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In this issue: Letters to the Editor In case you haven’t received the word, The Free Press has instituted a "Letters to the Editor" column. If you don’t want to take time out of your busy schedule to do research for a scholarly article, if you have a suggestion, recommendation, or constructive criticism to direct to the Section leadership or the Free Press editorial board, or if you just want to "vent" (in a non-abusive manner, of course), you will now have a forum. You can submit a letter any time it suits your fancy, and you need not wait until just prior to the publication of an edition of the Free Press. Submissions will be kept on file for future publication. Please submit your letters to Nicholas D. Krawec, co-chair of the CRS Newsletter Committee. The Free Press ? Best Feature Article Award The Creditors' Rights Section will annually recognize outstanding articles submitted to The Free Press, with a "Best Feature Article Award" to be presented to the author of the winning article, at the Creditors’ Rights Section general membership meeting at the CLLA Eastern Regional Meeting in New York. Articles submitted for the Fall, Spring and Summer editions of The Free Press will be eligible for the award and will be considered for the award if so requested by the author. Any articles submitted for the Summer edition of the Free Press for consideration for the Best Feature Article Award must be submitted to the Free Press by May 15, and judging of all articles submitted for the Award will take place over the summer. Each year, the Best Feature Article Award will be presented in New York, for the best feature article submitted within the previous year. The following criteria should be adhered to for articles submitted for consideration for the Award: 1. Article subjects should be educational in nature, on a creditors’ rights, debt collection, bankruptcy or creditors’ rights practice management related topic. 2. Authors must be a member of the CLLA. 3. Articles must be original to The Free Press. Reprints will not be accepted. 4. Each author may submit one article for consideration during any award year. However, authors awarded the Best Feature Article Award the previous year may submit a new article for consideration the following year. 5. All entries will be judged, and at least three (3) entries must be received for the award to be given. If less than three (3) entries are received, honorable mention certificates will be distributed to the participating authors. 6. All submissions are final, and no additions or changes are permitted to the entry after receipt by The Free Press editors. 7. All articles must be submitted in Word formal, via e-mail to nkrawec@bernsteinlaw.com. Any questions may be directed to Nick Krawec, (412) 456-8103, or Brenda Majewski, (414) 276-0435. Your subscription You have been subscribed to this list as part of your membership in the Creditors Rights Section of the Commercial Law League of America. Changes to your e-mail address and all other comments can be sent to crs@clla.org CLLA 70 East Lake Street, Suite 630 Phone: 312-781-2000 Newsletter design by: |
The Free Press - Volume 2, Summer 2006 Report from the Chair
One of John F. Kennedy’s most famous quotations comes from his inauguration, where he stated, “And so, my fellow Americans: ask not what your country can do for you - ask what you can do for your country.” To borrow from JFK, we are asking that you take some time to work for the benefit of the CLLA and the CRS. But, we are not asking you only to give; you can get just as much from the CLLA and the CRS as you give. The business opportunities you gain from attendance at convention functions can expand if you become more deeply involved in the League and your Section. Simply put, the more people know you through your involvement with the Section, the more likely sources of business will think of you when they have business in your area to forward. If you can prove your competency through submissions to The Free Press or committee work, agencies, law lists and forwarding attorneys will feel more confident forwarding business to you. One opportunity to get involved without a huge investment of time or money is to participate in the formation of the CRS forms bank. We are currently gathering sample pleadings from each state to include in a directory to be maintained on line. The forms will be available as a resource to CRS members to deal with routine actions in a collection practice. As the forms bank grows, the value of this resource to our members will expand to include more complex legal pleadings. Rick White, of Tulsa, Oklahoma, is in charge of assembling these submissions to comprise the forms bank. We have a goal of having the forms bank up, running and available to our members by this fall. Although Rick will shortly be sending out an e-mail requesting forms from members in each state, you need not wait to make these submissions to Rick. Please consider taking a few minutes to e-mail pleading forms from your state to Rick at rwhite@barberbartz.com. If you can get more deeply involved, we are currently accepting nominations for four seats on the Executive Council, as well as for the position of Secretary. The elections are being held in New York, and the deadline for the submission of nominations is September. The nominating chairman is past Chair Jeff Rubin, who can be reached at jeff@mialaw.com. If you have been considering becoming more deeply involved with the largest and most dynamic Section of the League, please submit your name for consideration to Jeff. A proposal was presented at the Chicago meeting to change the election cycle for electing our officers. Currently, our officers are elected at the Fall Conference held in New York every November. A proposal was passed by the current Board to change the bylaws to have the elections coincide with the national elections, which are held in April at the Spring Conference in Chicago. There are good arguments both for and against the proposal, and it promises to be a hot issue when the topic comes up for discussion and vote among our membership in New York. Please plan on attending the New York Conference in November to have your say in this important change in the operation of the CRS. If you missed the educational programming in Chicago, you missed some of the best educational opportunities available in the country. Nationally acclaimed speaker, Professor James McElhany, provided an all-day seminar, and we participated with both the Bankruptcy Section and the Agency Section in presenting educational programs to benefit our membership. We are in the process of planning a seminar for the Fall New York conference dealing with privacy issues and concerns which affect our practices. If you have expertise in this area, I would encourage you to contact Matt Burkinshaw at mburkinshaw@burkinshawlaw.com to provide input which can inform and benefit our membership in the rapidly changing rules governing privacy restrictions in our practices. If you have further ideas of educational programs which may benefit our membership, please contact Matt. As many of you may be aware, the CLLA Board recently approved attorney affiliate memberships with the Agency Section. As part of the affiliate membership program, the Agency Section has created two Board positions for affiliate members. A number of CRS members have joined the Section as affiliate members, and several CRS members are running for the affiliate Board position. Marc Bressler, David Franklin, Mark Sheriff and Rick Thomas, all active CRS members, are running for the two affiliate positions on the Agency Section Board, with internet voting occurring during July. If you are an affiliate member of the Agency Section, I would encourage you to support our CRS members. Finally, I cannot close without mentioning the upcoming National Convention in Asheville. This is the final National Summer Convention for the CLLA, and although I am looking forward to attending, it is bittersweet in that it may be the last time our CLLA extended families may meet for summer fun and games. My kids have grown up with CLLA Summer conventions, as have many in the League, and many of the CLLA children have gone on to become active and contributing members of the League as adults. We will miss having this opportunity to meet without the time pressures and constraints of the busier New York and Chicago conferences. I would encourage any who are on the fence about attendance in Asheville to take this opportunity to sign up and attend for one last hurrah; you’ll be glad you did! I hope to see many of you in North Carolina on July 5! Letters to the Editor:We have no letters this issue. Washington Legislative ReportBy David P. Goch, Esq. On June 12th, HR 5585, the Financial Netting Improvements Act of 2006 was introduced. The primary purpose of the bill is to ease systems for mortgages and credit unions. The bill, primarily a banking type bill, was referred to BOTH the House Financial Services Committee and the House Judiciary Committee. SEC. 7. COMPENSATION OF CHAPTER 7 TRUSTEES; CHAPTER 7 FILING FEES. (a) Amendments to Title 11 of the United States Code- (1) COMPENSATION OF CHAPTER 7 TRUSTEES- Section 330(b)(1) of title 11, (2) RELATED AMENDMENTS- Section 330(b) of title 11, United States Code, is amended-- (A) by striking `(1)', and (b) Amendments to Title 28 of the United States Code-
United States Code, as amended by section 10101 of Public Law 109-171, is amended by striking `$245' and inserting `$300', and (2) UNITED STATES TRUSTEE FUND- Section 589a(b)(1)(A) of title 28, United States Code, is amended by striking `40.46' and inserting `29.67'. (c) Related Amendment Regarding Collections and Deposits of Miscellaneous (d) Conforming Amendment- Section 10101(a) of Public Law 109-171 is amended (e) Effective Date; Application of Amendments- The amendments made by this SEC. 8. SCOPE OF APPLICATION. Subject to section 7(e), the amendments made by this Act shall not apply to any cases commenced under title 11, United States Code, or appointments made under any Federal or State law, before the date of the enactment of this Act. In other news, Rep. Steven Rothman (D-NJ) asked the Internal Revenue Service on June 19th to stop its private debt collection program until Congress reviews it. H.R. 5576, which passed on June 14th, contains a provision that prevents the IRS from using appropriated funds to hire private debt collectors. The Internal Revenue Service has said that it must outsource the work due to "budget scoring rules for the agency and because of the inadequate funding from Congress." The IRS projects that private collection would bring in $54 million in fiscal year 2007 in conjunction with IRS collectors. "I simply cannot understand why the IRS would negotiate 22 to 24 percent commission...when this same work done by IRS' own employees costs only 3 percent," Rothman said. Spotlight on Sidney S. Friedman, the President-Elect of the CLLAInterview by Nicholas D. Krawec, Esq.
Residence/Hometown: Baltimore, Maryland Education: University of Maryland Family: Wife - Married 29 years to Fran Friedman. Two children both living in Baltimore: Alison - 27 years of age Graduated, University of Maryland Law School, May 2006, Sitting for Bar; Michael - 23 years of age, Works for a non-profit company, Best Buddies. Areas of practice and specialties: General litigation, creditors right’s specialist, Pre-Paid Legal Plan What year did you join CLLA?: Joined the CLLA in 1976, I think, but it is so long ago, I am not certain. What other offices have you held in the CLLA?: Every office in the Eastern Region and every office in the Creditors Right’s Section, including Education Chair. Board of Governors 2001 as CRS Rep., and then elected to full three year term on Board of Governors in 2002 as Attorney Board Member, President Elect 2005-2006. Tell us about your life activities away from the office: Board of Governors, Suburban Country Club, Public Speaking in generating business for my Pre-Paid Legal Plan business, participation and ownership of private companies with my law partner, Edward Friedman, building an addition on my home for my elderly in-laws. Tell us about the path you followed within the League that helped to get you to this position: I started in 1990 by asking my law partner, Sandy Harris, a former CLLA president, how I could get active. He tried to explain the byzantine structure of the League and then said I should approach Richard Sugarmann, who would point me in the right direction to get involved in the newly formed Creditors Right’s Section. I worked my way up through the CRS and then through the Eastern Region and then onto the Board of Governors. What qualities do you feel that you will bring to the job of President of the CLLA?: I try to listen to all sides in a discussion, make a decision and carry it through. I am not afraid of hard work and I have a sanguine belief in the future of the League. What goals would you like to achieve for the League during your term in office?: Continue the restructuring and reformatting of league activities to bring it in line with current usage and needs of our members, increasing exhibitor attendance, and sponsorship revenue at our Fall and Spring Conferences by restructuring our meeting format; increasing membership by reaching out to similar organizations in our industry, such as, NACM, TMA, DBA, and NABT, to form strategic alliances or partnerships with them by sharing our educational programs; and furthering Mary Whitmer’s goal of creating a Commercial Law League education institute. What advice would you give to young attorneys who join the League, and who aspire to a leadership role such as yours?: Get active. Participate in League, section and region committees and conferences. Introduce yourself to new people at every conference. Speak up and let your voice be heard. When you’re not practicing law, or tending to League matters, what do you do for fun and relaxation?: Golf, exercise, taking walks with my wife Fran and our golden retriever, read, watch movies at home, drink and dine, and spend time with my family. If you did not become a lawyer, what do you think would have become your life’s work?: What one thing do you think we would be surprised to know about you that most people don’t already know?: I recently became an Irish citizen. My other surprises are too shocking to reveal. What is your favorite quote or “words to live by?”: Veritas Dictums, speak the truth, or Veritas Vos Liberabit, the truth shall set you free. Did you have any role models when you were growing up and in your career in practicing law thus far? If so, who are they and why were they your role models?: Judge David Ross, for whom I clerked while in law school: he was dignified, punctual, and had an absence of bias or prejudice. Edward Friedman, my law partner, who works quickly and gets it done today, not tomorrow. Melvyn Weinstock, my law partner, for courtroom inspiration. Don’t be afraid to go down that road where others fear to tread. If you could have dinner with one famous person in history, and one famous person alive today, who would they be, and why?: Winston Churchill, the greatest leader of the twentieth century, who was a great writer, great wit, and great raconteur. Robin Williams, for a good laugh, and since I work with some manic people, I will feel right at home. What is your favorite: Car: Mercedes Benz Committee Reports: THE UNIFORM LAWS COMMITTEENo updates to report at this time. Brief Update on Practice GroupsBy Ian Bardin, Esq. The further development of the Practice Groups will be discussed in Asheville. We intended to have some interactive input in Chicago, but the logistics did not work out. For those of you who will be in Asheville, your input, and a cold beer, will be appreciated. Editor’s Note: Ian Bardin, Esquire, Chair of the Practice Groups Committee, is a sole practitioner with offices in Playa del Rey and La Mesa, CA. His practice involves primarily commercial litigation, but also retail claims. He handles claims throughout the state of California. SECRETARY’S REPORTNo updates to report at this time. EDUCATION COMMITTEE REPORTNo updates to report at this time. FORMS COMMITTEE REPORTA letter was mailed to all CRS members June 13th requesting copies of pleadings to put together a comprehensive bank of forms, pleadings and briefs to be used by members. Please fax copies of your standard forms for complaints and motions, or other applicable documents to: Attorney Richard D. White, Jr., 918/599-7756. YMS REPORT TO CRSBy: Matthew J. Richburg, Esq. The YMS will be hosting what has become the annual comedy club event on Friday night for the New York meeting. Educational programs are also being planned. COMMERCIAL COLLECTION AGENCY ASSOCIATION-2006 COLLECTIBILITY SURVEY(Year 2005 Collection Results) Association members’ collectibility statistics have been tabulated and the following tables represent the results of the survey. COLLECTIBILITY BY AGE OF ACCOUNT
COLLECTIBILITY BY TYPE OF ACCOUNT EXPRESSED AS A PERCENTAGE OF ACCOUNTS CLOSED (Based upon accounts closed in 2005)
The foregoing table shows the results of the Collectibility Survey. It is based on files closed during the year 2005. The figures are not based upon the intake of accounts received for collection. For example, the collectibility for the number of accounts forwarded to attorneys and collected is 8.2% of all accounts closed in 2005, which includes accounts not forwarded to attorneys. If we were to base the attorney collectibility statistics on the number of accounts sent to attorneys, the figure would be higher, in the 23 to 25 percent range. Submitted compliments of: Emil Hartleb, Executive Director Is there a place for consumer collections in the CLLA?By Rick Thomas, Esq. Twenty years ago, most collection attorneys shied away from “retail” collection business. That reluctance was a result of a number of factors, including that the average balance was smaller than commercial claims and consumer suits required more resources in the area of staffing and technology. Then along came the FDCPA, and most commercial collection attorneys felt it wasn’t worth the potential exposure to liability to handle these troublesome claims. Well, this isn’t your father’s collection industry any more. The sheer volume of consumer debt is staggering, yet very appetizing for the hungry collection attorney. There are many sources of consumer debt/ accounts looking for assistance from collection attorneys. Not only are there numerous consumer collection agencies, but there also are other sources of business such as attorney networks, debt buyers and forwarding attorneys, some which are, and others of which are not, presently members of the CLLA. We’re all aware that the National Association of Retail Collection Attorneys, NARCA, was formed to service the consumer collection industry, and has done well to bring the members of that niche in the industry together. Many members of CRS belong to both the CLLA and NARCA. Perhaps it’s time to look at creating a home for some of these business sources in the CLLA. After all, there are a lot of consumer agencies, networks and debt buyers that are not members of either organization. Our incoming president, Sid Friedman, has created a committee to be co-chaired by Rick Thomas (email: rick@tt-law.com) and David Gamache (e-mail: DavidGamache@gmcollects.com) to explore the possibility of attracting these sources of consumer business to the CLLA. One of the first steps will be to survey the consumer collection agencies, networks and debt buyers to see what their expectations would be, if invited to become active members of the CLLA. To that end, for all those who do consumer work, and would like to see more of it, please send the names of potential members to David or Rick, so that we can create a list for the survey. If you have addresses, contact names and telephone numbers, that information will save a lot of research time. Obviously, any suggestions and comments are welcome specifically from CRS members and more generally from the CLLA membership as a whole. Those comments will help us market to these business sources. We’re sure everyone will look forward to the results of the survey and future plans to attract more business for our members. Law Firm Marketing: Success is in the Details
There is a common misconception in a large segment of the legal profession that marketing equates to advertising and spending a lot of money. That couldn’t be more wrong. Marketing in law firms is all about sweating the details. The details cost you a little extra time and attention, but can deliver big dividends to your firm down the road. It is the best way to differentiate your firm from others. Most important for every law firm are your relationships with clients. It’s the trust your clients develop in you, your knowledge of their business and industry, your responsiveness, anticipation of client needs, and, of course, the results you deliver. Virtually every activity touches on marketing. Your firm’s success in marketing and business development depends on many factors. While the following checklist is not exhaustive, it is a good gauge of major factors that impact marketing results. How does your firm measure up in these ten key areas? 1. Client Relationships
2. Employee Satisfaction
3. Service Standards
4. The Internet: How the World Sees You
5. Have a Plan
6. Your Brand
7. Attorney Profiles
8. Contact Management
9. Bar and Trade Association Audit
10. Community Involvement and Pro Bono Audit
Clients expect that your firm will do great legal work. Finding ways to continually improve your relationships with clients and the service you deliver will differentiate your firm from others and serve your firm well in the future. Firms that are complacent will see their profits and client base erode as competitors slowly chip away at seemingly loyal clients. Successful law firms – those that continue to improve year after year – focus on people, service and communication. Deliver exceptional service to your clients and treat each one as if they were your only client. Focusing on these ten key points doesn’t require a big investment, just executing on the details. Award of ExcellenceNomination Form Although the nomination deadline has passed for nominations for the 2006 Award of Excellence which will be presented at the April, 2006, Midwestern Meeting in Chicago, it is not too early to begin thinking about nominees for the CRS Award of Excellence for 2007. The Creditors' Rights Section of the Commercial Law League of America is seeking nominations for its Award of Excellence, which was established to recognize outstanding contributions in the field of law affecting creditors' rights. The recipient must be a lawyer, legislator, professor of law, or judge, whose work has substantially and positively made an impact on creditors' rights. Nominations are being accepted through July 1, 2006, and should be submitted to the CLLA, including an explanation of those qualities and works which qualify the nominee for consideration. The Award will be presented at the annual Midwestern Meeting of the League held in Chicago in April 2007. CRS Award of Excellence Nomination
Calendar of 2006 EventsJuly 6-9, 2006 November 9-12, 2006 |