Asked and Answered 

By John W. Olmstead, MBA, Ph.D, CMC

Q. I am a member of the executive committee of a 75-attorney firm in Houston, Texas. We are a first-generation firm. Several of our founders are in their 60s and we have recently begun discussing succession planning and how clients and management duties will be transitioned. We would appreciate your thoughts in these areas.

A. In larger firms, clients are more likely to be large, sophisticated clients, possibly Fortune 500 companies, which refer many matters to the firm during the course of a year. Often such clients may be both a blessing and a curse for the firm. A blessing in that their business provides the firm with huge legal fees during the course of a year. A curse in that their business represents a large percent of the firm’s annual fee collections and a significant business risk if the firm were to lose the client. An effective client transition is critical, takes time, and must be well planned.

Successful client transition – moving clients from one generation to the next – is a major challenge for larger firms. Shifting clients is not an individual responsibility but a firm responsibility. To effectively transition clients, the individual lawyer, with clients, must work together with the firm to insure the clients receive quality legal services throughout the transition process. Both the individual lawyer and the firm must be committed to keeping clients in the firm when the senior attorneys retire. Potential obstacles include:

"This past January, many newspapers carried stories of lawyers at airports, including O'Hare, offering assistance to immigrants and their families in light of the January 17 Presidential Executive Order on immigration," ISBA General Counsel Charles Northrup writes in the April Illinois Bar Journal. "The stories were often accompanied by photos of lawyers holding up hand-written signs saying things like 'Need a Lawyer?' or 'Lawyers Here to Help.'"

As Northrup puts it, he is "burdened to view the world through the lens of legal ethics," and his first thought was, "Isn't this improper in-person solicitation?"

Northrup explains that Illinois Rule of Professional Conduct 7.3, which governs in-person solicitation of clients, provides in subsection (a) that "a lawyer shall not by in-person, live telephone or real-time electronic contact solicit professional employment when a significant motive for the lawyer's doing so is the lawyer's pecuniary gain…."

Back by popular demand! Learn the tips of the trade as several panels of federal judges, retired federal judges, and mediators share everything you need to know about settlement in the federal courts. Attorneys with all level of experience practicing in the U.S. District Court for the Northern District of Illinois and the Seventh Circuit Court of Appeals who attend this seminar in Chicago on May 10, 2017 will gain a better understanding of: meeting the judges’ expectations for pre-settlement preparations; preparing your client for settlement; how to conduct the settlement conference, including conference procedures and techniques to help both parties come to a settlement agreement; what not to do during a settlement; how to handle settlement compliance issues and the court’s ability to enforce the settlement agreements; and the Seventh Circuit’s settlement program procedures.

The program is presented by the ISBA Federal Civil Practice Section and co-sponsored by the Seventh Circuit Bar Association. It qualifies for 3.75 hours MCLE credit, including 3.75 hours Professional Responsibility MCLE credit (subject to approval).

Click here for more information and to register.

By Sandra Crawford, JD, Mediator, Collaborative Process Professional, Trained Circle Keeper

No matter where on this planet our ancestors hailed from, it is safe to say that at some point in history all of them sat around a fire either for heat, nourishment, storytelling, entertainment, community, support, and most likely to do some problem solving. From these ancient beginnings has grown what is now generally known as the Circle Process — a problem resolving or peacemaking model that can be used in a variety of settings for a variety of purposes. “The philosophy of Circle acknowledges that we are all in need of help and that helping others helps us at the same time." The Little Book of Circle Processes by Kay Pranis, page 6. (Hereinafter "the Little Book").

Don’t miss ISBA’s 16^th Annual Illinois Environmental Law Conference in Chicago on May 4-5, 2017!

Once again, this two-day premier conference features annual updates on agency activities and priorities in Illinois and the Region presented by top representatives from the U.S. Environmental Protection Agency, the Illinois Environmental Protection Agency, and the Illinois Attorney General’s Office. In addition, you won’t want to miss the lively two-hour professional ethics session on “Identifying and Resolving Ethical Issues Arising in Environmental Law” and a new plenary session on “Carbon-Sequestration Technology.” Attendees will also learn about the latest hot topics in environmental law from leading practitioners, including: the evolving regulation of lead in drinking water; federal, state, local, private, and non-profit sector response to the legal and political dynamics of carbon; watershed-level pollution reduction strategies; the public and private rights of Lake Michigan shores; understanding how pharmaceuticals and personal care products are contaminating the environment and the legal developments surrounding this issue; how two recent federal developments may impact the management of hazardous materials and chemicals; what to do after buying an environmentally-impacted property; the ongoing issues with “The Clean Water Rule and the “waters of the United States”; techniques to enforce the RCRA air emission standards; and much more!

ISBA Director of Legislative Affairs Jim Covington reviews legislation in Springfield of interest to ISBA members. This week he covers the Nursing Home Act and attorney fees, the Collaborative Process Act, child support law technical corrections, a bill affecting objections to jurisdiction, mandated child abuse or neglect reporters, an omnibus condo bill, and a bill amending the Condominium Property Act.

More information on each bill is available below the video.

There's a six-year statute of repose for legal malpractice - unless the alleged act or omission isn't discovered until the client dies. Estate planning lawyers want more protection, and they're hoping new legislation can provide it.

Virtually all attorneys understand statutes of limitations. From the time an injury or other bad act occurs, there is a specific, defined timeframe in which a party may bring suit.

In some types of cases, the limitations period does not begin to run until an injury is discovered. In others, such as personal injury cases, the discovery rule generally does not apply - people generally know they're physically injured at the time of, or shortly after, an accident.

Statutes of repose, on the other hand, bar an action once a specific period of time has passed, regardless of whether the potential plaintiff later discovers the act or omission giving rise to the claim. In Illinois, there is a statute of repose for attorney malpractice lawsuits. The problem is that not all attorneys are protected by it.

The current law, 735 ILCS 5/13-214.3, establishes a two-year limitations period and a six-year statute of repose for legal malpractice actions. The two year limitations period incorporates the discovery rule (735 ILCS 5/13-214.3(b)), but the six-year repose period (735 ILCS 5/13-214.3(c)) prevents former clients from "discovering" malpractice well after it was allegedly committed.

Asked and Answered

By John W. Olmstead, MBA, Ph.D, CMC

Q. I am a partner in a 45-lawyer firm in Memphis and a member on the firm’s executive committee. We are planning on having a two-day planning retreat in June of this year. We have had these retreats every year for the past six years. Past retreats have only included attorneys. This year we are considering including staff members. We would appreciate your thoughts as to whether this is a good idea.

A. A firm invites all key staff to a retreat when they can play a major role in identifying problems and developing solutions. A firm retreat is an excellent forum if the partners or management have determined that individuals at different levels within the firm are having communication problems – for example – where communication is inadequate between:

• Equity partners and non-equity partners
• Partners and associates
• Attorneys and staff

Having these individuals participate in solving their own communication problems at the retreat usually produces better results than those obtained when the partners hand down orders that may not deal with the real issues. Staff participation can help identify problems, involve more firm members after the retreat in the implementation of solutions, and improve buy in.    

On April 3, 2017, the Illinois Supreme Court approved Supreme Court Rule 293, which requires trial courts to commence a jury trial if requested by a respondent in an involuntary admissions proceeding under the Mental Health and Developmental Disabilities Code within 30 days of the request effective immediately.

The decision to approve this rule stems from years of confusion and debate. Recognizing the serious rights at stake in cases such as In re James W., 2014 IL 114483, and In re Rita P., 2014 IL 115798, the Court asked its Special Advisory Committee for Justice and Mental Health Planning to study the matter and recommend solutions. Rule 293 was proposed by the Committee to clarify and make mandatory the time limit trial courts have to convene juries in mental health involuntary commitment hearings. 

The importance of creating one uniform rule for the state cannot be understated. It recognizes the importance of fundamental liberty interests; provides one consistent standard for judges to make clear, concise, and complete findings of fact; and provides guidelines to  judges who lack experience in these types of case. Chief Justice Lloyd A. Karmeier explained, "The Court is confident that the new rule will provide much needed guidance to the courts and officials charged with enforcing the orders and, in so doing, ensure full and proper protection of the fundamental liberty interests of citizens facing involuntary admission or treatment for mental health issues.”

On April 3, 2017, the Illinois Supreme Court announced changes to a rule impacting the requirements for continuing legal education (CLE) in Illinois. The rule change will go into effect on July 1, 2017, and begins with attorneys with the two-year reporting period ending June 30, 2019.

Pursuant to Amended Supreme Court Rule 794(d), Illinois lawyers will be required to complete one hour of diversity and inclusion CLE and one hour of mental health and substance abuse CLE as part of the Professional Responsibility CLE requirement. 

Studies show that the legal field falls short in the areas of diversity and wellness as compared to other fields. Promoting education on these issues helps address two of the profession's greatest challenges, and positions Illinois as one of the first states to require such programming. Illinois is one of seven states that allows diversity and inclusion to qualify for ethics/professionalism credit. With the amendment of Rule 794(d), it became the fourth state to require diversity-related CLE, and it is one of only three states that will require mental health and substance abuse education. As a result, Illinois is one of only two states that requires both diversity and inclusion and mental health and substance abuse education for continuing legal education.