The recommendations in the report incorporate three main themes:The law firm must be run like a business (not more like a business, but like a business.) The Managing Partner must take ownership of leading the effort, andFirm owners must take responsibility for embracing, engaging, and implementing the necessary changes for operating like a business.These themes are spread across seven areas detailed in the report; including:Leadership & Governance,Strategic Planning,Marketing and Business Development,Problematic Partners, Succession Planning,Recruiting,Retention,and Technology.In upcoming segments we will discuss above seven areas of concern and the survey's recommendations designed to help small and midsize law firm move into the future. … [Read more...] about Time for a Change in Law Firm Leadership: A Preview of Re-Envisioning the Law Firm
DIRECTV, Inc. v. Imburgia, No. 14-462: Already argued on the second day of the new term, DIRECTV is a follow-up of sorts to the Concepcion decision, which held that a California law effectively mandating that class actions be available in arbitration agreements was preempted by the FAA, and that class arbitration had to be a matter of consent between the parties. In DIRECTV, the California Appellate Court considered a contract clause drafted pre-Concepcion, which contained an arbitration clause and a class waiver, which further provided that if the customer’s state law deemed the class waiver unconscionable, the arbitration provision as a whole was unenforceable. The intent of the drafter is clear in the pre-Concepcion context: if the class waiver was held unenforceable, DIRECTV wanted to go to court, not arbitration, to fight the class action. The California Appellate Court, interpreting this provision, ruled that the reference to state law in the DIRECTV contract meant that the … [Read more...] about Supreme Court Preview, Part II: Tuning Up Arbitration Clauses
Campbell-Ewald Co. v. Gomez, No. 14-857: If you offer judgment to a lead plaintiff, offering everything he or she wants, can he or she continue to prosecute a class action? What if plaintiff doesn’t accept the offer? In Genesis Healthcare Corp. v. Symcyzk, the Supreme Court decided two years ago that where an individual plaintiff’s claims were mooted by an offer of judgment, she could not continue to prosecute a Fair Labor Standards Act collective action, as she had no separate personal interest in representing such a collective action. But in Genesis Healthcare, the Court expressly ducked the question of whether an unaccepted offer of judgment to the lead plaintiff in fact mooted her claim, taking as a given the lower court’s ruling on the issue because it had not been presented to the Court for review (provoking a sharp four-Justice dissent criticizing the mootness determination and instructing other courts: “Don’t try this at home.”). … [Read more...] about Supreme Court Preview, Part I: The Court To Overhaul Class Actions?
Writing for the Washington Post, associate editor Robert Kaiser takes the other side. He argues that a decision striking down the restriction could end up “permitting a flood of corporate money into our electoral campaigns, which are already drenched in dollars.” … [Read more...] about Olson Previews Argument, Calls Campaign Law the ‘Antithesis of Free Speech’
Excluding Income Tax Reimbursements from the Cost of Applicable Coverage. If an entity other than the plan sponsor is responsible for paying the 40% Excise Tax, that entity will likely pass the cost of the tax through to the plan sponsor in the form of increased service fees. Code Section 4980I provides that the cost of applicable coverage does not include amounts attributable to the 40% Excise Tax. However, Code Section 4980I does not address what happens when the same parties that pass on the cost of the 40% Excise Tax also seek reimbursement of income taxes incurred due to the receipt of additional service fees. This raises an important question – should the amount passed-through in the form of increased service fees to reimburse for income taxes (in addition to the 40% Excise Tax reimbursement) be excluded from the cost of applicable coverage? The IRS has requested comments on administrable methods for excluding income tax reimbursements, including what tax rate to use. The … [Read more...] about New IRS Guidance on 40% Excise Tax Previews Future Regulatory Complexity