ABA Section of Business Law
ABA Section of Business Law
Business Law Today
September/October 1999
Snap Judgments
Breaking up is really hard to do
While it’s usually the heartbreak of someone else’s ill-fated relationship that leads lawyers into the courtroom to set the terms of separation, one Chicago law firm is learning firsthand the agony of broken vows.
Defrees & Fiske recently filed a suit in Cook County Circuit Court alleging that its now estranged partner seduced the firm into a one-sided relationship that didn’t lead to a life of happily ever after.
According to the Chicago Law Bulletin, Defrees & Fiske filed the suit against securities lawyer Stuart Perlman after his eight months as a partner failed to yield anywhere near the $300,000 in legal fees he had promised. Thus the once-smitten firm has soured on its prospect and is seeking $70,000 as part of their painful break up.
The firm maintains that Perlman abused their trust and wooed them with false promises of a triple-digit income. But after the honeymoon was over, the firms says Perlman tallied up a paltry $14,669 in fees. Defrees & Fiske should never have underestimated the value of a good pre-nup.
Take 2 BMWs and call me . . .
Many in mainstream America have little sympathy for the stereotypical fat-cat lawyer, but recent statistics may cause a pang of sympathy for the poor guy down the street with the two BMWs and in-ground pool. OK, maybe not, but the statistics are still startling.
According to Stephen Braun — legal counsel turned counselor by the rigors of legal life — lawyers are disproportionately plagued by depression, suicide and substance abuse.
In an article for Houston Lawyer, Braun reported that lawyers lead the nation in incidence of depression; 11 percent of lawyers say they consider killing themselves at least once a month; and 15 to 20 percent of U.S. lawyers suffer from alcoholism or substance abuse.
Braun, who started counseling lawyers in 1997, attributes some of lawyers’ unhappiness to mismatched personalities.
"Some personalities go great with law," he said. "But sometimes, what is good for law doesn’t work well with families and other relationships."
Braun encourages listless lawyers to take time to relax, exercise and meditate to help ease stress. That in-ground pool may just be the way to go.
Beware a future of e-lawyers
Lawyers are far from going the way of the passenger pigeon, but according to a Legal Times article, "e-law" may radically change the country’s need for lawyers.
While many today embrace the new service opportunities that the Internet affords, the article said, new technology is really a double-edged sword that will ultimately hurt the legal profession.
Experts cite Turbotax software as a sign of the coming apocalypse. They note that the interactive software has dramatically cut the need for tax-preparation specialists and has hurt CPAs’ business. WillMaker and computer programs that allow for online patent filing are now forcing the lawyers to confront changes in their own profession as computers step in to take on once lawyers-only tasks.
Others counter this argument by saying that consumers will resist turning over their legal needs to "nameless, faceless computers." Try to be sure that you don’t seem that way as an in-the-flesh lawyer.
Class actions get more class
Today’s tight job market means things are looking good for employees, but, according to a recent report, the boom times also mean a new look for employment-related lawsuits.
Catherine Hagen, an employment discrimination lawyer with O’Melveny & Meyers in Los Angeles, notes that not only are employee lawsuits on the rise, but class-action suits are definitely in this season.
From trendy invasion-of-privacy suits to the more traditional sex- and race-discrimination cases, class-action suits are a perfect fit for employees who at last have the upper hand when taking on the boss.
Overtime disputes are also making a debut on the class-action scene and tend to work well with employees’ styles, Hagen found, because companies often lack the records they need to complete their defense.
"While public policy has provided the framework for a safer, more equitable workplace, it also has opened the floodgates to both legitimate and frivolous lawsuits," Hagen said. "Employers large and small must be constantly vigilant, ensuring that policies and procedures are clearly communicated and enforced if they are to protect themselves from future liability and headache."
And remember, no white legal pads after Labor Day — it’s so gauche.
Should a marketer run your firm?
Lawyers have sometimes been accused of selling their souls to the devil, but as competition increases among firms, many will have to take on less-willing customers and start marketing campaigns to pitch their services to prospective clients.
According to an article in The National Law Journal, firms will soon be run by marketing professionals and will include a sales staff actively recruiting new clients.
"Companies already go through brokers and agents for insurance, investment and real estate. Why not attorneys?" asks John Cosmides of The Cosmides Group in Benecia, Calif.
If you were concerned that silly little ethics considerations might be the pivotal reason why lawyers haven’t jumped on this bandwagon before, not to worry. Ross Fishman, of Ross Fishman Marketing in Highland Park, Ill., has that under control, saying that prospect calls "border on inappropriate solicitation. But we’ll find a way to make it work."
In fact, many already find constraints on firms’ outreach efforts antiquated. "Most of today’s rules and codes were designed to protect vulnerable individuals from unscrupulous lawyers and ambulance chasers," Cosmides says. "They are overkill for most senior managers, who are far more sophisticated when it comes to dealing with attorneys."
Don’t get mad, get a Web site
For hundreds of Americans, the Internet has created an outlet for customer-service frustrations that has left companies frantically pointing and clicking to keep up, a recent Business Week article noted.
In just two years, one such site (Walmartsucks.com) has logged complaints from more than 1,500 not-so-satisfied customers, the magazine reported. The national retail chain tried to squash the site but gave up rather than litigate against the frustrated shoppers’ right to free speech.
Currently more than 100 major American companies have been taking hits from these so-called hate sites. Allstate, Toys ‘R’ Us and Viacom have been subjected to attack. Microsoft actually has more than 20 sites railing against the multibillion-dollar software giant.
But some companies are using these cyber slams to their advantage. For example, Dunkin’ Donuts contacted disgruntled doughnut fans through a hate site and used coupons and apologies to sugar coat their way back into shoppers’ good graces.
Consumer advocate Ralph Nader believes the Web sites play an important role in changing the way companies do business. Hate sites "can be done well or done poorly," Nader said, "but in general they are filling an important vacuum." That sounds good, as long as someone has alerted Hoover to what could be a cue from Nader that their carpet-cleaning appliances are the next to be hit.
The huckster under the conference table
As lawyers prepare to expand their marketing reach beyond the somewhat apocryphal deal with the devil, they should heed the advice of a Legal Management columnist who says that the little guy can still be found in the details of a marketing plan.
According to marketing meister Trey Ryder, many newbies in the world of marketing get lost in vague generalities. The way to snag clients, he tells readers, is with specifics.
"The most powerful marketing messages are specific and direct," Ryder writes. "What’s more, the more information firms provide, the more prospects believe the message because it is positive and specific."
Ryder’s tips for lawyers looking to market their services include providing facts, calling prospects to action, telling prospects what action to take and naming clients already served.
Ryder also offers lawyers a free kit that includes "Seven Secrets of Dignified Marketing." Of course what Ryder fails to realize is that after the Faustian finagling that’s behind the urge to market, dignity may not be the best message word with which to promote his insights.
— Heather Brewer
