How to Extinguish a Lessee's Possessory Interest
August 15, 2003
The ability of a trustee to sell bankruptcy estate assets free and clear of competing interests in the property has long been recognized as one of the most important advantages of a bankruptcy filing as a vehicle for restructuring a debtor's balance sheet and generating value. Still, section 363(f) of the Bankruptcy Code, which delineates the circumstances under which an asset can be sold free and clear of 'any interest in such property,' has generated a fair amount of controversy. This is so because the statute itself does not define 'interest.'
Enron Probe Examines Firms' Roles
August 13, 2003
The Enron examiner is back. And a few law firms can't be too happy about it. R. Neal Batson, the court-appointed examiner investigating the exotic financing schemes that contributed to the Enron Corp.'s bankruptcy, publicly released his much-anticipated second report on March 5.
Ancillary Businesses: Assessing Their Overhead Costs
August 13, 2003
Editor's note: In February's edition of the A&FP newsletter, an article and accompanying worksheet provided an overview of various law firm resources that might need to be committed to a proposed ancillary business. That article focused on how an ancillary business might unexpectedly challenge the physical, financial or service resources of the law firm. This month's article examines somewhat the reverse issue: financial strains on the ancillary business that could unexpectedly result from its association with the law firm.
Managing 70%
August 12, 2003
Imagine the CEO of a major international corporation saying to her Board of Directors, 'We are doing a great job of managing 70% of our productive capacity.' And the Board responding, 'Great job, here's your bonus.' Or another CEO who says, 'We don't need to hire managers for our regional plants, because 70% of our capacity is in the main plant anyway. Let the others do what they want.' Hard to imagine, isn't it? Of course it is, because the concept of ignoring 30% of your business' productive capacity ' leaving it to 'manage itself' or, worse, considering it unimportant ' would get you fired in any business in the world.
Building a Comp Plan That Works
August 12, 2003
On a recent visit to Altman Weil management consultants in Newtown Square, PA, I met with James D. Cotterman, a longtime contributor to (and just-retiring Editorial Board member of) this newsletter. Jim was the lead author and editor of both the 2nd and 3rd editions of the ABA-published book <i>Compensation Plans for Law Firms</i>. Regrettably I can't share with you Altman Weil's excellent hazelnut coffee, but I hope you'll enjoy the following condensed excerpts from our conversation about Jim's book. With Jim's concurrence, I've also prettied up my sketched notes on some compensation system and profitability interrelationships explained in the book; these flow diagrams appear on pages 2 and 5.
The USA Patriot Act and Private Equity Funds
August 03, 2003
The Patriot Act was signed into law by President Bush on October 26, 2001. Title III of the Act impacts the anti-money laundering provisions of the Bank Secrecy Act (BSA). The amendments were made to promote the prevention, detection, and prosecution of international money laundering and the financing of terrorism.
Lawyers, Providers Split over Divorce Sites
August 01, 2003
You might think a couple wanting a quick divorce would first stop at a lawyer's office ' or maybe two lawyers' offices, one for each. Not necessarily. Their first stop may be the computer. Welcome to the new world of dot-com divorce.
Direct Evidence Not Needed in Mixed-Motive Cases
August 01, 2003
The Supreme Court ended its last term holding that direct evidence of discrimination is not necessary in a Title VII mixed-motive case. <i>Desert Palace, Inc. v. Costa</i>, 123 S. Ct. 2148 (2003) brings an end to an appellate court split regarding evidentiary burdens that began with the Court's plurality decision in <i>Price Waterhouse v. Hopkins</i>, 490 U.S. 228 (1989).
Managing E-commerce Partnerships
August 01, 2003
Q: What do you risk getting when you mix commerce with the Internet?<br>A: A host of possible legal issues.<BR>Proper planning, however, will reduce the legal risk associated with e-commerce pacts and make for a less bumpy ride should the partners decide down the road that they want to go their separate ways.
Key Considerations in Choosing a Survey
August 01, 2003
Part One of this article offered a general overview and comparison of the major surveys currently available for US law firms (Altman Weil's "The Survey of Law Firm Economics"; Hoffman Alvary's "The Flash Report on Law Firm Economics"; and Pricewaterhouse Coopers' "The Law Firm Statistical Survey"). Part Two offers advice on how to select a survey.
