Rob Mattern is the president of Mattern & Associates, LLC a consulting firm that specializes in assisting law firms to develop strategies for their support services to reduce expenses and increase the realization of their soft cost recoveries. Mattern & Associates just recently published their 2010 Cost Recovery Benchmarking Report, based on a survey of 81 law firms in the US and Canada. Today Rob and Ed will be discussing the economics of running a law practice.
The article by David Streitfeld is a good piece. He’s the housing reporter for the NY Times and spends most of his time in California. In response to an earlier piece by him on the subject, where he failed to mention California, I contacted him. He knew nothing about the law in California (since 2009) or the State Bar’s modification of its Rules of Professional Conduct that made it a crime to take money from clients in advance of completion of the loan modification, not even for deposit into a client’s trust account.
I told him about the new law and pointed him to several of my blog posts on this topic where he could learn more.
I’m glad that he’s written about it now, in more detail and highlighted California’s experience.
As a side note, an officer of Bank of America claims that of the Bank’s loan modifications, more than 70% go back into default within 2 years … a scary statistic. Should the Bank be responsible for maintaining a family in a home which it can’t afford, even with a modified loan structure? I’m not sure … Or, should the government offer some help. They have bailed out the big banks on Wall Street, how about some help for the people on Main Street? I’m not sure what is the right answer. It’s clear, however, that if no one helps, we’ll have many more foreclosures in 2011 and 2012. Our political spectrum is so polarized today that all we seem to hear is noise, white noise, and more noise.
BTW, it was a politician seeking headlines that started the ball rolling. And, it was the absence of lawyers in the legislature (only about 23% today) that permitted it. And, a non-lawyer governor who signed it. And, it seems, non-profit organizations who lobbied for it (a little competition there, would you say?). Who gets screwed? The people.
Too bad the State Bar president failed to support sole and small firm lawyers who worked in this area. Rather, he seemed hell bent on chastising the whole because of a few bad apples. Rather, the Bar and the District Attorney could have used the many rules (moral turpitude and others) and laws (Penal Code against theft) already on the books to protect the people scammed by lawyers without removing entirely the good lawyers from this process. Provisions on the books already protect against any lawyer taking money from a client under false pretenses (theft) and the rules of professional conduct protects against moral turpitude and for not performing work that was promised. The State Bar didn’t have to follow the urging of the bar president to support this effort.
The state bar president, at the very best, gives no more than lip service to solos … See my open letter.
Ed interviews Jeff Davidson, “The Work-Life Balance Expert®,” who has written 56 mainstream books and is a preemiment authority on time management. He the author of “Breathing Space,” and “Simpler Living.” Jeff has been widely quoted in the Washington Post, Los Angeles Times, Christian Science Monitor, New York Times, and USA Today. Jeff believes that career professionals today have a responsibility to achieve their own sense of work-life balance, and he supports that quest through his website www.BreathingSpace.com.
Erik M. Pelton, founder of Erik M. Pelton & Associates, PLLC, a boutique trademark law firm in Falls Church, Virginia, is our featured guest in this podcast. Erik has been named a Top 10 trademark filer by NameProtect’s Trademark Insider two times and is the creator of Apptorney: IPSM, an iPhone® application for intellectual property attorneys (www.apptorney.com). His conversation with Ed is focused on Iphone® Apps for Lawyers. Watch for our follow up conversation with Erik about branding for law firms.
Recently, several states and the ABA have been reviewing and discussing the limits to which lawyers may use social media … LinkedIn, Facebook, et al … without violating the restrictions on advertising.
Now, there seems to be a similar but more mild review and reaction to judges using social media. I’m somewhat surprised that lawyers are being restricted but judges are not in their use of social media. For example, Ohio, Kentucky, New York and South Carolina similarly answered the friend question … Judges can befriend attorneys and others. The warning, if one were to call it that, is that judges need to tread carefully…Not to befriend lawyers and others who are to appear in their court.
But, how do you know that someone you "friend" today won’t be a party or lawyer in your court tomorrow? While I normally do not concur with the Florida restrictions on lawyer advertising, I am more inclined to support their somewhat more stringent approach in this area. In 2009, the Judicial Ethics Advisory Committee for the Florida Supreme Court decided that judges could not add lawyers who appear before them as friends online. Personally, I don’t think this restriction goes far enough.
As I’ve noted in a previous post, judges must "not only be chaste, they must also appear to be chaste." (With due apologies to the Bard.) Appearances of appropriate judicial conduct is essential. And judges’ participation in social media networks violates the appearance of impartiality.
I agree with you completely. There is a tremendous "justice gap." I’m glad the State Bar is seeking to do something about this. I wonder, however, why the State Bar doesn’t expend the same energy on helping its own members, lawyers. One study reported by the State Bar several years ago indicated that 50% of lawyers in this state earn less than $100,000. Just think, if the State Bar would actually help its members be more effective with their clients, be more efficient in the delivery of their services and, yes, be more profitable, members of the Bar would then i) be less tempted to invade client trust accounts (a public service issue) and ii) have money to contribute to narrow the "justice gap."
Instead, however, the Bar does things that are perceived by our members to be antithetical to the interests of lawyers … The list is rather long and I won’t bore you here with issues on which I’ve spoken before. But, until you (the organized, mandatory Bar) works with its members … until you (the organized, mandatory Bar) has as at least one of its primary goals the interests of its members, you have a great deal of courage (some might say gall) to ask struggling lawyers to contribute more than they already do.
If our Bar were a voluntary Bar, I suspect less than 50% would join … Then we would not have governance issues imposed on us by the legislature. Of course, we would also be far more interested in the thoughts and concerns of our members than is currently the case.
Clearly, these are my own thoughts, not those of any Section or other body of the State Bar … but these thoughts were clearly expressed to me just this morning by another attorney. I thought you should know, considering you’re asking us for money.
And let me take this opportunity to wish you and your family the best of the holiday season. You’ve taken on a very tough job, some would say a thankless job, and I wish you great courage and strength.
California State Bar’s Law Practice Management and Technology Section
Gives Out Their First Lifetime Achievement Award
Venice, CA: (December 8th, 2010) – Edward Poll, principal of LawBiz® Management, recently received the honor of the first ever Lifetime Achievement Award handed out by the California State Bar’s Law Practice Management and Technology (LPMT) Section. The award, which was named after him, was given due to his extraordinary level of service, enthusiasm, and vocal advocating for small firms and solo practitioners.
“Ed deserves the award because he epitomizes what this section is about,” says Robert Brownstone, the chair of the LPMT executive committee. “He has such a tremendous amount of experience and displays so much genuine passion to give back to the legal community. He’s been a mentor to all of us.”
The LPMT section, which has been operating for nearly 32 years, works to help lawyers practice more profitably and ethically. It’s the only section in the California State Bar that focuses solely on the practical aspects of growing a law practice.
The section’s committee is composed of 15 members as well as a few Special Advisor positions. Each year, the Special Advisor positions are open to committee election. For the last five years Ed has served as a Special Advisor. The reason for his continued participation is largely due to his extensive knowledge and commitment to promoting outstanding practice management.
In over 25 years of experience as a practicing attorney, Poll has lectured at UCLA and done countless speaking, coaching, and training engagements. He’s published over a dozen books and is a syndicated columnist in all the Lawyers Weekly publications. He is one of the most active members in the legal profession on the web, posting regular YouTube videos, Blawg entries, and newsletters. Poll’s efforts have literally helped thousands of lawyers create more rewarding practices.
“I was surprised and extremely honored to have received the award,” says Poll. “It was very humbling to be honored by the committee and to have the award named after me. This is truly one of my greatest achievements!”
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If you’d like to schedule an interview with Ed Poll to learn more about his award or discuss the challenges law practices face in the 21st century, please contact Luke Messecar at luke@ictusinitiative.com or at 617.717.8294.
About Ed Poll
Ed Poll, J.D., M.B.A., CMC, is a nationally recognized expert in law practice management. He helps attorneys and law firms increase their profitability consulting with them on issues of internal operations, business development, and financial matters. Poll brings his clients a solid background in both law and business. He has 25 years experience as a practicing attorney and has also served as CEO and COO for several manufacturing businesses. In 1990 he founded LawBiz® Management Company and is now focused on coaching, speaking, and training law firms.
