Recent Workplace Enhancements Move Law Firms Closer to Other Professions

Vol. 39 • No. 12 • December 2020

In This Issue

Are law firm cultures changing? Getting better? Deteriorating? Top management consultants weigh in...... Page 1

Of Counsel’s annual year-end wrap-up. And what a year it’s been, in case you haven’t noticed!...... Page 3

Eric Seeger offers a performance report on midsize firms during the pandemic—and a most encouraging report it is!...... Page 5

Ian Lipner looks at Russian hacking and the myriad other cybersecurity threats plaguing the professional services and their clients...... Page 10

Matt Addison is helping McDonald Carano emerge as one of Nevada’s legal powerhouses, and a real symbol of that state’s dynamic future...... Back Page

Cultural Changes … Recent Workplace Enhancements Move Law Firms Closer to Other Professions

Some 20 years ago Altman Weil law firm run into problems. “If you can’t do that,” he consultant Tom Clay was riding on a train says, “all that fancy crap you do involving from Washington to Philadelphia and found the numbers is irrelevant because you can’t himself in an engaging conversation with a have a robust new organization with counter cultural anthropologist. She told him that cultures.” she worked for one of the Big Four accounting firms on mergers and acquisitions. Clay, But he wanted to understand what cul- who helps law firms navigate their own M&A tural anthropologists do in the M&A pro- deals, was particularly intrigued and needed cess. “She told me,” he says, “‘They bring us to know more.

He did know that most of the major consul- Continued on page 2 tancies and accounting firms realized a long time ago that if the two companies involved in a major M&A deal can’t “acculturate” quickly and smoothly, the new marriage will in even before the deals are inked to take a have,” Clay says. “I think law firms believe it’s look at the new cultures and start to evaluate too touchy-feely, plus it’s an extra cost, and what they are, what might need to be gradu- dealmakers don’t want to slow things down. ally changed, or if they should make the But do I think it would be worthwhile, and whole thing homogenized rather than ours it’d be extremely worthwhile if you’ve got two vs. yours.’” firms that have several hundred lawyers.”

So before law firms merge do they ever use The Big Four, and many companies across the knowledge and skills cultural anthropolo- the economic spectrum, have valued and gists bring to the calculus of the deal? Should understood the importance of culture within they? “I don’t know of any firm that has done an organization for decades—much lon- that but I’d be pleased to learn that some ger than law firms have, according to many sources including those interviewed for this article. But lawyers have come around, and in the last decade or so, they have seen—and created/adopted—many cultural changes.

This has occurred, in part, because more and more law firm leaders ask an important question, says Elizabeth Lampert, the Copyright © 2020 CCH Incorporated. founder and president of Elizabeth Lampert All Rights Reserved. PR, based in the San Francisco Bay Area. “Is OF COUNSEL (ISSN 0730-3815) is published monthly my firm a happy place to work?’” she says, by Wolters Kluwer, 28 Liberty Street, New York, they should ask themselves. “If lawyers are NY 10005. Subscription rate, $1,230 for one year; single waking up every morning and moaning to issues cost $154 (except OF COUNSEL 700 ANNUAL SURVEY). To subscribe, call 1-800-638-8437. For cus- themselves—that might be a warning sign. tomer service, call 1-800-234-1660. Address correspon- The billable hour’s weight can be massive if dence to OF COUNSEL, 28 Liberty Street, New York, not balanced by good people, fair policies, NY 10005. Send address changes to OF COUNSEL, and rewarding work.” Wolters Kluwer, Distribution Center, 7201 McKinney Circle, Frederick, MD 21704. This material may not be used, published, broadcast, rewritten, copied, redistributed, or used to create any First: Compare—Then: Change derivative works without prior written permission from the publisher. For information on how to obtain permission to reproduce content, please go to the Of Counsel talked to Clay, Lampert, and Wolters Kluwer Web site at www.WoltersKluwerLR. four other professionals in the legal indus- com/policies/permissions-reprints-and-licensing. try about those changes and the one thing For customized article reprints, please contact Wright’s Media at 1-877-652-5295 that came up a few times was the idea of or go to the Wright’s Media Web site at cultural comparison. “You can only under- www.wrightsmedia.com. stand a law firm’s culture when you com- This publication is designed to provide accurate pare it to another law firm’s culture, and and authoritative information in regard to the sub- you need to do that thoroughly and hon- ject matter covered. It is sold with the understand- estly before you can make changes,” says a ing that the publisher is not engaged in rendering legal, accounting, or other professional services. New York–based consultant who asked to If legal advice or other professional assistance is remain nameless. “One change in last 10 to required, the services of a competent professional 15 years – and frankly, it took too damn long person should be sought. —From a Declaration of Principles jointly adopted and that says a lot about the profession – by a committee of the American Bar Association is that law firms are more willing to do that and a Committee of Publishers and Associations. comparison and look at the workplace texture www.WoltersKluwerLR.com Continued on page 17

2 Of Counsel, December 2020 From the Editors

Taylor’s Perspective … Looking Back on 2020: What a Year for the Planet … and the Legal Profession

When the year comes to a close, many of us of the many observations I’ve seen in the reflect on the twists and turns and highs and legal field. It was a way of marking an anni- lows of the last 12 months—and 2020 seemed versary of sorts: my 25 years of writing for to have brought many more lows than highs. Of Counsel. For instance, I wrote that lawyers To say that a lot transpired this year serves were continuing to shed the rap—the very as the epitome of an understatement. Stuff justified rap—that they are slow to innovate. happened. So much so that when members of “For years, they came kicking and screaming the media generate their year-end wrap-ups in accepting advanced technology and, really, they’ll have their work cut out for them. most new ideas and ways of doing business, if they came around at all. Not so much any- At Of Counsel each December, we conduct more. Many law firms should be given more a different sort of look-back by reviewing credit than they do for cultivating an atmo- the legal-profession news, developments, and sphere of innovation, and many lawyers … trends that we covered during the year. A lot happily embrace change. Let’s hope this evo- happened in the legal world as well. lution of new-idea acceptance keeps moving forward; it likely will and probably will even In January we ran a story about various speed up.” legal profession insiders offering predictions for 2020. Some came true but COVID, the We know what happened in March: The economic collapse, and other events pre- pandemic hit our shores and of course spread vented the manifestation of many others. around the planet. But our go-to-press date Consider a few of those predictions from came weeks before the world turned upside- that article: “Industries across the economic down. We knew about the virus but it still felt spectrum will continue to consolidate as will anchored down in China. So, instead of cov- the legal profession; artificial intelligence will ering COVID, our lead story examined the make more and bigger advancements into dynamics of the thriving Florida legal mar- the operations of both clients and law firms; ket, noting that it was being driven by real prudent firms will embrace ‘service metamor- estate, healthcare, and an influx of new busi- phosis’ to cultivate tighter relationships with nesses, including a good number of climate clients; labor arbitrage will be on the rise; change refugees. more women will serve in leadership roles … and more.” Also in our March issue, the Of Counsel Interview featured the CEO of Schwabe, The following month in these pages I asked Williamson & Wyatt, Graciela Gomez readers for indulgence as I took note of some Cowger. Since she took the reins of the

Of Counsel, Vol. 39, No. 12 3 Portland, Oregon-based firm in October us that they felt tele-deposing, so to speak, 2018, she has brought an already flourishing may continue to grow even after the pan- partnership even more success with, among demic is over. other things, a focus on the integration of all employees, not just lawyers. Gomex Cowger “I think deposition videos are going to also experienced personal success earning become very frequent, regardless of COVID-19 several honors including the Executive of the going away,” said Maria Bellafronto, a Year Award in 2018 by a local business pub- co-chair of the litigation group at Silicon lication. Let’s hope more and more law firms Valley’s Hopkins & Carley. “We’re going to elevate women and minorities to leadership see clients saying, ‘You know, we don’t really positions. need you to fly to the East Coast to do depositions. We can just do it by video.’ And I think attorneys are going to have to get smarter and Coping with COVID be strategic about what depositions we take in person and which ones we conduct virtually.”

When the COVID crisis tightened its grip In October, our lead story looked at a very in the spring, we examined how law firms active practice area and the need for firms to were handling it and tried to see some rays hire lawyers to keep pace with the growth: of sunshine through the darkness in an edito- “Many law firms are scrambling to hire attor- rial headlined: “Amid the Pandemic’s Pain & neys with bankruptcy-insolvency-restructur- Suffering, Opportunity for Change Emerges.” ing experience and expertise to respond to After talking to several sources and conduct- the ever-expanding client demand for counsel ing research, I wrote: during this recession driven by the COVID-19 crisis. The rush to find talent has legal recruit- “Like so many businesses around the world ers as busy as ever.” during this deadly and economically crip- pling pandemic, countless law firms across Last month our front-page headline read, the country have closed offices and directed “Climate Change Complicity … New Report attorneys to work from home. And guess Calls Out BigLaw for Representing Polluters, what? From what I can tell from talking to But Some Say ‘So What?’” The article several lawyers since the lockdowns started, reported on The 2020 Law Firm Climate it’s working out just fine and, in some cases, Change Scorecard, generated by Yale law stu- attorneys say they’re even more produc- dents. “Law firms write the contracts for fossil tive than if they were advising clients in or fuel projects, lobby to weaken environmental from their law firm’s offices. Naturally, some regulations, and help fossil fuel companies glitches pop up and cause some inconve- evade accountability in court,” according to niences. But even for attorneys who rarely if a statement by Alisa White, a lead author of ever wanted to work remotely many say they the report. “Our research is the first to expose value the extra time they’re gaining with the the broad extent of firms’ role in driving the new simple ‘commute’ from one room in their climate crisis.” house to another and not through rush-hour traffic.” These are just a few of the many topics we covered in 2020. Like many of you, I’m ready Our June lead article examined how to turn the calendar page. May 2021 bring the COVID and its economic ramifications world positive change. And, as the holiday essentially slammed the brakes on litiga- season begins, we at Of Counsel extend well- tion for a few months but then litigators got wishes to you all. ■ much busier. And interestingly, the pandemic spawned a new way of litigating with deposition-by-video and other changes. Some told —Steven T. Taylor

4 Of Counsel, December 2020 Midsize Firm Report: Mastering the COVID-19 Environment

Earlier this year, Altman Weil spoke with work. Firms raised their rates fairly aggres- the managing partners and COOs of 30 US sively and have successfully realized the rate law firms of 30 to 350 lawyers regarding increases. Although clients have not generally financial performance and outlook, office been pushing back on rates or slow-paying closings and re-openings, compensation and the bills, firms are worried that collections staffing adjustments, practice area trends, may lag now that the wave of PPP money summer programs, pandemic-related oppor- has flowed through the client organizations. tunities, and major concerns going forward. Managing partners expressed a great deal While much has been written about the pan- of uncertainty about how quickly they can demic’s effect on the “Big Law” segment of expect to collect accounts receivable during the market, we wanted to check in with mid- the final months of the year. They worry that sized firms around the country. the traditional year-end collections push may not generate the usual haul. Here’s what we learned: Not surprisingly, most firms reported a slowdown in total billable hours worked dur- Financial Performance ing the April to July period. However, almost every firm was doing better through July than they had projected back in March and April. Nearly every firm we spoke with enjoyed Even the six firms whose hours or revenue a solid financial performance in 2019 and were down 10% to 20% compared to 2019 said began this year with a strong pipeline of they expected to be okay this year because

Editor-in-Chief Wolters Kluwer LARRY SMITH MEGAN ROSEN Phone 201-854-3288 Senior Developmental Editor Fax 201-861-6728

Senior Editor STEVEN T. TAYLOR Editorial Office Phone 503-245-3209 2700 Lake Cook Road Riverwoods, IL 60015 PATRICK J. McKENNA Phone: 847-267-7000 Contributing Editor Fax: 847-267-2945

Of Counsel, Vol. 39, No. 12 5 expenses are so low and because of the influx application period because lawyers were more of federal PPP money. Some were planning to comfortable navigating the ambiguities of the prepay expenses and carry cash into next year process and had capable staff on hand to ded- to reduce the risk of a down year in 2021. icate to it. Moreover, law firms’ expenses are Five firms were on pace to outperform last clearly dominated by payroll and rent, which year, unaffected by the pandemic. the PPP funds were intended to cover.

One managing partner was concerned Expenses about the optics of accepting federal money. Most took a more pragmatic view: “We were advising all of our clients to apply for the PPP Every firm focused on expense reduction in and they naturally expected that we would do March/April in all the ways we would expect the same.” to see during an economic downturn: pay cuts, staffing cuts, reduced draws, deferred “The PPP was instrumental in getting us distributions and bonuses, deferred hiring, through this psychologically,” said one man- suspended 401(k) contributions, and the like. aging partner. He continued, “But for the PPP The Paycheck Protection Program worked as loan, we would have had layoffs out of the planned by saving jobs at the time, although gate.” Another agreed, “If not for the PPP, we firms are looking at staffing adjustments now. would have made adjustments to staffing and Not all firms in this sample implemented pay pay.” A third said, “We got a PPP loan and cuts and furloughs, but most did. Most of made people whole.” those firms have since restored pay in full or in part. Equity partners have been asked to One large firm leader said, “We may end defer compensation to make others whole up with more cash at year end than we know while the year plays out. Four firms reported what to do with,” due to a huge infusion of that partner compensation had been reduced federal money. Three firms said in hindsight, temporarily by as much as 20% to 35%. they didn’t need the money.

Expenses are way down in every firm, with spending sharply reduced on travel and Staffing entertainment, CLE and conferences, spon- sorships, business development, and other categories. One managing partner spoke for Some firms took advantage of the difficult the rest: “We froze everything we could— economic climate to get rid of chronically no travel, no conferences, no client visits.” underperforming attorneys, underutilized Another said, “We are being very cautious staff, and problem individuals, while being with cash and projecting very conservatively. careful not to jeopardize their PPP standing. We’re concerned we’re not through this yet.” Some jobs could not be handled remotely or became unnecessary as the offices emptied. Presently firms of all sizes are looking at PPP Loans further staffing cuts and restructuring. The work-from-home scenario made many firms aware that they were overstaffed, but that Every firm we spoke with had applied for they lacked sufficient transparency into what and received a PPP loan. A few of those firms their staff were doing to assess exactly how will have to pay back some or most of their overstaffed. Special projects to answer that loan because, as it turns out, they didn’t really question are underway in some firms. need the money, but everybody took the money for the liquidity. Law firms had advan- The traditional model of situating a part- tages over other types of businesses during the ner’s secretary right outside their door is dead

6 Of Counsel, December 2020 or dying in many firms, a casualty of the pan- able to fix or work around their technologi- demic. Firms are looking to reconfigure their cal glitches fairly quickly. The IT department office space to create service pods—if on-site rose to the occasion in firm after firm, earn- administrative support is even needed at all. ing high praise from firm leadership.

Firms said they are working on remote Office Closings and Re-openings work policies, new HR policies, and stan- dardizing hardware and software for easier IT support. One firm took advantage of the unusual commercial real estate market to extend its The Boomer generation has had an awak- lease at highly favorable terms. Most firms ening of sorts, now realizing that one does not are rethinking and recalculating their space have to be in the office to be productive. We needs going forward. In a June survey con- heard story after story of senior partners who ducted for a large, multi-office law firm, railed against telecommuting for years, only Altman Weil found that most everybody was to find that they like it themselves, the work enjoying working at home and preferred to gets done, and they intend to continue work- continue working remotely at least part-time ing at home as much as possible. Three man- when their firm fully reopened, with two aging partners said they were highly skeptical exceptions: business generators who need to that hoteling arrangements will be a feasible delegate, train, communicate and collaborate alternative for attorneys. with others throughout the day, and new hires who need to figure out where they work and learn how to do the job. Those themes were Other Observations repeated during these interviews with mid- sized firms. A few law firm leaders noted that they were In late July, we observed a rapid shift away managing their partners’ expectations about from reopening plans, as firms suddenly real- year-end profitability and compensation due ized that COVID anxieties and shutdowns to continued uncertainties. One mentioned would persist into the next calendar year. that he was surprised to see partners taking Several firms said they didn’t expect work life their regular August vacations. to be “back to normal” until mid-2021. Some practice areas have been quite busy For the most part, firms are choosing to across most or all firms, including trusts accommodate employees who strongly prefer and estates, tax, employment, and health- to remain at home. A few firms have encour- care. Business counseling related to govern- aged all employees to return to the office ment stimulus was highly active in the spring. because working collaboratively is core to School law practices have been busy advis- their culture and values and a benefit to cli- ing on ever-changing CDC, state, and local ents. One managing partner bluntly stated, guidance. “There is a stay-at-home option for our staff, but not one that includes compensation.” Commercial real estate work dried up in most firms. Transactional work was gener- Several law firm leaders said it has been ally down, with some exceptions. Litigation harder to reopen than it was to close. The was mixed, depending on jurisdiction and shift to working from home went well every- the functionality of the court systems. Some where in terms of getting people productive firms are setting up media centers in their in their home workspaces. One firm ordered conference rooms for depositions and the new laptops for their legal assistants that took like. A number of firms said they had geared three months to arrive, but most firms were up for an onslaught of bankruptcy work

Of Counsel, Vol. 39, No. 12 7 that so far has failed to materialize—except COVID-19 has presented opportunities in Texas, where all firms are busy with new as well as threats. Several law firm leaders bankruptcies. Many businesses are simply said they have been able to make faster deci- closing their doors, rather than going through sions and implement changes that would have the bankruptcy process. Intellectual property encountered resistance and delays under nor- work was up in some firms, down in others as mal circumstances. Several firms reported some large, innovative companies put all pat- that they have improved core functions like ent applications on hold for months. time entry and billing, with one firm improving its monthly billing cycle by five days. Most firms went forward with their summer programs but many of them reduced Most firms relaxed or shut down their the length of the program by two weeks or lateral hiring efforts in the spring, except to more. With summer clerks working remotely, pursue specific hiring needs that had been it was harder than normal to evaluate the law defined prior to the pandemic. A few of the students and some firms admitted it wasn’t a financially prospering firms were aggressively great experience for the students. One manag- recruiting laterals and groups. At least three ing partner said, “It was a disaster. Our sum- were pursuing a major merger and others mer associate was invisible—I saw her once.” were open to the possibility.

Business development has been tough due to travel restrictions and the lack of face-to- What’s Next? face meetings. Clients, however, do not seem to be inclined to switch firms at this time. Considering the general stability of client It’s time to start looking forward and outward relationships and work flow, one has to won- again. Six months into the COVID economy, der whether the ROI on all that travel time most firms remain inwardly focused on pro- and entertainment expense has been worth cesses, technology, cash flow, and compensa- it. tion—and that should not stop. Firms should make use of the current window to improve systems, policies, and workflows wherever Opportunities and Concerns possible. While that work continues, it’s also time to get strategic, planning for profitable growth (higher returns on the owners’ invest- By far, cultural issues were the biggest con- ments), and improved competitiveness. cern expressed by law firm leaders. Recruiting, onboarding, training, and professional devel- Our experience coming out of the last opment are unsettled questions at this time. recession is that firms that got back into the Firms are wondering what will serve as orga- market for talent earlier than other firms that nizational glue if people are not seeing each grew while other firms were hunkered down, other and cultivating personal relationships found that their efforts paid off handsomely. that bind them to the firm. We are encouraging firms to get very seri- Combine the lack of social connectedness ous about profitability analysis so they can with the irritation of paying for office space make wise business investment decisions and that is not being used, and some managing dump or retool unproductive assets. partners are worried about losing lawyers to lower overhead firms or to virtual firms that As for answers to the cultural questions, we promise 70% of revenue or more to the origi- encourage firms to find solutions in the con- nator. One firm had already lost partners to text of the new normal, not to try to make the such a firm. questions go away by reverting to the old.

8 Of Counsel, December 2020 Overall, the law firm leaders in our survey cohesiveness despite being physically dis- were upbeat and optimistic about the future, tanced. Law firm leaders deserve a lot of despite obvious concerns about the pace of credit for stewarding their firms through a economic recovery. Although we began with truly difficult time. ■ the premise that mid-sized firms might be having a significantly different experience in —Eric Seeger the pandemic economy, we learned that for the most part, they are closely tracking their larger counterparts. Eric A. Seeger is a principal with Altman Weil, Inc. He works with law firms on strategy and Firms have demonstrated high levels management projects. Contact him at 267-908- of resilience, vitality, determination, and 9781 or [email protected].

Of Counsel, Vol. 39, No. 12 9 Cybersecurity and Privacy: The Myriad Risk Vectors

In this issue, we present the first of a two-part cybersecurity a boardroom conversation. But report. Part Two will appear in Of Counsel’s laggards waited for the next shoe to drop. January issue. —Editor They didn’t train their employees to avoid phishing; they didn’t beef up their security; Cybersecurity was once a technical conver- they didn’t hire specialist teams. sation confined to the pages of trade maga- zines and left to the information technology Or worse, the cybercriminals may just be community to decipher. It wasn’t a business a step ahead of industry. Now, during the conversation unless it was a budget discussion, COVID-19 crisis, organized cybercriminal and cybersecurity was still seen by the typical groups are launching two pronged attacks— CFO as an area in which cost-effectiveness using stolen data as further blackmail fod- was a bigger priority than effectiveness. der while simultaneously paralyzing critical systems. And they’re stealing new user cre- The mood began to change with the first dentials that will enable them to access big breaches, often those associated with more accounts for new attacks in the future. credit cards or payment accounts. LEVICK is This happens as millions work from home well-known for handling some of the indus- on insecure cable routers and their children try’s first and most severe incidents, such as add new credentials to dozens of new web- the U.S. Office of Personnel Management sites on second-hand laptops for remote cyberattack, the Target credit card data learning. The global pandemic has created breach and the Heartland payment card a massive opportunity for cybercriminals. breaches. By then it was becoming more real, and easier for a CFO to calculate the cost of The leader companies, especially in the a data security incident. In the meantime, the regulated industries, already understand world moved more commerce, more business that doing business in this environment process online. without proper cybersecurity posture could be fatal. They are installing next generation Cybercriminals playing a longer game with endpoint security products, engaging with the aim of identity fraud made personally forensic specialists for simulations, adding identifiable information (PII) their targets, risk quantification capabilities, and even and GDPR regulation followed, making protecting their executives with concierge- cybersecurity more a priority for companies. based services. Still, far too many brands waited to respond rather than prevent. In the interest of further informing leader companies, we explore in this writing the Ransomware groups then became more myriad vectors for risk, the effects they have prominent—criminal groups targeting the on our businesses, and the measures compa- actual operations and public facing ser- nies are putting in place to contend with the vices of companies. The cost of downtime next wave of cybercrime. is inarguable. The impact on brand is unmis- takable. And in 2020, if your website and systems are all down, for that moment, you The Other Russian Hacking cease to exist. Scandal As Fortune 500 CEOs watched malware shut down their competitors’ day-to-day Almost lost amid the Watergate-level tsu- operations in a blink of an eye, they made nami of media coverage over incriminating

10 Of Counsel, December 2020 emails and what constitutes “collusion” is Palpitations, Anyone? the U.S. government’s 2017 revelation that Russian hackers were behind cyber-intrusions into the U.S. energy power grid. FBI and Mark Farley, of Farley & Partners LLP Department of Homeland Security (DHS) and crisis response counsel to some of the officials believe that the hackers’ primary tar- largest global energy companies and chemi- gets were nuclear power companies and other cal manufacturers, also worries about the energy facilities. integrity of America’s industrial infrastructure. “Chemical manufacturing facilities To date, those officials say, there is no and oil refineries represent targets for ter- evidence that plant operating systems have rorists or others committed to industrial been compromised or that public safety has sabotage,” Farley says, pointing out that been placed in jeopardy. Hackers have so far facilities that rely on automated process “only” succeeded in breaking into adminis- control systems could be especially vulner- trative systems, pilfering log-in and password able to intrusion. information. Farley emphasizes that unsavory elements Still, it’s a sobering development—one are hatching computer viruses that specifi- every bit as threatening to national secu- cally attack industrial processes. “The emer- rity as the integrity of our election system. gence of the Stuxnet worm in 2010 which is Chaos, it has long been said, is only an believed to be the first malware created specif- extended blackout away. It’s been a mat- ically to target such control systems, exposed ter of public record that nefarious Russian their vulnerability to cyberattack, not just hackers have zeroed in on U.S. energy com- by terrorists, but by foreign governments,” panies. The only thing more frightening he says. A rogue command at a chemical or than having a hostile nation proven capable energy plant could cause a pipe to rupture or of controlling your energy grid is the execu- a storage tank to explode, endangering work- tion of that control. ers, the public, and the environment, warns Farley. It’s also a matter of public record that Russian hackers deliberately disabled the Hackers could foist similar chaos onto Ukrainian electric system in December 2015, the control systems of the financial services leaving a quarter of a million Ukrainians industry or any sector they choose, experts without power for hours on end. The Russians say. McKew observes that such attacks, left have since tested a cyberweapon capable, unmolested, will surely weaken the U.S. econ- experts say, of upending power grids on every omy and, with it, national security. continent, with nuclear facilities at the top of their target list. What Can We Do About It? Information warfare expert Molly McKew of Fianna Strategies maintains that “Russia On a national level, McKew says, we need views these asymmetric means as critical to harden our energy grid and gather bet- tools to give them advantage in a shadow ter intelligence about foreign threats. Other war against the West—and the development critical U.S. infrastructure—including our and deployment of these tools is escalating. communications grids, our fiber-optic trans- One category of hybrid warfare is economic mission lines, and our water extraction warfare, and targeting critical infrastructure and distribution systems—should also be as pressure, disruption, or leverage is a part strengthened. of that. These threats and attacks from the Kremlin are part of a concerted campaign to On a corporate level, what remedies can weaken America.” facility owners and operators take to mitigate

Of Counsel, Vol. 39, No. 12 11 risk and strengthen their capacity to fend off have little doubt about either their intent or cyberattacks? Mark Farley and I offer this capability. We also have an early warning. quick prescription: Don’t palpitate. Prepare. • Evaluate your site security by assessing overall plant vulnerability, particularly your control systems; Facebook’s Response to Russian • Review your plant network architec- Hacking May Determine Tech’s ture and assess the vulnerability of your Internet and corporate information Regulatory Future networks; • Update your employee crisis training to In many ways, Mark Zuckerberg is a tal- include a cyberattack scenario from a isman for the rest of Silicon Valley. The hostile foreign power and regularly con- Facebook founder and social media pioneer duct drills to ensure that everyone is on has always embodied the Valley’s swashbuck- the lookout for telltale cyber intrusions ling entrepreneurship. and aware of their take-charge responsi- bilities should one occur; But Zuckerberg’s buccaneering days are • Have worst-case-scenario materials ready likely behind him as he has finally started to go, from statements and tweets from to recognize the perils facing Facebook and the CEO to testimonials from third-party his industry, not to mention owning up to cybersecurity experts; his responsibility in cleaning up the Russian • Ensure that your communications people hacking of his company’s services that tainted are expert at tapping social and digital the 2016 election. The same holds true for the media channels as well as conventional rest of the tech community, much of which outlets—in a cyber crisis, you’ll need to (Twitter, DreamHost, and Disqus, to name dispel myths and misinformation and get but a few) was manipulated by cyber crooks the facts out in a hurry; and working under the thumb and index finger of • Track adversarial online communications Vladimir Putin. and examine its original source—look for patterns and things that don’t seem Suddenly Silicon Valley has become the to make sense. Most nation-state attacks front line in America’s fight to keep hostile leave footprints along the way that don’t foreign powers from throttling our demo- necessarily tell you what is about to cratic institutions. Russia’s thuggish behav- happen but can point you in the right ior is especially thorny for the Big Five, the direction. so-called FAANG companies—Facebook, Amazon, Apple, Netflix, and Google. Cyberattacks have become an unfortunate reality for every business and institution, Robert Mueller’s investigation revealed regardless of size or mission. Having your that Russia’s military intelligence unit, the systems breached or blatantly assaulted is not GRU, an offshoot of Putin’s alma mater, the a matter of if—it’s a matter of when. KGB secret police, targeted Facebook and other Web-hosting platforms to trumpet the Companies in these perilous times have no emails it had stolen from Hillary Clinton’s choice but to ready themselves for the night- campaign and the Democratic National mare contingency that America’s biggest Committee. All this follows revelations adversary could be hell bent on disrupting that the Russians tapped phony Facebook their operations. accounts to spread malicious anti-minority and anti-immigrant messaging and to pur- After the success of Russia’s interference in chase at least $100,000 worth of anti-Clinton the energy grids of its satellite countries, we advertising.

12 Of Counsel, December 2020 Zuckerberg and Facebook were slow to • Web platforms with more than one million recognize the gravity of the Russian threat. In users would be compelled to publicly dis- the immediate wake of President Trump’s sur- close the names of individuals and orga- prise victory, Zuckerberg said it was “crazy” nizations that spend more than $10,000 to believe that his company’s platforms had on election-related advertisements. been exploited by a foreign adversary. But • Providers would be required to establish a after evidence of Russia’s skullduggery public database and display digital copies mounted, Zuckerberg has acknowledged that of all relevant ads. Facebook has a responsibility to atone for its • The database would also have to house all missteps. “electioneering communications,” including a description of its targeted audi- Russia’s depravity runs deep. The GRU’s ences, its view count, the exact timing of hacking division, the cyber thieves that its placement, its price, and detailed con- experts suspect were behind the original DNC tract information. breach, goes by the obnoxious moniker Fancy Bear. Either Zuckerberg gets Fancy Bear to And that’s just the beginning. The dra- retreat to its cave or he runs the risk of watch- conian antitrust fines and taxes that the ing his company and other tech giants get European Union has begun to assess against devoured by federal regulation—the scenario the FAANG companies could find their way that Silicon Valley has managed to avert all across the Atlantic. It’s entirely plausible to these years. suggest that Web companies could be looking at a regulatory regimen not unlike that Zuckerberg’s tour of the country demon- imposed by the Federal Communications strates that he and Facebook are beginning Commission (FCC) on television and radio to understand the implications of Fancy broadcasting in the 1950s and ’60s: a “fair- Bear’s mauling. They are publishers—not ness doctrine,” requirements for community cowboys—who accept, it would seem, at least service and public-spirited broadcasting, some of the responsibility of legacy media. an insistence on children’s educational pro- Now the issue becomes: How much of a gramming, prohibitions against “obscene” or leadership role is Facebook willing to take “indecent” material, et al. in finding real solutions? And how far will it go in disclosing its own corrective actions? Robert Corn-Revere, a partner at Davis Without concerted disclosure and transpar- Wright Tremaine who specializes in com- ency, Zuckerberg could become, in the pub- munication and information technology law, lic’s eye, just another robber baron. In 2011, notes that, “People who worry about large, Facebook argued before the Federal Election unaccountable tech companies should worry Commission that its ads were “small items,” more about large tech companies subject to like campaign buttons, and should be exempt the control of politicians and regulators. In from campaign disclosure rules. that regard, the experience of Europe—not to mention our own history with regulating Facebook’s public affairs and communica- communications technologies—should serve tions strategy is only now evolving. The pha- as a cautionary tale.” lanx of Washington lobbyists they’ve retained rivals Exxon–Mobil and dwarfs the big Wall Veteran technology policy lobbyist Kim Street firms. Yet so far, they’ve all stayed mum Koontz Bayliss of Perry Bayliss adds, about Facebook’s strategy. “How tech companies respond to mount- ing Congressional criticism is extremely The potential regulations faced by important and will dictate how policymak- Facebook and others are not insignificant. In ers treat them going forward on everything fact, these regulatory ideas have begun to per- from antitrust to zero-rating. The more colate in policymaking circles: integral these companies become to the

Of Counsel, Vol. 39, No. 12 13 lives of average Americans, the more seri- anti-anything that smacks of the ruling class, ous the threat. They must work harder to with Big Tech at the top of the list. Many educate policymakers about how they are Americans—and not just Trump voters liv- conducting their business.” ing in small towns—resent tech’s ubiquitous presence and prodigious moneymaking. The FAANG companies must also work They would applaud any leader slapping it harder at communicating the economic, down. educational, and cultural benefits that technology brings every minute of every day to This anti-elite populism is likely to sur- American life—and not just to policymak- vive Trump’s tempestuous presidency. Mark ers and opinion leaders, but to everyone. Zuckerberg and his Silicon Valley compatri- They need to enlist grassroots and grass- ots are facing some serious hurdles. It’s not tops allies that can take their message to just Fancy Bear that lurks on their pathway. those parts of America that feel left behind in the information revolution. Averting IP Debacles: A “Lessons They need to ramp up their corporate Learned” Checklist for Smart social responsibility programs and rededi- cate themselves to bridging the Technology Companies Divide that separates the upwardly mobile from those struggling to get ahead. Too Intellectual property (IP) challenges for often, that gap makes rural and less fortu- U.S. corporations can take many forms. nate communities feel abused and forgot- Sometimes it can be failing to recognize the ten. If technology has separated those with threat of a cyberbreach. 20th century skills in a 21st century workplace, it must now help bridge that gap so At other times, it can be ignoring copyright that anger subsides and reason—and infringement litigation until it’s too late, or hope—return. neglecting to track down a competitor’s patents, or foot-dragging while filing for trade- When Americans living along the East or mark protection, or not being zealous enough West Coast hear “robotics” or the “Internet in preserving trade secrets. of Things” they look forward to the pros- pect of mastering new technology. When a The ultimate lesson to learn? Few issues rural or at-risk American hears about exotic can injure an established corporation or breakthroughs, they fear their jobs and way bring down a promising venture more quickly of life are being threatened. than mishandled intellectual property (IP) concerns. Beyond the specter of added taxation and regulation, there is another bête noire Look no farther than Apple, which in 2017 with which the Big Five must grapple. Part was forced by a Texas jury to pay $502.6 of it is a byproduct of the Technology million in damages after it ruled that iMes- Divide but in truth its roots run much sage, FaceTime, and other Apple offerings deeper. infringed on VirnetX’s patents in a dispute that took eight years to resolve. Trump’s victory heralded a new kind of American populism—a contempt for big Or look at Google, which recently lost its money and big institutions that is far more initial appeal on a multibillion-dollar copy- belligerent than its predecessor of a cen- right infringement case against Oracle that tury ago. The radical nationalist movement could have profound repercussions on the championed by former Trump Svengali Steve technology software industry if the ruling Bannon is not just anti-establishment; it’s stands.

14 Of Counsel, December 2020 Staying on top of emerging IP trends, side- brought by others, both in terms of hard stepping IP potholes, and embracing proac- costs in the form of legal fees and the like, tive communications measures can determine and soft costs in the form of unwanted busi- a company’s ultimate success. A company’s ness disruption and negative publicity. It is CEO and board members have no choice but critical, therefore, for companies to work with to accurately assess their IP risks—and take internal or outside IP counsel to ensure that the necessary steps to mitigate them. appropriate levels of attention are paid to IP issues in a timely manner, especially when It’s apparent from such recent stud- it comes to assessing the risk of receiving ies as The 2017 Global Patent & IP Trends an infringement claim because of a specific Indicator that IP activity has significantly product or service offering. increased worldwide, with most new filings coming from the U.S., Europe, and China. “As with most things, being proactive when it comes to IP issues can help reduce the It’s also evident that corporate counsels impact of potential business problems arising are worried about the potential effect of out of unforeseen events like an infringement the European Unitary Patent (UP) and its claim,” he says. Unified Patent Court (UPC), both of which are aimed at streamlining patent filings. With Kroub’s warning in mind, what com- Officials are trying to create a single pat- munications lessons can companies imple- ent across the EU that can be administered ment to reduce their IP risks and create a by a single court, thereby saving money and smarter internal and external approach to IP? aggravation. • Give IP the priority it deserves. The higher The UP and its court affiliate were slated the stakes, the more important the IP due to go into effect in 2018. But both have been diligence. Don’t wait until the transaction delayed, in part because of the U.K.’s Brexit is practically finished to identify com- vote and in part because of misgiving leveled petitive patents or begin considering the by Germany’s Federal Constitutional Court. exposure of your proprietary offerings. Identify key risks and vulnerabilities on The EU controversy illustrates the tension day one and constantly update the list. surrounding patent rules and why IP remains • Give every division a stake. Given con- such a big priority in corporate suites. fidentiality, not every member of your Companies, even those in brick-and-mortar executive team can be part of the IP industries, have little choice but to exercise exercise, but every division ought to be. IP due diligence. Indeed, identifying IP assets Legal, marketing, communications, pub- and confirming their availability is part and lic affairs, and IT should all be part of parcel to any business transaction, maintains your IP task force. With the potential Gaston Kroub, a founding partner of Kroub, of artificial intelligence (AI) to revolu- Silbersher & Kolmykov PLLC, an IP bou- tionize labor-intensive IP administrative tique firm in New York. tasks, shorten decisionmaking processes, and increase the ability to analyze large “Whether it’s in the area of patents, trade- amounts of data, companies now have marks, copyrights, or trade secrets, the evolv- the ability to put strategic decisionmaking nature of IP law demands that companies ing first, without worrying that there are of all sizes take a proactive approach to deal- too many cooks in the kitchen. ing with IP issues,” says Kroub, the author of • Protect your own “state secrets” first. If an Above the Law article on IP trends. there isn’t consensus on those patents, trademarks, service marks, et al., that are “Of special concern are the high costs of integral to your continued marketplace defending against intellectual property claims success, you need to develop it in a hurry.

Of Counsel, Vol. 39, No. 12 15 Your untouchables list—and the protec- monitoring. Regulatory and litigation tion action that list demands—needs to risks vary from locale to locale. be understood by every top- and junior- • Keep it simple. There are few issues more level staffer in the company. Look at the complicated than IP law. You will be wise March 2018 suit filed by Match Group to remember Proverbs 17:28: “Even a against dating app Bumble, which was fool is thought wise if he keeps silent, and founded by former employees of Match’s discerning if he holds his tongue.” Most Tinder dating service. Trade secret misap- non-IP lawyers on your team will nod in propriation allegations stand out, espe- agreement with your strategy rather than cially when you note that features of risk asking what they fear is a stupid ques- Bumble allegedly mirrored ideas devel- tion. Don’t be afraid to “dumb down” the oped for Tinder right before the employee issues so that you are certain everyone severance agreements were up. on the team gets them. Remember, IP is • Get some credit for your own IP. If it traditionally the combination of legal would further your business objectives and scientific training. But IP litigation to give wider visibility to your trade- and is fought in the worlds of business, law, service marks and other intellectual prop- politics, and communications. erty, then engage marketing, communications, and advertising in some smart In today’s hyper-competitive business cli- outreach. Such visibility could pay divi- mate, no company can afford to fall behind dends for a deal down the road or just the IP curve. Better to take to heart Benjamin now in the planning stages. Franklin’s adage that “By failing to prepare • Make sure you know what’s going on you are preparing to fail.” ■ overseas. If going global in any way is part of your business plan, then your company needs to adopt a global approach to —Ian Lipner IP strategy. If your company applies for single patent protection in many different Ian Lipner is Senior Vice President of LEVICK, countries, then you need to be advised on a crisis communications and public affairs country-specific processes and challenges. agency representing countries and companies As the EU’s current confusion demon- in the highest profile matters worldwide. Reach strates, the IP field requires constant him at [email protected] or (202) 973-5312.

16 Of Counsel, December 2020 says Ross Fishman, CEO of Chicago-area– based Fishman Marketing. “This [younger Cultural Changes leadership trend] has led to the adoption of new ideas and fresh approaches,” he adds, “a willingness to try new things, rather than revert to ‘but that’s how we’ve always Continued from page 2 done it.’ Younger leaders are more diverse and less patient. Firms run by diverse of other firms. The growth of lateral move- 40-somethings have a different spirit and ment has helped with this.” attitude than those led by 65-year-old white men.” Just as a new lawyer or practice group join- ing a law firm brings in new ideas and a foun- A true commitment to collaboration has dation from which to make that comparison, also been a recent development affecting and so too do the influx of other professionals, enhancing law firm culture, although some which is of course a trend that grew during firms cling to old ways but they shouldn’t, the last decade. Lampert says: “Working and interacting with other attorneys on new projects in and out- One important change in the cultural equa- side of your practice area can be critical to tion can be seen in “the rise of the professional one’s enjoyment of the work and the people. who doesn’t happen to be a lawyer. (Don’t Many firms haven’t removed the silos yet, use the term ‘non-lawyer’ – that’s forbid- which can create an isolated and unsociable den!),” says Deborah McMurray, the founder, environment.” CEO, and strategy architect of Dallas-based Content Pilot, a full-service strategy, design, content, and technology agency. “Law firms DEI Serves as a Driving Force have employed talented executives in finance, accounting, IT, marketing, HR, diversity, and more for decades, but in the last 10 years I Observers of the profession say that histor- have seen them sought after, respected – even ically many or even most private practitioners admired – for the acumen they bring to the wouldn’t give much attention to workplace table.” culture; they’d simply join a firm, adapt to its norms and ways of working, and put up Gerry Riskin, the founding principal and and shut up. But when the need for diversity, chairman of the law firm consultancy Edge equity, and inclusion began to grow, cultural International with headquarters in London, awareness did as well. “That’s when people agrees. “[One major change is] the enhanced said, ‘We need to address our culture,’” Clay willingness to utilize support professionals says. “You have to define it, decide what it is beyond pure administration and marketing you have a problem with, and then do some- to things like: pricing, project management, thing about it. The do-something-about-it and business development including sell- part has been and still is almost nonexistent ing.” This, he adds, fosters the “willingness in most firms, in my opinion.” to adopt” that he sees as the foundational, underlying cultural transformation within Clay believes the foundation of a firm’s law firms over the last decade. culture is a set of non-negotiable core values, which usually include collaboration, respect In a similar personnel vein, law firms for the individual, courtesy, and civility to increasingly embrace younger leadership, everyone … and the list goes on. But—and for one reason because younger lawyers this is by no means breaking news—at some tend to help firms keep pace with advance- firms, rainmakers receive special treatment. ments in and application of technology, When they violate the firm’s agreed-upon

Of Counsel, Vol. 39, No. 12 17 cultural values, leadership simply looks the “One of the most significant challenges all other way for fear of seeing this profit-maker law firms face today is finding and keeping walk out the door. the firm’s best people,” Lampert says. “[Law firm leaders need to] “think about the firm’s “A lot of times I ask managing partners, cultural branding: Law firm culture and law ‘Are your core values non-negotiable?’” Clay firm marketing need to be more intertwined adds. “‘If I survey people, will I see that some to recruit, hire, and retain the best talent, not lawyers with big books of business get away to mention to help in client acquisition.” with trampling on your core values?’ When I do this, they often hang their head and say, The increased concern and support for- ‘Yeah.’ Leadership has to enforce those core ward-thinking firms are demonstrating in values all the time – sometimes this means the physical, emotional, and mental health hard conversations with people, or more.” of the attorneys and staff goes a long way toward attracting and retaining a strong and As Clay suggests, a keen focus on diversity, talented workforce. Riskin believes the cul- equity, and inclusion has clearly emerged as tural embrace of well being, as it’s called, is one of the most important improvements in a very important development. He points to the legal workplace but, as has been reported the work of the ABA’s National Task Force in these pages and many others, law firms on Lawyer Well Being. This committee “seeks needed a strong push in this direction. to create a movement towards improving the health and well being of the legal profession,” “This has been primarily driven by cli- according to the ABA’s website. And the work ent demands, particularly among larger it does and recommendations it offers “are companies that have DEI as a core value,” directed to various legal stakeholders such Fishman says. “Law firms have been form- as judges, regulators, law firms, law schools, ing committees to talk about this issue since bar associations, professional liability car- the early 1990s, and many efforts seemed riers, and lawyer assistance programs, all in well intentioned, but the real change hap- an effort to change the culture and discussion pened after clients started threatening to surrounding attorney well being.” pull their sizable legal business from firms that failed to show actual improvement in As we look into the near future, specifi- their numbers.” cally at the changes the COVID-19 pandemic created that will become a part of the “new normal,” law firm culture will continue to Enhance Culture to Curb Attrition evolve. Of Counsel will explore this further in our coverage of the profession in 2021 but McMurray offers this insight into our post- Given the tight competition for stellar pandemic workplace: “There will definitely talent in today’s hiring landscape, a posi- be less formality up and down the firm – with tive culture that embraces mutual respect senior lawyers and clients’ senior execs work- and shows appreciation for good work and ing from home much more frequently. And patience for minor missteps in service delivery there will be less face-to-face everything even plays a bigger role in both retention and hir- post-vaccine. I think firms will have fewer in- ing. And when a law firm cultivates such an person events, but when they do, they will be atmosphere and maintains positive firm-wide lollapaloozas!” ■ morale, it needs to let law students and lateral attorneys know. —Steven T. Taylor

18 Of Counsel, December 2020 clerk and then a paralegal. These guys were Of Counsel Interview so generous, so friendly, and yet they were all brilliant. And of course there were women— women were primarily just coming into the profession at the time and when I say “guys” Continued from page 24 of course I mean both genders. I had a great experience working in a big Century City law office. I saw the best of the best. Reno, and other topics. The following is that edited interview. Again, they were incredibly generous to me. In 1988, I made $17 an hour. They were social; Of Counsel: Matt, why law? What made they were very generous in terms of dinners; you want to become, or inspired you to they had Dodgers tickets that they would give become, a lawyer? me all the time; and frankly, I spent more time working for them than I did in school. Matt Addison: The first book I ever received The senior partner wrote me a letter of rec- was an American history text from my mom ommendation to law school, and I thought, who was a middle school teacher initially. I That’s where I want to be, with people of this read it as a four-, five-, and six-year-old kid caliber in my profession. and looked at the pictures. That’s how my mom taught me to read. I’ve been in love with civics, government, and history—and eventu- Road to Litigation via ally international relations—from that time Thanksgiving forward.

I also had the benefit of some excellent OC: Why did you decide to become a experiences. My mom was the office manager litigator? for a law firm for 19 years and, had times been different, she would have been one of MA: Well I stumbled into this clerkship the best lawyers. But she was relegated to that with McDonald Carano. A good friend of role, kind of a private investigator and man- our family was a partner in the firm, and ager. I worked in the firm. I did everything before my first semester of law school was from revamping their closed filing system to over, I came home for Thanksgiving. I was ultimately summarizing depositions for the invited to dinner at their home and went there lawyers. I really enjoyed the interaction with and he said, “What are you going to do this the lawyers. coming summer?” I told him I had no idea. He said, “Well, why don’t you apply to the For instance, I wrote a paper in high school firm?” I thought that clerkships were only for and one of the lawyers helped me with it. It second years, but I applied, and I interviewed was on immigration issues at the time. He was with a man named Larry Hicks who is now a a Hispanic guy who I liked very much, and senior federal court judge. he was so intellectual and forward-thinking compared to most people that I had discussed Larry had been the district attorney in these issues with. I was very impressed with Washoe County before that. In fact, I recalled him. while he was running in the late 70s for re- election he and his brother actually knocked Then in undergrad I stumbled into a job on my door. I opened it. My parents were not in Century City, California for a law firm home so I talked with him and his brother. that was seven guys who had broken off of And, I remembered that when I interviewed a major Chicago-based bankruptcy law firm. with him for the clerkship. I got the clerkship, I started there as a courier and became a file was invited back for my second summer, and

Of Counsel, Vol. 39, No. 12 19 Larry was my mentor. If he’s not the most what comes to mind? And maybe you could accomplished litigator in Nevada, he’s got to summarize it a little bit. be in the top five or 10. MA: There is one case that was very forma- I’ve never had another job. I have worked tive for me, and it is illustrative of the kind of at McDonald Carano ever since the summer folks I’ve had the pleasure of practicing with. of 1989. Larry was really influential for me in I remember it fondly to this day. I was about a terms of what I wanted to do because he had four- or five-year lawyer and had a California been the district attorney at Washoe County. license. One of our construction clients got in At the time he was the preeminent plaintiff’s trouble across the line in Truckee and I went personal injury attorney in Reno. up and handled the case for one of our senior partners, John McCune, whom we called Mr. One day I was walking by his office and he McCune, no one called him John. But what said, “Matt, come in and sit down so I walked happened in the case was that they made a in his office. He was on his speaker phone complicated ERISA preemption argument of and he said, “Listen to this.” And all of a California state law, and even the California sudden over the speakerphone I heard, “Mr. state judge didn’t understand it at first. Hicks this is Lieutenant Colonel William McAndrew in charge of Marine One. Hold The judge ripped me, and my client got me for the president of the United States.” in the parking lot and screamed at me that I had lost them $800,000 because I hadn’t It was George Bush Sr. calling to nominate argued the correct things. Well, long story Larry to the federal court. I was just stunned. short is, after about six weeks we got the deci- George Bush got on the phone and said, sion and we won. The most important part “Larry, George Bush here, how are you? I of the story was, about three or four weeks haven’t had the pleasure of meeting you but it into it, after I had been taking a lot grief is my pleasure to nominate you to the United from the client, the client called Mr. McCune States Federal Court.” and wanted him to fire me. They were on the speakerphone and they said, “In this case, we It just went on from there. It was this amaz- need the first team and Matt Addison is the ing conversation. Ultimately Larry’s nomina- second team. We want him replaced.” tion was pulled when Clinton beat Bush, but then Larry was re-nominated a bit later and Mr. McCune said, “Bob, Matt Addison ultimately served as a federal court judge and is the first team and as long as you’re work- is now a senior court judge. ing with this law firm you’ll work with Matt Addison or no one else, and he will do you Larry gave me my first trial within two right.” The client backed down, stayed with years and was very, very generous with his me, and I won. I represent that client to this time and his investment in me. I tried a case very day.” with him at one point and I was hooked. After that, it was my destiny. I attribute my OC: To shift gears, Matt, what bothers you choice of practice area to my direct involve- about being a lawyer? What do you dislike ment with Larry Hicks. about the legal profession?

MA: It’s the stress. When you asked me Tough Case, Tough Client why I became a litigator, it was partly because I was naïve—very naive. I remember the first trial I did. My knees were hitting both sides OC: When you think of a case that was of my pants I was shaking so badly and I had particularly important or intellectually stimu- sweat rings down to my belt. It’s only gotten lating or that you’ve just felt very good about, more stressful as the years have gone on. Now

20 Of Counsel, December 2020 I have very significant cases with very signifi- I got off of a call with [an opposing attor- cant money on the line and therefore very ney] in Las Vegas just before I got on with significant stress. To say that the law is a jeal- you, and it’s a very contentious case, but we ous mistress—it’s true. It totally encompasses have treated each other as gentlemen, pro- your life. I’ve always been an athlete and a fessionally, civilly throughout the process. martial artist, a hunter, had a lot of outside I think both of our clients will get a better interests, and a lot of them have gone by the outcome as a result of our dealings. The ethi- wayside, especially now with the additional cal rules entrust so much to the lawyers, and responsibility [as the Reno office managing I really enjoy that because, in the hands of partner]. I would say that’s the biggest nega- good people, that makes the system work. tive from a practice standpoint. OC: What has been the most difficult chal- And there’s another thing. There is a state lenge you’ve faced and what brings you satis- district court judge here in Reno who ruled faction in managing the attorneys in the Reno against one of the major hotel-casinos on office while also maintaining your practice? two occasions. So the billionaire owner of the hotel-casinos just recently put up hun- MA: The most difficult challenge has been dreds of thousands of dollars to defeat convincing some of the more traditionally this judge, who was one of our very best— minded attorneys to focus and make the firm ethical, fair, intelligent, all those things—and very forward-looking. I was fortunate enough he lost re-election. He was defeated by a per- to have an opportunity to remodel the floor son with a lot of money who could influence that we’re on, condense our space, and save an election and did it. It’s a travesty. So jus- our firm a significant amount of money, but tice is not always perfect and the system isn’t it wasn’t necessarily monetarily driven. It perfect because it’s run by humans who are was that I know that in the future brick and inherently imperfect. And it hurts your soul mortar—I knew this before COVID—that when you commit your life to this and then brick-and-mortar–based operations wouldn’t things like that happen because it’s not fair necessarily be the most productive. and it’s not right and there’s nothing you can do about it. A lot of our younger folks are so technologically capable, and there are so many women who are mothers as well and are excellent When Civility Prevails lawyers who want flexible schedules. I knew that that was the future of the practice and I was able to change our office arrangement OC: I appreciate that answer. What do you in Reno to facilitate those kinds of things. like about the legal profession and being a COVID has [underscored] where the future lawyer? of the practice of law will be going, and we were ahead of the curve. MA: I like all of the latitude that being a lawyer ethically gives you. And by that I So that’s been the most satisfying thing for mean you are entrusted as a lawyer with so me because there was considerable pushback much ability to make the system function well from some of the attorneys who preferred and fairly. When you have a case with another the dark wood-paneled offices and the big excellent lawyer, it always works out well, and war rooms and all of those kind of tradi- by “well” I mean fairly. A professional, cour- tional logistical setups that law firms have teous, and an intelligent lawyer on the other come to be known by. But we were able to side may be a recipe for a heck of a battle but become far more efficient. We got rid of 70% it’s also always a recipe for a fair resolution. of our paper; we went to smaller offices and When the process is fairly conducted between office-sharing; and we invested significantly the lawyers, it works. That is really satisfying. in technology. Fortuitously, COVID hit as we

Of Counsel, Vol. 39, No. 12 21 were completing that process, and it’s made results from gaming. We have transitioned our transition to a virtual practice almost Northern Nevada from a divorce capital and painless. gaming center to this remarkably advanced technological place. When COVID subsides OC: That’s both a challenge and a success and a vaccine is available I see our city and story. region as absolutely exploding. And, I want us to be at the forefront of that. We have fan- MA: Thank you. It was a significant tastic lawyers, and we’re ready. Our business amount of luck. I can’t take credit for it, but has never been better. I knew in my heart that’s where the practice was going so I pushed it. I took a lot of grief We have been the extraordinary beneficia- personally as a result, but my predictions ries of this influx of highly intellectual, highly have been born out and my planning has been educated, highly motivated folks and busi- validated. And that has been the most satisfy- nesses from California that have rejuvenated ing part. Reno and really brought it forward.

OC: That approach that you took also With all these businesses, we have people aligns with the way that Nevada and Reno who want modern transportation and great have changed and become more technology- schools for their kids and great jobs. Yet, centric. How do you see the future of both they love the things we have to offer in terms McDonald Carano and Northern Nevada of the outdoors and the proximity to Lake moving forward in this particular realm, in Tahoe and so on. This massive influx in, I’d the technology space? say the last eight to 10 years, has just set up the community for enormous growth, and yet wisely planned growth and a technologically Reno on the Rise oriented future. It’s not just because I’m from Reno and love Reno and will be in Reno my whole life and will probably only have one MA: I’m so optimistic. I say this to every- job, at McDonald Carano, my entire career; one who asks me and a lot of folks do. I see it’s that I honestly see things that bright for Northern Nevada as bubbling right beneath Northern Nevada. ■ the surface during COVID. For instance, only 10% of our revenue in Northern Nevada —Steven T. Taylor

22 Of Counsel, December 2020

Wolters Kluwer Of Counsel Distribution Center 7201 McKinney Circle Frederick, MD 21704

Of Counsel Interview … Forward-Thinking Litigator and Partner Helps Nevada Firm’s Reno Office Grow and Flourish

Over the last decade or so, several second- into [the] future with a strategic vision aimed tier cities in the American West have been at distinguishing the firm as a bold innovator seeing their populations increase, businesses in the legal industry.” expand, tourism rise, and levels of technological sophistication grow. Places like Boise, Addison centers his practice on commer- Idaho; Bend, Oregon; and Missoula and cial litigation and has run up a stellar track Bozeman, Montana have been booming— record in representing clients in significant pre-pandemic at least, and many residents of bench and jury trials in city, state, and fed- these cities say they will bounce back when eral courts, and appeals before the Nevada COVID clears, and they will continue to Supreme Court. He’s also the recipient of thrive. Perhaps no metro area is positioned as numerous honors and recognitions by promi- well as Reno, Nevada. nent publications and ranking agencies and serves as an active member of his community. The legal market in Reno has also made great strides, and the Las Vegas–based law Recently, Of Counsel spoke with Addison firm of MacDonald Carano seems to be about his path into the legal profession, an leading the way. Born and raised in “The important case he litigated and won, his likes Biggest Little City in the World,” litigator and dislikes about the profession, his steward- Matt Addison is about to complete the third ship thus far of the Northern Nevada office, year of managing the firm’s Reno office and the city in which he’s been a lifelong resident, has been pivotal in its market ascendancy and technological innovation. As his website bio puts it, Addison is “helping to guide the firm Continued on page 19

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