Showing posts with label lawyer. Show all posts
Showing posts with label lawyer. Show all posts

Friday, September 27, 2013

Octogenarian Denied Driving Privilege Goes Federal

Carl Hainer sans license.
By: Timothy P. Flynn

At age 85, Carl Hainer has not had a traffic citation in 70-years, i.e. his entire driving life.  That did not stop the Secretary of State from denying his recent renewal application on the mysterious grounds that Mr. Hainer was an unfit driver due to unspecified health reasons.

Well, apparently they messed with the wrong retired engineer.   The octogenarian from Grand Rapids is representing himself in a federal law suit he filed against the Secretary of State, presumably raising constitutional claims.

The Secretary of State has the authority to restrict or deny a driver's license based on the applicant's ability to safely operate their vehicle.  The SOS gets referrals for a driver's examination from many sources: police, family, guardians, medical care providers, concerned neighbors and even, as apparently in Hainer's case, SOS workers.

Michigan's motor vehicle code provides for a driver's re-examination whenever information comes to the SOS about that driver's ability to safely operate their vehicle.  The process balance the important liberty interest associated with the freedom to drive, and the public safety interest that all licensed drivers are capable of handling the multitude of conditions and situations that arise on a moment-by-moment basis on the road.

In Hainer's case, he claims he has been singled-out and discriminated against due to his age.  He asserts that it was all-bad from the moment he stepped into the SOS office to renew his license, and that he was treated rudely at the counter.  As for his overall health, he is puzzled as to why his license was pulled because the man is apparently in good health.

Unfortunately for Hainer, his law suit is misplaced to the extent that the State of Michigan has immunity in such matters.  It would have been better had Hainer hired a lawyer to appeal this administrative decision.

If you or a family member have experienced an adverse administrative decision affecting your driver's license, give our law firm a call for a free consultation.  We may be able to assist.

www.clarkstonlegal.com
info@clarkstonlegal.com



Thursday, June 20, 2013

Detroit: Too Big to Fail?

Here in the 313, we're used to having it rough.  This is a place where nothing comes easy.  Detroit has been existing within the shadow of a lost world-class status since the riots in 1967.

Now that Washington D.C. lawyer and Snyder-appointed emergency manager Kevin Orr has settled-in and taken a look around here in the "D", it's starting to look like this appointment may have come too late.

There is a mountain of things to correct; the deep oaken roots of 100-years of corruption need to be pulled out of the Detroit soil; it is proving very difficult.  The prospect of the largest municipal bankruptcy in United States history is now looming large; the consequences of the decades of mismanagement are coming home to roost.

Mr. Orr is zeroing-in on municipal pensioners, municipal employees, and an overall 20-billion dollar debt restructuring package.  If the restructuring fails, this mess will be placed in the hands of a federal bankruptcy judge; the state problem goes federal.

Now that the battle lines have been drawn, the unions, of course, are squawking.  They claim a multi-million dollar war chest to fight all of Mr. Orr's decisions.  Not surprisingly, none of Detroit's municipal workers want their pensions or their health care benefits cut.  Orr says these perks need to be compressed to stop the swelling of an out-of-control deficit of a non-productive municipality.

As a small business with some 20 employees here in the suburbs, we here at the Law Blogger must admit that, while we are life-long Detroiters, it is irritating to hear the sabre-rattling unions and pension managers make these legal threats when we have seen years of lavish and outlandish junkets along with a strong whiff of corrosive privilege.  Nobody involved in a City of Detroit pension needs to take a trip to Hawaii on the City's dime; under these financial straights, that is just plain wrong.

In sum, Detroit is just a promise gone bust; gone way past the point of no return.  Now an outsider, a Washington D.C. lawyer, must try to get us our city back.

What can we do, what can you do, to help...?

Post Script:  On July 19, 2013, Detroit's Emergency Manager filed a petition under Chapter 9 of the US Bankruptcy Code.  Despite the Michigan Attorney General's challenge to the petition, the Court of Appeals said the petition could proceed, and the Bankruptcy Judge in Detroit has asserted jurisdiction over the case and has stopped all challenges in state court forums.

www.clarkstonlegal.com
info@clarkstonlegal.com



Wednesday, April 24, 2013

300th Blog Post - Thank You Readers

We here at the Law Blogger [the attorneys of Clarkston Legal, also known as Karlstrom Cooney] would like to thank our loyal readers and those that follow this blog.

This is our 300th post.  Three hundred: a perfect game in bowling; an excellent batting average in the bigs; the length of Noah's Arc, in cubits, and one of this blogger's favorite movies.

We started this blog with our first post back on March 30, 2009, on the topic of a lesbian couple litigating their right to adopt a child here in Michigan.

In the four years that we've been up and running with the Oakland Press, there have been almost 160,000 page views and we've received 438 published comments.  Minor league stats in the overall blogosphere, but hopefully relevant to our local readers.

In these years we have attempted to post interesting law-related information that our readers find useful and informative.  Some of the more important topics we've covered in our posts include:
  • cell phone use and texting while driving, especially where teenagers are concerned;
  • the "Superdrunk" driving law;
  • same-sex marriage cases from their initial filings through the recent oral arguments at SCOTUS;
  • privacy laws in the Big Data era;
  • Second Amendment cases at SCOTUS;
  • Obamacare at SCOTUS and now that the new laws are scheduled to take effect in the workplace;
  • divorce and family law developments, especially child custody matters;
  • the juvenile lifer laws recently decided by SCOTUS;
  • significant developments in the criminal law; and
  • occasionally, high-profile cases and local personalities that have intersected with the legal system or criminal justice system.
Before we begin work on our next 300 posts, we would like to also thank the Oakland Press and its editorial staff for their support and encouragement over the years.

www.clarkstonlegal.com
info@clarkstonlegal.com

Tuesday, January 1, 2013

Automated Vehicles and the Motor Vehicle Code

According to Bryant Walker Smith, a fellow at Stanford's Center for the Internet and Society, automated vehicles have been "just 20-years away" since the 1930s.  Lately, however, data giant, Google, and some of the OEMs have started taking the concept seriously.

So serious, in fact, that automated vehicles are now out there folks. 

This has led Mr. Smith to publish a comprehensive study on the legalities of automated vehicles.  Smith concludes that, although automated vehicles are "probably" legal from the national regulatory prespective of the National Highway Traffic Safety Administration, state laws will "complicate" the transition to automated vehicles.

Why automated vehicles anyway?  Many motorists enjoy, at least to some extent, the driving process.  Smith's answers are: safety and saved lives.  If done correctly, there are also long-term cost savings embedded into the notion of automated vehicles; savings of fuel and time.

Smith's comprehensive study takes a detailed look at the three states [California, of course, Florida, and Nevada] that already have included "automated vehicle" provisions in their motor vehicle codes.  The study even includes a comprehensive model bill for progressive state legislators to consider.  Apparently, New Jersey, Arizona, Hawaii (?), Oklahoma, and the District of Colombia all have bills under active consideration.

One legal issue that comes to our simple mind over here at the Law Blogger is the actus reus [i.e. intentional bad act] requirement that a criminal law must contain to pass constitutional muster.  While we do understand the philosophy behind the "implied consent" concept underpinning many provisions of a motor vehicle code, we are compelled to ask, can a human be cited for acts undertaken by a machine?

This could be a small town lawyer's dream.  Imagine the cornucopia of defenses available for any potential automated motor vehicle code.  And if the legislatures go the "strict liability" route, the deep thinking consitutional lawyers will be well-fed.

Also, we cannot forget the product liability inquiry of who is responsible when [not if] something goes wrong, and someone is injured or killed.  Automated vehicles, if they proliferate, will produce a brand new branch of products liability tort law.

It will be interesting to see how far these fancy cars get along the respective legislative highways of the fifty states.  One thing is for sure: the process has begun.

www.waterfordlegal.com
info@waterfordlegal.com





Friday, October 12, 2012

Medical Marijuana Can Get You Fired

Readers of this blog know that we have tracked the medical marijuana issue through the court system over the past 3-years.  Now there is an interesting twist in the on-going debate: can an employer condition your job on being pot-free, even if you have a medical marijuana card?

The answer is "yes", courtesy of the United States Sixth Circuit Court of Appeals in the seminal case of Casias v Wal-Mart Stores, Inc.

In theory, the 2008 enactment of the Michigan Medical Marijuana Act (MMMA) provides a statutory right for patients and their caregivers to cultivate and use medical marijuana.  Unfortunately, the Act is wrought with ambiguous language, resulting in befuddlement on the bench and a potentially misinformed public, many of whom believe, sincerely, that the MMMA provides more protections than it actually does.  

Joseph Casias of Battle Creek, Michigan, lost his job over his medical use of pot.  Casias worked at the local Wal-Mart, earning “Employee-of-the-Year” honors the same year the pot act received electorate endorsement.   

When hired in 2004, Casias passed a mandatory drug test as a prerequisite for employment.   In 2009, however, after injuring himself on-the-job, Mr. Casias took another drug test required by Wal-Mart corporate policy.  This time he failed the test and was fired from his job.
 
Casias, having been diagnosed with sinus cancer and an inoperable brain tumor since the age of 17, routinely used pain medications for a number of years, as prescribed by his treating oncologist.  When the MMMA was enacted, Casias obtained a valid registry card allowing him to use medical marijuana for treatment of his chronic pain. 

After his failed drug test in December 2009, Joseph showed his registry card to Wal-Mart management, explaining to his supervisor that he never used marijuana before or during work.  Wal-Mart nevertheless fired their “Employee-of-the-Year” for failing the drug test per corporate policy.   

For his part, Casias went straight to a lawyer and sued his former employer in federal court.  The case was dismissed for, “failure to state a claim”; Casias appealed the dismissal to the Sixth Circuit Court of Appeals.

The Sixth Circuit affirmed the dismissal in its September 19, 2012, decision holding that Casias was both out of luck, and out of job.

Many employees recognize that “at will” employment means that a person can be fired for good cause, bad cause, or no cause at all.  Mr. Cassias, however, assumed that the medical pot law afforded him some manner of employment protection, or exception to the company policy, for his pot use.  He badly miscalculated.

The MMMA prohibits “disciplinary action by a business or occupational or professional licensing board or bureau” against a valid, registered cardholder.  The is silent, however, as to whether such protection applies to employment.

Casias, in filing his complaint against Wal-Mart for wrongful discharge in violation of public policy and the MMMA, argued that the term “business” should be interpreted as applying to private businesses, and should include employment. 

The Sixth Circuit disagreed, holding that the word “business” is a descriptive term as applied to the type of “licensing board or bureau.”  The short answer is that the Sixth Circuit does not believe that the Act provides any employment protections for registered patients; at least not as the Act is currently written. 

Of primary concern of the appeals court was that if they agreed with Casias’ interpretation of the Act, then private business would be unable to discipline employees who held valid registry cards; employee could use pot to insulate them from a variety of performance-related deficits.
 
We do see loads of litigation arising from such an interpretation.  Not to be, however, as the Sixth Circuit’s narrow application of the Act to private business preserves the decision-making actions of private employers, and leaves patients and caregivers to continue twisting in the ambiguous winds of the MMMA.

 The Sixth Circuit did insert a sliver of hope to those who would disagree with this decision, saying that their Casias decision is solely based upon how the MMMA is currently written.  The Act just does not ly address the issue presented in this case.

Perhaps this decision works well to illuminate yet another area where the MMMA requires clarification.  Perhaps the legislature should consider amending the Act to expressly include employment sanctions within its protective scope, as apparently intended by the electorate when approving the pot resolution 4-years ago.  

As with many of the cases that have arisen since the enactment of the medical pot law, the hard truth is that the scope of the protections under the Act are limited; those who find themselves embroiled in these initial “test” cases risk losing their property, employment, and liberty. 

Remember, the MMMA, as it currently stands, provides limited protections against state action, i.e. criminal prosecution.  While it may keep you out of jail, it simply cannot protect your job. 

Therefore, we here at the Law Blogger advise employees to proceed with caution. 


Wednesday, September 26, 2012

Michigan Supreme Court Selects [Another] Medical Marijuana Case

The criminal defense bar saw all this litigation coming from a distance.  At this blog, we knew that the Michigan Medical Marijuana Act would be challenged, diced, and spliced for years after its passage in 2008. 

Well, no disappointment on that front, as the Michigan Supreme Court has selected yet another medical marijuana case for briefing and argument during their term which will commence next week.  This case will follow the Supreme Court's seminal Kolanek decision and nearly a dozen opinions from the intermediate appellate court issued over the past four years.

This time, the action arises from Kent County and the issue involves the collective farming and distribution scheme of a certified "care provider".  The case, People v Bylsma, was decided by the Michigan Court of Appeals in a published decision one year ago.

The care provider was the subject of a raid conducted by the Grand Rapids PD which yeilded more than 88 plants from a grow operation housed in a commercial rental facility.  Problem: this care provider only had two certified "patients"; a person is allowed up to five under the Act.  You may possess up to 12 plants for each patient.

In the trial court, Mr. Bylsma asserted the immunity afforded by the medical marijuana act, and moved to dismiss the case.  He also argued that the Act does not prevent multiple care providers from collaborating their grow operations.  The lower court denied the motion to dismiss, and Bylsma's appeal to the Michigan Court of Appeals resulted in that decision being affirmed.

Now, the Michigan Supreme Court will take a look.  Its decision will further develop our growing medical marijuana jurisprudence.

This case presents an opportunity to further address one of the primary tensions that have developed between care providers attempting to distribute medical marijuana, and perhaps turn a profit in doing so, and the law enforcement agencies that have been uncertain about what is legal and what remains illegal.

The Kolanek decision smoothed out the mechanics of the immunity and affirmative defense provisions of the Act.  Prosecutors took a very restrictive view of the latter, while the criminal defense bar argued for a broader application of the defense.

We here at the Law Blogger recently had the opportunity to brief this issue in a case pending before the Court of Appeals.  Both Kolanek and now Bylsma will affect the outcome in our case.

As for Bylsma, let's just sit back and see whether the Supreme Court will interpret the Act in a manner which will allow these pot farmers to make some money.

www.clarkstonlegal.com
info@clarkstonlegal.com








Thursday, September 13, 2012

Is it Ethical for a Lawyer to Have Sex With a Client?

Attorney Henry Baskin
Technically, the Michigan Rules of Professional Conduct do not expressly proscribe a lawyer from having sexual relations with a client.  The lack of a specific ethics provision, however, did not prevent the Michigan Attorney Grievance Commission from issuing a reprimand and assessing costs against well-known Birmingham attorney, Henry Baskin, for allegedly conducting a long-term physical relationship with a female divorce client.

We here at the Law Blogger know Henry, having worked with him on a few matters over the years.  So we are compelled to ask, Henry...Henry...of all the women you could persuade to, er, date you, why select a client; and a divorce client to boot?

The Attorney Discipline Board [a panel of lawyers assigned to decide Henry's case] had this to say in disposing of this matter:
Although there is no evidence of actual injury to the client, the potential injury under these circumstances is clear to any lawyer, and certainly to someone with [Baskin's] experience.
Never one to shirk the white-hot spotlight, Henry has publicly commented that he disagreed with the decision, and thought the matter should have been resolved privately long-ago; the relationship apparently was conducted from 1999 through 2004.  Henry also noted with some apparent pride, that his client was well-served in the divorce to the extent she received a record-breaking alimony award.

Perhaps this ruling will have some interesting future implications.  For example, what if the lawyer has a long-standing committed and pre-existing relationship with the client, say in a probate or commercial matter?  Obviously divorce clients are always going to be "taboo".  Or what if a lawyer represents his spouse?

The Attorney Grievance Commission always takes the unique facts and circumstances of a particular case into account.  We have to agree with this one.  Of all the people a divorce lawyer may elect to date, it just should not be from among the corps of that lawyers clientele.

So folks, beware of the horny divorce attorney!  Caveat emptor on that one for sure...

www.clarkstonlegal.com
info@clarkstonlegal.com

Friday, September 7, 2012

Unemployed Lawyer Questions President Obama on Reddit

If you have a child under 25 that is technologically oriented, wired, so to speak, I bet they have a Reddit account.  You know, Reddit; the social media Q&A site that we here at the Law Blogger find to be somewhat exasperating and, well, just hyper.

If you're wrong, or wrong-headed, on Reddit, you'll be slashed to the quick and run off the site.  My high school underclassman son swears by Reddit.  He trusts the site, and uses it to answer questions on a wide range of pre-selected "interests".  I must admit, although a late adopter myself [I rarely make it into my Reddit profile...], it caught my eye when an unemployed law school graduate asked President Obama a question when the President participated in an AMA ["Ask Me Anything"] session.

Here is the question:
I am recent law school graduate. Despite graduating from a top school, I find myself unemployed with a large student loan debt burden. While I'm sure my immediate prospects will improve in time, it's difficult to be optimistic about the future knowing that my ability to live a productive life -- to have a fulfilling career, to buy a house, to someday raise a family -- is hampered by my debt and the bleak economic outlook for young people. I know that I'm not alone in feeling this way. Many of us are demoralized. Your 2008 campaign was successful in large part due to the efforts of younger demographics. We worked for you, we campaigned for you, and we turned out in record numbers to vote for you. What can I say to encourage those in similar situations as I am to show up again in November? What hope can you offer us for your second term?
 Here is President Obama's answer:

I am Barack Obama, President of the United States -- AMA by PresidentObamain IAmA
[–]PresidentObama[S] 2002 points  ago
I understand how tough it is out there for recent grads. You're right - your long term prospects are great, but that doesn't help in the short term. Obviously some of the steps we have taken already help young people at the start of their careers. Because of the health care bill, you can stay on your parent's plan until you're twenty six. Because of our student loan bill, we are lowering the debt burdens that young people have to carry. But the key for your future, and all our futures, is an economy that is growing and creating solid middle class jobs - and that's why the choice in this election is so important. The other party has two ideas for growth - more taxs cuts for the wealthy (paid for by raising tax burdens on the middle class and gutting investments like education) and getting rid of regulations we've put in place to control the excesses on wall street and help consumers. These ideas have been tried, they didnt work, and will make the economy worse. I want to keep promoting advanced manufacturing that will bring jobs back to America, promote all-American energy sources (including wind and solar), keep investing in education and make college more affordable, rebuild our infrastructure, invest in science, and reduce our deficit in a balanced way with prudent spending cuts and higher taxes on folks making more than $250,000/year. I don't promise that this will solve all our immediate economic challenges, but my plans will lay the foundation for long term growth for your generation, and for generations to follow. So don't be discouraged - we didn't get into this fix overnight, and we won't get out overnight, but we are making progress and with your help will make more.
The "we're all in this together" plank of the Democratic Party is evident in this exchange with the Commander in Chief.  But what's up with the wind and solar power references?  These industries are on par with our legions of unemployed attorneys.  Overcapitalized for their current output; little to none.

Well, we here at the Law Blogger do subscribe to the positive outlook.  And we do take note that a sitting U.S. President spent a moment on a very forward social media platform connecting, briefly, with a random stream of computer users.

www.waterfordlegal.com
info@waterfordlegal.com






Thursday, August 30, 2012

Ten Tips for Social Security Planning

We here at the Law Blogger are quietly aging along with the rest of our fellow Baby Boomer generation.  A good chunk of this generation is slipping into retirement mode; slowly, but as surely as ever.

Here are some things to keep in mind as you approach the age where certain decisions need to be made; and elections need to be taken relative to the mighty Social Security Administration.

Many folks are faced with a bewildering array of options regarding their social security benefit.  When should  you start taking the benefit?  At the earliest possible age of 62; or should you wait [can you afford to wait] until age 70?

These tips are merely general principles, not intended as specific legal advice.  Here are some things to consider:

1.  Spousal Benefits.  If you are married, and at full retirement age [66], you and your spouse, but not both, can elect to receive a spousal benefit while deferring on your retirement benefits, thereby enabling those retirement benefits to grow.  If you are the low-earning spouse, however, it could make more sense to take your benefit at the earlier age of 62, then switch to your [presumably higher] spousal benefit upon reaching full retirement age.

In general, there is no advantage to waiting to start collecting either spousal benefits or survivor benefits after you reach your full retirement age.

2.  "Start Stop Start" Strategy.  Complicated, but worth it, this strategy involves electing to take your social security benefit at an early age, say 62, then suspending the benefit at the full retirement age of 66, if you can afford to do so.  Then, at age 70, you start the benefits back up, taking advantage of a much higher [over 30% higher] monthly benefit checks for the balance of your life.

3.  One-Year Repay Option.  This one is interesting.  If you elect to begin taking your benefit, but later decide it was not the right move, you have one year to pay back all the benefits you received.  Then you can re-apply for [higher] benefits at a later point in time.  

4.  Working Into Your 60s.  If you are blessed with good health, and are fortunate enough to be in a profession or job you can handle deep into your 60s, the result will be a significantly higher social security benefit when you finally do hang up the cleats.  This benefit will also accrue to any spousal and child benefits; so your family will benefit as well.  If you opt to receive benefits at an early age [62], you could be locking in on a permanently lower benefit.

5.  Divorced?  Depending on the length of your marriage, you or your ex-spouse may be able to file for benefits based on each other's work histories.  This is beneficial for the divorcee that was married to a high earner.

6.  Federal Income Tax Exposure.  When it comes to calculating your income for tax purposes, disbursements from a Roth IRA are not counted [because you already paid the taxes], but withdraws from a regular IRA, 401(k) or 403(b) are included as income.  Therefore, it may make sense to stage your withdraws on these accounts, taking disbursements from the tax deferred accounts prior to your social security election.  Also, as a general principle, it would make sense to deplete your tax-deferred accounts first.

7.  Survivor Benefit Election.  Widowed?  Some folks will want to elect to receive their survivor benefits at age 60, and to take their retirement benefit after full retirement; others will benefit by electing to take their retirement benefit at age 62, and deferring the survivor benefit until full retirement age.  The difference depends on individual circumstances and the projected benefits.  A careful calculation is needed here and a professional should be consulted in most cases.  The differences in strategy could be significant.

8.  Beware of the SSA's Benefit Calculator.  The SSA's on-line benefit calculator does not adequately handle spousal, divorcee, child, mother, father, widow or widower benefits.  Because the benefits calculator does not factor-in wage growth or inflation, a projected benefit output for a younger worker performing a calculation will be distorted; the worker's actual benefit could be much less than anticipated.  The best practice is not to rely on these calculations as accurate benchmarks.

9.  Children's Survivor Benefits.  Provided they are under the age of 18 [age 19 if still in high school], your children can receive a survivor benefit from your deceased spouse, or ex-spouse.

10.  Enjoy Your Retirement!  This tip is the most important in this  post.  You have worked your entire life; now it's time to take your foot off the gas and cost a bit; take a look at the scenery.  By all means take care of your family, but remember that you cannot take it with you.  So be sure to spend at least a portion of your retirement on yourself.

www.clarkstonlegal.com
info@clarlstonlegal.com


Thursday, August 23, 2012

Cooley Law In-Line with National Trends in Legal Industry

By now, we've heard the familiar tales-of-woe within the legal industry: too many lawyers; no jobs for newly-minted lawyers; young graduates are slaves to their law school tuition debts; and, the legal service industry is contracting.

With such a gloomy backdrop, the nation's largest law school, Thomas M. Cooley Law School, provides an interesting petre dish to test these national trends.  Sure enough, Cooley seems to bear out what is happening in law schools and legal service markets across the country.

The first trend of note is the steady decline in law school enrollment.  According to statistics published by the Law School Admission Council [publishers of the LSAT entrance exam], law schools have experienced more than a 30% decline in enrollment since 2003.

In an article last week in the Lansing State Journal, Cooley Dean Don Leduc admitted that his school's admissions took a hit; dropping by nearly 27% and expected to drop by another 15% when classes resume next week.  Dean Leduc told the LSJ that many law school applicants across the country regard Cooley as their "backup" choice.  Since law schools across the country are plunging ever deeper into their applicant pools to fill their classes, many students no longer need to play their Cooley card.

It is no secret, as the LSJ points out, that Cooley Law is one of the least selective ABA accredited schools in the country, and that out-of-state students make-up a significant portion of its student body.  Presumably, from sea to shining sea, students that cannot get into other law schools around the country flock to Cooley for their "ticket".

The next trend in the industry is the curious response of law school administrators to their steadily declining enrollments: raising tuition.  The National Law Journal has analyzed tuition rates at private law schools like Cooley and reports a 4% average tuition hike for this fall.

This year, the average cost for a single year of tuition in a private law school will crack the $40,000 mark for the first time in history.  In line with this trend, Dean Leduc announced that Cooley was raising its tuition by a whopping 8%.  This fall, students will pay $37,140 to attend Cooley Law School on a full-time basis.

Next trend: is law school worth the expense and effort?  Many voices are saying no.

One way to determine the value of a law degree is to track employment statistics among recent law school graduates, as required by the ABA to maintain a law school's accreditation.  Nationally, the average salary for 2011 law graduates is $60,000; down from $72,000 in 2009.

In related litigation, Cooley was recently sued on a fraud theory in federal court by a group of its alumni.  The law suit was tossed for lack of merit; it was really the ABA's vague reporting regime that was indicted in the case.  The issue involved how Cooley reported employment statistics for its recent graduates.

Earlier this year, the ABA announced that only 55% of recent law graduates held full-time employment that required bar passage to hold the position.  For Cooley, the numbers were well-below that mark.  The LSJ article reported that only 37.5% Cooley's 2011 graduates held full-time law positions.  Of those legally engaged grads, a significant percentage [20%] were solo practitioners straight of of law school; a dubious proposition if you are facing more than $100,000 in student loan debt and have zero experience representing clients.

To combat this negativity, Dean Leduc has recently released his own report, with commentary, citing statistics from the National Association of Legal Professionals and the Bureau of Labor Statistics, concluding the employment rate for law graduates is higher than the overall national average and the unemployment rate across this group is lower.

Regardless of the forecast, lawyers will always be with us.  We agree with Dean Leduc that future legal professionals should not be swayed by the current obvious gloom.

Instead, be persistent and follow your dream.  There is nothing more fulfilling than doing what you love to do for your profession.

www.clarkstonlegal.com
info@clarkstonlegal.com



Saturday, August 11, 2012

Consumer Reports Reviews Self-Help Legal Sites

In today's world, everybody wants to be the lawyer.

Consumer Reports, that trusty publication that does in-depth research on products that we consumers know little about, has targeted three of the most popular self-help legal websites in the attached report.  The web sites reviewed are Legal Zoom; Nolo; and Rocket Lawyer.

The most popular of the three sites is Legal Zoom, founded by Los Angeles lawyer Robert Shapiro, and hawked by the likes of Rush Limbaugh.

The CP review of the sites is luke warm, as you may expect.  The general conclusion is that, if you have a very simple matter, these sites are "better than nothing."  If you have any complexity to your legal matter, however, you will be better off hiring a lawyer.

As any lawyer knows, the devil is in the details in any legal situation.  One-form-fits-all simply does not work in the law. Sure, lawyers are trained to use checklists and forms, but every document drafted must be customized to some extent to ensure that the client's objective is completed within the four corners of a document.

These days, with on-line review services and easily accessible electronic profiles, you can do a lot of preliminary groundwork and research at your computer.  This is true of your specific legal issue, as well as for the lawyers who are in the best position to handle your matter.

So take a look at the linked report before paying fees to one of these sites.  And be careful out there...

Post Note 11/24/2012: Here is a great post in the Simple Justice blog about the litigation erupting between legalzoom and rocketlawyer.

www.waterfordlegal.com

info@waterfordlegal.com

Tuesday, July 31, 2012

Selling or Refinancing Your Marital Home During Divorce

This is the second contribution from local mortgage professional and licensed realtor Natalie DeLeo.  In this guest post, Natalie points out three things to consider when you are selling or refinancing your marital home in the divorce context.

1.  How do the terms "upside down" or "underwater" play into your decisions relative to your marital home?

Lower property values can affect your decision on what to do about your martial home.  For many people, the marital home is the largest asset they own.  Most couples cannot afford to own and operate two households: the soon-to-be former marital home, plus another home that one spouse moves into during the separation process that is divorce.

If the value of your marital home is less than the mortgage that is owed on it, selling the home will, in many circumstances, take much longer than a standard sale.  This is because you are in a “short sale” position.  Sometimes, short sales can take up to one year to obtain the necessary approvals from the mortgage lender; a second mortgage further complicates [and delays] the process.  

You could be in the marital home longer than you think.  Therefore, it is imperative that you plan to maintain the marital home as long as necessary to preserve the value.  If you find yourself in this situation, you need to hire a realtor that is a short sale real estate expert to broker your sale. 

If you or your soon-to-be-ex-spouse are not selling the home, then how do you must determine the equity or value of the home in this down market.  With home values bottoming out, there is less equity to distribute between the spouses. Sometimes debt is apportioned rather than equity being divided.

Some couples have considered maintaining a joint ownership of the home post-divorce [i.e. ownership as tenants in common, without rights of survivorship].  Their hope is that the real estate market will significantly rebound someday and both spouses can share in the net proceeds from the sale of the former marital home.  Check with your divorce lawyer about protecting your interest should you both decide to retain the marital home.

The mortgage economic crisis also has made it more difficult to refinance a mortgage to make payments more affordable for the spouse retaining a marital home. There are only two ways to remove a spouse from the liability of the martial home.
  • Sell the home if it is not upside down.
  • Refinance the home into the spouse’s name that is retaining the home.

Most homes in an "underwater" or "upside down" position will not have an available refinance option.  Contact a mortgage professional to find out about all the refinance plans to determine whether you qualify for any.  When doing so, be prepared to disclose whether you will be receiving [or paying alimony] or whether you can take advantage of a co-signor to get the deal done.

2.  What to consider when selling the marital home.

If you have determined that your home is not upside down and there is equity then you will have to have a licensed real estate appraiser determine the current value of home. There are many different formulas to determine the value of your home.  Ask your divorce lawyer for an explanation and a referral to get your home appraised.  

Each appraiser has their own opinion of what your home is worth; these opinions could be quite disparate. Your attorney will guide you through the process of how the home will be sold and assets distributed. Your realtor can help market the home so that you can get the best price for the current market.  

Your divorce attorney will have input about how to determine the value of the marital real estate; how the property will be marketed; and the timeline of a potential sale.  The goal in each case is to solicit a viable offer and to process the offer so that the home can be sold and closed in a manner that makes sense within the divorce framework.  

3.  Potential Problems when refinancing your Marital Home.

In the divorce context, the biggest problems arise when one spouse receives the home and agrees to refinance to remove the other spouse's name from the mortgage note.  In these tough economic times, couples are faced with: the lower average home values and tightened guidelines to qualify for a refinance transaction.  Sometimes, no matter how hard a spouse tries to refinance the home, they find they simply cannot close the deal.  

The spouse vacating the marital home is often required to execute a quit claim deed in favor of the spouse who receives the home.  Keep in mind when executing a deed that transfers 100% of your interest that it may be impossible for your former spouse to refinance.  

Or worse, we have seen where the spouse who remains in the home stops paying the mortgage and the home goes into foreclosure, with the missed payments and foreclosure proceedings appearing on the innocent spouse's credit report. Keep this in mind when making decisions relative to the marital home in your divorce proceeding.

If possible, get the issues worked out before the divorce is complete.  At least know that the spouse who is trying to refinance is a qualified candidate for the mortgage and has secured pre-approved before the judgment of divorce is executed.  Your divorce lawyer can put stipulations that the closing and disbursement can take place within so many [weeks or months] of the entry of your judgment of divorce.

The key is to prepare and think through all the options first, then direct your attorney to go out and negotiate your interests. Understanding and working through your particular situation and creating a plan with your attorney and his experts will give you peace of mind. 


Call Natalie DeLeo, Mortgage Consultant-on “The Cauley Team” NMLS LO# 138228 Mortgage Resource Plus 111 S. Old Woodward Suite 205 Birmingham MI 48009Office: 248-642-4600 Ext. 110. or Email Natalie@mrploan.com



Tuesday, May 1, 2012

Practicing Lawyers Embrace Social Media

This Thursday, I will be presenting in Seattle, WA to a group of lawyers from around the country on the topic of social media.  Not considering myself an expert in the field, I was surprised to get the invitation to join an esteemed panel.

Here's the catch; the good folks at Avvo.com, a website designed to interface consumers of legal [and health care] services with the providers of those services, wanted a panel made of practicing attorneys; not just the usual "social media marketing" consultants.

Lawyers are not just dabbling in social media these days.  For most, getting connected and developing a robust electronic profile is now a "catch-up" exercise.

So I will be addressing conference attendees on how, as a busy practicing attorney, I have utilized social media in my law practice.  Along with the other panelists from around the country, I will be sharing my experience with utilizing social media to get our law firm message out to our target  audience.

Thanks, in part, to the followers of this blog, I can point to sustained search results placing us near the top of hyper-local searches for legal services in Northern Oakland County.

As a preview to this presentation, I was interviewed by Colin O'Keefe [from the Seattle area] of LXBN TV.  Here is a link to Colin's interview.

www.clarkstonlegal.com

info@clarkstonlegal.com

Thursday, April 26, 2012

SCOTUS' Judicial Review of Federal Health Care Legislation


This is a guest blog post on SCOTUS' historic and extensive judicial review of the health care legislation.  Now that the dust is settling after oral arguments in March, we here at the Law Blogger have enlisted Wayne State University Law Professor Robert Sedler, who teaches Constitutional Law, to provide his expert analysis on this topic.  Professor Sedler has commented widely on this issue currently pending before the U.S. Supreme Court.


The constitutional challenge made to the health care statutes has been to the so-called “individual mandate” in PPACA as being beyond the constitutional power of Congress under the commerce clause. The opponents contend that this provision is unconstitutional and that the rest of the act cannot be severed from this provision, so that the entire Act fails.

The High Court took the unusual step of reserving three days in March for oral arguments in review of the case; normally advocates get an hour to present their arguments and attempt to convince the bench.

Sometimes in oral argument, the position of judges on the issue in question is clear; sometimes it is not; and sometimes, there are surprises both ways.

In the arguments in this case, the questions of six Justices were so one-sided that their position was clear, and this coincided with their ideological disposition.  For example, Justices Scalia and Alito sharply questioned the government's lawyer [the Solicitor General; the petitioner in this case] and either didn't ask questions, or asked only soft questions of the respondents’ lawyers. Justice Thomas never asks questions, but he is certain to vote with Scalia and Alito.

Scalia and Alito made it clear that they consider the individual mandate unconstitutional and are disposed to invalidate the entire law.  Justices Ginsburg, Breyer, Sotomayor and Kagen did just the reverse, strongly questioning the respondents’ lawyers and using the questions to make their points, just as Scalia and Alito did in their questioning of the government's lawyer. The liberal bloc will doubtless vote to uphold the individual mandate.

Justice Roberts was tougher on the Solicitor General, although he asked some questions of the challengers’ lawyers.  For his part, Justice Kennedy asked hard questions of the lawyers on both sides. and, as is so often the case, may be the swing Justice.

The possible outcomes are as follows:

        The individual mandate is constitutional. Kennedy joins the four liberals. Roberts joins the three conservatives in dissent, or may concur with Kennedy to make it 6-3 rather than 5-4.

        Justices Kennedy and Roberts join the three conservatives to hold the individual mandate unconstitutional and that the rest of the act cannot be severed, so that the entire act falls.

        Justices Kennedy and Roberts hold that the individual mandate is unconstitutional, but that all of the rest of the act is severable. This is what the Eleventh Circuit held.

        Justices Kennedy and Roberts hold that the individual mandate is unconstitutional, but that the rest of the act can be severed except for the requirement that the insurance companies insure everyone despite a pre-existing condition, and that ratings for individual policies be community wide. This was the government's position.

Predictions as to what the High Court will do - and there have been many- are completely speculative and unnecessary. The Court will decide the case by the end of June, with several of the Justices reading their concurring or dissenting opinions from the bench in the Chamber of the Supreme Court.  At that time, on that date, we will know the fate of the federal health care statutes.


Law Blogger Note:  although the preliminary voting among the Justices in conference took place at the end of March, the Justices sometimes change their minds, and thus their vote.  No one but the Justices themselves attend these case conferences.  Also, leaks among the law clerks and court staffers are  exceedingly rare.  We will all have to stay tuned.

 


Thursday, April 19, 2012

Bankruptcy: What will I lose? What can I keep?


Our good friend and colleague out here in Clarkston, David Shook, provides another bankruptcy-related guest blog post.

Many debtors imagine repo men descending on their homes to loot and pillage their estate seconds after the bankruptcy papers are filed in federal bankruptcy court.

While this makes for great television, the facts could not be further from the truth.  While there are cases where assets need to be sold for the benefit of creditors, there is a process to be followed, and the opportunity for hearing before a judge, prior to the sale of anything in a case.

Debtors are allowed to retain up to fixed amount of value in assets through a process of exemptions, which are written into the Bankruptcy Code.  Exemptions allow for the first dollars of any asset to remain in the debtors possession throughout the bankruptcy process.  If for some reason the Chapter 7 Trustee should choose to sell an asset for the benefit of the creditors (which is very rare) the Debtor would receive the exemption amount from the sale proceeds, prior to creditors seeing a dime.

Keep in mind the system focuses on the debtor’s value in the property, not the value of the asset.  I receive many a creditor phone call to inform me that “Bob” filed bankruptcy, but got to keep his Corvette, ski boat, etc.   If the Corvette is worth $25,000 but subject to a creditor lien of $23,000, Bob has only $2,000 in equity in the car.  Given The Code, allows the debtor an exemption of up to $3,450 in an automobile, there is no benefit to creditors in selling the car.  Thus the bankruptcy Trustee has no interest in the selling the Corvette, if “Bob” continues to pay the creditor on his car loan, he may retain it after bankruptcy.

On the other hand if the Corvette does not have a creditor lien, or the lien is small enough to warrant the sale of the asset, the exemption must be paid to the debtor from the sale proceeds.  In our example the Corvette is worth $25,000, but the creditor lien is only $5,000.   Here the Trustee might very well sell the car, pay off the creditor lien, and all expenses of sale, and retain $18,000.   The Trustee must give the Debtor the exempt amount from the sale proceeds.

While $3,450 might not sound like a good deal, depending on the amount of debt this may be a great deal.  In effect the debtor has traded the Corvette for $3,400 in cash and wiping clean all creditor claims.

If upon review, it is determined a debtor may have assets that cannot normally be retained in bankruptcy, Chapter 13 of the Bankruptcy Code may very well help.  One of the benefits of Chapter 13, which focuses on the repayment of debts over a 3 to 5 year period, is a debtor is allowed to “buy back” assets from the estate. 

In this example the Debtor is allowed to pay creditors the value of the Corvette ($25,000), less the lien and exemption ($5000 + $3,400 = $8,400) over the life of the plan.  Again depending on the amount of debt involved, paying $16,400 over a 36 to 60 month period may very well be a great deal.

So what can you keep in a bankruptcy?  One of the few clear benefits for the debtor in the 2005 bankruptcy reforms relates to retirement accounts. 

The vast majority of tax deferred retirement accounts, IRA’s, 401(k), 403(b), etc., are exempt from the bankruptcy estate.  While the probations against transfers discuss in my last post apply, and it is not advisable to move a $10,000 CD into a IRA on the eve of bankruptcy, normal contributions are exempt regardless of the balance in the account.  A debtor, who puts 6% of his gross pay into a 401(k) or contributes the maximum deductible amount to his IRA each year, has an unlimited exemption in the account.  As I tell clients, the difference between your case, and a case with $100,000 in an IRA, is the money you have after bankruptcy.

I have seen several cases over the years where the Debtor has hundreds of thousands of dollars in an IRA or 401(k).  In one example the Debtor had close to two million dollars in his IRA’s.  All of these funds where retained free of claims by creditors or the Trustee.

For all of the energy invested in wealth retention, the best protection is also the simplest.  Everyone with a paycheck should have some type of retirement account, and deposit as much as possible into the account, up to the deposit limit’s set by the IRS.

Great advice Dave.  Any of our readers with questions are encouraged to contact Mr. Shook for answers.


Tuesday, April 17, 2012

Privacy and Tracking Cell Phone Use

Our cell phones have been described as the biographer of our daily lives.  If deconstructed, a cell phone can tell an awful lot about its owner.

Increasingly, cell phone carriers are being subpoenaed in high-conflict, or fault-based divorce cases.  The cell phone records identify the persons with whom an individual communicates throughout the day, and where that communication occurred.

The information contained in cell phones is also important in the law enforcement context.  Formerly reserved for federal agents, local law enforcement is now getting in on this information bonanza thanks to a smorgasboard of services provided by cell phone carriers.

The legal question posed by the practice is whether local police departments must obtain a probable cause-based warrant prior to securing our cell phone information from our carrier.  The answer is unclear.

Recently, SCOTUS decided United States v Jones, requiring a warrant prior to installing a GPS tracking device on a drug suspect's vehicle.  The decision in Jones did not address whether a warrant is needed in the case of obtaining cell phone records; including the geographic information in the now-ubiquitous GPS navigation systems embedded in cell phones.

In addition to geo-tracking data, there is also "cloning": having a cell phone, for example, download [to police] copies of sent and received texts.

This information is deemed so important to law enforcement agencies, some are by-passing the cell phone carriers altogether, purchasing their own cell phone tracking equipment in order to avoid the cost and delay of dealing directly with the various carriers.  In February, police in Grand Rapids, for example, were able to track a cell phone call placed by a stabbing victim who had been secreted away in a basement.

At present, however, there are few guidelines for cell carriers and the disparate local police agencies as to what information can be provided, and what evidentiary standard must be met in such disclosures.

With the SCOTUS decision in Jones less than clear, and with the federal circuit courts of appeal divided on the issue, Congress and the state legislatures are looking at the issue.  Privacy law is going to be a growing branch of our jurisprudence in the next few decades.

www.clarkstonlegal.com

info@clarkstonlegal.com

Saturday, April 14, 2012

Electronic Service of Process

Well, the day is here; or, at least it's getting here.  Lexis/Nexis, the huge legal data base firm [and a charter member of the "Big Data" club], reports that some courts in several Commonwealth countries are allowing alternative service of legal papers via, well, er, Facebook, and other electronic means designed to achieve delivery -in fact- of legal papers.

In the UK, the High Court allowed an injunction to be served via Facebook on an anonymous [and abusive] commenter to Donal Blaney's conservative blog.  Imagine that...

In Australia, a foreclosure notice was ordered to be sent to the delinquent homeowners via Facebook.  Under Canada's rules of alternate service, notice of a claim was sent to the defendant both through his employer, and via Facebook. And in New Zealand, a the initial complaint in a business dispute was allowed to be served on the missing defendant through a company Facebook page.

No reported cases here in the US folks, but it won't be long.  These days, perhaps the most sure-fire way to get someone, at least a person that has a FB account, is by posting on their wall or sending a message.

Texas lawyer John G. Browning addresses the issue in an excellent article published in the Texas Bar Journal.  More on this to come, for sure...


www.waterfordlegal.com

info@waterfordlegal.com

Friday, March 16, 2012

Asset Transfers Prior to Bankruptcy: Can I just give my son the Corvette?

Attorney David Shook

This is the first in a series of guest blog posts from Clarkston-based Attorney David Shook, who has a law practice focused on consumer and small business bankruptcy.

As dad said, you can do that, but be prepared for the results.  Folks are terrified they are going to “loose everything” in a bankruptcy. 

The fact is the Bankruptcy Code allows the debtor to keep assets with no equity or up to a fixed dollar amount, through a process of exemptions.  The vast majority of bankruptcy cases are no asset cases where the debtor loses nothing. 

While the billboards I see proclaiming, “lose the debt, keep your stuff”, are rather extreme, this proclamation is more accurate than the misconception that the bankruptcy court takes all your possessions. 

In spite of the facts, too many people transfer assets to friends and family as the creditors begin to circle; in some cases with bad results. 

The Bankruptcy Code makes the results of transferring an asset very clear. “Transfers made with the intent to hinder defraud or delay creditors,” within one year of filing a bankruptcy is a basis to deny or revoke the discharge of a debtor.  In addition, transfers made in up to 6-years prior to filing the bankruptcy petition, regardless of the intent of the Debtor, may be avoided by a creditor or bankruptcy trustee, and can be liquidated to benefit creditors. 

I tell clients on a regular basis, people do things in the normal course of life that are not an issue, until you file a bankruptcy.  There may be legal defenses, in addition to practical considerations, but the graduation gift of $10,000 five years ago could very well be an issue in today’s bankruptcy filing.

The most extreme result of transferring an asset is rather nasty.  The Debtor’s discharge may be denied, and the person you transfer the asset to may very well be sued.  If the Trustee is successful, the asset is returned to the Estate, and sold for the benefit of the creditors. 

Thus every debt included in the bankruptcy is ruled non-dischargeable in the case, and any future cases.  The brother (or son) is on the bad side of a federal lawsuit, and if the Trustee wins, the Corvette is sold and the proceeds paid to creditors. This is not what I would call a good outcome.

Payments to creditors on legitimate debts may also cause issues in a bankruptcy case. Payments within 90 days to any creditor, or 1 year to “Insiders” (think family, and business associates), called preferences in bankruptcy-speak, may be avoided and used to pay all creditors.  Thus, using your tax refund to pay off the $3,000 loan from your sister, on the eve of bankruptcy, is never a good move. 

To add to the penalty for voluntary preferences, or any other transfer for that matter, normally a debtor can exempt and keep (I will address exemptions in a future post) the same $3,000.00 as part of a bankruptcy proceeding and pay the family after the case has completed.  However, if the same amount is voluntary transferred (vs. garnishment or other creditor action), and then recovered by the Trustee, the Debtor is not allowed an exemption in the recovered asset.     
                   
The issues surrounding the return of preferential payments to the estate are normally much less of concern to a client.  Most Debtors have little concern over the fact any one credit card company is forced to return the $1,000 payment made within 90 days of filing.  However, having to wait 7 months to allow the year to run on the money paid to mom, or any other close family member, can rattle the nerves.

Involuntary transfers (again think garnishment of wages) made within the 90 days may also be recovered, quite possibly to the benefit of the debtor.  In certain circumstances, a bankruptcy will not only force the creditor to stop garnishment, but allow the debtor to recover and keep the amount taken by the creditor.

As with any legal issue, get professional advice from an attorney who practices in your area of concern.  No matter how skilled the practitioner, the web is no substitute for a legal consultation.


Tuesday, March 13, 2012

Law School Rankings Unkind to Michigan Law Schools

Once again, the highly controversial national law school rankings have been published by the US News & World Report. Although you have to pay to see them in full, University of Cincinnati Law Professor Paul Caron has published a segment of the rankings; peer reputation vs "overall" rankings.

Some movement was observed at the top of the rankings.  The University of Michigan Law School, for example, fell three spots from 7th to 10th.  Harvard also fell a spot.  To the USN&WR editor: really; what changed at UM and Harvard to merit the drop?  Go figure.

Proving that it never hurts to associate with a huge public university, Michigan State University's "College of Law" [formerly the unaffiliated Detroit College of Law] is now ranked #82 overall.  Not happening in the law school's "stand alone" days.  Not yet 1st tier, but improving.

MSU bested Wayne State, which now sits at #112 overall; that never would have happened in the 1980s.

While my law school alma mater, University of Detroit Mercy, did well in the NCAA men's basketball tournament seeding, in the law school rankings, er...not so much; stuck at #178 in the peer reputation category with an "overall" ranking simply noted as "tier 2" and trending downward from its whopping 169 rank back in 2009.  Guess that means, "second rate".  What's going on over there?

Finally, we would be remiss if we did not at least mention Michigan's other perennial basement dweller in these confounded rankings: the mighty, albeit somewhat narcissistic, Thomas M. Cooley Law School; ranked at #184. 

If you care enough to drill into Cooley's own website, however, you will see that they persist in publishing their own law school ranking which places them second [to Harvard] based on a variety of class-size factors.  And perhaps that is as it should be, with a whopping 3727 Juris Doctor candidates currently enrolled [yes folks, that's Three Thousand Seven Hundred Twenty Seven students; can you say, you are just a number...].  The next highest enrollment is Georgetown University, with 1982 students.

Again, we have to ask, do we really need that many lawyers out there on the street?  Really?

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