20140428-NEWS--0001-NAT-CCI-CD_-- 4/25/20147:50PMPage1 ©Entire contentscopyright2014byCrainCommunicationsInc.Allrightsreserved ment Corp Michigan EconomicDevelop- nization affiliatedwiththe funds. been abletoraisematching young companiesthathave invest $250,000instartupand ship atDetroit’s nology-based entrepreneur- managing directoroftech- CEO 1, accordingtoPresidentand town Detroit,beginningMay indown- Guardian Building day foranofficeinthe Fund 2.0,signedaleaseFri- Michigan Pre-SeedCapital Page 33 a crusadeforcaretaker, Belle Islefountaincleanup Page 29 compound pharmacyrules, Legislators mayenactnew of metroDetroitrealestate The upsanddowns investors forhi-defdevice Headset startupseeks downtown Detroitoffice Invest Michiganleases
NEWSPAPER www.crainsdetroit.com Vol.30,No.17 Inside This JustIn Page 3 Invest Michigan The 2.0fundwilltypically Previously, Moretwas Charlie Moret . — TomHenderson that willrunthe TechTown , aneworga- . Page 5 line, clothing to expand Lion works Ex-Detroit . pany lostthecontract.Itwasbeat Bloomfield Township-basedcom- gate, 850,000-square-footterminal. liage thatisthebackdropof26- tain allofthepottedplantsandfo- groom, cleanandgenerallymain- the landscaping.Theywater, Airport’s comes tothe contract over$40Kdifference Planterra loseslandscaping Biz tiedtoLibyawinsairportdeal lished inMarch.Thestudyesti- to an subject toautomation,according even associatelawyers—are real estateagents,cabdrivers— transit andhealthcareworkers. gistics, manufacturing,mass changed jobdutiesforcertainlo- already ekedoutorradically and artificialintelligencehave mans. pumping, oxygen-breathinghu- previous functionsofblood- bots increasinglyperformsome pallets, alocalexampleofhowro- laborers inmanagingthecash to $14billionofU.S.currency. room tothevault,whichishome time, toandfromthecounting often asmuch$8millionata los movewrappedpalletsofcash, Chicago cash. be trustedwithlargesumsof inventory —and,sofar,caneven run aconveyorsystemortrack Fear notthe’bot? But aftersixyears,theWest Every week, As robotstakejobs,expertsaskifhumanswillkeepup During thenext10to20years, Advancements inautomation The hi-losreplacedtraditional At the A robotcanscrewinabolt, CRAIN’S DETROITBUSINESS CRAIN’S DETROITBUSINESS B Oxford University B North Terminaltocarefor Y Y in Detroit,automatedhi- A Federal ReserveBankof D MY USTIN Detroit Metropolitan Planterra Corp. H AIMERL W ALSH report pub- staff APRIL 28–MAY4,2014 while aworkerpackagestheoutput. A FanucAmericaCNCmachineloadsandunloadsbrakecomponents ers learntoembracetherobot whether organizationallead- force? Southeast Michigan,work- hood oftheAmerican,and but isitthreateningtheliveli- than inanypointhistory, curring atarapidpace,faster U.S. workforce. place nearlyhalfofthecurrent mates thatrobotscouldre- ding ontheairportwork. and theU.S.divisionactuallybid- ty’s legalteamlookedatRentokil Airport Authority public affairsforthe contract. was $40,000overthethree-year Moammar Gadhafi. has tiestolateLibyanleader company division ofBritishmultinational not byaU.S.competitor,but ATTORNEYS ATLAW Experts saythatdependson Technological changeisoc- Michael Conway,directorof The differenceinthetwobids Rentokil InitialPLC , saidtheauthori- Wayne County (see ouradonpage2) Intellectual Property World Rocking the , which ery. main incontrolofthediscov- tinues toevolve. processes astheeconomycon- ing them,andadaptingwork bots, repairingandmaintain- process: programmingthero- ing orservice-providing right partsofthemanufactur- and shifthumanjobstothe Shane Pliska In otherwords,humansre- grown itfromasmallretailshop ed Planterrainthe1970sandhas Pliska, whosefather,Larry,start- tive May1,wasaslaptoShane sible bidder.” the lowestresponsiveandrespon- them consideringthattheywere The lossofthatcontract,effec- COURTESY FANUCAMERICA See Robots,Page36 recommend no reasonnotto team reallyhad management panies. Sothe debarred com- tratively ly oradminis- ment U.S. StateDepart- them isonthe “Neither of ’s statutori- WNJ.com the airport’slargerMcNamara point todobusiness(there).” of ourlocalairport.It’sarealpride “They don’tcareatall.We’reproud said Pliska,referringtoRentokil. foot greenhouse. ties inPlanterra’s11,000-square- dens aswellthrowslavishpar- walls andelaborateinteriorgar- The companycreateslivinggreen clusive suitehotelinLasVegas. the as enue. Ithassuchhigh-endclients ness with$5millionayearinrev- into alandscapeandeventsbusi- Planterra continuestoservice “They don’tcareaboutDetroit,” Somerset Collection Mansion atMGMGrand
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Page 2 CRAIN’S DETROIT BUSINESS April 28, 2014
MICHIGAN BRIEFS Grand Rapids malls rebound by 3.95 percent next academic year, The AP reported. with increased capacity HopCat exports craft beer cool to land of Hoosiers With the rate change, the resi- Here’s a good sign that Grand dence hall double-room rate for Rapids retail has rebounded from The rapidly expanding HopCat craft beer bar MiBiz broke news in February that Sellers was undergraduate students will in- the Great Recession: For the first chain — already set to clink its first bottles in De- tapping investors to help fund the launch of 12 to 15 crease $144, to $3,780 per year. The time in years, its malls are at or troit this fall — is branching out beyond Michigan HopCat beer bar locations in Michigan and nearby school said its unlimited dining near capacity. and into the Hoosier State. states. The company earlier announced plans for a meal plan will increase $204, to “We’ve had some great momen- Grand Rapids-based BarFly Ventures LLC last week HopCat location at 4265 Woodward Ave. in Midtown $5,374 per year. tum in the past couple of years,” detailed plans to launch a fourth HopCat restaurant that is expected to open in October. Ⅲ After record levels of ice cov- Andrea Lukens, Philadelphia- and bar in Indianapolis, MiBiz reported. According to state records, Sellers set up HopCat er on the Great Lakes, one of the based director of leasing for Penn- The $2.5 million bar operation, the company’s LLCs with the cities of Ann Arbor, Detroit, Chicago Shepler’s Mackinac Island Ferry sylvania Real Estate Investment first venture out of state, is expected to open in ear- and Indianapolis in their names. boats finally took a stab at making Trust, the company that owns ly August in Indianapolis’ Broad Ripple Village, Last year, EL Brewpub LLC, a wholly owned sub- it to the island from the ice-bound Woodland Mall in Kentwood, told one of the city’s cultural districts just north of sidiary of BarFly Ventures that does business as St. Ignace harbor on Thursday. In MLive.com during a visit to West downtown. HopCat East Lansing, also received funding from five hours, the boat, fitted with Michigan. “Broad Ripple’s history as a place with an artistic state-backed mezzanine fund Grow Michigan LLC. ice-breaking capabilities, made it Woodland is at 99 percent occu- heart and musical soul made it the ideal area for us BarFly Ventures operates a handful of bars and about one mile through the 1 to 3 pancy for the first time since its lo- to open our first HopCat outside of Michigan,” restaurants in West Michigan, including Stella’s feet of ice clogging the harbor, cal competitor, Grandville’s River- BarFly owner Mark Sellers said in a statement. Lounge, McFadden’s and Grand Rapids Brewing Co. in MLive.com reported. The plan is Town Crossings, opened in 1999. BarFly projects the new location will create 100 Grand Rapids and HopCat locations in Grand to ensure the path is wide enough The Grandville mall now has a 98 jobs. Rapids and East Lansing. to remain open. “It doesn’t sound percent occupancy rate. like much, but from where I’m sit- Centerpointe Mall, across the ting it’s a big victory,” said Chris But there may be bigger chal- space on the second floor of the 99 federal dredging of the Muskegon street from Woodland, is at full oc- Shepler, ferry service owner. lenges on the horizon, not the Monroe building. It is scheduled Lake port by finding a new use cupancy for the first time in least of which is potential compe- to open in June. Worklab was de- that would boost shipping, such as Find business news from decades after going through a re- tition from an 80-store outlet mall veloped based on research from agricultural products or industrial around the state at crainsdetroit cent “de-malling” that essentially going up in Byron Township. Stay office furniture manufacturer use. .com/crainsmichiganbusiness. rid the development of its indoor tuned. Steelcase Inc., and the project will Ⅲ Michigan State University Sign up for Crain's Michigan space. The newly configured Cen- utilize Steelcase technologies. trustees voted to raise room-and- Business e-newsletter at crains terpointe, which now lets shoppers Ⅲ Consumers Energy is commit- board rates for the school’s dorms detroit.com/emailsignup. enter stores from the parking lot, MICH-CELLANEOUS ted to helping find a new use for has retailers clamoring for leases. the site of a coal-fired power plant Mike Murray, principal at Ⅲ Worklab by Custer is develop- in Muskegon that’s scheduled to Grand Rapids real estate broker ing an alternative office space en- CORRECTION close in two years, according to Colliers International, says he has vironment for a newly renovated Ⅲ A story on Page 1 of the April 21 issue should have said the The Muskegon Chronicle. As part been writing offers for Center- downtown Grand Rapids office Chaldean American Chamber of Commerce provides social services of plans to decommission the B.C. pointe for full price and getting de- building, MiBiz reported. Work- from Southfield and Sterling Heights, rather than Dearborn and Cobb plant, the Jackson-based util- nied because others are willing to lab recently inked a deal to create Sterling Heights. ity said it will work to maintain pay more. 10,000 square feet of co-working
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April 28, 2014 CRAIN’S DETROIT BUSINESS Page 3 Headset startup sights success Inside Avegant seeks investors for hi-def video technology
BY TOM HENDERSON CRAIN’S DETROIT BUSINESS
Avegant Corp. won’t have its video headset ready for market until at least year’s end, but its founders are hoping the sale last month of a competitor for $2 bil- lion will move the Ann Arbor startup from a “who’s ProNAi closes on state’s that?” to a “who’s who” with potential investors. largest VC round, Page 23 The $2 billion purchase March 25 of Oculus VR Inc. — an Irvine, Calif.-based maker of virtual-reality Company index goggles for video gamers — by Facebook has drawn These companies have significant mention in this investor attention to week’s Crain’s Detroit Business: head-mounted technology Association of Corporate Counsel ...... 17 first opened by Google Attorneys Title Agency ...... 14 Augment Ventures Management ...... 36 Avegant says its headsets Glass last year. can be used to watch any Avegant ...... 3 Avegant’s headsets are video source on mobile Barbara Ann Karmanos Cancer Institute ...... 6 devices. for gamers, too, but, un- Bedrock Real Estate Services ...... 3 like Oculus devices, they Belfor Holdings ...... 4 can also be used to watch any video source on mobile Bernard Financial Group ...... 3 Blaze Contracting ...... 10 devices, including streaming video from Netflix. Business Leaders for Michigan ...... 28 The headsets deliver high-definition images directly Certified Restoration Drycleaning Network ...... 15 to the retinas — the brain is tricked into thinking it is Colliers International...... 37 looking at a screen out in front of the viewer. Cooper-Standard Holdings ...... 19 Core Partners Associates ...... 37 “The sale of Oculus was huge for us. Wearable, head- CARTER SHERLINE Crain’s Detroit Business ...... 16 mounted technology has really heated up,” said Ed- “I peered into this optical contraption and I said, ‘Allan, you gotta quit your job. We have to start a Detroit Economic Growth ...... 34 company,’ ” Avegant CEO Edward Tang recounted of his first experience with the headset technology. See Avegant, Page 36 Detroit Innovate Fund ...... 36 Detroit Lions ...... 5 Detroit Medical Center ...... 6 Detroit Metropolitan Airport ...... 1 Detroit Pistons ...... 35 East Michigan Export District Council ...... 26 Fanuc America ...... 36 Farbman Group ...... 3 Flagstar Bancorp ...... 15 The realities of metro Detroit real estate Ford Motor ...... 11 General Motors ...... 15 Hayman ...... 4 HelloWorld ...... 14 Fisher, Albert Kahn buildings among 1001 Woodward Hendricks-Berkadia Apartment Real Estate Advisors 4 Henry Ford Health System ...... 27 Inforum ...... 17 Initiative for a Competitive Inner City ...... 34 prominent office properties in default financing deal Inland Waters Pollution Control ...... 10 Invest Detroit ...... 36 Jaffe, Raitt, Heuer & Weiss ...... 10 BY KIRK PINHO lifts CDB value Jones Lang LaSalle ...... 37 CRAIN’S DETROIT BUSINESS Lakeshore Global ...... 10 Lakeshore TolTest ...... 10 The Fisher and Albert Kahn buildings in De- BY KIRK PINHO Lambert, Edwards & Associates ...... 28 troit’s New Center area could get new owners, or CRAIN’S DETROIT BUSINESS Lionblood Clothing ...... 5 its current owner could work out a deal to main- Marcus & Millichap Real Estate Investment Services 4 tain ownership of the iconic buildings. It took tours of downtown and Mid- Masco ...... 15 The properties are among the ranks of high- town — and even some of the less thriv- McLaren Health Care ...... 6 ing areas of the city — with commercial Michigan Pharmacists Association ...... 29 profile office buildings in the region in mortgage Munder Capital Management ...... 24 default. lenders to show them why Detroit’s cen- NSK Americas ...... 18 The driver? The economics of office rental tral business district is a sound invest- Plante Moran ...... 13 rates and real estate carrying costs. ment. Planterra ...... 1 ProNAi Therapeutics ...... 23 According to commercial mortgage-backed se- Out of the seven lenders that toured, it was Miami Beach, Fla.-based Starwood Pro Sports Zone ...... 5 curities data from Bloomberg LP, entities of FK Ac- PulteGroup ...... 25 Mortgage Capital that financed a $24.5 quisition LLC are in default on the $27 million Q10 | Lutz Financial Services ...... 37 million loan at 75 percent of the 1001 mortgage on the New Center buildings. The reg- Redico ...... 37 Woodward Ave. building’s value for Dan Renaissance Venture Capital Fund ...... 36 istered agent for FK Acquisition is Southfield- Gilbert’s Bedrock Real Estate Services LLC. Severstal North America ...... 12 based Farbman Group CEO Andy Farbman; Farb- This valuation is significant because SME ...... 36 man Group handles property management and it marks the first time a lender has fi- Sterling ...... 28 leasing. TriMas ...... 12 nanced a loan for 75 percent of a Detroit University of Michigan ...... 11, 18, 22 Negotiations with Farbman and the foreclo- office building’s value in recent memo- Wayne County Airport Authority ...... 13 sure process will continue until a resolution is ry, said Dennis Bernard, founder and Wayne State University ...... 11, 17, 36 reached, according to notations on the loan re- president of Southfield-based Bernard Fi- ported by Bloomberg earlier this month. COSTAR GROUP nancial Group Inc., which originated the A letter of default was first sent in November The Albert Kahn Building is one of several prominent loan on Gilbert’s 299,000-square-foot Department index 2012. The 2005 loan matures in July 2015. buildings in the region in mortgage default. building at Woodward and Michigan av- BUSINESS DIARY ...... 31 In December 2011, the $24.6 million balance on enues. the 2005 Goldman Sachs Group Inc. loan was trans- made available for an interview. She sent the fol- Financing at 75 percent of a building’s CALENDAR ...... 32 ferred to Miami Beach, Fla.-based special ser- lowing statement from Gutman: value is an industry standard, although CAPITOL BRIEFINGS...... 28 “We continue to be the proud operators of vicer LNR Partners Inc. it has fluctuated in down times from CLASSIFIED ADS ...... 33 these great buildings in the heart of the city of A representative for Farbman Group said KEITH CRAIN...... 8 company President Andy Gutman would not be See Default, Page 37 See 1001, Page 37 LETTERS ...... 8, 9 OPINION ...... 8 HIS WEEK PEOPLE ...... 32 T @ RUMBLINGS ...... 38 WWW.CRAINSDETROIT.COM WEEK ON THE WEB ...... 38 20140428-NEWS--0004-NAT-CCI-CD_-- 4/25/2014 2:58 PM Page 1
Page 4 CRAIN’S DETROIT BUSINESS April 28, 2014 $84 million sale of Ann Arbor-area apartments largest in Mich. this year
BY KIRK PINHO CRAIN’S DETROIT BUSINESS
A joint venture between Troy- based Hayman Co. and Birming- ham-based Belfor Holdings Inc. has completed the largest, by dollar value, multifamily property pur- COSTAR GROUP COSTAR GROUP chase in Michigan so far this year. Hamptons of Cloverlane sold for The Pines of Cloverlane sold for Two apartment complexes total- $41.75 million. $42.25 million. ing 1,022 units in Washtenaw County’s Pittsfield Township sold ter last year, according to data from Michigan, Ohio, Illinois, Ten- this month for $84 million, dwarf- the Southfield office of CBRE Inc. nessee and Texas. ing the second most expensive Average rents in Ann Arbor in- In December, Hayman purchased Michigan multifamily deal of $25.8 creased from $994 in the second the 981-unit Independence Green million. quarter of 2013 to $1,038 in the apartment complex in Farmington New York City-based Sterling Eq- fourth quarter, a 4.4 percent in- Hills from Denver-based real estate uities Inc. sold the 582-unit The crease, according to CBRE. investment trust Aimco. Pines of Cloverlane for $42.25 mil- The complexes have one- and Independence Green, located at lion and the 440-unit Hamptons of two-bedroom units ranging from Grand River Avenue and Halstead Cloverlane sold for $41.75 million, about 700 square feet to 1,200 Road, was 95 percent leased at the according to property transfer affi- square feet, Hayman said. time of the closing. That sale was davits. Hayman Co. will manage the for $53 million, according to “It bodes well for the market. properties. CoStar. For Michigan, that’s a sizable The purchase brings Hayman Kirk Pinho: (313) 446-0412, kpin- trade,” said Paul Kerber, vice pres- Co.’s multifamily residential port- [email protected]. Twitter: @kirkpin- ident of investments in the South- folio to more than 12,000 units in hoCDB field office of Marcus & Millichap Real Estate Investment Services Inc. IS YOUR TEMPORARY The second-largest deal this year was the ownership change on the 663-unit Old Orchard apart- LABOR PROVIDER ments in Grand Rapids. That $25.8 million purchase was in February, according to CoStar Group. CHARGING YOU Kevin Dillion, partner in the Troy office of Phoenix, Ariz.-based Hendricks-Berkadia Apartment Real Estate Advisors, represented the A FAIR RATE? buyer and seller in the Pittsfield Township deal. Terry Halverson, senior vice president of commer- cial real estate finance for Hen- Get a free assessment at: dricks-Berkadia, arranged the fi- nancing on the deal, Dillon said. The joint venture closed on the complexes, both between I-94 and www.parrymurphy.com/templabor.html West Michigan Avenue, on Thurs- day, said Andrew Hayman, presi- dent of Hayman Co. Joint venture partner Belfor Holdings is a pri- vately held holding company; it owns a number of entities, includ- ing Belfor’s disaster recovery and property restoration businesses. Sheldon Yellen is CEO. The joint venture plans $6 mil- lion to $7 million in renovations at the apartments, including updated kitchens and bathrooms, and im- provements to clubhouses and Choices landscaping, Hayman said. Sterling Equities was co-found- There are thousands ed by New York Mets co-owner Fred of law firms, but Wilpon, a University of Michigan graduate, and team President Saul many accomplished Katz. Wilpon is also the Sterling attorneys have chosen Equities board president, while Katz is the company president. McDonald Hopkins. The average monthly rent at Hamptons of Cloverlane is $1,003; James J. Boutrous II James J. Giszczak it was built in 1986, according to Chair, Labor and Employment Chair, Data Privacy and CoStar. The average monthly rent Cybersecurity is $793 at The Pines of Cloverlane, which was built in 1976, according to CoStar. The complexes are about 96 per- cent occupied, Hayman said. .D%POBME)PQLJOT1-$ “They are pretty strategically lo- 8PPEXBSE"WFOVF 4VJUF #MPPNmFME)JMMT .*t cated, about 10 minutes from Stephen M. Gross, %FUSPJU.BOBHJOH.FNCFS downtown Ann Arbor and 10 min- Jennifer Blaga, Director of Legal Recruiting utes from Eastern Michigan Uni- versity,” Hayman said. $IJDBHPt$MFWFMBOEt$PMVNCVTt%FUrPJUt.JBNJtWFTU1BMN#FBDI The Ann Arbor multifamily resi- mcdonaldhopkins.com Carl J. Grassi, 1SFTJEFOU dential market had a 98.7 percent occupancy rate in the fourth quar- 20140428-NEWS--0005-NAT-CCI-CD_-- 4/25/2014 2:59 PM Page 1
April 28, 2014 CRAIN’S DETROIT BUSINESS Page 5 Ex-Lion hopes Detroit-based clothing line catches national buzz
BY BILL SHEA Atlantis Sportswear Inc. in Piqua, ganic,” he said. “No matter what “They been training to enter sports CRAIN’S DETROIT BUSINESS Ohio. jersey I put on or what job I have always broadcasting — another visible job “It doesn’t make sense for us to after football, I am a lion. I am a come out that can serve to passively market Nate Burleson now plays for the go out and get all this overhead Leo.” with some- his clothing efforts. Cleveland Browns, but his clothing and expenses that are unneeded The brand got a boost when the thing “It’s hard for me not to see the line will remain headquartered in right now,” Montalvo said. In- Lions signed star running Reggie unique,” branding opportunities in every metro Detroit. stead, he and Burleson focus on he said. “It city,” he said. “Each individual He also plans to go national with Bush last year, and without know- the design, merchandising and ing what it meant, he hash-tagged did really player is like a cult movie. They it. marketing. well for me have their own following.” The 32-year-old wide receiver, “Lionblood” in an Instagram pho- Burleson said they spent 18 to, Burleson said. last year. He was widely acknowledged as released by the Detroit Lions in Feb- months doing research and plan- People still a valuable veteran leader in the Bush had seen Lions fans using ruary after four seasons, launched ning. come in locker room and on the field, but the term on social media. Later, his Canton “I did my research, I saw there and buy he missed 19 games in four seasons Burleson explained to him that Li- Township-based were websites available, and no- it.” in Detroit because of injuries — onblood was his clothing line. Lionblood Cloth- body had a clothing line close to Yu esti- including a broken arm last Sep- Bush and other players, includ- ing Co. brand of it,” he said. “I started putting my mated he tember when he crashed his car on ing megastar Calvin Johnson, took men’s and ideas into motion.” has sold “a I-696 after attempting to save a piz- to wearing the clothing — women’s The lead time also gave few hun- za from falling off the front passen- and putting photos of lifestyle graphic Burleson time to heal from dred” Lionblood items in the past ger seat. themselves in the T-shirts, hood- injuries that kept him from year, and carries four or five of the The Lions released Burleson in gear on social me- ies, hats and ac- playing. shirts currently. February to save money under dia. cessories in “I didn’t want to push a “It doesn’t have Nate’s face on it. the salary cap, but the team still That was price- Burleson 2013. brand off the field It’s a nice brand, good quality,” he must pay him $2 million this sea- Since then, when I wasn’t play- less viral marketing, said. “I trust this guy. I’m going to son. the company has generated about ing on it,” he said. “I didn’t and fans picked up carry his clothing line.” He had signed a five-year, $25 $250,000 in revenue, said Robert want to be perceived as P. Diddy on it, Burleson said. This isn’t Burleson’s first foray million free-agent deal with De- Montalvo, Burleson’s partner in instead of playing.” into fashion: He and his three troit in 2010 after four seasons Lionblood and a minority owner of Brick-and-mortar interest brothers launched a private-label with the Seattle Seahawks. the company. The clothing bespoke suit line, B-Line, a few Burleson renegotiated his contract The duo now is working on a Retailers took notice of Lion- years ago. It was created by to help the team with its salary cap new concept: providing turnkey Lionblood items include graphic blood, too. menswear designer William Mal- maneuvering. services to pro athletes in other T-shirts ($30), crewneck sweat- “The stores reached out, ven- colm of the Troy-based suiting la- Burleson signed a one-year deal cities who want to launch clothing shirts ($58), hoodies ($64-$68), let- dors, because fans were walking bel William Malcolm Luxe Collection, with Cleveland on April 6, but the brands of their own. ter jackets ($79) and a variety of into boutiques and athletic stores and includes custom suits, over- financial terms haven’t been dis- “We have something in the hats, stickers, pins, bandanas and asking for it,” Burleson said. coats, shirts and accessories. closed. works that will encompass differ- dog tags. Lionblood is available at 25 re- A third-round draft pick by the ent cities and athletes in those There’s also a $38 “Bless You tail locations in metro Detroit, but Minnesota Vikings out of the Univer- cities,” Montalvo said. “We want Boys” baseball raglan aimed at De- there are no plans to expand that, Preparing for the future sity of Nevada in 2003, the Canadian- to be able to work with that pre- troit Tigers fans, and gold and silver Montalvo said. Burleson is able to sell T-shirts born Burleson has played in 135 mier athlete in that city.” earrings on sale for $168. “I don’t want to flood the area and hoodies because he’s been a regular-season NFL games with In a month, they’ll also launch “I’m as excited about Lionblood with it. I think we’re good where good, visible football player for a the Lions, Vikings and Seahawks, “City Socks,” a line of men’s socks as I ever have been about football,” we’re at,” he said. long time, and known for being with 103 starts. He has 457 career that show landmarks and icons Burleson said. “We’re going to John Yu, owner of the Pro Sports gregarious. receptions for 5,630 yards with 39 and area codes from major cities make it sexy, make it look fly, Zone retail shop for the past six Burleson said he knows his on- touchdowns. in sports team colors, Montalvo make it look good.” years in Livonia’s Laurel Park Mall, field career is nearing its end, so Bill Shea: (313) 446-1626, said. Burleson and Montalvo didn’t is an unabashed fan of Burleson he’s setting up options for the long [email protected]. Twitter: The socks first will be sold in De- want the clothing to be purely for and Lionblood. term. In addition to fashion, he’s @bill_shea19 troit, where they already have dis- Lions fans or the National Football tribution channels via Lionblood, League. They didn’t seek an NFL li- and then launch in Chicago and censing fee. New York City. Atlanta and Cleve- “We didn’t want to be associated land are down the road. just with the Detroit Lions. It’s The fashion endeavors stem more of a lifestyle brand,” Montal- from Burleson’s and Montalvo’s vo said. shared interest in young men’s The clothing was sold for a time contemporary fashion. at Ford Field’s retail shop, but the Montal- duo didn’t want to pay the NFL’s vo, 42, has hefty fee (which is typically about been in the $100,000 annually in the form of a fashion in- minimum royalty guarantee, ac- dustry for cording to information online more than from NFL Properties LLC). 20 years, The clothing brand does capital- starting by ize on Detroit in general, which selling was a business decision. brands “We see Detroit having that cool from a duf- factor as a Brooklyn does. We want fel bag in to be part of that growth,” Montal- 1992. He vo said. While Lionblood will re- met main Detroit-centric, its wider Burleson fashion entrepreneurship won’t be in 2006, and specific to where Burleson plays they’ve football. spent the “The color choices won’t be dic- past couple of years hammering tated by who Nate plays for,” Mon- out ideas. talvo said. “We both love clothing, love fashion,” Montalvo said. The graphic T-shirt line made Blood lines sense, he said, because of the fash- The Lionblood name has as ion habits of Burleson and other much to do with the stars in the pro athletes. sky as pro football. “When he’s not in a suit, he’s wearing the high-end denim with Burleson was born in August the high-end T-shirt,” Montalvo 1981, making him a Leo. His astro- said. “We are definitely middle- to logical sign is important to him — high-end, as far as the quality of on his chest is a tattoo reading “A the T-shirt and the price.” lion sleeps in the heart of every The clothing is manufactured, man” — and that lent itself to the warehoused and distributed clothing line, he said. through a contract with screen- “Me being a Leo and signing printing and embroidery company with the Lions, it seemed so or- 20140428-NEWS--0006-NAT-CCI-CD_-- 4/25/2014 5:05 PM Page 1
Page 6 CRAIN’S DETROIT BUSINESS April 28, 2014 DMC says it offered to buy back Karmanos; McLaren says no sale
BY JAY GREENE request for McLaren to give it an sale and affiliation agreement and manos of any Mallett said DMC continues to CRAIN’S DETROIT BUSINESS audited financial report of Kar- contract it signed with DMC nine provisions believe it has a valid contract with manos and McLaren. years ago. would cause Karmanos that has been interfered After court-ordered mediation “There is a clause in the con- “We would like to discuss buy- irreparable with by McLaren. failed last month between McLaren tract (between DMC and Kar- ing back the cancer services,” Mal- harm to DMC “We presented a plan to Kar- Health Care Inc. and Detroit Medical manos) that says every year Kar- lett said, adding: “It was inappro- (and allow manos that would have reinvigo- Center in a contract dispute over manos will give us audited priate that Karmanos sold to for) injunc- rated the partnership and created McLaren’s acquisition last Decem- financial report to demonstrate if McLaren.” tive relief.” ambulatory opportunities for Barbara Ann Karmanos ber of the not more than 5 percent of their On the same day McLaren and In Febru- them across Southeast Michigan,” Cancer Institute, the two health care business is unrelated to cancer Karmanos announced they would ary, after Mallett said. “It was flatly turned systems are headed back to Oak- services,” said Mallett. join forces, McLaren filed a law- hearing sev- down.” land County Circuit Court to settle DMC said it sold DMC’s cancer suit against DMC in which it asked eral months Mallett said now the two health their problems. business to Karmanos in 2005 for the court to declare DMC’s 2005 af- of motions systems are headed back to court. But two weeks ago, DMC officials the below-market price of $9.9 mil- filiation agreement with Kar- We from each He said Potts is expected to rule said they mailed a letter to Flint- lion because it included an exclu- manos to be an “unreasonable re- “ side, Judge April 30 on DMC’s motion for sum- based McLaren would like sive affiliation into perpetuity. strictive covenant” that violates Wendy Potts mary disposition and preliminary that included an Karmanos had offered a no-strings injunction to stop further integra- offer to buy back Michigan’s antitrust laws. to discuss ordered the $45 million deal for the DMC can- In its lawsuit, McLaren said it two parties tion of Karmanos into McLaren. Karmanos, lo- “(McLaren) filed an amended cer operations. wants to use Karmanos’ name on into media- cated on the buying complaint that amped up (the alle- Last October, McLaren signed its cancer centers at McLaren Oak- tion. DMC campus in gations against DMC) by saying an agreement to acquire Kar- land, a hospital in Pontiac; McLaren But the me- downtown De- back the DMC has been purposefully over- manos for an unspecified amount Cancer Clarkston; and other diation failed. troit. charging Karmanos for services of money but also with a pledge to McLaren McLaren health care facilities in cancer Tompkins Karmanos is supposed to buy from spend $80 million over the next spokesman Oakland County. and Mallett us,” Mallett said. Kevin Tomp- four years to upgrade Karmanos’ But DMC and Karmanos’ 2005 services. said good- Tompkins ” “We tried to settle this, but it kins, in an email downtown hospital and expand sale agreement also prohibits Kar- faith effort looks like we are going to trial Conrad Mallett Jr., to Crain’s, said Karmanos is not outpatient centers in Farmington manos from marketing or adver- was made to now,” Mallett said. DMC for sale. Hills and Monroe. tising its services in Oakland, address the DMC was acquired by for-profit “McLaren Health Care has not “Now that Karmanos is owned Wayne or Macomb counties with problems, but Tenet Healthcare Corp. last October received nor is it aware of any of- by McLaren, we want clarification anyone other than DMC, said DMC both sides were too far apart in after Vanguard Health Systems, an- fer made by the DMC to purchase to their compliance with the con- in a November court filing. their positions. other for-profit chain, took over Karmanos,” Tompkins said. “Kar- tract,” Mallett said. “It is fairly DMC alleges that Karmanos is “Everything about this transac- DMC on Jan. 1, 2012. manos Cancer Institute is a sub- clear based on our uneducated un- liable for breach of contract and tion is legitimate and beyond dis- McLaren, a nonprofit system, sidiary of McLaren Health Care derstanding of McLaren that their McLaren for tortuous interference pute. Everything about this agree- owns and operates 11 hospitals in and is not for sale.” business includes more than 5 per- with its prior agreement with Kar- ment has been done to benefit Michigan, including Karmanos. Conrad Mallett Jr., DMC’s chief cent of non-cancer services.” manos. DMC also said its sale Karmanos, its clinical and re- Jay Greene: (313) 446-0325, administrative officer, said DMC’s Mallett said he believes Kar- agreement with Karmanos also search staff and the communities [email protected]. Twitter: letter to McLaren also contained a manos now is in violation of the provided that “any breach by Kar- they serve,” Tompkins said. @jaybgreene
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April 28, 2014 CRAIN’S DETROIT BUSINESS Page 7 Planet Aid sues Ypsilanti Twp. Penske Automotive plans hiring across dealerships
over donation bin ordinance JAMIE LAREAU States, with retail sales of 199,795 CRAIN NEWS SERVICE new vehicles in 2013. The company credited its broad BY SHERRI WELCH property owners or site managers “It just got out of hand ... (and) Penske Automotive Group Inc., brand mix and market diversity CRAIN’S DETROIT BUSINESS to allow it to place the donation became an issue of blight,” Law- which last week reported the high- for the increase in income. bin on the property. It had not son said. est quarterly income from contin- An East Coast nonprofit with Both factors helped offset losses been notified of any issues with Three groups affected by the uing operations in the company’s local operations in Romulus has in sales and service when severe its recycling bins, the nonprofit township’s enforcement of the or- history, said it is looking to hire filed suit against Ypsilanti Town- winter weather forced some said in the filing. dinance have contacted it to seek more salespeople ship to prevent it from enacting Penske stores to Planet Aid sells the clothing it alternatives, he said. Aside from at each of its 243 what it perceives as a ban on shut down tem- collects to markets around the Planet Aid, they include Massa- dealerships. clothing and shoe donation bins. The issue is porarily. world and uses the proceeds to chusetts-based Institute for Interna- And given the Last week, U.S. District Judge “ “We had 280 pay for development programs in tional Cooperation and Development push for dealers Denise Hood granted Massachu- trying to attract days of closures poor communities in Latin Amer- and Houston-based for-profit to add “product setts-based nonprofit Planet Aid a on our dealer- ica, Africa and Asia. American Textile Recycling Services. geniuses,” Chair- mechanics who ships in the temporary restraining order that Ypsilanti Township’s attorney man Roger allows it to keep its 16 donation “ATRS and IICD wanted to pro- Northeast, and has yet to file a response in U.S. vide us with draft ordinance lan- Penske said in an want to make it a that had a sizable bins in place in the township. District Court, but Planning Direc- guage to allow them and no one interview with impact on us. But Bloomfield Hills law firm Dalton tor Joe Lawson said it is not ban- Automotive News else to put their boxes in the town- career. the geographic di- & Tomich PLC is representing Plan- ning the bins. The township is en- it will be “looking ship and in return, they’d offer ” versity we have et Aid in the case. forcing its zoning regulations that out for a different the township a permit fee for do- Roger Penske, in the West and In its complaint, Planet Aid stipulate where donation bins can kind of person” Penske Automotive ing so,” Lawson said. our international said a representative of Ypsilanti be placed and the surrounding en- than one with tra- The township won’t enter into presence, both Township contacted it on April 8 closure required for them, he ditional sales ex- helped,” Penske to let it know it had 30 days to re- said. any type of negotiation on the perience. said. move its donation bins that did “Some property owners were matter until the Planet Aid law- Also, Penske’s service bays have not comply with a zoning ordi- concerned because some of these suit is settled, he said. capacity for more work, but not Penske said first-quarter in- nance requiring property owners bins were being placed on prop- But, he said, “I don’t think it enough mechanics to do it, Penske come from continuing operations to maintain the property in accor- erty without permission,” he would be appropriate to do such a said. rose 15 percent to $66.1 million. dance with approved site designs. said. thing. We’re not looking for op- “The issue is trying to attract Revenue rose 21 percent to $4 bil- Planet Aid said it secured prior Some of the bins have been portunities to create monopolies mechanics who want to make it a lion. consent from property owners be- blighted, and people were leav- in our community.” career,” Penske said. Accounting for a gain from dis- fore placing its 16 bins in the ing non-textile items in front of Sherri Welch: (313) 446-1694, Penske ranks No. 2 on the Auto- continued operations, net income township or entered into rental some of the bins, like tires and [email protected]. Twitter: motive News list of the top 125 rose 17 percent to $67.9 million. agreement contracts with the couches. @sherriwelch dealership groups in the United From Automotive News
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Page 8 CRAIN’S DETROIT BUSINESS April 28, 2014 OPINION Stronger pharmacy laws could save lives bout 18 months ago, Michigan became “ground zero” in a fungal meningitis outbreak that claimed 19 lives A and injured more than 260 patients in our state alone. The culprit: tainted steroid drugs manufactured in Massa- chusetts by a compounding pharmacy and distributed in spinal injections at various medical facilities in four Michigan counties, including a pain clinic in Brighton. Compounding pharmacies mix and assemble pharmaceuti- cals to create medicine needed by a patient but not commer- cially available in the dose or format required. Meanwhile, a new federal law was passed to ensure greater oversight, but its rules are still being written. In Michigan, a Brighton-area lawmaker is leading the charge to tighten state rules through its own pharmacy board. As Chris Gautz reports on Page 29, if patients are injured or die because the new rules aren’t followed, the proposed law would impose felony charges and possible prison sentences. Compounding pharmacies can offer many patients a safe al- ternative to stronger doses or ingredients they may be allergic to that are found in commercially available drugs. They can also create medications that are found to be in short supply. The proposed legislation would require inspections and a “pharmacist-in-charge” responsible for quality control. Reputable businesses should have no problems with the LETTERS proposed legislation. Bolger’s demand no aid to deal Biz, public are key in water talks
Detroit is edging closer to a bankruptcy plan and blueprint. Editor: to pump the DWSD water to their Crain’s Detroit Business But the insistence by House Majority Leader Jase Bolger that Bravo for the April 21 Crain’s facilities — and the resulting cost. welcomes letters to the editor. unions pony up some cash as part of the deal could actually be Detroit Business editorial: “Biz All letters will be considered for These combined rate increases are a deal-breaker. must wield clout on water authori- publication, provided they are simply unsustainable. ty.” Joe Neussendorfer Lawmakers will need to approve any state contribution to- signed and do not defame Up to this point, the counties Livonia ward the “grand bargain” to help the underfunded Detroit re- individuals or organizations. have been the only players. There Letters may be edited for length tiree pension funds. are more “publics” than just the and clarity. public sector that are and will be Consider those with Last week, Gov. Rick Snyder and Senate Majority Leader Write: Editor, Crain’s Detroit Randy Richardville seemed to distance themselves from Bol- affected. We need to bring the wa- Business, 1155 Gratiot Ave., cognitive impairments ter-sewerage customers to the Detroit, MI 48207-2997. ger’s demand. Some retirees (not police and fire) already are table, as they have the bigger stake Editor: Email: [email protected] foregoing a cost-of-living increase and probable reductions in in the future of the DWSD. George Lenyo’s opinion piece retiree health care coverage. Non-uniformed retirees are tak- It is the business community, es- (“Employers must accept diverse abilities,” April 21, Page 9) is time- ing a 4.5 percent cut overall. pecially manufacturers, that are of a future water supply? going to be hit the hardest if some- It is paramount that any DWSD ly and instructive. When the U.S. If anything, unions might voluntarily contribute toward a thing is not done to solve the prob- mediator bring business and resi- Department of Labor recently an- health care fund for retirees. But that shouldn’t be required to lem. Of course, we residential dential ratepayers to the table to nounced new regulations designed move the final agreement to secure state support for a resolu- ratepayers are being hit hard, too. address this problem. to improve job opportunities for tion of the pension issue. If we do not solve this problem, There is another aspect of this individuals with disabilities, I was immediately reminded of the up- Bolger says he made his views on union contributions pub- metro Detroit will lose jobs due to problem that we are hearing very astronomically high water and little about, one that hits the man- roar surrounding the original licly known in January. But it still smacks of an attempt to sewerage rates. ufacturing sector especially hard: Americans with Disabilities Act of move the goal line halfway through the game. And what about the reliability The amount of electricity it takes See Letters, Page 9 KEITH CRAIN: We need another Judge Greene today There are probably not many million customers — for a monopoly that has de- flix — which send streaming con- to justify federal bailouts of cer- who remember federal Judge the entire nation. creased service and tent — oppose the deal. tain banks during our recent fi- Harold Greene and his earth-shat- It’s a bad idea, and I raised prices. Who regulates cable companies nancial crisis. Well, maybe we tering ruling in 1984 that led to the hope federal regulators I can’t think of any anyway? States used to regulate need another battle cry: “Too big breakup of AT&T. say no. good argument for al- phone companies and cable compa- to get bigger.” That led to the birth of “Baby I remember not too lowing this multibil- nies. But that power has dimin- We are lucky to have monopolies Bells,” which have since merged long ago when XM and lion-dollar cable merg- ished. And monopolies are growing. in Detroit that provide electricity and morphed from regional phone Sirius both came out er. It would be good for Competition is a good thing. It and natural gas. They are still regu- companies into telecom giants with satellite radio sys- shareholders but bad makes products and services bet- lated and seem to understand the re- while new wireless companies tems. They both for customers. ter and keeps prices low for the sponsibilities of a monopoly. formed and competed. promised to be strong in- Supporters say the consumer. Just look at competi- It may be a tough sell by Com- Now, our primary cable opera- dependent operators and geographic markets for tion in the cellphone arena. Lots of cast to convince federal regulators tor in Southeastern Michigan, they would never even Comcast and Time competitors and low prices. to allow this monopoly. My guess Comcast, wants to do a billion-dol- think of merging. It wasn’t long be- Warner don’t overlap much. But You and I don’t have a vote in is that it will be more political lar merger with Time Warner Ca- fore they were both whining that it’s more than cable. It’s also this cable deal. But think about rather than economic. ble, which will result in one big ca- they couldn’t survive without a broadband Internet service. how you might be affected. That’s too bad, but seems to be the ble company — probably 30 merger. They merged, and we have Which is why companies like Net- “Too big to fail” is a phrase used way it is these days in Washington. 20140428-NEWS--0008,0009-NAT-CCI-CD_-- 4/25/2014 11:15 AM Page 2
April 28, 2014 CRAIN’S DETROIT BUSINESS Page 9
LETTERS CONTINUED Crain column ■ From Page 8 1990. Many feared scenarios hiring individuals with cognitive Their best qualities are loyalty, where hoards of disabled people impairments. honesty, timeliness and the de- draws responses would be wheeled into massive I challenge employers and hir- sire to do a good job. Their bright- corporate headquarters demand- ing managers to redefine the est attributes, at the risk of a re- ing jobs for which they were un- meaning of the best and the verse stereotype, may be From letters: Myopic views ignore the real is- qualified, or where teens and col- brightest when aiming to fill en- “pleaser” personalities, a con- sues that precipitated the current lege students would be forced out try-level jobs that can be success- stant smile and a tremendous events that Detroit will revisit this of part-time jobs by a group per- fully completed by people with in- sense of appreciation for being ‘Overseer’: Much ado probably in the next 10 years. ceived to be granted an entitle- tellectual challenges such as included as part of a workplace about nothing? Overseer or not. ment based on their physical dis- Down syndrome and autism. team. At the end of the (work) Michael Tucker abilities. Not only did neither After a generation of inclusion day, people with cognitive im- happen, the employment rate for in the public school system, Editor: pairments, like all good workers, those with disabilities has re- many of today’s young adults Is it me or is this “overseer” In most municipalities, or even seek purpose and a sense of ac- mained disappointingly flat in with cognitive impairments hold thing on HuffPost Detroit or wher- complishment to create a full and states, oversight of executive oper- the post-ADA era. a high school diploma or equiva- ever stupid? Did anyone actually meaningful life while bringing ations would be the role of the legis- I would like to add a few points lent and are well qualified for read Keith’s column (“Maybe we value to their employers. lature, correct? of consideration to Mr. Lenyo’s work in restaurants, retail and need a permanent overseer,” April Cynthia Hutchison Neil Tamble thoughtful writing, notably about light industrial environments. Founder, Band of Angels 21, Page 8)? Aside from the headline (and even then, who cares?), I didn’t see the word “overseer” used in his column. And even if it was, who the hell cares? As a subscriber and pragmatic progressive, the PC Police need to get a life! Fred Newton Chicago
From Talk on Web:
Re: KEITH CRAIN: Maybe we need a permanent overseer “Overseer”? Someone really should have thought this through be- fore pushing the “publish” button. Why fan Detroit’s consistently smoldering racial animosities? Keith Crain should know better. NadirOmowale
The people who need an “over- seer” are most of the very people that Crain’s represents. They are the ones who destroyed our economy through predatory lending and the global financial crisis, and then went begging to the public sector (us) to bail out their behinds. They are “too big to fail” yet have no al- legiance to our country or society — they will move overseas the mo- Partnership ment they find a cheaper, more ex- ploitable workforce and nonexis- tent environmental protections. * They are the “overseers.” Stephanie Thomas C. Pedroni I have a mission. Every day I come to work focused on serving Did everyone forget about the members of my community. My Client Advisor from FirstMerit’s global competition effect on the car industry? They took a major Charitable Advisory Group understands this—imparting financial hit and the money dried up, which expertise and partnering with me so that I can continue to focus on exposed the actual financial condi- tion of life without the auto indus- my mission. Because when the business side of our organization try dollars. The pathetic manage- is well cared for, I can better care for those in need. ment of the city became exposed as well as the result of putting all your eggs in one basket. Ididitright
Wow. This is beyond insulting. Crain’s has sunk to a new low. We have new leadership. Also, we TO LEARN MORE ABOUT have a democracy here. FIRSTMERIT PRIVATEBANK, Muckraker steve CONTACT: Ken Duetsch II, Senior Vice President, Yes, we do have a democracy at 248-430-1255 or ken.duetsch@firstmerit.com. here, and that democracy routine- ly elected criminals to “lead” the Follow the latest market trends city. That is being done up to the very most recent election. Demon- @firstmerit_mkt strate that the voters are ready to Investments and Insurance Products are: elect competent politicians and then post your piece. Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not A Deposit | Not Insured By Any Federal Or State Government Agency William J *Stephanie reflects a composite of clients with whom we’ve worked; she does not represent any one person. Member FDIC 1923_FM14 KC just dropped some knowledge up in here. GP for life 20140428-NEWS--0010-NAT-CCI-CD_-- 4/25/2014 11:45 AM Page 1
Page 10 CRAIN’S DETROIT BUSINESS April 28, 2014 Bidders may protest the awarding of DWSD contracts to Lakeshore
BY CHAD HALCOM then reassigned it to a different Lakeshore Global Corp. A main concern for both compa- proposal for the work,” once the CRAIN’S DETROIT BUSINESS company. Lakeshore Global, an entity that nies is that the company that bid deadline for bids has passed. The Board of Water Commission- shared a corporate address and on the contracts isn’t the same one “They’re not following their Two competitors with Lakeshore ers last week awarded Lakeshore some principals in common with that will perform on it, which ap- own rules. That was a part of the TolTest Corp. could lodge bid two three-year sewer lining and Lakeshore TolTest until recently, re- pears to violate the terms of a re- bid package, that the proposer can- protests before the Detroit Water repair contracts worth $30 million mains based in Detroit and is man- quest for proposals DWSD put out not be modified,” Jacobson said. and Sewerage Department within each, for the city’s east and west aged by Avinash Rachmale, former on both contracts last year. “And Lakeshore Global is not the days, after the department’s gov- sides, and a separate authoriza- chairman and CEO of Lakeshore Gayl Turk, Blaze director of proposer. So what the department erning board awarded Lakeshore tion measure to assign those two TolTest, sources told Crain’s. business development, and did is make the allowance, to say, $60 million of contract work and contracts from Lakeshore to Lakeshore TolTest, or LTC, has Michael Jacobson, an attorney for ‘Lakeshore TolTest, you stay on as been headed by Chairman-CEO Inland Waters at Southfield-based the proposer, but you can some- Grant McCullagh since late 2012 Jaffe, Raitt, Heuer & Weiss PC, said how assign your proposal after the and submitted the original two con- the companies will decide shortly fact to someone else.’ ” tract bids to DWSD sometime in whether to file a bid protest of the Competitors had seven days to mid-2013. It relocated its headquar- Lakeshore award. respond after the water board’s ters to Chicago a few months ago. “I know Lakeshore has a settle- contract decision last Wednesday. McCullagh did not respond to re- ment with the DWSD that was sup- Lakeshore was also one of 14 com- quests for comment last week. Adi posed to pay out in installments panies DWSD suspended in Decem- Dalvi, a director of business devel- and I understand those aren’t done ber 2011 from contracting with the opment for Middle East/North yet,” Turk said. “So they’re evalu- department as nonresponsible bid- Africa oil and gas programs at ating a company they have an in- ders, based on their connections to LTC, deferred comment to Andrew terest in. That was just one of the the so-called Kilpatrick enterprise. Haliw, executive vice president things that seemed irregular to The company challenged the sus- and general counsel at Lakeshore me.” pension, but Lakeshore and two oth- TolTest, who also did not respond Among the others, Jacobson ers later agreed to withdraw from to requests for comment. said, is that Lakeshore TolTest DWSD bids for one year. Audrey Young, strategic com- was able to reassign its previous Lakeshore Global then won a munications adviser to Lakeshore bid to someone else after submit- three-year, $21.8 million contract TolTest at Holland & Knight LLP, also ting it, and that Lakeshore Global last October with Lakeshore to declined to comment publicly on did not have to disclose records on provide supplemental staffing and the Chicago move or separation of its bonding capacity, financial sta- help manage corrective mainte- companies, but said she does not tus or personnel, as the other bid- nance and related construction at represent Lakeshore Global. ders have done. sites such as water treatment Detroit-based Inland Waters Pol- The contract requirements in plants and stations. lution Control Inc. and Blaze Con- DWSD’s bid solicitation last year But that contract is now on hold, tracting Inc. also vied for the lin- state that “no modification or revi- according to Detroit Emergency ing and repair contracts, and sion to any proposer’s proposal Manager Kevyn Orr’s office. voiced their opposition to form … will be accepted, nor will a Chad Halcom: (313) 446-6796, Lakeshore’s “irregular” bid at proposer be allowed to withdraw [email protected]. Twitter: DWSD board meetings. its proposal and submit another @chadhalcom
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April 28, 2014 CRAIN’S DETROIT BUSINESS Page 11
REPORTER’S NOTEBOOK
Chad Halcom covers litigation and the defense industry. Call (313) 446-6796 or write chalcom @crain.com. Focus generalFocus and in-house counsel awards
Chad Halcom Law schools HONOREES Revenue over $1 billion target diversity Winner: Joshua Sherbin, Attorneys TriMas Corp., Page 12 Finalist: Martin Szymanski, in varied ways Severstal North America, The University of Michigan Law Raising who take Page 12 School launched years of national Revenue $100 million debate building to last week’s U.S. Supreme Court decision on race and to $1 billion admissions practices — but some their work Winner: Emily Neuberger, local schools have moved on to try Wayne County Airport for diversity by other means. Authority, Page 13 At UM, for example, ethnic to a higher Finalist: Christopher Nelson, diversity has been on a climb even Plante Moran PLLC, Page 13 though student headcount is slightly Revenue $10 million to $100 down. The school, whose practices level spawned the initial Grutter v. the bar million Bollinger lawsuit over 15 years ago, Winner: Ira Schlussel, now reports that 27 percent of its HelloWorld Inc., Page 14 344 students expected to graduate Finalist: John Bommarito, next year are minorities. Attorneys Title Agency, Page That’s compared with 24 percent 14 of the 359 students graduating this ichigan companies have been at tions from companies across the state to pick year, and 21 percent of the 376 who Revenue under $10 million ground zero for some of the most tu- the region’s top in-house counsel. graduated in 2013. M Winner: Jessica McGrath, The high court ruled 5-4 in 2003 multuous business events in this This year, there are two new awards: Certified Restoration that the UM law school admission young century. How well have corporate at- “Rising star,” to recognize people who are Drycleaning Network LLC, policy that made race an torneys handled the challenge? not yet the chief legal officer, and a pro bono Page 15 admissions factor without creating In the fourth year of the Crain’s General award to recognize volunteer work. Profiles Rising star quotas was constitutional. That led to Michigan voters passing a state and In-House Counsel Awards, a team of begin on this page and continue through Winner: Tamika Mayes, General Motors Co., Page 15 constitutional amendment in 2006 judges and Crain’s staff looked at nomina- Page 15. to ban “preferential treatment to any Finalists: Kimberly Coleman, individual or group on the basis of Flagstar Bancorp Inc., Page race, sex, color, ethnicity, or 15; Yvette VanRiper, Masco Corp., Page 15 national origin in … public employment, public education, or Pro bono public contracting.” WINNER: PRO BONO Winner: Andrew Pride, Ford Two civil rights organizations Motor Co., at left challenged that law, but the high court in a 6-2 ruling Tuesday upheld it. ANDREW PRIDE, 46 Wayne State University Law School JUDGES Title: Counsel, Ford Motor Co. Dean Jocelyn Benson said new laws Lisa DeMoss, director, have prompted the school’s Recent achievement: Worked with the Mexican Bar graduate insurance program, admissions committee to consider Association to create pro bono standards. Thomas M. Cooley Law geographic diversity, income and other School factors as part of a deeper evaluation eshaping the legal culture in Mexico, Kelly Freeman, assistant of applicants. However, minority talent South America and Europe. Helping disad- general counsel, attraction remains an uphill climb. R vantaged people with their legal problems. Meadowbrook Insurance “Schools that have robust Resolving immigration issues. Group affirmative action policies in These are just a few of the things that Andrew Chris Heaphy, senior vice neighboring states are now able to Pride does on the side at Ford Motor Co. As chair- president, general counsel use those to court and lure away our man of the Dearborn-based company’s pro bono and secretary, The Taubman best and brightest,” she said. “But committee, he coordinates the activities for the Co. LLC one benefit of going through this Robert Kurnick Jr., automaker here and abroad — in addition to his PIERRETTE DAGG/CRAIN’S DETROIT BUSINESS saga is that we are now using a president, Penske in-house counsel duties. Andrew Pride: “One person spending 2 hours of their more fully holistic evaluation of all Automotive Group “One person spending two hours of their time time can make a big difference in someone’s life.” that an applicant can offer.” can make a big difference in someone’s life,” said Bernard Lourim, corporate Wayne State University Law matter what the cost,” he said. counsel, Fanuc Robotics Pride, recalling the client who couldn’t sleep at America Corp. School’s fall 2013 first-year student night until the lawyer arranged for clear title to Pride and other Ford attorneys are working class was 16.7 percent minorities, with the Mexican Bar Association in Appleseed Wendy Richards, director his home, or the one with a master’s degree who of legal and policy programs, down from 17.7 the previous year. Mexico, which is a network of public-interest jus- couldn’t advance in her career until he got an old Michigan Community But law schools and other court record expunged. tice centers, and others to establish pro bono reg- Network schools may be recruiting from an “It is pretty near immediate change for the bet- ulations there, and helping to repeal anti-pro incrementally more diverse Lloyd Semple, professor of ter in their lives,” he said. “And what I do here bono regulations in Brazil with a similar group of law, University of Detroit undergraduate student body in years (Ford litigation) can take 10 years.” partners. Mercy School of Law to come, according to the Center for Pride has some high cultural hurdles to strad- In Europe, Ford’s pro bono program provides Educational Performance and counsel to a social services agency for youths in Information. Almost 20.6 of dle in his international work of setting up pro bono programs. the United Kingdom; a nonprofit that informs GENERAL AND IN-HOUSE students enrolled in four-year children about Internet and social media-related colleges and universities in For instance, until austerity measures were im- risks and their privacy rights in France; and COUNSEL SUMMIT Michigan in 2012-13 identified as posed, people in the United Kingdom got govern- ment-provided legal representation and had no Ashoka Fellows, social entrepreneurs with innov- What: Honor award winners one of six ethnic categories other and finalists, discuss need for donated services. Also, attorneys in Mex- ative solutions to societal problems in Germany. than Caucasian/white, or as business and legal issues, biracial, compared with about 20.3 ico view pro bono work as depressing fees for all Ford General Counsel David Leitch’s goal is to examine the possibility of providing free legal aid May 13. For more details, percent of students in 2011-12 and lawyers. see Page 16. 19.3 percent in 2010-11. But Pride says the Mexican fee argument is in every country where Ford has a presence: Pride has yet to tackle Thailand and Australia. Where: Westin Book “As our country becomes more moot. Cadillac, Detroit Leitch also wants to meet the State Bar of diverse, inevitably the student body “(In Mexico,) the people you’re helping … Register: will grow to reflect that diversity at they’re the ones who couldn’t afford a lawyer, no See Pro Bono, Page 12 crainsdetroit.com/events every level,” Benson said. 20140428-NEWS--0012-NAT-CCI-CD_-- 4/25/2014 11:00 AM Page 1
Page 12 CRAIN’S DETROIT BUSINESS April 28, 2014 Focus: General and In-House Counsel Awards WINNER: OVER $1 BILLION than 200 in Southeast Michigan — TriMas also closed on 10 new JOSHUA SHERBIN, 51 confronts an array of legal issues company acquisitions in 2013, in- Title: General counsel, secretary regularly across its various busi- cluding Kansas-based Mac Fasten- and chief compliance officer, nesses in 17 ers Inc. for $34 million in October, TriMas Corp., Bloomfield Hills countries, Wulfrun Specialised Fasteners Ltd. Recent achievement: Sherbin said. for about $9.6 million in March, Overseeing legal support The All California-based Martinic Engineer- services for 10 TriMas Things Legal ef- ing Inc., for $19 million in January, acquisitions worth more than fort builds on and the assets of Tat Lee Ltd. for an $70 million combined in 2013, the legal webi- undisclosed sum in April. and an expanded legal In late 2012, the company also communications campaign nars the compa- across the company’s footprint ny has hosted contracted with legal processing in 17 countries. for more than firm EXL in India to conduct initial review of its legal billings across Sherbin two years with a series of three- 10 law firms worldwide and ensure s general counsel, it’s im- minute streaming video primers compliance with TriMas’ outside plicit that Joshua Sherbin on various legal topics on the com- counsel guidelines. A oversees all things legal at pany intranet, plus a quarterly “That’s not a substitute for do- Bloomfield Hills-based TriMas Corp. phone conference “roundtable” ing your own careful read of the But the company is giving that that portfolio companies can join billings internally, and completing role a higher profile with the late- from several continents. some analysis,” Sherbin said. “But 2013 launch of “All Things Legal,” “We’ve had great participation it takes aside a whole initial ad- Congratulations a multimedia strategy to raise in the webinars, and we’re also ministrative function of compar- awareness of legal issues world- getting some good questions dur- ing statements against our outside Jessica McGrath wide. ing our visits at individual busi- counsel guidelines, just a basic 2014 Crain’s General Counsel of the Year Award TriMas — a diversified manu- ness units, or in roundtables,” he running of the rules, and frees up a facturer of engineered aerospace, said. “So we’re starting to see number of hours our internal legal from your Clean Brands family of companies. energy, packaging, trailer and oth- those tools really get utilized.” employees can now devote to other er component products with 5,000- Webinar participation is up 10 complex tasks.” plus employees, including more percent since 2012. — Chad Halcom
FINALIST: OVER $1 BILLION “I was one of two members of ment — equipment it never pur- HUNTINGTON MARTIN SZYMANSKI, 60 our senior management team not chased. C LEANERS Title: Vice president, general replaced; our new team members Szymanski and his team avoid- counsel and secretary, Severstal are mostly in their 30s and have lit- ed litigation with the supplier and North America, Dearborn tle experience in recovered a $2 million charge and Recent achievement: He and our industry,” secured a contract extension and his team avoided litigation with a he said. “I have price reductions totaling $16.7 mil- supplier, recovered a $2 million been entrusted lion over five years. charge, and secured a contract with acting as a He also litigated two separate extension and price reductions mentor to this suits with the same raw materials totaling $16.7 million over five years. group.” supplier totaling nearly $20 mil- 2014 LEADERS IN THE LAW The changes lion in savings. Szymanski and his have led Szy- team also negotiated in arbitration The Meisner Law Group, P.C. congratulates artin Szymanski, vice manski and his over its sales of three mills to Ren- ROBERT M. MEISNER, ESQ., for being chosen as one of only president, general coun- team of two at- co Group in 2011. The arbitration M sel and secretary for Dear- Szymanski torneys and a ended late last year with Severstal 30 Michigan attorneys as the 2014 Leaders in the Law, honored born-based Severstal North America, for his reputable work and success in the legal community. paralegal to become more aggres- paying only $32 million of a $90 is an executive relic for the auto- sive in negotiating and litigating million claim. motive steelmaker. contracts. “In order to stay profitable and He continues to lead the North Last year, management discov- competitive, we have to be aggres- American subsidiary’s legal team ered an improper and costly sive,” Szymanski said. “We now after sweeping executive changes charge Severstal was incurring in have a greater consciousness “The 2014 Leaders are attorneys over the past 12 months in which a large contract. One of its cus- about not overlooking issues and most of the company’s top execu- tomers was charging a capital ex- turning over every stone.” who are changing the law, tives were replaced. penditure fee tied to new equip- — Dustin Walsh expanding access to justice and improving the profession and their communities. They are the Lawyers in Michigan setting the example for other Lawyers.” Pro Bono: ‘Immediate change’ — Michigan Lawyers Weekly; ■ From Page 11 February 17, 2014 Michigan’s standard and have lawyers regularly and said Pride is ages 13, 11 and 9? every Ford staff attorney provide her “go-to” attorney whenever she “There’s a great group of com- 30 hours of pro bono services has an urgent request because he’s mitted people here at Ford and in • Condominium and Community Association Law yearly. willing to do whatever it takes for the community,” Pride said. “I Closer to home, Pride and his her clients. couldn’t do what I do without my • Condominium Documents and HOA Amendments colleagues provide immigration- “They think he’s really wonder- colleagues here and my colleagues • Contracts and property disputes related pro bono services to clients ful,” she said. “He treats them as arranged via Dykema Gossett PLLC’s though they are his corporate on the international level. • Commercial, Business and General Litigation Ann Arbor office, as well as clients.” “This is definitely a team ef- • Mediation and Facilitation through state-based community LADA awarded Ford’s lawyers fort.” service organizations, and to its Pro Bono Corporation of the Pride could explain away the clients of the Legal Aid and Defend- Year award in 2011 and 2013. Ap- amount of work he’s done on ers Association in Detroit. pleseed honored Leitch, Pride and Ford’s Pro Bono Committee since The LADA clients typically need their team in 2013 for their volun- its formation in 2010 by saying that help with property, contract, pow- teer work in Mexico. Leitch — the auto company’s top MLG er of attorney and housing mat- How does this Wayne State Uni- lawyer — asked him to do it. THE MEISNER LAW GROUP, P.C. ters, and with expungements of versity-educated product litiga- criminal records. Also through tion attorney manage all of these But there’s more to it than that. Attorneys and Counselors “He’s a strong leader and has the “Leaders and Best” LADA, the Ford attorneys volun- pro bono activities along with teered for 10 food stamp, elder law overseeing up to 100 lawyers respect of his peers,” said Leitch of and nonprofit clinics in 2013. working on more than 140 Ford Pride. “He gets a real spark in his 30200 Telegraph Rd., Suite 467 • Bingham Farms, MI 48025 Lynda Krupp, managing attor- cases in Canada and five South- eye when he talks about the work Tel: (248) 644-4433 • Fax: (248) 644-2941 ney for LADA’s private attorney eastern U.S. states, not to men- [email protected] • www.meisner-law.com our office is doing for pro bono.” involvement unit, calls on Ford tion helping to raise three girls, — Ilene Wolf 20140428-NEWS--0013-NAT-CCI-CD_-- 4/25/2014 11:12 AM Page 1
April 28, 2014 CRAIN’S DETROIT BUSINESS Page 13 Focus: General and In-House Counsel Awards WINNER: $100 MILLION – $1 BILLION FINALIST: $100M–$1B Neuberger also quarterbacked a com- CHRISTOPHER NELSON, 43 EMILY NEUBERGER, 62 plex land swap in November that gave the Title: Senior vice president and general It was a little hairy for authority additional runway threshold Title: General counsel, Plante Moran PLLC, Detroit counsel, Wayne County Airport “ space so larger planes could land at Willow Recent achievement: Creating an in-house office Authority about five months Run. In return, the federal trust charged of the general counsel Recent achievement: Executed a with cleaning up GM’s old Willow Run complex land swap that gave more land because it was just me Powertrain plant got land it needed for t the 90-year-old accounting firm Plante to Willow Run Airport, but also helped cleanup and possible redevelopment. Moran PLLC, General Counsel Christopher the clean up of a former General Motors (as the lone legal expert “A lot of agencies were involved. That A Nelson is the first of his kind. Corp. property. for two airports). was a big deal for us. We didn’t want any Building his department from the ground up, in ” continuing liabilities related to it,” she a $400 million organization with 200-plus partners mily Neuberger didn’t expect to said. “It was not simple.” and more than 2,000 employees, is something he become an expert in aviation law, Emily Neuberger, Wayne County Airport Authority She also got the airport through con- considers his biggest challenge E but that’s what happened. struction of the $440 million North Termi- and his greatest opportunity. Her plan was to go to law school to be- while still handling legal issues. An early nal, which opened in 2008, without litiga- Along with minimizing legal come a lawyer for schools. Instead, she retirement incentive in February 2012 tion. costs and exposure, Nelson’s got a job doing corporate transaction lured the department’s other two lawyers Neuberger’s job also includes defend- task will be staying attuned to work in Chicago after and a secretary out the door. ing the airport and the seven-member au- the needs of employees in 22 of- graduating from North- It saved money but left Neuberger as thority in court. fices. Because their specialties western University School the lone on-staff legal expert for two air- The authority was in the spotlight after range from wealth manage- of Law. it fired airport CEO Turkia Mullin in Oc- ports. ment to real estate investment, That included nego- tober 2011 amid scrutiny about the hiring “It was a little hairy for about five or it means being well-versed on a tiating airport con- process for her, and a $200,000 severance six months because it was just me,” she host of regulations. tracts. payment from her previous job as Wayne Nelson said. “There’s a popular miscon- Fast-forward a cou- County’s economic development director The airport did contract some outside ception that a general counsel has one client,” ple of decades, and Neuberger hadn’t been involved with counsel work until Neuberger was able to said Nelson, who stepped into his role about a Neuberger today is hire three young (and less expensive) at- either the hiring or firing, but was in year ago. “The challenge and opportunity lies in general counsel for the torneys who have expertise in subject ar- charge of defending the unlawful termi- Neuberger maintaining that first-rate accessibility across Wayne County Airport Au- eas such as construction and environ- nation lawsuit Mullin filed against the the firm.” thority, the public body that oversees gov- mental litigation. authority. An arbitrator’s decision in Being an insider provides a breadth of experi- ernance of Detroit Metropolitan Airport and “We do virtually all of our legal work in April 2013 awarded Mullin $712,300 and ence Nelson otherwise wouldn’t get. nearby Willow Run Airport. house,” she said. more than $98,000 for attorney’s fees. Because airport budgeting is based on That work includes construction docu- Neuberger joined the airport in 2004 “I enjoy being in a position to develop a deeper how much the airlines use the complex, mentation for massive airport projects, from the Chicago office of Foley & Lardner and stronger understanding of the firm than you and the carriers must make up any short- leases, ordinance preparation, bond dis- LLP, of which she had been a partner. Pri- could hope to develop being an outside counsel,” fall, there is constant pressure to keep closure, real estate and development or to that, she was with law firm Hopkins he said. “I’m not as much in a position of being a balanced books. transactions, she said. & Sutter from 1988 until its 2001 merger task-oriented lawyer as a strategic partner who Such budget pressure forced Neuberg- Metro Airport has 590 employees and a with Foley & Lardner. can help the client.” er to entirely remake her department $325 million budget. — Bill Shea — Doug Henze
THOMAS M. COOLEY LAW SCHOOL
Enroll Summer 2014 38 Graduate Courses Starting in May Focus Your Courses Include r1VCMJD$PNQBOZ%JTDMPTVSF Law Career r$BQUJWFTBOE)PMEJOH$PNQBOJFT with an advanced degree r4UBOEBSETBOE&UIJDTPG5BY1SBDUJDF r&$PNNFSDF r)PNFMBOEBOE/BUJPOBM4FDVSJUZ-BX Classes begin in May, September, and January r0OMJOF r0ODBNQVT(Auburn Hills, Lansing, Ann Arbor, and Grand Rapids) r1BSUUJNF GVMMUJNF PSHVFTUFOSPMMNFOU r8FFLFOETBOEFWFOJOHT r$PNQSFTTFEDPVSTFPQUJPOT Scan for information LL.M. Degrees Offered about our program. r$PSQPSBUF-BX'JOBODF r)PNFMBOE/BUJPOBM4FDVSJUZ-BX r*OTVSBODF-BX r*OUFMMFDUVBM1SPQFSUZ-BX r4FMG%JSFDUFE cooley.edu/ r5BY gradprograms Faculty members for Cooley’s LL.M. programs (front from left) Lisa Contact Cathy McCollum at [email protected] DeMoss, Gina M. Torielli, E. Christopher Johnson, Jr., Joni Larson, (back) Michael C.H. McDaniel, James Carey, David C. Berry, and or (517) 371-5140, ext. 2703. Gerald T. Tschura 20140428-NEWS--0014-NAT-CCI-CD_-- 4/25/2014 11:14 AM Page 1
Page 14 CRAIN’S DETROIT BUSINESS April 28, 2014 Focus: General and In-House Counsel Awards WINNER: $10 MILLION – $100 MILLION FINALIST: $10M–$100M the sea of small-type language on the digi- IRA SCHLUSSEL, 46 tal sites created by HelloWorld for its JOHN BOMMARITO, 46 Title: Senior vice president, general We were trying to keep clients and their marketing. Title: Corporate counsel, Attorneys Title Agency counsel, HelloWorld Inc., Pleasant “ “That’s the core of the job,” said Schlus- LLC, Farmington Hills Ridge (the rebranding) quiet. sel, who also is a hockey player and won a Recent achievement: Helping the company Recent achievement: Overseeing the gold medal at Israel’s Maccabiah Games expand into new Midwest markets rebranding of the company — in secret We had to modify all our in 2013. For example, he and his staff have to John Bommarito joined Attorneys Title Agency t has been a busy couple of years for internal contracts to ensure all campaigns comply with new LLC in 2009 and has seen the company more than Ira Schlussel and his legal team at match the new name. disclosures required under the 1991 Tele- double in size to 420 employees and 35-plus of- I the Pleasant Ridge-based digital phone Consumer Protection Act, which fices in Michigan, Ohio and Indiana. marketing firm HelloWorld Inc. ” governs telemarketing calls. In the past 18 months, the University of Dayton Ira Schlussel That’s because it wasn’t HelloWorld HelloWorld also has to avoid running and University of Detroit Mercy School of Law grad- until January. necticut-based private equity firm Catter- any sweepstakes that qualifies as a lot- uate has won summary dis- For the 15 years be- ton Partners Corp. bought ePrize for $100 tery — which state governments have a position in a pair of cases fore that, the company million. monopoly over. that have saved Attorneys Ti- had been known as Schlussel was associate general coun- Additionally, HelloWorld does cam- tle Agency about $500,000. ePrize Inc., which had sel then — he was promoted to his current paigns in 44 countries. Schlussel out- Bommarito said his great- established itself as job early last year — and did much of the sources some of the legal work in those est accomplishments in the one of the premier com- due diligence work required in the acqui- nations to ensure compliance. past year were helping the panies in the world for sition. That included producing docu- HelloWorld clients include the Coca- company expand into Ohio managing sweepstakes ments, contracts and other paperwork. Cola Co., Microsoft Corp., The Gap Inc., Live (January 2013) and Indiana and customer loyalty “We were asked to provide a ton of in- Nation Worldwide Inc., Yahoo Inc. and Procter (summer 2013). programs. formation,” he said. “This was a complete & Gamble Co. Revenue last year totaled $65 Bommarito He views his job not as one Schlussel As general counsel, entity change. This was the behemoth million. where he helps Attorneys Ti- Schlussel oversaw the deal and required a lot more significant HelloWorld has 400 employees. tle Agency, the title insurance and services com- company’s rebranding over the past year. work” than the rebranding. EPrize was launched in 1999 by Josh pany owned by attorney David Trott of Trott & It required legal filings, new credit cards In the months after the acquisition by Linkner, who sold his stake when Catter- Trott PC, avoid risk but instead as one where and contracts with the HelloWorld name; Catterton, ePrize bought three marketing ton bought the company. Schlussel was helps the firm manage it. The company has $45 explanation briefings for clients; and oth- services companies in deals Schlussel promoted after his predecessor followed million in annual revenue, er changes — all done in secrecy. had to handle. That required conducting Linkner last year to Detroit Venture Part- “My job is to analyze situations and solve “We were trying to keep that quiet,” all the legal due diligence, reviewing doc- ners LLC. problems to minimize risk,” he said. “It doesn’t Schlussel said. “We had to modify all our uments and analyzing risk assessment, HelloWorld is headquartered in a mean you get rid of it entirely.” internal contracts to match the new along with negotiating the purchase 46,000-square-foot former brewery east of The Detroit-area native was previously in pri- name.” agreements before integrating all the con- Woodward Avenue near I-696. The compa- vate practice. Before that, he was state council The rebranding wasn’t especially chal- tracts and employees into the business. ny has offices in New York City, Chicago, for LandAmerica Financial Group Inc. That fol- lenging because it wasn’t a change in le- Schlussel’s day-to-day work involves Los Angeles, Phoenix, Seattle and lowed a job as staff attorney at Greco Title Co., gal entity. navigating the federal and state laws gov- Nashville, Tenn. where he started as a law school student. That came in August 2012, when Con- erning sweepstakes and contest rules — — Bill Shea — Kirk Pinho 20140428-NEWS--0015-NAT-CCI-CD_-- 4/25/2014 11:13 AM Page 1
April 28, 2014 CRAIN’S DETROIT BUSINESS Page 15 Focus: General and In-House Counsel Awards WINNER: RISING STAR WINNER: UNDER $10 MILLION TAMIKA MAYES, 38 “That is a critical part of the GM when a home flood or fire oc- strategy,” Mayes said of the growing JESSICA MCGRATH, 31 curs, and the laundry pickup Title: Senior attorney, U.S. tax I’m always business unit. And “there is no guid- Title: In-house counsel, service 1-800-DryClean was a counsel group, General Motors “ ance on how to solve those issues.” Certified Restoration challenge McGrath welcomed. Co. thinking about what is The keys to her success, Mayes Drycleaning Network The companies generated com- Recent achievement: Resolved said, are keeping in mind how deci- Recent achievement: Handled bined revenue of about $8.5 mil- 10 cases in five states, saving the big picture. sions affect key stakeholders and all aspects of the acquisition lion in 2013. millions of dollars ” being able to communicate techni- of a franchise network “It was interesting to be part Tamika Mayes cal concepts to her business coun- of it,” McGrath said. “You’re hortly after arriving at Gen- terparts. hen Berkley-based Certi- kind of the central person in eral Motors Co., Tamika “I’m always thinking about what fied Restoration Dryclean- making sure you submit all the S Mayes inherited a mess that attorney for law firms in New York is the big picture and what does the W ing Network opted to ac- City and Chicago, the GM position compliance documents. I feel needed cleaning up — a bundle of quire another company in its is just the latest challenge accepted. client need,” she said. fortunate I could be instrumen- state income, franchise and employ- industry in 2012, Jessica Mc- “The challenging thing is just the In addition to her work, Mayes tal” in the transaction. ment tax cases Grath found herself awash in complexity of the business,” Mayes devotes time to professional and Although McGrath finds the which had been civic organizations. She is a tax paperwork. unresolved for said of the position, which she took legal work interesting, she tries committee chairwoman for the “There was several years. on 3½ years ago. “It’s a large, global to keep in mind the people she’s State Bar of Michigan, a board mem- a lot of due Two years lat- company, and there are tons of affecting. ber of the Michigan Women’s Tax As- diligence to er, she had parts to each decision.” “Every decision I make im- sociation and a mentor for the see if we wrapped up 10 of Mayes said she finds the diversi- pacts our franchisee network,” Women of Tomorrow at Osborn Col- could bring those cases in ty of projects, with a global spin, the she said. “I really do love work- most enjoyable part of the job. legiate Academy of Mathematcs, Sci- them on (and) five states — the ing with people. At a lot of firms “I love the opportunity to see U.S. ence and Technology in the Detroit there’s a lot of bulk of the bun- — I started at a firm — you don’t issues, and then I have an opportu- Public Schools. disclosure dle — generating work with the clients every Mayes $50 million in nity to see how it plays out in a dif- “At the core of who I am is this regulations day.” savings, refunds or risk reduction ferent environment,” she said. community impact,” Mayes said. McGrath in franchis- Supporting those clients is for the company. Mayes accom- More recently, Mayes has taken “(I have) a deep-rooted commitment ing,” said Mc- plished that while also overseeing a on tax responsibilities for GM’s to the development of young Grath, who oversaw the acquisi- important from a business complex employment tax settle- global connected consumer busi- women, entrepreneurs and commu- tion of 1-800-DryClean. “It standpoint, too. CRDN’s rev- ment with the federal government. ness unit — which includes OnStar nities. GM is very committed to em- doubled my job.” enue is tied closely to that of its For Mayes, who has worked as a — in markets including Mexico, ployee-community engagement.” But the marriage of CRDN, franchisees. CPA at Ernst & Young LLP and as an Canada and China. — Doug Henze which does textile restoration — Doug Henze
FINALIST: RISING STAR helping the com- KIMBERLY COLEMAN, 32 pany. Title: Vice president/attorney, “When we’ve Flagstar Bancorp Inc. had a huge pro- Recent achievement: Handled ject come in, I’ve the divestiture of a company jumped on nu- subsidiary herself merous calls over the week- hen Kimberly Coleman end,” she said. took her first job after law “I’m generally W school, she had no idea it in the office one Coleman would turn into three. day a weekend.” But when two senior attorneys Coleman, who also accepts pro left the company during Coleman’s bono work for nonprofits, said she first couple of years at Flagstar Ban- puts in the extra hours because corp Inc., she stepped up to take on she enjoys everything about her their responsibilities. job — from negotiating and draft- “I’m a younger attorney, but I’m ing legal language to managing functioning at a more senior lev- paralegals. And she’s driven to as- el,” said Coleman, who joined sist colleagues across Flagstar. Flagstar 3½ years ago. “I generally “I love all of my clients — which work between 70 and 80 hours a are the different business units,” week. I’m happy to do it.” she said. “There are a lot of person- Coleman considers dedication alities, but we all get along.” and drive her biggest assets in — Doug Henze
FINALIST: RISING STAR appreciated hav- YVETTE VANRIPER, 45 ing that regular conversation THE STRENGTH Title: Corporate securities counsel and assistant secretary, with us.” ® Masco Corp. In 2012, a year BEHIND OUR CLIENTS Recent achievement: Started a after giving the “say-on-pay” shareholder outreach program to Business leaders turn to Plunkett Cooney for determined, get feedback on executive compensation a compensation thumbs-down, distinctive and fearless legal advice to achieve the right result 95 percent of from the boardroom to the courtroom. aving watched shareholders VanRiper shareholders ap- turn down a “say-on-pay” ex- proved it. The Q Banking & Finance QBusiness Law Q Insurance Law ecutive compensation pro- proposal allows a company’s H QLabor & Employment Law QBusiness Litigation posal in 2011, Masco Corp. knew it shareholders to vote on compensa- needed to improve communication. tion packages for executives. QConstruction Law QMergers & Acquisitions Enter Yvette VanRiper, who For VanRiper, it’s all part of the QReal Estate Law QHealthcare Law started an outreach program she job, which also includes securities considers her biggest contribution compliance work and governance. to the Taylor-based company. “The most challenging thing is ATTORNEYS & COUNSELORS AT LAW Twice-a-year, company leaders keeping on top of everything,” said Randall R. Hall contact Masco’s largest sharehold- VanRiper, who left private prac- ers to learn their thoughts on is- tice for her first in-house position. Business Law Department Leader sues affecting the corporation. The mother of five, VanRiper 248.901.4002 | [email protected] “It’s just been really valuable for said her organizational skills al- those board members to hear what low her to balance her corporate our shareholders are saying,” she duties with her personal life. WWW.PLUNKETTCOONEY.COM said. “The shareholders have really — Doug Henze 20140428-NEWS--0016-NAT-CCI-CD_-- 4/25/2014 11:13 AM Page 1
Page 16 CRAIN’S DETROIT BUSINESS April 28, 2014 Focus: General and In-House Counsel Awards Business, legal issues find common ground at Crain’s summit
BY DANIEL DUGGAN the Dentons law Hynes has gone on to hold a she’ll make at the event. CRAIN’S DETROIT BUSINESS THE EVENT firm in Chicago. number of general counsel posi- “I’ve been in five different in- In 1979, she tions at companies that span mul- dustries,” Hynes said. “Don’t One of the places where busi- When: May 13, 2 p.m. was the first tiple industries. She was the first think that just because you work ness issues meet legal issues is the Where: Westin Book Cadillac, woman to hold female officer of Sundstrand Corp. — in one industry, you are stuck in it Detroit office of the general counsel. And the position of now UTC Aerospace Systems. for life. Cost: $100 bringing this group of executives general counsel She was also the first female “Don’t be befuddled by a differ- together has been the focus of the Register: Crainsdetroit.com/events at a Fortune 500 member of the Chicago-based North ent building.” Crain’s General and In-House company, CCH Shore General Counsel Association Overall, she said, the focus Counsel Summit, to be held May 13 House Counsel Awards. The win- Inc., a River- and the first female officer of the shouldn’t be what you know, but at the Westin Book Cadillac. ners and finalists are profiled on Hynes woods, Ill.-based Chicago Crime Commission. what you can do. Now in its fourth year, the event Pages 11-15. Last year’s event provider of information services, Those experiences — both as a “Think about how you create will highlight both business and drew 311 people. software and tools for tax, account- woman GC, as well as a GC at com- value,” he said. “And how you can legal issues. It will also honor the This year’s keynote speaker is ing, legal and business profession- panies in different industries — be accountable.” winners of the General and In- Mary Ann Hynes, senior counsel at als. will be the basis of the comments A series of panel discussions on hot topics in the legal community — related to in-house attorneys, specifically — will also be held at the event: Employment law in the smart- phone era This panel will cover ways that personal smartphones are being used in employment law situa- tions. Strategies that GCs use to approach issues of personal sur- veillance will be covered, as well as other technology-related issues GCs need to know about. Intellectual Property: Strategies to battle the patent trolls Companies have built a busi- ness model around so-called “patent trolling,” buying a portfo- lio of patents and then using them to sue companies that may be us- ing them. This panel will examine the ways that GCs are defending their companies and how they might be successful at fending off these suits. M&A: How to balance the busi- ness side of deals with the legal is- sues While GCs typically evaluate the legal terms of an M&A deal, there are many more issues at play. This panel will delve into the is- sues other than finances that need to be considered in an M&A deal, and most importantly, how GCs can tactfully play a role in the “non-financial” elements of the deal. Data protection meets globaliza- tion This panel will delve into strate- gies about how personal data and information are segmented and protected, and how companies can remain in compliance in the differ- ent countries where they operate. No country seems to have a simi- lar policy. How to speak “business” Looking at the business skills for in-house attorneys — going be- yond the legal issues that emerge in the C-suite. It will discuss con- cepts for in-house counsel that re- flect real-world managerial deci- sion-making. The event is being held in part- nership with the Association of Cor- porate Counsel, Michigan chapter and the State Bar of Michigan-Busi- ness Law Section In-House Counsel and in cooperation with the Oak- land County Bar Association and the Society of Corporate Secretaries & Governance Professionals. Title sponsor of the event is Ogle- tree, Deakins, Nash, Smoak & Stewart PC. Daniel Duggan: (313) 446-0414, [email protected]. Twitter: @d_duggan 20140428-NEWS--0017,0018,0019-NAT-CCI-CD_-- 4/24/2014 4:46 PM Page 1
April 28, 2014 CRAIN’S DETROIT BUSINESS Page 17 Focus: General and In-House Counsel Awards
BOB CHASE Susan Diehl, vice president-legal and general counsel at NSK Americas Inc., has worked as a general counsel for three companies. Suite dreams Growing number of aspiring female general counsels find a happy ending
BY GARY ANGLEBRANDT Page 19 for more numbers.) SPECIAL TO CRAIN’S DETROIT BUSINESS The Association of Corporate Coun- sel’s Michigan chapter also provid- It’s no secret that women are un- ed numbers, showing that among derrepresented in the C suites of its 160 general counsel members, big American companies. 41 are women, or 26 percent. There is one door, though, that The numbers aren’t grand. As women apparently have found Inforum’s report notes, “Despite more open to them than others. earning more than 40 percent of The perfect That is the door of the general U.S. law school degrees since the counsel’s office. mid-1980s, a disproportionately The Minority Corporate Counsel As- low number of women today hold sociation in Washington, D.C., every combination top legal positions in major corpo- year looks at American public com- rations and law firms.” panies’ general counsel roles. The But they are an improvement most recent survey, released in Sep- over other executive officer num- of size tember, counted 105 women holding bers. down the general counsel role Women accounted for just 4.6 per- among Fortune 500 companies, or cent of CEOs at all Fortune 500 com- 21 percent of the whole. panies, according to a study re- and value The pattern holds in Michigan. leased in January by Catalyst, a New There are three women general York-based nonprofit researcher of counsels among the state’s 16 For- workplace issues. Women held 14.6 tune 500 companies, or 18.7 per- percent of executive officer posi- cent, the same ballpark as the na- tions as a whole at Fortune 500 com- tional ratio. panies, according to a Catalyst re- This is according to research re- port from December. quested by Crain’s from Inforum, a At Michigan’s 16 Fortune 500 Detroit-based professional companies, women held 10.8 per- women’s group, and Wayne State cent of executive officer roles over- Jaffe’s attorneys deliver the client focus and value University’s School of Business Ad- all, according to last year’s Info- ministration, which together put out rum report. expected at a small firm, yet are backed by the Inforum’s Michigan Women’s So why are women gaining more capabilities and depth of experience enjoyed at a Leadership Index last year. For C-suite access through the general this story, Inforum and the WSU counsel office than other offices? large firm—providing the perfect combination for SOUTHFIELD • DETROIT • ANN ARBOR researchers this month examined It’s tempting to ascribe a single our clients, while saving time and money. NAPLES • PHILADELPHIA general counsel positions among cause — such as the work of a gen- Michigan’s 50 largest companies www.jaffelaw.com by market capitalization. (See See Suite, Page 18 20140428-NEWS--0017,0018,0019-NAT-CCI-CD_-- 4/24/2014 2:28 PM Page 2
Page 18 CRAIN’S DETROIT BUSINESS April 28, 2014 Focus: General and In-House Counsel Awards The Secret Suite: Making the grade of our ■ From Page 17 eral counsel allows more leeway “They’re seeing the talent out Success for raising children — but it’s most there,” said Hynes, senior counsel likely a combination of factors, in the Chicago office of global law said Terry Barclay, president and firm Dentons. CEO of Inforum. Hynes wouldn’t venture any ex- One factor is the number of planations on something as inher- First: provide exceptional value to clients through excellent women earning college degrees ently complex as the decision-mak- makes it more likely that they’re ing behind hiring across legal work and outstanding client service. going to make headway some- industries. But she was happy to where, and with women soaking torpedo a few. Second: know everything there is to know about your clients’ up 40 percent of law school degrees The idea that companies use the businesses. This lets you rise above mere legal advisor to since the 1980s, it’s no surprise general counsel job as a place to that it’s a legal position where show diversity in their executives is trusted strategic partner. that’s happening. ridiculous, she said. “It’s a very spe- Other C-suite residents tradi- cial role; it’s being a confidante of Third: be relentless in serving clients’ needs. Make “above and tionally have come from the ranks the board and the chairman,” Hynes of operations, Barclay said. “Most said. “It’s one of the most sensitive beyond” your everyday mission. people going into the general coun- positions in the corporation.” sel role are not from an opera- Smooth chemistry needs to exist How may we serve you? tional background,” she said, leav- between the general counsel and ing a path open to women armed CEO to deal with sensitive issues. with law degrees and experience. With so much at stake, diversity Exceptional service. Dykema delivers. Outsider status checklists are a could be another tertiary consid- factor. So many women eration at best, For boards and “ Hynes said. CEOs seek- I know who Another ca- ing new se- nard, she be- nior-level have moved lieves, is that www.dykema.com opinions — women are not perhaps to risk-takers and California | Illinois | Michigan | Minnesota | Texas | Washington, D.C. into the offset all the therefore more © 2014 Dykema Gossett PLLC Attorney Advertising guys com- general suited to a pro- ing up from tective legal operations counsel role role, as opposed — it makes to chief execu- sense to are really tive. The gener- look to the general al counsel counsel slot, Barclay well-equipped to works hand-in- said. Candidates hand with other likely will have advise on strategy company execu- worked for a few tives on matters companies in the because of the depth like acquisi- same industry or as of experience tions, growth attorneys for firms and competitive specializing in that they’ve had. strategies. They industry — nice ” are front and qualities to have for Terry Barclay, Inforum center when it a role that has in- comes to mak- FASTER. SMARTER. BETTER. creasingly taken on ing deals. This more strategic responsibilities. is not territory for the risk-averse, “So many women I know who Hynes said. have moved into the general coun- “If you want to be risk-averse, sel role are really well-equipped to stay at home and lock the door,” advise on strategy because of the Hynes said. depth of experience they’ve had,” And then there’s the theory that Barclay said. women attorneys gravitate to gen- Gerald Meyers, adjunct profes- eral counsel because the position sor of management and organiza- is more of a 9-to-5 job, i.e., one that tions at University of Michigan’s Ross leaves room for child-rearing, School of Business and former whereas cutthroat law firms de- chairman of American Motors mand all of a person’s time. Hynes’ Corp., said that if he had to take an experience as a general counsel educated guess as to why there are says otherwise. Working in the C- more women general counsels suite of major corporations is a 24- than other C-suite jobs, it’s be- hour-a day job involving people cause general counsels are re- around the world. quired to have highly disciplined “I have people who have needs in and specialized knowledge. Thailand and Australia. I have to be Women can increase their odds there to meet their needs in the mid- of getting the job by obtaining that dle of the night,” Hynes said. knowledge, whereas the process Meyers also discounted the theo- for landing a CEO title is murkier. ry that women are risk-averse, but “It’s a little different than the said the perception that they are CEO job. There isn’t a single disci- might play into hiring decisions. Support for the lifecycle of your case: pline that’s dominant; they come “For the general counsel role, • Computer Forensics • Expert Testimony • Video Services and Video-Conferencing from all different disciplines,” you’re not looking for a risk-taker. • Electronic Discovery • Demonstrative Evidence & Trial Boards • Hosted Image and Native File Meyers said. That person’s job is to protect • Fixed Price Meet & Confer Consulting • Paralegal On-Call Support Document Review Mary Ann Hynes, an industry stakeholders,” Meyers said. • Trial Presentation Services • Contract $ttorney Document 5evieZ Stafˉng speaker who has served as general Susan Diehl, vice president-le- • Copy/Scan/Print Services • High-Tech Court Reporting counsel to several global corpora- gal and general counsel at NSK tions and is credited as the first Americas Inc. in Ann Arbor, has woman general counsel of any For- worked as general counsel for tune 500 company, said the main three companies. She said people driver behind a general counsel enter the field and are hired for all THE POWER TO WIN hiring decision is the quality of the sorts of reasons, many of them Call us today 248.213.1500 | [email protected] | www.computingsource.com candidate. Other factors stay in having to do with particular pres- the background as companies seek business-savvy people. See Next Page 20140428-NEWS--0017,0018,0019-NAT-CCI-CD_-- 4/24/2014 4:46 PM Page 3
April 28, 2014 CRAIN’S DETROIT BUSINESS Page 19 Focus: General and In-House Counsel Awards Where women stand in Fortune firms The report from Inforum and The number of women holding CONGRATULATIONS TO Wayne State University looked general counsel roles at Fortune at Michigan’s 50 largest compa- 500 companies in the entire coun- nies by market capitalization. Of try was 105, according to last those, 16 were in the Fortune 500 year’s survey from the Minority and 10 were in the Fortune 501- Corporate Counsel Association. Yvette VanRiper 1000. Women held six, or 12 per- That figure was down from 108 cent, of the general counsel posi- the year before but up from 92 in tions out of the total 50 2008. FOR BEING RECOGNIZED AS A companies. Another 84 women held gener- Women held three, or 30 per- al counsel jobs in the Fortune cent, of the general counsel roles 501-1000 list, according to the Crain’s In-House Counsel Rising Star Finalist at Michigan’s 10 public compa- MCCA report. The percentage of nies in the Fortune 501-1000 list. women holding general council At the other 24 Michigan pub- positions in the entire Fortune lic companies not in the Fortune 1000 was 18.9 percent. YOUR FRIENDS AT 1000, two women held general Spencer Stuart, a Chicago- counsel positions. Inforum’s based executive recruiting com- Women’s Leadership Index last pany, conducts an annual survey year reported that women held of CFO roles. Last year’s tally for 12.5 percent of all executive offi- women holding that role at For- cer positions at Michigan’s top tune 500 companies came to 11.4 100 public companies. percent.
From Previous Page spect to other operational func- tions like CFO, COO — the sures on a company at the time. pipeline just isn’t there yet.” Diehl was drawn to the work by Other executive roles could fol- her love of business. “I always was low lead of the general counsel attracted to being an in-house slot. Meyers said women students lawyer because I was a business make up almost half the students junkie,” she said. for his MBA courses. General counsels’ legal training “That’s new as of the last 15 to 20 gives them an edge in terms of per- years, more so in the last five to suasion, framing ar- 10,” he said. guments and quick- With rising ly learning new There are just numbers of things, she said. “ women with “Lawyers many more the right educa- have to do tion and experi- that all the women ence, other ex- time.” ecutive roles Diehl candidates should begin to said she has open. seen women that have “I do not sub- approach scribe to the at- in-house gotten the titude that it’s work be- bias holding it cause they experience down. I don’t think it’s 9-to-5 deny there’s work — but she’s necessary to really bias, but that’s seen men do that, overcome by too. In reality, her perform well in a competence,” work means travel- role like the general Meyers said. ing 60 percent of the It also has to time and working counsel. be said that “partners’ hours” of ” while women 16 to 17 hours a day. might be show- Aleksandra Miziolek, Anecdotally, she ing progress in Cooper-Standard hears from other general counsel women in her field jobs, the num- that they don’t always find the law bers are still pretty low. firm life to be fulfilling, especially Those doing the hiring tend to those who prefer more collabora- go with what they know — them- tive work. “Law firm life is not al- selves, Barclay said. ways welcoming,” Diehl said. “I do not believe for a second Aleksandra Miziolek took her po- that anybody at a company wakes sition as general counsel and vice up and says, ‘I’m going to discrimi- president at Novi-based Cooper-Stan- nate today’,” she said. “We tend to dard Holdings Inc. in February after hire and promote mini-mes. We’re spending three decades at Dykema most comfortable around people Gossett PLLC, where she directed the most like us.” automotive industry practice. Since it takes extra effort to over- Her industry experience was a come that tendency, the result is ex- big selling point, as was her M&A actly what one would expect. “It experience. That experience also tends to get more homogenous as means she moves easily in the you go up the ladder, and the num- male-heavy world of automotive, bers back that up,” Barclay said. so she hasn’t felt out of place work- Women now make up 58 percent ing among guys at her new job. of undergraduate degree and 60 Miziolek said there’s little mys- percent of graduate degree stu- tery behind the women general dents at Michigan schools, Barclay counsel numbers. said. As businesses compete for “It’s really pretty straightfor- talent, it would make sense that ward,” she said. “There are just they start looking at previously many more women candidates left-out groups. that have gotten the experience “I like to think we’re at a tipping necessary in order to really per- point where we see even more form well in a role like the general women step into these roles,” she counsel role. The pipeline with re- said. DBpageAD_DBpageAD.qxd 4/21/2014 11:33 AM Page 1 20140428-NEWS--0021-NAT-CCI-CD_-- 4/24/2014 4:00 PM Page 1
April 28, 2014 CRAIN’S DETROIT BUSINESS Page 21
CRAIN'S LIST: LARGEST LAW FIRMS Ranked by number of attorneys in Southeast Michigan Total local Company attorneys Of Address Jan. 2014/ Partners Associates Counsel Paralegal Michigan Worldwide Rank Phone; website Top local executive 2013 2014 2014 2014 2014 Jan. 2014 Jan. 2014 Representative clients Honigman Miller Schwartz and Cohn LLP David Foltyn 205 162 36 10 27 238 238 BlackEagle Partners LLC, Detroit Institute of Arts, General 2290 First National Building, 660 Woodward Ave., Detroit chairman and CEO 188 Motors Co., Huron Capital Partners LLC, Kellogg Co., Ramco- 1. 48226-3506 Gershenson Properties Trust, Rock Financial/Quicken Loans (313) 465-7000; www.honigman.com Inc./Rockbridge Growth Equity LLC, Taubman, Trinity Health, and Village Green Dickinson Wright PLLC William Burgess 165 133 32 NA NA 205 369 N/A 2. 500 Woodward Ave., Suite 4000, Detroit 48226 CEO 157 (313) 223-3500; www.dickinsonwright.com Dykema Gossett PLLC Peter Kellett 159 95 32 NA 15 190 358 Ford Motor Co., General Motors Co., Chrysler Group LLC, 3. 400 Renaissance Center, Detroit 48243 chairman and CEO 160 Compuware, Bank of America N.A., Citizens Bank, Oakwood (313) 568-6800; www.dykema.com Healthcare Inc, Fifth Third Bank, Internation Transmission Co. Miller, Canfield, Paddock and Stone PLC Michael McGee 141 91 24 11 34 189 230 Chrysler, Comerica, Ford, Detroit Edison, Meritor, Siemens, 4. 150 W. Jefferson Ave., Suite 2500, Detroit 48226-4415 CEO 169 Borg Warner (313) 963-6420; www.millercanfield.com Bodman PLC Ralph McDowell 132 92 34 17 18 136 136 Comerica Bank, Bank of America, Archdiocese of Detroit, Blue Sixth Floor at Ford Field, 1901 St. Antoine St., Detroit 48226 chairman 132 Cross Blue Shield of Michigan, Lear Corp., Ford family, Grede 5. (313) 259-7777; www.bodmanlaw.com Holdings LLC, Key Plastics LLC, Caraco Pharmaceutical Laboratories Ltd. Clark Hill PLC John Hern 126 NA NA 20 NA 153 295 NA 6. 500 Woodward Ave., Suite 3500, Detroit 48226 CEO 124 (313) 965-8300; www.clarkhill.com Butzel Long PC Justin Klimko 109 89 14 24 14 90 133 NA 7. 150 W. Jefferson Ave., Suite 100, Detroit 48226 president and managing NA (313) 225-7000; www.butzel.com shareholder Plunkett Cooney PC Henry Cooney 108 57 42 9 13 145 155 Bank of America, Huntington National Bank, First American 38505 Woodward Ave., Suite 2000, Bloomfield Hills 48304 president and CEO 104 Title Insurance Co., Beaumont Health System, Liberty Mutual 8. (248) 901-4000; www.plunkettcooney.com Insurance Co., Michigan Municipal League, PNC Financial Services Group. The Travelers Cos, Frankenmuth Mutual Insurance Co. Jaffe Raitt Heuer & Weiss PC Bill Sider 100 85 15 8 18 99 100 Sun Communities, Strength Capital Partners, Redico LLC, 9. 27777 Franklin Road, Suite 2500, Southfield 48034-8214 CEO and managing 100 Oppenheimer and Co. (248) 351-3000; www.jaffelaw.com partner Kitch Drutchas Wagner Mark Wisniewski 84 63 12 0 12 93 100 AIG, Ascension Health, Coverys, CVS Caremark, Detroit managing principal 81 Medical Center, HCR Manor Care Inc, Henry Ford Health Valitutti & Sherbrook P.C. System, Motor City Electric, Utica Insurance 10. 1 Woodward Ave., Suite 2400, Detroit 48226-5485 (313) 965-7900; www.kitch.com Trott & Trott PC Executive committee 73 NA NA NA NA 73 73 NA 11. 31440 Northwestern Hwy., Suite 200, Farmington Hills 48334 NA (248) 642-2515; www.trottlaw.com Brooks Kushman PC Mark Cantor 72 32 40 NA NA 72 76 NA 12. 1000 Town Center, 22nd Floor, Southfield 48075 president 65 (248) 358-4400; www.brookskushman.com Giarmarco, Mullins & Horton PC Executive committee 70 32 38 4 NA 70 70 NA 101 W. Big Beaver Road, 10th Floor Columbia Center, Troy 70 13. 48084-5280 (248) 457-7000; www.gmhlaw.com Howard & Howard Attorneys PLLC Mark Davis 67 47 16 6 7 67 122 BASF Corp., BMO Harris Bank N.A., Chrysler Group LLC, Dow 14. 450 W. Fourth St., Royal Oak 48067 president and CEO 67 Corning, Konami Gaming Inc., Magna Mirrors of America, (248) 645-1483; www.howardandhoward.com Sears Holdings Corp., ThyssenKrupp Harness Dickey Executive committee 62 45 17 1 6 62 105 NA 15. 5445 Corporate Drive, Suite 200, Troy 48098 60 (248) 641-1600; www.hdp.com Garan Lucow Miller PC John Gillooly 59 41 18 3 11 81 81 NA 16. 1000 Woodbridge Place, Detroit 48207 chairman of executive 58 (313) 446-1530; www.garanlucow.com committee Kerr, Russell and Weber PLC Executive committee 55 34 21 4 4 55 55 AVL Test Systems Inc., Michigan State Medical Society, 500 Woodward Ave., Suite 2500, Detroit 48226 54 Quantum Fuel Systems Technologies, Shanghai Zhongli 17. (313) 961-0200; www.kerr-russell.com Automobile Parts Co. Ltd, Volkswagen Group of America, Wade Trim Associates Inc. Secrest, Wardle, Lynch, Mark Morley and Bruce 54 NA NA NA NA 69 69 NA Truex NA 18. Hampton, Truex and Morley P.C. co-chairmen, executive 2600 Troy Center Drive, P.O. Box 5025, Troy 48007-5025 committee (248) 851-9500; www.secrestwardle.com Sullivan, Ward, Asher & Patton PC Anthony Asher 50 31 12 NA 3 50 50 Consumers Energy Co., City of Pontiac Policy & Fire, Health 25800 Northwestern Hwy., 1000 Maccabees Center, Southfield president and CEO 48 Pro/CNA, Iron Workers' Local No. 25, Level One Bank, 19. 48075-8412 MEEMIC, Nautilus Insurance Group, ProAssurance Insurance (248) 746-0700; www.swappc.com Co., Smithgroup LLC, Tenet Health Systems Maddin, Hauser, Roth & Heller, P.C. Mark Hauser 46 36 10 1 6 46 46 NA 28400 Northwestern Highway, Southfield 48034-1839 CFO; Michael Maddin 51 20. (248) 354-4030; www.maddinhauser.com president emeritus and Steven Sallen president Hall, Render, Killian, Heath & Lyman PLLC Kimberly Commins- 41 20 21 NA 1 41 165 St. John Providence Health System, Wayne State University 21. 201 W. Big Beaver Road, Suite 1200, Troy 48084 Tzoumakas 39 Physician Group, Genesys Health System, St. Mary's of (248) 740-7505; www.hallrender.com managing partner Michigan Collins, Einhorn, Farrell & Ulanoff PC Neil MacCallum 41 14 25 1 9 41 41 NA 4000 Town Center, Suite 909, Southfield 48075 chairman and Michael NA 21. (248) 355-4141; www.ceflawyers.com Sullivan president Zausmer, Kaufman, August, Mark Zausmer 37 12 25 NA 7 37 37 Ally Financial Inc., city of Dearborn, Electric Insurance Co, managing shareholder 37 EMC Insurance Co, ITC Holdings Corp., Pall Life Sciences, 23. Caldwell & Tayler P.C. Philadelphia Ins Co., State Farm Mutual Auto, Wal-Mart Stores 31700 Middlebelt Road, Suite 150, Farmington Hills 48334 Inc., SMART (248) 851-4111; www.zkac.com Warner Norcross & Judd LLP William Jansen 37 24 7 2 1 181 181 Amway Corp., Borg Warner, Consumers Energy Co., Dow 2000 Town Center, Suite 2700, Southfield 48075-1318 executive partner 34 Chemical, Fifth Third Bank, Mahle Industries Inc., Mercedes- 23. (248) 784-5000; www.wnj.com Benz Financial Services USA, Stryker Corp., Robert Bosch Corp., Whirlpool Corp. Kotz Sangster Wysocki PC Gregory Wysocki 35 4 4 0 5 35 35 BMT Aerospace USA Inc., Detroit Economic Growth Corp., 400 Renaissance Center, Suite 3400, Detroit 48243-1618 CEO and managing 34 Olga’s Kitchen, Peerless Steel Co., Skanska USA Building, The 25. (313) 259-8300; www.kotzsangster.com partner Salvation Army, Trico Products, TTi Global, Virginia Tile Co., ZF North America Inc.
This list is an approximate compilation of the largest law firms in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Total number of attorneys does not include "of counsel." It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the law firms. Firms with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. NA = not available. LIST RESEARCHED BY CAMILLE ROBINSON-PIPPEN 20140428-NEWS--0022-NAT-CCI-CD_-- 4/24/2014 2:24 PM Page 1
Page 22 CRAIN’S DETROIT BUSINESS April 28, 2014 More ‘smart’ vehicles join UM accident prevention study – walkers, too
BY DAVID SEDGWICK ly 3,000 cars, trucks, motorcycles munications system has worked equipped with communications pected to help federal regulators CRAIN NEWS SERVICE and bicycles in the northeast part well so far. For example, vehicles devices had a lower accident rate. determine whether all vehicles of Ann Arbor. were able to pick up signals from In theory, vehicle-to-vehicle should be equipped with transpon- The University of Michigan plans Phase 2 will be conducted dur- traffic lights and other vehicles at communications could help pre- ders to transmit their location to to triple the number of study vehi- ing the next two years throughout a greater distance than expected. vent rear-end crashes, accidents any nearby car or truck. cles outfitted with vehicle-to-vehi- Ann Arbor with a fleet of 9,000 ve- That suggests that fewer road- caused by lane changes and inter- The vehicles emit signals 10 cle communications, in the next hicles. This time, some pedestri- side transmitters would be needed, section crashes. Researchers are times per second via a short-range phase of a road test of equipment ans also will be given transmitters which would reduce costs if the studying the data to assess the communications channel similar to designed to prevent accidents. to see whether vehicles can spot system is adopted for real-world safety impact, Sayer noted. Wi-Fi. They have a range of 900 feet. The school’s Transportation Re- their locations. use, Sayer said. The road test, which the univer- Ford Motor Co., Mercedes-Benz search Institute is expanding the 18- James Sayer, a research scien- However, it is not yet known sity is conducting for the U.S. De- AG, General Motors Co., Toyota Mo- month test that has involved near- tist at the institute, said the com- whether the cars and trucks partment of Transportation, is ex- tor Corp., Honda Motor Co., Nissan Motor Co., Hyundai-Kia and Volkswa- gen contributed vehicles for the test. Although researchers still are poring over data gleaned from Phase 1, regulators and automak- ers have been cautiously upbeat. On Feb. 3, the National Highway Traffic Safety Administration issued a statement that it will begin tak- ing steps to enable vehicle-to-vehi- cle communication technology. “By helping drivers avoid crash- FINANCIAL SOLUTIONS es, this technology will play a key role in improving the way people UILT ON ENERATIONS OF RUST B G T get where they need to go,” said U.S. Transportation Secretary An- thony Foxx. • Insurance Meanwhile, automakers and sup- pliers view vehicle-to-vehicle com- • Employee Benefits munications as a key technology for Retirement Planning autonomous vehicles. A Chicago • supplier of navigation maps called Here is preparing to introduce de- tailed road maps that are accurate 535 Griswold Street, Suite 1600 • Detroit, MI 48226 • www.lovascogroup.com • 313.394.1700 within a few centimeters.
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IF YOUR WORKPLACE IS COOL, NOMINATE IT Crain’s biennial Cool Places to Work in Michigan awards returns ContinuityTrusted for 75 years. y this year, and once again Crain’s is working with Best Companies Group We’ll be here for generations. of Harrisburg, Pa. The competition has two parts: one questionnaire for employers, another for employees. The Schechter Wealth is an combined, weighted results will determine who qualifies for Cool investment advisory and advance Places designation. Best Companies supplies all life insurance design firm. participating companies — regardless of whether they win the Cool Places recognition — with a Best Companies Group employee One of a few firms nationally feedback report based on employee responses to the 72- that has a multi-disciplined team question survey. The report can help company executives identify consisting of one or more strengths and weaknesses in their company culture and practices. JDs, CPAs, LLMs, CFAs, CLUs, To be considered for Cool Places to Work in Michigan, companies CAPs, MBAs, PFS and ChFCs must register at www.coolplacestoworkmi.com by providing advice on a wide variety May 23. Other important dates, samples of the surveys and other of financial issues information are on the website. Once registered, companies will be that wealthy families face. invited to participate in the surveys. Businesses and nonprofits can apply. Applicants must have a minimum of 15 employees working in Michigan and have been in business at least one year, among other criteria. Companies pay a fee based on company size to Best Companies to cover survey costs. The cost BIRMINGHAM, MI | NEW YORK, NY ranges from $610 to $895 for 248.731.9500 | WWW.SCHECHTERWEALTH.COM online surveying, and $765 to $1,660 for paper surveying. 20140428-NEWS--0023-NAT-CCI-CD_-- 4/24/2014 2:23 PM Page 1
April 28, 2014 CRAIN’S DETROIT BUSINESS Page 23 ProNAi Therapeutics closes on state’s largest VC funding round
BY TOM HENDERSON capital round ever raised by a bone marrow with cancer cells. CRAIN’S DETROIT BUSINESS state company. Congratulations Both had life expectancies of be- for Mina and her perseverance. tween six and 12 months before Plymouth Township-based This is a company that coulda, treatment. After six months of ProNAi Therapeutics Inc., a maker of woulda, shoulda died several treatment, both appeared to be dis- cancer drugs, has closed on what is times,” said Jim Adox, chairman ease-free. And, unlike chemothera- believed to be the largest single of the Ann Arbor-based Michigan py and radiation, PNT2258 appears round of venture capital funding Venture Capital Association and to have few side effects. in state history, a Series D round managing partner of the Ann Ar- After the conference, the New of $59.5 million. bor office of Wisconsin-based Ven- York City research and brokerage The previous record is believed ture Investors LLC. firm Sanford C. Bernstein & Co. LLC to have been set by Ann Arbor- Adox is not an investor in based QuatRx Pharmaceuticals Co., issued a report on the conference ProNAi. that included ProNAi on its list of which raised a round of $44 mil- The funding flurry and the pos- lion in 2007. No official database of four emerging companies to sible IPO grew out of a presenta- watch. venture capital funding exists. tion the company made in Decem- ProNAi is expected to be gearing The “NAi” in the name comes ber at the annual meeting of the from “DNAi,” a biotech shortcut up for an initial public offering lat- American Society of Hematology, a er this year. Company President for DNA interference, which major conference that drew 30,000 and CEO Mina Sooch declined refers to a way of using single to New Orleans. comment about an IPO. The U.S. strands of DNA to target specific The presentation was on results Securities and Exchange Commission disease-causing genes. In this case, of Phase 2 U.S. Food and Drug frowns on company executives PNT2258 targets the gene BCL2, Administration human trials of talking about possible public offer- which produces a cancer-causing ings. ProNAi’s lead product, a molecule protein. LON HORWEDEL with the working name of PNT2258. The round was led by Vivo Capi- Mina Sooch, president and CEO of ProNAi Therapeutics, calls the latest round of ProNAi was founded in 2004, tal of Palo Alto, Calif., one of nine Twelve patients had been enrolled though it traces its history to 2001 VC funding “a transformative milestone in ProNAi’s 10-year history. ... This who had non-Hodgkin lymphoma new investors in the company. financing will allow us to execute our plans with greater speed and broader reach.” and to the work of Reza Sheikhne- The oversubscribed round in- that had been treated unsuccessful- jad, a scientist at Wayne State Uni- cluded previous investors Milwau- to have attracted such an experi- that was easily surpassed. She said ly with conventional therapies, in- versity and the Detroit-based Bar- kee-based Capital Midwest Fund, enced and well-regarded group of then that the plan was to raise the cluding radiation. bara Ann Karmanos Cancer Institute. Apjohn Ventures of Kalamazoo, the investors. Their support of this fi- bigger round and then do an IPO At the time of the presentation, WSU and Karmanos declined to Amherst Fund of Ann Arbor and the nancing will allow us to execute before the end of the year. four of the 12 were in remission, pursue patents on Sheikhnejad’s Grand Angels of Grand Rapids. our plans with greater speed and That’s all dramatic news for a and in 10, the tumors shrank. One work, so he funded a patent him- “This financing is a transforma- broader reach.” company that had struggled for of those in remission was a woman self and assigned it to ProNAi, an tive milestone in ProNAi’s 10-year In January, ProNAi raised a VC funding for years and was consid- in her late 60s who had tumors in early portfolio company of Apjohn history and follows the clinical re- round of $12.5 million. At the time, ered on its deathbed more than her abdomen, neck and chest. An- Ventures. sults recently reported by the com- Sooch told Crain’s that the compa- once. other was a 40-year-old man whose Tom Henderson: (313) 446-0337, pany and its clinical investiga- ny would soon raise another “This is an impressive round tumor was so aggressive it had [email protected]. Twitter: tors,” said Sooch. “We are pleased round, with a target of $30 million and probably the biggest venture fractured his spine and packed his @tomhenderson2
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Page 24 CRAIN’S DETROIT BUSINESS April 28, 2014 Did You Know? Munder committed to region despite In a recent survey... sale, likely job losses, president says
BY TOM HENDERSON agement, and that’s a sweet spot project in two weeks. I don’t know CRAIN’S DETROIT BUSINESS for our industry. Being larger will if the layoffs will be over six make us so much more attractive months or a year. We have good The proposed sale of Birming- in terms of buying other firms.” people, and I’m sure some of them ham-based Munder Capital Manage- The deal won’t be without its will be offered jobs in Cleveland if 27% of responders thought a ment Inc. to an Ohio company will costs. In addition to its money they are willing to move.” gigabyte is a type of insect from result in some job losses locally, managers, Munder has about 80 Last November, a proposed sale but the wealth management firm employees who work in various of Munder was called off after offers South America. It’s actually a form remains committed to the region, back-office positions, including fell short of expectations. According according to President Jim human resources, information to published reports then, of measurement for the storage FitzGerald. technology Crestview had hoped to sell the FitzGerald will be- and phone company for as much as $400 mil- capacity of an electronic device. come vice chairman of We’re talking support. lion, or about 10 times EBIDTA a new company with “ FitzGerald (earnings before interest, deprecia- the expected about said half of tions, taxes and amortization), but close of the them or only got offers for as much as seven deal by the end opening an more could times EBIDTA, about $280 million. of the third lose their Crestview bought Munder, quarter. office in jobs or be which traces its roots to 1985, from “I’m staying asked to take Comerica Inc. in 2006 for $302 mil- here in De- downtown jobs in lion. Victory Capital is another of troit. I’m not Cleveland, Crestview’s portfolio companies. moving to Detroit. It where Victo- Senior executives and invest- Cleveland,” ry Capital ment management personnel from said FitzGer- won’t be big, employs Victory, Munder and Integrity will 42% of responders thought a ald. “We’re talking about 140. own about 20 percent of the new about opening an of- but it will be “When you entity. motherboard is a deck on a cruise fice in downtown De- put together Crestview will own about 60 per- troit. It won’t be big, important. two compa- cent, with New York City-based ship. It’s usually a circuit board that but it will be impor- ” nies of simi- Reverence Capital Partners LLC and tant. We want to build Jim FitzGerald, Munder Capital lar sizes, the State Teachers Retirement Sys- holds many of the key components this into a first-class there will be tem of Ohio owning the remaining wealth management firm, and De- overlap of similar positions. We 20 percent. of a computer. troit and Southeastern Michigan don’t know yet what that will Tom Henderson: (313) 446-0337, are a big part of that.” mean,” said FitzGerald. [email protected]. Twitter: The sale was announced April “We’ll start our transformation @tomhenderson2 16. Munder will be bought by Cleveland-based Victory Capital Holdings Inc. and merged with its subsidiary, Victory Capital Manage- ment Inc., into a new company whose name has yet to be deter- 7KHURDGWRWKHFRUQHURIÀFH mined. Terms of the deal were not dis- closed, but the deal value is expect- ed to approach the $400 million of responders thought*Information from Vouchercloud.net an 23% that New York City-based STARTS HERE. MP3 is a Star Wars robot. It’s Crestview Partners, a private-equity firm that is the majority owner of actually a common audio file. Munder, was asking last fall. The new company will have A business degree from about $37 billion under manage- Wayne State University ment. Munder has about $18.1 billion does more than under management, with more provide an academic than $4.5 billion of that by its sub- foundation for success sidiary, Integrity Asset Management LLC of Rocky River, Ohio. — it helps open doors. Victory, acquired from Key Bank Our graduates join a last year for $246 million, has strong network of more about $18.6 billion in assets under Don’t guess about management. than 31,000 successful FitzGerald told Crain’s his firm alumni across Metro will continue to operate under the Detroit and worldwide. technology. Consult with an expert. Munder brand and that it will re- tain its office in downtown Birm- Whether you’re landing Is your company’s IT where it should ingham. More importantly, he that first job or making said, all of the firm’s 45-50 invest- your way to the be? Call Vision Computer Solutions ment managers will retain their jobs and their investment indepen- executive suite, there’s at (248)349-6115. dence. likely a Wayne State Thomas Nantais, MBA ’82 Mention “Crains” “They will be able to run money alum nearby, ready Chief Operating Officer without any corporate involve- to help. Henry Ford Medical Group ment,” he said. for a free network evaluation. FitzGerald said his focus as vice chairman of the new firm will be to grow the company through acqui- sition. “I’m excited to be vice chairman of a firm with a strong focus on growth. The M&A side of the game www.vcsolutions.com is what I really enjoy and what I School of Business Administration (248) 349-6115 want to spend my time on,” he [email protected] business.wayne.edu 133 W Main St- Ste 112 said. Northville, MI 48167 “We’re really excited about this AIM HIGHER combination. This creates a firm with nearly $40 billion under man- 20140428-NEWS--0025-NAT-CCI-CD_-- 4/25/2014 1:08 PM Page 1
April 28, 2014 CRAIN’S DETROIT BUSINESS Page 25 PulteGroup winding down move to new Atlanta headquarters
BY KIRK PINHO enue in Bloomfield Hills. It’s not ian owns and leases out the build- bucks” were spent this quarter on chairman of the Detroit Blight Au- CRAIN’S DETROIT BUSINESS known how much space the com- ing. the relocation. thority. pany will continue to occupy. The At One Capital City Plaza in At- The Pulte family has not been PulteGroup formed in 1950 when The end is near for PulteGroup average lease rate there is $23.69 lanta, the average lease rate is involved in the leadership or oper- William Pulte, then 18, built a five- Inc.’s time as a Bloomfield Hills- per square foot, according to $30.50 per square foot. Orlando- ations of PulteGroup since room home near Detroit City based company, as it readies for a CoStar. based Parkway Properties Inc. William Pulte retired as chairman Airport; that home sold for $10,000. shift to Atlanta this summer. A voicemail left Thursday morn- bought the building for $78.6 mil- in 2010 at age 77, according to his In 1969, William J. Pulte Inc. became PulteGroup, one of the largest ing with Dennis Kateff, managing lion in 2004, according to CoStar. grandson, Bill Pulte, managing Pulte Home Corp. and went public. homebuilders in the nation, is director of leasing for Bloomfield During a PulteGroup earnings partner of Bloomfield Hills-based Kirk Pinho: (313) 446-0412, moving into the 475,000-square- Hills-based Kojaian Management call Thursday morning, Dugas private equity firm Pulte Capital [email protected]. Twitter: foot Class A office building called Corp., had not been returned. Koja- said “less than a couple million Partners LLC and the founder and @kirkpinhoCDB One Capital City Plaza, according to Washington, D.C.-based real es- tate information service CoStar Group Inc. The building features a coffee shop and deli, newsstand, an auto detail shop, security desk, un- PLATINUM STANDARD der-building parking and a confer- ence center, according to CoStar. FRACTIONALFRACTIONAL AND MANAGEDMANAGED BBUSINESSUSINESS AAVIATIONVIATION PRPROGRAMS.OGRAMS. The building’s main tenant is SERVING ALL SOUTHEASTERN MICHIGAN. Blue Cross Blue Shield of Georgia, at 228,480 square feet of space. Pulte- Group will be its second-largest tenant. The company will have 101,000 square feet total, said Jim Zeumer, vice president of investor relations and corporate communi- cations. BUSINESS CONDITIONS CAN CHANGE The company already occupies AS QUICKLY AS THE WEATHER. 24,000 square feet, into which it moved March 21, according to Zeumer. The lease of the remain- We can help. When businesses face the changing demands of ing square footage begins June 1. growth, purchasing goods, or making payroll, they require a strong, “A limited transition to the new yet flexible solution. Our asset-based lending solutions can be the office space has started, but the process will accelerate over the answer ... whatever the climate. summer as the building becomes fully available in June of this Contact me today! year,” Zeumer said. 888.999.8050 PulteGroup announced last May CORPORATEEAGLE.COM that it was moving south to “bring Matt Dekutoski us closer to our customers and a larger portion of our investment portfolio,” Richard Dugas Jr., the company’s chairman, president and CEO, said at the time of the an- nouncement. PulteGroup said at the time that, when fully staffed, it expects to have 300 to 350 employees based in Corporate Law Experience Atlanta. The company’s homebuilding operations will continue to be ® based in Bloomfield Hills, Zeumer In Your Corner. said, with 54 employees there unaf- fected by the move. “Corporate offices are moving to ■ Comprehensive corporate transactional Atlanta, but all of the functions as- practice including business planning sociated with building homes in Michigan remain here in Bloom- and startup. field Hills. We built over 500 homes in Michigan in 2013, so all ■ Corporate governance and finance, of the people associated with sourcing land, selling homes and venture capital, M&A. managing construction will still be here.” Zeumer said. ■ In Your Corner. PulteGroup has 166,000 square feet in a 225,000-square-foot Pulte Building at 100 Bloomfield Hills Parkway, south of East Long Lake Road and east of Woodward Av- “ Corporate offices are moving to Atlanta, but all of the functions associated with building homes in Michigan remain First Tier Ranking here in Bloomfield in Corporate Law Hills. ” ■ Metro Detroit ■ Grand Rapids ■ Kalamazoo ■ Grand Haven ■ Lansing Contact Rick Manczak at [email protected] Jim Zeumer, PulteGroup 20140428-NEWS--0026-NAT-CCI-CD_-- 4/25/2014 11:15 AM Page 1
Page 26 April 28, 2014 Biz gets {Our two cents.} to ask feds about export Sign up for a Plante Moran Webinar Plante Moran’s 2014 spring webinars deliver a heavy rule changes dose of the latest thinking about today’s critical business topics. Our CPE-approved* webinars cover BY CHRIS GAUTZ topics from cyber security to the latest tax laws. CRAIN’S DETROIT BUSINESS Double-booked? Don’t worry. Visit our archives A workshop in Detroit next and enjoy the presentation at your convenience. month will offer a rare chance for export businesses in the Midwest Sign up for a Plante Moran webinar this spring and to ask questions directly of federal find out why Plante Moran’s webinars offer export officials about changes to U.S. regulations. Significant changes to regula- a higher return on experience. tions take effect in June, including moving many controls over mili- tary items from the State Department to the Department of Commerce’s Bu- reau of Industry and Security. Exporters, trade and intellectual property lawyers, accountants in- volved in international business, university officials and logistics professionals are among those be- ing encouraged to attend the May Register at webinars.plantemoran.com 13-15 seminar. The event, “Complying with U.S. * Plante Moran is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor Export Controls and the Export of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors Control Reforms,” is being hosted may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org by the East Michigan Export District Council at the Gem and Century the- aters, 333 Madison Ave. The cost to attend the entire workshop is $495. For those who want to attend just the first two days, which are fo- cused on complying with U.S. ex- port controls, the cost is $375. Those THE MILLER LAW FIRM attending just on May 15, to attend an export control reform workshop, Changing the Odds in our Clients’ Favor will pay $175. All speakers will be from the Washington, D.C., headquarters of the BIS, the Office of Foreign Asset Control and U.S. Census — all re- sponsible for different aspects of export control. This gives partici- pants the opportunity to meet the regulators in person and ask ques- tions that might relate to specific issues at their own companies. Examples of problematic scenar- ios, according to conference orga- nizers: Understanding the reper- cussions of sending documents to colleagues who are traveling over- seas, a U.S. subsidiary sending sensitive information to a foreign parent company, and prohibitions on selling certain products to buy- ers in certain countries because of trade sanctions. The deadline to register for the event is May 9. Topics on the agenda include li- censing and record-keeping re- quirements, export clearance, en- The Miller Law Firm is Recognized forcement, changes under the as a Leader in Complex Business Litigation Export Control Reform initiative, and developing an export compli- ance program. Attendees who complete the Q Automotive Supplier Counseling Q Commercial and business lawsuits workshop will receive a Depart- ment of Commerce/Bureau of In- dustry and Security certificate of Q Employment litigation Q Shareholder and partnership disputes training. The event has also been ap- Referral fees honored on contingency fee cases proved for continuing legal educa- tion credit by the state of Ohio, and for credit by the National Customs Brokers & Forwarders Association of 950 West University Drive, Suite 300 248-841-2200 millerlawpc.com America. Rochester, Michigan 48307 For more information, visit www.eastmichigandec.org. 20140428-NEWS--0027-NAT-CCI-CD_-- 4/25/2014 12:11 PM Page 1
April 28, 2014 CRAIN’S DETROIT BUSINESS Page 27 Henry Ford among hospitals diversifying boards; more must do same, experts say
BY MELANIE EVANS Center for Healthcare Governance. tion has called for boards to reflect CRAIN NEWS SERVICE Over the next three decades, the the diversity of their communities U.S. will become a “nation of mi- within the next six years. The Henry Ford Health System’s norities,” with no one racial or Besides addressing health care hospitals and its health plan oper- ethnic group making up a majority disparities, having a more diverse ate in the racially and ethnically of the population, federal projec- board strengthens overall hospital diverse area of metro Detroit. But tions show. Minorities accounted operations. until about seven years ago, the for 37 percent of the U.S. popula- “The whole point of diversity is board members of the system and its subsidiaries were largely tion in 2012, and that will increase diversity of perspectives that will white, despite leadership’s desire to 57 percent by 2060. allow a richer mix of viewpoints to boost diversity. As the nation becomes more di- and sometimes differing views to “We weren’t verse, hospitals’ lack of diverse enhance the quality of delibera- making pro- leadership grows more troubling, tions and quality of decisions,” gress, frankly,” Schlichting said. “It’s like we’re said Lawrence Prybil, a professor said Nancy not paying attention to the world of health care leadership and asso- Schlichting, we live in,” she said. ciate dean at the University of Ken- Henry Ford’s Henry Ford’s systematic ap- tucky College of Public Health. CEO since 2003. proach to greater diversification of One reason for the sluggish In 2007, its governing boards is widely en- progress on diversity nationally is the Detroit- dorsed but too rarely practiced slow turnover among board mem- based system across the industry, governance bers, Combes said. Trustees and launched what experts say. Board diversity as- directors hold longer tenures than Schlichting is now a routine sessments, formal diversity poli- hospital CEOs — an average of review of how closely the makeup cies and measures to track nine years, compared with four of its boards reflects the commu- progress are years for CEOs. nities it serves. Two years later, it needed among More impor- established CEO compensation hospital boards If you never have tantly, boards too incentives tied to increased diver- and industry- “ often do not iden- sity in recruiting and hiring wide, they argue. a metric, then tify diversity as a throughout the organization. “If you never major goal, unlike Only 10 percent of the 900 hospi- have a metric, targets for finan- tals and health systems surveyed you’re never held then you’re never cial performance by the Institute for Diversity in held account- accountable. No. 1, and quality of Health Management in 2011 tied ex- ecutive pay to diversity goals. able,” said Con- you get what you care. In 2011, two Now, Henry Ford’s system-level nie Curran, out of three hospi- board meets annually with the founder and CEO measure. No. 2, you tals surveyed by chairs and nominating committee of Best on Board, a the Institute for members for each subsidiary national health get what you Diversity in board to review how closely mem- care board educa- Health Manage- bership reflects community diver- tion and certifica- reward. ment and the sity and how re- tion company. ” Health Research cruiting may Explicit financial Connie Curran, Best on Board and Educational Tired of going over budget? address gaps. incentives for ex- Trust had no for- “We were re- ecutives to ex- mal goal for their ally very inten- pand diversity boards to reflect Save money on your tional,” said also help. the diversity of Sandra Pierce, “No. 1, you get their patients. board chair- what you measure,” Curran said. Experts say boards should in- next project by giving us a woman for the “No. 2, you get what you reward.” corporate diversity goals into the Henry Ford The issue is about far more than annual self-assessment, bylaws call when you’re designing. Health System Pierce just numbers. Homogeneous and committee charters and tools and president boards that fail to reflect the demo- used for trustee and director re- and CEO of FirstMerit Bank. graphics of the communities they cruitment. The Center for Health- As a result, across all of its serve — by gender, race, ethnicity, care Governance encourages hos- boards, roughly 27 percent of Hen- age, geography and socioeconomic pitals to include diversity of race, ry Ford’s trustees now are non- status — risk excluding knowledge ethnicity, gender, profession and white, compared with 19 percent and experience that will better in- age in board member selection cri- in 2005. The share of female board form policies to improve patient teria. members has remained fairly care and provide services commu- Schlichting said she worked to steady at a little more than one- nities need, experts say. expand her own professional net- third. Increased diversity in gover- work by meeting with a broader But at many other nonprofit nance and management is one of group of diverse board candi- hospitals and health systems, not three strategies critical to elimi- dates. much has changed, governance ex- nating health care disparities, ac- “I did a lot of lunches,” she said. perts say. Last year, 47 percent of cording to a 2012 report issued by It’s a little like rolling a boulder nonprofit hospital governing boards lacked even a single racial the AHA, the Association of Ameri- downhill. As Henry Ford’s boards or ethnic minority member, ac- can Medical Colleges, the American become more diverse, the recruit- cording to the Governance Institute, College of Healthcare Executives, the ing network grows broader and a consulting group. While only 3 Catholic Health Association and more diverse. percent of boards lack female America’s Essential Hospitals. “There are always talented peo- members, the median board make- That report recommended that ple,” she said. up is three women among 13 board hospitals develop formal recruit- Still, limited board diversity Helping you find the most members. ing strategies, establish and track across the country won’t change as Two of the most recent American metrics, and promote cultural long as board members remain efficient and cost effective Hospital Association triennial gover- competency throughout the orga- comfortable with a largely ho- solution to building your next nance surveys found that minority nization to retain diverse re- mogenous membership and they project. board members accounted for 9 cruits. don’t establish clear diversity tar- percent of hospital directors and “Support and acknowledgment gets, Best on Board’s Curran said. trustees in 2009 and 10 percent in by the board and senior leadership So far, pressure for change from KERKSTRA PRECAST 2011. The latest survey is currently are required, and incorporating di- leadership has been lacking. underway. versity efforts as part of an organi- “Mostly, I think that ignorance is www.kerkstra.com Boards “in no way” reflect their zation’s strategic mission is criti- bliss,” she said. communities, said Dr. John cal,” the report said. Combes, president of the AHA’s The American Hospital Associa- From Modern Healthcare 20140428-NEWS--0028-NAT-CCI-CD_-- 4/25/2014 11:46 AM Page 1
Page 28 CRAIN’S DETROIT BUSINESS April 28, 2014 New Senate bill proposes minimum-wage alternative
As Democratic activists gather $5.15 an hour. That vote led sup- firm in Michigan by billings. signatures to place a measure on porters of a ballot measure at the Founded in 1999, Sterling is the November ballot to time to scrap their ef- most well-known for its behind- raise the minimum wage forts to ask voters to not the-scenes work on Senate Repub- in the state to $10.10 an Capitol only raise the minimum lican campaigns. Last year, Ster- hour, a separate effort to Briefings wage, but to enshrine an- ling won a Telly Award for its film raise the wage, but by nual cost-of-living ad- honoring Gerald Ford that was not nearly as much, is be- justments into the state shown at the 2012 Republican Na- ing led by a Republican constitution. tional Convention. state senator. Michigan State AFL-CIO Under the acquisition, Sterling Sen. Rick Jones, President Karla Swift will remain a separate company R-Grand Ledge, an- called Jones’ bill an in- and operate under its existing nounced Thursday he sult that will fail to keep brand, led by Managing Partner plans to introduce a bill working families out of Steve Linder and Partner and Politi- to raise the minimum poverty at the level he is cal Director Mark Pischea. It has six wage from $7.40 an hour Chris Gautz proposing, and will stifle employees. to $8.15. It would also the attempted ballot Terms of the deal were not dis- raise the tipped minimum wage by measure. closed. a dime, up from the current rate of Danielle Atkinson, a member of According to Lambert Edwards, $2.65 an hour. the Raise Michigan Coalition, which the acquisition of Sterling will in- The ballot measure would also is behind the ballot measure, said raise the tipped minimum wage, Jones’ bill would amount to only crease its revenue and staff by 20 but to the same $10.10-an-hour lev- an extra $30 a week for someone percent. el. Jones’ argument is that raising making the minimum wage. Swift Lambert Edwards was estab- the tipped minimum wage so high noted that the 10-cent increase in lished in 1998. This is the compa- could cause restaurants to lay off the tipped minimum wage would ny’s fifth acquisition, and second- workers — or close — due to the put just $4 more in the pocket of a largest, since 2004. The largest higher labor costs. waiter or waitress. took place in 2009 when it acquired Opponents see Jones’ bill, which Troy-based John Bailey & Associates, has not been officially introduced, which brought the firm into the as a way to counteract the ballot Lambert Edwards acquisition Lansing market due to its public measure, which he opposes. When Grand Rapids-based public rela- policy work. there was an attempt to raise the tions firm Lambert, Edwards & Asso- Lambert Edwards now has of- minimum wage in 2006, Republi- ciates announced last week its ac- fices in Grand Rapids, Lansing and can lawmakers relented and voted quisition of Lansing-based public Detroit. to raise the wage to its current lev- policy firm Sterling Corp., staking a el, over a period of years, from claim as the largest public affairs Economic optimism A quarterly survey from the Business Leaders for Michigan found its members are optimistic about the state’s economic potential, but less so about the national econo- my. Accord- ing to the survey, 54 54 percent percent ex- of Business pect the state’s econ- Leaders for omy to grow during the Michigan next six months, members with just 34 percent expect the holding that same belief state’s for the U.S. economy to economy. Not one of grow during the 80 execu- tives who the next six are mem- bers of the months. group indi- cated they BLM survey expected the economy to worsen in the next six months. Over the next 18 months, 71 per- cent of respondents said they ex- pected the state’s economy to grow, with 46 percent expecting the national economy to grow. The survey also found that more than half of the respondents are projecting their companies will add jobs and make capital invest- ments in the state. Chris Gautz: (517) 403-4403, [email protected]. Twitter: @chrisgautz 20140428-NEWS--0029-NAT-CCI-CD_-- 4/25/2014 12:05 PM Page 1
April 28, 2014 CRAIN’S DETROIT BUSINESS Page 29 State legislation would tighten controls on compounding pharmacies
BY CHRIS GAUTZ The bill received its first hear- “If that pharmacist had the for- macists Association, whose organi- ating in the state, and may get out CAPITOL CORRESPONDENT ing Thursday before the Senate mula and had been writing down zation includes those working in of the business. Health Policy committee, and sev- what he was doing, I firmly be- compounding pharmacies, said he Sen. James Marleau, R-Lake Compounding pharmacies in eral organizations testified in sup- lieve he would have caught his er- supports the bill as do the vast ma- Orion, chairman of the Health Pol- Michigan may soon operate under ror, and this gentleman would jority of compounding pharma- icy Committee, said the legislation a system of tighter controls and port of it. No one voiced opposi- regulations, and employees could tion. have been spared hospitaliza- cies. could be approved and sent to the face felony charges and prison sen- Kelly Elizondo, state assistant tion,” Elizondo said. “This is a However, he said there could be full Senate at next week’s hearing. tences if patients are injured or die attorney general, said she has han- very good bill that could save pa- unintended consequences, if some Chris Gautz: (517) 403-4403, because the new rules are not fol- dled a half-dozen licensing actions tient lives.” of the compounders feel the penal- [email protected]. Twitter: lowed. involving compounding pharma- The record keeping also would ties are not worth the risk of oper- @chrisgautz The aim behind Senate bills 704 cies, and the legislation could save assist investigators if there was an and 904, sponsored by Sen. Joe lives. outbreak of illness, so that it could Hune, R-Hamburg, is to prevent Compounding pharmacies cur- be traced back easily to the source. the kind of injuries and deaths suf- rently do not have to create or Part of the problem with the taint- fered in the state two years ago keep records of the calculations or ed steroid case in 2012 was that the when the Framingham, Mass.- formula used to fill a prescription, company in Massachusetts was al- based New England Compounding she said. A recent case she worked legedly acting as a manufacturer Center allegedly on involved a pharmacist at a com- of compounded pharmaceuticals sent tainted pounding pharmacy who made an — making batches of steroids and medicine to clin- error when mixing components of selling them to clinics across the ics around the the medication. country — rather than making a country. The pharmacist was supposed to specific drug linked to a prescrip- Michigan was include 0.6 grams of the active in- tion for a specific patient. the hardest hit gredient of the drug, and instead That practice was also found to when the taint- included 6 grams of the ingredient, be going on in Michigan after the ed steroids were resulting in great harm to the pa- Department of Licensing and Regula- LENDING delivered to tient, who had to be hospitalized, tory Affairs inspected every com- clinics in the to growing businesses Hune she said. pounding facility in the state after state, resulting The record-keeping require- the news came out about the taint- remains our top priority. in 264 infections and 19 deaths. Na- ed steroids. tionwide, the death count hit 64 ments in Hune’s bills would have Hitachi Business Finance made a difference, she said, be- Those pharmacies changed Hennessey Capital is now with 751 cases of fungal infections their practices, and many com- or meningitis, according to the cause it would require the phar- pounding facilities updated their Offering a world of ÁH[LEOH financing Centers for Disease Control and Pre- macist to record the strength, facilities to make sure they were vention. quantity and dosage of the com- RSWLRQV for companies that want to grow. compliant with state and federal “Hearing from constituents that pounded pharmaceutical, the for- laws following the inspections, ac- 248.658.1100 ZZZ.+LWDFKL%XVLQHVV)LQDQFH.FRP have been so adversely impacted mula used and the mixing instruc- by these tainted steroids, it’s the tions, all ingredients, the date of cording to LARA, which supports least we can do,” Hune said. preparation and the name of the Hune’s bill. Compounding pharmacies mix person who conducted the com- Larry Wagenknecht, chief exec- and assemble pharmaceuticals to pounding. utive officer of the Michigan Phar- create a drug or form of medicine needed by a patient. Hune’s bills would add a series of requirements for these busi- nesses, including that accurate records of its procedures are main- tained, that the pharmacies are subject to a physical state inspec- tion once every two years and that all compounding pharmacies des- ignate a “pharmacist-in-charge” responsible for making sure the business follows the state regula- Quality intelligence is the basis tions. of a strong case. The criminal penalties for vio- lating the rules that result in per- sonal injury include a maximum Our team consists of professionals who can provide of a four-year prison sentence. A comprehensive litigation support, consultation and violation that resulted in a patient solutions in many areas, including: death would carry a maximum 15- year sentence. s "USINESS VALUATIONS The legislation would also give the state the ability to immediately s &RAUD