September-October 2010 San Antonio Lawyer
Transcription
September-October 2010 San Antonio Lawyer
September-October 2010 The Chicken Game and the Art of Negotiation Referral Fees Judge Juanita Vasquez-Gardner Have You Heard About Collaborative Law? T E X A S SAN ANTONIO PERMIT 1001 PAID US POSTAGE PRST STD September-October 10 6 Departments Features 6 10 14 18 The Chicken Game and the Art of Negotiation By Charles D. (Charlie) Butts Referral Fees By Tom Crosley and Tim Torres 10 5 9 16 14 Judicial Profile Judge Juanita Vasquez-Gardner By Stephen Gordon Have You Heard About Collaborative Law? By Kim M. Munsinger 20 President’s Page Past Presidents at the SABA Annual Luncheon Hey, Man — I’m a Professional! By Jack Pasqual Book Review Free The Market! Why Only Government Can Keep the Marketplace Competitive Reviewed by Johnny Thomas Federal Court Update By Hon. Nancy Stein Nowak and Nissa M. Dunn 18 On the Cover: 2010-2011 San Antonio Bar Association President Justice Phylis J. Speedlin and 2010-2011 San Antonio Bar Foundation Chair Wade B. Shelton. Photo courtesy of Hugh Leighton McWilliams Photography. San Antonio Lawyer is an official publication of the San Antonio Bar Association. Send address changes to the Bar Association address above. Views expressed in San Antonio Lawyer are those of the authors and do not necessarily reflect the views of the San Antonio Bar Association. Publication of an advertisement does not imply endorsement of any product or service. Contributions to San Antonio Lawyer are welcome, but the right is reserved to select materials to be published. Please send all correspondence to [email protected]. Copyright ©2010 San Antonio Bar Association. All rights reserved San Antonio Lawyer 3 September-October 2010 Lawyer San Antonio The San Antonio Bar Association 100 Dolorosa, San Antonio, Texas 78205 210.227.8822 Fax: 210.271.9614 Officers/Directors President Justice Phylis J. Speedlin President-Elect Gary W. Hutton Vice President Andrew L. Kerr Secretary Justice Rebecca Simmons Treasurer Tom g. Keyser Immediate Past President Carl Robin Teague Directors Robert J. Barrera Robert “Rusty” Biechlin, Jr. Priscilla D. Camacho C. Lee Cusenbary Sara E. Dysart Annalyn G. Smith Beth Squires James M. “Marty” Truss Mexican American Bar Association Dayla Sarai Pepi San Antonio Bar Foundation Wade B. Shelton San Antonio Young Lawyers Association Priscilla D. Camacho State Bar of Texas Directors Allan K. DuBois Victor H. Negrón Jr. Bexar County Women’s Bar Association Christine E. Reinhard Executive Director Jimmy Allison San Antonio Black Lawyers Association Sonja D. Sims Editors Editor in Chief Hon. Barbara Nellermoe Managing Editor Kim Palmer Articles Editor Sara Murray Departments Editor Leslie Sara Hyman Board of Editors Hon. Barbara Hanson Nellermoe, Chair Pat H. Autry, Vice-Chair Sherry M. Barnash Donald S. Bayne Barry H. Beer Bridgett G. Braumbaugh Charles Butts Priscilla Camacho Rudy Castillo Gayla Corley Paul Curl Cristina Tijerina de Leon Antoinette Delgado Nancy L. 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Hogue [email protected] Legal Media Production and Photography ● Video Depositions/Forensic Videography ● High-Speed Synchronization ● Mediation Settlement Brochures Preserve Your Memories! ● Editing–Linear & Non Linear Transfer VHS to DVD ● Videography/Photography ● MPEG-1/CD/DVD Conversion $10 each with the mention of this ad ● Video Duplication ● Multi-Camera Video Shoots ● Court Playback ● Slides/Negatives/Prints ● Equipment Rental ● Available for Travel 210-410-0125 [email protected] Proudly Serving Our Legal Community for Over 20 Years Layout by Kim Palmer Managing Editor, San Antonio Bar Association San Antonio Lawyer 4 September-October 2010 Back row, left to right: Carl Robin Teague (09-10), Mary Doggett (05-06), Justice Paul Green (91-92), Judge Larry Noll (92-93), Michael Black (00-01), Bobby Allen (93-94), Bob Price (85-86) and Warren Weir (97-98) Front row, seated left to right: Jack Hebdon (69-70), Jack Pasqual (86-87), Judge Fred Biery (87-88), Jenny Durbin (90-00) and Charlie Smith (76-77) Back row, left to right: Chief Justice Wallace Jefferson (98-99), Jack Hebdon (69-70), Dan Naranjo (84-85), Justice Paul Green (91-92), Carl Robin Teague (09-10), Charlie Butts (79-80), Michael Black (00-01), Bobby Allen (93-94), Judge Fred Shannon (88-89) and Bob Price (85-86) Front row, seated left to right: Mary Doggett (05-06), Sue Hall (90-91), Jack Pasqual (86-87), Judge Fred Biery (87-88), Jenny Durbin (90-00) and Justice Karen Angelini (04-05) San Antonio Lawyer 5 September-October 2010 President’s Page Past Presidents of the San Antonio Bar Association gather at the SABA Annual Luncheon The Chicken Game and the Art of Negotiation By Charles D. (Charlie) Butts San Antonio Lawyer T hroughout my legal career I have studied the Chicken Game. The Chicken Game is not really a game. It is a form of negotiation. Years ago I silently observed a game of chicken intensely played between a prosecutor and a defense attorney. The prosecutor had the upper hand, but the defense attorney had some cards to play. The defendant had a viable defense. The charging statute was ineptly drawn, ambiguous, and unduly broad. The defendant had no criminal record. Two State’s witnesses had been convicted of fraud. In my mind, a jury trial presented a good chance for a “not guilty” verdict, or perhaps a hung jury. After the prosecutor and defense attorney sparred back and forth awhile, the defense attorney advised his client to plead “guilty.” The defense attorney chickened-out too early. That’s when I got the idea for this article. I hope the article will stimulate your thinking when you play the Chicken Game. What is the Chicken Game?1 There are different versions of the Chicken Game, but in one well-known version, two drivers drive from opposite directions toward one another keeping the left wheels of their vehicles on the center white line. The first to veer off the white line becomes the “Chicken”; the other, the “Winner.” Tragically, there are instances where neither driver veered away soon enough, resulting in the death of both drivers. The movie Rebel Without a Cause illustrates this tragic version of the Chicken Game.2 Two teenagers, James Dean and another, raced stolen cars headlong toward a cliff over the ocean. The one who stopped or bailed out first would be dubbed Chicken. The one who bailed out last would be the Winner. When Dean’s opponent at the last minute tried to bail out, his coat sleeve caught in the door. Desperate efforts to free himself failed, and he drove off the cliff to his death. Dean was ultimately the Chicken, but his opponent, the Winner, experienced a fatal victory. Does the Chicken Game apply in business? You bet! The Chicken Game applies to just about every form of negotiation: labor strikes, proposed mergers, business acquisitions. Consider as an example, the vigorous battle between Andrew Carnegie and George Pullman to acquire and control the railroad sleeping car industry in the 1860s. Carnegie founded Carnegie Steel. Pullman invented the railroad sleeping car — the “Pullman car.” Both men vied for the company at a meeting in a New York hotel and happened to be walking up some stairs side-by-side when inspiration struck Carnegie like a bolt of lightning. Carnegie told Pullman that the two of them were plain fools for continuing to butt heads and suggested they join forces.3 Carnegie triumphantly stated in his autobiography that he had stumbled upon a selling point, a weak spot, in Pullman’s makeup — his ego. So when Pullman asked Carnegie what they would call the company, Carnegie replied, “Pullman, of course!” The success of the resulting merger illustrates an important principle in playing the Chicken Game: know, and take advantage of, your opponent’s weaknesses. A personal story illustrates another important Chicken Game principle. During the Great Depression, Mr. Ed, a friend of my Dad, was in the retail furniture business and fell behind in his payments to the bank. The bank’s president hounded Mr. Ed for payment. The president finally gave Mr. Ed an ultimatum: pay by noon the following day or face foreclosure. Mr. Ed told the president that he could not pay. The president 6 September-October 2010 responded, “Then, the bank will foreclose on your note.” Mr. Ed grabbed the keys to his store, slammed them on the president’s desk, and replied, “I’ll save you the trouble. Here’s the %$#@**&& keys. Now, you are in the furniture business!” With that, Mr. Ed stomped out of the bank. Trailing behind, the president pleaded with him to re-consider. Mr. Ed finally relented, “Well, all right but I need at least a 90day extension and may need even more time.” The president conceded. Mr. Ed won that Chicken Game because he knew the bank did not want to be in the furniture business. As the story illustrates, what your opponent knows or doesn’t know about your side can turn the tide in your favor. Does the Chicken Game apply to international relations? History provides many examples of international Chicken Games. Consider the CubanRussian Missile Crisis during President John F. Kennedy’s administration. Russia had become a nuclear threat to the United States resulting in a scary, very real Chicken Game among the United States, Russia, and its ally Cuba. Had Russia not backed off, perish the thought. During the Cold War the term “brinkmanship”4 was coined, by Secretary of State John Foster Dulles, who advocated the policy against the Soviet Union. Secretary Dulles explained that brinkmanship is the ability to get to the brink of war, without going to war. This point might be reached through diplomatic maneuvers by creating the impression that one is willing to use extreme methods rather than concede. During the Cold War, the threat of nuclear force was often used as such a deterrent. Fortunately, the United States won that Chicken Game. Recently, the Chicken Game played out again between the United States and Russia when the United States offered to exchange ten Russian agents for Russia’s release of four Russians (yes, Russians) imprisoned in Russia for eleven years for spying for the West. Initiated by the United States, the agreement was reached, and the ten Russian agents were flown back to Russia just eleven days after their arrests in the United States. Thus, bringing a swift, successful end to a Chicken Game evoking memories of Cold War style bargaining, a/k/a brinkmanship. Happily, the exchange of prisoners underscores a new-era relationship between Moscow and Washington. But the game continues today, as North Korea and Iran flex potential nuclear muscles. Does the Chicken Game apply to the practice of law? Both civil and criminal cases present opportunities for the Chicken Game. Criminal plea-bargaining provides a perfect example. When a person is charged with committing a criminal offense, the prosecutor and defense counsel often “dance back and forth” in an effort to resolve a case without a formal trial. If the defendant accepts the prosecutor’s first offer, he loses the advantage of a better offer. For example, if the prosecutor offers to dismiss a firstdegree murder charge in exchange for the defendant’s guilty plea, the defendant loses any chance of acquittal, but avoids the risk of the death penalty. If the defendant refuses the offer, the prosecutor must decide whether to “sweeten” the plea offer, stand firm, or try the case. In most cases, accepting the first offer is unwise. Why is it unwise to accept the first offer? Many defense attorneys fail to consider that most prosecutors do not want to try a case. Prosecutors have full caseloads and little to lose by sweetening a plea offer. To obtain the best offer for a client, a defense attorney should investigate all of the angles, find the holes in the State’s case, and identify strong points of defense. If the defense attorney wants to win the Chicken Game, the attorney must give the prosecutor something worthy of a sweetened deal. A defense attorney who approaches a prosecutor with something solid, something real, San Antonio Lawyer 7 will have a better chance of obtaining a better deal for the client. If the prosecutor offers a better deal, defense counsel wins that Chicken Game. Why do prosecutors offer better deals? Large caseloads make it impossible for any prosecutor’s office to try every criminal case. Attempting to try every case creates a backlog in the courts. This fact alone motivates both sides to resolve the case through plea-bargaining. The public and the news media often criticize the pleabargaining process as resulting in lesser punishments, but there are cases in which the plea-bargaining process results in more severe punishment. Consider the situation of a hypothetical district attorney and the defendants he prosecutes. Assume the district attorney must resolve 100 cases per year with a budget of $100,000. With only a $1,000 to spend on investigating and prosecuting each case, half of the defendants will be acquitted. But if the district attorney can convince 90 defendants to accept a plea bargain, the district attorney can focus his resources on the 10 defendants who do not plead guilty, spend $10,000 on each case, and perhaps get a conviction rate of 90%. Assume further that a defendant probably faces a 90% chance of conviction if he goes to trial and makes his choice accordingly. He should reject any proposed deal that is worse for him than a 90% chance of conviction but may well accept one that is less attractive than a 50% chance of conviction, leaving him worse off than he would be in a world without plea- bargaining. All defendants would be better off if none of them accepted the district attorney’s offer, but each is better off if they accept. They are caught in a many-player September-October 2010 version of the Chicken Game. Here’s how the Chicken Game can play out in a criminal case. Consider the following scenario. An elderly victim is fatally shot. The murder weapon is not found. A 60-year-old man with a prior conviction for aggravated assault is charged. There’s one eye witness — the defendant’s girlfriend — Suzy Q — plus some circumstantial evidence pointing to the defendant. There is also a tape recording of an argument between the victim and the defendant in which the victim threatens to kill the defendant over a business transaction. Thirty days later, Suzy Q states that the victim burst into the defendant’s office, carrying a .32 caliber pistol, and that the defendant took a loaded .45 revolver from his desk drawer and shot the victim. After waiving arraignment, defense counsel files various motions, including motions to quash the indictment and to suppress the tape recording. At the pre-trial hearing defense counsel and the prosecutor discuss the possibilities of a guilty plea, reduction to a lesser offense, dismissal of the indictment, and a trial either before the court or a jury. The prosecutor offers 25 years “hard time.” Defense counsel says, “No way.” The prosecutor reminds defense counsel that Suzy Q provided a written statement identifying the defendant as the killer and stating that the defendant owned a .45 revolver. Defense counsel reminds the prosecutor that he was not present when Suzy Q made her statement and he has not crossexamined Suzy Q. So, the Chicken Game begins! Defense counsel demands a hearing on his pre-trial motions. The prosecutor threatens that all deals will be off if the defendant pursues his motions — in short, that the State will press for life imprisonment. The prosecutor reminds defense counsel about Suzy Q’s incriminating statement and insists Suzy Q would make a credible witness. Defense counsel responds by reminding the prosecutor about the victim’s prior threats toward defendant and that the victim was carrying a loaded pistol when defendant shot him. “That may be,” the prosecutor says, “but Suzy Q said the victim never pointed his weapon at the defendant.” At that point, defense counsel demands a hearing on his pretrial motions. The prosecutor withdraws his prior offer. Judge Penn, as expected, overrules the motion to quash and all other pretrial motions, and sets the case for jury trial. The future looks bleak indeed for the defendant. But the Chicken Game is far from being over. A jury of 8 men and 4 women is seated. The indictment is read and the defendant pleads “Not Guilty.” The State puts on several witnesses, including the medical examiner, homicide detectives, and EMS personnel. The State introduces the tape recording of the argument between the defendant and the victim. Judge Penn recesses for lunch. Hungry members of the press, courtroom spectators, and courthouse personnel all wait to hear Suzy Q testify and “drop the hammer” on the defendant. After the noon recess, the prosecutor dramatically announces, “The State of Texas calls Miss Suzy Q as its next witness.” At that point, the Chicken Game comes to a screeching halt. Defense counsel asks to approach the bench to confer with Judge Penn and the prosecutor in chambers. In chambers, defense counsel files a 1. Be a close, careful, attentive listener. Do not do all of the talking. 2. Study the opponent’s facial expressions, eye movements, gestures, eyebrow movements, blinks (whether occasional or rapid), and eye contact. 3. Watch for any coughing, comments like “to be honest,” “in all honesty,” or “truthfully speaking.” Phrases like these may reveal possible insincerity or deception. 4. Search for your opponent’s needs, frustrations, and idiosyncrasies. 5. If your opponent is a “talker,” encourage, pursue, listen, and closely observe. 6. Look for signs of ego, desire for self-esteem, subjection to flattery, possible fears, and desire to be loved and respected. Take advantage of those and any other signs of vulnerabilities. 7. Ascertain your opponent’s strengths and weaknesses. 8. Compare your own strengths and weaknesses to those of your opponent. 9. Don’t be overanxious. Keep an open mind, and don’t jump to a rash conclusion. 10. Be honest to both your opponent and yourself. 11. Hang in there, persevere, and don’t “Chicken out.” To read more about the art and science of negotiation, see the following references: MORTON DEUTSCH, RESOLUTION OF CONFLICT: CONSTRUCTIVE DESTRUCTIVE PROCESSES (1974); AVINASH K. DIXIT & BARRY J. NALEBUFF, THINKING STRATEGICALLY: THE COMPETITIVE EDGE IN BUSINESS, POLITICS, & EVERYDAY LIFE (1993); CHRISTOPHER W. MOORE, THE MEDIATION PROCESS: PRACTICAL STRATEGIES FOR RESOLVING CONFLICT (3d ed. 2003); WILLIAM POUNDSTONE, PRISONER’S DILEMNA 197-201 (Doubleday NY 1992) available at www.heretical.com/games/chicken.html; Elmer Wiens, Operations ResearchGame Theory, www.egwald.ca/operationsresearch/chickengame.php (last visited July 26, 2010). 2 Chicken(game), http://en.wikipedia.org/wiki/Chicken_(game) (follow “Rebel Without a Cause” hyperlink) (last visited July 26, 2010). 3 See George Pullman-Definition, www.wordiq.com/definition/George_Pullman; Andrew Carnegie-Definition, www.wordiq.com/definition/Andrew_Carnegie. 4 Brinkmanship, http://en.wikipedia.org/wiki/brinkmanship (last visited July 26, 2010); Korean Brinkmanship Risks Disaster, BRISBANE TIMES (June 18, 2010), www.brisbanetimes.com.au/opinion/editorial/korean-brinkmanship-risks-disaster-20100617-yjpx.html. 5 TEX. R. EVID. 504; PAT PRIEST, TEXAS COURTROOM CRIMINAL EVIDENCE § 5-4(b)(1) (1998). Under the husband/wife privilege, a person cannot be compelled to testify against a spouse about communications between the couple during the marriage. 6 On the Internet, use a Google or Yahoo search for: “The Chicken Game.” The search will result in a surprisingly long list of useful and interesting articles, books, and citations about the “Chicken Game.” 1 AND San Antonio Lawyer 8 September-October 2010 motion signed by both Suzy Q and the defendant to prevent the district attorney from calling Suzy Q as a witness. Why? Because the defendant and Suzy Q were married! Defense counsel presents a certified copy of a marriage certificate showing that the defendant and Suzy Q were married before the victim was shot. The defendant and Suzy Q rely on the spousal privilege.”5 Judge Penn grudgingly grants the motion, preventing the shocked prosecutor from calling Suzy Q to testify! No eyewitness. Game over! But the game could have played out differently. What if the defendant and Suzy Q had not been married? The prosecutor obviously would have had the upper hand, assuming Suzy Q was available to testify. In that case the defendant would have had to try to plea bargain, provided the prosecutor was willing. If the prosecutor was unwilling, the defendant would have been in trouble. However, if the defendant knew that Suzy Q had departed for “parts unknown” and possibly, probably, or actually could not be found to testify, Small, Jeff Ad the ball would have switched back to defendant’s “court,” especially if the prosecutor were unaware of Suzy Q’s unavailability. These variables show that the Chicken Game depends a lot upon who knows what when negotiations reach a critical stage. Conclusion. The Chicken Game is also played in civil cases as well. Indeed, the game is played in all sorts of dealings, too numerous to list here. When engaging in the process of negotiation, perhaps as a game of Chicken, consider the suggestions on page 8, as the game is and will continue to be part of our lives. Those interested in learning more about the Chicken Game will find the citations in the endnotes helpful.6 Charles D. (Charlie) Butts is a former President of the San Antonio Bar Association (SABA) and the 2010 Recipient of SABA’s Joe Frazier Brown Award of Excellence. Mr. Butts has been board certified in criminal law since 1975 and has been listed in the Best Lawyers of America (Criminal Law) since its first publication. He is married to the Honorable Shirley W. Butts, Senior Justice, Fourth Court of Appeals, San Antonio. Hey, Man — I’m a Professional! The late District Judge Jim Barlow witnessed more than his share of bizarre courtroom antics during his long and distinguished career. “Judge Jim” always ran a tight ship, but that did not cause him to limit a defendant’s right to be represented as the attorney chose. He told of one particular incident that bears repeating — not only from the humor aspect — but as a reminder that a jury makes its own decisions, regardless of the shortcomings or tactics of counsel. As Judge Jim told it, a local man was on trial for stealing meat. He had to go to trial because he had a less-than-pristine criminal record. “One more guilty verdict, and off he would go for life.” The local lawyer, long since deceased, put his client on the stand, and the questioning went something like this: Q. Now, Henry, this is not the first time you have been in court, is it? A. No, sir. Q. And, as a matter of fact, you have been convicted of theft and burglary? 11/26/07 7:00 PM Page 1 A. Yes, sir. Q. And you have also been convicted of running a threecard-monte game? A. Yes, sir. Q. Now, Henry, did you steal this meat? A. No, sir, I don’t do no small-time crime; it ain’t worth it. The jury walked him! The foreman told Judge Barlow, after the verdict, that they admired the man’s honesty. — Faithfully recorded by Jack Pasqual. Law Office of Appeals Briefed/Argued Error Preservation Dispositive Motions Original Proceedings Jury Charges Research Civil Appeals Litigation Support Appellate Mediation Flexible Arrangements (Hourly, Contingency, Flat Fee) Not certified by the Texas Board of Legal Specialization San Antonio Lawyer 9 Jeff Small 210.496.0611 [email protected] f: 210.579.1399 September-October 2010 Referral Fee$ By Tom Crosley and Tim Torres W hether you are a sole practitioner or a partner in a large law firm, it is important to have a basic understanding of the rules governing referral fees. For example, assume a potential client comes to you looking for legal representation in her personal injury claim against a negligent truck driver. You decide to refer her to a plaintiff’s PI lawyer at another firm. Can you accept a contingent referral fee from the handling attorney? What legal and ethical obligations do you have to the client? To your partners? What are the potential conflicts of interest? What must you do to protect yourself from disciplinary action, reduce your risk of liability for legal malpractice, and ensure the fee sharing agreement is enforceable? Under Rule 1.04(f) of the Texas Disciplinary Rules of Professional Conduct (“the Rule”), effective March 1, 2005, a division of fees between lawyers not in the same firm must be (1) “in proportion to the professional services performed by each lawyer” or (2) “made between lawyers who assume joint responsibility for the representation.”1 Also, the client must consent “in writing to the terms of the arrangement prior to the time of the association or referral proposed.” The client must consent to the identity of all lawyers or firms participating in the fee sharing agreement (“FSA”), whether fees will be divided based on proportion of services or joint responsibility, and the share of the fee that each will receive, or if based on proportion of services, the basis on which the division will be made. See also Rule 1.04(g) specifying requirements for confirmation of the fee sharing agreement and limiting collection of fees not so confirmed to reasonable value of legal services and reasonable and necessary expenses actually incurred on behalf of the client. Finally, the aggregate fee cannot be unconscionable under Rule 1.04(a). In our hypothetical, if you want to refer the client to a personal injury lawyer at another firm for a portion of the contingency fee, you are probably not considering a division of fees “in proportion to the professional services performed by each lawyer.” But if you are, Comment 12 to Rule 1.04 explains that each lawyer must be “performing substantial services on behalf of the client with respect to the matter,” “services San Antonio Lawyer 10 beyond those involved in initially seeking to acquire and be engaged by the client.” There must be a reasonable correlation between the division of services and the division of fees. But an agreed division of fees should control if each of you performs substantial services, even though the division is not directly proportional to actual work performed, as long as you made a good faith effort to set a division of fees proportional to the services to be performed. Under these circumstances, the courts should not second guess your apportionment. However, you directly represent the client, with the entire consequences attendant on legal representation. JOINT RESPONSIBILITY The alternative is to agree to assume “joint responsibility” for the representation. What does this mean? Joint responsibility is less onerous in Texas than it is in other jurisdictions. Under ABA Model Rule 1.5 (e), “joint responsibility for the representation entails financial and ethical responsibility for the representation as if the lawyers were associated in a partnership.”2 In states that have adopted the ABA Model Rule (the majority), joint responsibility September-October 2010 means joint and several liability: “financial and ethical responsibility as if the lawyers were associated in a partnership.” The referring attorney is vicariously liable for legal malpractice by the handling attorney.3 In Texas, Comment 12 to Rule 1.04 distinguishes the rule from its ABA Model Rule counterpart. Broadly, joint responsibility does not equal joint control.4 It does not create joint and several malpractice liability equal to that of a partner. It requires no particular legal services from the attorneys. However, the referring attorney has initial and continuing professional and legal obligations to the client. Before referring a case, you are obliged to ensure adequate representation of the client in the matter. This means conducting a reasonable investigation into the client’s matter and referring it to a lawyer whom you reasonably believe is competent to handle it. Also, you have the primary responsibility for ensuring client consent to the referral in keeping with the requirements of the rule. You also have a continuing obligation to ensure adequate representation and attorneyclient communication. Adequate communication does not mean you must attend every client meeting (for example), or even any meeting, or receive copies of correspondence. However, you are responsible for monitoring the matter enough to ensure the client is reasonably informed so as to be able to make informed decisions regarding representation. Cruse v. O’Quinn sheds light on the meaning of joint responsibility. Cruse involved a fee dispute between attorneys over an FSA based on joint responsibility. Cruse held that an attorney disbarred before a settlement or other final resolution of the case cannot, as a matter of law, complete their agreement to share joint responsibility, and therefore cannot share in the eventual contingency fee. This was so even though there were no remaining specific legal services assigned to the then-disbarred attorney under the FSA.5 In effect, the agreement to assume joint responsibility requires the existence of an attorney-client relationship between each attorney and the client, consistent with the Rule’s abolition of fee sharing based on pure referrals. In contrast, the work required by an FSA based on the proportion of professional services to be performed might be completed prior to disbarment, depending on how the responsibilities are assigned in the FSA, allowing the disbarred attorney to collect a fee.6 Joint responsibility for the representation, and your continuing obligations to the client, implicate a duty of loyalty to the client. Because you continue to represent the client, you have potential conflicts arising from that representation. At a minimum, it will complicate your conflicts analysis. For example, suppose you or your firm represents or previously represented a corporation that is the defendant in the referral client’s case. Or imagine this situation: You or your firm represents a criminal defendant in a DUI case and the victim asks you about bringing a civil suit against your client. In either of these situations, you may have a conflict if the matters are substantially related. Even if you do not have an impermissible conflict under TDRPC 1.06 or 1.09, your firm may wish to avoid even the appearance of a conflict to keep the existing client happy. MALPRACTICE LIABILITY Because the referring and handling attorneys both represent the client, they are both subject to malpractice liability. Under the Texas Rule, the referring See also Ethics Opinion 577, March 2007, which discusses hiring of lawyers who are not partners, shareholders or associates of the law firm and billing the client at a different rate than that paid to the hired lawyer. The opinion first characterizes lawyers as “firm lawyers” and “non-firm lawyers.” “Firm lawyers” include partners, shareholders and associates of the firm, as well as “other firm lawyers” – those who are reasonably considered to be in the firm based on their relationship with the firm. The ethics opinion provides examples of objective factors which can be used to make the determination and provides some examples of other firm lawyers, “those referred to as of counsel senior attorneys, contract lawyers, and part-time lawyers.” The opinion concludes that billing for non-firm lawyers at different rates than the hiring firm pays (either more or less) constitutes fee sharing subject to rule 1.04(f). Billing at the actual rate paid does not implicate the rule. See also Ethics Opinion 450, November 1987, concluding that requirements of TCPR DR 2-107(A) do not apply to fee sharing with lawyer designated as “of counsel” to the firm and having a regular, continuing and substantial relationship with the law firm. 1 2 See Comment 7 to ABA Model Rule 1.5 (e). For additional discussions of the meaning of joint responsibility in Texas and other states, see Hile, “How Not to Lose Your Referral Fee,” 24th Annual Advanced Personal Injury Law Course, Chapter 32.1; Bosworth, Is the Model Rule Outdated? Texas Carries Referral Fee Responsibility into the Limited Liability Era, 84 Tex. L. Rev. 509, 519-22 (2005); Arizona Bar Ethics Opinion 04-02 (2004); Comments to ABA Model Rule 1.5(e); ABA Informal Op. 85-1514 (1985). 3 4 The New Rules: Frequently Asked Questions, 68 Tex. B. J. 311 (2005). 5 Cruse v. O’Quinn, 273 S.W.3d 766 (Tex. App.—Houston [14th Dist.] 2008, pet. denied). 6 See also Texas Ethics Opinion 568, April 2006. 7 See Comment 14 to Rule 1.04. See also Hile, n.3, supra; Bosworth, n.3, supra, at 509. 8 TEX. REV. CIV. STAT. ANN. ART. 6132b-4.04. 9 Johnson v. Brewer & Pritchard, 73 S.W.3d 193 (Tex. 2002). 10 See, e.g., Dardas v. Fleming, Hovenkamp & Grayson, 194 S.W.3d 603, 613-617 (Tex. App.—Houston [14th Dist.] 2006, pet. denied). 11 See Hile, n.3 supra. San Antonio Lawyer 11 September-October 2010 attorney and handling attorney are each responsible for their own negligence. As a referring attorney, you may be liable for negligently referring the client to an attorney not competent to handle the matter or who is known by you to be unethical. You may be liable for your own negligence in ensuring adequate attorney-client communications, for example, if you have reason to know that communication is inadequate and you fail to take steps reasonably necessary to correct it. You may also be liable for negligence in the referral, for negligently providing false or inadequate information to the handling attorney so as to prejudice the client’s case. In addition to liability for your own negligence, you may be vicariously liable for the negligence of the handling attorney — joint and several liability — but only if one of three conditions occurs: (1) the joint representation meets the legal standard for a joint venture (unlikely for a single referral based on joint representation, but watch out for an ongoing agreement to refer clients); (2) you are liable based on your own negligence and your negligence is determined to be more than 50% responsible for the client’s damages; or (3) you acted in concert with another person and violated specific provisions of the Texas Penal Code with specific intent to harm others.7 Dear Editor, We are writing to thank you for featuring our recent asylum case in the San Antonio Lawyer magazine [Rudy Castillo, “Asylum and Angels,” May-June 2010] and to give credit where credit is due. While we certainly are not the only attorneys in town to take on pro bono asylum cases, we agreed to be featured in the magazine in the hope that other non-immigration attorneys would learn of this way to volunteer their time in the interest of justice. It was not an easy task but it was a tremendously humbling and rewarding experience. The credit first goes to Thomas Sanders of our firm, Cox Smith, from whom we got the idea to take on an asylum case. We had been looking for a volunteer opportunity and when we learned that Thomas had represented asylum applicants, we knew that we had found it. Next, we extend our great thanks to Jonathan Ryan, the executive director of San Antonio’s Refugee and Immigrant Center for Education and Legal Services. Jonathan and his organization introduced us to our client and walked us through the ins and outs of asylum claims. We would certainly have been lost without him. Finally, the article in San Antonio Lawyer mentions that we were assisted by “a volunteer translator.” This understates both the time required and the impact of the translation that Yonas Keleta and Kahsai Kifle provided. While our client spoke some English, it would have been impossible to prepare the required detailed report of her mistreatment at the hands of the Eritrean government without a translator; but she was wary of our suggestion of using an “official” translator. Messrs. Kelata and Kifle are part of the small but close-knit Eritrean community of San Antonio. Our client was comfortable speaking with them and through them, to us. They volunteered their significant time and emotion to someone they had never met but with whom they were connected through a shared immigrant experience. They truly taught us about kindness and generosity of talent and spirit. - Leslie Hyman and Meagan Gillette San Antonio Lawyer 12 DUTIES TO YOUR FIRM What about your obligations to your firm? Partners in a firm owe to one another duties of loyalty and care, along with obligations to discharge those duties in good faith and in the best interests of the partnership.8 This duty includes refraining from competing with the partnership. Even associates in a firm have a fiduciary duty to their employer not to accept a referral fee for referring a case without their employer’s consent when the referral opportunity belonged to the firm.9 Also, the firm shares your risk of malpractice liability in the referral case. Finally, the firm must be informed of the joint representation so that firm conflicts may be avoided. Lawyers who are restricted by their employer, by law, or by contract from representing clients on the side may be legally entitled to collect a referral fee under the Rule; but doing so might subject them to disciplinary action (federal and state government lawyers) or suits for breach of contract, breach of fiduciary duty, fraud, etc. Furthermore, you may not be able to collect your fee if the fee-sharing agreement violates the Rule. Generally, the TDRPC may be deemed by a court to be an expression of public policy such that a contract violating them is unenforceable as against public policy.10 CLIENT CONSENT A core requirement of the Rule is the client’s consent in writing, prior to the time of the referral and satisfying enumerated disclosure requirements — identity of attorneys splitting the fee, whether based on proportionate services or joint responsibility, and how the fee will be split. As the referring attorney, you have the primary responsibility for ensuring compliance with the disclosure requirements of the Rule. To enable the client to give informed consent to the referral, the client may need to meet the proposed handling attorney before consenting to the referral.11 The requirement for written consent may be satisfied in different ways, as suggested by the form language on the Texas State Bar’s website. For example, the writing may be in a contract with the referring attorney, in the handling attorney’s contract, or in separate agreements. The form language is a significant change from the referral fee language seen in typical contingency contracts. Referring and handling attorneys September-October 2010 should be familiar with this language. To ensure that you are in compliance with the client consent provisions of the Rule, the safest bet is to adopt the form language. Added twists arise in the context of referrals to or from lawyers in other states. The various lawyers may be bound by different rules. You may need to be admitted to practice in the other state, pro hac vice or otherwise, to share joint responsibility in the matter. You should understand the corresponding rule in the states whose law might apply to a malpractice lawsuit in the case. You may be jointly and severally liable for any malpractice by the handling attorney. The fee-sharing agreement may not be enforceable if it fails to satisfy the rules in the other state. A “choice of law” clause in the fee-sharing agreement may be void or voidable as against public policy in either or both states. Ensuring that the handling attorney has malpractice insurance that will indemnify you in the event of his negligence is important under these circumstances. CONCLUSIONS Returning to our hypothetical, you may accept a contingent share of the handling attorney’s fee provided you comply with the requirements of Rule 1.04(f) — client consent in writing prior to the time of the referral; identifying all of the lawyers or firms that will share in the fee; specifying whether the fee split is based on proportion of professional services or joint responsibility; and the share of the fee that each will receive or, if based on proportion of services, the basis on which the division will be made. And the aggregate fee must not be unconscionable. We suggest using or adapting the form language which can be found on the Texas bar web site (search the web for “Texas bar form referral language”) as well as in the Final Report and Recommendations of the Referral Fee Task Force. As for your legal and ethical obligations to the client, you must conduct a reasonable investigation of the client’s claims. Identify someone you reasonably believe is competent to handle the case. Ensure client consent is obtained in writing at the outset of the relationship. Preferably, this consent will be included in the contingency fee contract signed by the client. Monitor the matter throughout the representation to keep reasonably informed of the matter. And ensure that adequate representation and adequate communication between the handling lawyer and the client occurs. As for your obligations to your partners, inform your partners when you agree to assume joint responsibility for representation so that imputed conflicts may be avoided. In the absence of conflicts, refer the client and accept a referral fee on behalf of the firm unless 1.) the firm passes on the opportunity or 2.) the partnership agreement alters these obligations. If you leave the firm before final resolution of the referral case, address pending referral fees in the separation agreement. As for potential conflicts, referring the case to a handling attorney with a fee-sharing agreement based on joint responsibility creates ongoing obligations to the client. That means you have a duty of loyalty to the client. Because you directly represent the client, you should conduct your conflicts analysis accordingly. For example, if the matters are substantially related, would the representation of either client be materially affected? If not, can you obtain informed consent from both clients? Do you have confidential client information that would be valuable to the referral client in her case against your existing client? If you are a referring attorney, satisfying these requirements will protect you from disciplinary action, reduce your risk of liability, and ensure that you will be able to collect your fee from any eventual recovery. Tom Crosley is board certified in Personal Injury Trial Law and Civil Trial Law, and focuses his practice on the litigation and trial of personal injury and wrongful death cases. Mr. Crosley serves on the board of the Texas Trial Lawyers Association. He is a past president of the San Antonio Trial Lawyers Association, and a former director of the San Antonio Bar Association. Tim Torres served 21 years on active duty in the Air Force, retiring in the rank of lieutenant colonel in 2009. Mr. Torres received his law degree with honors from Saint Louis University in 2000, and was admitted to the State Bar of Texas in November 2009. He is an associate in the Crosley Law Firm, P.C. San Antonio Lawyer 13 September-October 2010 Judge VasquezGardner with husband, Mike Gardner, and son, Christopher Judge Juanita Vasquez-Gardner By Stephen Gordon S ince taking office in September of 2000, Judge Juanita VasquezGardner has presided over the 399th Bexar County District Court and is now in the middle of her third term. Judge Vasquez-Gardner was born in Burley, Idaho. Her father, originally from Laredo, Texas, met and married her mother in Cotulla, Texas, after her mother’s family emigrated from Mexico in the 1950s in search of a better life in the United States. Her parents later moved to Idaho, where they earned a living as migrant workers. In the 1960s, Judge VasquezGardner’s father volunteered for the National Guard and later served in Vietnam as an infantryman. He was stationed in Louisiana, Kentucky, Washington, before returning to Idaho. He continued his military service by serving in Korea in the 1970s and was stationed at Fort Sam Houston before separating from the Army. As a result, the Judge spent most of her youth in San Antonio. Along the way, she had two sisters to keep her company — one younger and one older — all about one year apart in age. Her younger sister lives in Houston and her older sister lives in Albuquerque, New Mexico. Judge Vasquez-Gardner attended Cole Junior-Senior High School, which has such notable graduates as basketball legend Shaquille O’Neil and conservative politician Alan Keys. She recalls a pretty stable and happy childhood but was dealt a severe and shocking blow in her senior year, just a few months shy of her high school graduation. On March 7, 1981, the Judge’s father died unexpectedly of a brain aneurism at the age of 43. He had previously been in excellent health, with no sign of any illness. Feeling a need to stay close to her family, while at the same time continuing her education, she decided to stay at home and enroll in the University of Texas at San Antonio (UTSA). Initially, the Judge was unsure what her field of study should be. She decided to pursue an English degree; however, it quickly became clear that this was not the major for her as she did not long to spend her days devoted to Beowulf and Shakespeare. Soon after, she turned her eye to a completely different field — criminal justice. When asked how she came to pick this field of study, she recounts some memories from childhood that provide some obvious clues. As she recalls, neither her mom nor dad had originally had much of a formal education. Later in his life, Judge Vasquez-Gardner’s father obtained his GED and went on to pursue some college-level study, which included San Antonio Lawyer 14 courses in criminal justice. The Judge found some of her father’s criminal law books quite compelling. Judge Vasquez-Gardner enjoyed her time at UTSA and found her professors to be great teachers who treated the students with genuine respect. The classes she took reinforced her belief that criminal justice was the right path for her. Based on her choice of study, she initially considered a career in law enforcement; however, while at UTSA, she took part at an internship program at the Bexar County District Attorney’s Office which proved to be a pivotal point in her life. She immediately fell in love with the job and began thinking seriously about attending law school and becoming a prosecutor herself someday. Initially, she was somewhat intimidated about going to law school and unsure whether she had the credentials to be successful as a law student. Later, after discussing the LSAT with some of her classmates and realizing the similarity of their experiences to her own, she became more confident. She figured that if they were taking the LSAT and thought they could score well enough to get into law school, she probably could, too. Although she had decided to take the plunge and register for the LSAT, she kept her plans somewhat secret. Rather than sign up for the cost- September-October 2010 prohibitive study classes, she obtained the study books from the bookstore and went the self-study route. In the meantime, she needed to find a job to make ends meet and, through a friend, landed a job in attorney Oliver Heard’s office. She began in the data processing department and made some contacts that would prove very important later in life. Her plan was to work there for a year and save enough money to pay her bills and take as many practice LSATs as she could in her spare time. Her hard work and self-study routine paid off better than she had expected, and she was accepted at all four law schools to which she applied. Judge Vasquez-Gardner attended law school at the University of Texas at Austin because of the low tuition costs and its proximity to San Antonio. She began in 1986 and describes the experience as “a complete culture shock” in terms of the size and scope of the campus, the attitude of the other students and professors, and the highly competitive atmosphere, which was quite a contrast to her experience at UTSA. Nevertheless, she adapted by focusing on the school’s positive aspects. She fondly recalls being taught Constitutional Law by then-professor, Barbara Aldave, who would go on to be Dean of St. Mary‘s Law School in the 1990s. She also made a few very good friends at law school who would often commiserate with her when times Judge Vasquez-Gardner and Max were hard. Chief among these friends was Melissa Barlow Fischer, Bexar County Criminal District Court Administrator and daughter of legendary Judge James Barlow, recently deceased. Upon graduating in 1989, Judge VasquezGardner returned to San Antonio and interviewed with the Bexar County DA’s office where, after passing the Bar, she worked for the next eleven years under Fred Rodriguez and, later, Steve Hilbig and Susan Reed. As is customary, she started in the intake section and worked her way up through the misdemeanor and felony sections. Along the way, she handled cases of every increasing complexity from drugs crimes to violent crimes. During her tenure in the DA’s office, Judge Vasquez-Gardner gained experience in virtually every section of the office, except the appellate section. In 2000, three new district courts were created, and Judge VasquezGardner was appointed to the 399th by Governor George W. Bush. Although she was interested in the position, the appointment came as a bit of a surprise because the Judge did not aggressively lobby to obtain it. Although she discussed the idea with Judge Sharon MacRae, who encouraged her to throw her hat into the ring, Judge Vasquez-Gardner did not consider herself as political or well-connected as some of the other contenders. While she ultimately won the appointment, her celebration was short-lived as she immediately found herself in a contested election just two San Antonio Lawyer 15 Judge Vasquez-Gardner and Melissa Barlow Fischer, Bexar County Criminal District Court Administrator months later. After winning the election, Judge Vasquez-Gardner immediately hit the ground running and spent much of her first year on the bench in jury trials. During this time, she learned that, as a judge, she must be ever watchful over proceedings in her court, and multitasking is key. While this process is not easy for those who, like the Judge, tend toward perfectionism, she does her best each day and realizes that the court system is a place where the outcome cannot always be controlled. Comparing her time on the bench with her time as prosecutor, the Judge states that being a prosecutor was easier in a number of ways. As a prosecutor, her role was clearly defined, and she was not required to balance the interests of both sides. Also, as a judge, she also finds it more difficult to impose sentence on defendants found guilty of serious felonies than to simply prosecute them. Finally, it is hard to shield oneself from the pain and suffering of a defendant’s family after imposing a lengthy prison sentence. On the other hand, there are aspects of being a judge that are very rewarding. Judge Vasquez-Gardner has been approached on the street by former defendants who, to her surprise, thanked her for forcing them into treatment or prison where they got their lives back on track. She has also received letters from those defendants and, in one case, a rather September-October 2010 - continued on page 22 - Book Review Free The Market! Why Only Government Can Keep the Marketplace Competitive I agreed to accept this assignment from the editorial staff of San Antonio Lawyer because the subject seemed interesting and timely during this period of the longest and deepest recession and economic catastrophe since the Great Depression. Like many, I continually wonder, “What happened!?” I hear things from the experts like “the enforcement mechanism in the economy failed to work.” No kidding! The book Free The Market! Why Only Government Can Keep the Marketplace Competitive, by Gary L. Reback, gave me some idea of what the experts were talking about Mr. Reback is a prominent antitrust attorney in the United States, best known for his efforts in initiating the federal lawsuit against Microsoft. He is named in the “100 Most Influential Lawyers in America” list by the National Law Journal, the “Elite 100” by Upside Magazine, the “Top 100” by MicroTimes, and “Lawyers of the Year” by California Lawyer magazine. He has been profiled in The New Yorker, The New York Times, The Wall Street Journal, and Wired magazine, to name a few. He is often quoted by major media. Mr. Reback resides in Silicon Valley. He has represented parties in many other major legal battles concerning Apple Computers, IBM, Oracle, and AT&T.The book’s title implies a more liberal or moderate approach to antitrust policy, and the book bears that out. However, Reback opens the book with the following quotation from conservative columnist George Will on the collapse of Enron: By Gary L. Reback Publication by Portfolio/ Penguin Group USA April 2009, 416 pages, no photographs, $45.00 Reviewed by Johnny Thomas “ ” It will remind everyone — some conservatives painfully — that a mature capitalist economy is a government project. A properly functioning free market system does not spring spontaneously from society’s soil as dandelions spring from suburban lawns. This sort of back and forth within groups, liberal and conservative, is persistent throughout the book.The author provides a concise historical review of antitrust law, from its inception in the early 1900s, which I found enjoyable and informative, and lays the foundation for the legal battles to follow over the next fifty years. He then provides a diary of his major courtroom battles regarding San Antonio Lawyer 16 September-October 2010 Microsoft, Apple, IBM, Oracle, AT&T, and others. He argues for measured government interventions in the free market to ensure competition, and that competition is better served through serious antitrust law, as opposed to government regulations. He also believes conservative changes made over thirty years ago have gone too far in overhauling United States competition policy, with loosened business rules applicable to everything from selling products to the purchase of computers. According to Reback, such policies are more suited to the manufacturing economy of the 1960s and 1920s. Such policies, he argues, are not only inapplicable in today’s high-tech world, but also ineffective and harmful. To the author, such policies have slowed innovation, hurt consumers, and entrenched big business at the expense of the entrepreneurs. The author has spent his career fighting to protect many hurt by the actions of corporate giants, and with that background, he is to a great extent speaking for them. In his introduction he reminds us that after the credit markets and stock market turmoil in 2008, the administration planned to ask Congress for nearly $1-trillion to stabilize the markets, citing the misuse of complicated financial instruments — “toxic assets” — as the root cause of the problem. To Mr. Reback, though, the root problem that caused the U.S. economy to fail was a “toxic philosophy,” over the last thirty years, based on the belief the markets could self-regulate with minimal government supervision. He is not surprised that this philosophy did not work, and he contends that it started to unravel before the financial markets began to fall. The author raises some concerns that — although antitrust policies are seriously enforced in other countries, including the European Union, Japan, and Korea — the United States has been going in the reverse direction, to the detriment of consumers. I was surprised to learn that U.S. consumers spend more for less high-speed Internet due to lost competition. He notes the average high-speed Internet service in Japan is ten times faster than the average high-speed Internet per household in the U.S. and costs one-half the price paid in the U.S. Since the 2001 mergers in the Internet industry, the U.S. has gone from fourth to fifteenth in household adaption to high-speed Internet service. According to Mr. Reback and some political and consumer groups, the U.S. is apparently falling farther and farther behind, with the resulting loss of millions of jobs — all due to the lack of competition in the U.S. over the last several years. Mr. Reback states that he began to write this book more than two years ago, before it became fashionable (again) to ask the government to do more to protect the public. The book has an abundance of historical and empirical data and firsthand information concerning the courtroom battles, with cites to courtroom records as backup. He does a good job of explaining these data for the non-specialist and general public, and he tries to answer some of the major questions facing us today: • Can corporations compete too hard for the public good? • Does it help consumers for manufacturers to limit retail prices? • At what point do intellectual property rights hurt innovation? stories referencing some very complex litigation was a good read for any trial lawyer familiar with the usual trial tactics, discovery, and judicial personality issues. I was surprised by how much the antitrust policies have changed from the 1970s to the present. The continual onslaught of daily mergers and acquisitions in the business world is now a little more understandable. As a corporate executive explained in the book, “You have to merge and acquire your competition to remain competitive.” I wonder if the general public understands this new business environment. The book is informative and contributes to the debate, which the author feels is now controlled by a small group of economists, with the blessing of the government and the courts. Johnny W. Thomas is an attorney working in the general practice of law since 1985. He also serves on the Trustee Panel for the Bankruptcy Court, Western District of Texas, San Antonio Division. The book is well written and easy to read and follow. The author makes a valiant effort to outline complex antitrust legal arguments in plain English. Despite the effort, however, it was still a chore for this reader to follow the writing at times. The book evidences the writer’s level of frustration due to the United States Supreme Court’s continual retrenchment from antitrust precedent over the last thirty years despite the economic data showing that consumers are continually being hurt by the lack of competition. My overall impression of the book was very good. I especially enjoyed the historical review of antitrust policy, especially concerning President Theodore Roosevelt and the trust busters. The courtroom San Antonio Lawyer 17 September-October 2010 Have You Heard About Collaborative Law? By Kim M. Munsinger I magine a divorce where the lawyers are barred from the courtroom,1 conduct cooperative joint discovery, and must withdraw if a settlement agreement isn’t reached. Sounds unlikely, doesn’t it? Yet, more and more of these nonadversarial divorces are done every day in Texas and around the world. It’s part of a growing movement called collaborative law, and it’s changing the way family lawyers practice. The goal of collaborative law is to get divorcing couples to settlement as efficiently and with as little financial and emotional damage as possible, while still meeting their shared and individual needs. By discovering what the underlying interests of the parties are — not just their demands — the parties and their lawyers can jointly craft a settlement that optimizes the outcome. Collaborative law is so different from traditional, litigated divorces that the Texas legislature created special statutes to support and encourage it.2 The collaborative statutes in the Texas Family Code are essential to protect the lawyers and the process because the level of candor necessary for success would be impossible — even unethical — without them.3 Collaborative law cases enjoy the same confidentiality provisions as mediation, and a party is entitled to judgment on a properly drafted and executed collaborative agreement. Although collaborative law is a worldwide phenomenon, there are local variations. The Texas model for collaborative divorce uses a four-member team with a neutral financial professional and a neutral mental health professional assisting the lawyers and the parties. The parties and their collaborative team meet in a series of informal sessions to clarify the parties’ goals, collect information, and develop a settlement. The financial and mental health professionals serve as neutral experts. They may express opinions, but they can’t choose sides. Collaborative law’s three defining principles Collaborative law has three defining principles that distinguish it from typical divorce litigation. The most important principle, and the most unusual, is that the parties and their attorneys agree in advance in writing that they won’t take any issue to court. This fundamental principle is spelled out in the collaborative agreement the parties and their lawyers sign at the beginning of the case. This principle is essential because it prevents the lawyers from using trial tactics, such as threatening “See you in court!” to force an agreement. Instead, there’s a formal commitment to negotiate in good faith, which helps keep everyone on track, including divorce litigators with good intentions, but well-trained combat reflexes. Collaborative law’s second defining principle is that the process is transparent. Professional privileges still exist, but everyone agrees to informally exchange all relevant information and answer even the most difficult questions including, for example, “Did you have an affair?” Everything the financial and mental health professionals do is transparent, too, because they’re neutral. Collaborative law’s third defining principle is that agreements are reached through “interest-based” negotiations where everyone is involved in finding creative solutions. This is the style of negotiation popularized by the book Getting to Yes by Roger Fisher and William Ury.4 Interestbased negotiation is the polar opposite of positional bargaining, which is common in litigated divorces. For example, in positional bargaining, one party might say, “I want the house.” By contrast, an interestbased approach would look at the reason behind wanting the house — say, a need for financial security or a good neighborhood or school for the children. There may be alternate ways to address the party’s San Antonio Lawyer 18 interest that don’t involve awarding the house and could even benefit both parties. But isn’t interest-based negotiation a weak, wimpy way to negotiate? The simple answer is no. Research shows that interest-based negotiations yield more than traditional adversarial approaches for both sides, as negotiation expert Guhan Subramanian, Professor of Law and Business at Harvard, explained in his talk, “How to Get the Most Marbles for Your Client,” at the 2009 Advanced Family Law Course.5 Also, interest-based negotiation can result in surprising acts of generosity from one party to another, as I’ve seen in my own collaborative law practice. What collaborative law is not Collaborative law is a novel way to resolve divorces, and a potent member of the alternative dispute resolution toolkit, but there are several things it is not. First, collaborative law isn’t bargain basement divorce. A collaborative divorce can save money by avoiding costly courtroom battles, aggressive discovery, and duplication of experts, but it’s not cheap. However, it is a good value when you consider the custom-fitted outcomes and goodwill among the parties that the collaborative divorce process can yield. Second, collaborative law isn’t mediation, which is a different flavor of alternative dispute resolution. In most mediations, a trained mediator meets with the two attorneys and the parties to help them resolve their differences and reach an agreement. Mediation seldom takes more than a day and often occurs at the end of the litigation process as an alternative to going to trial. In addition, mediation alone rarely produces an optimum settlement, while collaborative law often does. However, mediation can be a useful tool to resolve a collaborative case when negotiations have stalled. San Antonio family lawyer Ben Chappell successfully September-October 2010 mediated a collaborative case where the lawyers and parties had collected the information on the family assets and liabilities, but emotions were just too volatile to reach an agreement without help. And third, collaborative law isn’t unstructured. “In collaborative sessions, we don’t just sit around singing Kumbaya,” Houston collaborative lawyer Norma Trusch explains. “There is a clearly defined structure with agendas and a roadmap to resolution.” In addition, a collaborative divorce settlement doesn’t simply fall into everyone’s laps without effort. After a challenging collaborative session, San Antonio collaborative lawyer Jamie Patterson summed it up: “‘Collaborative law’ doesn’t mean ‘easy.’” hearings. The collaborative agreement is confidential and need not be filed with the court. Also, the final decree in a collaborative divorce can be drafted with minimal statutory language, and a private, contractual divorce agreement, which will not be filed with the court, can lay out the property division and other settlement details. The collaborative divorce process can also prevent destruction of relationships. Nobody realistically expects divorced couples to be buddies, but litigated divorces can leave everyone upset and bitter for years. It’s easy to see why this matters in families with children, but even The traditional divorce vs. the collaborative divorce The collaborative law process was designed to avoid the negatives often associated with traditional litigated divorces. Among these negatives are expensive formal discovery, limited communications between the parties, battles of the experts, lack of privacy, destruction of relationships, inconvenience, and lack of flexibility. Collaborative law deals with discovery, party communications, and experts in the following ways. Rather than engage in costly formal discovery, documents are exchanged informally and are often collected and compiled by the neutral financial professional. Constructive communication between the parties is encouraged. Both parties need to agree to communicate with each other outside collaborative sessions, and they can ask for help from the mental health professional. This is in contrast with litigation, where communication between the parties is typically discouraged. In a collaborative case, the experts assist with the overall process or they can be hired for a specific task, such as valuing a family-owned business. There are never battles of the experts in collaborative cases. In contrast with a public, litigated divorce, the collaborative law process offers total privacy. Collaborative sessions are private, and there are no courtroom couples without kids benefit from leaving a divorce on speaking terms. Collaborative law’s closed-door conferences, lack of courtroom theatrics, and the assistance of the mental health professional all help prevent the destruction of relationships. Compared with litigated divorces, collaborative law is convenient for everyone. The parties schedule the collaborative sessions for their mutual convenience, which is a major benefit to clients who are busy professionals. The lawyers and neutral experts also appreciate not having to attend hearings at inconvenient times. Collaborative divorces are even feasible for out-of-state parties who must travel to collaborative sessions. One of the best features of the collab- San Antonio Lawyer 19 orative process is the flexibility allowed in the final agreement. In a collaborative case, the lawyers and parties have the freedom to reach a settlement agreement customized for their particular situation. This might be consistent with the code, or it might vary in some meaningful way according to the case’s unique facts. Should all divorces be collaborative? To be fair, collaborative law isn’t right for everyone. For example, in a divorce where power is wildly imbalanced between the parties, such as a case with domestic violence, a collaborative atmosphere is impossible. Also, in a case where there’s blatant, unapologetic dishonesty, informal discovery — even with sworn statements — would be unlikely to work. Collaborative law is appropriate for many people, but some may find a collaborative divorce unacceptable because they’re so traumatized from an emotionally abusive marriage. San Antonio family lawyer Jim Monnig recognizes the value of collaborative law and other alternative dispute resolution methods, but feels that some cases need to go to court. Monnig says, “Sometimes, people have really been mistreated in a situation and suffered a lot of damage to their feelings. They need a champion to go down to the courthouse and stand up for them. It means an awful lot to them.” Another drawback for the collaborative divorce is that if the collaborative process fails, the lawyers must withdraw and the parties need to hire litigation counsel. This can be inefficient, adds expense, and can be upsetting to the parties. Fortunately, this rarely happens. History and future of collaborative law So, where did this notion of nonadversarial divorces come from and where is it going? In a 1990 letter to Minnesota Supreme Court Justice A.M. Keith, law- - continued on page 21 - September-October 2010 Federal Court Update By the Honorable Nancy Stein Nowak and Nissa M. Dunn Judge Nowak’s summaries of significant decisions rendered by San Antonio federal judges from 1998 to the present are available for keyword searching at Court Web found at http://courtweb.pamd.uscourts. gov/courtweb/. Full text images of most of these orders can also be accessed through Court Web. judgment but financial statements showed bank accounts and assets located in New York. Fraudulent Transfer Northern Natural Gas Co. v. Sheerin, SA-09CV-709-XR (Rodriguez, June 21, 2010) Court granted plaintiff’s motion for partial summary judgment under the Texas Uniform Fraudulent Conveyance Act where no genuine issue of material fact existed that plaintiff’s claim arose before defendant/judgment debtor transferred the property in question, defendant made the transfer without receiving reasonably equivalent value, and defendant was insolvent at the time the transfer was made. Plaintiff also presented evidence that the transfer was made with fraudulent intent. If you are aware of a Western District of Texas order that you believe would be of interest to the local bar and should be summarized in this column, please contact Nissa Dunn by phone at 581-2073 or by email ADA; Civil Rights at [email protected] Pena v. Bexar County, Texas, SA-08-CVwith the style and cause number 1016-XR (Rodriguez, June 21, 2010) Court granted defendants’ of the case, and the entry date and motion for summary judgment docket number of the order. on plaintiff’s claims under § 1983, Employment Discrimination; First Amendment Retaliation Elizondo v. Fletcher Parks, SA-04-CA1025-FB (Biery, July 12, 2010) Plaintiff, a public employee, sued his employer, alleging that he was retaliated against for exercising his First Amendment rights. Defendant was entitled to summary judgment based on qualified immunity on plaintiff’s First Amendment retaliation claim because plaintiff’s communications were made pursuant to his official duties, and were made internally and at meetings set up by plaintiff’s supervisors to discuss his continued employment and a temporary transfer. Registration of Judgment Lear Siegler Serv’s v. Ensil Int’l Corp., SA05-CV-679-XR (Rodriguez, June 23, 2010) Court granted plaintiff’s motion for leave to register judgment in the Western District of New York where defendant had not posted a supersedeas bond and plaintiff stated that defendant had no assets in Texas to satisfy the concluding that: (1) plaintiff’s claims under § 1983 for violations of Title II of the ADA are precluded by the ADA’s comprehensive enforcement scheme; (2) plaintiff failed to raise a fact issue on his Fourth Amendment excessive force and false arrest claims against individual defendants; (3) plaintiff failed to show that an official policy or custom caused the alleged constitutional violation; and (4) plaintiff’s fourteenth amendment claims are properly considered only under the Fourth Amendment. Notice of Right to Sue; Objections to Report and Recommendation Franco v. Bank of America, SA-08-CA-0475FB (Biery, rejecting recommendation of Nowak, June 8, 2010) Magistrate Judge recommended that plaintiff’s claims were timebarred because he received his notice of right to sue letter 92 days before filing his lawsuit. Plaintiff’s objections to the report and recommendation were untimely, but district court nevertheless considered them and conducted a San Antonio Lawyer 20 de novo review. Court found that plaintiff’s objections, in which he contended that he did not receive the notice letter “until days later,” together with post mark indicating that notice had been mailed on the date plaintiff initially asserted he received notice, were sufficient to refute his earlier contrary testimony. Venue X Technologies, Inc. v. Marvin Test Systems, Inc., SA-10-CV-319-XR (Rodriguez, June 7, 2010) Court denied defendant’s motion to dismiss or to transfer venue where forum selection clause did not cover plaintiff’s claims and court concluded that transfer was neither convenient for the parties nor in the interest of justice. Limitations; Causation USPPS, Ltd. v. Avery Dennison Corp., et al., SA-07-CA-963-FB (Recommendation of Mathy, March 18, 2010, accepted by Biery, June 4, 2010) Plaintiff sued defendants for fraud and breach of fiduciary duty related to patent applications for personalized postage stamps. Court accepted Magistrate Judge recommendation that motion for summary judgment based on limitations be granted because plaintiff failed to raise genuine fact issue that the discovery rule or fraudulent concealment tolls extended limitations beyond the four-year limitations period. Court also accepted Magistrate Judge recommendation granting summary judgment because plaintiff presented no evidence that “but for” defendants’ failures to disclose and misrepresentations, plaintiff would have obtained different counsel to prosecute the patent applications and the PTO would have accepted some claims in the application. Summary Judgment; Negligence Hernandez v. Swift Transportation Co., Inc., SA-09-CV-855-XR (Rodriguez, June 2, 2010) Court granted plaintiff’s motion for partial summary judgment where evidence established that September-October 2010 defendant’s driver failed to keep a proper lookout and was the proximate cause of the accident and plaintiff’s injuries. Age and Disability Discrimination; Hostile Work Environment; Retaliation Garcia v. Potter, SA-09-CV-973 (Rodriguez, May 18, 2010) Plaintiff’s claims for discrimination based on age and disability were dismissed because plaintiff did not plead adverse employment action. Motion to dismiss plaintiff’s hostile work environment and retaliation claims was denied based on plaintiff’s allegations that he was subjected to multiple route observations after filing a discrimination claim, subjected to daily verbal criticism, told to lift more than his medical restrictions allowed, and found unexplained undelivered mail in his locker. Costs Galaviz v. Post-Newsweek Stations, San Antonio, Inc., SA-08-CV-305-XR (Rodriguez, May 11, 2010) Court granted defendants’ motion for summary judgment and taxed costs against plaintiff. Plaintiff moved to set aside or to stay the court’s order regarding costs pending appeal. Court denied the motion, concluding that it had jurisdiction to review clerk’s taxation of costs while appeal is pending, and if judgment is reversed on appeal, any costs awarded to the previously prevailing party are automatically vacated. Nancy Stein Nowak is a United States Magistrate Judge for the Western District of Texas. Since 1986, Judge Nowak has summarized significant decisions of the local judiciary for the Subpoena and the San Antonio Lawyer. Collaborative Law - continued from page 19 yer Stu Webb said there’s “got to be a better way” to resolve family law matters than the litigation model.6 In his letter to Keith, Webb outlined the basic collaborative model used today. Webb wanted to see lawyers use their “analytical, reasoned ability to solve problems and generate creative solutions and create a positive context for settlement.”7 Webb noted that “these attributes of good lawyering are not utilized greatly in the usual family law proceeding . . . .”8 Most family lawyers would agree. In 2001, the Texas Legislature enacted statutes specifically authorizing collaborative law in divorces and other family law matters. Texas was the first state to pass such statutes. This year, the State Bar of Texas added a new collaborative law section. There’s also a statewide organization, the Collaborative Law Institute of Texas, for collaborative lawyers and allied professionals. Collaborative law has spread to all fifty states and to Canada, England, Ireland, and Australia. Lawyers in the United States are working on a Uniform Collaborative Law Act, which would create a statutory framework that covers more than family law cases. There’s also a growing international collaborative law group, the International Acad- emy of Collaborative Professionals. Resources and training If you’re intrigued by this new concept and would like to know more about collaborative law, or if you know someone who’s seeking an alternative to a litigated divorce, there are several websites with up-to-date information on collaborative law. Our local organization, the Collaborative Professionals Association of San Antonio, has a website with information and a list of members at www.collaborativeprofessionalsofsanantonio.com. We meet for lunch on the second Friday of every month, and you’re welcome to join us. There’s a wealth of information on the Collaborative Law Institute of Texas website at www.collablawtexas.com, including information on collaborative law training for lawyers and the neutral financial and mental health professionals who assist with collaborative cases. Kim M. Munsinger is a partner at Munsinger & Munsinger where she practices family law with an emphasis on collaborative law and mediation. www. munsingerlaw.com In a collaborative divorce, the only time a lawyer and client appear in the courtroom is to have the judge approve the agreement, make the legal pronouncements, and sign the final decree and any associated orders. 1 The collaborative statutes cover more than divorce; there’s a second statute for custody and visitation suits. Tex. Fam. Code § 6.603, Collaborative Law for dissolution of marriage (divorce); Tex. Fam. Code § 153.0072 Collaborative Law for suits affecting the parent-child relationship (custody and visitation). 2 The American Bar Association has deemed collaborative law an ethical practice of law. ABA Comm. on Ethics and Professional Responsibility, Formal Op. 447 (2007). 3 Fisher, Roger, and William Ury, Getting to Yes: Negotiating Agreement Without Giving In. New York: Penguin Books, 1983. 4 Subramanian, Guhan, “How to Get the Most Marbles for Your Client.” PowerPoint presentation at Advanced Family Law Course, 3 August 2009. Dallas, Texas. 5 Nissa Dunn, of the Law Offices of Nissa M. Dunn, P.C., specializes and is board certified in the area of civil appellate law. Stuart G. Webb, Minneapolis, Minn., to [the Honorable A.M. Keith, St. Paul, Minn.] 14 February 1990. 6 7 Id. 8 Id. San Antonio Lawyer 21 September-October 2010 Published by NationWide Publishing SA 1922 Great Ridge • San Antonio, TX 78248 - continued from page 15 - Publisher - Ron L. Hogue [email protected] For information on advertising in the San Antonio Lawyer magazine Call 210.381.7664 The San Antonio Lawyer is published bimonthly by Nationwide Publishing SA, on behalf of the San Antonio Bar Association. Reproduction in any manner of any material, in whole or in part, is prohibited without the express written consent of the Editor in Chief. Material contained herein does not necessarily reflect the opinion of the Publisher or its staff. San Antonio Lawyer, the San Antonio Bar Assocation and the Publisher reserve the right to edit all materials and assume no responsibility for accuracy, errors or omissions. San Antonio Lawyer and the Publisher do not knowingly accept false or misleading advertisements, false or misleading editorials and do not assume any responsibility should such editorials or advertising appear. Advertisers’ Index AMS/LFAM Assn. of Atty. Mediators KelMar Lindemann Productions Jack Martin & Assoc. Jeff Small Tower Life Building Judge Juanita Vasquez-Gardner 24 23 13 4 7 9 2 interesting set of drawings. Sometimes she receives feedback from family members of the defendants who have thanked her for taking chances on certain defendants and granting them leniency in order to prove that they can be good citizens. Sometimes they prove her right and never return to her court again; but, other times, they let her down and later appear with new charges against them. The Judge willingly acknowledges that no human being can ever be expected to make perfect decisions in every case. She credits her faith with helping her make the tough decisions and giving her the peace of mind that the right outcome will eventually be reached in the end. Throughout her life and time on the bench, she cites God as her primary guiding force. When asked what is the most important quality of a judge, she responds simply: “Listen carefully. Treat everybody with respect, and be patient.” She expects the same courtesy from those who appear before her. Showing up late without a legitimate excuse or not letting the Court know in advance is an obvious sign of disrespect. She stresses the importance of treating her staff courteously, too, and vice-versa. When asked about her most memorable cases, one immediately springs to mind. During trial, one witness took the stand and described how he held his father in his arms while he died. Hearing this testimony triggered memories of the Judge’s own father’s death and how difficult it was for her to not have been at his side when he passed away. Despite the gravity of the cases that come before her, Judge San Antonio Lawyer Vasquez-Gardner believes that it is important, when possible, to maintain an upbeat atmosphere in the courtroom. A sense of humor can sometimes be a big help in getting through those long, grueling trial weeks. Overall, the Judge is very impressed with the Bexar County legal community. From the prosecutor’s office to the criminal defense bar to the staff working behind the scenes, she has very positive interactions. One of the only negative aspects of our system cited by the Judge is the role she has to play in reviewing the vouchers submitted to her by the courtappointed attorneys. While she understands that tax dollars are limited, she finds it disturbing that the judges are called upon to reduce funds for indigent defense. Another change in the system the Judge favors is the idea of non-partisan judicial elections. On a personal level, the Judge is married to Mike Gardner, with whom she will soon celebrate their 20th wedding anniversary. They have one son, Christopher, and one dog, Max. When she is not on the bench, the Judge’s number one priority is simply spending time with her family. She also likes to fit in some regular workouts when her schedule permits. As far as her plans for the future, the Judge has this to say, “I’ll stay as long as the voters let me.” “Listen carefully. Treat everybody with respect, and be patient.” 22 September-October 2010 Stephen H. Gordon is a sole practitioner in San Antonio. His main areas of practice are family law, criminal law, personal injury, and bankruptcy. ������������������������������������� ������������������� Committed to the mediation process, each of our member lawyers is devoted to the ethical practice of law. Recommended by judges and their fellow attorneys, AAM mediators have conducted over 25,000 mediations since 1989. A model of responsible dispute resolution, as a group we have over 850 years experience in the practice of law. With this much talent and experience, why consider any other mediation source? ������� Dick Alcala Emerson Banack, Jr. Judith Reed Blakeway Leslie Selig Byrd Hope Camp Ben R. Chappell Robert C. Cowan Michael Curry, Jr. John H. Davis Gerald T. Drought Allan K. DuBois Stephen R. Fogle John J. Franco, Jr. Otto S. Good Sue M. Hall B. Thomas Hallstead Reese L. Harrison A. Chris Heinrichs James N. Higdon Ronald Hornberger Nan P. Hundere Richard H. Ihfe Gary W. Javore Tom Joseph Douglas D. Ketterman Jerry D. King Joel H. Klein Daniel Y. Kruger Daniel O. Kustoff William H. Lemons Dan A. Naranjo B.F. “Biff” Pennypacker, III Gale R. Peterson Hon. Robert T. Pfeuffer Donald R. Philbin, Jr. Vick Putman Charles R. Roberts Wade B. Shelton Bernard L. Shub Charles L. Smith Thomas J. Smith Frank R. Southers John J. Specia David S. Stephenson William R. 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