January 2015Capital Connection is published monthly for members of the Capital Chapter of the Association of Legal Administrators to provide information for the education and benefit of legal administrators, law office managers, managing partners of law firms, and other law related associations. Capital Connection is not engaged in rendering legal, financial, or tax counseling or advice through this publication. The contents of all articles, letters, and advertisements published in Capital Connection should not be considered endorsements by the Capital Chapter of ALA nor the opinion expressed therein of any products advertised. Contributing authors are requested and expected to disclose financial an/or professional interests and affiliations that may influence their writing position. Articles and materials accepted for publication are subject to editing by the editorial team and become property of the Capital Chapter of the Association of Legal Administrators.
Editor: Paula Serratore Contributing Editors: Joe Berger; Paul Burton Newsletter Designed By: Scoti Dodson |
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Photos: Salvation Army Angel Tree WarehouseChanges to CLM ProgramALA has reviewed its CLM policies and some significant changes that are now in effect!
Antitrust GuidelinesFor Members of the Association of Legal Administrators
Professional associations such as the Association of Legal Administrators (ALA), although well recognized as valuable tools of American business, are subject to severe scrutiny by both federal and state governments. The single most significant law affecting professional associations is the Sherman Antitrust Act, which makes unlawful "every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce…" A professional association by the very nature of the fact that it is made up of competitors is a combination, thus satisfying one of the elements in proving an antitrust violation. Section 5 of the Federal Trade Commission Act is also applicable to professional associations; it makes unlawful the same types of conduct that are prohibited by the Sherman Act. Furthermore, almost all states have enacted antitrust laws similar to the Sherman Act. There is no organization too small or too localized to escape the possibility of a civil or criminal antitrust suit. The federal government has brought civil or criminal actions against such small organizations as Maine Lobstermen, a Virginia audio-visual association, Bakersfield Plumbing Contractors, the Utah Pharmaceuticals Association, and local barbers associations. The government has brought approximately five civil and ten criminal cases a year against professional associations. It is thus imperative that every professional association member, regardless of the size of the association or the size of those comprising the membership, refrain from indulging in any activity which may be the basis of a federal or state antitrust action. There are four main areas of antitrust concern for professional associations: price fixing, membership, standardization and certification, and industry self-regulation. The area of greatest concern, for it is the area where individual members are most likely to violate the law and the area where the government appears most concerned, is price fixing. The government may infer a violation of the Sherman Act by the mere fact that all or most of the members of the professional association are doing the same thing with respect to prices. It is not required that there be an actual agreement, written or unwritten, to increase prices. Rather, price fixing is a very broad term which includes any concerted effort or action which has an effect on prices or on competition. Accordingly, professional association members should refrain from any discussion which may provide the basis for an inference that the members agreed to take action relating to prices, production, allocation of markets, or any other matter having a market effect. The following topics, while not the only ones, are some of the main ones which should not be discussed at regular meetings or member gatherings:
However, care must be taken to ensure that the purpose of any survey is to permit each firm to assess its own performance. If a survey is used for the purpose of or has the effect of raising or stabilizing fees, wages, disbursements, credit policies and the like, it will create serious antitrust problems. Within this same legal framework applicable to surveys, an association can make presentations or circulate articles regarding such educational matters as establishing sound office procedures, etc., provided it is clear that the matters are educational, and not a basis for law firm uniformity or agreement. Inasmuch as association antitrust violations can subject all association members to criminal and civil liability, members should be aware of the legal risks in regard to membership policy and industry self-regulation. Fair and objective membership requirement policies should be established. Membership policies should avoid:
The penalties for violating federal or state antitrust laws are severe. The maximum criminal penalty for violating the Sherman Act was increased in 2004 from $350,000 to $1,000,000 for an individual and from $10,000,000 to $100,000,000 for a corporation. Pursuant to the Sentencing Reform Act, alternative maximum fines could be increased to twice the pecuniary gain of an offender or twice the loss to another person. Individuals and corporate officers who are found guilty of bid rigging, price fixing or market allocation will virtually always be sentenced to jail pursuant to the Sentencing Guidelines; community service cannot be used to avoid imprisonment. The minimum recommended sentence is four months; the maximum is three years. Additionally, there are civil penalties such as injunctions or cease and desist orders which could result in government supervision of association members, restricting the association's activities or disbanding the association. Civil suits may be brought by consumers or competitors. Civil antitrust actions result in treble damage awards and attorneys' fees. Thus, if association members are held liable to a competitor for antitrust violations which resulted in $500,000 worth of lost business, the verdict may exceed $1,500,000. The government's attitude toward professional associations requires professional association members, as well as professional associations themselves, to at all times conduct their business openly and avoid any semblance of activity which might lead to the belief that the association members had agreed, even informally, to something that could have an effect on prices, fees or competition. Thus, it is important that members contact the association headquarters or legal counsel for guidance if they have even the slightest qualms about the propriety of a proposed activity or discussion.
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Administrative Committees
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Communications and Media Relations
As members of the Newsletter and Media Relations Committee, Chapter members participate in producing the award-winning Capital Connection. Members gather to brainstorm new ideas for editorial themes for upcoming editions. The newsletter reports Chapter business activities such as Section and Committee news and provides information about upcoming educational and other events. It also includes articles of interest to members and other legal management personnel, collected, authored and/or edited by members of the committee. This committee also works with other legal associations and the media to ensure that ALA and the Capital Chapter are represented in the legal industry. The Newsletter Committee welcomes new members. Contact: Jacqueline Moline, jam@carmaloney.com; Paula Serratore, pserratore@alacapchap.org |
Salary Survey
The Salary Survey Committee is responsible for maintaining, updating and running the local survey each year. They review the positions listed, the job descriptions, and the benefits questions to ensure that the survey remains relevant to the end users. The members of the committee also promote the survey within the Chapter to stimulate participation. In addition, the committee is tasked with selling the license to the survey software to other chapters within ALA for use in their locales. They also provide technical support and logistical guidance to those chapters who purchase and utilize our survey software. Contact: Dina Dalecki (Chair), ddalecki@wenderoth.com; Jeff Delcher (Co-Chair), jdelcher@wbklaw.com Listserv: finance@lists.firmseek.com |
Educational Sections
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Branch Office Administrators
The Branch Office Adminsitrators Section focuses on a broad range of topics of interest to local adminisraotrs who must coordinate with other officees of their firms. The Section's monthly luncheon meetings, held on the second Tuesday of the month, provide a venue for members to discuss issues of common interest, share ideas, and network. Members are encouraged to raise topics and to recommend speakers. Contact: Richard Gibson (Chair), rgibson@nixonpeabody.com; Wendy Iversen (Co-Chair), iversen@ballardspahr.com Listserv: branchofcadmin@lists.firmseek.com |
Intellectual Property (IP)
The Intellectual Property (IP) Section focuses on all aspects of legal management as it pertains to the IP Administrator. The group discusses the complexity of the ever-changing IP environment and how to effectively create and apply IP specific, non-legal procedures in both boutique and general practice firms. The Section's monthly meetings, held the third Tuesday, are primarily lunch meetings and every third month is a dinner meeting. Contact: Kristine Miller (Chair), kmiller@nixonpeabody.com; Dina Dalecki (Co-Chair), ddalecki@wenderoth.com Listserv: ipadmin@lists.firmseek.com |
Human Resources
The Human Resources Section operates as a venue for educational information on global human resources topics and issues. While the Section comprises mostly HR professionals, any member is invited to participate. The Section meets the second Wednesday of every month and often has either industry speakers or roundtable discussions on topics such as recruiting, benefits, strategic planning, performance management, career pathing, retention and more! Contact: Claudia Baragaño (Chair), cbaragano@kelleydrye.com; Jane Schindler (Co-Chair), jschindler@foley.com Listserv: hr@lists.firmseek.com |
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Office Operations Management The members of the Office Operations Management Section represent a cross section of legal expertise from functional administrators to branch office managers. The Office Operations Management Section (OOMS) meets on the fourth Wednesday of every month to discuss operations related hot topics. We welcome all members to join the section, especially if you are an administrator in a small law office and you have to wear multiple hats. We can provide you with many best practices to run your operation smoothly. Contact: Gregory Fudge (Chair), glfudge@ober.com; Jeffrey Cole (Co-Chair), Jeffery.l.cole@squirepb.com Listserv: ooms@lists.firmseek.com |
Small Firm Management The purpose of the Small Firm Management Section is to provide Administrators of law firms with 35 or fewer attorneys educational opportunities through vendor presentations, idea sharing and open forums specifically designed for those who work in smaller firms. The Small Firm Management SEction meets the 4th Tuesday of the month at host law firms. Contact: Melody R. Watson (Chair), melody.watson@gpmlaw.com; Emily Christianson (Co-Chair), echristianson@relmanlaw.com Listserv: smallfirmadmin@lists.firmseek.com |
Technology The Technology Section is looking for members to join the group for lively discussions about practical situations we all face daily in the information technology world. With ever-changing IT needs and issues, we will look at our firms' policies and procedures and help develop best practices and speak of the many concerns we all have. Even if you are not in the IT field, your experiences and opinions will help us in bringing all departments of a law firm together and working on the same page. Contact: Kenny Mitchell (Chair), kmitchell@wbklaw.com; Frank Schipani (Co-Chair), schipanif@gotofirm.com Listserv: alacaptech@lists.firmseek.com |
