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$2.00/FEBRUARY 4 - 10, 2013

INSIDE Attevo’s problems are mounting In the palm of his hand Leon Polott, firm or deny whether the depart- right, and his Former employees have complained to Labor Department ment is investigating the situation. Sterionics Inc. The complaints to the Labor De- are working to that tech consultant mishandled retirement contributions partment are the latest in a string of commercialize problems at Attevo. a pen-shaped By CHUCK SODER ended up in those accounts, ac- firmed that it had “received com- The company employed about device they [email protected] cording to Matt Wienke, who led plaints from members of the public 100 people, including about 20 con- believe will the Cleveland technology consult- about possible mishandling of 401(k) tractors, in May 2011, but since then transform the Former Attevo employees have ing company’s data analysis prac- contributions” at Attevo, according many employees have left, includ- way health care providers treat sent complaints to the U.S. Depart- tice until April 2011, and four other to a statement from Scott Allen, who ing several in management. Mr. wounds. The product is being test- ment of Labor stating that money ex-employees who did not want is the department’s director of public Wienke listed 10 mid- and upper- ed at Akron General and Kent State. deducted from their paychecks for their names printed. relations for the Midwest. level managers, including himself, PAGE 3 their retirement accounts never The Department of Labor con- Mr. Allen said he could not con- See ATTEVO Page 23 Nonprofits could be IG HANGE uniting for ABIG CHANGE city’s sake Three groups are in talks to form alliance that would save money and improve efficiency

By JAY MILLER [email protected]

Just as businesses and even communi- ties are looking for ways to collaborate and be more efficient, three nonprofit organiza- tions that play key roles in economic devel- opment in the city of Cleveland are moving toward consolidating their efforts. Cleveland Neighborhood Development Coalition, LiveCleveland and Neighborhood Progress Inc. are in talks to bring their orga- nizations and their missions under a single Hospitals are spending millions to meet diagnostic coding requirement umbrella organization that would work to fund, promote and revitalize commercial set by the government; transition must be complete by October 2014 and residential development in Cleveland’s neighborhoods. The groups have not yet By TIMOTHY MAGAW timillion-dollar initiatives to train thou- and patients aren’t likely to notice much committed to an alliance, though. [email protected] sands of their employees and upgrade of a change. However, hospitals are in- Consolidation is partly a realization that their information technology infrastruc- vesting heavily to ensure the conversion it’s time to sharpen the focus of the non- orget the Jackson 5 song. For ture to cope with ICD-10, an arduous new goes smoothly, because any stumbles in profit groups that are working to build the Northeast Ohio’s hospitals, ABC is diagnosis coding requirement — one that the transition could affect their billing cy- central city. But it is also a recognition that not as easy as 123. injects more alpha characters into what cles and could jeopardize their already- money is tight — and getting tighter — and was a mostly numeric code. sensitive revenue streams. that the groups need to be more efficient. FLocal hospitals are in the midst of mul- Sure, it all sounds like alphabet soup, See CHANGE Page 26 See NONPROFITS Page 8

SPECIAL SECTION 05 6 LEGAL AFFAIRS

NEWSPAPER Law firms shorten their names in an effort to be Entire contents © 2013

74470 01032 more memorable ■ Pages 13-21 by Crain Communications Inc. Vol. 34, No. 5

0 PLUS: ADVISER ■ THE SWITCH FROM PUBLIC TO PRIVATE ■ & MORE 20130204-NEWS--2-NAT-CCI-CL_-- 2/1/2013 5:21 PM Page 1

2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 4 - 10, 2013 COMING NEXT WEEK THE LONG ROAD DOWN Organized labor continues to struggle, with union members comprising just 11.3% of the U.S. work force in 2012, down from 11.8% in 2011. Less than Yes, please and thank you three decades ago, union members accounted for more than 20% of the country’s labor force. There now are more public-sector union members — 7.3 700 W. St. Clair Ave., Suite 310, Next week’s Small Business section will million — than in the private sector, 7 million. The union membership rate for Cleveland, OH 44113-1230 look at the importance of knowing — public-sector workers in 2012 was 35.9%; for the private sector, it was just Phone: (216) 522-1383 Fax: (216) 694-4264 — 6.6%. A look at the union affiliation of U.S. workers at various years from 1983 and the business of teaching proper www.crainscleveland.com etiquette, especially in the age of to 2012: Publisher/editorial director: smart phones and high-tech gadgets. Year Total union members Share of U.S. work force Brian D. Tucker ([email protected]) The section also will include our Editor: 2012 14,366,000 11.3% Mark Dodosh ([email protected]) monthly Tax Tips feature, an expert Managing editor: 2007 15,670,000 12.1% Scott Suttell ([email protected]) adviser column and much more. Sections editor: 2002 16,145,000 13.3% Amy Ann Stoessel ([email protected]) Assistant editor: 1997 16,110,000 14.1% REGULAR FEATURES Kevin Kleps ([email protected]) 1992 16,418,000 15.7% Sports Senior reporter: Big Issue ...... 10 Going Places ...... 12 1987 16,913,000 17.0% Stan Bullard ([email protected]) Real estate and construction Classified ...... 26 Reporters’ Notebook....27 1983 17,717,000 20.1% Reporters: Editorial ...... 10 What’s New...... 27 SOURCE: U.S. BUREAU OF LABOR STATISTICS; WWW.BLS.GOV Jay Miller ([email protected]) Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Energy, steel and automotive Tim Magaw ([email protected]) Health care and education Michelle Park ([email protected]) Finance Research editor: Deborah W. Hillyer ([email protected]) Cartoonist/illustrator: Rich Williams Marketing director: Lori Yannucci Grim ([email protected]) Events Manager/Operations & Logistics: Christian Hendricks ([email protected]) Events Manager/Promotions & Sponsor Relations: Jessica Snyder ([email protected]) Advertising director: Nicole Mastrangelo ([email protected]) Senior account executive: Adam Mandell ([email protected]) Account executives: Dawn Donegan ([email protected]) Andy Hollander ([email protected]) Lindsie Bowman ([email protected]) John Banks ([email protected]) Sales and marketing assistant: Michelle Sustar ([email protected]) Office coordinator: Denise Donaldson ([email protected]) Digital strategy and development manager: Stephen Herron ([email protected]) Web/Print production director: Craig L. Mackey ([email protected]) Production assistant/video editor: Steven Bennett ([email protected]) Graphic designer: Lauren M. Rafferty ([email protected]) Billing: Susan Jaranowski, 313-446-6024 ([email protected]) Credit: Todd Masura, 313-446-6097 ([email protected]) Crain Communications Inc. Keith E. Crain: Chairman Rance Crain: President Merrilee Crain: Secretary Mary Kay Crain: Treasurer William A. Morrow: Executive vice president/operations Brian D. Tucker: Vice president Robert C. Adams: Group vice president technology, circulation, manufacturing Paul Dalpiaz: Chief Information Officer Dave Kamis: Vice president/production & manufacturing Mary Kramer: Group publisher

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FEBRUARY 4 - 10, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 INSIGHT Diebold head isn’t afraid to shake things up

vestors; they But anyone familiar with the lat- Wallace’s history at Ford suggests big changes are ahead sent Diebold’s er stages of Mr. Wallace’s 30-year stock down career at Ford Motor Co. shouldn’t By MARK DODOSH “The company has a lot of poten- Just three days later, Mr. Wal- have been surprised by the swift ac- [email protected] tial for greater value creation, and I lace would be quoted prominent- more than 8% tion of Diebold’s board under his look forward to making a signifi- ly in another Diebold news release on Jan. 24, the headship. The man born in Edin- On the day Diebold Inc. an- cant contribution to the company’s — this one revealing that Thomas day the compa- nounced that he had been elected leadership and hope to build upon Swidarski, its CEO of the last sev- ny announced burgh, Scotland, 67 years ago has- to lead the company’s board of di- Diebold’s rich history,” Mr. Wallace en years, suddenly was out of a that the 17-year n’t been afraid to be an agent of rectors, Henry D.G. Wallace sig- stated in Diebold’s Jan. 21 news re- job. veteran also had Wallace change, nor has he shied away from naled that he would be no caretak- lease about his new role on the The abrupt exit of Mr. Swidarski stepped down a challenge. er chairman. board. came as an apparent shock to in- as president and a director. See DIEBOLD Page 11 AT THE Ratner will cede some TIPS OF power at THEIR Forest City CEO of FINGERS subsidiary expected Tech startup Sterionics to remain involved is developing pen-shaped after stepping down By MATT CHABAN device to treat wounds Crain’s New York Business

By CHUCK SODER , N.Y.’s biggest develop- [email protected] er, Bruce Ratner, is preparing to step down as chief executive of Forest he other day, Leon Polott cut his thumb City Ratner, the sub- on a metal hanger while picking up sidiary of his family’s Cleveland- T clothes at the dry cleaner. based Forest City Enterprises Inc. So, he put cold plasma on it. Taking Mr. Ratner’s place will be Through a company in Cleveland called Ste- MaryAnne rionics Inc., Mr. Polott and his colleagues are Gilmartin, who working to commercialize a pen-shaped device became execu- they believe will change the way health care tive vice presi- providers treat wounds. dent in 2007. The See STERIONICS Page 26 switch will ele- vate her to Mr. Ratner’s clear No. 2, as he con- tinues on in his Ratner role as chairman. It was not entirely clear why Mr. Ratner will be stepping down or ex- actly when he would be ceding his CEO responsibilities at the compa- ny, but according to one source, his departure will be “sooner rather than later, likely the next few months.” Added another, “I wouldn’t expect MCKINLEY WILEY PHOTOS him to disappear. He’ll still be very ABOVE: Dr. Stephen Weeks, left, and Leon Polott are leading Sterionics Inc. LEFT: The company is de- much involved at Forest City.” veloping a pen-shaped device to treat wounds. See RATNER Page 7 THE WEEK IN QUOTES “You have to do all this “People don’t want to “It’s a lot more “The discerning attorney can work, cross your fingers, flip move to a ghost town. contemporary to have determine pretty readily what the switch overnight and People want to move to a a law firm with a short, programming is actually going hope to God it’s translating place that’s vibrant, that succinct, memorable to benefit them in their practice in the right way. If not, we can support the movement name than it is to have as opposed to simply fulfilling might not get paid.” of goods and services.” a string of three, four, their required hours.” — Jill Barber, Southwest General — Grace Gallucci, executive five names.” — Steven L. Wasserman, chairman of the Health Center’s director of revenue director, Northeast Ohio Areawide Cleveland Metropolitan Bar Association’s — Rick Rymond, Reminger Co. integrity and managed care operations. Coordinating Agency. Page 6 continuing legal education committee, and LPA executive group. Page 13 Page One partner, Chernett Wasserman. Page 20 20130204-NEWS--4-NAT-CCI-CL_-- 2/1/2013 10:51 AM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 4 - 10, 2013

36600 LAKELAND BLVD Nonprofit gets more engaged SOLD EASTLAKE, OHIO “Our little subscription Civic Commons increases its consulting model has great promise efforts by offering online services to groups for a large, growing market for these kinds of By TIMOTHY MAGAW the Fund for Our Economic Future, services. The potential is [email protected] made a strategic decision late last year to focus more of its time and huge, but in a larger The Civic Commons, a Cleveland resources on providing online en- context, it’s part of a Newmark Grubb Knight Frank is pleased to nonprofit geared toward fostering gagement services to organizations, movement that is shifting announce the sale of the 31,127 SF former constructive dialogue around is- institutions and civic initiatives. the way decisions are sues facing Northeast Ohio, is get- For a fee, the Commons is offer- HQ of Modern International Graphics, Inc. Full Selection of Commercial & Investment ting into the consulting business ing its custom-built online discus- made” Offerings Available at Terry Coyne represented the seller TerryCoyne.com and has locked down a handful of sion platform and consulting ser- – Mike Shafarenko, president, Margiotta Enterprises, Inc. Or Call Terry at well-known clients. vices to other organizations Civic Commons 216.453.3001 The organization, which engaged in some sort of decision- 1350 Euclid Ave, Ste. 300 launched in 2010 thanks to a $3 mil- making that requires input from a it “social media for stuff that matters.” Cleveland, Ohio 44115 lion grant from the Knight Founda- large group of people. The efforts, which last year tion and additional support from As the Commons’ puts it, consider brought in more than $200,000 in revenue and made up about 20% of the group’s overall budget, should help prop up the still-burgeoning organization, according to Mike Shafarenko, Civic Commons’ pres- ident. The Commons’ client roster includes the Cleveland Metropoli- tan School District, Cleveland- Cuyahoga County Port Authority, the city of Cleveland’s Office of Sus- tainability, Hathaway Brown School in Shaker Heights and Kent State University. “How do we in the 21st century act as a nonprofit that isn’t solely reliant on philanthropic donations but also have a market-driven approach to what we’re doing to subsidize our costs?” Mr. Sha- farenko said. Kent State, for one, engaged the Commons to help with its strategic planning process for its academic affairs division. Late last year, the university posed several questions on the Commons’ online platform related to its goals of increasing stu- dent success, bolstering academic quality, expanding research, secur- ing its finances, developing talent and fostering internationalization efforts. After six weeks, more than 300 members of the university commu- nity registered for the project. Over- all, the project garnered more than 10,000 page views. The Commons compiled all the data generated on the site, coded and analyzed it and produced a report that the univer- sity plans to use in shaping its three- to five-year strategic plan. “There was healthy disagreement at times online, but it was always very respectful, which I really liked,” said Stan Wearden, dean of Kent State’s College of Communi- cation and Information and co- chairman of a group guiding the planning process. “It felt like there was a lot of honest expression.” The Commons offers three groups of services, ranging from a free model to one that costs $7,500 YOUR BUSINESS ISN’T JUST A JOB — IT’S A PASSION. for a year-long subscription. You get to know your “Our little subscription model customers, treat them fairly, and build relationships. Don’t you deserve that same kind has great promise for a large, grow- ing market for these kinds of ser- of treatment from your bank? With Citizens Bank, you’ll get the right solutions and vices,” Mr. Shafarenko said. “The products from people with the experience to know what’s right. After all, we’ve been potential is huge, but in a larger context, it’s part of a movement around over 140 years, helping businesses just like yours grow. So if you want a bank that is shifting the way decisions are that shares your passion, call us. BECAUSE WITH US, IT’S PERSONAL. being made.” ■

$)&$,*/(4"7*/(4r-0"/4-*/&40'$3&%*5r.&3$)"/54&37*$&4 Volume 34, Number 5 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for 53&"463:."/"(&.&/5r41&$*"-5:'*/"/$*/(r8&"-5)."/"(&.&/5 combined issues on the fourth week of December and fifth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copy- right © 2013 by Crain Communications Inc. Periodi- cals postage paid at Cleveland, Ohio, and at addition- 1-800-946-2264 al mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s CITIZENSBANKING.COM/BUSINESS Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 800-290-5460 Ext. 136 20130204-NEWS--5-NAT-CCI-CL_-- 1/31/2013 11:53 AM Page 1

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6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 4 - 10, 2013 NOACA director has big-time goals for oft-criticized group

“I may not be able to Gallucci relies on lessons learned in do all that I dream of, Chicago as she guides local agency that I wish for this CURTIS CENTRE NORTH & SOUTH organization, but I can 33801 & 33851 Curtis Blvd., Eastlake focused on transportation policies start it, I can change the • Flex Space For Lease trajectory.” By JAY MILLER • Equity Interest Opportunity Available Daniel Burnham, the pre-eminent – Grace Gallucci, executive [email protected] Chicago planner of the early 20th • Located at Route 2 and Route 91 director, NOACA century who is reported to have LEASING INCENTIVE: Any Lease Term 3 Years or Longer One of Grace Gallucci’s first acts said on his deathbed, “Make no lit- include businesspeople in the re- First Year’s Rent $1.00/SFF after she became executive director tle plans. They have no magic to stir gional planning process so the re- of the Northeast Ohio Areawide Co- men’s blood and probably will not gion can figure out which modes of ordinating Agency was to take themselves be realized.” transportation — highways but also FOR MORE INFORMATION, CONTACT: down the sign on the front door of Her big plan is to expand NOA- rail and water — need to be im- the transporta- CA’s role in the region by instigat- proved to make Northeast Ohio Michael J. Occhionero 216-861-7200 tion planning ing a regional strategic planning more attractive to businesses. www.ostendorf-morris.com agency’s office process that would allow NOACA on Superior Av- and the region to make better use of A critic comes around enue in Cleve- the limited transportation dollars at Cleveland resident Angie Schmitt, land. It read: its disposal. a writer at the Streetsblog Network, “We’re not the “I may not be able to do all that I a national network of dozens of driver’s license dream of, that I wish for this organi- websites that focus on transporta- bureau.” zation, but I can start it, I can tion and infrastructure issues, has THE CLEVELAND ORCHESTRA The sign, di- Gallucci change the trajectory,” she said. been critical of NOACA in the past. recting people And that, she believes, will make She said it has neglected public one door down if they wanted a it easier to attract new businesses to transportation and the needs of new auto title or driver’s license, the region and keep existing busi- those who prefer bicycles and walk- bugged her. Removing it was a first nesses here. ing, instead focusing almost exclu- step in her effort to raise awareness Here’s a TIP sively on fighting auto congestion of NOACA, which is the arbiter of and building highways. how federal transportation money NOACA is a federally financed Ms. Schmitt interned at NOACA ˇ is spent in Cuyahoga, Geauga, Lake, metropolitan planning organiza- while getting her master’s degree in DVORÁK’S Lorain and Medina counties. tion, or MPO, that helps the U.S. urban studies at Cleveland State Uni- The time will come, she hopes, Department of Transportation versity. She now owns a home in “NEW WORLD” when people looking for the title make transportation policy. These Cleveland’s Detroit-Shoreway neigh- bureau will see the NOACA logo on MPOs develop 20-year transporta- borhood, and at Rustwire.com, her SYMPHONY NO. 9 the door — a map of the five coun- tion plans for all modes of trans- local affiliate in the Streetsblog Net- ties — and recognize what’s inside. portation — not just highways, but work, she until recently maintained a More importantly, she hopes the public transit, aviation, bicycles post titled, “30 Reasons Why NOACA clevelandorchestra.com agency, through its planning for Sucks.” FEB 21 -- 24 and even pedestrians. SEVERANCE HALL | 216-231-1111 roads, bridges, buses and even The MPOs also help the federal Among those reasons: “Their bicycle riding, will help boost the government prioritize projects for board is controlled by exurban po- region’s economy. federal money through three- to litical officials who put the interests Ms. Gallucci joined NOACA last five-year transportation improve- of their communities over the inter- July 1, replacing Howard Maier, ment plans, or TIPs, that designate ests of the region;” “They refuse to who retired after leading the agency which roads to fix, which bikeways consider the land-use implications for 28 years. to build and how much federal of planning decisions and as a re- “I find it hard to imagine attract- money a transit agency will have to sult perpetuate sprawl and inequal- ing a major industrial employer (to replace aging buses. ity;” and “Their transit planning is this region) because our infrastruc- NOACA’s 2012-2015 TIP, for in- uninspired and minimal.” ture isn’t attractive, it doesn’t look stance, includes projects ranging in She took down the post after good and it suggests size from $1.2 billion for Cleve- meeting Ms. Gallucci and coming and decline,” she said. “We’ve got land’s Inner Belt and its bridges to away hopeful. to change that around to suggest $22,000 to replace a culvert along “Grace has a tough job,” Ms. investment and forward move- U.S. Route 224 in Westfield Town- Schmitt said. “When I heard they ment. ship in Medina County. hired someone from out of town, “People don’t want to move to a Ms. Gallucci, though, envisions with a public transit background ghost town,” Ms. Gallucci added. NOACA taking an even broader and a woman, I was excited imme- “People want to move to a place role. diately.” that’s vibrant, that can support the She sees the agency creating a Ms. Schmitt said she believes movement of goods and services.” broad regional strategic plan that NOACA “has the potential to be Thinking big would look at population trends critical in dealing with the prob- and how land is used and could be lems the community faces. We’ve Called “No Action” by its severest used. From there, planners could lacked regional leadership.” critics, NOACA is governed by a recommend where residential Ed Jerse, director of regional col- sometimes unwieldy governing development should happen and laboration for Cuyahoga County, board of 55 public officials. Ms. Gal- where new businesses could be who recently ended his term as lucci knows implementing the ideas ocated. The plan also would assess president of NOACA, was attracted she brings from her 20-plus years of what roads, sewers and other infra- to Ms. Gallucci’s range of experi- working for public transit agencies structure would be needed to ence and familiarity with Northeast will need to run a rigorous gauntlet. support those goals. Ohio and to her vision for getting Before coming to NOACA, Ms. A key reason for such planning more involved in regional planning. Gallucci spent five years as a deputy would be to attract new business, “She’s creative and smart,” he executive director of the Regional she said. said. “Having been in Cleveland Transportation Authority in Chica- “I’d love to start looking at attract- and Chicago I think she brings the go. She previously worked for a ing a worldwide manufacturing firm kind of experience you need to decade at the Greater Cleveland Re- as well as intellectual industries, and advance that kind of agenda.” gional Transit Authority, where she in order to attract that you have to be Mr. Jerse also said he believes had risen to executive director of able to demonstrate you can sup- NOACA communities are ready to the office of management and bud- port that with infrastructure,” Ms. embrace her ideas about regional get before leaving for Chicago. Gallucci said. “I’ve had conversa- planning. “If I learned one thing in my time tions with major local business lead- “It’s just kind of something most in Chicago, it was make no small ers who would say things like, ‘If I public officials are looking increas- plans,” she said in an interview. “I could just get that road expanded I ingly to” with the cuts in state funds would be doing a disservice to this could do so much more with my coming to communities, he said. job, to this organization, this city, business.’ But they don’t know how “There are a lot of different groups this region if I didn’t think big.” to make that happen.” looking at regional approaches and Ms. Gallucci was paraphrasing Ms. Gallucci would like to she’s hitting the wave of that.” ■ 20130204-NEWS--7-NAT-CCI-CL_-- 2/1/2013 1:29 PM Page 1

FEBRUARY 4 - 10, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 Ratner: Businessman was instrumental in opening of

continued from PAGE 3 the first of what ultimately may be According to sources, Mr. Rat- great work,” a source says. Forest City has employed some of over a dozen apartment towers on ner, who is 68, is expected to con- the best-known architects in the Forest City Enterprises last Ahead of the curve Thursday, Jan. 31, issued a the site. All will be built using mod- tinue working at the company he world. To design the new home of one-paragraph statement saying ular construction, a process that built up over three decades, though One of the first projects he tack- the New York Times Co., he tapped the company at this time “has no has fascinated Mr. Ratner for some he will be less involved in the day- led with Forest City was the mas- Pritzker Prize-winner Renzo Piano. definitive announcement to make time and stands to revolutionize to-day operations. sive MetroTech Center office- Similarly, he chose one of Amer- concerning potential leadership the way housing gets built in the Ms. Gilmartin, the future CEO of building complex in downtown ica’s top architects, , succession” at Forest City Ratner. city. Even the NBA’s once-lowly the company, joined Forest City in Brooklyn. The development would for a couple big projects — includ- “The company emphasizes that Nets, the Barclays Center’s anchor 1994 as an assistant vice president come to characterize the compa- ing Atlantic Yards, where Mr. any such announcement and tenant in which Mr. Ratner remains for commercial development. Like ny’s appetite for complex, con- Gehry’s designs ultimately were change in leadership, when appro- a minority owner, have racked up a Mr. Ratner, she got her start in the tentious projects, but also ones that shelved owing to cost concerns priate, would be the result of ongo- winning record this season. public sector, previously working at held the promise of transforming when the recession hit. the Public Development Corp., ing succession planning that the Veteran New Yorkers entire neighborhoods. At that point, Mr. Ratner turned company undertakes continuously now known as the Economic Located on a prime, 16-acre site to local hotshot SHoP Architects to and as a matter of course,” Forest Mr. Ratner arrived in New York Development Corp. along Flatbush Avenue at the foot redesign Barclays Center. The firm City stated. “Moreover, under any in the late 1960s, and attended law Since becoming Mr. Ratner’s of the Manhattan Bridge, the com- also has been tapped to design the potential leadership succession for school at be- deputy, Ms. Gilmartin has become plex was designed to win over For- three modular towers that will sur- FCRC, the company expects that fore working for the administration a fixture on the real estate scene, tune 500 companies that increas- round the arena, and Mr. Ratner Bruce C. Ratner, FCRC chairman of Mayor from 1970 to earning numerous awards, speak- ingly had been looking across the has spoken openly of his fascina- and CEO, will remain deeply en- 1973 as director of the Consumer ing on panels and at symposia and Hudson in Jersey City, Hoboken tion with prefabricated construc- gaged and involved in the business Protection Division and head of the enjoying profiles in various media and elsewhere for affordable back- tion and its ability to speed along a that he founded and built into one Model Cities Program, a huge fed- outlets. In an industry with few fe- office space. Chase Manhattan project, reducing costs and ensur- of New York City’s pre-eminent real eral urban-renewal program that male leaders, Ms. Gilmartin has Bank, Morgan Stanley and Brook- ing quality. estate concerns.” was a key part of President Lyndon been a visible force in the testos- lyn Union Gas, along with a num- Mr. Gehry did, however, design A change would come after a Johnson’s War on Poverty. He terone-filled world of New York real ber of city agencies, were the first one of Mr. Ratner’s best-known banner 2012 for Mr. Ratner. Follow- spent the next four years teaching estate, and in 2011, she was named big tenants to take space in the buildings, New York by Gehry, at 8 th ing a decade-long struggle to real- law at New York University before the 35 most powerful woman in development. Spruce St. in downtown Manhattan. ize the biggest project of what has returning to City Hall, where he New York by Crain’s New York Later in his career, design be- That tower, with its rippling façade, been a very big career in New York served as commissioner of con- Business, a sister publication of came a hallmark of Mr. Ratner’s de- was the tallest apartment building in City real estate, Mr. Ratner finally sumer affairs for Mayor Ed Koch Crain’s Cleveland Business. velopments. the city when it opened. ■ opened Barclays Center, the arena from 1978 to 1982. People close to Mr. Ratner say Early projects such as jewel of his 16-acre Atlantic Yards After leaving public service, Mr. he’s earned a break. MetroTech, 111 Worth St. and the Matt Chaban is a reporter with project in the heart of Brooklyn. Ratner launched Forest City Ratner “He’s done an incredible amount massive Atlantic Center Mall, built Crain’s New York Business, a sister That opening was followed last Cos. in New York with the backing for the city, and he’s got a great in the mid-1990s, were considered publication of Crain’s Cleveland month by the groundbreaking for of his cousins from Cleveland. team in position to keep up that unspectacular, but more recently, Business.

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8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 4 - 10, 2013 Nonprofits: Coalition would be strong ‘voice’

continued from PAGE 1 tion, which develops affordable ter for Community Planning and They see, for example, an opportu- housing largely in the Glenville and Development at Cleveland State nity to combine functions such as Hough neighborhoods on Cleve- University, who is working as a con- financial reporting and human land’s East Side. sultant to the organizations. These groups, along with the city, resources. Follow the money “We’re in the discussion phase to Neighborhood Progress Inc. and see what could come of this idea,” other financial backers, have creat- Regardless of whether the three said Brian Friedman, president of ed what is considered a standard groups join together, mergers of Cleveland Neighborhood Develop- for big-city community develop- some struggling CDCs are likely a ment Coalition’s board of trustees. ment. part of the future. “I’m really expecting this to be a “They definitely have been na- Joel Ratner, CEO of Neighbor- transformative moment for com- tional models for how you do hood Progress, described the con- munity development in Cleveland. things, compared to a lot of other solidation plan before Cleveland “We haven’t all been on the same cities,” said W. Dennis Keating, a City Council in a Jan. 15 meeting. page and I think we’d be stronger Cleveland State University profes- “We’re working with all CDCs to together than apart,” said Mr. sor whose teaching and research develop the strongest possible Friedman, whose full-time job is as career has focused on neighbor- voice for community development executive director of Northeast hood development. and moving towards the most effi- Shores Development Corp., the LiveCleveland, formerly the Liv- cient system,” Mr. Ratner said at Need to get past the Gatekeeper? community development corpora- ing in Cleveland Center, markets the meeting. “We believe we need tion in the city’s North Collinwood the city’s neighborhoods and their to have the right number of CDCs.” CALL TODAY, 440 575-7000 neighborhood. housing opportunities. It produces Money, of course, is pushing the WWW.SALESCONCEPTSINC.COM Indirectly, the merger discus- a periodic “Live CLEVELAND!” groups to act. SELL MORE. sions involve leaders of many of the guide, and its website offers exten- In particular, money for the fed- nonprofit community development sive information on neighborhoods eral Community Development corporations, or CDCs, that work in to potential city residents. Block Grant program is declining. Cleveland’s neighborhoods to at- Neighborhood Progress Inc. is The block grants are made to the tract capital investment and new what the development community city of Cleveland, which uses part of residents. Directors of 27 CDCs are calls an intermediary. Although its allocation for citywide programs voting members of Cleveland much of the money for the CDCs through its Community Develop- Neighborhood Development Coali- comes from federal community de- ment Department. The rest is allo- It’s all abou tion and make up a majority of its velopment grants, Neighborhood cated to neighborhood programs Water challenges in t board. Progress was created by foundations, through the CDCs, though the local the wa including the Cleveland and Gund City Council member has consider- oil ter! y. Building a model and gas industr foundations, and business interests able discretion over that money. At Wednesday, The coalition describes itself as to supplement the federal money council meetings, it’s common to February 13, 2013 the trade association for the com- with private dollars for neighbor- hear a council member talk about munity development corporations. hood economic development. “my CDC.” Noon to 1:30 p.m. EST - Program Location: McDonald Hopkins, Fifth Third Center It’s the place the neighborhood Standard Oil Co. (Ohio), the The CDC structure was created 600 Superior Ave., East, Suite 2100, Downtown Cleveland groups gather to hash out strategies Greater Cleveland Growth Associa- when Cleveland had 33 City Coun- RSVP: mcdonaldhopkins.com for fighting foreclosures, creating tion and several banks were found- cil wards and twice the population, or call: 216.348.5400 to register. neighborhood safety programs and ing financial backers; KeyCorp, and each council member wanted a There is no charge for this program. promoting retail opportunities. Charter One, US Bank, Giant Eagle CDC for his or her ward. Now the Among the coalition’s members and the Home Depot Foundation city has 19 wards and will lose two is Detroit Shoreway Community are current supporters. more before November’s council Development Corp., which has won Observers have noted that election, cutting the number of raves for its redevelopment of the Neighborhood Progress, because of wards almost in half. area around West 65th Street and its reliance on the private sector for For the fiscal year that ends May support, has focused its support to 31, the city allocated $2.6 million of McDonald Hopkins LLC Detroit Avenue with a mix of new 600 Superior Ave., East, Suite 2100, Cleveland, OH 44114 • 216.348.5400 housing, including Battery Park, CDCs on attracting new residents its $20 million in block grant mon- through real estate development ey to CDCs. Councilman Matt Zone Carl J. Grassi Shawn M. Riley new shops and restaurants and the reopening of the Capitol Theatre. and public safety, rather than back- estimates the block grant total was President Cleveland Managing Member Other member CDCs include Ohio ing efforts to promote the educa- as high as $40 million a decade ago. Chicago • Cleveland • Columbus • Detroit • • West Palm Beach City Inc., the St. Clair Superior tional, health and social service The drop in dollars means the mcdonaldhopkins.com Neighborhood Development Asso- needs of current residents. nonprofit groups must adjust ciation and the Famicos Founda- Neighborhood Progress ac- accordingly. knowledges as much and has “The demand for services is not adopted a new strategic plan that going to decline,” said Jeff Lipp, ex- would expand its scope. ecutive director of LiveCleveland. “We looked at reconnecting the “But the pool of resources is declin- -ARCH sAM AM CDCs with residents, expanding ing, so it’s a matter of utilizing the re- %MBASSY3UITESAT2OCKSIDE beyond bricks and mortar,” said sources to the best of our ability and Kathryn Hexter, director of the Cen- being as efficient as possible.” ■ 2OCKSIDE7OODS"LVD )NDEPENDENCE /(

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www.CrainsCleveland.com/BREAKFAST neomed.edu 20130204-NEWS--9-NAT-CCI-CL_-- 2/1/2013 5:22 PM Page 1 20130204-NEWS--10-NAT-CCI-CL_-- 1/31/2013 4:24 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 4 - 10, 2013

PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Here we go Ed FitzGerald looks like a candidate for governor, even if he hasn’t declared himself in the race. Now, far be it from us to discourage the Democrat from pursuing the state’s highest office in 2014. We only ask one thing of Mr. FitzGerald if he does make a run. Don’t neglect your responsibilites as Cuyahoga County executive over the next two years. County government only now is regaining its legs after the corruption-filled years that preceded your election FROM THE PUBLISHER in November 2010. It’s critical that you keep your eye on your day job if the county’s progress isn’t to stall out or, worse yet, slip away. Campaigns in American politics stretch out Fears of newspaper withdrawal longer and longer with each election cycle. Ohioans just got relief from the barrage of campaign ads that hose of you who are regular read- heavily documented that generations fol- rience, one that can’t be easily found in ers of this column know that I lowing us have radically different ways of the news universe of social media, in started a full year before the presidential election of finding their news. In a recent column I which others that you trust are sending 2012. The next election for governor isn’t until 2014, have a tendency (proclivity might be a better choice) to referred to my daughter (an avid you news stories of interest. but already potential Democratic challengers to Re- Tbemoan the demise of the dai- newspaper reader and adept so- My point was never to minimize social publican Gov. John Kasich are sizing up their BRIAN ly newspaper. I sincerely be- TUCKER cial media user) and her media. Indeed, I believe it’s a powerful chances. lieve — for many reasons — boyfriend as representative of a tool (that I wish I could use with the skill Mr. FitzGerald never has run for statewide office, that the paring back of metro generation that doesn’t — neces- of the aforementioned couple). I just re- so he has been busy in recent weeks getting in front daily newspapers to less than sarily — feel obliged to depend main concerned that technology enables of Democratic groups downstate — and he isn’t for- seven days of publication pos- on just newspaper editors to us to build such refined silos — by rely- es a real threat to our form of choose their news for them. ing on RSS feeds or social media net- mally campaigning yet. Should Mr. FitzGerald enter And granted, those very same works — that we only are taking in that government. the race, he’ll be running from city to city and town editors make mistakes, and one information that we have indicated an My reasoning is that news- to town across the state as he works to become a could — or should — question interest in, or agree with, rather than get- papers traditionally have been known commodity beyond his Northeast Ohio their choices from time to time. ting a broader look at the day’s world. the only local news operations But my point was not that social media But then, technology can be fouled up roots. It’s a process that could go on for almost two with enough people to cover the goings- isn’t highly valuable and effective; it’s by those same well-intended newspa- years — should he win his party’s primary in early on of government and elected officials. 2014 — and it would be extremely demanding of his that I worry about our society losing pers as well. Case in point: the Akron Take away the lurking presence of a re- what I often refer to as a serendipitous time, energy and attention. Beacon Journal recently had to scramble porter and his or her notebook, and it’s education. to take down a 5-year-old story about a The work Mr. FitzGerald has done as county not difficult to imagine what could hap- That’s the one you get while paging drug bust at Kent State University’s air- executive over the last two years has put him in po- pen. Think Jimmy Dimora and Frank through a daily newspaper. When I do port when the story somehow made its sition to take on Gov. Kasich. Our concern is that Russo, among others. so, I don’t necessarily read every story, way back onto its website. the job that has given Mr. FitzGerald a springboard Speculation abounds that Cleveland’s but I get a great, general sense of what’s Ouch. That wouldn’t happen with so- to higher office could suffer because of the diversion newspaper could cut back its days of pub- happening on the Arab street, at area cial media because it lives in the oh-so- that a statewide campaign would cause. lishing sometime in 2013, and that’s going universities, in the corridors of elected very present. I’ll just have to get more to be a great shock for those of us raised on power or in the executive suite. The old, three-member Board of Cuyahoga Coun- comfortable with alternative sources of a diet of daily newspaper reading. A metro daily newspaper’s “A” section ty Commissioners didn’t provide the same platform news. I’ll just miss that paper in my But for younger folks — well, it’s been is a great source for just that sort of expe- hands. ■ for creating a political star that the post of county executive does today. The top job in Cuyahoga County is highly visible and, arguably, the second THE BIG ISSUE most powerful in the state. That’s not to say voters made a mistake when Do you think the federal government should enforce universal background checks for those people looking to they changed the county charter to create a govern- buy a gun? ment with a single executive and an 11-member County Council. Quite the contrary. As Mr. FitzGer- ald’s tenure has shown, an effective administrator and leader with strong authority can create a leaner, more efficient government than a trio of politicians with little to no oversight over individual county de- partments. But it is precisely because a single individual holds so much authority over county operations that it’s imperative for the person in that job not to neglect it. COURTNEY DIAMOND CHRIS SABOL ELBERT SLAUGHTER AUBREY DELARA Mr. FitzGerald has assembled a good team, and we suspect it functions well in his absence. But the Berea Cleveland Cleveland Lakewood people of Cuyahoga County voted him, not his No, I don’t think so. It seems Yes. You shouldn’t be a crimi- I think they should, yeah. I think so. If someone has a team, to the job. They have a right to expect Mr. like a pain and kind of unnec- nal and be able to get a gun There’s too much killing go- criminal background, they essary. I feel like criminals if you have a felony conviction. ing on out here, especially shouldn’t have a gun just for FitzGerald to be involved intimately in seeing don’t follow the laws, so why with the young people. Young that purpose. But it depends through his agenda to move the county forward af- make more laws to make it teenagers today, they’re get- on their situation, I guess. If it ter years of corruption tainted the operations of its more difficult for people who ting hold of guns and stuff was a gun-related crime, they government. He owes them as much. do follow the laws? like that real easy. shouldn’t be allowed to have it. 20130204-NEWS--11-NAT-CCI-CL_-- 1/31/2013 3:06 PM Page 1

FEBRUARY 4 - 10, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11

Diebold: Company searching for new CEO Colliers International in Cleveland Welcomes Chris Seelig continued from PAGE 3 In an editorial in November 1997, been a Diebold director since 2003. Perhaps the best example of Mr. Automotive News would write that Mr. Wallace did not outline what Wallace’s resolve and his willing- Mr. Wallace “can feel rightfully form that transformation may take, proud of his 18-month tenure” at and a Diebold spokesman said last ness to shake up the status quo was The Cleveland office of seen in the late 1990s, when he be- Mazda, and not just because the week the chairman would not be came the first westerner to head a company had halted a four-year commenting further until the com- Colliers International is Japanese carmaker. string of losses and had gained pany releases its year-end earnings pleased to have Chris Seelig It was the spring of 1996, and market share in Japan. on Feb. 12. join their team as First Vice Ford had raised its stake in Mazda “Wallace’s contribution, rather, However, the transformation will PresidentŇPrincipal for the Motor Corp. from 25% to 33.4% — lay in ensuring Mazda’s indepen- not involve Charles Ducey Jr., who, Retail Services Group. enough to give the U.S. automaker, dence and preserving its sense of like Mr. Swidarski, agreed Jan. 23 to under Japanese law, veto power self, even as he strengthened its co- step down as executive vice presi- over any board decision. operation” with Ford, the editorial dent of Diebold’s North American CHRIS SEELIG is a retail As Crain’s sister publication, Au- would say. operations, effective immediately. veteran in Northeast Ohio tomotive News, would report at the “Wallace adroitly handled the Diebold said Mychal Kempt has with more than 13 years time, Mr. Wallace had been a quiet delicate balance.” been appointed vice president, Chris Seelig of experience in retail and North American operations, and No. 2 to Mazda’s then-president, Swidarski isn’t alone First Vice PresidentŇPrincipal restaurant leasing and Yoshihiro Wada, the two previous will be responsible for leading the Retail Services Group sales. Chris has completed How adroitly Mr. Wallace man- company’s financial self-service years of his assignment in Japan. more than $100 million in He deferred to Mr. Wada at all ages the change that has been operations in the region. kicked off at Diebold with Mr. Main +1 216 239 5060 transactions and is widely meetings. But with Ford acquiring a Rough patch of road larger stake in Mazda, Mr. Wallace’s Swidarski’s de- Dir +1 216 239 5073 recognized as a top broker in quiet days were coming to an end. parture remains The last several months have [email protected] the Cleveland market. Mr. Wallace would ascend to to be seen. seen little positive news come out Mazda’s presidency in June. Just a For now, Mr. of Diebold. few weeks later, he was outlining Wallace has as- Since last summer, Diebold has his plans for uprooting Mazda from sumed what lowered its full-year earnings guid- its roots in rural Japan and planting Diebold called ance three times — once in late it in the global marketplace. “regular over- July, once in mid-October, and “We are a Japanese company sight” of the again on Jan. 24, the day it an- with 60% of our customers over- maker of auto- Swidarski nounced Mr. Swidarski’s departure. 'RQ·WWDNHWKHEDLW seas,” Mr. Wallace told Automotive mated teller ma- In late October, the company News in mid-July. “So, we have to chines and bank security equip- suffered the embarrassment of an-

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D.COM WWW.CRAINSCLEVELAN

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Preferred project Top executive Minimum investment PRIVATE EQUITY & VENTURE CAPITAL FIRMSinvestment Title (thousands) Name (thousands) LISTED ALPHABETICALLY Address Michael Feuer Preferred project Top executive CEO, Minimum investment Phone/Website investment Title senior managing (thousands) $2,000 5,000-10,000 director Name (thousands) Max-Ventures LLC Address John McIlwraith, Don 4400 Renaissance Parkway, Suite 4, Cleveland Phone/Website Aquilano, managing 44128-5794 Mark E. Mansour directors; Dov (216) 765-2505/www.max-ventures.com senior managing $1,000 1,000-5,000 Rosenberg, $3,000 5,000 partner director Allos Ventures MCM Capital Partners 250 E. Fifth St., Suite 1100, Cincinnati 45202 25201 Chagrin Blvd., Suite 360, Beachwood 44122 (513) 456-1001/www.allosventures.com Jan Garfinkle (216) 514-1840/www.mcmcapital.com Peter G. Taft NA founder, partner NA managing director $500 5,000-15,000 Arboretum Ventures Morgenthaler 11000 Cedar Ave., Cleveland 44106 50 Public Square, Suite 2700, Cleveland 44113 Bill Trainor (216) 658-3989/www.arboretumvc.com Karl O. Elderkin (216) 416-7500/www.morgenthaler.com NA managing partner Wayne Wallace NA $1,000 3,000-10,000 general partners Athenian Venture Partners 20 E. Circle Drive, Suite 229 #37146, Athens Mutual Capital Partners Funds rs.com LIST:LI 45701-3751 5805 Bridge Ave., Cleveland 44102 Eric Von Hendrix, Darrell W. Austin (216) 928-1908/www.mutualcapitalpartne (614) 360-1155/www.athenianvp.com managing partner president; June E. $500 1,000-4,000 $500 1,000 Taylor, co-president Austin Capital Partners LP MWV Pinnacle Capital Fund LP 1422 Euclid Ave., Suite 500, Cleveland 44115 P.O. Box 241065, Cleveland 44124 (216) 574-2284/www.austincapitalpartners.com Jack Wyant managing director (216) 502-4740 F. Howard Mandel $1,000 2,000-5,000 president $2,000 10,000 Blue Chip Venture Co. Peppertree Capital Management Inc. 250 E. Fifth St., Cincinnati 45202 David P. Given .com (513) 723-2300/www.bcvc.com 86 West St., Chagrin Falls 44022 Bob Savage, Jeff John F. Kirby (440) 528-0333/www.peppertreecapital $10,000 20,000 managing partners Barry, Mark Horne, Blue Point Capital Partners $1,000 2,000 Ian Bund, partners 127 Public Square, Suite 5100,ntcapital.com Cleveland 44114 Plymouth Venture Partners (216) 535-4700/www.bluepoi Robert P. Pinkas 300 Madison Ave., Suite 1525, Toledo 43604 founding partner Edward S. $5,000 10,000-20,000 (419) 205-9000/www.plymouthvc.com Pentecost, managing director, president Brantley Partners (1) $3,000 5,000-35,000 3550 Lander Road, Suite 300, Pepper Pike 44124 PNC Erieview Capital (216) 464-8400/www.brantleypartners.com Michael Goldberg managing partner 1900 E. Ninth St., 17th floor, Cleveland 44114 $250 250-1,000 (216) 222-2491/www.pncerieview.com Loyal W. Wilson Bridge Investment Fund LP 44106 managing director 4124 $15,000 15,000-40,000 11000 Cedar Ave., Suite 100, Cleveland Richard R. Hollington Primus Capital Funds (216) 658-5470/www.bridgefundllc.com III 5900 Landerbrook Drive, Suite 200, Cleveland 4 $3,000 4,000-8,000 president (440) 684-7300/www.primuscapital.com Todd Peter LargestLa president CapitalWorks LLC $500 1,000 3000 Auburn Drive, Suite 430, Beachwood 44122 Dr. Donald C. (216) 781-3233/www.capitalworks.net Harrison Redline Capital, Midwest Capital 20600 Chagrin Blvd., Suite 495, Cleveland 44122 incinnati $500 2,000-3,000 managing partner Charter Life Sciences (216) 991-1201/www.redlinecapital.com Curtis D. Crocker managing partner 2120 E. Galbraith Road, Building A, Suite 161, C David A. Jones, $500 1,000 45237 chairman, managing (513) 558-6397/www.clsvc.com Reservoir Venture Partners director; Koleman 400 W. Wilson Bridge Road, Suite 130, Columbus 43085 Bassem Mansour, Karleski, managing $2,000 2,000-5,000 (614) 846-7241/www.reservoirvp.com Steven Rosen, co- director; Wright CEOS; Michael Chrysalis Ventures Steenrod, principal $5,000 15,000 Lundin, partner 737 Bolivar Road, Suite 1500, Cleveland 44115 Resilience Capital Partners (216) 453-1299/www.chrysalisventures.com Peter G. Kleinhenz 25101 Chagrin Blvd., Suite 350, Cleveland 44122 Stewart A. Kohl managing director (216) 292-0200/www.resiliencecapital.com Bela Szigethy $500 2,000-10,000 CID Capital 130, Columbus $1,000 1,000-75,000 co-CEOs 113 400 West Wilson Bridge Road, Suite The Riverside Co. 43085 Robert J. Savage 50 Public Square, 29th floor, Cleveland 44 (614) 429-4236/www.cidcap.com 250 managing partner (216) 344-1040/www.riversidecompany.com Karen Spilizewski $100 vice president CoreNetwork $500 500-6,000 300 Madison Ave., Suite 1525, Toledo 43604 RiverVest Venture Partners (419) 697-9696/www.core-network.org John R. Sinnenberg 11000 Cedar Ave., Suite 100, Cleveland 44106 chairman (1) (216) 658-3982/www.rivervest.com Robert J. Savage $10,000 15,000-60,000 500 fund manager Cyprium Investment Partners LLC $100 PrivateP Equity 200 Public Square, Suite 2020, Cleveland 44114 Rocket Ventures LLC (216) 453-4500/www.cyprium.com Michael Stubler 2600 Dorr St., Toledo 43606 .org managing director Owen M. Colligan $500 2,000 (419) 530-6083/www.rocketventures Brett R. Keith 4115 Draper Triangle Ventures $2,000 4,000-10,000 managing directors 737 Bolivar Road, Suite 1500, Cleveland 4 RockWood Equity Partners LLC (216) 363-5300/www.drapertriangle.com James M. Petras om managing director 3201 Enterprise Pkwy., Suite 370, Beachwood 44122 $500 1,000 (216) 342-1790/www.rockwoodequity.c Anthony S. Manna chairman Early Stage Partners LP $1,000 5,000-20,000 1801 E. Ninth St., Cleveland 44114 Christopher Childres, (216) 781-4600/www.esplp.com Signet Enterprises LLC com managing partner; 75 E. Market St., Akron 44308 William W. $1,000 4,000 Ryan Meany, partner (330) 762-9102/www.signet-enterprises. Vogelgesang, Edgewater Capital Partners managing director; 28601 Chagrin Blvd., Suite 205, Cleveland 44122 Brendan D. $2,000 2,000-10,000 Lynn W. Carpenter, (216) 292-3838/www.edgewatercapital.com Anderson, Jeffrey D. director Kadlic, managing South Franklin Street Partners $1,500 2,000-8,000 10 1/2 E. Washington St., Chagrin Falls 44022 ike 44122 partners Evolution Capital Partners LLC (440) 264-8040/www.sfspartners.com John Gannon 29325 Chagrin Blvd., Suite 302, Pepper P R. John Fletcher, general partner (216) 593-0402/www.evolutioncp.com CEO, founder; $1,000 2,500 Pearson M. Spaght, Sunbridge Partners Linda Tufts, general John M. Rice, 000-6,000 3659 Green Road, Suite 118, Beachwood 44122 $500 2, partners; Peter (216) 360-0151/www.sbpvc.com Suzette Dutch, 215 Fletcher Spaght Ventures Kleinhenz, venture Dennis Costello, 180 E. Broad St., Suite 810, Columbus 43 partner Carrie Bates, managing partners; andan Venture (614) 429-4236/www.fletcherspaght.com $250 3,000-5,000 E. M. de Windt Jr. Triathlon Medical Ventures George Emont, senior managing 300 E-Business Way, Suite 200, Cincinnati 45241 venture partner director, CEO 24 $1,000 5,000-25,000 (513) 723-2600/www.tmvp.com Lee Zapis Gates Group Capital Partners Rich Bongorno 6120 Parkland Blvd., Suite 202, Mayfield Heights 441 CEO (440) 684-9900/www.gatesgroupcp.com Stephen R. Haynes $50 100-500 CFO 500 managing director $100 Zapis Capital Group LLC 44122 RESEARCHED BY 26202 Detroit Road, Suite 300, Westlake 44145 s Cleveland Glengary LLC (440) 871-1300/www.zapiscapital.com Deborah W. Hillyer 3201 Enterprise Parkway, Suite 430, Beachwood John G. Nestor ompanies unless footnoted. Crain' (216) 378-9200/www.glengaryllc.com chairman, senior Source: Information is supplied by the yc the information and there is no guarantee will these $10,000 10,000-30,000 managing partner 2 Business does not independently verif ividual lists and The Kirtland Capital Partners curate. We welcome all responses to our lists and Frank N. Linsalata, listings are complete or ac larifications in coming issues. Ind 3201 Enterprise Pkwy., Suite 200, Beachwood 4412 Eric V. leveland.com. Originally (216) 593-0100/www.kirtlandcapital.com chairman; include omitted information or curchase at www.crainsc . (2) Previously ipal Partners Corp 000 Bacon, Stephen B. Book of Lists are available to p $10,000 20,000-35, Perry, senior Linsalata Capital Partners managing directors published Feb. 20, 2012. (1) Formerly Key Princ 5900 Landerbrook Drive, Suite 280, Mayfield Heights National City Equity Partners. 44124 Clifford Croley, (440) 684-1400/www.linsalatacapital.com Michael Martell, $500 1,000-10,000 Philip Rice partners Main Market Partners LLC Akron 44308 39 E. Market St.., Suite 401, (216) 409 8983/www mainmarketpartners com CapitalCa Firms

Ad close: Feb 7 Advertising Information: Nicole Mastrangelo at 216-771-5158 or [email protected] 20130204-NEWS--12-NAT-CCI-CL_-- 2/1/2013 3:10 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 4 - 10, 2013

Attn: Manufacturers & Warehouses GOING PLACES LIGHTING CASE STUDY JOB CHANGES N.E. Ohio Warehouse 110K sq. ft. ARCHITECTURE Annual Energy Savings $57,666 KA ARCHITECTURE: John G. Burk FirstEnergy Rebate $38,950 to president, COO; Craig H. Accelerated Tax Deduction Benefit $25,317 Wasserman to executive vice Brighter Facility president. Replaced HID, 400 watt Metal Halide CONSTRUCTION Burk Wasserman Perry Guzman Fixtures with Energy Efficient T-5 Fixtures WELTY BUILDING CO. LTD.: Robert Perry to vice pesident. DISTRIBUTION MFS SUPPLY: Brandon Guzman CALL TODAY! to director of sales. Turnkey project by EDUCATION Murphy Hewitt McCaffrey Petruzzi ROI Energy KENT STATE UNIVERSITY: www.ROI-Energy.com Rebecca Murphy to associate vice president, University Communications 330-931-3905 and Marketing. FINANCIAL SERVICE FIRSTCREDIT INC./REVCARE/PAYMED SOLUTIONS: Paula Zamary to early out team lead; Michelle Lin- Kirshner Witmer Feniger Borodkin HALEMAGAZINE.COM genhoel to client support and billing team lead; Angela Williams, News, insight and analysis of shale drilling in Ohio Patricia M. Ianni, Helen E. Heather Horn, Amy Marazzi and Weeber and Michael G. Duffy to SERVICE The promise of shale drilling. Stephanie Foore to patient account senior managers; Deborah L. PRADCO: Larry Borodkin to vice managers. The power of Crain’s. Whims and Shawn Philabaum to president. HOWARD, WERSHBALE & CO.: managers; Timothy I. Kadylak, VEDISCOVERY LLC: Wayne Pig- Siobhan M. Lukowski, Randy T. nolet to chief operating officer; Paul Wolan and Brent R. Meyer to Cervelloni to vice president, sales; S senior accountants; Scarlette N. Martin J. Mangan to vice president, Streeter to senior; Mengchen product development; Ryan T. Zhang and Chelsea Francisco to Steele to sales representative; staff accountants; Kirsten H. William J. Krueger to sales execu- Thompson to staff development tive; Lisa A. Canter to manager, director; Melissa C. Miavez to quality assurance; Therese A. assistant controller; Dottie Hauman Healey to project manager; Dan to revenue cycle specialist; Mari I. Carl to software developer. Engelhardt to manager, software system trainer; Heather A. TECHNOLOGY Fitzgerald, Mary V. Horvath, ONOSYS: Stacey R. Kovalchuk and Sandra Hayley O’Hare Touschner to consultants, software to client support system trainers. specialist. PEASE & ASSOCIATES INC.: Alex Semerano to shareholder; Joseph UTILITY Velkos to senior manager; Kelly FIRSTENERGY Mocarski to supervisor; Jennifer CORP.: Fred MacDowell to senior staff; Scott O’Hare von Ahn to vice Caine, Tiffany Klimcak and Emily president, Central Fleet Operations. Briesath to staff, tax; John Brasofsky to staff, audit; Roxanne Rakicevic and Bethany Hollowell BOARDS to administrative assistants. ADOPTION NETWORK CLEVE- LAND: John Zaranec (KPMG) to HEALTH CARE chair; Anita Miller to first vice chair; Lisa Buescher to second vice chair; NEIGHBORHOOD FAMILY Joshua Berman to secretary; Ted PRACTICE: Dr. Richard Hill to Grabowski to treasurer. medical staff. AMERICA SCORES CLEVELAND: LEGAL Ruth Coffey (Invacare Corp.) to chair. BRICKER & ECKLER LLP: Tom FEDERAL RESERVE BANK OF Onusko to member. CLEVELAND: Richard K. Smucker TUCKER ELLIS: Christopher (J.M. Smucker Co.) to chairman; Hewitt and John McCaffrey to part- Christopher M. Connor to deputy ners; Anthony Petruzzi to counsel; chairman. Adrienne Kirshner to associate. ROCKY RIVER CHAMBER OF COMMERCE: Debra Bernard MANUFACTURING (Rocky River City School District) to CUSTOM CLUTCH, JOINT & HY- chairwoman; Rusty Deane, Kevin DRAULICS INC.: Scott Ballantyne New, Marc Hustek and Bill Ferry to owner, CEO. to vice chairmen; Mike Trifiletti to treasurer; Nick Cronin to secretary. MARKETING AWARD HIGHLAND PR: Blake Ferguson to graphic designer; Bethany English NATIONAL ASSOCIATION OF to assistant account executive. CORPORATE DIRECTORS: Janet Jankura to fellow. INNIS MAGGIORE: Dallas Witmer to web developer. RETIREMENT NONPROFIT FIRSTENERGY CORP.: Frank Lubich, after 35 years. GORDON SQUARE ARTS DISTRICT: Judi Feniger to executive Send information for Going Places to director. [email protected]. 20130204-NEWS--13-NAT-CCI-CL_-- 1/31/2013 4:02 PM Page 1

FEBRUARY 4 - 10, 2013 CRAIN’S CLEVELAND BUSINESS 13

INSIDE 14 FORMER PUBLIC OFFICIALS FACE CHALLENGES IN PRIVATE SECTOR LEGAL AFFAIRS LAW FIRMS PLAY

THE NAME GAME IN BRIEF

■ THE RIGHT PRESCRIPTION: A medical/legal summit will be held April 12 and 13 at the Cleveland-Marshall College of Law. The event, co-sponsored by the Cleveland Metropolitan Bar Association, the Academy of Medicine Education Foundation and the Academy of Medi- cine of Cleveland & Northern Ohio. The aim of the summit is to bring to- gether doctors, lawyers, health care professionals and others who work in allied professions in Northeast Ohio. The featured presenter, on April 12, will be Dr. Ezekiel “Zeke” Emanuel, vice provost for global initiatives and chairman of the Department of Medical Ethics and Health Policy at the Universi- ty of Pennsylvania. Dr. Emanuel from 2009 to 2011 was special adviser for health policy to the director of the White House Office of Management and Budget. Some of the topics to be covered during the summit are: ■ Apologies and disclosures of ad- verse events: What to say when some- thing bad happens to a patient? ■ Debate on end of life and other medical, legal and ethical issues ■ Physician practice acquisitions ■ A frank conversation with govern- ment regulators ■ Protecting patient information from technological threats ■ Pain management in the face of the prescription drug abuse epidemic For more information on the summit, call the bar association at 216-696- 2404 or the Academy of Medicine of Cleveland & Northern Ohio at 216-520- 1000.

■ WHO TO WATCH IN LAW: Crain’s Cleveland Business is looking to profile some of the region’s legal up-and-com- ers in “Who to Practices shorten identities in effort to be more memorable Watch: Law,” a special section slated for publi- By MICHELLE PARK “It’s easier to brand,” he added. “We don’t think of PepsiCo as cation July 15. [email protected] the PepsiCo Bottling Co. of North America, or whatever it is. If you Shorter is easier. Shorter is more identifiable.” think you etermined to become more memorable in this While some firms shortened their names years, even a decade, know who increasingly succinct, social media-immersed world, ago, the trend seems to have accelerated in recent years, legal will be more law firms want the world to get to know them insiders say. among on a first-name basis. Nationwide, a number of firms also have abbreviated their those lead- DBy the end of February, Akron-based Roetzel & Andress will names to initials, following in the footsteps of big accounting ing the Northeast Ohio legal sector of roll out a new logo and website bearing only the word, Roetzel. firms such as KPMG, noted Peter Zeughauser, chairman of the future, drop an email to Amy Ann And, in early 2012, Squire Sanders dropped the Dempsey that Zeughauser Group, a legal consulting firm with offices in Stoessel, [email protected], or used to round out its name. Benesch, Friedlander, Coplan and Chicago, Washington, D.C., and California. He cited DLA Piper call 216-771-5155. Start thinking now, Aronoff LLP in fall 2010 began using only the Benesch for and K&L Gates as examples. and send in your suggestions by June marketing purposes, and Calfee, Halter & Griswold LLP, too, has “There has been a somewhat long-term trend to go (to) one 10. since 2005 used only the Calfee in its logo. name for firms,” Mr. Zeughauser said. “Easier to remember. There are no hard and fast require- “It’s a lot more contemporary to have a law firm with a short, Better for graphics. Both add up to more effective branding.” ments for possible inclusion in this succinct, memorable name than it is to have a string of three, Limiting a firm to one name also can make things easier in the section, other than the candidate needs four, five names,” said Rick Rymond, a member of Reminger Co. event of mergers, he noted. Consolidation has been on the rise to have exhibited the kind of potential LPA’s executive group and the man behind the firm’s advertis- in the legal field. that makes him or her someone to ing and marketing. See NAME Page 15 watch. 20130204-NEWS--14-NAT-CCI-CL_-- 1/31/2013 3:25 PM Page 1

14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 4 - 10, 2013 LEGAL AFFAIRS Former public officials face not-so-private changes

ness, Mr. Bower said. But not every “The network of contacts that LaTourette, Mason and other high-profile figures often are politician-turned-partner makes has been developed by (a) former the transition successfully, and public official over the years can heavily recruited to increase visibility of region’s law firms some do not prove to be successful prove invaluable in terms of both rainmakers and attorneys, he business development as well as By MICHELLE PARK added. helping to get solutions for exist- [email protected] “The whole hiring of politicians, ing clients,” said Mr. Krassen, it can cut either way,” he said. partner in charge of the Cleveland If recent examples are any indi- “Politicians make friends, but they office. “Bill knows many public cation, the road to law firm work also make enemies. You just don’t and private sector leaders, so he remains quite direct for those know how that’s going to work understands the challenges that who’ve led public service careers. out.” are being faced.” The phone started ringing not The wow factor Both Mr. LaTourette and Mr. long after Steven C. LaTourette Mason say they were drawn to announced his retirement from Carl J. Grassi, who’d seen Mr. their new roles because they com- the U.S. House of Representatives, LaTourette in action as a con- plement what they’ve been doing. and in short order, he said he gressman and a prosecutor, wast- When asked, they confirmed that found himself being courted by ed no time contacting Mr. La- their private-sector salaries are LaTourette Mason eight prospective employers, Tourette once he learned he more lucrative. including law firms. LLC on Jan. 7 — less than a week phenomenon, but it does pick up would retire. “Nobody makes a lot of money And when former Cuyahoga after his ninth and final term every election season, said Ward “There’s a great commoditiza- working for the federal govern- County prosecutor Bill Mason de- ended — to launch its new gov- Bower, a principal with Altman tion that’s going on with law firms ment or the government at any cided to retire, he dialed a lawyer ernment strategies subsidiary, and Weil Inc., a legal management unless they’re unique,” said Mr. level,” Mr. LaTourette said. who’d encouraged him years ago Mr. Mason left the public space in consulting firm based in Newtown Grassi, president of McDonald It doesn’t surprise David S. to call if and when he was ready to September and became on Oct. 1 Square, Pa. Hopkins. “We don’t want to just Goodman, managing partner of leave the public realm. a public finance partner in the “We just finished an election be purely perceived as people who Squire Sanders’ Cleveland office, Both men now are leveraging Cleveland office of Bricker & Eck- year, and people are available,” he produce documents. I think what that law firms continue to pursue their high profiles for local law firms. ler LLP, a Columbus-based firm. said. Steve does for us is bring a whole public officials, particularly in Mr. LaTourette joined Cleve- The hiring of high-profile public The expectation is that big-name other perspective in terms of his light of how the interactions be- land law firm McDonald Hopkins officials by law firms is no new recognition will produce big busi- role and what he’s seen.” tween the private sector and gov- Mr. LaTourette and his wife, ernment “become greater all the Jennifer, who spent 10 years lob- time.” That makes any firm’s regu- bying for Van Scoyoc Associates, latory practice all the more signifi- are heading McDonald Hopkins cant, he said. Government Strategies LLC, a fed- Squire Sanders recently com- eral lobbying arm that Mr. Grassi memorated the late 2012 retire- called a natural extension of the ment of its own high-profile attor- firm’s state lobbying practice. The ney, Louis WE ARE ROETZEL. subsidiary’s Washington, D.C., of- Stokes, who fice opened Jan. 7 and brought the joined the firm firm’s number of offices to seven. in 1999 after 30 “The question (from clients) is, years of con- do you have somebody in Wash- gressional ser- ington who can help me take care vice. of this,” Mr. LaTourette said. “For us to “Now, McDonald Hopkins can have someone answer yes.” of his stature, Stokes McDonald Hopkins has hired not just locally other public officials over the but nationally, be one of our col- years — prosecutors, mayors, leagues was an honor and privi- judges — but no one with Mr. La- lege,” Mr. Goodman said. “After 30 Tourette’s 18-year, nine-term years in Congress … he was capa- experience, Mr. Grassi said. ble of enabling us to provide our Restricted for a year from lobby- clients with an extraordinary abili- ing Congress, Mr. LaTourette is fo- ty to develop strategy and analyze cused on business development; how best to achieve goals that in- in one recent week, he traveled to volved government at all levels.” Chicago, California, and Orlando and Jacksonville, Fla., in five days, Not without some baggage pitching business and doing me- dia appearances. That’s not to say Mr. Goodman “It’s busy, which is a good prob- and other law firm leaders don’t lem to have,” he said. see challenges to hiring high-pro- Also in high demand is Brian file figures. For one, some former politi- 0VS$PSQPSBUFBOE#VTJOFTT4FSWJDFTBUUPSOFZTQSPWJEFFYQFSJFODFEDPVOTFMUPDMJFOUTUISPVHIPVU Hayes, a former National Labor Relations Board member who in cians — not Mr. Stokes, Mr. Good- BMMTUBHFTPGCVTJOFTTEFWFMPQNFOU8FBSFUSVTUFEBEWJTPSTXIPXPSLXJUIPVSDMJFOUTBOEJOIPVTF early January joined labor and man noted — can have a “very employment law firm Ogletree, difficult adjustment” to becoming DPVOTFMUPBEESFTTUIFDIBMMFOHFTBOEPQQPSUVOJUJFTBTTPDJBUFEXJUIUIFGPSNBUJPO PQFSBUJPO BOE Deakins, Nash, Smoak & Stewart someone who provides a service TUSBUFHJFTGPSHSPXUIPGBMMUZQFTPGPSHBOJ[BUJPOT8FEFWFMPQTUSPOHQBSUOFSTIJQTXJUIPVSDMJFOUT P.C. rather than being a figure who is “His schedule is literally book- heavily pursued and courted, Mr. UPVOEFSTUBOEUIFJSCVTJOFTTFT WJTJPOTBOEHPBMT8FBSF3PFU[FM BOEPVSFYQFSUTBSFKVTUBQIPOF ing out months in advance,” said Goodman said. Wade Fricke, a founding share- “I think people who have spent DBMMPSBDMJDLBXBZ holder of the Atlanta-based firm’s a long career in prominent public Cleveland office. service are accustomed to having 216.623.0150 Although Mr. Hayes is based in people come to them,” he said. 'PSNPSFJOGPSNBUJPO DBMMVTBU Washington, D.C., he is available Plus, legal consultant Mr. Bower 0SWJTJUVTBUralaw.com/business_services for consulting clients in Cleveland noted, sometimes, hiring a former and the firm’s other markets — elected official can alienate some something Mr. Fricke said carries a of a firm’s clients. “wow factor” in that Mr. Hayes “is Another temporary hurdle: as solid a person as you can find to Sometimes, as in the case of Mr. help our clients understand what LaTourette, the hired partner can- they’re supposed to do.” not be fully engaged for some pe- riod of time until restrictions are Value proposition lifted, noted Jim Friedman, a part- For his part, Bricker’s Glenn ner of Benesch law firm. And, a CLEVELAND t$)*$"(0t/&8:03,t50-&%0t",30/t$0-6.#64t$*/$*//"5* Krassen is confident that Mr. Mason public figure’s prior service can 8"4)*/(50/ %$t5"--")"44&&t03-"/%0t'035.:&34t/"1-&4t'035-"6%&3%"-& will enhance the firm’s service to lead to perceived conflicts of in- political subdivisions, such as terest and extra scrutiny from the school districts and port authorities. public and the media, he added. ■ 20130204-NEWS--15-NAT-CCI-CL_-- 1/31/2013 2:53 PM Page 1

FEBRUARY 4 - 10, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 15 LEGAL AFFAIRS Name: Some firms won’t ‘get caught up’ in shortening monikers

continued from PAGE 13 punctuation,” said Ralph Cascaril- gizing for it. decided against it, Mr. Patno said. The reason for no name change And, with more firms joining la, managing partner of Walter | “We did not get caught up in the “Who we are is who we were 50 at Kohrman Jackson & Krantz PLL the Twitter-sphere, where users Haverfield. “We thought … the bar marketing whim of the moment,” years ago, only larger,” he said. in Cleveland is “respect for our may use only 140 characters in a approach, the linear approach said Christian Patno, who serves “It’s what works for us. If what history,” said Marc Krantz, the single post, the shorter your name, would be an updated presentation on the eight-person strategic com- you’re doing is working for you, firm’s managing partner and son of the longer the rest of your post can of the firm name. mittee for McCarthy, Lebit, Crystal why change it just to keep up with Byron Krantz, one of the founders. be, noted Jeanne Hammerstrom, “It’s a recognition of exactly how & Liffman Co. LPA in Cleveland — the Joneses?” The three named partners remain chief marketing and recruiting people speak,” he added. “People often dubbed McCarthy Lebit any- Those least likely to make the active in the firm, he said. officer for Benesch who served as don’t say Calfee, Halter and Gris- way, he noted. change are first-generation firms, “You lose a little bit of history of 2011 president of the international wold. People say Squire Sanders or “We have no plans to change,” said Ward Bower, a principal of the firm whenever you start drop- Legal Marketing Association. Thompson Hine or Walter Haver- he added. “This firm is about the Altman Weil Inc., a legal manage- ping names,” Mr. Krantz said. “You only have so much room, field. The shortening of the names lawyers; it’s about the history of the ment consulting firm based in “We actually think that our and you don’t want to use up all of is a reflection of the current culture. lawyers. We don’t need taglines or Newtown Square, Pa. three names sound good, with the the room with names,” she said. catch phrases to try to compete for “Partners are still around and two k’s bookending the Jackson in Nod to history More than just name dropping clients. Our clients know us.” sensitive to keeping their name in the middle,” he added. “We’re not Some firms’ names remain a McCarthy Lebit executives con- the firm name, even if it’s the fourth worried about anything being Most law firm executives cite mouthful, and they’re not apolo- sidered shortening the name and out of six,” he said. “It’s just ego.” more snazzy than our name.” ■ branding and marketing as the reasons they’ve shortened their firms’ names. Many also note that legally, their firms’ names remain their longer versions of the past. Reminger & Reminger Co. LPA, however, did legally change its What do you look for in a law firm? name to Reminger Co. LPA in 2007. Being a more identifiable law firm in the marketing realm is more important today, Mr. Rymond asserted. “The sources by which people select a lawyer are far more driven by media outlets than they were Strong leadership. 20 years ago,” he said. “Twenty years ago, people selected lawyers because that’s who their dad used. Now people select law firms based upon, I think, a lot more objective information that’s available.” Changing Reminger’s name actually was quite inexpensive, Mr. Rymond noted, which begs the question: Why, then, isn’t everyone doing it? “One of the reasons that some firms may be slow to adopt a name change is you’ve still got multiple principals whose names still ap- pear in the firm name and there may be an ego factor, a pride fac- Established reputation. tor,” Mr. Rymond said. “We didn’t have that. We had no Reminger here when we changed our name.” The name shortening is symp- tomatic of the evolution of larger law firms to now emphasize the entity over the individual lawyer, said Rob Roland, managing part- ner of Day Ketterer Ltd., a Canton- based law firm that dropped three names in 2004. “By removing the names of influ- ential individual attorneys from the firm name, law firms are conscious- ly or unconsciously, I don’t know which, emphasizing the organiza- tion over the individual,” he said. “This is the opposite of how the law firm world operated in the past.” Focused wisdom. The mobility of attorneys today is a major motivator of that trend, Mr. Roland said. “There was, for many, many, many years, very little mobility of attorneys between offices,” he said. “Now, you see attorneys moving all the time. A main player today at a Proven performance. big firm could be a main player at another firm tomorrow, and so therefore, the logical extension of that is that the law firm cannot tie its identity as tightly as it has in the past to a particular attorney.” Cleveland firms aren’t just dropping names. For more than 80 years, Walter | Haverfield attorneys have been providing insightful BakerHostetler — formerly Bak- advice and leadership while vigilantly watching out for our clients’ best interests. er & Hostetler — and Walter | We set ourselves apart from the competition by setting high standards for service Haverfield LLP — no longer Walter & Haverfield — in 2012 eliminated and satisfaction. As a result, we offer an unmatched track record for providing what executives say is the “anti- creative solutions designed to help businesses reach new heights. If this doesn’t quated” ampersand. Walter | sound like your law firm, perhaps it’s time to look for a new one. Haverfield’s logo now is presented Cleveland | 216.781.1212 | walterhav.com in a linear, not stacked, way. “Ampersand is an old form of 20130204-NEWS--16-NAT-CCI-CL_-- 1/31/2013 11:51 AM Page 1

16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 4 - 10, 2013 LEGAL AFFAIRS Porter Wright is among Recent rulings help WKHÀUVW$&&9DOXH &KDPSLRQVLQWKHZRUOG illustrate employers’ KRQRUHGE\WKH$VVRFLDWLRQ Innovative legal project management injury law exposure RI&RUSRUDWH&RXQVHO concepts and alternative ecently, Ohio’s Supreme fee arrangements Court reaffirmed the validity GREGORYGUICE were critical to being of the 2005 Ohio law on CLIFFORDMASCH workplace accidents limiting honored as a 2012 Ran employee’s ability to sue his em- ACC Value Champion. ployer for being injured on the job. The Ohio Supreme Court revisit- ed challenges to the 2005 Ohio law in the cases of Bruce Houdek v. Thyssenkrupp Materials NA and Larry Hewitt v. L.E. Myers Co. In both cases, the Ohio Supreme Court reiterated that an employee ADVISERS must show that his employer acted with intent to cause the employee’s of a toxic or hazardous substance, injury and that without evidence to then the intent requirements of the show such intent, an employee 2005 law are presumed, although could not maintain such a lawsuit. this presumption can be rebutted The 2005 Ohio law on workplace by the employer. accidents re-establishes the “bar- The Hewitt decision helps to de- gain” between employers and em- fine the limits of the section of the ployees giving rise to Ohio’s work- 2005 law regarding presumed intent. We earn our stripes. ers’ compensation system, which In Hewitt, the employee argued was designated as the exclusive that he was not issued proper safe- porterwright.com remedy for employees injured in ty equipment that would have pro- an accident on the job. tected him from an accident. The On the one hand, the system Ohio Supreme Court, however, Cincinnati | Cleveland | Columbus | Dayton | Naples | Washington D.C. does not require that the employee found that the 2005 law was clear establish that the accident was the as what circumstances would fault of the employer. The employ- create the presumption of intent. ee’s compensation and medical Specifically, the “removal of an expenses are provided through the equipment safety guard” exception Facebook.com/CrainsCleveland workers’ compensation system, is limited to situations where the without regard to fault. employer actually removed a safety In exchange, the employer guard from a piece of equipment. JOIN THE CONVERSATION receives immunity from all other The mere alleged failure of an em- liability exposure beyond the ployer to provide safety equipment Twitter.com/CrainsCleveland exclusive remedy under the work- is not commensurate with the ers’ compensation system. “removal of safety equipment.” The only recognized exception It has generally been acknowl- to the employer’s immunity arises edged by both plaintiff and in the situation where the actions defense lawyers that the 2005 law of the employer are deemed so would severely curtail an employ- egregious that the law character- ee’s ability to bring an employer izes the actions of the employer as intentional tort claim. EMPLOYMENT LAW. rising to a level of an intentional However, despite the limitations act to cause the employee’s injury. upheld in the Houdek and Hewitt The 2005 Ohio law (as well as its cases, this claim still remains viable. previous incarnations) was enact- The most likely focus of future cases COVERED. ed to define and limit the scope of will be the “safety guard” exception. this exception to the worker’s In that regard, employers should compensation system. be careful to ensure all existing safe- The Houdek and Hewitt cases ty equipment on any machinery help illustrate the limitations of the remain in place and operational. intentional tort remedy. Employers should be careful of In the Houdek case, the court any scenario that can be described re-affirmed that there must be a as substantially similar to remov- showing of a “specific intent” by ing a guard from equipment. AT REMINGER, our employment practices defense group strives to defend the employer to cause the injury. Employers should keep and main- your company vigilantly when legal matters arise. We routinely work with Specifically, the Ohio Supreme tain any documents coming with a the Equal Employment Opportunity Commission and OSHA, and frequently Court rejected a lower court’s use piece of equipment. defend common law claims as well as all areas of discrimination law in jury of a “reasonable employer” test to Employers should also have in trials at both the state and federal court levels. establish an employer’s “intent.” place a protocol to provide a clear The Ohio Supreme Court af- description and warning relative to RESULTS. PERIOD. It’s more than just our motto, it’s our passion. To learn firmed that only upon a showing of the existence of any toxic or haz- more about our employment law practice, contact Co-Chair Nicholas Satullo. an employer’s specific intent, not ardous substance in the industrial or simply a showing that the reason- medical setting. If possible and ap- Pictured L to R: Co-Chairs Nicholas Satullo & Joseph Borchelt, Stephanie Hathaway, Practice Group able employer would have acted propriate, employers should have Leaders Andrew Dorman and Roy Hulme differently, could an employer be designated safety personnel that can held liable for a workplace injury. serve as point personnel on safety is- The requirement of proof of show- sues to ensure a clear and consistent ing intent to injure, while an message relative to safety issues and extremely high burden, fits within for informational purposes. ■ the “bargain” giving rise to the worker’s compensation system. Mr. Guice and Mr. Masch are Recognizing the high burden of shareholders in the Cleveland office showing specific intent, the 2005 of Reminger Co. LPA. Mr. Masch is Results. Period. law codifies the historical situa- the co-chairman of the firm’s Ap- tions where intent has been found pellate Advocacy Practice Group Reminger.com - 216.687.1311 and allows a presumption of intent and Mr. Guice is the chairman of in certain circumstances. the firm’s Retail and Hospitality If the employee has evidence that Practice Group. Mr. Guice and Mr. Akron | Cincinnati | Cleveland | Columbus | Sandusky | Toledo | Youngstown | Ft. Mitchell | Lexington | Louisville | Indianapolis the employer either removed an Masch represented Thyssenkrupp equipment safety guard or deliber- Materials NA in the Houdek v. ately misrepresented the existence Thyssenkupp matter. 20130204-NEWS--17-NAT-CCI-CL_-- 1/31/2013 4:18 PM Page 1

FEBRUARY 4 - 10, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17 LEGAL AFFAIRS BEST OF THE EXPERT BLOGS

Excerpts from recent blogs Although the scope of each ical to lessen these fears in order prevents candid disclosure than determining whether the facts un- in Crain’s industry emails. To investigation will vary ... there are to ensure a cooperative and truth- the perception of impartiality. ... covered violate any laws. subscribe to the daily emails, 10 fundamental actions every ful witness. … 6. Ask for specific examples 8. Report back to the complain- go to www.crainscleveland. employer conducting a workplace 3. Listen carefully to the inter- when discussing the com- ing party. … com/section/email_products investigation must take … viewee. Although it is important to plainant’s allegations. Do not ac- 9. Take appropriate corrective 1. Identify all key allegations focus on the central allegations cept the complainant’s allegations action, if necessary. The range of It happened in Vegas and relevant witnesses. After re- and claims triggering the investi- at face value but, rather, ask them discipline could include any of the ceiving the complaint, it is critical gation, it is equally important to questions designed to elicit specif- following: written warning, suspen- ■ At the end of last year, in one of to prepare an agenda or outline explore issues that come to light in ic examples that you can explore sion, demotion, placement on a the more interesting opinions of for interviewing witnesses and, the investigation, particularly if with other witnesses. performance improvement plan, 2012, a federal judge upheld an then, right away set up times to in- they appear to relate to the allega- 7. Analyze the facts and reach a corrective action plan, termination. employee’s right to take Family terview all relevant witnesses. ... tions or claims you are exploring. conclusion. Once you have con- 10. Consider other “lessons Medical Leave Act (FMLA) leave to 2. Develop an “opening state- 4. Document, document, docu- cluded the investigation, you learned.” Employers should revise care for her mother during a recre- ment” when talking to employees ment. Take clear, concise notes at should review the information or re-consider any problematic ational trip to Las Vegas. and managers. Because many em- each interview to ensure an accu- gathered shortly thereafter and, policies or practices exposed by the The employee, Beverly Ballard, ployees will be nervous and ap- rate record .... then, assess the validity of the investigation ... — Mike Jackson, was a swimming instructor. Her prehensive in participating in 5. Remain neutral. Nothing complaining party’s allegations associate, Fisher & Phillips. (Jan. mother, who had been diagnosed workplace investigations, it is crit- stops an investigation quicker or and consult with legal counsel in 29, Crain’s Work Force Report) with end-stage congestive heart fail- ure, won a trip to Las Vegas through the Fairy Godmother Foundation. Despite the fact that Ballard’s em- ployer denied her request for leave, Ballard accompanied her mother on the trip and was subsequently terminated for taking unauthorized time off. Ballard sued, claiming that the employer interfered with her MY BENESCH ability to take FMLA leave to care for her mother. At issue was whether or not Ballard qualified for FMLA leave to care for her parent. There was no question that Ballard met the threshold eligibility requirements “ I work with Benesch because of their of FMLA based on her length of ability to get to the core of an issue and employment and number of service hours. Ballard also argued, and the then develop the strategies to resolve it, court accepted as true, that she was her mother’s primary care giver, whether an everyday matter or something which included Ballard preparing out of the ordinary.” her mother’s meals, administering her mother’s insulin shots and DAVID I. MANSBERY medicine, tending to her mother’s President other medical needs, bathing her, Duck Creek Energy, Inc. transporting her, and providing emotional support. This case is unique, however, because the purpose of the trip was not for her mother to seek medical treatment. In the past, courts have typically dismissed FMLA lawsuits involving trips when the family member being cared for was not seeking treatment at a remote loca- tion. Ballard’s attorney, however, argued that since she was still pro- viding care to her mother in Las Ve- gas, even though she was on a pure- ly recreational trip, the trip was one which qualified Ballard for leave. … In prior cases, courts have man- dated that caregiver leave under the FMLA should either be at home or part of in-patient treatment. Bucking this trend, the judge in the Ballard case ruled that it didn’t MY TEAM Cleveland matter where the employee provid- ed care as long as she was, in fact, providing care. It’s important to Columbus David considers himself a “serial entrepreneur” and has relied on note that this case is now being ap- Benesch for a multitude of business needs. From handling real estate, pealed, so we will have to wait to see if this court’s opinion holds. In the Indianapolis leasing, litigation and general business matters for Duck Creek Energy meantime, this opinion opens the to navigating the successful sale of a prior business and its intellectual door to a possible onslaught of law- Philadelphia suits in which employees may seek property to incorporating a new venture, Benesch has the breadth and to “stretch” the limits of FMLA to in- clude caregiver-related activities not Shanghai depth to help David go wherever his ideas take him. traditionally covered by the FMLA. … — Susan Keating Anderson, White Plains labor and employment attorney at To learn more about our relationship with Duck Creek Energy, Walter & Haverfield LLP. (Jan. 29, visit beneschlaw.com/myteam Crain’s Work Force Report) Wilmington

Investigation Top 10 www.beneschlaw.com ■ Whether it’s an organization of 20 or 200, today’s employer must be ever-mindful that numerous federal and state laws impose on them a duty to investigate allega- Featured attorneys (left-right): ROBERT A. ZIMMERMAN, LORI H. WELKER, DAVID MANSBERY, JR., DAVID R. MAYO and JOSEPH G. TEGREENE tions of wrongdoing, misconduct, © 2013 Benesch Friedlander Coplan & Aronoff LLP safety violations, or accidents. … 20130204-NEWS--18-NAT-CCI-CL_-- 1/31/2013 11:52 AM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 4 - 10, 2013 LEGAL AFFAIRS Many companies in need of device policies

employee’s personal device. that company data — even when As more employees BEWARE OF BYOD “Really at that point it is nearly too it is on personal devices — is still late to think about it,” Mr. Kerr the company’s property, Mr. Op- bring own gadgets Issues to consider Creating a policy said, adding that the data in ques- sitnick said. It should state that tion need not be something as the company has the right to pro- ■ Are employees per- ■ BYOD policies sensitive as trade secrets. The loss tect its data and take it back when to work, businesses mitted to connect to en- should draw restrictions of contact lists and appointment appropriate. In practice, that terprise applications via on what employees can calendars, for example, can greatly might mean the device has to be must be protected their smart phones or and cannot do. disrupt the transition to a new password controlled with the tablets? ■ What applications By JUDY STRINGER sales rep. password changed periodically. It ■ Can they store and/or networks may be [email protected] Of course, the more sensitive might mean certain information company information? accessed with personal and privileged the data, the must be encrypted or, in the case ■ What happens to devices? greater the need to control and of employment termination, “the For better or worse, smart that data when an em- ■ Can any of the protect it. employee must delete any compa- phones, tablets and personal lap- ployee upgrades his de- company’s documents ny information,” Mr. Kerr said. tops are infiltrating the workplace. vice and gives the older be downloaded? Companies that handle defense Further employee notice is Statistics suggest a growing model to his daughter or sells it on ■ Some companies may restrict department contracts or those in needed if the company is using or number of employees are bringing eBay? tools that facilitate the sharing of highly regulated industries such as intends to install software on the their own mobile devices to work ■ What if the device is stolen or information, such as iCloud and health care and finance should device that locks it up or “wipes” and using those devices to access lost? Dropbox. have huge concerns related to company information and appli- BYOD, said Timothy M. Opsitnick, it clean — including the deletion cations, a practice that’s common- founder of Cleveland-based JurIn- of personal photos and data — in ly referred to as Bring Your Own devices to corporate networks and nies, in particular, are falling dan- nov, a company the helps busi- the event the device is lost or Device (BYOD). access, as well as manipulate and gerously behind in drafting BYOD nesses manage and track informa- stolen. A February 2012 survey by Har- store company data on them. safeguards, according to Jim Kerr, tion. Finally, the policy should ris Interactive found that more It comes down to “more and president of CRU Solutions, a Highly creative organizations inform employees that using a than 80% of 1,300 U.S. respon- more employees really wanting a Middleburg Heights firm that as- typically have fewer issues with personal phone, tablet or laptop dents use some kind of personally digital office in lieu of a brick-and- sists small companies with their IT information confidentially and for business means the device owned electronic device for work- mortar office,” said Charles needs. These smaller organiza- security, he said. “Most everybody might be subject to searches by related functions. Billington, a labor and employ- tions are quick to say “yes” to is in the middle somewhere,” Mr. the company or during litigation, Avanade, a Seattle-based con- ment attorney in the Cleveland BYOD, hoping to cut costs as em- Opsitnick said. “You have to find which most certainly would sulting firm, pegged global BYOD office of Ogletree, Deakins, Nash, ployees foot the bill for mobile some way to make employees include shifting through personal penetration at nearly 90% based Smoak & Stewart P.C. gadgets, Mr. Kerr said. happy, but somehow take guard.” data. on its November 2011 survey of And, while BYOD as a practice is But, they lack the in-house ex- Mr. Opsitnick and his “There is almost no way you 605 high-ranking executives, IT undeniably on the rise, Mr. pertise and resources to institute a colleagues stressed the need for a can ensure searching (a device for decision makers and business unit Billington and others in Northeast formal policy. written BYOD policy that employ- company information) will avoid searching your personal data. You leaders at companies in 17 coun- Ohio report that companies have For these businesses, the ab- ees can understand. The first have to search the whole device,” tries. been slow to implement written sence of such a policy often comes question employers should ask is, Mr. Blackie said. Of course, BYOD is not an en- policies that dictate the role and to light when an employee is exit- “Will BYOD be permitted at all?” The bottom line, Mr. Billington tirely new trend, say local legal responsibilities of employees ing the company, especially if the said Bill Blackie, a Cleveland- said, is to make the policy clear and business experts, yet with the when a personal device is used for circumstances around that sev- based attorney with the employ- and concise and to educate recent proliferation of iPads, business. ered relationship are not friendly. ment law firm Fisher & Phillips. employees on what the policy iPhones and Androids, companies The company can have a diffi- Some companies may prefer to Don’t skip the formalities means. Since much of the concern are facing mounting employee cult time recouping any business- ban all personal mobile digital de- centers on confidential data, take requests to connect consumer Small and mid-sized compa- vices rather than risk information related information on the former some time to train employees on security breaches. Mr. Opsitnick the proper way to protect sensitive believes that stance could be a information, much like you would hard sell to employees at compa- train them on other aspects of the nies that claim to be nimble and IT infrastructure. “Tell them not to to prize innovation. put company data on a cloud serv- “To tell them you can’t use this er; do not email it to yourself,” he device or that one, it has an effect said. on the culture,” he said. “In many Importantly, Mr. Billington cases it is much better to find a added, counter the inclination to way to (allow it) and put some use less secure outlets by provid- necessary constraints in place.” ing employees with the ability to Sensitivity training easily retrieve, analyze and apply business data with their devices in Any policy should make clear a secure network environment. ■ 20130204-NEWS--19-NAT-CCI-CL_-- 1/31/2013 11:52 AM Page 1

FEBRUARY 4 - 10, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19 LEGAL AFFAIRS Court overturns $450,000 WHERE ACADEMIC award in Goodyear case EXCELLENCE MEETS By MILES MOORE award plaintiff any damages for Rubber & Plastics News her wrongful discharge claim, but only for her (negligent infliction of AYETTEVILLE, N.C. — The emotional distress) claim,” Judge THE REAL WORLD North Carolina Court of Stroud wrote. Appeal has overturned a Therefore, the only issue on $450,000 award to a former appeal in the case was whether the Fworker at the Goodyear Tire & trial court had jurisdiction over the Rubber Co. Fayetteville plant, rul- emotional distress claim, Judge ing the trial court lacked jurisdic- Stroud said. tion over her claims of harassment The jury determined Goodyear and wrongful termination. was guilty of “willful or wanton” LaShanda Shaw worked at Fayet- negligence, and such claims are teville as an area manager from 2007 covered under the Workers’ Com- until she was fired in 2009. During pensation Act, Judge Stroud wrote. that time, Ms. Shaw verbally was ha- Ms. Shaw should have pursued her All of our core classes begin with a real-world business challenge rassed by her male supervisor; the claim in the North Carolina Indus- harassment was “obnoxious and trial Commission instead of the posed directly from Northeast Ohio-based companies, large and small. rude,” but not of a sexual nature, state courts, she said. wrote Appeals Court Judge Donna Goodyear said it is pleased by Our integrated track courses are team taught by expert faculty. Stroud in her Jan. 15 decision. the unanimous decision of the In April 2011, a jury in the Cum- three-judge appeals court panel. We combine several business disciplines into each class, berland County Superior Court The company lawfully terminated empowering you to quickly assess real-world business awarded Ms. Shaw $450,000. The Ms. Shaw for poor performance, jury found that Ms. Shaw suffered and the jury found as much, the problems and implement the best solutions. severe emotional distress because company said. of Akron-based Goodyear’s negli- “Goodyear actively promotes a gence, and that Goodyear retaliat- zero-tolerance policy prohibiting ed against her for her complaints discrimination, harassment and of discrimination. But it also found violence in the workplace at all of that Goodyear didn’t intentionally its facilities,” the company said. discriminate against Ms. Shaw, Harold Kennedy III, Ms. Shaw’s and that Goodyear would have attorney, said he will file a petition terminated her even if she had not for review of the appeals court Learn more and apply: go.jcu.edu/mba complained. decision with the North Carolina “In summary, the jury did not Supreme Court. ■

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20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 4 - 10, 2013 LEGAL AFFAIRS

Top-Rated by The Wall Street Journal, US News & World Report, Corporate Counsel Magazine, The American Lawyer, Required education can be The National Law Journal, The Plain Dealer, and more. big business for some groups

By JENNIFER KEIRN [email protected]

n the final months of each

Christopher P. Thorman Peter Hardin-Levine Daniel P. Petrov Mark D. Griffin year, Shannon Polk sees his mail filling up with letters, Thorman Hardin-Levine advocates on behalf of executives, postcards and brochures from employees, consumers, and investors who are victims of Iorganizations hoping to woo him employment and financial wrongdoing. to their continuing legal education Tel: 216.621.3500 | www.thllaw.com (CLE) seminars and conferences. “We get flooded with them, probably three or four every day,” said Mr. Polk, partner at Haber Polk Kabat, which specializes in labor and employment law. “I just look for the topics that interest me.” Among those vying for Mr. PHOTO PROVIDED Polk’s attention are national con- The Cleveland Metropolitan Bar Association offers about 200 CLE programs a ferences in sunny places promis- year, such as this one held May 17 in partnership with the Northeast Ohio chap- Largest national staffing firm headquartered in ing big-name speakers, localized ter of the Association of Corporate Counsel America. programs specific to Ohio law just North East Ohio. Call today to see how we can help Lawline.com or LexisNexis. seminars to any member who reg- a short walk from his downtown “It’s a very competitive busi- isters for a live event. you improve your overall staffing experience. office and online CLE programs he ness,” says Steven L. Wasserman, In Northeast Ohio, the CMBA is can take in his pajamas. CLE committee chairman of the taking similar steps in the face of Mentor Middleburg Hts. Lots of choices, but earning CLE CMBA and partner at Chernett increased competition. Mr. 440-974-3391 440-243-8790 credits isn’t optional for Ohio’s Wasserman. “The more people Wasserman emphasizes the com- lawyers. All licensed attorneys you can get to an event, the higher munity connection and network- Cuyahoga Falls Elyria must complete 24 CLE hours every head count and higher participa- ing value of local CLE program- 330-926-9680 440-324-2880 two years with a reporting dead- tion fee, it drives our revenues.” ming. CMBA is periodically able to Independence Norwalk line of Dec. 31, explaining the market blitz launched in the fall by CLE income accounts for 25% of offer free programming through 216-328-8168 419-663-1166 companies and organizations the Cleveland Metropolitan Bar community partnerships, and is hoping to appeal to attorneys Association’s budget of $3.1 mil- pushing more events into the sub- www.nescoresource.com www.talentalley.com cramming at the last minute. lion; it is derived from an offering urbs to gain easier access for its CLE delivery in Ohio is big busi- of about 200 courses each year nearly 5,200 members. ness, and it pits local entities like that attract about 5,500 partici- “The discerning attorney can the Cleveland Metropolitan Bar pants, according to Rita Klein, a determine pretty readily what pro- Association and the Cleveland- CMBA spokeswoman. gramming is actually going to ben- efit them in their practice as op- Marshall College of Law against All CLE created equal? national for-profits like the posed to simply fulfilling their National Business Institute, Soon, the competition for CLE required hours,” he said. business will get even tougher, Full menu of choices when new standards from the Supreme Court of Ohio effective in Local providers like the CMBA 2014 will allow 12 of an attorney’s don’t get a leg up over their na- 24 credits to be completed online tional competition when it comes or through self study, up from its to getting courses approved for current guideline of six. credit, according to Susan The change will make it even Christoff, director of continuing easier for attorneys to get credit legal education for the Supreme from outfits like Attorney Court of Ohio. Credits.com, which boasts the “We approve the course, not the tagline “CLE Your Way” and ad- sponsor,” said Ms. Christoff, whose vertises a bundle of six Ohio CLE office receives 10,000 to 12,000 credits for just $79.99. course applications each year and So is all CLE created equal? approves about 95% of them. While “Absolutely not,” said Brad “established” sponsors like the Lagusch, director of marketing for OSBA and CMBA get a break on fil- the Ohio State Bar Association, ing fees and a quicker turnaround which currently offers about 150 on approvals, their content is CLE titles. He can offer a half judged objectively against the same dozen reasons why attorneys criteria as the nationals. should use local organizations to A recent survey by the Supreme earn at least some of their CLE Court found that two-thirds of credits — such as programming Ohio’s attorneys are satisfied with that’s specific to Ohio law, access CLE requirements, and 86% re- to the most relevant local experts ported being able to attain CLE in a field, and discounted pricing instruction “with significant intel- for bar members. lectual or practical content that YOU WANT A LAW FIRM THAT’S “We aren’t just looking for a improved their professional com- transaction,” said Mr. Lagusch. petence.” The coming increase in AS DEDICATED TO YOUR “We have an ongoing relationship self-study hours permitted was with these people, they are our driven by the survey’s feedback members. We have a lot more at that attorneys wanted easier ways BUSINESS AS YOU ARE. risk than, say, an outfit in New to earn their CLE. York just doing self-study CLE.” For Mr. Polk, the choices he Mr. Lagusch said that the OSBA makes in earning CLE credits are We share your desire to seize opportunities, reduce risk and deliver exceptional is also beefing up its self-study driven solely by topic, not sponsor. value. From business law, corporate fi nance, tax and employee benefi ts, to labor and resources for members; attorneys He estimates he’s earned credit by employment, intellectual property and commercial litigation, Ice Miller LLP offers all can earn credits through online attending or speaking at programs by nearly a dozen organizations, of the legal services and counsel you need to succeed. study, webinars, telephone semi- nars and CLEtoGo, a tool for both national and local. accessing education through a “I don’t see a meaningful differ- Chicago ∙ Cleveland ∙ Columbus ∙ DuPage County, Ill. ∙ Indianapolis ∙ Washington, D.C. mobile device. The organization’s ence in quality from provider to www.icemiller.com latest addition is the eBook provider,” Mr. Polk said. “The Library, which provides free access menu of available courses out to e-books from all OSBA CLE there is very good.” ■ 20130204-NEWS--21-NAT-CCI-CL_-- 2/1/2013 10:50 AM Page 1

FEBRUARY 4 - 10, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21 LEGAL AFFAIRS Firms move in as Utica shale business builds

By MICHELLE PARK toric influx of out-of-town law Mr. Foster said. “While we intend to service our oil, natural gas and utilities prac- [email protected] firms,” six law firms entered south- Jackson Kelly’s Canton office is clients in the oil and gas industry, tice group of Reminger Co. LPA in western Pennsylvania between De- staffed with two full-time attorneys our interest really is longer term,” Cleveland. “This is a fast-evolving A couple of out-of-town law cember 2011 and July 2012, the and one part-time lawyer who trav- Mr. Foster said. “Ohio will be a area, one which the people who firms have moved into Canton in newspaper reported last July. Most els from the firm’s Pittsburgh office success for us not because of the have the boots on the ground right recent months, drawn here to of the firms’ executives told the four days a week, Mr. Foster said. title work we do over the next now are handling capably.” serve clients that are — or will be newspaper that Marcellus shale The goal is to grow to five or 10 three or four years, but if 10 years Mr. McLaughlin said an influx — tapping into the Utica shale. activity triggered their moves. lawyers within 24 months. from now … we are obtaining of law firms into the area could be And, if what has played out in Such influxes carry benefits and Steptoe & Johnson, which in re- (other) legal work.” a reflection of the “rather well-or- Pennsylvania’s Marcellus shale re- disadvantages, Mr. Bower said. cent years also opened a Pittsburgh- Likewise, Steptoe & Johnson’s ganized and increasingly well-rep- gion repeats itself, more will come. “It’s probably a little scary for the area office — in part, because of the plan is to have a full-service office resented property owners and as- Jackson Kelly PLLC and Steptoe local legal community,” he said. Marcellus shale — employs two at- in Canton for each of its practice sociations” that have improved & Johnson PLLC — both based in “Outside firms coming in … look to torneys now in Canton and should groups, Mr. Kostrub said. their negotiating positions when West Virginia and both specializ- diversify so they are not a one-trick scale to 10 by summer, said Dan “I would say it’s a good thing,” he dealing with drillers. ing in oil-and-gas legal work — pony. As they do that, they in- Kostrub, managing member of the said. “We’re going to hire some local That’s not to say Mr. McLaugh- have opened Canton offices, moti- evitably impinge upon the legal new office. The Canton location is people, so there’s job creation.” lin wants to show out-of-towners vated, their executives say, by practice in the local community.” the second in Ohio for the firm, the proverbial door. Firms are which is based in Bridgeport, W. Va. Company or crowd? existing clients who need them But, Mr. Bower continued, going to locate where their clients In the short term, the opportu- here. Jackson Kelly’s office opened “Somebody with deep experience From at least one local oil-and- want them to be, he knows. But nity lies in leasing and title work, in June, while Steptoe & Johnson’s coming into the legal community gas attorney’s perspective, the ver- energy producers, landowners Mr. Foster said. In the long term, dict still is out as to whether out-of- office opened just last month. (is) likely to benefit clients be- and others involved in shale he anticipates other disputes in- state law firms moving into Ohio’s “Without the shale play, I know of cause they will have experienced should do their research about law volving oil and gas and said the shale country carries more advan- no reason why we would have shale gas lawyers.” firms that come to the market not firm will “staff up with litigation tages or disadvantages for firms and opened in Ohio,” said Michael D. because existing clients asked for lawyers” who have relevant expe- clients already in Northeast Ohio. Foster, managing member and CEO Likely trailblazers them to, but to capitalize on the rience. Plus, as facilities are built “A lot of precedent-setting work of Jackson Kelly, which is based in Jackson Kelly’s Mr. Foster “next big thing,” he said. or expanded, there will be addi- has been done and is being done “We can expect some compa- Charleston. “Ohio has plenty of wouldn’t be surprised if other tional demand for legal services, by firms such as ourselves, who lawyers; they don’t need lawyers firms follow his firm’s lead. ny,” he said. “The question is, who such as commercial contracts, Mr. are already here,” said Rafael is it and what experience do they from West Virginia coming to meet “A number of Houston law firms Foster predicted. “Raf” McLaughlin, a partner in the have?” ■ typical consumer demand.” have opened offices or acquired Most say it’s likely other law firms in Pittsburgh, so common firms will follow. sense seems to indicate that those “I think you’re going to see same firms, with a rich history of more out-of-state firms come into representing people in the oil and Ohio as the fracking technologies gas industry, would also look for a become refined and the economic merger or opening their own office appeal of it becomes more evi- in the Utica area,” he said. dent,” said Ward Bower, a princi- And, if an influx of new firms pal with Altman Weil Inc., a legal does play out, competition will management consulting firm in sharpen, Mr. Foster said. Newtown Square, Pa. “We’ve seen “If a competitor says he can do that in Pennsylvania.” a title for $15,000, and you’ve been In what was described by the charging them $20,000, you need Pittsburgh Business Times as a “his- to find a way to match that price,” A STORM BREWING ON

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22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 4 - 10, 2013 LARGEST ENGINEERING FIRMS

RANKED BY NUMBER OF LOCAL REGISTERED ENGINEERS(1)

Number of 2012 local Company local Number of engineering Address registered local Corporate Year billings ($ Top local executive Rank Phone/Website engineers employees headquarters founded 2012 projects millions) Title GPD Group 1 520 S. Main St., Suite 2531, Akron 44311 94 375 Akron 1961 Eaton Blvd., Beachwood; Northfield Racino, civil design; 53.5 Darrin Kotecki (800) 955-4731/www.gpdgroup.com Ohio Turnpike Commission president Arcadis U.S. Inc. NEORSD-Southerly WWTC, renewable energy facility; Nick Rodzianko 2 1100 Superior Ave., Suite 1250, Cleveland 44114 81 89 Highlands 1888 Akron-WPCS, step feed process; ODOT-Anthony Wayne 18.2 operations leader, (216) 781-6177/www.arcadis-us.com Ranch, Colo. Suspension Bridge/Maumee River rehabilitation vice president URS Corp. Flats East Bank; Medical Mart/Convention Center; Main/ 3 1375 Euclid Ave., Suite 600, Cleveland 44115 72 307 San Francisco 1904 Broadway interchange; Cleveland Hopkins backup power 56.0 Dana S. Mitchell (216) 622-2400/www.urscorp.com upgrade vice president Middough Inc. NEORSD, program system integration and programming 4 1901 E. 13th St., Suite 400, Cleveland 44114 64 214 Cleveland 1950 services PSIM-28, Cleveland; TPCO America Corp., 51.0 Ronald R. Ledin (216) 367-6000/www.middough.com Gregory, Texas; BP Husky Toledo refinery president, CEO DLZ Ohio Inc. 5 614 W. Superior Ave., Cleveland 44113 53 162 Columbus 1947 I-271 lane addition project; I-90 construction inspection; 22.6 Thomas G. Sisley (216) 771-1090/www.dlz.com NEORSD projects senior vice president HWH Architects Engineers Planners Inc. 6 1300 E. Ninth St., Suite 900, Cleveland 44114 38 76 Cleveland 1908 GE Energy; Goodyear Tire & Rubber Co.; Lubrizol Corp. 14.0 Peter P. Jancar (216) 875-4000/www.hwhaep.com chairman Westlake Reed Leskosky PlayhouseSquare Allen theatre complex; Point Park 7 1422 Euclid Ave., Suite 300, PlayhouseSquare, Cleveland 44115 37 110 Cleveland 1905 University arts complex; MOCA (Museum of Contemporary 14.0 Paul E. Westlake Jr. (216) 522-1350/www.wrldesign.com Art Cleveland) managing principal CT Consultants Inc. ODOT District 12 construction inspection; Euclid long-term 8 8150 Sterling Court, Mentor 44060 34 107 Mentor 1922 control plan implementation; Lakewood long-term control 14.5 Dave Wiles (440) 951-9000/www.ctconsultants.com plan negotiation and planning president The Equity Engineering Group Inc. 8 20600 Chagrin Blvd., Suite 1200, Shaker Heights 44122 34 89 Shaker Heights 2002 KOCH Suitability for Service; Orica dynamic blast analysis NA David A. Osage (216) 283-9519/www.equityeng.com for nitric acid tank; Santos RBI implementation president Osborn Engineering Cleveland Medical Mart/Convention Ctr.; Wrigley Field 10 1300 E. Ninth St., Suite 1500, Cleveland 44114 30 68 Cleveland 1892 expansion; Akron Children's Hospital commissioning; 8.0 Gary F. Hribar (216) 861-2020/www.osborn-eng.com Cleveland Climate Action Plan president TranSystems Corp. of Ohio Hamid V. Homaee 10 55 Public Square, Suite 1900, Cleveland 44113 30 42 Kansas City, 1966 I-77 add lane; Columbus Road lift bridge; Avon I-90 6.1 principal, (216) 861-1780/www.transystems.com Mo. interchange senior vice president MWH Global NEORSD tunneling dewatering pump station; Cleveland Kristen M. Miller 12 1300 E. Ninth St., Suite 1100, Cleveland 44114 25 51 Broomfield, 1820 Water Plant enhancement program; City of Lima long-term 10.0 vice president, (216) 621-2407/www.mwhglobal.com Colo. control plan region manager Thorson Baker & Associates Inc. Gordon R. Baker 13 3030 W. Streetsboro Road, Richfield 44286 24 108 Richfield 1993 Akron Children's Hospital Critical Care Tower; Ohio 13.9 Michael G. Thorson (330) 659-6688/www.thorsonbaker.com Department of Mental Health; Green Local Schools principals ms consultants inc. 14 600 Superior Ave. East, Suite 1300, Cleveland 44114 23 93 Youngstown 1963 I-80 design/build, Trumbull County 10.0 David J. Mosure (216) 522-1926/www.msconsultants.com vice president Burgess & Niple ODOT, Lorain-Carnegie Bridge Cuyahoga River Crossing Charles J. Zibbel 15 1300 E. Ninth St., Suite 612, Cleveland 44114 21 36 Columbus 1912 Trail; Shamrock & Brookstone Blvd. extension, Painesville; 11.4 director, (216) 241-9600/www.burgessniple.com Lake County Dept. of Utilities Great Lakes region R. E. Warner & Associates Inc. RTI International, titanium plating facility: PPG Teslin 15 25777 Detroit Road, Suite 200, Westlake 44145 21 55 Westlake 1951 project; NEORSD Easterly chemical storage; NEORSD low 6.8 Theodore A. Beltavski (440) 835-9400/www.rewarner.com voltage electrical upgrades president Karpinski Engineering Cleveland Medical Mart & Convention Center; Eaton Corp. 17 3135 Euclid Ave., Cleveland 44115 20 76 Cleveland 1983 worldwide headquarters; Cleveland Clinic Pathology and 9.0 James T. Cicero (216) 391-3700/www.karpinskieng.com Laboratory Medicine Institute president Scheeser Buckley Mayfield LLC 18 1540 Corporate Woods Parkway, Uniontown 44685 16 51 Uniontown 1959 NEOMED lab expansion; St. Elizabeth Boardman Hospital; NA James E. Eckman (330) 896-4664/www.sbmce.com ODMH, Northcoast Behavioral Healthcare Campus president HNTB Corp. Scott Campbell 19 1100 Superior Ave., Suite 1701, Cleveland 44114 14 22 Kansas City, 1914 Cleveland Inner Belt Bridge; Opportunity Corridor study; 2.8 office leader, (216) 522-1140/www.hntb.com Mo. I-270 improvements associate vice president Richard L. Bowen + Associates Inc. 19 13000 Shaker Blvd., Cleveland 44120 14 83 Cleveland 1959 Ohio Turnpike twin plazas; Vitamix headquarters; NA Richard L. Bowen (216) 491-9300/www.rlba.com Cleveland Third District Police Station president The Austin Co. Bimbo Bakeries Elkhart, Ind. expansion; Pepperidge Farm 21 6095 Parkland Blvd., Cleveland 44124 13 86 Cleveland 1878 Utah bakery expansion; Mitsubishi Power Systems 6.8 Michael G. Pierce (440) 544-2600/www.theaustin.com generator plant president Inc. Pearl Road widening, Strongsville; Pleasant Valley/Bagley 21 8235 Mohawk Drive, Cleveland 44136 13 27 Strongsville 1969 Road widening, Middleburg Heights; Madison Ave./W. 61st 3.3 Alan R. Piatak (440) 260-1555/www.euthenics-inc.com St. RTA pedestrian bridges president CDM Smith Inc. NEORSD, Southerly WWTC renewable energy facility; 23 1468 W. Ninth St., Suite 750, Cleveland 44113 12 20 Cambridge, 1947 NEORSD, asset management implementation; ODOT, NA Edward J. St. John, principal; (216) 579-0404/www.cdmsmith.com Mass. Access Ohio 2040 Robert Parker, associate Hatch Mott MacDonald LLC Michael G. Vitale, sr. vice 23 18013 Cleveland Parkway Drive, Suite 200, Cleveland 44135 12 20 Millburn, N.J. 1966 Euclid Creek tunnel; Stumph Road (CR266) highway 9.7 president; Michael F. (216) 535-3640/www.hatchmott.com McCarthy, vice president KS Associates Inc. Cuyahoga County Bridge load rating project; NEORSD 23 260 Burns Road, Suite 100, Elyria 44035 12 29 Elyria 1987 interceptor surveying and mapping project, Cleveland; NA Lynn S. Miggins (440) 365-4730/www.ksassociates.com state Route 57 corridor improvement project, Elyria president The Mannik & Smith Group Inc. Lake County Solid Waste facility, design, permits; Miceli's, Mark A. Smoley 23 23225 Mercantile Road, Beachwood 44122 12 23 Maumee 1955 factory expansion and brownfield redevelopment; NA senior vice president, (216) 378-1490/www.manniksmithgroup.com McDonalds, major renovation program principal Barber & Hoffman Inc. Cleveland School of the Arts; Westin Hotel; St. Johns 27 1100 W. Ninth St., 3rd floor, Cleveland 44113 11 20 Cleveland 1934 Hospital expansion and modernization program; U.S. NA Robert Jordan (216) 875-0100/www.barberhoffman.com Coast Guard Station president, treasurer Chagrin Valley Engineering Ltd. 27 22999 Forbes Road, Suite B, Cleveland 44146 11 36 Cleveland 1996 Engineering services and infrastructure and roadway NA Donald F. Sheehy (440) 439-1999/www.cvelimited.com projects for municipalities president Environmental Design Group(2) City of Green, municipal engineering services; Akron 27 450 Grant St., Akron 44311 11 34 Akron 1984 Children's Hospital Critical Care Tower; Stark County NA Dwayne Groll (330) 375-1390/www.envdesigngroup.com Fulton Road improvements president McHenry & Associates Inc. Warrensville Menorah Park Wiggins Place expansion, Beachwood; William Hulsey 27 25001 Emery Road, Suite 200, Warrensville Heights 44128 11 31 1986 Canton Water Reclamation facility; several Giant Eagle 5.0 (216) 292-4696/www.mchenryassociates.com Heights stores in Ohio and Pa. president Peters, Tschantz & Associates Inc. Southwest General Hospital Emergency Department and 27 275 Springside Drive, Suite 300, Akron 44333 11 28 Akron 1953 bed tower addition; Verizon Wireless, Twinsburg Data 5.5 James E. Peters (330) 666-3702/www.ptaengineering.com Center expansion; Landmark Theatre renovation president Source: Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee these RESEARCHED BY Deborah W. Hillyer listings are complete or accurate. (1) Numbers as of Jan. 1, 2013. (2) Formerly Floyd Browne Group. 20130204-NEWS--23-NAT-CCI-CL_-- 2/1/2013 4:54 PM Page 1

FEBRUARY 4 - 10, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23

Attevo: Many employees have left Philadelphia developer purchases continued from PAGE 1 “Several of the issues financial issues. Canton properties for $9 million who no longer work for the compa- raised pertain to matters However, in the defendants’ ny. None of the former employees counterclaim, they argue that they knew exactly how many people re- which are currently in bought the two properties. They A Philadelphia real lawyers involved in main at Attevo. litigation and therefore also say Mr. Snyder failed to pay a estate developer ON THE WEB Story from shale gas drilling,” Attevo also faces several lawsuits not appropriate for me to total of $790,000 in lease payments drawn to Northeast www.crainscleveland.com Mr. Cooper said. and tax liens. Plus, it was ordered to comment on.” and real estate taxes, and that he Ohio by economic Although the build- vacate its 20,000-square-foot head- never followed up on a promise to growth spurred by shale ing is more than quarters at One Cleveland Center in – C. David Snyder, president and give them a 15% stake in Attevo. gas exploration has acquired Hunt- 87% leased and anchored by a downtown Cleveland by the end of CEO, Attevo Mr. Wienke and three other for- ington Bank Plaza and the nearby Huntington Bank regional headquar- January, according to documents ment since last Dec. 14 has filed two mer employees still are involved in New Market Parking Deck in down- ters, Mr. Cooper said there is room filed in Cuyahoga County Common more liens seeking a total of about a lawsuit they filed against Attevo in town Canton. to increase its fiscal performance Pleas Court with Judge Brendan $600,000 in taxes — most of which May 2011, shortly after they left the David Marshall, chairman and by relocating tenants to free up Sheehan. was to be withheld from employee company. Among other allegations, CEO of Amerimar Realty Co., said in space for new, larger tenants and The company — which last year paychecks — that have accrued they argue in the lawsuit that the a news release that his company by making other changes to the changed its legal name to Cirric Inc. since the fourth quarter of 2008. company “repeatedly delayed the bought the properties because it building. — is using an address on Chagrin The state of Ohio on Jan. 11 filed processing of payroll,” a complaint believes Northeast Ohio “is strongly Amerimar plans to add automat- Boulevard in Beachwood, according two liens seeking about $230,000 in reiterated by many former employ- positioned for the future and we are ed parking equipment to the to an email from a current employ- withholding taxes from either Attevo ees who spoke to Crain’s for this committed to maintaining the build- garage, Mr. Cooper said. ee that was forwarded to Crain’s. or Mr. Snyder, the company’s largest story. Some say they still are owed ing’s status as the address of Amerimar first surfaced in North- Whole Health Management LLC shareholder. The state last Septem- money by the company. choice for top companies in the re- east Ohio last year when it agreed of Deerfield, Ill., filed a request to ber filed four other liens against the Since leaving Attevo, Mr. Wienke gion.” with the city of Akron to undertake evict Attevo from One Cleveland company seeking a total of $58,635 in has started Infoverity LLC, a con- An Amerimar affiliate paid almost the conversion of the former Fire- Center after Attevo failed to pay its corporate franchise taxes. sulting firm that focuses on infor- $9 million for the 11-story, stone headquarters in Akron to rent. Attevo president and CEO C. Attevo also faces lawsuits from mation management, which was 160,000-square-foot building, ac- multitenant office and research David Snyder in September 2012 contractors and former employees. the Dublin, Ohio, resident’s spe- cording to Robert Cooper, a CBRE space. signed a commercial cognovit Some of the lawsuits name Mr. Sny- cialty at Attevo. Mr. Wienke said he Group Inc. broker who works with The seller was Canton Invest- promissory note stating that the der personally. keeps in touch with many former Amerimar. ments LLC of Charlotte, N.C., which company would pay Whole Health For instance, John P. Frankovich, Attevo employees, noting that his The 522-car parking garage cost had owned the properties since a total of $475,000 over four years, the company’s former chief operat- lawsuit against Attevo shouldn’t re- Amerimar $3 million. 1998, according to the Stark Coun- according to a previous case filed ing officer, last September filed a flect poorly on them. “We see this as an area for of- ty auditor’s office. by Whole Health with Judge Hollie lawsuit against Mr. Snyder and his “It was a great group of people. fices for engineers, consultants and — Stan Bullard Gallagher. After making one pay- wife, Michelle Snyder, seeking They were hard-working. They did ment that September, Attevo de- $100,000 that he says he lent to Mr. great work,” he said. ■ faulted on the note, documents Snyder six years ago. Mr. from the case in Judge Gallagher’s Frankovich’s lawsuit says he loaned court show. the money after Mr. Snyder lost Litigation piles up $300,000 in a previous lawsuit. In a response to the lawsuit, the Snyders Whole Health, which subleased denied many of the allegations Presented by the space to Attevo, isn’t the only made by Mr. Frankovich, who lives entity trying to get money from the in Austin, Texas. company. The federal government in March Trouble on the homefront 2011 filed a $2.8 million tax lien Mr. Snyder also is fighting for own- against Attevo. It’s unclear how ership rights of his primary residence much of the lien the company might in Lakewood and a second house in have paid off, as Mr. Snyder declined Chautauqua County, New York. to answer several questions sent by Last September, he sued Ken- Crain’s to his email address. neth Grant of Copley and his “Due to different circumstances daughter, Susan J. Grant Kalal of pertaining to each, matters dealing Akron, arguing that they illegally with former employees should be locked him out of the Chautauqua dealt with on a case by case basis, house and refused to let him repur- and the newspaper is not the medi- chase the legal title to his 10,897- Call for Nominations um by which those issues should be square-foot Lakewood residence on addressed,” Mr. Snyder stated in an Edgewater Drive. Mr. Snyder said in email response to Crain’s. “More- the lawsuit that he retains “equi- Crain’s and NEOSA honor Northeast Ohio’s leading IT executives over, several of the issues raised per- table ownership” of the properties tain to matters which are currently despite transferring the property in a specially dedicated newspaper section and at a gala dinner in litigation and therefore not appro- deeds to Ms. Kalal to secure a $4 priate for me to comment on.” million loan Mr. Grant gave to Mr. However, the federal govern- Snyder in 2007 when he was facing CATEGORIES Public & Private Companies Nonprofit & Government Organizations All Industries – All Sizes Nominate your IT leader today (Eligible titles also include: CTO, VP of IT, etc.)

www.CrainsCleveland.com/cionominate Deadline: February 18

Nomination inquiries: Christian Hendricks – [email protected] Sponsorship & advertising: Nicole Mastrangelo – [email protected] Serving the Region for Over 60 Years Middough has been recognized for its performance Co-Presented by: Sponsored by: and leadership as an international company in engineering, architecture and management services.

www.middough.com 20130204-NEWS--24-NAT-CCI-CL_-- 2/1/2013 3:39 PM Page 1

24 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 4 - 10, 2013

ON THE WEB Story from Cequent drives into cleaning tool arena www.crainscleveland.com Solon-based maker of automotive aftermarket products “We started to run out of Phillips Edison sets places to go and grow sights on Fairlawn grows its business via acquisitions in effort to diversify the business.” – Francis Bernart, director of Cincinnati-based Phillips Edison- By GINGER CHRIST Cequent Americas business seg- offerings in existing retail channels marketing and new product ARC Shopping Center REIT Inc. is [email protected] ment, which includes Cequent with its February purchase of Lait- development, Cequent Consumer preparing to take another bite out Consumer Products and its sister ner, Mr. Bernart said. Products of the Northeast Ohio shopping Cequent Consumer Products, a company, Cequent Performance Despite Cequent Consumer center market. Solon-based maker of automotive Products, a Plymouth, Mich.-based Products’ recent growth, Mr. cles and the increase in vehicles over This time, it plans to buy Fair- aftermarket products such as tow- maker of aftermarket and original Bernart said it doesn’t have its 11 years of age,” Mr. White said. lawn Town Centre in suburban ing hitches and rooftop cargo carri- equipment towing and trailer sights yet on other acquisitions. The biggest challenge in taking Akron from a unit of WP Realty of ers, is driving its growth through ac- accessories. That total for the seg- “We typically keep our eyes open advantage of those opportunities is Bryn Mawr, Pa. According to a Se- quisitions of cleaning tool ment was up 6.7% from the third for acquisitions that could help us competition, according to Mr. curities and Exchange Commis- companies. quarter of 2011. in terms of our growth. We haven’t Bernart. Because some areas of its sion filing, Phillips Edison has In 2012, Cequent Consumer Cequent Consumer Products had those opportunities come to us business, such as cargo-securing agreed to acquire the property for Products, which is owned by pub- typically hires two to three people as of late,” he said. “But you never equipment, have a low barrier to about $42 million. If Phillips Edi- licly traded TriMas Corp. of Bloom- each year and currently has a 120- know when an opportunity may entry, Cequent Consumer Products son does not complete the trans- field Hills, Mich., bought two clean- person work force, 60 of whom arise.” must find ways to be more mar- action, it would forfeit $600,000, ing tool companies — Harper Brush work at its headquarters in Solon, ketable to its customers. according to the SEC filing. Works of Fairfield, Iowa, and Laitner Mr. Bernart said. Ask, and ye shall receive One way it’s doing so is through In contrast to Phillips Edison’s Brush Co. of Traverse City, Mich. — “We’re very conservative in Rich White, senior vice president its warehouse operations. At its dis- high-profile purchase of Parma- as part of an effort to diversify and bringing people on board, but we of the Automotive Aftermarket In- tribution center in Indiana, the town Mall and Shopping Center in enter new markets, according to do it with regularity because our dustry Association of Bethesda, company three years ago installed Parma last fall to undertake a Francis Bernart, director of market- business continues to grow,” Mr. Md., sees opportunities for growth a voice-activated picking system makeover of the aging mall and ing and new product development Bernart said. in the automotive aftermarket busi- and last year added voice automa- associated properties, it is acquir- at Cequent Consumer Products. Cequent Consumer Products, ness in the coming year. The asso- tion to its receiving operations. ing in Fairlawn Town Centre a “We started to run out of places which for years has provided retail ciation predicts the $307.5 billion Now, throughout the distribution property that WP Carey has repo- to go and grow the business,” Mr. customers such as AutoZone and sector will grow 3.5% in 2013. center, a worker can speak the sitioned over three years. Bernart said. “We had to find other Walmart with automotive after- “While we always watch the possi- name of a product or order and a The 30-acre property at 2855 avenues, and adding companies is market products, hopes to enter the ble headwinds from higher gas prices computer will guide him or her to W. Market St., Fairlawn, includes a great way to do it.” commercial market with its pur- and lower miles driven, we point to the correct place in the warehouse, 447,000 square feet of selling TriMas in the third quarter re- chase of the bankrupt Harper favorable tailwinds resulting from the which has improved accuracy and space. — Stan Bullard ported sales of $103 million for its Brush and to diversify its product increase in the average age of vehi- efficiency, Mr. Bernart said. ■ Goodyear attempting to make inroads in Europe

By JENNIFER KARPUS that may be volume, but part of that Tire Business may be things we can do to improve the business there.” Goodyear Tire & Rubber Co. is The industry environment re- looking to the European market — mained very weak in the fourth especially the aftermarket — as a key quarter, he said, crediting part of component in its financial success. the weakness to the mild winter The Akron-based tiremaker made weather, although it has been that pronouncement during its Jan. slightly colder than winter 2011. 15 presentation at the 2013 Deutsche Goodyear said improvement in Bank Global Auto Industry Confer- EMEA (Europe, Middle East, ) ence in Detroit, which it also webcast. results, especially volume, will be Darren Wells, executive vice pres- critical for achieving its 2013 seg- ident and chief financial officer for ment operating income target. Goodyear, said the tiremaker has “Clearly, dealers in Europe have executed a turnaround over the last had soft volumes,” Mr. Wells said. eight years, improving consistently “But 2013 is a new year. It gives us with the exception of the 2008-2009 an opportunity to start again. And financial crisis. that’s really where we’re focused.” “I think the fundamental years, The company’s strategy is based 2011 and 2012, particularly in 2012, on a strong start to the 2013 sum- through a pretty tough economic mer season, Mr. Wells said, includ- environment, we’ve actually deliv- ing its product lineup with strong ered very consistent performance,” label scores. This summer season he said. will be the first on which the newly Mr. Wells said that although the placed European tire labeling law company’s North American busi- will have an impact, and Mr. Wells ness proved to be the most chal- said Goodyear is feeling pretty good lenging area to improve, it is expect- about its label scores. ed to exceed targeted earnings one “That label gives a standard test year ahead of plans. performance on rolling resistance, “We had a goal for North America wet braking and noise for a tire,” he that for a long time was to get to 5% said. “Those criteria don’t mean as return on sales,” he said. “Two years much in the winter tire market be- ago we announced the target that by cause people are not necessarily 2013 we wanted to get to $450 mil- looking for rolling resistance and lion of operating earnings. … We’re wet traction in a winter tire. They going to get to that target in 2012, want snow and ice performance, so rather than 2013, and we feel great while the labels may have been about that. And that’s in a pretty soft there for the winter season for con- tire market in North America.” sumers, when the summer season However, the European market, rolls around, that’s where the label especially the European aftermar- really is going to be critical.” ket, has been a tough environment Mr. Wells noted that key balance and Goodyear aims for improve- sheet issues include the company’s ment there. unfunded pension obligation, “We continue to struggle there.... which was funded once already, but For us to get to our financial goals, grew again because of historically it’s clear that we’ve got to see some low interest rates. recovery in our European busi- Goodyear said union associates ness,” Mr. Wells said. “And part of hired since 2006 receive a 401(k). ■ 20130204-NEWS--25-NAT-CCI-CL_-- 1/31/2013 11:54 AM Page 1

LEGAL NOTICE LEGAL NOTICE LEGAL NOTICE To merchants who have accepted Visa and MasterCard at any time since January 1, 2004: Notice of a 6+ billion dollar class action settlement. Si desea leer este aviso en español, llámenos o visite nuestro sitio web.

Notice of a class action settlement authorized by the U.S. &#'W^aa^dc#I]ZkVajZd[ZVX]XaV^b!l]ZgZedhh^WaZ!l^aaWZ and taxpayer identification number, (3) the merchant that District Court, Eastern District of New York. WVhZYdcVcZhi^bViZd[dcZ"iZci]d[&d[i]ZbZgX]Vci¼h wishes to be excluded from the Cash Settlement Class This notice is authorized by the Court to inform you about Visa and MasterCard credit card dollar sales volume during (Rule 23(b)(3) Settlement Class), and what position or an agreement to settle a class action lawsuit that may affect i]VieZg^dY#EVnbZcihidbZgX]Vcihl]dÄaZkVa^YXaV^bh[dg authority you have to exclude the merchant, and (4) the you. The lawsuit claims that Visa and MasterCard, separately, Vedgi^dcd[i]Z>ciZgX]Vc\Z;jcYl^aaWZWVhZYdc/ business names, brand names, and addresses of any stores and together with banks, violated antitrust laws and caused ™ The money available to pay all claims, or sales locations whose sales the merchant desires to be excluded. merchants to pay excessive fees for accepting Visa and ™ The total dollar value of all valid claims filed, and  MasterCard credit and debit cards, including by: Note: OekYWddejX[[nYbkZ[Z\hecj^[Hkb[9^Wd][i ™ The cost of settlement administration and notice, and any I[jjb[c[dj9bWii (Rule 23(b)(2) Settlement Class). ™ Agreeing to set, apply, and enforce rules about merchant attorneys’ fees and expenses that may be approved by the fees (called default interchange fees); Court. š EX`[Yj je j^[ i[jjb[c[dj# I]Z YZVYa^cZ id dW_ZXi is: CWo (." (&')# Id aZVgc ]dl id dW_ZXi! hZZ/ ™ Limiting what merchants could do to encourage their Attorneys’ fees and expenses and money awarded to the class lll#EVnbZci8VgYHZiiaZbZci#XdbdgXVaa&"-%%"+'*"+))%# customers to use other forms of payment through, for representatives /;dgldg`YdcZi]gdj\]ÄcVaVeegdkVad[i]Z CdiZ/ >[ ndj ZmXajYZ ndjghZa[ [gdb i]Z 8Vh] HZiiaZbZci example, charging customers an extra fee or offering settlement by the district court, Class Counsel will ask the 8aVhhndjXVccdidW_ZXiidi]ZiZgbhd[i]Viedgi^dcd[i]Z discounts; and Court for attorneys’ fees in an amount that is a reasonable settlement. ™ Continuing that conduct after Visa and MasterCard egdedgi^dcd[i]Z8Vh]HZiiaZbZci;jcY!cdiidZmXZZY&&#* changed their corporate structures. d[i]Z8Vh]HZiiaZbZci;jcYd[+#%*W^aa^dcVcY&&#*d[i]Z ;dgbdgZ^c[dgbVi^dcVWdjii]ZhZg^\]ihVcYdei^dch!k^h^i/ lll#EVnbZci8VgYHZiiaZbZci#Xdb# The defendants say they have done nothing wrong. They >ciZgX]Vc\Z;jcYZhi^bViZYidWZ&#'W^aa^dcidXdbeZchViZ all of the lawyers and their law firms that have worked on the say that their business practices are legal and the result of competition, and have benefitted merchants and consumers. XaVhhXVhZ#;dgVYY^i^dcValdg`idVYb^c^hiZgi]ZhZiiaZbZci! IF THE COURT APPROVES THE distribute both funds, and through any appeals, Class Counsel The Court has not decided who is right because the parties FINAL SETTLEMENT may seek reimbursement at their normal hourly rates, not agreed to a settlement. On November 27, 2012, the Court id ZmXZZY Vc VYY^i^dcVa & d[ i]Z 8Vh] HZiiaZbZci ;jcY gave preliminary approval to this settlement. Members of the Rule Changes Settlement Class are bound d[ +#%* W^aa^dc VcY Vc VYY^i^dcVa & d[ i]Z >ciZgX]Vc\Z by the terms of this settlement. Members of the Cash ;jcYZhi^bViZYidWZ&#'W^aa^dc#8aVhh8djchZal^aaVahd THE SETTLEMENT Settlement Class, who do not exclude themselves by the request reimbursement of their expenses (not including the deadline, are bound by the terms of this settlement whether administrative costs of settlement or notice), not to exceed Under the settlement, Visa, MasterCard, and the bank or not they file a claim for payment. Members of both defendants have agreed to make payments to two settlement )%b^aa^dcVcYjeid'%%!%%%eZg8aVhhEaV^ci^[[^chZgk^XZ classes release all claims against all released parties listed in awards for their efforts on behalf of the classes. funds: the Settlement Agreement. The settlement will resolve and release any claims by merchants against Visa, MasterCard ™ I]Z Äghi ^h V ¹8Vh] ;jcYº · V +#%* W^aa^dc [jcY i]Vi HOW TO ASK FOR PAYMENT will pay valid claims of merchants that accepted Visa or other defendants that were or could have been alleged or MasterCard credit or debit cards at any time between To receive payment, merchants must fill out a claim form. in the lawsuit, including any claims based on interchange January 1, 2004 and November 28, 2012. >[i]Z8djgiÄcVaanVeegdkZhi]ZhZiiaZbZci!VcYndjYdcdi or other fees, no-surcharge rules, no-discounting rules, exclude yourself from the Cash Settlement Class, you will honor-all-cards rules and other rules. The settlement will also ™ I]Z hZXdcY ^h Vc ¹>ciZgX]Vc\Z ;jcYº · Zhi^bViZY id WZ resolve any merchant claims based upon the future effect of Veegdm^bViZan&#'W^aa^dc·i]Vil^aaWZWVhZYdcVedgi^dc receive a claim form in the mail or by email. Or you may any Visa or MasterCard rules, as of November 27, 2012 and of the interchange fees attributable to certain merchants Vh` [dg dcZ Vi/ lll#EVnbZci8VgYHZiiaZbZci#Xdb! dg XVaa/ not to be modified pursuant to the settlement, the modified that accept Visa or MasterCard credit cards for an &"-%%"+'*"+))%# rules provided for in the settlement, or any other rules Z^\]i"bdci]¹>ciZgX]Vc\ZEZg^dY#º OTHER BENEFITS FOR MERCHANTS substantially similar to any such rules. The releases will not Additionally, the settlement changes some of the Visa and bar claims involving certain specified standard commercial MasterCard rules applicable to merchants who accept their Merchants will benefit from changes to certain MasterCard disputes arising in the ordinary course of business. cards. and Visa rules, which will allow merchants to, among other ;dg bdgZ ^c[dgbVi^dc dc i]Z gZaZVhZ! hZZ i]Z hZiiaZbZci This settlement creates two classes: things: V\gZZbZciVi/lll#EVnbZci8VgYHZiiaZbZci#Xdb# ™ A Cash Settlement Class (Rule 23(b)(3) Settlement Class), ™ Charge customers an extra fee if they pay with Visa or which includes all persons, businesses, and other entities MasterCard credit cards, THE COURT HEARING ABOUT that accepted any Visa or MasterCard cards in the U.S. at ™ Offer discounts to customers who do not pay with Visa or THIS SETTLEMENT any time from January 1, 2004 to November 28, 2012, and MasterCard credit or debit cards, and ™ A Rule Changes Settlement Class (Rule 23(b)(2) Settlement ™ ;dgbWjn^c\\gdjehi]VibZZiXZgiV^cXg^iZg^VidcZ\di^ViZ On September 12, 2013, there will be a Court hearing to Class), which includes all persons, businesses, and entities with Visa and MasterCard. decide whether to approve the proposed settlement, class that as of November 28, 2012 or in the future accept any counsels’ requests for attorneys’ fees and expenses, and Visa or MasterCard cards in the U.S. Merchants that operate multiple businesses under different trade names or banners will also be able to accept Visa or awards for the class representatives. The hearing will take MasterCard at fewer than all of the merchant’s trade names place at: WHAT MERCHANTS WILL GET and banners. District Court for the FROM THE SETTLEMENT Eastern District of New York LEGAL RIGHTS AND OPTIONS ''*8VYbVcEaVoV Every merchant in the Cash Settlement Class that files a valid 7gdd`anc!CN&&'%& XaV^bl^aa\ZibdcZn[gdbi]Z+#%*W^aa^dc8Vh];jcY!hjW_ZXi Merchants who are included in this lawsuit have the legal You do not have to go to the court hearing or hire an attorney. idVYZYjXi^dccdiidZmXZZY'*d[i]Z[jcYidVXXdjci[dg rights and options explained below. You may: merchants who exclude themselves from the Cash Settlement 7jindjXVc^[ndjlVciid!VindjgdlcXdhi#I]Z8djgi]Vh š <_b[ W YbW_c je Wia \eh fWoc[dj$ You will receive Class. The value of each claim, where possible, will be based appointed the law firms of Robins, Kaplan, Miller & Ciresi a claim form in the mail or email or file online at: AAE!7Zg\ZgBdciV\jZ!E8!VcYGdWW^ch[ ndj ZmXajYZ ndjghZa[! ndj QUESTIONS? ;jcYl^aaWZWVhZYdc/ can sue the Defendants for damages based on alleged conduct occurring on or before November 27, 2012 on ;dgbdgZ^c[dgbVi^dcVWdjii]^hXVhZIn re Payment Card ™ The money available to pay all claims, ndjg dlc Vi ndjg dlc ZmeZchZ! ^[ ndj lVci id# >[ ndj Interchange Fee and Merchant Discount Antitrust Litigation, ™ The total dollar value of all valid claims filed, exclude yourself, you will not get any money from this MDL 1720), you may: ™ I]Z YZYjXi^dc YZhXg^WZY VWdkZ cdi id ZmXZZY '* d[ i]Z hZiiaZbZci# >[ ndj VgZ V bZgX]Vci VcY l^h] id ZmXajYZ 8Vaaidaa"[gZZ/&"-%%"+'*"+))% yourself, you must make a written request, place it in an 8Vh]HZiiaZbZci;jcY!VcY K^h^i/lll#EVnbZci8VgYHZiiaZbZci#Xdb envelope, and mail it with postage prepaid and postmarked Write to the Class Administrator: ™ The cost of settlement administration and notice, money no later than CWo (." (&') to Class Administrator, EVnbZci8VgY>ciZgX]Vc\Z;ZZHZiiaZbZci awarded to the class representatives, and attorneys’ fees and EVnbZci8VgY>ciZgX]Vc\Z;ZZHZiiaZbZci!E#D#7dm'*(%! expenses all as approved by the Court. EdgiaVcY! DG .,'%-"'*(%# I]Z lg^iiZc gZfjZhi bjhi WZ E#D#7dm'*(% >c VYY^i^dc! bZgX]Vcih ^c i]Z 8Vh] HZiiaZbZci 8aVhh signed by a person authorized to do so and provide all of EdgiaVcY!DG.,'%-"'*(% that accept Visa and MasterCard during the eight-month i]Z[daadl^c\^c[dgbVi^dc/&i]ZldgYh¹>cgZEVnbZci :bV^a/^c[d5EVnbZci8VgYHZiiaZbZci#Xdb >ciZgX]Vc\ZEZg^dYVcYÄaZVkVa^YXaV^bl^aa\ZibdcZn[gdb 8VgY >ciZgX]Vc\Z ;ZZ VcY BZgX]Vci 9^hXdjci 6ci^igjhi EaZVhZX]ZX`lll#EVnbZci8VgYHZiiaZbZci#Xdb[dgVcnjeYViZh i]ZhZeVgViZ>ciZgX]Vc\Z;jcY!Zhi^bViZYidWZVeegdm^bViZan A^i^\Vi^dc!º'ndjg[jaacVbZ!VYYgZhh!iZaZe]dcZcjbWZg! relating to the settlement or the settlement approval process.

www.PaymentCardSettlement.com    sINFO 0AYMENT#ARD3ETTLEMENTCOM

LEGAL NOTICE LEGAL NOTICE LEGAL NOTICE 20130204-NEWS--26-NAT-CCI-CL_-- 2/1/2013 2:10 PM Page 1

26 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 4 - 10, 2013 Change: Many countries have made switch Sterionics: Russians have used device continued from PAGE 1 according to Dr. David Peter, the health system’s continued from PAGE 3 ground for the electricity, which could senior vice president and chief medical officer. “You have to do all this work, cross your fingers, From its tip, the device emits what looks cause problems for people with pacemak- Because of the level of detail the codes will flip the switch overnight and hope to God it’s like a blue spark, but it won’t start a fire. It’s ers, Mr. Polott said. entail, Akron General estimates the productivity translating in the right way,” said Jill Barber, cold plasma — a semigaseous substance of a medical coder could be slashed by about 30%. Killer application Southwest General Health Center’s director of that kills even the toughest bacteria and “That level of specificity is going to be a real revenue integrity and managed care operations. helps wounds heal faster by promoting the Even if all goes according to plan, it will challenge,” Dr. Peter said. “If not, we might not get paid.” growth of new skin cells, according to labo- be a few years before the device hits the Health care providers and insurers nationwide To siphon those productivity losses, Akron market, Mr. Polott said. However, the General and other local health systems are invest- ratory studies conducted by Akron General are migrating toward ICD-10, a set of diagnostic and Health System and Kent State University. company just received two grants that procedural codes developed by the World Health ing in computer-assisted coding software — an should allow it to take a few steps toward automated process that will translate a physi- Other studies back up that data, said Organization that government payers and insur- Stephen Weeks, interim CEO of Sterion- that goal. ance companies use to determine reimbursement cians’ documentation into the ICD-10 codes, The National Science Foundation in which then would be verified by the coder. ics, which licensed cold plasma technolo- levels for certain services. According to the Ameri- gy developed at Petrozavodsk State Uni- December awarded Sterionics a $150,000 can Medical Association, the new standard expands “Computer-assisted coding is felt to be the one grant the company will use to analyze and only solution that won’t devastate your coder versity in northwestern Russia. the number of diagnostic codes from about 13,000 “The Russians have already tested it on how the device performs using feed gases combinations to roughly 68,000, allowing care productivity,” said Southwest General’s Ms. Bar- other than air, how long the plasma must ber, noting the software costs well over $500,000. humans, and it works,” said Dr. Weeks, providers to be more specific in their reporting. who used the pen on Mr. Polott’s cut be applied to the wound and how deep Many other countries transitioned to ICD-10 A mixed bag thumb — and this reporter’s index finger into the tissue it works. over the last decade. The United States has lagged — to prove that it doesn’t hurt. Sterionics also received a $25,000 grant Health care observers say the driving force of because it’s the only country that also uses the The U.S. Food & Drug Administration from the Akron BioInnovation Fund in late the conversion is it will allow the United States to coding for its billing, which has made the transi- has yet to give any company the right to 2011. The company — which works with compare its clinical data more easily with that of tion from a set of codes the health care field has market cold plasma as a treatment for both the Magnet business incubator in other countries. In addition, the new level of used for 30 years particularly daunting. wounds, according to Dr. Weeks and Mr. Cleveland and the Akron Global Business specificity could drive better quality reporting The transition deadline set by the federal govern- Polott, president and CEO of 5iTech LLC Accelerator — will use the money to test metrics and research efforts nationwide, accord- ment already has been delayed by a year until Octo- in Cleveland, which provides product the device on animals at Akron General. ing to Karen Mihalik, the Clinic’s interim execu- ber 2014 to give providers more time for the change. commercialization advisory services. It Cold plasma technology could repre- tive director of revenue cycle management. “Almost everyone in a health care organization also creates companies that license exist- sent a big improvement over antibiotics Still, while all the local hospitals contacted by has to be educated about this process,” said Gary ing technologies and works to turn them and topical treatments that use silver, said Ryan, a partner in PricewaterhouseCoopers LLP’s Crain’s appear to be on track for the 2014 dead- into products. Judy Fulton, director of wound research at Lake Erie market. “This is huge.” line, the health care community hasn’t complete- Among the Cleveland-based startups Akron General. Unlike antibiotics, cold ly cozied up to the mandate. 5iTech has created are Sterionics, eye plasma doesn’t cause bacteria to become Coding conundrum The American Medical Association has lobbied treatment products developer Oculatek resistant to it, nor does it appear to cause In the most basic sense, medical coders have against the shift, citing the high costs of imple- Inc. and Aria Analytics Inc., which is work- significant side effects, Dr. Fulton said. served as the intermediaries between the physi- mentation and its potential to drive smaller ing to commercialize a device that can And unlike silver dressings, cold plasma cians and the insurance companies or govern- providers — particularly independent physicians identify the makeup of liquids. can penetrate biofilms that groups of bac- ment payers, essentially translating the doctors’ — out of business. Some health care leaders teria form to protect themselves, she said. documentation of services into a code that can be across the county have suggested waiting until the Other cold plasma devices exist, but the Cold plasma doesn’t appear to damage digested by those that dole out the cash. But be- World Health Organization debuts ICD-11, which prototype developed by Sterionics, a cause coders are going to require more informa- is expected in 2015. 5iTech spinoff, has several advantages, human tissue significantly, but Dr. Fulton tion from the physicians and other caregivers, ed- Local hospital leaders say there is some concern they said. noted that the plasma does emit ultravio- ucation is paramount. The Cleveland Clinic, for that all the vendors or payers with which they do For one, it’s extremely portable. It uses let light and other charged particles. More instance, anticipates educating more than 7,600 business might not be ready for the conversion. the air around it as the raw material to tests will be needed to figure out dose lev- employees about the process. The MetroHealth System said it is working with create the plasma, while other cold plas- els that humans can tolerate. Some hospitals already are employing large- an insurer, though it wouldn’t identify which one, ma devices need to be attached to a tank But Dr. Fulton does know the bacteria scale training programs for all staff involved with to translate old codes to the new format to see of gas. can’t tolerate a whole lot. the conversion. Summa Health System in Akron whether each other’s operations are up to snuff The pen-shaped prototype — which for “It pretty much kills everything,” she recently had all its coders certified in the new cod- with ICD-10. Medical Mutual of Ohio, meanwhile, now is housed in a gray plastic tube that said. ing system. The health system also engaged an said it’s poised to be ready for the ICD-10 conver- once held a Sharpie marker — is connect- Akron General started testing the de- outside vendor to craft web-based training pro- sion by the end of the first quarter of 2013 and will ed to a small box that provides the elec- vice on pieces of human tissue about four grams for Summa employees. spend the rest of the time until next year’s dead- tricity needed to turn the air into plasma. years ago, and a graduate student later “The software only is as good as what people line testing its systems. However, Sterionics plans to develop a continued that work as part of his disser- put in it,” said Kevin Theiss, Summa’s vice presi- Despite the uncertainty that still swirls around the version that runs on household batteries, tation at Kent State. The work was not dent of revenue cycle. “We felt this was going to issue, Northeast Ohio’s health providers show no Mr. Polott said. paid for by Sterionics; the first set of tests be a pretty large undertaking.” signs of slowing their preparations for the change. “We can make this device into a true was financed by the Akron General Foun- Officials at Akron General Health System said the “If we don’t do it right, we’ll have to hold our pen. A double-A battery kind of thing,” he dation, Dr. Fulton said. A $25,000 grant transition will cost the organization between $5 claims. In other words, we can’t send them to the said, noting that portability would be par- from the Lorain County Community Col- million and $10 million by the time it’s fully imple- payers until we know they are accurate,” said Liz ticularly valuable to the military. lege Foundation’s Innovation Fund paid mented. Moreover, Akron General’s leaders antic- Novak, University Hospitals’ vice president of Sterionics’ device also works on uneven for microbiology testing at Kent State. ipate more than 50,000 work hours will be spent on technology projects. “That could negatively im- surfaces, unlike some cold plasma de- “The more work we’ve done with it, the the project — “a tremendous manpower resource,” pact cash flow.” ■ vices. And it doesn’t use the patient as a more exciting it’s looking,” she said. ■ REAL ESTATE CLASSIFIED Phone: (216) 522-1383 Fax: (216) 694-4264 Copy Deadline: Wednesdays @ 2:00 p.m. Contact: Denise Donaldson E-mail: [email protected] All Ads Pre-Paid: Check or Credit Card

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FEBRUARY 4 - 10, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 27 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS JANUARY 28 - FEBRUARY 3 PR could come — said in an email the university doesn’t struction. Because the buyers of this kind of JANUARY 28 – FEBRUARY 3 comment on personnel matters. — Timothy bond value low risk above high returns, Port in handy here Magaw Authority chief financial officer Brent Leslie The big story: The operator of the under- explained later, the insurance makes the ■ construction Cleveland convention center and The architect of a successful online degree Buy it — it’s bonds more attractive to the market — and medical mart is doubling its staff, to 16 employ- program at Kent State University soon will good for you that means the bonds could be priced low- ees, in anticipation of the scheduled July open- be out of a job, and many people connected er, conceivably saving the county more than ing of the $465 million complex. MMPI Inc. of with the program are scratching their heads ■ Cuyahoga County may end up spending the cost of the insurance. — Jay Miller Chicago is adding eight staffers who will beef up as to why. as much as $300,000 to insure against the the Cleveland office’s operations and sales ef- Gene Sasso, who built Kent State’s online public finance equivalent of a lightning Bonding is forts. Among them is Dick Anter, who will be the master’s degree in public relations, was strike. their bond director of finance and administration, a new notified in January that his contract would County law director Mahjeed Makhlouf position. Mr. Anter is a former mayor of Fairview not be renewed beyond May. Mr. Sasso, a last Monday, Jan. 28, brought up the need for ■ The Fedeli Group in Independence has Park who also served as director of downtown well-known PR practitioner in the region, the insurance policy during a meeting of the become a shareholder in The DLK Group, a development for the Greater Cleveland Growth said he wasn’t given a reason for the firing. county Board of Control, where mid-level surety bonding agency in Stow that has Association, now called the Greater Cleveland “We hit a lot of balls out of the park for purchases are approved or rejected. The pol- been renamed Fedeli Liptak & Keller. Partnership. Kent State and (the School of Journalism icy would insure the county against the un- The investment is the first such arrange- and Mass Communication), which is more likely event that the Ameritrust property — ment for Fedeli Group, and it may become Follow the bouncing ball: The University of a reason why the decision is a huge, huge where the county plans to put its new head- a model for bringing in other specialists, of Akron’s board of trustees signed off on the surprise,” Mr. Sasso said. quarters — would be taken by eminent do- said Umberto P. Fedeli, its president and sale of the Rubber Bowl — the Zips’ former foot- In the two years since its launch, Mr. Sas- main. That’s the legal process governments CEO. Terms weren’t disclosed. ball stadium and an Akron icon that sits near the so said, the online PR program has enrolled at every level use to compel a private proper- Fedeli Liptak & Keller was drawn to the All-American Soapbox Derby — for $38,000. The more than 250 students and generated be- ty owner to sell land to the government. deal because Fedeli Group brings to the university sold the stadium to Team1 Market- tween $5.5 million and $6 million in revenue But, you say, what government might table “a tremendous amount of insurance ing, a Canton-based group that expressed inter- for the university. swoop in and take county-owned land for its acumen and ability,” said Kevin Keller, a est last summer in installing a United States In a letter addressed to Kent State’s own use? And why would the county need to partner of the renamed firm. Football League team in the stadium. The uni- administration, members of the online pay so much for an insurance policy to pro- Fedeli Liptak & Keller specializes in per- versity bought the stadium from the city of program’s first class lamented Mr. Sasso’s tect against such an unlikely occurrence? formance and payment bonds for contrac- Akron in 1971 for $1. firing and asked officials to reconsider. Those are questions Mr. Makhlouf game- tors, primarily for public work. When a con- “We can’t know about the day-to-day ly tried to answer for County Executive Ed tractor is bidding on a project, such as Almost full: Apartment occupancy in down- workings of the Journalism and Mass Com- FitzGerald. The nuances of the risk manage- building a new school, it must provide a per- town Cleveland remains strong at more than munications School — and even less so ment aspect of public finance were unchart- formance and payment bond to the owner 96% despite additional rental units, the Down- about academic politics,” the letter read. ed territory even for a lawyer such as Mr. of the project, Mr. Keller said. That bond town Cleveland Alliance nonprofit reported. “But if you judge Gene Sasso solely on his Makhlouf, with years of business law under provides a third-party guarantee that the The alliance estimated apartment occupancy at performance as program manager, teacher, his belt. The issue was tabled until more in- contractor will complete the project and pay 96.2% at the end of 2012 compared with 95.9% advisor and student advocate, he should be formation was available. subcontractors, among other things. at the end of 2011, even though about 220 apart- earning a promotion and a raise.” The rationale for the insurance had to do Fedeli Group’s investment gives it a ments recently have cone online. Downtown oc- Kent State spokesman Eric Mansfield — with bonds the Cleveland-Cuyahoga Coun- minority stake in Fedeli Liptak & Keller, Mr. cupancy has been at 95% or better for the last himself a graduate of the online PR program ty Port Authority will issue to finance con- Keller said. — Michelle Park seven quarters. The alliance estimated 1,165 new residential units will become available in the next 18 months; current rental inventory is 4,705 WHAT’S NEW BEST OF THE BLOGS suites. It puts the downtown rental rate at $1.14 per square foot compared with $1.05 per square COMPANY: Ridgid, Elyria Excerpts from recent blog entries on foot at the end of 2011. Home Depot and Lowe’s sell CrainsCleveland.com. them aggressively” and man- PRODUCT: 238-P Powered Soil Pipe A new boss: Transtar Industries Inc. said for- ufacturers like TCP help Cutter mer Meritor Inc. executive Timothy E. Bowes On a roll to improve the tech- will join the distributor of transmission kits and The 238-P, nology. ■ components as its chief executive officer. Bob the latest The Horseshoe Casino Cleveland was sin- “Most of the man- Keegan, who acted as interim CEO during the addition gled out for praise in a USA Today story ufacturers are mov- search, will remain as executive chairman of to about a revival in the casino business. ing toward new de- Transtar. Mr. Bowes most recently served as an Ridgid’s “Despite the sluggish economic recovery, signs in solid state executive officer and president of Meritor’s soil pipe- it seems the American casino is back in a big lighting, as are we,” said Commercial Truck and Industrial business unit. cutting prod- way,” the newspaper reported. “Nationwide Jim Crowcroft, vice presi- uct lineup, is designed “to commercial gambling revenues are on track dent for market development at TCP, which Howdy, partner: The Cleveland Indians and make it easier for plumbers to surpass the $35.6 billion notched in 2011, makes energy-efficient lighting under its WTAM-AM, 1100, will remain partners through and mechanical contrac- which was up slightly from $34.6 billion in own brand as well as the house brands of 2017, and the Tribe found a near-permanent tors to quickly cut 2010.” several mass retailers. home on the FM dial, too, the team and broad- soil pipe in hard- The newspaper identified the “lucky sev- Although TCP still sells far more compact caster Clear Channel announced. WTAM and to-reach spaces en” casinos that are “bold, eccentric and fluorescent lights, growth in that business the Indians agreed to a five-year contract exten- such as those in unpredictable,” offering surprises to their has slowed, while demand for LEDs is sky- sion. In addition, WMMS-FM, 100.7, will simul- the rafters of a visitors. The Cleveland casino made the cut rocketing. “In the long run, solid-state light- cast “a majority” of the Indians’ games, the two building or below for its standout architectural features. ing is going to make a whole lot of sense for parties said. grade,” the compa- “Smack in the middle of the Public Square almost every lighting application,” Mr. ny says. neighborhood in downtown Cleveland, the Crowcroft told the newspaper. Shop talk: The International Council of Shop- It’s lightweight — a little more than 13 Horseshoe’s claim to fame is the building in ping Centers trade group selected David LaRue, pounds — and compact, at 11½ inches which it occupies,” USA Today said. “The Art Coming to a theater near you president and CEO of Forest City Enterprises long. Deco Higbee Building dates to 1931, and was ■ A movie filmed in the Cleveland area was Inc., as its chairman for the 2013-2014 term. If Ridgid says the 238-P “incorporates a the city’s first department store. The build- one of the breakout hits of the just-complet- Mr. LaRue is elected at ICSC’s annual meeting in chain that can effortlessly cut no-hub cast ing (and surrounding Tower City Center ed Sundance Film Festival. May, he will become the association’s 54th chair- iron, service-weight cast iron and clay pipe complex) was added to the National Register “Toy’s House” is drawing comparisons to man. up to 8 inches in diameter and concrete pipe of Historic Places in 1976.” “Stand By Me,” “Moonrise Kingdom” and up to 6 inches in diameter.” “Napoleon Dynamite.” It stars Nick Robin- This and that: Gojo Industries Inc. in Akron With its removable handle and low-profile Consumers see the light son, a 17-year-old actor who appears on the announced a new contract with group purchas- cutter wheels, the product “provides the ver- ■ The LED bulb is emerging as “an energy- ABC Family sitcom “Melissa & Joey,” as a ing organization HealthTrust of Brentwood, satility to work with inconveniently placed efficient replacement for the standard in- high school kid who runs away from his dad Tenn., to provide its 1,400 member hospitals and pipe,” according to the company. candescent bulb that people actually seem to live with two quirky pals in the woods in 10,600 ambulatory surgery centers, physician In addition, the 238-P’s unique, two-direc- to like,” according to a New York Times sto- a shack they build together. practices and alternate care sites with access to tional operation “lets users score pipe before ry that included comments from an execu- The comedy was acquired at Sundance by Gojo’s Purell Instant Hand Sanitizer and cutting, helping make the cut cleaner,” Ridgid tive at Aurora-based lighting manufacturer CBS Films for distribution later this year. Provon hand hygiene and skin care products. … says. TCP Inc. “Toy’s House” boasts a great supporting Passenger traffic levels at Akron-Canton Airport And, as a safety precaution, the tool’s “Although priced at around 20 times more cast, including Nick Offerman, Megan Mul- climbed in 2012 as the airport recorded its third torque limit protects it from overloading. than the old-fashioned incandescents, bulbs lally, Alison Brie and Mary Lynn Rajskub. straight record year of activity. A total of For information, visit www.Ridgid.com. based on LEDs, or light-emitting diodes, last The film was shot over 27 days in Lynd- 1,838,083 passengers traveled to and from much longer and use far less electricity, a hurst, North Royalton, Peninsula, the South Akron-Canton, which was a 10.4% jump from Send information about new products to saving that homeowners are beginning to Chagrin Reservation in the Cleveland the number of passengers in 2011. managing editor Scott Suttell at recognize,” The Times said. Prices for the Metroparks, Happy Days Ledges and Nel- [email protected]. bulbs are “falling steadily as retailers like son Ledges. 20130204-NEWS--28-NAT-CCI-CL_-- 2/1/2013 5:23 PM Page 1