.<br />
■ Replacement value is often used for insurance purposes.<br />
■ Reproduction cost is used where <strong>the</strong> item is unique, has<br />
a limited market, and comparable sales are not readily<br />
available.<br />
■ Liquidation or forced sale value is <strong>the</strong> default after<br />
attempting unsuccessfully to sell at <strong>the</strong> appraised value.<br />
This value is often used when a sale is forced to satisfy a<br />
debt.<br />
The appraiser will establish this value based on opinion,<br />
which is a projection of his knowledge of <strong>the</strong> market and his<br />
experience and training. This experience is priceless when <strong>the</strong><br />
object being appraised has a unique value. For example, if <strong>the</strong><br />
item has “provenance,” or a unique history or origin, <strong>the</strong> value<br />
may skyrocket. An old broken seven-iron may fetch nothing<br />
at auction. Yet if it can be confirmed that <strong>the</strong> club was once<br />
owned by John F. Kennedy it becomes far more valuable. If<br />
<strong>the</strong>re is a story accompanying <strong>the</strong> club, such as <strong>the</strong> club being<br />
broken over a knee during a golf round with Khrushchev, <strong>the</strong><br />
old seven-iron becomes priceless.<br />
As with any profession, appraisers come in a variety of qualities,<br />
abilities, specializations, and costs. Hourly rates tend<br />
to run between $75-150, plus any travel expenses.<br />
Although <strong>the</strong> cost tends to be surprisingly reasonable, an<br />
appraisal may not be feasible for a small judgment. Unlike<br />
real estate appraisers, personal property appraisers are not<br />
licensed. However, when selecting a personal property<br />
appraiser consider specialization and certification. Some<br />
personal property appraisers are schooled and tested to gain<br />
CAGA or GPPA certification. The CAGA designation is<br />
offered by <strong>the</strong> Certified Appraiser’s Guild of <strong>America</strong><br />
(www.appraisersguild.com) and <strong>the</strong> GPPA certification<br />
(Graduate Personal Property Appraiser) is offered by <strong>the</strong><br />
National Auctioneer’s Association (www.auctioneers.org).<br />
Both require schooling in residence as well as an exam to test<br />
proficiency.<br />
An appraiser should also be aware of and should abide<br />
by <strong>the</strong> ethical code imposed by <strong>the</strong> Uniform Standards<br />
of Professional Appraisal Practice (USPAP)<br />
(www.appraisalfoundation.org). The USPAP is recognized<br />
as <strong>the</strong> generally accepted standard of conduct for both<br />
real and personal property appraisers. Although most<br />
standards are written expressly for <strong>the</strong> real property appraiser,<br />
<strong>the</strong> USPAP does set standards for personal property<br />
appraisals. For instance, it stresses proper research and <strong>the</strong><br />
parameters set for preparing reliable reports for <strong>the</strong> client.<br />
Adding a professional appraisal to a lawyer’s assessment on<br />
an important, potentially profitable case can be invaluable.<br />
Because, believe it or not, <strong>the</strong>re are debtors who lie.<br />
The ownership<br />
and value<br />
of a debtor’s<br />
real estate<br />
holdings are<br />
relatively simple<br />
to confirm.<br />
Personal<br />
property is more<br />
challenging.<br />
■ The most likely method will be <strong>the</strong> fair market value<br />
which is defined by <strong>the</strong> IRS and most courts:<br />
Fair market value (FMV) is <strong>the</strong> price that property<br />
would sell for on <strong>the</strong> open market. It is <strong>the</strong><br />
price that would be agreed on between a willing<br />
buyer and a willing seller, with nei<strong>the</strong>r being<br />
required to act, and both having reasonable<br />
knowledge of <strong>the</strong> relevant facts.<br />
(IRS Regulations 1.170-1(c))<br />
Richard B. Frandsen is a commercial collection<br />
attorney with offices in Salt Lake City and<br />
Park City, Utah (www.biglawyer.com). He<br />
is also a certified personal property appraiser<br />
(CAGA) and a trained auctioneer<br />
(www.weimarhouse.com). He has been a<br />
member of <strong>the</strong> league for 20 years. He can<br />
be reached at (801) 944-5677 or by e-mail at<br />
biglawyer@aol.com.<br />
Debt 3 May/June 2005<br />
37
cÜxä|xã<br />
111 TH ANNUAL CONVENTION<br />
fxvà|ÉÇ<br />
REPORT OF THE<br />
2004-2005 Nominating Council<br />
The following <strong>League</strong> members were elected as Delegates and Alternates<br />
to <strong>the</strong> Nominating Council for 2004-2005:<br />
EASTERN<br />
DISTRICT<br />
Delegates<br />
Edward J. Friedman<br />
Baltimore, MD<br />
Anthony F. Picheca, Jr.<br />
Far Hills, NJ<br />
NEW ENGLAND<br />
DISTRICT<br />
Delegates<br />
Jonathan H.Allen<br />
Springfield, MA (Vice-Chair)<br />
David I. Shorr<br />
Framingham, MA<br />
SOUTHERN<br />
DISTRICT<br />
Delegate<br />
Emory B. Potter<br />
Atlanta, GA<br />
Alternate<br />
WESTERN<br />
DISTRICT<br />
Delegates<br />
Alan E. Ramos<br />
Pleasanton, CA<br />
Steven A. Booska<br />
San Francisco, CA<br />
DELEGATES<br />
AT LARGE<br />
Delegates<br />
William C. Sturm<br />
Milwaukee,WI<br />
Murray S. Lubitz<br />
White Plains, NY<br />
Alternates<br />
Joseph I.Terkell<br />
White Plains, NY<br />
Alisa Stein<br />
Haverstraw, NY<br />
Alternates<br />
Marc D.Wallick<br />
Warwick, RI<br />
Leonard Krulewich<br />
Boston, MA<br />
Beau Hays<br />
Atlanta, GA<br />
Alternates<br />
Stephen B. Elggren<br />
Sandy, UT<br />
John Wayne Miller<br />
Longmont, CO<br />
Alternates<br />
John S. Pucin<br />
Philadelphia, PA<br />
Raymond J. Rotella<br />
Orlando, FL<br />
MIDWESTERN<br />
DISTRICT<br />
Delegates<br />
Nancy B. Hamilton<br />
Cleveland, OH (Chair)<br />
Mark J. Sheriff<br />
Columbus, OH<br />
Alternates<br />
Todd L. Gurstel<br />
Minneapolis, MN<br />
Thomas W. Hamilton<br />
Cleveland, OH<br />
The organizational meeting took place on November 13, 2004 in New York,<br />
NY. Rules of Procedure were adopted. The Council elected Nancy B.<br />
Hamilton to serve as Chair and Jonathan H. Allen to serve as Vice Chair.<br />
Discussion at <strong>the</strong> first meeting centered on <strong>the</strong> vacancies in office to be filled and<br />
<strong>the</strong> procedure to follow in developing a slate of candidates.<br />
The Nominating Council met again at <strong>the</strong> 75th Chicago Conference in April,<br />
2005, where candidate interviews were conducted. Vacancies for office included<br />
President, President-elect, Recording Secretary, two Attorney Members, and<br />
Agency Member.<br />
Jerry T. Myers of Raleigh, N.C. was designated <strong>the</strong> sole candidate for President.<br />
Sidney S. Friedman of Baltimore, Md. was designated <strong>the</strong> sole candidate for<br />
President-elect. Joel H. Klein, San Antonio, Texas, was certified as candidate<br />
for Recording Secretary. Robert P. Ingold of Buffalo, N.Y. was certified as candidate<br />
for Agency Member of <strong>the</strong> Board of Governors. Three candidates were certified as<br />
candidates for <strong>the</strong> two Attorney Member positions: Ian A. Bardin of Playa del Ray,<br />
Cal., Brian S. Behar of Aventura, Fla. and Robert S. Levy of Commack, NY.<br />
The full slate of candidates follows this report with biographical sketches.<br />
Attendance and participation at this year's meetings of <strong>the</strong> Nominating Council<br />
was excellent. My appreciation is extended to <strong>the</strong> members of <strong>the</strong> Council for <strong>the</strong><br />
diligent manner in which <strong>the</strong>y attended to <strong>the</strong>ir responsibilities.<br />
Nancy B. Hamilton, Chair<br />
CLLA Nominating Council
111<br />
cÜxä|xã TH ANNUAL CONVENTION<br />
fxvà|ÉÇ<br />
CANDIDATE BIOGRAPHIES<br />
Internet Use and Practice (1998)<br />
Pre-Paid Legal Association Member<br />
Future Planning Conference (1997-98)<br />
NARCA Member<br />
JERRY T. MYERS<br />
President<br />
DATE OF BIRTH<br />
October 1, 1958<br />
Monroe, North Carolina<br />
EDUCATIONAL<br />
AND PROFESSIONAL<br />
CREDENTIALS<br />
Wake Forest University, B.S. (1980)<br />
J.D. (1984)<br />
Wake Forest University School<br />
of <strong>Law</strong>. Admitted to <strong>the</strong> North<br />
Carolina State Bar (1984)<br />
MEMBERSHIPS<br />
AND ACTIVITIES<br />
Member, North Carolina State<br />
Bar Association<br />
President,Wake County Bar<br />
Association,Young <strong>Law</strong>yers’ Division<br />
(1992)<br />
Member, <strong>America</strong>n Bar Association<br />
and NARCA<br />
LEAGUE ACTIVITIES<br />
President Elect (2004-05)<br />
Attorney Member, Board of<br />
Governors (2002-04)<br />
Recording Secretary (2000-01)<br />
Member, Review Board—Structure<br />
(1999-2000)<br />
Creditors’ Rights Newsletter<br />
(1994-99)<br />
Forwarders and Receivers (1993-94)<br />
<strong>Of</strong>fice Management Economics<br />
(1992-97)<br />
Political Action Committee (1998)<br />
Creditors’ Rights B&I Liaison<br />
(1998-99)<br />
Executive Council Member:<br />
Sou<strong>the</strong>rn Region (1993-2001)<br />
Creditors’ Rights Section (1992-1997)<br />
Young Members’ Section:<br />
Executive Council Member (1991-94)<br />
Secretary (1995)<br />
Treasurer (1996)<br />
Chair Elect (1997)<br />
Chair (1998)<br />
Board Liaison (1999)<br />
CLLANet Operations:<br />
Ex-<strong>Of</strong>ficio Member (1992-95)<br />
Chair (1998)<br />
CLLANet Users Advisory (1996-97)<br />
Nominating Council:<br />
First Alternate Delegate (1991)<br />
Delegate at Large (1997)<br />
Delegate at Large, Nominating<br />
Committee (1997)<br />
Computerization/Standardization:<br />
Vice Chair (1990-91)<br />
Chair (1992-95)<br />
Chair: B&I Liaison (1997)<br />
Professional Responsibility<br />
(1997-2002)<br />
Board Liaison<br />
Pamphlet Committee (1999)<br />
LAW PRACTICE<br />
Smith Debnam Narron Wyche<br />
Saintsing & Myers, L.L.P<br />
4601 Six Forks Road, Suite 400<br />
Raleigh, North Carolina 27609<br />
SIDNEY S. FRIEDMAN<br />
President-Elect<br />
DATE OF BIRTH<br />
April 18, 1947<br />
Baltimore, Maryland<br />
EDUCATIONAL<br />
AND PROFESSIONAL<br />
CREDENTIALS<br />
University of Maryland,<br />
Cum Laude, B.A.<br />
1969, University of Maryland<br />
<strong>Law</strong> School J.D.<br />
1974. Admitted to practice in<br />
Maryland and Washington D.C. Bars,<br />
Baltimore, City Bar, Baltimore County<br />
Bar, Supreme Court Bar, Fourth<br />
Circuit Court of Appeals Bar, U.S.<br />
District Courts and Bankruptcy<br />
Courts. Certified Creditor’s Rights<br />
Specialist.<br />
MEMBERSHIPS<br />
AND ACTIVITIES<br />
Maryland Arbitration Claims Panels<br />
and Attorney<br />
Grievance Inquiry Panel<br />
Certified Creditors’ Rights Specialist<br />
by <strong>the</strong> CLLA<br />
Academy of <strong>Commercial</strong> and<br />
Bankruptcy <strong>Law</strong> Specialists, in<br />
conjunction with <strong>the</strong> <strong>America</strong>n Bar<br />
Association.<br />
Maryland State Bar Fellow<br />
Association of Trial <strong>Law</strong>yers<br />
Equipment Leasing Association<br />
Member<br />
Lease Equipment Attorney Network<br />
(LEAN)<br />
President <strong>Law</strong> School<br />
Graduating Class<br />
Served on Attorney Grievance<br />
Commission for State Bar of<br />
Maryland<br />
Served on Maryland Health Claims<br />
Arbitration Panel for State Bar of<br />
Maryland<br />
LEAGUE ACTIVITIES<br />
Creditors’ Rights Section:<br />
Former Chair, Chair Elect,Treasurer,<br />
Secretary, Member of Executive<br />
Counsel and Education Chair.<br />
Eastern District Counsel:<br />
Former Chair, Chair Elect,Treasurer,<br />
Secretary, Member of Executive<br />
Counsel and Education Chair<br />
Chair National Meetings Committee<br />
(2002-2005)<br />
<strong>Commercial</strong> <strong>Law</strong> Foundation Member<br />
Board of Governors (2001-2005)<br />
LAW PRACTICE<br />
Weinstock, Friedman & Friedman, P.A.<br />
4 Reservoir Circle,<br />
Executive Centre 2nd floor<br />
Baltimore, Maryland 21208<br />
<strong>Commercial</strong> Practice Economics<br />
(1991-93)
cÜxä|xã<br />
111 TH ANNUAL<br />
fxvà|ÉÇ<br />
CONVENTION<br />
CANDIDATE BIOGRAPHIES<br />
IAN BARDIN<br />
Attorney Member<br />
Board of Governors<br />
BRIAN BEHAR<br />
Attorney Member<br />
Board of Governors<br />
ROBERT S. LEVY<br />
Attorney Member<br />
Board of Governors<br />
JOEL H. KLEIN<br />
Recording Secretary<br />
DATE OF BIRTH<br />
April 5, 1943<br />
Los Angeles, California<br />
EDUCATIONAL<br />
AND PROFESSIONAL<br />
CREDENTIALS<br />
Santa Monica City College<br />
University of California<br />
at Santa Barbara<br />
University of California<br />
at Los Angeles, B.S. (1965), J.D. (1969)<br />
Admitted to California Bar (1969)<br />
MEMBERSHIPS<br />
AND ACTIVITIES<br />
Enjoys sailing and showing <strong>the</strong> youngsters<br />
that he can still play basketball.<br />
LEAGUE ACTIVITIES<br />
Western Region:<br />
Executive Board Member<br />
Creditor’s Rights Section: Executive<br />
Board Member and Chairman of<br />
Practice Groups Committee; <strong>Of</strong>fice<br />
Practices and Economics Committee<br />
(1989-1990)<br />
LAW PRACTICE<br />
<strong>Law</strong> <strong>Of</strong>fices of Ian A. Bardin<br />
8055 W. Manchester Ave., Suite 310<br />
Playa Del Rey, California 90293<br />
DATE OF BIRTH<br />
March 20, 1959<br />
Brooklyn, New York<br />
EDUCATIONAL<br />
AND PROFESSIONAL<br />
CREDENTIALS<br />
Tulane University, B.A. (1981)<br />
St. Johns School of <strong>Law</strong>, J.D. (1984)<br />
Admitted in New York and<br />
New Jersey Bars (1985);<br />
Florida (1987)<br />
MEMBERSHIPS<br />
AND ACTIVITIES<br />
Certified Fraud Examiner<br />
S.F.C – Director and <strong>Of</strong>ficer<br />
Rotary Club<br />
Member of National Association<br />
of Retail Collection Attorneys<br />
International Association<br />
of <strong>Commercial</strong> Collectors<br />
<strong>America</strong>n Collectors Association<br />
<strong>America</strong>n Bankruptcy Institute.<br />
LEAGUE ACTIVITIES<br />
Member, Bankruptcy Section<br />
Executive Council; Bankruptcy Section<br />
Newsletter Committee (Chair)<br />
Member of Bankruptcy Section<br />
ADR Committee<br />
Member of Coordination with NCBJ,<br />
Local Meetings, <strong>Commercial</strong> Practice<br />
Procedure and Cooperation with<br />
NABT committees<br />
DATE OF BIRTH<br />
July 1, 1945<br />
Monticello, New York.<br />
EDUCATIONAL<br />
AND PROFESSIONAL<br />
CREDENTIALS<br />
University of Rhode Island, B.S. (1967)<br />
Brooklyn <strong>Law</strong> School, J.D. (1972)<br />
MEMBERSHIPS<br />
AND ACTIVITIES<br />
Past President of <strong>the</strong> <strong>Commercial</strong><br />
<strong>Law</strong>yers Conference of New York.<br />
Lecturer for <strong>the</strong> National Business<br />
Institute<br />
LEAGUE ACTIVITIES<br />
Eastern Region:<br />
Executive Council and Secretary<br />
Creditors’ Rights Section:<br />
Past Chair, Chair-Elect, Secretary,<br />
Treasurer, Representative to <strong>the</strong><br />
Board of Governors and Executive<br />
Council Member<br />
Past Secretary of <strong>Commercial</strong><br />
<strong>Law</strong> Foundation<br />
Bankruptcy Section member<br />
Lecturer on creditors’ rights topics<br />
LAW PRACTICE<br />
Smith, Carroad, Levy & Finkel, LLP<br />
5036 Jericho Turnpike<br />
Commack, New York 11725<br />
DATE OF BIRTH<br />
July 1, 1943<br />
San Antonio,Texas<br />
EDUCATIONAL<br />
AND PROFESSIONAL<br />
CREDENTIALS<br />
University of Texas,Austin, BBA (1965)<br />
University of Texas <strong>Law</strong> School (1967)<br />
Admitted Texas Bar (1967)<br />
5th Circuit and 11th Circuit<br />
U.S. District Court for Western<br />
District of Texas, and Sou<strong>the</strong>rn<br />
District of Texas (1969)<br />
U.S. Supreme Court (1971)<br />
MEMBERSHIPS<br />
AND ACTIVITIES<br />
Past President of Congregation<br />
Agudas Achim local chapters of<br />
B’nai B’rith, Zionist Org. of <strong>America</strong><br />
Bailli (local President) of LaConfrerie<br />
de la Chaine des Rotisseurs<br />
Vice President of San Antonio<br />
New World Wine & Food Festival<br />
(2000 – present)<br />
Life Fellow in San Antonio and Texas<br />
Bar Foundations<br />
Fellow member of The College<br />
of <strong>the</strong> State Bar of Texas<br />
U.S. Supreme Court (1971)<br />
LAW PRACTICE<br />
Behar, Gutt & Glazer, P.A.<br />
2999 N. E. 191st Street, 5th Floor<br />
Aventura, Florida 33180
111<br />
cÜxä|xã TH ANNUAL CONVENTION<br />
fxvà|ÉÇ<br />
Young Members’<br />
Section Nominating<br />
Committee Report<br />
LEAGUE ACTIVITIES<br />
Member of <strong>the</strong> CLLA and Sou<strong>the</strong>rn<br />
Region since 1971<br />
Attorney Member Board of<br />
Governors (filled out expired<br />
term 2004-05)<br />
Sou<strong>the</strong>rn Region:<br />
Member of Executive Council,<br />
Secretary,Vice Chair, Chair<br />
(1999 – 2000)<br />
Arrangements Chair,<br />
Annual Meetings (1998– 2004)<br />
Creditors’ Rights:<br />
Certified as Specialist (1997)<br />
Member of Creditors’ Rights Section<br />
since inception<br />
Creditors’ Rights Section<br />
Executive Council member<br />
(1998 – 2001)<br />
CRS Promotion and<br />
Development Committee<br />
Membership Committee:<br />
Vice Chair<br />
Member of National Nominating<br />
Council (1992, 1997 and 2004<br />
Member of following<br />
national committees:<br />
<strong>Of</strong>fice Management & Economics,<br />
Computerization/ Standardization;<br />
Professional Responsibility;<br />
Convention Site Selection (2000 –<br />
2004), Districts Council (2000 –<br />
2001), Convention Site Advisory<br />
(Chair), Membership, Co-Chair of<br />
Arrangements for 2004<br />
National Convention<br />
LAW PRACTICE<br />
Joel H. Klein & Associates<br />
6800 Park Ten Blvd, # 264-South<br />
San Antonio,Texas 78213-4204<br />
ROBERT P. INGOLD<br />
Agency Member<br />
DATE OF BIRTH<br />
June 1, 1947<br />
Rochester, New York<br />
EDUCATIONAL<br />
AND PROFESSIONAL<br />
CREDENTIALS<br />
University of Delaware<br />
MEMBERSHIPS<br />
AND ACTIVITIES<br />
National Association of Credit<br />
Managers (NACM)<br />
International Association of<br />
<strong>Commercial</strong> Collectors (IACC)<br />
Buffalo Business Partners<br />
(CCAA), past chair<br />
LEAGUE ACTIVITIES<br />
Eastern District Council<br />
<strong>Commercial</strong> Collection Agency<br />
Association (CCAA), past chair.<br />
AGENCY<br />
<strong>Commercial</strong> Collection Company<br />
of New York, Inc.<br />
34 Seymour St.<br />
Tonawanda, New York 14150<br />
The following is <strong>the</strong> slate of candidates for office<br />
in <strong>the</strong> Young Members’ Section for 2005-2006.<br />
OFFICERS:<br />
Emory Potter, Chair (Atlanta, Ga.)<br />
T. Britt Rudman, Chair-elect (Beverly Hills, Calif.)<br />
Barry Gammons, Treasurer (Nashville, Tenn.)<br />
Christopher Conner of Knoxville, Tenn.; Jordan M.<br />
Humphreys of Columbia, Mo.; David Mendelson of<br />
Memphis, Tenn.; and Julie Rausch of Milwaukee, Wis.<br />
are candidates for <strong>the</strong> position of Secretary.<br />
EXECUTIVE COUNCIL<br />
(3 SEATS AVAILABLE; TWO – YEAR TERMS)<br />
Jonathan H. Allen, Springfield, Massachusetts<br />
Adam K. Berman, Overland Park, Kansas<br />
John D. Guerrini, Los Angeles, California<br />
James Kozelek, Grove City, Ohio<br />
Mat<strong>the</strong>w J. Richburg, Milwaukee, Wisconsin<br />
Current Chair of <strong>the</strong> Young Members’ Section, Ivan Reich<br />
of Ft. Lauderdale, Florida, will succeed to <strong>the</strong> office of YMS<br />
Immediate Past Chair and Representative to <strong>the</strong> CLLA Board<br />
of Governors at <strong>the</strong> CLLA National Convention in July.<br />
Elections will be held on Friday July 15, 2005 beginning<br />
at 7 a.m. at <strong>the</strong> Four Seasons Hotel in Toronto, Canada in<br />
conjunction with <strong>the</strong> 111th Annual Convention of <strong>the</strong> CLLA.
cÜxä|xã<br />
111 TH ANNUAL<br />
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CONVENTION<br />
111TH ANNUAL CONVENTION<br />
PROPOSED RULES OF ORDER<br />
Proposed<br />
Rules of<br />
Order<br />
for 111th<br />
Annual CLLA<br />
Convention<br />
Following are <strong>the</strong> proposed<br />
Rules of Order for <strong>the</strong><br />
111th Annual Convention<br />
to be held in<br />
Toronto, Canada<br />
this summer.<br />
These will be formally<br />
presented by <strong>the</strong><br />
Rules of Order Committee<br />
for adoption to <strong>the</strong> members<br />
present at <strong>the</strong><br />
CLLA Annual General<br />
Membership Meeting<br />
(Business Session) on<br />
Thursday, July 14, 2005<br />
at 10:00 a.m.<br />
If anyone wishes to comment<br />
on <strong>the</strong> proposed rules,<br />
please fax your comments<br />
directly to <strong>the</strong><br />
<strong>League</strong> office<br />
(312-781-2010).<br />
1. The order of business of <strong>the</strong> Convention shall<br />
be as printed in <strong>the</strong> Convention Program.<br />
2. The proceedings of <strong>the</strong> Convention shall be<br />
conducted according to Robert's Rules<br />
of Order, Newly Revised, except as provided<br />
for herein or in <strong>the</strong> Constitution<br />
of <strong>the</strong> <strong>League</strong>.<br />
3. The Rules as submitted by <strong>the</strong> Committee<br />
on Rules of Order shall be adopted upon a<br />
majority vote of those present and voting.<br />
The Rules may be suspended or amended by a<br />
two-thirds vote of <strong>the</strong> Convention or upon<br />
recommendation by <strong>the</strong> Committee on Rules<br />
of Order by a majority vote of <strong>the</strong><br />
Convention. A fur<strong>the</strong>r or amended report of<br />
<strong>the</strong> Committee on Rules of Order of Business<br />
shall be in order at any time.<br />
4. At all sessions of <strong>the</strong> Convention, <strong>the</strong><br />
<strong>America</strong>n and Canadian flag shall be<br />
prominently displayed. One verse of<br />
"<strong>America</strong> <strong>the</strong> Beautiful" and one verse<br />
of “Oh Canada” shall be sung at <strong>the</strong> opening<br />
of <strong>the</strong> convention. One verse of “The Star<br />
Spangled Banner” and “Oh Canada” shall be<br />
sung before <strong>the</strong> final adjournment.<br />
5. The Committee on Resolutions shall consist<br />
of not more than fifteen (15) members equally<br />
divided between former Presidents of <strong>the</strong><br />
<strong>League</strong> or current members of <strong>the</strong> Board of<br />
Governors, and members of <strong>the</strong> <strong>League</strong>, plus<br />
<strong>the</strong> Chairperson.<br />
6. Elections at <strong>the</strong> Convention shall follow <strong>the</strong><br />
procedure as set forth in <strong>the</strong> Constitution,<br />
subject to <strong>the</strong> following:<br />
a. The Report of <strong>the</strong> 2004-2005 Nominating<br />
Council shall be published in <strong>the</strong><br />
Convention Program<br />
b. In <strong>the</strong> case of a contested election, <strong>the</strong>re<br />
shall be a Nominating event at which candidates<br />
for <strong>the</strong> contested election shall be<br />
required to present <strong>the</strong>ir views on issues of<br />
importance to <strong>the</strong> <strong>League</strong>. Prior to <strong>the</strong><br />
Nominating event, <strong>the</strong> Candidates for any<br />
office for which <strong>the</strong>re is more than one<br />
Nominee or <strong>the</strong>ir designees shall arrange,<br />
through <strong>the</strong> Chairperson of <strong>the</strong> Elections<br />
Committee, to draw lots as to <strong>the</strong> order in<br />
which <strong>the</strong> candidates would participate in<br />
<strong>the</strong> Nominating event.<br />
c. No Candidate shall be allowed to speak for<br />
himself or herself in withdrawing his or<br />
her candidacy.<br />
d. Only <strong>the</strong> names of Candidates for offices<br />
for which <strong>the</strong>re is more than one Nominee<br />
shall appear on <strong>the</strong> ballot.<br />
e. In <strong>the</strong> case where <strong>the</strong>re are no contested<br />
elections, <strong>the</strong> President and Convention<br />
Manager may determine <strong>the</strong> best time,<br />
place and manner to present information<br />
about <strong>the</strong> candidates to <strong>the</strong> convention.<br />
7. The Districts may select members to <strong>the</strong><br />
Nominating Council pursuant to Article<br />
XVIII of <strong>the</strong> Constitution and Section 1(C)<br />
<strong>the</strong>reof. If not so selected, <strong>the</strong> members of<br />
<strong>the</strong> several District Associations shall meet on<br />
Saturday, July 16, 2005 for <strong>the</strong> purpose of<br />
electing two delegates and two alternates to<br />
<strong>the</strong> Nominating Council for <strong>the</strong> 2005-2006<br />
election of officers.<br />
8. Debate and voting at <strong>the</strong> convention on<br />
constitutional amendments shall follow <strong>the</strong><br />
procedure as set forth in <strong>the</strong> Constitution,<br />
subject to <strong>the</strong> following:<br />
a. The presiding officer shall determine<br />
<strong>the</strong> order in which Constitutional<br />
amendments will be placed before<br />
<strong>the</strong> Convention.<br />
b. No individual will be allowed to speak<br />
for more than two (2) minutes on any<br />
Constitutional amendment. Total time<br />
for debate on all amendments will be<br />
limited to 30 minutes.<br />
c. Proposed Constitutional amendments as<br />
published in <strong>the</strong> official publication<br />
of <strong>the</strong> <strong>League</strong> may not be amended from<br />
<strong>the</strong> floor. However, such a proposed<br />
Constitutional amendment may be<br />
withdrawn upon a motion, second and<br />
two-thirds vote of those members present.<br />
The vote to withdraw an amendment need<br />
not be by written ballot.<br />
d. Upon a motion made and seconded, <strong>the</strong><br />
members present at <strong>the</strong> business session<br />
at which proposed Constitutional<br />
amendments are to be voted on, may<br />
upon unanimous consent, waive <strong>the</strong><br />
requirement that <strong>the</strong> vote on Constitutional<br />
amendments be in writing.
111th National Convention<br />
July 13-17, 2005<br />
T O R O N T O<br />
111<br />
cÜxä|xã TH ANNUAL CONVENTION<br />
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CLLA<br />
L E A D I N G T H E W A Y<br />
photo credits:Tourism Toronto<br />
The 111th Annual Convention has an exciting day of practical<br />
and timely education planned. It will be held on Friday, July 15, 2005<br />
and will include <strong>the</strong> following topics and speakers:<br />
★ 8 a.m. - 9 a.m.<br />
★ 9:15 a.m. - 10:15 a.m.<br />
★ 10:30 a.m. - 11:30 a.m.<br />
★ 1:00 p.m. - 2:30 p.m.<br />
★ 2:30 p.m. - 3:30 p.m.<br />
David Franklin, of Franklin & Franklin in Montreal, Quebec, will present<br />
“Enforcing U.S. Judgments in Canada.”<br />
“Obtaining Evidence in Canada for Use in <strong>America</strong>n Proceedings” will be presented<br />
by Chris MacLeod of Ross & McBride <strong>Law</strong> Firm in Hamilton, Ontario.<br />
Jon David Giacomelli of Ross & McBride <strong>Law</strong> Firm in Hamilton, Ontario will<br />
discuss “Cross-Border Dispute Resolution: Litigation/Arbitration/Mediation.”<br />
“The Effects of <strong>the</strong> Bankruptcy Reform on Your Practice: A View from <strong>the</strong> Practitioner<br />
and <strong>the</strong> Trustee” will be presented by Wanda Borges of Borges & Associates, LLC<br />
in Syosset, N.Y. and Gary Weiner of <strong>the</strong> Weiner <strong>Law</strong> Firm, P.C. in Springfield, Mass.<br />
Jack Seward, Jack Seward & Associates, LLC, consultant and digital forensic<br />
technologies, will present “Avoid E-Illiteracy in Bankruptcy, Insolvency and<br />
Enforcement of Judgments.”
cÜxä|xã<br />
111 TH ANNUAL<br />
fxvà|ÉÇ<br />
CONVENTION<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY<br />
ECCH<br />
[tÄy @VxÇàâÜç `xÅuxÜá<br />
Members of <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® who<br />
joined <strong>the</strong> <strong>League</strong> between July 2, 1954 and July 1, 1955<br />
receive this half-century membership recognition.<br />
David A.Witts<br />
Eugene B. Berman<br />
Alan R. Freedman<br />
Alexander Ogle<br />
Roger Mattes<br />
G.T. Hubbard<br />
Jack S. Francis<br />
Dallas,TX<br />
Springfield, MA<br />
Albany, NY<br />
Somerset, PA<br />
Scranton, PA<br />
Kingland,TX<br />
New Martinsville ,WV<br />
dâtÜàxÜ@VxÇàâÜç `xÅuxÜá<br />
Members of <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® who<br />
joined <strong>the</strong> <strong>League</strong> between July 2, 1979 and July 1, 1980<br />
receive this quarter-century membership recognition.<br />
James R.Apple<br />
Pittsburgh, PA<br />
Bradford S. Baker<br />
Sperry, OK<br />
Mark R. Bogen<br />
Lebanon, OH<br />
James C. Bray<br />
Jacksonville, FL<br />
Michael W. Carmel<br />
Phoenix,AZ<br />
David S. Chartier<br />
Milwaukee,WI<br />
Allan S. Cochin<br />
Carle Place, NY<br />
Sanford J. Cohan<br />
Columbus, OH<br />
Neal David Colton<br />
Wilmington, DE<br />
Joe Allen Connolly<br />
Asheville, NC<br />
Carl Cresci<br />
New York, NY<br />
David G. Crockett<br />
Atlanta, GA<br />
F. Jefferson Crump Columbus, IN<br />
Barry Alan Curtis<br />
Northbrook, IL<br />
Gaylon A. Davis<br />
Kansas City, MO<br />
Ira R. Deiches<br />
Haddonfield, NJ<br />
Jeffrey S. Doerr<br />
Clifton Park, NY<br />
Daniel L. Freeland<br />
Highland, IN<br />
Barry A. Friedman<br />
Mobile,AL<br />
Charles M. Friedman Louisville, KY<br />
Eugene Allan Friedman Baltimore, MD<br />
CLLA recognizes new quarter<br />
and half century members<br />
The <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® would like to congratulate <strong>the</strong><br />
following members for reaching ei<strong>the</strong>r a quarter-century or half-century<br />
point of <strong>League</strong> Membership. These members will be formally recognized<br />
during <strong>the</strong> National Convention being held at <strong>the</strong> Four Seasons Hotel in<br />
Toronto, Canada, July 13-16, 2005. Each of <strong>the</strong> individuals below will be<br />
listed in <strong>the</strong> convention booklet distributed at <strong>the</strong> national convention and<br />
those present will be awarded <strong>the</strong>ir certificate during <strong>the</strong> convention. The<br />
certificate of those not present will be sent directly to <strong>the</strong>m.<br />
Congratulations!<br />
Donald L. Gaffney<br />
Phoenix,AZ<br />
Brian A. Goldman<br />
Baltimore, MD<br />
Steven Goldstein<br />
St. Louis, MO<br />
Paul Gordon<br />
Woburn, MA<br />
Deborah L. Gray<br />
Portage, MI<br />
Thomas J. Hagner<br />
Cherry Hill, NJ<br />
Marvin Brooks Houghton Chico, CA<br />
Arthur James Inman Peoria, IL<br />
Charles M. Ivey<br />
Greensboro, NC<br />
Thomas L. Kanasky Bridgeport, CT<br />
Andrew D. Lyons<br />
Lewisburg, PA<br />
Dennis S. Malen<br />
Westbury, NY<br />
Jerry M. Markowitz<br />
Miami, FL<br />
Ted M. McManamon Cleveland, OH<br />
A. Howard Metro Rockville, MD<br />
John Wayne Miller<br />
Longmont, CO<br />
Kenneth J. Molnar<br />
Galena, OH<br />
Timothy D. Moratzka Minneapolis, MN<br />
Richard P. Olson<br />
Minot, ND<br />
Charles N. Parnell<br />
Montgomery,AL<br />
Ronald R. Peterson<br />
Chicago, IL<br />
John James Petr<br />
Indianapolis, IN<br />
Joel C. Richmond<br />
Baltimore, MD<br />
Sherwin P. Robin<br />
Savannah, GA<br />
Robert P. Rothman<br />
Syracuse, NY<br />
Robert B. Rottman<br />
Denver, CO<br />
Arnold Schafer<br />
Bloomfield Hills, MI<br />
Michael Schlussel<br />
New York, NY<br />
David Chip Schwartz Birmingham,AL<br />
Harvey Sender<br />
Denver, CO<br />
Joel Sanford Shapiro Dayton, OH<br />
David Mat<strong>the</strong>ws Shaw Evansville, IN<br />
Gilbert M. Singer<br />
Tampa, FL<br />
Ben G. Sissman<br />
Memphis, TN<br />
Christopher J. Small Winston-Salem, NC<br />
Allen W. Stokes<br />
Denver, CO<br />
Arthur P. Strickland Roanoke, VA<br />
W.Wayne Tiffany<br />
Virginia Beach,VA<br />
William J.Vallecorse Tampa, FL<br />
John R.Warner<br />
Boston, MA<br />
Alan H.Weinberg<br />
Cleveland, OH<br />
Andrew J.White<br />
Greenville, SC<br />
Jack Williams<br />
Atlanta, GA
111<br />
cÜxä|xã TH ANNUAL CONVENTION<br />
fxvà|ÉÇ<br />
CLLA’s National Convention…<br />
Your Passport to Fun, Food and Festivities!<br />
The 111th National Convention of <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® is going north of <strong>the</strong> Border, to <strong>the</strong><br />
cosmopolitan city of Toronto, Canada. If you have been to past Conventions, we look forward to seeing you again.<br />
If you have never participated in <strong>the</strong> National Convention of <strong>the</strong> <strong>League</strong>, this is a great opportunity that should not<br />
be missed.<br />
T O R O N T O<br />
Here is our Top Ten List as to why you<br />
should join us in Toronto, July 13-17, 2005:<br />
photo credits:Tourism Toronto<br />
CLLA<br />
L E A D I N G T H E W A Y<br />
111th National Convention<br />
July 13-17, 2005<br />
10 Toronto is an easy destination to reach from any major US city<br />
and it is less than a ten-hour drive for 60 percent of <strong>the</strong> U.S. population.<br />
9 CLLA is staying at a fabulous Four Seasons Hotel located in <strong>the</strong><br />
heart of <strong>the</strong> chic Yorkville district where shopping and cultural entertainment<br />
abound in this lively, safe and clean city. Guest rooms at <strong>the</strong> Four<br />
Seasons are elegant, comfortable and affordable.<br />
8 The U.S. Dollar is worth more! (And, crossing <strong>the</strong> border is<br />
easy; all you need is your passport and a current valid driver’s license or<br />
your birth certificate.)<br />
7 YMS is going all out with <strong>the</strong>ir traditional YMS games open<br />
to all ages, <strong>the</strong>ir 5K Fun Run and a special family night dinner at Gretzky’s<br />
Restaurant.<br />
6 Six hours of education for CLE credits will be available!<br />
5 Golf is offered on Wednesday, July 13, 2005!<br />
4 Enjoy a lavish meal at <strong>the</strong> Nominating Dinner on Thursday night<br />
(July 14, 2005) while listening to <strong>the</strong> candidates debate.<br />
3 Make your voice heard by casting your vote in <strong>the</strong> CLLA<br />
elections on Friday morning.<br />
2 A special reception to honor Tom and Nancy Hamilton for <strong>the</strong>ir<br />
combined total of over 50 years of volunteer service to <strong>League</strong><br />
Committees is being held on Saturday, July 16th from 5:30 p.m. – 7:30 p.m.<br />
1 And <strong>the</strong> #1 Reason to Join CLLA in Toronto for <strong>the</strong> 111th<br />
National Convention is … so you can spend quality time with your family<br />
in this unique city while also networking with your colleagues in <strong>the</strong> <strong>League</strong><br />
(in o<strong>the</strong>r words, it’s a business expense for you with all <strong>the</strong> fringe benefits)!
league business<br />
ABC REPORT<br />
New Bankruptcy <strong>Law</strong> Recognizes Board Certification<br />
According to <strong>the</strong> <strong>America</strong>n Board of Certification, <strong>the</strong><br />
Bankruptcy Abuse Prevention and Consumer Protection Act<br />
of 2005 (Pub. <strong>Law</strong> 109-8) adds an important new tool that<br />
will help Bankruptcy Courts ensure that attorneys paid by<br />
bankruptcy estates have <strong>the</strong> skill and expertise required for<br />
modern bankruptcy practice. The law now expressly authorizes<br />
Bankruptcy Judges to base <strong>the</strong>ir fee awards on whe<strong>the</strong>r <strong>the</strong><br />
lawyer has met <strong>the</strong> high objective standards needed to become<br />
board certified, such as those established by <strong>the</strong> <strong>America</strong>n<br />
Board of Certification (ABC).<br />
Specifically, <strong>the</strong> new legislation amends <strong>the</strong> Bankruptcy<br />
Code's compensation guidelines to add a new compensation<br />
factor. New section 330(a)(3)(E) directs <strong>the</strong> judges to consider<br />
"whe<strong>the</strong>r <strong>the</strong> person is board certified or o<strong>the</strong>rwise has<br />
demonstrated skill and expertise in <strong>the</strong> bankruptcy field."<br />
ABC administers <strong>the</strong> only national business and consumer<br />
bankruptcy programs. ABC is dedicated to enhancing <strong>the</strong><br />
insolvency and creditors’ rights bar by setting high, objective<br />
standards that attorneys attain through continuing legal education,<br />
substantial involvement in <strong>the</strong> practice area, successful<br />
completion of an examination, positive peer reviews, and<br />
more. Board certification helps clients and consumers of legal<br />
services identify attorneys who are specialists in <strong>the</strong> bankruptcy<br />
and creditors’ rights fields and it provides a mechanism for<br />
attorneys to inform consumers of <strong>the</strong>ir specialty.<br />
ABC is jointly sponsored by <strong>the</strong> <strong>America</strong>n Bankruptcy<br />
Institute (ABI) and <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
(CLLA). The ABC programs are accredited by <strong>the</strong> <strong>America</strong>n<br />
Bar Association. For more information on ABC and its specialist<br />
certification programs, please visit our website at<br />
www.abcworld.org or call (703) 739-1023. The ABC website<br />
contains sample exams and review information. The ABC<br />
exam covers <strong>the</strong> current law and will not reflect <strong>the</strong> 2005<br />
amendments until <strong>the</strong>y become effective. ■<br />
Debt 3 May/June 2005<br />
46<br />
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league business<br />
SUMMARY OF ACTIONS<br />
Taken by Board of Governors<br />
San Francisco, California<br />
February 17, 2005<br />
• Voted to require yearly financial reports from all CLLA regions and sections in order to ensure proper<br />
management of costs<br />
• Organize a meeting of Past Presidents to be held at <strong>the</strong> CLLA Chicago conference to discuss proposals<br />
and recommendations regarding <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> Institute.<br />
• Agreed to negotiate a contract with Grove Park Inn in North Carolina for <strong>the</strong> 2006 Convention site.<br />
• Announced plan to host a meeting of Joint Association Summit (CLLA, NARCA, ACA, IACC,<br />
Debt Buyers) at <strong>the</strong> CLLA Chicago conference.<br />
www.clla.org<br />
HESSE & LARSEY<br />
A multi-disciplined full-service <strong>Law</strong> Firm<br />
with an established reputation as <strong>the</strong> <strong>leading</strong><br />
<strong>Commercial</strong> Collection practice in Ghana<br />
providing service in all aspects of <strong>Commercial</strong><br />
Legal Practice and Litigation Services with<br />
experienced professionals available to react<br />
at short notice, and a strong network of<br />
correspondents and contacts worldwide.<br />
Key areas of legal practice<br />
• <strong>Commercial</strong> Agreements<br />
• International Trade<br />
• Acquisitions<br />
• Transport & Insurance<br />
• Creditors Rights<br />
• Subrogation<br />
• Complex Contract Litigation<br />
• Investment Advice<br />
• General Debt Collection<br />
CONTACT<br />
David A. Hesse, Esq.<br />
Partner<br />
P.O. Box OS 514, Osu-Accra,<br />
GHANA<br />
Tel: +233 21 760768/ +233<br />
21 778215<br />
Fax: +233 21 761197<br />
E-mail: hesse@ghana.com<br />
http: www.info.martindale.com/hesse&larsey<br />
NB: Claims are accepted pursuant to <strong>the</strong> operative guide of <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® .<br />
Debt 3 May/June 2005<br />
47
league business<br />
Creditors’ Rights<br />
Jeff E. Rubin, Chair of <strong>the</strong> Creditors’ Rights Section, has<br />
announced that <strong>the</strong> Section’s elections will be held at <strong>the</strong><br />
Annual New York Meeting of <strong>the</strong> CLLA in November 2005.<br />
The Chair of <strong>the</strong> Nominating Committee is <strong>the</strong> Section’s<br />
Immediate Past Chair, Christine Hayes Hickey of<br />
Indianapolis, Ind.<br />
There are four positions on <strong>the</strong> Executive Council whose<br />
terms will expire in November 2005. An additional four<br />
officer positions (Chair, Chair-elect, Treasurer and Secretary)<br />
will be elected at <strong>the</strong> meeting in November.<br />
Please notify Christine Hayes Hickey in writing by July 7,<br />
2005, of your interest in becoming a candidate for a seat<br />
on <strong>the</strong> Executive Council or an officer position. Please send<br />
your letter of interest to <strong>the</strong> Nominating Committee Chair:<br />
Christine Hayes Hickey, Esq.<br />
Rubin & Levin, P.C.<br />
500 Marott Center, 342 Massachusetts Avenue<br />
Indianapolis, Indiana 46204-2161<br />
Tel: (317) 860-2905<br />
ch@rubin-levin.net<br />
Many Join, but few are chosen<br />
The President’s Cup Selection Committee is open to candidate recommendations from all<br />
CLLA members. Please review <strong>the</strong> standards below, and if you have an individual you consider<br />
a candidate for <strong>the</strong> President’s Cup Committee, please forward <strong>the</strong>ir name:<br />
Summary of <strong>the</strong> standards for <strong>the</strong> President’s Cup:<br />
• Rendered outstanding service for <strong>the</strong> <strong>League</strong><br />
and its membership<br />
• Elevated <strong>the</strong> image of <strong>the</strong> commercial lawyer<br />
or lay members of <strong>the</strong> <strong>League</strong><br />
• Helped improve <strong>the</strong> practice of commercial law<br />
or of <strong>the</strong> business activities of <strong>the</strong> lay members<br />
of <strong>the</strong> <strong>League</strong><br />
• Conducted his/her personal, business, and professional<br />
life in a <strong>way</strong> that gained respect from of his/her community<br />
TO<br />
Mr. Thomas W. Hamilton,The <strong>America</strong>n <strong>Law</strong>yers Quarterly<br />
853 Westpoint Park<strong>way</strong>, Suite 710<br />
Cleveland, OH 44145-1532<br />
Phone: 800.843.4000; Fax: 440.871.9997<br />
E-mail: tom@alqlist.com<br />
FROM:<br />
RE:<br />
CLLA PRESIDENTS CUP RECIPIENT RECOMMENDATION<br />
Debt 3 May/June 2005<br />
48<br />
Summary of Qualifications and reason for this recommendation:<br />
____________________________________________________<br />
____________________________________________________<br />
____________________________________________________<br />
____________________________________________________<br />
____________________________________________________<br />
MEMBER NAME<br />
CITY<br />
STATE<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY
league business<br />
Editor’s Note: The following speech was delivered by President Mary K.Whitmer on April 9, 2005 during<br />
<strong>the</strong> 75th Chicago Conference.<br />
thing I heard him say was, “This hotel has turn down service.<br />
The maid came in and turned me down.” Voila, we’re<br />
good for at least ano<strong>the</strong>r couple months. Let’s try to keep<br />
our senses of humor about us.<br />
I ask that when you<br />
are on <strong>the</strong> short end,<br />
in communication issues,<br />
or on any o<strong>the</strong>r kind<br />
of issue that you be<br />
forgiving, and stay<br />
thoughtful, and that you<br />
seek out whoever can<br />
help you set <strong>the</strong> matter<br />
straight, and have<br />
a discussion.<br />
Let’s stay positive,<br />
and optimistic, and<br />
let’s have fun tonight<br />
and al<strong>way</strong>s.<br />
Welcome everybody, to <strong>the</strong> Diamond Jubilee of<br />
<strong>the</strong> Midwest Convention. I want to thank<br />
Lenny Abrams and Randy Slovin for a terrific<br />
convention. They worked <strong>the</strong>ir hearts out on it; and we<br />
owe <strong>the</strong>m a round of applause.<br />
Bob and Sunny Caine have left <strong>the</strong> convention because<br />
Sunny’s mo<strong>the</strong>r is ill. I would ask that you keep Bob and<br />
Sunny in your thoughts and prayers.<br />
The Midwest Region gives <strong>the</strong> President a few minutes to<br />
talk about something relevant. Presidents have taken<br />
different approaches to filling this time. Some of <strong>the</strong>m<br />
have taken out a big pile of index cards and launched into<br />
it; some of <strong>the</strong>m did <strong>the</strong> royal wave; one played <strong>the</strong> saxophone,<br />
cracked a joke and sat down. I’m going to use <strong>the</strong><br />
time to run a few ideas by you.<br />
First of all, I want to talk a little about one of <strong>the</strong> things that<br />
I have observed over <strong>the</strong> past year and that is that <strong>the</strong>re has<br />
been an outbreak of optimism in <strong>the</strong> <strong>League</strong>. I think that<br />
optimism is a very powerful force, and I want to encourage<br />
each of our members to find a person or two who are infected<br />
with <strong>the</strong> disease and get close enough to <strong>the</strong>m to catch it<br />
yourself. If you already have caught this bug, get out <strong>the</strong>re<br />
and spread it around. When we are optimistic, we see<br />
possibilities, and when we innovate and change with <strong>the</strong><br />
times, we attract membership and more ideas, possibilities<br />
and optimism. This is a virtuous cycle and I want to see it<br />
spiral us higher.<br />
Actually, optimism has a tendency to lead to a sense of well<br />
being, which <strong>the</strong>n leads to happiness and <strong>the</strong> next thing<br />
you know, you’re developing a sense of humor. If we find<br />
our senses of humor, <strong>the</strong>re will be no stopping us. Building<br />
consensus, seeing issues as strategic, not personal, being<br />
gentle with one ano<strong>the</strong>r in discourse and in deed, all are<br />
direct results that come from a good laugh. I was standing<br />
in <strong>the</strong> elevator, and my beautiful husband of 30 years was<br />
outside <strong>the</strong> elevator as <strong>the</strong> doors were closing. The last<br />
This brings me to my final topic this evening: communication.<br />
It has been said that sometimes we don’t do <strong>the</strong> best<br />
job of communicating. So <strong>the</strong> <strong>League</strong> office has studied <strong>the</strong><br />
problem and this is what we have found. We have discovered<br />
that <strong>the</strong>re are two kinds of information in <strong>the</strong> <strong>League</strong>.<br />
The first kind is <strong>the</strong> type that is informative, that we need<br />
to do our committee jobs, and that we try to have to you a<br />
couple of days or weeks before your event, to review or read<br />
so that you can plan your meetings and your agendas. And<br />
this is <strong>the</strong> type of information that we are having trouble<br />
communicating.<br />
The o<strong>the</strong>r type of information pertains to <strong>the</strong> Super Secret<br />
Plan to Destroy <strong>the</strong> <strong>League</strong>. The SSPDL has all kinds of<br />
parts to it, such as when we talk about putting in a new<br />
education plan, or reviewing <strong>the</strong> schedule of meetings. The<br />
details of <strong>the</strong> SSPDL seem to get to everyone instantaneously.<br />
In fact, if AOL or cable wants to increase <strong>the</strong> speed of<br />
<strong>the</strong>ir high-speed Internet services, <strong>the</strong>y should study <strong>the</strong> relay<br />
times of information about <strong>the</strong> new education initiative. I’m<br />
joking, of course, about <strong>the</strong> SSPDL, but my point is that<br />
your leaders are trying to make a better, more responsive,<br />
more member-driven and more member-service-driven<br />
<strong>League</strong>. We are trying to make it BETTER.<br />
And when you happen to come into information that is<br />
conveyed to you that someone is planning something that<br />
you think is potentially harmful to <strong>the</strong> <strong>League</strong>, I ask that<br />
you give <strong>the</strong> leadership <strong>the</strong> benefit of <strong>the</strong> doubt. I ask that<br />
you be just a little skeptical, that you keep your sense of<br />
humor about you, and that you stay constructive. We have<br />
<strong>the</strong> most open organization in <strong>the</strong> world. Almost every<br />
meeting, including <strong>the</strong> Board of Governors’ meetings, is<br />
open. There is a town meeting before <strong>the</strong> Board of<br />
Governors’ meetings, which is a time set aside for members<br />
to speak <strong>the</strong>ir minds on any issue. Subject to <strong>the</strong> President’s<br />
prerogative, discussion is taken during <strong>the</strong> Board of<br />
Governor’s meetings from <strong>the</strong> floor. There are no super<br />
secrets in <strong>the</strong> <strong>League</strong>, <strong>the</strong>re are no secrets of any kind.<br />
So, I ask for your support and help in making <strong>the</strong> <strong>League</strong> a<br />
better place. I ask that when you are on <strong>the</strong> short end, in<br />
communication issues, or on any o<strong>the</strong>r kind of issue that you<br />
be forgiving, and stay thoughtful, and that you seek out<br />
whoever can help you set <strong>the</strong> matter straight, and have a<br />
discussion. Let’s stay positive, and optimistic, and let’s have<br />
fun tonight and al<strong>way</strong>s. ■<br />
Debt 3 May/June 2005<br />
49
SHOW YOUR PRIDE<br />
Reward<br />
1. Gildan Ultra Cotton Pique Sport Shirt<br />
Double needle stitched seams. Welt knit collar and cuffs.<br />
Pre-shrunk 100% cotton 7.0 ounce extra heavyweight. Three<br />
woodtone buttons on a clean-finished placket with a reinforced<br />
bottom box. Colors available: yellow haze and black.<br />
Adult: S, M, L, XL, 2XL, 3XL<br />
S-XL: $19.50; 2XL: $23.50; 3XL: $23.50<br />
yourself with affordable gifts embroidered<br />
with <strong>the</strong> CLLA logo. Distinguish yourself as a leader<br />
in our profession!<br />
1<br />
2. Predator Golf Club Covers<br />
New for this year, <strong>the</strong> Predator is an oversize design<br />
for today's extra large clubs. Style is <strong>the</strong> Predator<br />
hallmark with accent piping, color block sides,<br />
genuine neoprene stretch bottom and slanted<br />
form-fitting top. Some great features include a front<br />
embroidery panel ideal for personalization and<br />
high quality 12" stocking for shaft protection. $25.00<br />
2<br />
3. Semi-Low Fit, Sport Mesh Cap<br />
Prestige sport mesh 6 section cap with contrasting<br />
sandwich peak. Semi-low fitting, soft-lined front with<br />
pre-curved peak. Matching adjustable self back strap<br />
with tab velcro closure. Imported. New for 2003.<br />
White Mesh Cap: $15.00<br />
Black Mesh Cap: $15.00<br />
4. Badger Hooded Sweatshirt/<br />
Fleece-Lined Jacket<br />
2” elastic waistband and cuffs.<br />
50% cotton/50% polyester hea<strong>the</strong>r<br />
grey sweatshirt fleece lining.<br />
Drawcord on hood with cord locks.<br />
Hooded nylon shell. One inside<br />
right chest pocket. Snap-front storm<br />
flap covers full-zip front. Two outside front<br />
pockets with snap closures. Wind and water resistant.<br />
Colors available: black and navy.<br />
Adult: S, M, L, XL, 2XL, 3XL<br />
S-XL: $45.00; 2XL: $50.00; 3XL: $55.00<br />
4<br />
3<br />
5<br />
5. Cutter & Buck Men’s<br />
Ventana V-Neck Sweater<br />
100% fully combed cotton. Tonal C & B embroidered pennant<br />
on left sleeve above cuff. Year-round weight.<br />
Colors available: canvas hea<strong>the</strong>r, black and<br />
dark navy. $85.00<br />
6<br />
6. Nike Sport Duffel Bag II<br />
Nike covers <strong>the</strong> needs of <strong>the</strong><br />
committed golfer whe<strong>the</strong>r it’s<br />
carrying your gear in Nike’s<br />
Assessories bag. Strategically placed<br />
pockets. Custom-molded handle<br />
for carrying ease.<br />
400 denier nailhead nylon.<br />
$85.00<br />
Coming in 2005<br />
CLLA MERCHANDISE<br />
ONLINE<br />
www.clla.org<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY
CLLA MERCHANDISE<br />
ORDER FORM<br />
The <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® Merchandise Fax-Back Order Form<br />
To place an order, please fill out <strong>the</strong> form below and fax your order with your credit card information to 1-800-210-1496<br />
or mail this form to The <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong> ® at 70 E. Lake Street, Suite 630, Chicago, IL 60601.<br />
For questions about your order, please call your CLLA Apparel Representative at 1-866-514-4438.<br />
Orders require a 3-week lead time for completion. All products are subject to cancellation or back-order from <strong>the</strong> manufacturer.<br />
All discontinued items or back-orders will be communicated after placement of orders.<br />
RETURN POLICY: All items may be returned for a full refund if <strong>the</strong> product has a manufacturer’s defect.<br />
Apparel items cannot be returned for exchange of sizes.<br />
Name ________________________________________________________________________________________________________________________________<br />
Address ______________________________________________________________________________________________________________________________<br />
Phone __________________________________________________________________<br />
Fax ________________________________________________________<br />
Please charge my: ❑ MasterCard ❑ VISA ❑ <strong>America</strong>nExpress<br />
Acct. #__________________________________________________________________________________________________<br />
Exp. Date____________________<br />
Cardholder Signature ___________________________________________________________________________________________________________________<br />
*Shipping & Handling:<br />
Within <strong>the</strong> Continental United States, please add $7.95 for <strong>the</strong> first item<br />
and add $1.85 for each additional item.<br />
Outside of <strong>the</strong> Continental United States, please add $19.85 for <strong>the</strong> first item<br />
and add $1.85 for each additional item.<br />
Merchandise Total<br />
9% Tax (IL Residents Only)<br />
Shipping*<br />
Total<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY<br />
70 E. Lake Street, Suite 630 • Chicago, IL 60601 • 312.781.2000 • www.clla.org
member news<br />
Newly Admitted Members<br />
The following individuals appeared as applicants in <strong>the</strong> <strong>League</strong>’s electronic publication in March and April, 2005. They became members on May<br />
and June 1, 2005 respectively.<br />
Members before whose names as asterisk (*) appears are lay members under Article 2; Section 1, of <strong>the</strong> <strong>League</strong>’s Constitution. Individuals before whose<br />
names a bullet (•) appears are lawyers devoting <strong>the</strong> major portion of <strong>the</strong>ir time to lay business organization listed after <strong>the</strong> new member’s name.<br />
The name of <strong>the</strong> <strong>League</strong> member, if any, referring <strong>the</strong> new member to membership is listed after <strong>the</strong> new member’s contact information.<br />
Debt 3 May/June 2005<br />
52<br />
UNITED STATES<br />
ALABAMA<br />
Birmingham<br />
Angie Ingram<br />
Ingram & Associates, LLC<br />
2013 Second Ave. N.<br />
Birmingham AL 35203<br />
Sponsor:Thomas W. Hamilton<br />
Cleveland OH<br />
CALIFORNIA<br />
Canoga Park<br />
*Mr.Thomas C.Williams III<br />
<strong>Commercial</strong> Capital<br />
Recovery Inc.<br />
6911 Topanga Canyon Blvd. #206<br />
Canoga Park CA 91303<br />
Irvine<br />
Mr. Robert W. Norman Jr.<br />
Houser & Allison,APC<br />
5420 Trabuco Road, Suite 100<br />
Irvine CA 92620<br />
Manhattan Beach<br />
*John P. Schooner<br />
Kinecta Federal Credit Union<br />
1440 Rosecrans Ave.<br />
Manhattan Beach CA 90266<br />
San Francisco<br />
Adam A. Lewis<br />
Morrison & Foerster LLP<br />
425 Market Street<br />
San Francisco CA 94105<br />
DELAWARE<br />
Newark<br />
Mr. Adam R. Elgart<br />
Mattleman Weinroth & Miller<br />
200 Continental Dr., Suite 215<br />
Newark DE 19713<br />
FLORIDA<br />
Coral Springs<br />
Bruce H. Schiller<br />
Yates & Schiller, P.A.<br />
5944 Coral Ridge Drive, #208<br />
Coral Springs FL 33076<br />
Sponsor: Julie E.Yates<br />
Coral Springs FL<br />
Sarasota<br />
Mr. David L. King<br />
Vengroff,Williams &<br />
Associates, Inc.<br />
PO Box 4155<br />
Sarasota FL 34230-4155<br />
GEORGIA<br />
Atlanta<br />
Mr. Robert McDonald<br />
Montlick & Associates, P.C.<br />
17 Executive Park Drive<br />
Suite 310<br />
Atlanta GA 30329<br />
IOWA<br />
Bossier City<br />
Mr. Donald L.Wilson<br />
Landowners Abstract<br />
& Title Corp.<br />
707 Benton Rd., Suite 125<br />
Bossier City IA 71111<br />
ILLINOIS<br />
Chicago<br />
Mr. Richard G. Fonfrias<br />
Debt Terminators<br />
53 West Jackson<br />
Chicago IL 60606<br />
Mr. Peter J. Labate<br />
Holland & Knight, LLP<br />
131 S. Dearborn, 30th Floor<br />
Chicago IL 60603<br />
*Mr. John Moose<br />
<strong>America</strong>n Express Tax and<br />
Business Services, Inc<br />
One South Wacker Drive<br />
Suite 800<br />
Chicago IL 60606-3392<br />
MAINE<br />
Portland<br />
Mr. Edward L.<br />
Zelmanow Esq.<br />
Greenberg & Greenberg<br />
97A Exchange St., Suite 404<br />
Portland ME 04101<br />
MARYLAND<br />
Laurel<br />
*Mr. Christopher J. Barber<br />
Rental and Leasing Services<br />
105 Main Street<br />
Laurel MD 20707<br />
MASSACHUSETTS<br />
Falmouth<br />
Mr. Louis David Ferrari<br />
<strong>Law</strong> Firm of Thomas Kalperis<br />
International, Inc.<br />
17 Academy Lane, Suite One<br />
Falmouth MA 02540<br />
MICHIGAN<br />
Grand Rapids<br />
Mr. John A. Potter<br />
Twohey, Maggini, Muldoon,<br />
Mudie & Sullivan<br />
161 Ottawa Ave., NW<br />
Suite 212<br />
Grand Rapids MI 49503<br />
Traverse City<br />
Mr. Jason Eckerly<br />
Dingeman, Dancer &<br />
Christopherson<br />
100 Park St.<br />
Traverse City MI 49684<br />
NEW JERSEY<br />
Cherry Hill<br />
Mr. Lloyd Markind<br />
<strong>Law</strong> <strong>Of</strong>fices of Andrew Sklar P.C.<br />
411 Route 70 East, Suite 200<br />
Cherry Hill NJ 08034<br />
Mr. David Paul Aaronson<br />
Mattleman Weinroth & Miller<br />
401 Route 70 East<br />
Cherry Hill NJ 08034<br />
NEW MEXICO<br />
Albuquerque<br />
Mr. Charles W. Sullivan<br />
Charles W. Sullivan,Attorney<br />
P.O. Box 3573<br />
Albuquerque NM 87190<br />
CORRECTION<br />
The name of Willard Shelley<br />
of W.E. Shelley & Associates<br />
was incorrectly listed in <strong>the</strong> list<br />
of new members published in<br />
<strong>the</strong> March/April 2005 issue of<br />
Debt 3 . The correct listing is<br />
as follows. The editor<br />
apologizes for <strong>the</strong> error.<br />
DELAWARE<br />
Wilmington<br />
*Mr.Willard Shelley<br />
W.E. Shelley & Associates<br />
304 Hillcrest Ave.<br />
Wilmington DE 19809
member news<br />
NEW YORK<br />
Brooklyn<br />
Mr. Evan C. Hammerman<br />
Hammerman Legal Consultants<br />
420 Sixth Avenue, Suite 12<br />
Brooklyn NY 11215<br />
Fayetteville<br />
*Rickey M. Ru<strong>the</strong>rford<br />
Bankers Healthcare Group, Inc.<br />
113 Chapel St.<br />
Fayetteville NY 13066<br />
Garden City<br />
Cheryl Charles-Duval<br />
<strong>Law</strong> <strong>Of</strong>fices of Cheryl<br />
Charles-Duval<br />
734 Franklin Ave. #573<br />
Garden City NY 11550<br />
New York<br />
Mr. Steven Kaiser<br />
The Catafago <strong>Law</strong> Firm, P.C.<br />
The Empire State Building<br />
350 Fifth Avenue<br />
New York NY 10118<br />
<strong>Law</strong>yer- Solo or with Firm<br />
OHIO<br />
Dublin<br />
*Mr. Albert Cameron<br />
Recovery One LLC<br />
6479 Reflections Drive<br />
Suite 200<br />
Dublin OH 43017<br />
Toledo<br />
Mr. H. Buswell Roberts<br />
Shumaker, Loop & Kendrick, L.L.P.<br />
1000 Jackson<br />
Toledo OH 43624<br />
PENNSYLVANIA<br />
Bensalem<br />
*Susan E. Richards<br />
NCB Managemnet Services, Inc.<br />
3325 Street Road 4<br />
Greenwood Square, Suite 220<br />
Bensalem PA 19020<br />
Is This The Way to Collect<br />
an International Debt?<br />
You Bet It Is!<br />
Bluestone <strong>Law</strong> International is <strong>the</strong> exclusive <strong>America</strong>n law firm<br />
member of <strong>the</strong> TCM Group International—<strong>the</strong> world’s largest<br />
group of independently-owned and operated collection offices.<br />
An Unbeatable Combination . . .<br />
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governed by one Board of Directors and a Code of Operations<br />
This is <strong>the</strong> team used by <strong>the</strong> world’s largest banks, foreign governments,<br />
state universities, and multinationals.<br />
ONE GROUP – MANY COUNTRIES<br />
TCM Group International 2002 World Conference, Amsterdam.<br />
Members in traditional Dutch garb, Vollendam, <strong>the</strong> Ne<strong>the</strong>rlands.<br />
4405 East-West Hwy, Ste 402 • Be<strong>the</strong>sda, MD 20814<br />
301-656-0230 • FAX 301-654-1143<br />
collections@bluestonelaw.com • www.bluestonelaw.com<br />
TENNESSEE<br />
Dickson<br />
*Terry Clark<br />
Credit Bureau of North <strong>America</strong><br />
P.O. Box 550<br />
Dickson TN 37055-0550<br />
Nashville<br />
*Mr. Dave Fill<br />
Frost-Arnett Company<br />
480 James Robertson Park<strong>way</strong><br />
Nashville TN 37219<br />
Sponsor: George E. Buck<br />
Nashville TN<br />
TEXAS<br />
Dallas<br />
*Mr. Kenneth J. Collins<br />
Allied Interstate, Inc.<br />
12655 N. Central Express<strong>way</strong><br />
Suite 925<br />
Dallas TX 75243<br />
Houston<br />
Mr. Deirdre Carey Brown<br />
Waldron & Schneider, LLP<br />
15150 Middlebrook Drive<br />
Houston TX 77058<br />
Brian R. Gaudet<br />
Coats, Rose,Yale, Ryman<br />
& Lee, P.C.<br />
17225 El Camino Real<br />
Suite 240<br />
Houston TX 77058<br />
*Mr. Patrick Hogue<br />
LTD Financial Services, LP<br />
<strong>Commercial</strong> Division<br />
7322 Southwest Free<strong>way</strong><br />
Suite 1600<br />
Houston TX 77074<br />
WASHINGTON<br />
Vancouver<br />
*Chris Abrams<br />
Richard James & Associates<br />
3303 NE 44th Street<br />
Suite B<br />
Vancouver WA 98663<br />
INTERNATIONAL<br />
ENGLAND<br />
London<br />
*Mr. Mark Olson<br />
Moreton Smith International<br />
80 Clerkenwell Road<br />
London UK EC1M 5RJ<br />
GERMANY<br />
Berlin<br />
Mr. Andreas Langner<br />
Langner <strong>Law</strong> <strong>Of</strong>fices<br />
Bellevuestr. 1<br />
10785 Berlin<br />
Germany<br />
Sponsor: Bernard D'Orazio<br />
New York NY<br />
GUATEMALA<br />
Mr. Cristian Novales-<br />
Schlesinger<br />
Abogados y Notarios<br />
Novales<br />
Avenida La Reforma 10-00<br />
Zona 9<br />
Condominio Reforma<br />
Despacho 5B<br />
Guatemala<br />
Centro <strong>America</strong><br />
*Mr. Javier<br />
Novales-Schlesinger<br />
Corpocredit<br />
Avenida Reforma 10-00<br />
Zona 9 29 Ave. 3-31 Zona 15<br />
Guatemala<br />
Central <strong>America</strong><br />
LAW STUDENTS<br />
ILLINOIS<br />
Chicago<br />
Kenneth DucDuong<br />
The John Marshall <strong>Law</strong> School<br />
315 South Plymouth Court<br />
Chicago IL 60601<br />
WASHINGTON<br />
Vancouver<br />
Mr. Richard Hopp<br />
Gregory A. Nielson P.S.<br />
P.O. Box 873292<br />
Vancouver WA 98687<br />
Debt 3 May/June 2005<br />
53
Debt 3 May/June 2005<br />
54<br />
member news<br />
Among Our Members…<br />
Weltman, Weinberg & Reis, L.P.A. announces <strong>the</strong> introduction<br />
of <strong>the</strong>ir Corporate & Financial Services practice<br />
group. The Group, headed by Robert Rutkowski, will<br />
include <strong>the</strong> following areas of expertise: regulatory<br />
compliance, contract negotiation, employment law, secured<br />
transactions, real estate transactions and banking law.<br />
The service will be handled firm wide throughout<br />
Illinois, Indiana, Kentucky, Michigan, New Jersey, Ohio<br />
and Pennsylvania. Mr. Rutkowski can be reached at<br />
216-739-5004 or by email at rrutkowski@weltman.com.<br />
Attorney Robert Kaplan has joined <strong>the</strong> Kohn <strong>Law</strong> Firm.<br />
Mr. Kaplan is <strong>the</strong> former deputy counsel for <strong>the</strong><br />
Wisconsin Gas Company, concentrating his practice in debt<br />
recovery for <strong>the</strong> utility company. He will be handling supplementary<br />
exams and garnishment hearings, as well<br />
as serving as <strong>the</strong> supervising attorney for <strong>the</strong> firm’s paralegal<br />
department. The Kohn <strong>Law</strong> Firm is located at 312 East<br />
Wisconsin Avenue, Suite 501, Milwaukee, Wis. 53202. The<br />
firm’s phone number and fax are 414-276-0435 and<br />
414-271-6046. The Firm’s Web site is www.kohnlaw.com.<br />
Jonathan Mason of <strong>the</strong> Ohio and Kentucky based law firm<br />
of Mason, Schilling & Mason, Co., L.P.A. has been named<br />
an Ohio Super <strong>Law</strong>yer for 2005, a designation to <strong>the</strong> top 5%<br />
of Ohio lawyers. Mr. Mason focuses his practice in <strong>the</strong> areas<br />
of banking and financial law, bankruptcy and workouts, and<br />
creditor’s rights. Mr. Mason has been a member of <strong>the</strong><br />
CLLA for over 30 years. Mr. Mason practices in <strong>the</strong> Firm’s<br />
Cincinnati office located at 11340 Montgomery Rd., Suite<br />
210 Cincinnati, Ohio 45249. Telephone: (513) 489-0829;<br />
Facsimile: 513-489-0834; Web site: www.mason-law.com.<br />
The Gurstel <strong>Law</strong> Firm, P.A. announces that Heidi<br />
L. Staloch has become a shareholder of <strong>the</strong> firm.<br />
Along with becoming a shareholder, Ms. Staloch<br />
will assume <strong>the</strong> role as <strong>the</strong> firm’s chief operating<br />
officer. The firm also announces that Svetlana<br />
Denekamp and Michael Etmund have joined <strong>the</strong><br />
firm as associates. The firm now has seven lawyers<br />
practicing exclusively in <strong>the</strong> area of creditor’s rights<br />
throughout <strong>the</strong> entire State of Minnesota. Todd L.<br />
Gurstel will become <strong>the</strong> firm’s chief executive<br />
officer. The Gurstel <strong>Law</strong> Firm, P.A. is located at<br />
401 North Third Street, Suite 590, Minneapolis,<br />
Minn. 55401. Telephone: (612) 843-1081;<br />
Facsimile: (612) 664-8222; www.gurstel.com.<br />
Smith Debnam Narron Wyche Saintsing<br />
& Myers, L.L.P. announces that Hea<strong>the</strong>r N.<br />
Johnson joins <strong>the</strong> firm’s Charlotte office. She will<br />
concentrate her practice in commercial litigation,<br />
commercial real estate and creditor’s rights. The<br />
Firm’s Charlotte office is located at The Rotunda<br />
Building, 4201 Congress Street, Suite 460<br />
Charlotte, N. C. 28209. Telephone: (704) 643-<br />
3220; Facsimile: (704) 643- 3898; Web site:<br />
www.smithdebnam.com.<br />
Jaffe Raitt Heuer & Weiss, P.C. announces <strong>the</strong><br />
following new members: Michael S. Khoury of <strong>the</strong><br />
Technology Practice Group; Michael F. Jacobson of<br />
<strong>the</strong> “<strong>Commercial</strong> Litigation Practice Group and<br />
Emily A. Minns of <strong>the</strong> Real Estate Practice Group.<br />
The Firm fur<strong>the</strong>r announces <strong>the</strong> addition of <strong>the</strong><br />
following associates: Marko J. Belej (Tax Group),<br />
Mark G. Cooper (Litigation Practice Group),<br />
Michael Di Laura and Julie Skidmore (Insolvency<br />
& Reorganization Group), Jeremy Gordon (Real<br />
Estate and Tax Groups).<br />
Tatum S. Hilmoe, Attorney at <strong>Law</strong>, has relocated his office<br />
to 3443 Camino Del Rio South, Suite 207, San Diego, Calif.<br />
92108. The telephone and facsimile numbers are (619) 284-<br />
9022 and (619) 284-9023 respectively. The Firm’s Web site<br />
is www.hilmoelaw.com.<br />
Nicholas A. Franke and Milton C. Spaulding have been<br />
elected partners of Spencer Fane Britt & Browne LLP, a<br />
law firm with offices in St. Louis; Kansas City, Mo.;<br />
Overland Park, Kan.; and Omaha, Neb.<br />
Anthony F. Picheca, Jr., of Anthony F. Picheca, Jr. P.C., in<br />
Far Hills, New Jersey, was an award recipient when <strong>the</strong> New<br />
Jersey Commission on Professionalism in <strong>the</strong> <strong>Law</strong> presented<br />
<strong>the</strong> 2004 Professional <strong>Law</strong>yer of <strong>the</strong> Year Awards. The<br />
Professional <strong>Law</strong>yer of <strong>the</strong> Year Award is given annually to<br />
those attorneys who have demonstrated an extraordinary<br />
commitment to professionalism throughout <strong>the</strong>ir careers in<br />
<strong>the</strong> law and to those lawyers who, by virtue of <strong>the</strong>ir conduct,<br />
competence and demeanor, set a positive example for o<strong>the</strong>rs<br />
in <strong>the</strong> profession. Mr. Picheca has been a member of <strong>the</strong><br />
CLLA for over 25 years. Mr. Picheca can be reached at<br />
908-234-0536 or via email at apicheca@msn.com.<br />
DONATIONS<br />
Robert S. Bernstein of <strong>the</strong> Bernstein <strong>Law</strong> Firm, Pittsburgh,<br />
Penn. in memory of Barbara Thorne.<br />
Tom and Nancy Hamilton of <strong>the</strong> <strong>America</strong>n <strong>Law</strong>yers<br />
Quarterly, Cleveland, Ohio in memory of Barbara Thorne.<br />
■<br />
Take <strong>the</strong><br />
hassle<br />
out of<br />
litigation<br />
by selecting a<br />
full service<br />
law firm<br />
with collection<br />
and<br />
litigation<br />
support<br />
under one roof.<br />
Submissions for Member News<br />
may be sent to <strong>the</strong> <strong>Commercial</strong><br />
<strong>Law</strong> <strong>League</strong> of <strong>America</strong> by mail,<br />
fax or e-mail to:<br />
Member News,<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong><br />
of <strong>America</strong> ®<br />
70 E. Lake Street<br />
Suite 630, Chicago, IL 60601<br />
312-781-2000<br />
fax: 312-781-2010<br />
e-mail: clla@clla.org<br />
The <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> ®<br />
reserves <strong>the</strong> right to determine<br />
whe<strong>the</strong>r to publish submissions<br />
or photos and to edit<br />
submissions without prior<br />
notice to those submitting <strong>the</strong><br />
announcement.<br />
Congratulations to<br />
Robert W. Kohn<br />
years of excellence<br />
45 in servicing <strong>the</strong><br />
credit granting community.<br />
1960 – 2005<br />
Robert W. Kohn, Senior Partner<br />
Robert E. Potrzebowski, Jr., Managing Partner<br />
Mat<strong>the</strong>w J. Richburg, Associate Attorney<br />
Meghan P. MacKelly, Associate Attorney<br />
David A. Ambrosh, Associate Attorney<br />
Jason D. Hermersmann, Associate Attorney<br />
Robert L. Kaplan, Associate Attorney<br />
312 E. Wisconsin Avenue, Suite 501<br />
Milwaukee WI 53202-4305<br />
(414) 276-0435 or (800) 451-1791<br />
Fax: (414) 271-6046<br />
e-mail: KLF@kohnlaw.com<br />
http://www.kohnlaw.com
MEMBER BENEFITS<br />
member news<br />
Manage Risk…Don’t Take One Unnecessarily<br />
By Mark V. Matz, Chair CLLA Member Benefits Sub-Committee<br />
Would you...<br />
• Ride a bike without a helmet?<br />
• Go white water rafting without a life vest?<br />
• Jump out of a plane without a parachute?<br />
• Risk losing many hours of your valuable working time to an<br />
inadequate or non-existent backup system?<br />
If <strong>the</strong> answer is no (and it should be), please read on about one of CLLA’s newest<br />
member benefit programs: Green Backup.<br />
How and where do you backup your computer data? How often do you create a<br />
backup for your files; <strong>the</strong> important ones you can’t afford to lose and all <strong>the</strong> o<strong>the</strong>rs<br />
which would just be an annoyance if you couldn’t find <strong>the</strong>m? Do you even<br />
backup your data on a regular basis?<br />
Nearly everyone <strong>the</strong>se days uses computers to create and store important documents,<br />
financial information, pictures, and a host of o<strong>the</strong>r information. Now that<br />
we’re in <strong>the</strong> 21st Century, who can think of running <strong>the</strong>ir lives (or business practice)<br />
without some form of computers? So much in our lives is dependent on <strong>the</strong>se<br />
technological marvels. Obviously, we all need to make sure that this substantial<br />
dependence is well placed, easily retrievable and soundly secured.<br />
We all know we should backup our computer hard drives on a regular basis so that<br />
we are only at risk of losing a minimal amount of data. For many people and businesses,<br />
that should require a daily back up of computer data. Certainly, <strong>the</strong> interval<br />
between backups should be no more than weekly. If backups were easy to do,<br />
it would be done more often. Backups traditionally require staff attention to<br />
replace <strong>the</strong> storage media or ship <strong>the</strong> backup media to a remote location in case<br />
of catastrophic loss.<br />
The company working with <strong>the</strong> CLLA, Green Backup provides a solution for any<br />
individual or business that has come to realize that <strong>the</strong>ir backup practices are not<br />
what <strong>the</strong>y should be. For those who want to stop worrying about data protection<br />
and integrity, this is an easy and cost-effective solution.<br />
For a nominal monthly charge, <strong>the</strong> RStorage System automatically backs up <strong>the</strong><br />
computer data files that have changed since <strong>the</strong> last backup. The actual storage<br />
charge varies with <strong>the</strong> amount of data being stored, but <strong>the</strong> system takes care of<br />
<strong>the</strong> entire process. This service is done consistently on a schedule you designate.<br />
It will even turn off <strong>the</strong> computers when it is done backing <strong>the</strong>m up for you. Truly<br />
automated, with twice encrypted for extra confidentiality and al<strong>way</strong>s available for<br />
retrieval and restoration, it doesn’t matter what happens to your computer equipment,<br />
office space, or geographical location.<br />
We all have many o<strong>the</strong>r priorities in life to keep our business running efficiently.<br />
Why not take a moment to contact this company (which was selected to provide<br />
CLLA Members a special offer) and put your mind at ease about this important<br />
safeguard. Green Backup understands <strong>the</strong> special protection needed for clientattorney<br />
relationships. Their RStorage System is fully compatible with major debt<br />
collection software used by <strong>League</strong> members.<br />
We’re al<strong>way</strong>s looking to review new and valuable benefit programs for<br />
CLLA Members. If you have heard of some program that would be beneficial<br />
to your peers, please let me, any member of <strong>the</strong> committee or<br />
Cheryl Palombizio at <strong>the</strong> CLLA office know about it so we can do <strong>the</strong><br />
research. We look forward to hearing from you. ■<br />
CLLA<br />
members<br />
encouraged to submit<br />
articles for DEBT 3<br />
Have an idea for an article?<br />
Why not write for Debt 3 ?<br />
Debt 3 wants to increase <strong>the</strong> number of articles<br />
it publishes written by members of <strong>the</strong> CLLA.<br />
There is a tremendous wealth of knowledge among<br />
CLLA members that would be beneficial<br />
to all if shared. Debt 3 regularly runs articles<br />
on law office or collection agency management,<br />
technology and marketing.<br />
Articles on practical tips in practicing law<br />
are welcome as well.<br />
Feature articles and analysis of new<br />
and significant cases are encouraged.<br />
If you have an article idea or would like<br />
to submit an article,<br />
simply e-mail it to: clla@clla.org, fax it to 312-781-2010<br />
or call <strong>the</strong> CLLA headquarters at 312-781-2000.<br />
They can be reached by phone at 866.9-BACKUP (866.922.2587) or online at<br />
www.greenbackup.com (be sure to enter coupon GBCLLA for your special rate<br />
where you can save up to 50%). You can also try it risk-free for 30 days; so don’t<br />
wait! Contact <strong>the</strong>m today and forget worrying about losing important information<br />
tomorrow.<br />
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY<br />
Debt 3 May/June 2005<br />
55
viewpoint<br />
There’s Something About Mary…<br />
David R. Watson is <strong>the</strong><br />
Executive Vice President<br />
of <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong><br />
<strong>League</strong> of <strong>America</strong>.<br />
He can be reached<br />
at 312-781-2000 and via e-mail<br />
at dwatson@clla.org.<br />
Debt 3 May/June 2005<br />
56<br />
“The true measure<br />
of leadership is influence –<br />
nothing more,<br />
nothing less.”<br />
—John G. Maxwell,<br />
“<strong>Law</strong> of Influence<br />
She entered <strong>the</strong> CLLA presidency <strong>the</strong> same <strong>way</strong> she<br />
leaves it – with grace, style and vision. Mary<br />
Whitmer is one of those people that just makes you<br />
smile. She fills any room she is in with a positive energy.<br />
Those of you who were present in Newport, Rhode Island<br />
last July when our president, Mary Whitmer, adorned in<br />
her elegant red gown, gave her inaugural speech know<br />
exactly what I mean. If you had <strong>the</strong> pleasure of listening<br />
to that speech (or any of <strong>the</strong> o<strong>the</strong>r subsequent speeches<br />
given by Mary) you just knew we could expect something<br />
special from <strong>the</strong> first woman president of <strong>the</strong> <strong>Commercial</strong><br />
<strong>Law</strong> <strong>League</strong> of <strong>America</strong>. And when she ended her speech<br />
with “buckle up, baby,” we knew <strong>the</strong> “<strong>League</strong>” would never<br />
be <strong>the</strong> same.<br />
Well, Mary has not disappointed us. She has accomplished<br />
things in her year as president that have been accomplished<br />
by few before her. From her first day as president of this<br />
organization, she has managed to paint a clear path of success<br />
for <strong>the</strong> CLLA and she has moved us steadily towards<br />
positive and necessary change. She has offered leadership<br />
opportunities for those who would embrace <strong>the</strong>m. She has<br />
pioneered leadership training for those in leadership positions<br />
within <strong>the</strong> CLLA who were willing to follow her –<br />
spearheading leadership seminars and a thoughtful vision<br />
of how a successful organization should function.<br />
Mary has also offered a financial perspective for this organization<br />
that has been long over due. Decisions like restructuring<br />
<strong>the</strong> National Convention this year in Toronto so that<br />
it would stand on its own financially have been difficult,<br />
but necessary. Careful and sound evaluation of all <strong>League</strong><br />
contracts to ensure <strong>the</strong> <strong>League</strong> is being fiscally responsible<br />
has been of critical importance to our president.<br />
Mending valuable but neglected relationships with o<strong>the</strong>r<br />
associations like NARCA, ACA, IACC and <strong>the</strong> Debt<br />
Buyers has also been of value to Mary. Our president has<br />
recognized for <strong>the</strong> CLLA to survive, we must do so in cooperation<br />
with o<strong>the</strong>r organizations serving <strong>the</strong> commercial<br />
law, credit and collection industries.<br />
Under Mary’s leadership and through her vision, <strong>the</strong><br />
<strong>League</strong> has significantly improved our publications and<br />
member benefits. Improving <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> Bulletin<br />
and creating Debt 3 was one of Mary’s primary objectives. In<br />
Debt 3 , Mary saw <strong>the</strong> face of <strong>the</strong> <strong>Commercial</strong> <strong>Law</strong> <strong>League</strong>.<br />
She recognized that this publication was <strong>the</strong> <strong>League</strong>’s calling<br />
card. Her vision was to have a publication that was<br />
informative to our members and o<strong>the</strong>rs in <strong>the</strong> industry, but<br />
offered some fun, creative pieces as well. She saw that this<br />
publication was a means by which <strong>the</strong> <strong>League</strong> could attract<br />
and involve young members. She was right. The magazine<br />
has received rave reviews from our membership. The external<br />
marketplace has also responded. Authors from around<br />
<strong>the</strong> country are asking to have <strong>the</strong>ir articles published in<br />
Debt 3 .<br />
Mary recognized that we must continue to provide value for<br />
our membership dues. Our member benefit program with<br />
industry service providers has expanded from literally nothing<br />
to having real, tangible, bottom-line impacting member<br />
benefit programs for members of <strong>the</strong> <strong>League</strong>. Lois <strong>Law</strong> (up<br />
to 60% off research/public records materials), Green<br />
Backup (discounted computer system back up and storage),<br />
Com Haus (discount faxing service), Q-law collection<br />
management software (significant savings for 5-10 person<br />
licenses) and o<strong>the</strong>rs are now available to members of <strong>the</strong><br />
CLLA. Mary has envisioned providing unparalleled value<br />
for our membership.<br />
Our website, under Mary’s leadership, is unrivaled in its<br />
content and its ability to provide timely information to our<br />
members and to <strong>the</strong> world. News agencies like CBS Evening<br />
News are now contacting <strong>the</strong> CLLA because of <strong>the</strong> work<br />
undertaken as part of Mary’s vision to ensure we are keeping<br />
<strong>the</strong> <strong>League</strong> and our members at <strong>the</strong> fore of <strong>the</strong> information<br />
super high<strong>way</strong>.<br />
Our own “house” is in better order today than it was when<br />
Mary took office. Thanks to her leadership, we have been<br />
able to add competent staffing, provide improved service to<br />
our membership and at <strong>the</strong> same time save money for <strong>the</strong><br />
organization.
Perhaps most significant has been Mary’s “relentlessly positive”<br />
attitude through it all. She has addressed tough issues<br />
and been a truly positive leader. Many of you will recall an<br />
article I wrote earlier this year that outlined what makes a<br />
truly great leader. In The 21 Irrefutable <strong>Law</strong>s of Leadership,<br />
John G. Maxwell cites <strong>the</strong> “<strong>Law</strong> of Influence.” He says,<br />
“The true measure of leadership is influence – nothing<br />
more, nothing less.” If you don’t have <strong>the</strong> ability to positively<br />
influence o<strong>the</strong>rs, you will never be able to effectively lead.<br />
This year as president, Mary Whitmer has had a positive<br />
influence on so many aspects of <strong>the</strong> CLLA. She has lead by<br />
example, and her relentlessly positive pursuit of <strong>the</strong> next<br />
generation of <strong>the</strong> CLLA has helped us all grow to be a far<br />
better and more thoughtful organization. Thank you,<br />
Mary. You have been a GREAT and GRACIOUS leader. ■<br />
viewpoint<br />
ADVERTISERS INDEX<br />
Bluestone <strong>Law</strong> International 53<br />
Bressler-Duyk <strong>Law</strong> Firm 24<br />
<strong>Commercial</strong> Legal Software 46<br />
Hesse and Larsey 47<br />
Hubbard Systems 48<br />
JS Technologies, Inc. 35<br />
Kohn <strong>Law</strong> Firm S.C. 54<br />
Loislaw<br />
YOUR CANADIAN LITIGATION CONNECTION<br />
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International Litigation Group<br />
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Back Cover<br />
Mason, Schilling & Mason Co. LPA 25<br />
Roe Wallace Esteve Taroff & Taitz, LLP 29<br />
Ross & McBride LLP 57<br />
YouveGotClaims 25<br />
➤ Canadian Litigation, Arbitration & ADR<br />
➤ Enforcement of U.S. Judgments in Canada<br />
➤ Business Litigation<br />
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Member Builders<br />
Rewarded<br />
The CLLA Membership Committee is continuing<br />
its member building campaign for 2005.<br />
Current members who recruit new members to<br />
<strong>the</strong> <strong>League</strong> will be rewarded with up to a $50<br />
“coupon” redeemable toward annual dues or<br />
for CLLA conference registration fees.<br />
In order to receive a “coupon” for recruiting a<br />
member, <strong>the</strong> recruiting member’s name must<br />
be included on <strong>the</strong> new member’s application.<br />
Once <strong>the</strong> application is received, <strong>the</strong> coupon will<br />
be forwarded to <strong>the</strong> recruiting member. The<br />
coupon will be good for 12 months from <strong>the</strong><br />
issue date and will be for an amount equal to <strong>the</strong><br />
lesser of $50 or <strong>the</strong> new member’s annual dues.<br />
Accumulated credits, for any calendar year, cannot<br />
exceed <strong>the</strong> member’s current annual dues.<br />
For more information about this program,<br />
contact <strong>the</strong> CLLA offices for assistance<br />
at 312-781-2000.<br />
1 King Street West, 10th floor, P.O. Box 907 Hamilton, Ontario, Canada, L8N 3P6<br />
Contact: Jon-David Giacomelli or Chris MacLeod • Toll Free: 866-526-9800<br />
E-mail: jgiacomelli@rossmcbride.com • Web: http://www.rossmcbride.com/international<br />
Debt 3 May/June 2005<br />
57
<strong>Commercial</strong> <strong>Law</strong> <strong>League</strong> of <strong>America</strong><br />
LEADING THE WAY