Asked and Answered

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

Q. I am the owner of a seven attorney litigation boutique firm in New York City. I am the only equity owner and the other six attorneys are associates. Currently all of the associates are paid a straight salary with raises given every year. I am considering freezing their salaries at current levels and putting in place an incentive bonus for individual revenue generation above a certain number. I am concerned that this approach might create an eat-what-you-kill mentality and destroy teamwork in the firm. Do you have any thoughts?

The Illinois State Bar Association would like to thank the members listed below for joining the 2015 President’s Club. This program helps support capital development projects and member service projects. The 2016 program will kick-off at the 2015 Midyear Meeting. More information, including donation amount and benefits, will be available closer to that date. Thank you again for your support of ISBA. View our photo gallery of President's Club 2015 members at iln.isba.org/gallery/925/president%27s-club-2015

Michael J. Tardy, Director of the Administrative Office of the Illinois Courts, announced Tuesday that the Third Judicial Circuit judges voted to select Jennifer L. Hightower and Sarah D. Smith as associate judges of the Third Judicial Circuit.

Ms. Hightower received her undergraduate degree in 2005 from the University of Missouri-Columbia in Columbia, MO and her Juris Doctor in 2009 from Thomas Cooley Law School in Lansing, MI. Ms. Hightower is currently affiliated with Simmons Hanly Conroy, LLC in Alton; Lewis & Clark Community College in Godfrey and the Madison County State's Attorney's Office in Edwardsville.

Ms. Smith received her undergraduate degree in 1998 from Millikin University in Decatur, her Master's Degree from Regent University in Virginia Beach, VA and her Juris Doctor in 2002 from Regent University in Virginia Beach, VA. Ms. Smith is currently affiliated with the Madison County State's Attorney's Office in Edwardsville.

Michael J. Tardy, Director of the Administrative Office of the Illinois Courts, announced Thursday that the Seventeenth Judicial Circuit judges voted to select Ronald A. Barch as an associate judge of the Seventeenth Judicial Circuit.

Mr. Barch received his undergraduate degree in 1986 from Western Illinois University in Macomb, Illinois, and his Juris Doctor in 1992 from The John Marshall Law School in Chicago, Illinois. Mr. Barch is currently affiliated with Cicero, France, Barch & Alexander PC in Rockford, IL.

ISBA Director of Legislative Affairs Jim Covington reviews legislation in Springfield of interest to ISBA members. This week he covers Condominium Property Act (House Bill 2644), Decriminalization of cannabis (House Bill 218) and Body cameras (Public Act 99-352). More information on each bill is available below the video.

Condominium Property Act. House Bill 2644 (Cassidy, D-Chicago; Steans, D-Chicago) deletes a provision in current law that allows unit owners to enforce a provision in a declaration that would otherwise be void and ineffective if at least 75% of the owners approve at a any time after the election of the first unit-owner board of managers. Governor Rauner vetoed this because he believes that this is an unnecessary restriction on the rights of condominium owners with respect to their property.

Decriminalization of cannabis. House Bill 218 (Cassidy, D-Chicago; Noland, D-Elgin) imposes a minimum fine of $55 and a maximum fine of $125 for possession of 15 grams or less of cannabis. (2) Establishes a per se standard for Cannabis-DUI of 15 nano/milliliter of blood or 25 nano/milliliter of saliva in system instead of a trace of cannabis. (3) Allows for alternative ways to test for cannabis DUI using “any bodily substance” (including saliva) for testing. This is an expansion from current law of breath, blood, and urine. (4) Keeps ordinance and civil violation dispositions of minors confidential to reflect the intent of the Juvenile Court Act and limit collateral damage to minors.

Litigating a smaller value case creates many unique problems, including variations in practices and procedural rules – differences that even experienced lawyers can find daunting. Don’t miss this live webcast on September 16,2015 that highlights the pitfalls associated with these cases and presents techniques designed to effectively represent a client with a smaller value case. Personal injury attorneys and insurance defense practitioners with basic to intermediate practice experience, won’t want to miss this opportunity to learn how to provide the “small case” client with top level advocacy. In addition to the do's and don'ts of practice in the Municipal Division and the contrasting perspectives of a plaintiff and defense attorney on how to best address these problems, you will learn how to: keep expenses in proportion to the value of case; understand the special Municipal Court rules relative to mandatory arbitration; conduct case management and trials; work within the limited scope of discovery; and much more.

The program is presented by the ISBA Tort Law Section and qualifies for 1.50 hours MCLE credit.

Click here for more information and to register.

They're not lawyers, nor do they play them on TV, nor in court, nor in other more complex scenarios. But unlike paralegals, they can give legal advice and handle more basic, cut-and-dried matters independent of an attorney's supervision.

Limited license legal technicians, touted by supporters as the nurse practitioners of the legal profession, have been licensed for the first time in Washington state, where the initial handful of LLLTs recently completed the joint community college-law school educational track. Several other states, including Florida, Oregon, and Colorado, are at various stages of exploring the issue, while the Illinois State Bar Association has appointed a task force that will begin exploring LLLTs this fall.

Proponents of Washington state's move, mandated in 2012 by the state's supreme court, say LLLTs could help provide legal services to moderate- and middle-income people who can't afford to pay for attorneys but are not poor enough to qualify for legal aid services - hence the comparison to nurse practitioners and how they play a mid-level-provider role in the medical profession.

Opponents, who were very vocal at last summer's ISBA assembly meeting, are concerned that already underemployed lawyers will lose business to LLLTs and also that the quality of legal services provided will suffer. They would prefer to explore other alternatives for making legal services more affordable, and the ISBA task force will take up some of those ideas as well. Find out more in the September Illinois Bar Journal.

With the 2015-16 season quickly approaching, the Chicago Blackhawks would like to offer you an exclusive opportunity to purchase preseason tickets.

Receive a hockey stick autographed by a member of the 2015 Stanley Cup Champions with the purchase of four or more tickets in the 100 or 200 level, while supplies last.*

This is your opportunity to get an early look at the Blackhawks and see opponents like Detroit, St. Louis and Dallas.

To purchase tickets, CLICK HERE and enter the promo code LAW.

Asked and Answered

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

Q. I am a new partner in our law firm of six attorneys. I was an associate for seven years and was just made an equity partner and just received a copy of this month's income statement. The income statement shows the firm operating at a loss. I was startled and took a look at past years' statements as well. All are showing a small loss. Am I looking at these correctly? How can a firm operate at a loss for seven years in a row and still be in business. I would appreciate your comments.

A. My guess is that the firm is running all or a portion of equity partner compensation though as expense on the income statement. Other personal items may also be run through the firm as well. Check with the firm's bookkeeper or outside accountant to see if this is the case. If this is the case add the total paid to equity partners back to the net income or loss on the income statement. This will give a better picture of the actual "pie".

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