Jim Reed, a personal injury attorney in Elmira, New York says his firm is thriving in this down economy and he has a few ideas posted to one of TechnoLawyer.com's listserves that are well worth passing on here (and if you don't subscribed to TechnoLawyer, you should; it's a great way to stay on top of the law office technology).
I am very pleased to report that my firm is kicking butt in 2009. Our #'s for the year are up more than 25%. This follows several years of good results so our current success is no short-term blip. With that said, continuing success is our daily mantra and we do not rest on our laurels …
Our success is a culmination of many factors that we have been working on for years:• Hire great employees (and fire the bad ones!).
• Focus on niche practices & create blogs for each niche (ie. NYInjuryLawBlog.com).
• Work with a savvy marketing firm (Mark Merenda from SmartMarketing) and make marketing part of your daily "work",
• Jettison underperforming practice areas and/or partners.
• Invest in the best technology and train your entire team how to use it.
Most important of all … just do one thing, every single day, to make your firm just one little bit better than the day before.
It never ceases to amaze me that success is the culmination of many little things, done day after day, rather than some huge "new" program or project.
Check out his firm site: www.zifflaw.com and his blog at: www.NYInjuryLawBlog.com
He's absolutely right that each day you need to do at least one thing that markets your firm and makes it better than the day before. That's a great tip on how to build (and keep building) a great practice.
Ron Burdge
www.TheLawCoach.com
Helping lawyers help people since 1978.
Thursday
Is it identity theft or is it bank robbery --- and whose fault is it?
We've talked before about identity theft and its dangers and lots of people have. There's even a terrific British Youtube about it and the puzzling question of whether it is really identity theft at all (or is it just electronic bank robbery?). Well maybe we're about to find out.
Patco Construction Company, Inc. v People's United Bank dba Ocean Bank, no pending in state court in Maine, may tell us just whose fault it really is, besides the cyber criminal of course.
Patco was a long time customer of the bank but after losing hundreds of thousands of dollars from online theft and then getting a notice from the bank that they wanted Patco to pay it back, they decided they had enough. Patco sued the bank for the loss. 'bout time, some would say. So would I.
While the claims include negligence, breach of contract, breach of fiduciary duty, and more (what, not bailment?), fundamentally the theory is that the bank failed to live up to its most basic obligation, which is to protect its customers' funds from theft. Patco's case is one to watch. With the increasing rise of cyber theft, sooner or later a client may come to you and ask what they can do about it.
The Patco bank's claims of sophisticated "behind the scenes" security measures and computer programs didn't do much good to stop cyber thieves who dipped not only into Patco's accounts, but did so repeatedly, transferring money to accounts that Patco had never used before, and from internet addresses that Patco had never used before either. The thieves even managed to tap into Patco's line of credit for a hefty $200,000 transfer.
When you think about it, Patco's claims make sense. All banks are quick to point out, on their websites and in their paper brochures, how they have all these computer theft protection measures set up to protect your deposits from theft. Much of it is advertising directed at encouraging consumers to use the internet for electronic transfers and bill paying that are high-profit transactions for the banking industry. After all, there aren't many tellers working inside that big bank computer box. Heck, there's even fewer of them at the walk in windows nowadays.
A century or two ago people put their money under the mattress or buried it in the backyard because that was safe. Now when you put your money in the bank, it's because you think it's safe. Well, not quite as safe as it used to be.
Still, if you give a friend $50 to hold for you, it's only natural to expect that they'll have it on hand to give back to you when you ask for it later. Especially if that "friend" is a big bank that collects millions of dollars from thousands of people and then invests it and charges interest on loans and makes money off your money (which they keep). That's a simple idea that any juror can grasp.
You expect the bank to protect your money and when they don't, it doesn't really matter whether they had one computer program to stop cyber thieves or a hundred of those programs. When the money is gone, it's gone. But it ought to be the bank's fault.
So let's stop calling it identity theft and call it what it is. Bank robbery. That makes a difference because, you see, the bank is insured. Okay, so if the insurance pays off, then the bank's next insurance premium will go up. Sooner or later the bank will decide it needs to fix it so cyber theives can't get into your account. It's either that or facing rising insurance premiums or cover the loss themselves.
So when will that happen? When we all make it happen. Banks don't like losing money and they don't like paying out money either. When it starts costing them money, they'll do something about it. Until then, they will keep tellling you that it's "your" identity theft problem and that it was "your" money that was stolen and not theirs.
How Patco's case comes out will be very interesting. But, one thing is for sure, the rest of us will be watching. And you can bet that the banks will really be watching.
Patco Construction Company, Inc. v People's United Bank dba Ocean Bank, no pending in state court in Maine, may tell us just whose fault it really is, besides the cyber criminal of course.
Patco was a long time customer of the bank but after losing hundreds of thousands of dollars from online theft and then getting a notice from the bank that they wanted Patco to pay it back, they decided they had enough. Patco sued the bank for the loss. 'bout time, some would say. So would I.
While the claims include negligence, breach of contract, breach of fiduciary duty, and more (what, not bailment?), fundamentally the theory is that the bank failed to live up to its most basic obligation, which is to protect its customers' funds from theft. Patco's case is one to watch. With the increasing rise of cyber theft, sooner or later a client may come to you and ask what they can do about it.
The Patco bank's claims of sophisticated "behind the scenes" security measures and computer programs didn't do much good to stop cyber thieves who dipped not only into Patco's accounts, but did so repeatedly, transferring money to accounts that Patco had never used before, and from internet addresses that Patco had never used before either. The thieves even managed to tap into Patco's line of credit for a hefty $200,000 transfer.
When you think about it, Patco's claims make sense. All banks are quick to point out, on their websites and in their paper brochures, how they have all these computer theft protection measures set up to protect your deposits from theft. Much of it is advertising directed at encouraging consumers to use the internet for electronic transfers and bill paying that are high-profit transactions for the banking industry. After all, there aren't many tellers working inside that big bank computer box. Heck, there's even fewer of them at the walk in windows nowadays.
A century or two ago people put their money under the mattress or buried it in the backyard because that was safe. Now when you put your money in the bank, it's because you think it's safe. Well, not quite as safe as it used to be.
Still, if you give a friend $50 to hold for you, it's only natural to expect that they'll have it on hand to give back to you when you ask for it later. Especially if that "friend" is a big bank that collects millions of dollars from thousands of people and then invests it and charges interest on loans and makes money off your money (which they keep). That's a simple idea that any juror can grasp.
You expect the bank to protect your money and when they don't, it doesn't really matter whether they had one computer program to stop cyber thieves or a hundred of those programs. When the money is gone, it's gone. But it ought to be the bank's fault.
So let's stop calling it identity theft and call it what it is. Bank robbery. That makes a difference because, you see, the bank is insured. Okay, so if the insurance pays off, then the bank's next insurance premium will go up. Sooner or later the bank will decide it needs to fix it so cyber theives can't get into your account. It's either that or facing rising insurance premiums or cover the loss themselves.
So when will that happen? When we all make it happen. Banks don't like losing money and they don't like paying out money either. When it starts costing them money, they'll do something about it. Until then, they will keep tellling you that it's "your" identity theft problem and that it was "your" money that was stolen and not theirs.
How Patco's case comes out will be very interesting. But, one thing is for sure, the rest of us will be watching. And you can bet that the banks will really be watching.
Ron Burdge
Helping consumers and consumer law attorneys since 1978.
Court Warns of Attorney Trust Account Scam
If you haven't gotten one of those international emails from a foreign company asking for your help with a legal matter, you probably will. Be cautious. As with any email nowadays, it may just be a scam.
The Supreme Court of Ohio Office of Attorney Services issued a warning to lawyers about an internet scam affecting lawyer trust accounts. Multiple individual attorneys and law firms have contacted the Ohio Supreme Court about the scam.
Here’s how it works: An Ohio lawyer receives an e-mail purportedly from another lawyer for collection of a debt. A follow-up e-mail arrives from the supposed debtor (who is also the client), seemingly legitimate, who sends a bogus check (often drawn on an overseas account) for payment.
The Ohio lawyer is instructed to pay the debt by wiring some of the funds to the creditor and to keep a portion of the funds as payment for his/her attorney fees. The Ohio lawyer then deposits the check in his/her Interest on Lawyers Trust Account (IOLTA), wires funds to the creditor, and retains the agreed upon amount as attorney fees.
Meanwhile, the check goes through international banking channels until it’s eventually discovered that insufficient funds are available in the account to cover the amount. The bank debits the IOLTA for the amount of the returned check, while the lawyer has wired “good,” client funds to the purported creditor. The proposed client is often an actual Asian-based company so it sounds legitimate but the scammers have no real connection with the company at all.
To make it even more convincing, the scammers use real lawyers’ names in the initial e-mail. The moral of the story is clear: be careful.
If an unknown attorney asks you to become involved in a financial transaction involving a foreign company, be wary. Since your Trust Account funds are not your money, an attorney who disburses funds, before a deposited check actually clears the bank, is taking a very big risk. Don't do it until you can verify that in fact the international check has cleared and the funds are in your bank account.
You can report a suspected online crime by contacting the FBI at www.ic3.gov.
The Supreme Court of Ohio Office of Attorney Services issued a warning to lawyers about an internet scam affecting lawyer trust accounts. Multiple individual attorneys and law firms have contacted the Ohio Supreme Court about the scam.
Here’s how it works: An Ohio lawyer receives an e-mail purportedly from another lawyer for collection of a debt. A follow-up e-mail arrives from the supposed debtor (who is also the client), seemingly legitimate, who sends a bogus check (often drawn on an overseas account) for payment.
The Ohio lawyer is instructed to pay the debt by wiring some of the funds to the creditor and to keep a portion of the funds as payment for his/her attorney fees. The Ohio lawyer then deposits the check in his/her Interest on Lawyers Trust Account (IOLTA), wires funds to the creditor, and retains the agreed upon amount as attorney fees.
Meanwhile, the check goes through international banking channels until it’s eventually discovered that insufficient funds are available in the account to cover the amount. The bank debits the IOLTA for the amount of the returned check, while the lawyer has wired “good,” client funds to the purported creditor. The proposed client is often an actual Asian-based company so it sounds legitimate but the scammers have no real connection with the company at all.
To make it even more convincing, the scammers use real lawyers’ names in the initial e-mail. The moral of the story is clear: be careful.
If an unknown attorney asks you to become involved in a financial transaction involving a foreign company, be wary. Since your Trust Account funds are not your money, an attorney who disburses funds, before a deposited check actually clears the bank, is taking a very big risk. Don't do it until you can verify that in fact the international check has cleared and the funds are in your bank account.
You can report a suspected online crime by contacting the FBI at www.ic3.gov.
Ronald L. Burdge
Helping lawyers protect their clients, and themselves, since 1978.
Tuesday
A Trial Lawyer's Brain Scan
In a remarkably graphic way, the diagram above shows what the brain scan of a trial lawyer would look like if you could do it in the midst of trial. It also explains why trial work is challanging and exciting. Each of those balls represents one piece of evidence that has to fall into place in the course of the trial at just the right time, all of which are moving, and the orchestration of which is mind boggling.
Ronald L. Burdge
Helping lawyers win, one case at a time.
My hours were cut but I want to keep my job. What do I do now?
Economic times are tough for everyone. Employees and employers alike. But what do you do when your hours get cut and you want to keep your job?
A young attorney, out of law school only a few years, faced tough news and asked us how to deal with it. After working his first two years after passing the bar exam, all of it in the same mid-size law firm, he received news recently that his full time job was going part time. With student loans looking over his shoulder, he could only start calculating the hard economic reality of losing 40% of his income. His 5 day a week job was cut to 3 days, with no guarantee it won't get cut more in the coming weeks or months.
"I can't live on what I make now but I don't want to lose my job. I like what I do and where I do it but there's no guarantee it won't get worse. What do I do now?" His questions echo the fears of many young attorneys. Are you in that spot? Well, there's a few things to keep in mind.
First, keep in mind that most law firms don't like cutting associates or cutting their hours. The cost of replacing a trained associate, even one with only a few years of experience, is horrible for the law firm. The fear of losing a good young associate is as real for the law firm as is the fear of losing employment for the young associate. If cutting hours was avoidable, it would have been avoided. But the simple fact is that in an economic downturn, sooner or later the loss of business affects even the best broad-based, diversified law firm too. It may not be consoling, but consider yourself lucky you didn't get your hours cut sooner.
Second, get a grip on the present and move on. Okay, so you've got less income next week than you had last week. Figure out what you have to do to deal with it. Don't dwell on it and don't commiserate with others who are sulking and doing nothing about it. That won't help. Find a way to adjust your living expenses first. Don't just give up and start looking for another job. First, the job market is crowded with all those associates who lost their job, or got their hours cut, before you. It's tough. Second, even if you are only working part time, that's better than no time. Don't walk away from a job you like during tough times if you really want to keep it. Find a way to budget yourself by either reducing your costs of living or increasing your money to live with. In other words, look for a part time job to supplement your law work. That may be hard to find too, but it's likely better than walking away and hoping for the best.
Third, stand up. That's right. Stand up. The reason your hours were cut is probably because you were "sitting down" in the crowd. If you want to be the last person they cut, make yourself so valuable to the law firm that they can't afford to cut your hours and risk your departure. But if your hours were already cut, then turn the situation around. Show that you have a value they don't want to lose. So, how do you do that? What do you say? What do you do? Well, standing up is the starting point.
Okay, you've got a choice. You can start showing up 3 out of 5 days a week, just as you are scheduled now to do. Or, you can stand up and stand out.
If you want to keep that job, and get back to full time work sooner, make sure the law firm realizes that you can face adversity and overcome it. You need to prove you will not quit. You need to show the law firm that you value your work more than even the firm does. Don't take the loss lightly. You want a job? Fight for it.
Ask your employer if you can keep working your regular schedule and make it clear that they only have to pay you for the days the law firm can afford right now. If you understand that times are tough, then tell the firm that you understand but you value your work and don't want to abandon your clients or serve them less than what they need and that you're willing to do whatever it takes to support the firm. Note that we didn't say "you're willing to do whatever it takes to keep your job."
The reality is that you get to keep your job by supporting the firm.
The firm is concerned about tough times too and your willingness to help the firm get through tough times and still be successful is, itself, proof of your remarkable value to the law firm. Associate attorneys come and go. The ones the firm wants to keep are those who are dedicated as much to the firm as to the profession itself. Of course, all this assumes that you like where you work. If you don't, then take the cut in hours as an opportunity to move on and find a job that fits you better.
But if your hours were cut and you like your job, then start thinking about what you can do to get your employer back on its economic feet because that is what will get you back to full time work. More importantly, in the process of it you will prove to your law firm that there is no associate attorney who is willing to work as hard, work as long, work as loyally, to help the firm achieve its success.
And why should you want the law firm to succeed? Because, at the end of the day, if the firm doesn't succeed, neither do you. And if you help the law firm increase its success, then you will succeed too.
A young attorney, out of law school only a few years, faced tough news and asked us how to deal with it. After working his first two years after passing the bar exam, all of it in the same mid-size law firm, he received news recently that his full time job was going part time. With student loans looking over his shoulder, he could only start calculating the hard economic reality of losing 40% of his income. His 5 day a week job was cut to 3 days, with no guarantee it won't get cut more in the coming weeks or months.
"I can't live on what I make now but I don't want to lose my job. I like what I do and where I do it but there's no guarantee it won't get worse. What do I do now?" His questions echo the fears of many young attorneys. Are you in that spot? Well, there's a few things to keep in mind.
First, keep in mind that most law firms don't like cutting associates or cutting their hours. The cost of replacing a trained associate, even one with only a few years of experience, is horrible for the law firm. The fear of losing a good young associate is as real for the law firm as is the fear of losing employment for the young associate. If cutting hours was avoidable, it would have been avoided. But the simple fact is that in an economic downturn, sooner or later the loss of business affects even the best broad-based, diversified law firm too. It may not be consoling, but consider yourself lucky you didn't get your hours cut sooner.
Second, get a grip on the present and move on. Okay, so you've got less income next week than you had last week. Figure out what you have to do to deal with it. Don't dwell on it and don't commiserate with others who are sulking and doing nothing about it. That won't help. Find a way to adjust your living expenses first. Don't just give up and start looking for another job. First, the job market is crowded with all those associates who lost their job, or got their hours cut, before you. It's tough. Second, even if you are only working part time, that's better than no time. Don't walk away from a job you like during tough times if you really want to keep it. Find a way to budget yourself by either reducing your costs of living or increasing your money to live with. In other words, look for a part time job to supplement your law work. That may be hard to find too, but it's likely better than walking away and hoping for the best.
Third, stand up. That's right. Stand up. The reason your hours were cut is probably because you were "sitting down" in the crowd. If you want to be the last person they cut, make yourself so valuable to the law firm that they can't afford to cut your hours and risk your departure. But if your hours were already cut, then turn the situation around. Show that you have a value they don't want to lose. So, how do you do that? What do you say? What do you do? Well, standing up is the starting point.
Okay, you've got a choice. You can start showing up 3 out of 5 days a week, just as you are scheduled now to do. Or, you can stand up and stand out.
If you want to keep that job, and get back to full time work sooner, make sure the law firm realizes that you can face adversity and overcome it. You need to prove you will not quit. You need to show the law firm that you value your work more than even the firm does. Don't take the loss lightly. You want a job? Fight for it.
Ask your employer if you can keep working your regular schedule and make it clear that they only have to pay you for the days the law firm can afford right now. If you understand that times are tough, then tell the firm that you understand but you value your work and don't want to abandon your clients or serve them less than what they need and that you're willing to do whatever it takes to support the firm. Note that we didn't say "you're willing to do whatever it takes to keep your job."
The reality is that you get to keep your job by supporting the firm.
The firm is concerned about tough times too and your willingness to help the firm get through tough times and still be successful is, itself, proof of your remarkable value to the law firm. Associate attorneys come and go. The ones the firm wants to keep are those who are dedicated as much to the firm as to the profession itself. Of course, all this assumes that you like where you work. If you don't, then take the cut in hours as an opportunity to move on and find a job that fits you better.
But if your hours were cut and you like your job, then start thinking about what you can do to get your employer back on its economic feet because that is what will get you back to full time work. More importantly, in the process of it you will prove to your law firm that there is no associate attorney who is willing to work as hard, work as long, work as loyally, to help the firm achieve its success.
And why should you want the law firm to succeed? Because, at the end of the day, if the firm doesn't succeed, neither do you. And if you help the law firm increase its success, then you will succeed too.
Ronald L. Burdge
Helping attorneys achieve success, every day, since 1978.
Monday
Reinventing Yourself: Where the Jobs Are Today
San Francisco is hiring computer game testers. The CIA is hiring "analysts" for its spy programs. California wineries are hiring workers. "Green" buildings are abounding so laborers are needed. In Florida, boat captains are needed for charter boats and in the oil fields.
Okay, none of this has anything to do with law. Or does it?
Many graduating seniors from the '09 class are still unemployed. Law students entering their final year and graduating in '10 may face the same dearth of opportunities. Heck, even well established law firms are struggling. So it's not surprising to see some graduates opting for non traditional work, both inside and outside the legal arena.
There's nothing "bad" to striking out on your own in such hard times. There's lots of great examples of others who left their traditional training and backgrounds to find new work during an economic downturn. Indeed a hugh chunk of the current Fortune 500 companies got their start during an economic downturn.
Thomas Edison did it. The man who founded Federal Express (Fedex) did it during an economic downturn. The stories are actually legion and great examples of creativitiy.
If your job prospects are suffering, now may be the perfect time to figure out what you love to do and go do it. In fact, it may be the very best time.
One place to get started could be the Alternative Lawyer Jobs web site here: http://www.alternativelawyerjobs.com/ .
There's also a great article written by Michelle Borchanian posted by the Michigan Bar, titled "Getting from Here to There: A Lawyer's Non-Traditional Legal or Non-Legal Job Search" here: http://www.michbar.org/journal/article.cfm?articleid=679&volumeid=53.
A little web surfing and you'll undoubtedly come up with more resources.
Okay, none of this has anything to do with law. Or does it?
Many graduating seniors from the '09 class are still unemployed. Law students entering their final year and graduating in '10 may face the same dearth of opportunities. Heck, even well established law firms are struggling. So it's not surprising to see some graduates opting for non traditional work, both inside and outside the legal arena.
There's nothing "bad" to striking out on your own in such hard times. There's lots of great examples of others who left their traditional training and backgrounds to find new work during an economic downturn. Indeed a hugh chunk of the current Fortune 500 companies got their start during an economic downturn.
Thomas Edison did it. The man who founded Federal Express (Fedex) did it during an economic downturn. The stories are actually legion and great examples of creativitiy.
If your job prospects are suffering, now may be the perfect time to figure out what you love to do and go do it. In fact, it may be the very best time.
One place to get started could be the Alternative Lawyer Jobs web site here: http://www.alternativelawyerjobs.com/ .
There's also a great article written by Michelle Borchanian posted by the Michigan Bar, titled "Getting from Here to There: A Lawyer's Non-Traditional Legal or Non-Legal Job Search" here: http://www.michbar.org/journal/article.cfm?articleid=679&volumeid=53.
A little web surfing and you'll undoubtedly come up with more resources.
Ron Burdge
Helping attorneys do their best, at whatever they decide to do, since 1978.
Tuesday
How to Protect Your Law Firm from Embezzlers
Fraud is on the increase, reports the Association of Certified Fraud Examiners (ACFE), and leading the pack is the category of occupational fraud. That means employee fraud and in a law office that can cost you big time, in both dollars and client relations.
The ACFE is the world's largest anti-fraud organization, dedicated to reducing business fraud. In their 2008 Report to the Nation, they found that nearly a trillion dollars of business annual revenues were siphoned off due to fraud. Now, their newest report indicates the level of business fraud is rising.
Driven by hard economic times, a recent ACFE national report says that instances of fraud have increased in the last year over past years and they report it is expected to continue to increase.
The report, "Occupational Fraud: A Study of the Impact of an Economic Recession", blames the increase on "intense financial pressures during the economic crisis." The mere existence of an opportunity for fraud to occur was not enough, according to ACFE.
Occupational fraud includes law firm embezzlement. The National Law Journal recently reported on a host of examples of law firm embezzlements, which are more commonly commited by support staff, usually those in charge of check writing or other accounting tasks that involve firm funds. Often, the victimized law firm doesn't even report the embezzlement. Almost always, the firm owes a fiduciary duty to its clients and partners can end up having to make up the loss themselves.
It all heightens the importance of careful hiring and monitoring of employees, particularly those charged with money responsibilities. Most law firm staffers are hard-working and honest to a fault. But in every barrel, there's probably a bad apple somewhere.
Still, there are things that can be done to protect a firm from financial loss or to catch it before it becomes huge. Here are a few tips.
1. hire carefully, check references carefully and require consent to a criminal background check. After all, if the thief doesn't get in the door, you're ahead of the problem. Sometimes just knowing that you are going to do a background check can discourage a bad applicant.
2. require 2 signatures on checks. The vast majority of employee embezzlement occurs because one person has check writing authority and that just makes it too easy.
3. review all accounts monthly. A partner who has no check writing involvement should review account statements monthly and very, very carefully. It takes more time to be careful, but only minutes to lose thousands. Catching a problem early can't end the problem before it becomes devastating to the firm. And change your reviewer periodically too so that all partners share the responsibility. You don't have to know how to balance a check book to wonder why the same person's name keeps showing up in the payee column or other regularities.
4. account reviews should alternately be private and with the check writer. One month the partner should request the account records from the check writer and do a private closed door review by himself or herself. The next month, the check writer should sit down with the partner and go through the review together.
5. change check writers periodically. Many law firms leave the same person in charge of firm accounts for years or even decades. Changing account control just simply helps to keep people honest.
6. watch for signs of drug or alcohol or gambling problems with key employees. Those are frequently involved as causative factors in employee theft.
7. don't count on your accountant to catch anything. Accountants just add numbers up. Generally they can't tell you anything about the entries being made themselves. But an accountant can tell you if something looks out of line. For instance, they may spot too many or too large a "Misc" expense category.
These are just a few tips that come to mind. In these times, economic pressures are everywhere. With a few precautions you can sharply reduce the dangers to your firm.
Burdge Law Office
Helping lawyers help their clients since 1978.
Subscribe to:
Posts (Atom)