Legal Affairs

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APRIL 16-22, 2007 CRAIN’S CLEVELAND BUSINESS 13

INSIDE 16 FIRMS STAY STATESIDE BUT HELP CLIENTS GO GLOBAL LEGAL AFFAIRS

SHORT TAKES

■ LORAIN COUNTY LEGAL AID: Jessica Baggett has joined the Lorain County office of the Legal Aid Society of Cleveland as managing attorney, while Philip Althouse is working as a staff attorney in the office. Ms. Baggett has served as a magistrate in the Lorain County court system for the past 12 years. She also was an instructor at Tiffin University, Lorain County Community College and David N. Myers University. Mr. Althouse, who also is a registered nurse, has maintained a private practice in Cleveland for the past 16 years and recently worked as a contract attorney for Legal Aid’s Lorain County office.

■ GOING INTERNATIONAL: Two Northeast Ohio attorneys are among those selected as American Marshall Memorial Fellows by the German Marshall Fund of the United States. David A. Ruiz, a litigation associate with Calfee, Halter & Griswold LLP, is among those who will travel to Europe this year in an intensive three-week study program designed to give emerging American leaders a more comprehensive understanding of Europe. Mr. Ruiz litigates and tries cases for public and private companies involved in complex business, commercial and antitrust disputes. He also serves as a pro bono attorney for the Legal Aid Society of Cleveland. Tracy A. Turoff, an associate at Giffen & Kaminski LLC, also has been selected. Prior to joining Giffen & Kaminski, Ms. Turoff worked as assistant prosecutor for Cuyahoga County and she was previously awarded the Pancoast Research Fellowship, which sent her abroad to study youth participation in politics and government in Western Europe. American Fellows meet formally and informally with a range of policy- makers and prominent members of the business, Summer programs allow students, law firms to audition government, political, nongovernmental organizations and media communities. each other in order to find the perfect career fit ■ NOT WILLING OR READY: More than half Story by CHRISSY KADLECK ■ [email protected] of all adult Americans do not have a will, a percentage that has remained virtually unchanged over the past three years, according to a new survey, conducted fter interviewing at 20-some weeks or 30 years because that is my goal for Martindale-Hubbell Cleveland law firms, Bradley W. going in.” lawyers.com. On the other hand, living wills Harrison decided to “summer” Essentially, summer programs are a (also known as medical with his top choice — Jones Day. chance for law firms and students to directives) have jumped in popularity since 2004. Two in five adults now A transplant to Cleveland from audition for one another: Law firms look- have living wills in place, a full 10% more than A those who had one just three years ago. Detroit, Mr. Harrison was only slightly ing to land the best and the brightest get more than one-third of his way through to check out the performance of potential Case Western Reserve University School associates, while students have the chance of Law when he landed on the short list of to try out their prospective employers. SNAPSHOT up-and-coming legal talents that would “The idea is for them to get a chance to likely join the firm’s Cleveland office after look at us, and for us to get a chance to HELP WANTED

graduation. look at them,” said Michelle Fischer, Increased demand for legal services is “I really looked to my summer as a guide chairwoman of recruiting for the Cleve- fueling steady hiring activity in the legal industry, according to a recent survey. to the nuts and bolts of what it’s like to land office of Jones Day, which will bring Five in-demand positions are: work at Jones Day,” said Mr. Harrison, in 25 summer associates representing 15 who is now a first-year associate at the schools this year. “The vast majority of 1. Licensed attorneys (5+ years of experience) firm. “In that 13 weeks, I am trying to our new associates — across the firm — 2. Corporate attorneys decide if this is a place I could spend 13 come out of our summer program.” 3. First-year associates See STAGE Page 17 4. Paralegals (3+ years of experience) 5. Legal secretaries

Source: 2007 Salary Guide from Robert Half Legal ISTOCKPHOTO CCLB 04-16-07 A 14 CCLB 4/12/2007 9:09 AM Page 1

14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 16-22, 2007 LEGAL AFFAIRS

learning,” she said. As general counsel, she’s ONTHEJOB constantly being educated. She MARIA G. ALFARO-LOPEZ “Maria was intrigued by the does not handle litigation for the General counsel Catholic Jesuit mission of the university — outside counsel is John Carroll University university,” said the Rev. Robert L. used for that — but she must Niehoff, John Carroll’s president. handle everything else that comes through her office. By CHRISTINE GORDILLO “She was taken by the community Typical issues facing a university [email protected] service we bring to Northeast Ohio … and her professional background general counsel include contract and document review and drafting, t is fortunate that Maria G. was perfect” for us, he said. advising on property leases, Alfaro-Lopez places a premium Indeed, public service and higher employment issues, government on learning. As general counsel education have been threads that regulations, intellectual property for John Carroll University, run through Ms. Alfaro-Lopez’s 27- issues and student affairs. Ishe’s constantly learning about year legal career. A first-generation “It does create a challenge,” Ms. areas of law that are new to her, Mexican-American, Ms. Alfaro- Alfaro-Lopez said. “You can’t do it even after nearly 30 years as an Lopez always dreamed of being a all.” attorney. lawyer. Growing up in the Latino But that’s part of the job that she Being a university general community of Pontiac, Mich., she likes, when she can seek advice counsel “is always very diverse,” said she “saw the need to have from peer resources such as the Ms. Alfaro-Lopez said, “but if lawyers to help those who don’t National Association of College you’re open to learning, it’s not a know the ins and outs of the legal and University Attorneys and problem.” system.” colleagues from her municipal Ms. Alfaro-Lopez, who joined government days. “You get to know the Jesuit college in December and “Being a Latina and a little bit about a lot of areas, but also serves as its secretary to the can’t become an expert on any one board, has spent her first few female in leadership, it’s issue,” she said. months on the job learning how important I give back and Many people do not realize the things work at John Carroll, share what I’m learning complexity of issues general counsels making “preventative work” a top must handle. priority. with others.” “Universities have a broad range She is reviewing and developing – Maria G. Alfaro-Lopez of legal relationships that most policies to limit the school’s expo- general counsel, people don’t associate with sure to litigation, and devising ways John Carroll University educating students, such as to streamline the contract review owning real estate, investing and approval process, a big chunk endowments, managing federal of a college general counsel’s work- She put her service ethic to work research dollars, issuing bonds load. quickly. Her undergraduate and law school days included intern- and hiring a very wide variety of A perfect fit ships with the Mexican American employees from … faculty to physical plant workers to athletic For Ms. Alfaro-Lopez, leaving Legal Defense and Educational coaches,” said Georgia Yuan, presi- Michigan — where she grew up, Fund, and one of Ms. Alfaro- dent of the National Association of where her family is and where she Lopez’s first jobs as a lawyer was College and University Attorneys spent her entire career — was not for a legal aid group in Wayne and general counsel of Smith easy. But she decided the job at County, Mich. College in Massachusetts. JESSE KRAMER John Carroll provided the perfect She then moved into higher Maria G. Alfaro-Lopez, general counsel for John Carroll University, joined the environment to satisfy her passions: education with positions as a To-do list Jesuit college in December and also serves as its secretary to the board. learning, serving and justice. university attorney and assistant general counsel for Wayne State Once Ms. Alfaro-Lopez is more University and then the University settled in her role at John Carroll, of Michigan, where she spent nine she would like to pick up where years. she left off in Michigan as far as OVERWHELMED BY OPTIONS FACING YOUR BUSINESS? She eventually left academia to community service goes. serve in various municipal govern- “Being a Latina and female in ment positions, the most recent as leadership, it’s important I give city attorney for Highland Park, back and share what I’m learning Mich. with others,” she said. “I see that But it was in helping others happening (in Northeast Ohio), I Confused by which direction to take? Look that Ms. Alfaro-Lopez realized she just don’t know what it will look like to Roetzel & Andress for the legal guidance wanted to return to higher educa- yet.” tion. Another priority is transitioning you need. her family to the Cleveland area. A learning experience Her husband, an immigration Our more than 200 attorneys, practicing in In one of her mentoring roles for attorney, is holding down the fort young Latinos a few years ago, Ms. in their Dearborn home with over 40 areas of law, can provide sound legal Alfaro-Lopez brought adolescent their two teenage sons. The three counsel, regardless of your industry or the girls to the Michigan campus to plan on joining Ms. Alfaro-Lopez give them exposure to a world and in the Cleveland area once the challenges your business faces. Our attorneys its opportunities that their parents boys finish the school year. The may not have known. Lopezes also have a 23-year-old represent clients on local, regional, national That experience, and four weeks daughter. and international issues and strive to offer spent in the National Hispana Right now, though, Ms. Alfaro- Leadership Institute program, Lopez is beginning to feel at home high quality legal counsel that exceeds our crystallized for Ms. Alfaro-Lopez at John Carroll, a place that allows clients’ expectations. her desire to be back in an environ- her to follow one of the credos of ment that extols education. “I her life: “Always be in a position of discovered how much I value educating others.” ■ Learn more about Roetzel & Andress at www.ralaw.com.

PARTNERING FOR SUCCESS 222 South Main Street l Akron, OH 44308 l T: 330.376.2700 One Cleveland Center, Ninth Floor l 1375 East Ninth Street l Cleveland, OH 44114 l T: 216.623.0150 AKRON CINCINNATI CLEVELAND COLUMBUS FORT MYERS NAPLES ORLANDO TALLAHASSEE TOLEDO WASHINGTON, D.C. CCLB 04-16-07 A 15 CCLB 4/12/2007 2:14 PM Page 1

APRIL 16-22, 2007 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 15 LEGAL AFFAIRS Awareness of disability law up among lawyers, families

By HARRIET TRAMER mentors who help guide them lectually challenged. Parents often head to court. “The issues are much more [email protected] through the special education might not always be aware of this Ms. Peer, for example, has been nuanced than they were when I process, said center director Kathe fact until they are educated.” involved on behalf of the Parma first began working in the field just hen Nessa Siegel Shelby. City School District in a case that seven years ago,” said Ms. Agins, entered the Cleveland- “The mentors let parents know Being proactive has made national headlines. In who also works as Ms. Siegel’s Marshall College of Law what their rights are when their Oftentimes, disputes involving that case, parents Sandee and Jeff associate. 23 years ago, she already children are being evaluated,” said IDEA eligibility are handled Winkelman have argued for the “The schools bring in consul- knewW exactly how she wanted to Dr. Shelby, who has a doctorate through negotiations between the right to represent themselves in tants who assist them in devising use her degree. She was determined in special education and rehabili- school and parents, with lawyers federal court in a dispute over programs (for children with to advocate for students with special tation counseling. “And they make working out the details, an their autistic son’s education. special needs),” she said. “There needs, making certain they receive parents aware that their children arrangement that’s much less Kerry Agins, who teaches with are, however, always kids who fall services to which they are legally can qualify for services because stressful than litigation, Ms. Siegel Ms. Peer, said most districts are through the cracks. And unfortu- entitled. they fit into one of 13 different said. becoming proactive in utilizing nately, the schools with the least However, her professors cautioned categories. More than 50% of Disagreements involving methods that assist students who empowered families are often the her that the specialization was so those who do qualify are learning punishment or placement are, do not benefit from traditional ones who do not have forward- narrow it would never support a disabled, not physically or intel- however, difficult to mediate and teaching. thinking programs.” ■ practice, Ms. Siegel said. And for a long time, those cautions held true as she supplemented special education cases with divorces and guardianship work. Now, however, times have changed and she has a practice — the South Euclid-based Nessa G. Siegel Company LPA — devoted to special education and advocacy work for disabled children. Christina Peer, a Squire, Sanders & Dempsey LLP attorney who teaches a course on disability law at Case Western Reserve University School of Law, said most students today already have a familiarity with special education legislation prior to taking her class. “I take that as being an indication the legal community is attuned to this law,” she said of the Individuals with Disabilities Education Act, which requires that school districts provide a free, appropriate public education for students whose disabilities preclude them from benefiting from the standard cur- riculum. “There is definitely an awareness.” Knowledge is power This awareness of special education legislation not only has spread through the legal community, but parents and other family members are getting involved and reaching out for help. “They can access so much information (about the educational rights of children) through the Internet that they are not appre- hensive about discussing these matters with a lawyer,” said Ms. Siegel, who once worked as a learning disabilities tutor. “Many families have already gathered much essential data pertaining to their case before they even take this step.” Ms. Siegel also attributes the growth in the special education field to case law qualifying more students for services under the Individuals with Disabilities Education Act, also referred to as IDEA. An individualized education program, or IEP, must be devised and implemented for every child covered under the legislation due to physical or mental challenges. Ms. Siegel said lawyers like her often step in when there’s an argu- ment that a district is not living up to the law’s mandates. Also helping to educate parents about their rights are organizations such as the Cuyahoga Special Education Service Center, which was established by the Ohio Department of Education. The service center offers educational workshops and links parents with CCLB 04-16-07 A 16 CCLB 4/12/2007 1:49 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 16-22, 2007 LEGAL AFFAIRS Age discrimination cases could rise as work force grows older Local locale, global growth gone up, but said it was a “signifi- ow does a $7.8 million employers was chilling. Firms staying stateside while still snatching up cant increase.” punch to the bottom-line “Juries are saying enough is The partnerships also bring — because you didn’t enough,” explained David Young, opportunities to help biz clients work overseas business to the local firms from follow workplace age the employment lawyer who took other countries. The slightly more Hdiscrimination the case to trial By SHAWN A. TURNER That has been the case for Hahn than $20,000 Calfee pays to belong rules following a on Mr. Sadow- [email protected] Loeser + Parks LLP. Mark Watkins, ON THE WEB For info on to Lex Mundi is worth that extra layoff — sound? ski’s behalf. partner-in-charge of the firm’s avoiding ageism issues business, Mr. Ross said. That’s the And, noted ortheast Ohio’s law firms Akron office, said much of Hahn log on to www.crains “What we pay we get back ten- wallop that Philips Mr. Young, are finding they don’t Loeser’s international work is cleveland.com/ageism. fold,” he said. Medical Systems, a things are going necessarily need a physi- connected to Asia so the firm has division of Philips to get worse. cal international presence been active in seeking out lawyers ‘A big wide world’ Nto continue serving their U.S. clients in that part of the world. Electronics of Amsterdam, took in The work force is aging — every Cleveland-based Kahn Klein- 2003 when a Cuyahoga County jury seven seconds a boomer turns 60 who do work in other countries. “Opportunities are changing man LPA, which itself is a member heard engineer Thomas Sadowski’s — and, due to recent tort reform, With U.S. businesses becoming and expanding,” he said. “The Far of the international law firm age discrimination case. lawyers have lost the right to seek more active overseas, law firms East seems to be en vogue.” organization Meritas, has also seen Though the amount Philips huge settlements for malpractice with only domestic offices have Other firms, meantime, have more global business coming its Medical Systems eventually paid and accident cases. found ways to benefit from oppor- joined forces with organizations way, said partner Kevin Barnes. Mr. Sadowski was lowered at the “More lawyers are going to become tunities abroad. that partner with firms interna- “Smaller and mid-market appeals court level, the message interested in age discrimination “I would say the international tionally. companies are looking to do the award sent to Northeast Ohio cases,” he said. — Eileen Beal practice is probably a growth area Walter & Haverfield LLP of for the Cleveland legal market,” Cleveland, for instance, is a more,” he said. “They’re sourcing said Hugh E. McKay, partner-in- member of Lexwork International, products from China or India or AGE DISCRIMINATION IN EMPLOYMENT ACT CHARGES charge of the Cleveland office of a group that helps firms’ interna- trying to establish relationships tional clients find legal resources whether it’s in Europe or Asia or This chart reflects the total number of charge receipts filed and resolved under Porter Wright Morris & ArthurLLP, in the country where their work South America.” the Age Discrimination and Employment Act, as well as those filed concurrently where both the fees from the firm’s takes them. In response, his firm has reorga- under Title VII, the Americans with Disabilities Act and the Equal Pay Act. Resolu- international work and the number Michael McMenamin, head of the nized internally to handle the tions can include settlements, withdrawal of charges with benefits, administra- of clients doing international busi- litigation and employment group at work. At one time, Mr. Barnes was tive closures, findings of no reasonable cause or reasonable cause, successful ness have increased by 20%. Walter & Haverfield, said between the primary attorney for interna- or unsuccessful conciliations or merit resolutions. “I think a lot of people are unaware the player Cleveland is in seven and nine matters a year are tional work, but during the past the international business scene sent to Lexwork member firms. two years the firm has included Fiscal Monetary benefits more attorneys whose responsibil- year Receipts Resolutions (millions)* and the international legal scene,” “If midsize firms like us want he said. to stay competitive we have to be ities include international law. “We have sharpened the 2002 19,921 18,673 $55.7 able to answer our clients’ ques- Building partnerships tions if they say, ‘Hey, we want to resources that we have here,” he 2003 19,124 17,352 $48.9 Several firms with Cleveland set up a company in Germany. Can said. That has benefited such compa- 2004 17,837 15,792 $69.0 offices said they planned to grab their you help us?’” slice of the growing international Cleveland law firm Calfee, Halter nies as Beachwood-based Austin 2005 16,585 14,076 $77.7 business pie without hiring extra & Griswold LLP also belongs to an Powder, which does blasting services work for mining and 2006 16,548 14,146 $51.5 bodies to keep up with the work. international consortium of law Instead, some are striking partner- firms in a group called Lex Mundi, construction businesses. Michael *Does not include benefits obtained through litigation ships with firms in the countries an organization that is not affiliated Gleason, president of Austin SOURCE: U.S. Equal Employment Opportunity Commission where their clients are working. with Lexwork. Powder International, said his Bob Ross, partner and chairman company has needed Kahn Klein- of the international practice group man to help it in the acquisition of at Calfee, said one benefit of foreign companies in places such belonging to such an organization as the Czech Republic. is that the firm is not spending “What Kahn Kleinman has done, money building offices in a part of which has helped us out, is to the world that is a popular location identify local counsel,” said Mr. for business now, but might not be Gleason, “people who know the down the line. local laws and customs.” “Instead of just trying to figure Porter Wright’s Mr. McKay said out where the next hot spot is he believes this type of work is going to be, we’ll just use Lex going to continue to increase. Mundi,” he said. He declined to “It is a growth area,” he said. “The say specifically how much Calfee’s sky’s the limit. It’s a big wide world international practice work has out there.” ■ OGLETREE DEAKINS ON THE JOB MEETINGS & CONVENTIONS SAWMILL CREEK RESORT & CONFERENCE CENTER

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APRIL 16-22, 2007 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17 LEGAL AFFAIRS Stage: Firms tout living, working in Northeast Ohio

continued from PAGE 13 fishing or going to Put-in-Bay, as employ eight summer associates students who are looking to have a as a “One L,” or a first-year law Michael Jacobson, a third-year well as the mix of arts, entertain- this year. “We like to support local career in public interest law, they student at Case. law student finishing his degree at ment and dining options around talent.” seek out programs like ours, which “It’s very competitive to work University of Michigan Law School, Northeast Ohio, said Stephanie While the summer associate is one of the better known in the for these types of places because clerked the past two summers in Haggerty, director of professional program at the Legal Aid Society of country.” it is such good experience and a Cleveland, working at Squire, recruitment and development at Cleveland doesn’t function in the The associates at Legal Aid are lot of people want to get involved Sanders & Dempsey LLP and Baker Calfee, Halter & Griswold LLP. same way as private firms in terms given an intense 10-week glimpse in public interest, and the experi- & Hostetler LLP. “We’re not only looking for the of job offers and enticing salaries, into the practice of poverty law, ence there is really unparalleled,” “I wanted to work at a firm with top people in their class, the top it attracted 170 applicants for its including interacting with clients, said Ms. Gilbride, who is currently the best notoriety, which is why I performers, people who are active 12 unpaid positions, said Melanie shadowing attorneys to court, interning at Legal Aid. ended up at two of the bigger in their community but we are Shakarian, director of develop- project work and training on She said she will spend her firms in town, and I wanted a nice also looking for people who have ment at the Legal Aid Society of specific areas of substantive summer at the Cleveland firm balance of work and play,” said a genuine interest in Cleveland, Cleveland. poverty law, such as predatory Kohrman Jackson & Krantz PLL, Mr. Jacobson, who will join Baker whether it’s their hometown or “It was a pretty incredible group lending, Ms. Shakarian said. which made offers to both of its & Hostetler in the fall. “I know a their fiancé is from here,” said from 50 law schools across the Lauren Gilbride was a summer 2005 summer associates, accord- lot of summer programs in some Ms. Haggerty, whose firm will nation,” she said. “For those associate at Legal Aid last summer ing to the firm’s website. ■ of the bigger cities, specifically Manhattan, are pretty much all play, no work.” He said many of his law school friends summered at larger firms in New York and did very little work, research or writing during their time there. “But they were wined and dined all summer to sell them on the firm. I think once they start working full time they are going to be in for a rude awakening, and I didn’t want that,” said Mr. Jacobson, who grew up on the east side of Cleveland. “A summer program is obviously going to be far less successful than a full-time position with any firm would be but I wanted at least a more realistic view of what life would be as an associate there.” At Baker & Hostetler’s Cleveland office, which normally has between 12 to 14 summer associates each year, summer associates do work that would otherwise be done by the firm’s associates, said Jennifer Pethel, recruiting coordinator. “Summer associates are very focused on the work and the type of work that they are going to be given when they are considering what firm to choose,” she said. “We don’t make up assignments for our associates.” For that work, summer associates earn a salary. At Baker & Hostetler, for example, associates earn $2,100 per week, according to Ms. Pethel. And if the summer associates shine as recruitment professionals believe they will, many firms plan to extend offers to the students as they enter their third year of law school. “We make the tough decisions in the fall when we decide who we want to bring in as summer associates,” said Eric Mosier, chairman of the summer program at Jones Day who also was a summer associate before joining the firm. “We make sure that if we bring 25 summer associates in — if they all show that they do what we think they are capable of doing — that we’ll be able to invite 25 back as full-time associates.” Out to make an impression Law firms also focus on high- lighting the best parts about living and working in Cleveland to summer associates, coordinating social events that feature an activity on Lake Erie such as charter CCLB 04-16-07 A 18 CCLB 4/12/2007 1:43 PM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 16-22, 2007 LEGAL AFFAIRS Law firms offer billing alternatives to cater to clients’ financial needs

By BRAD DICKEN Haverfield on a retainer basis. thing about virtually every aspect [email protected] Mr. Coleman said worrying of the law, Mr. DiPuccio said. about how much a lawyer is going Today’s attorneys are more hile the billable hour to cost with an hourly fee structure narrowly focused on specific areas isn’t a thing of the past, can lead to bad business. of the law than ever before. some law firms around “You end up being more careful “You don’t find a lot of lawyers, the country and a few about when you pick up the phone,” particularly younger lawyers, who inW Cleveland are using unconven- he said. are skilled enough or interested tional arrangements in an effort to enough in providing services out- appeal to the needs of their business Win-win situation side their niche,” he said. clients. Nicholas DiCello, an attorney Susan Hackett, general counsel “One thing that gets in the way with Spangenberg, Shibley & Liber for the Association of Corporate of a small or midsize company LLP in Cleveland, said his firm is Counsel, said many companies using a lawyer is the fear of unex- working to reverse that way of have disbanded their in-house pected legal fees,” said Leonard thinking as well. legal departments to save money. Young, a former in-house corpo- “What’s synonymous with And firms like Walter & Haverfield rate lawyer and now a partner at attorney is billable hours,” said Mr. have increasingly been stepping Walter & Haverfield LLP in Cleve- DiCello, whose firm specializes in in to fill the void left behind, she land. plaintiff’s litigation and recently said. At Walter & Haverfield, business started to take on more business It’s not exactly a common clients using the firm’s general clients. practice, but the idea makes sense counsel services group are charged a flat retainer fee for basic legal services versus an hourly rate. Mr. “One thing that gets in the way of a small or midsize Young said the general counsel company using a lawyer is the fear of unexpected legal services group — started last year fees.” by Walter & Haverfield — is ideal for companies that aren’t large – Leonard Young enough to afford in-house attor- former in-house corporate lawyer, neys, small legal departments or partner at Walter & Haverfield LLP the money pit that could open if a legal problem suddenly materi- At Spangenberg, Shibley & Liber, to Ms. Hackett, especially for alizes. the firm instead agrees to shoulder clients looking to have a legal Just knowing there’s an attorney the cost of the lawsuit and take a department without actually a phone call away who isn’t going cut — a contingency fee that having one. to start the clock the moment his typically runs between 25% and “They can see the same person phone rings gives peace of mind 35% — of whatever the client wins consistently and build a relationship to Zachary Coleman, managing in court or in a settlement. over time,” she said. director of the Cleveland-based “If you think about it, it’s the In the absence of a legal depart- consulting firm ZBK Partners LLC, only arrangement where the client ment, a practice like Walter & which has employed Walter & and attorneys’ financial goals are Haverfield’s means that clients joined,” he said. have access to attorneys with The practice of both attorney expertise in different areas. and client sharing the risk means Don Sweeney, director of lawyers are much more likely to finance for the Brooklyn-based More Value. Better Collaboration. advise a client when their case industrial lubricant manufacturer might not be winnable, Mr. DiCello Dylon Industries Inc., said that was said. part of the reason his company “If there’s no recovery at the end decided to give Walter & Haver- Today, businesses face more legal and business challenges of the day, the client’s going to get field’s retainer system a try. than ever before. In this environment, you need a law firm nothing and neither is the lawyer,” “When we have a question on with the experience and knowledge to bring value to your he said. HR, he brings in his HR guy,” he business. Amy Leopard, a partner at said. “It’s nice to have a single Walter & Haverfield, runs the point of contact. No one person hospital side of that firm’s general could have all that knowledge.” Named a Cross Practice Powerhouse Law Firm by Fortune counsel service. A hospital admin- It’s also good business, Mr. 1000 companies in the 2006 BTI Consulting Survey - one of istrator before she became an Sweeney said, cutting down on only 25 law firms that have earned this national distinction. attorney, she said she sees both the cost of having an attorney sides of the billing question. working directly for the company Clients are increasingly pressur- who might not have something to Trusted counsel to more than half of the Ohio-based Fortune ing lawyers to keep costs down, do every day. 500 companies. she said, which leads to alternative “We couldn’t afford to have billing methods, such as retainers somebody in-house on a perma- and contingency fees. They want nent basis because our needs are Named a Go-To Law Firm™ for corporate governance, corporate attorneys to assume more of the sporadic,” Mr. Sweeney said. risk, rather than charging ahead on Because of Dylon’s irregular transactions, labor and employment and litigation by Fortune lawsuits that could lead nowhere, legal needs, the company is on a Corporate Counsel 500 general counsel surveyed by . Ms. Leopard said. monthly retainer contract with “Clients don’t mind spending Walter & Haverfield for day-to-day Call us today to find out how Vorys can partner with you to the money — if they can see the needs, but that doesn’t mean the develop your legal solutions. value,” she said. law firm deals with everything. Dominic DiPuccio, a partner Walter & Haverfield’s Mr. Young with the Cleveland law firm of said clients retain the firm for a Kahn Kleinman LPA, said while certain amount of time and renew his firm doesn’t engage in the their contracts — or not — when practice, he understands why that period is up. 1375 East Ninth Street clients might like the idea. Problems could come up with 2100 One Cleveland Center “Costs tend to be unpredictable,” the practice, however, in cases Cleveland, Ohio 44114-1724 he said. “You just never know.” requiring extraordinary legal work 216.479.6100 — such as litigation — and at that Wide range of experience point the company typically falls The practice of putting a firm back to the old standby of an www.vssp.com on retainer to deal with daily legal hourly rate. issues is more of a throwback to “When it comes to litigation, we how legal work used to be done, would sit down and put together a Akron, OH Alexandria, VA Cincinnati, OH Cleveland, OH Columbus, OH Washington, DC when every attorney knew some- budget,” Mr. Young said. ■ CCLB 04-16-07 A 19 CCLB 4/12/2007 9:40 AM Page 1

APRIL 16-22, 2007 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19 LEGAL AFFAIRS Prevent employee fraud to preserve revenues

n 2006, the Association of employee dishonesty can be to a carrier’s denial of coverage. person to assume that a loss Certified Fraud Examiners purchased as an endorsement MICHAELBRITTAIN Carriers often cite the inventory- covered by this policy has been or announced the results of its to most companies’ business shortage exclusion to deny claims will be incurred, even though the study of a sample of more than insurance packages. Policies submitted by manufacturing and exact amount or details of loss I1,100 cases of employee dishon- differ, however, in their structure, distribution businesses. This may not then be known.” esty. The study concluded that terms, definitions and exclusions. exclusion precludes coverage for Most courts have found that this organizations lose approximately ■ Different policy forms: Each claims where the proof of loss is clause requires the insured to give 5% of their annual revenues to insurance policy is unique and dependent upon an inventory or notice when it has a level of knowl- fraud. This figure translates to an must be read in its entirety to profit and loss computation. The edge more certain than mere estimated $652 billion in losses. ascertain the extent of coverage. reason for this exclusion is that suspicion of irregular conduct. Whether your company is a Generally, there are two different SHELLYHILLYER inventory losses can occur easily Each year, failure to comply with financial institution susceptible types of crime coverage policies for a variety of reasons other notice requirements results in to cash larceny schemes or a manu- — discovery policies and loss- than theft, such as carelessness, literally millions of dollars in lost facturer or health care provider sustained policies. misplacement or destruction. reimbursement to companies. If you susceptible to fraudulent billing, A discovery policy responds to a ■ Complying with conditions: are unsure whether a situation rises you can take steps to prevent loss covered loss sustained at any time, Insurance companies are in the to the level of “discovery of loss” and purchase insurance to protect but discovered during the policy business of writing insurance con- triggering your notice obligation, your company in the event of a loss. period. The terms of the policy in tracts, selling insurance contracts contact your insurance coverage In addition to conducting effect at the time of the discovery and looking for ways to deny cover- counsel or otherwise err on the side thorough background checks govern, regardless of the insurance ADVISERS age. Failure to comply with policy of providing notice immediately. ■ before offering employment, policy, if any, that may have been conditions is the most common there are mechanisms you can in place at the time the loss actually coverage, you should purchase a reason carriers deny coverage. Michael Brittain is a partner at employ to prevent — or more occurred. policy with a broad definition of Most policies require that notice Calfee, Halter & Griswold LLP in quickly detect and thereby A typical loss-sustained policy “employee.” Most policy forms be given as soon as possible after Cleveland and chairman of the minimize — a loss caused by a applies to covered losses that define employee to mean, among discovery of a loss or a situation Insurance Recovery Group. He can dishonest employee. occur during the policy period and other things, a person whom the that may result in a loss. Many be reached at [email protected]. ■ Implement a confidential are discovered within a specified employer has the right to govern, policies specifically provide that Shelly K. Hillyer is a partner at reporting system: This encour- amount of time after the policy direct or control. Whether the wrong- “discovery of loss” occurs “when Calfee and vice chairwoman of the ages the anonymous communica- period ends. This type of policy doer was under the direction or con- you first become aware of facts Insurance Recovery Group. She can tion of policy or procedural irregu- often covers losses that would trol of the employer is often central which would cause a reasonable be reached at [email protected]. larity. The Association of Certified have been covered by a prior policy Fraud Examiners found that orga- but for the expiration of that prior nizations with such reporting policy’s discovery period. procedures detected fraud nine ■ Key clauses, definitions and months sooner than those without exclusions: While some policies a communication mechanism. broadly cover acts of employee ■ Use internal and random “theft,” other policies only will audits: Audits, especially those respond if the employee commit- performed randomly, can ferret ted the act with the “manifest out the effectiveness of existing intent” to obtain a personal finan- procedures. Companies that use cial benefit and to cause your such audits suffer fewer losses and company to sustain a loss. The discover losses earlier. “manifest intent” clause has been Official Payments. Commercial crime insurance the focus of considerable litigation may reimburse businesses for between carriers and the insured, those losses that do occur. Cover- especially in more sophisticated age for loss of money, securities fraudulent schemes. and covered property due to To maximize your company’s A Big Opportunity SELL YOURSELF Grand openings ■ Have you recently opened a small business in Northeast Ohio? To be included in the Grand Openings listing in the next Small Business section, call sections editor Amy Ann Stoessel at 216-771-5155 or e-mail for Small Businesses. [email protected].

2007 Mercedes Benz C280 4matic sedan www.officialpayments.com 1-800-2PAY-TAXSM

Use your American Express® Card, Discover® Network, MasterCard® or Visa® card to pay your federal (Form 940, Form 941 and Form 944) and state business taxes through Official Payments Corp®. You'll get the convenience of a fast, easy, checkless payment, more control over your cash and you may even earn reward points, miles or money back. You can also deduct the convenience fee on federal business tax payments. Call 1-800-2PAY-TAXSM (1-800-272-9829) or visit www.OfficialPayments.com. You can also pay through Official Payments when you use TurboTax® to prepare your taxes. It's fast, secure and federal payments are authorized by the IRS.

$379 per month lease, Zero down payment. 7,500 miles per year plus tax title fees due at delivery. Tier A1 credit required. Offer expires 4/30/07. Official Payments is a wholly owned subsidiary of Tier Technologies, Inc. Official Payments charges a convenience fee for this service. Federal business taxpayers can deduct the fee as a business expense. Federal tax deposit payments LEIKIN MOTOR COMPANIES cannot be paid through this service. This service is also available for federal personal individual income taxes and other state personal and business taxes and fees in AL, AR, AZ, CA, CT, GA, IA, IL, IN, KS, LA, MD, MN, MS, NE, NJ, 38750 MENTOR AVE., WILLOUGHBY NY, OH, OK, OR, PA, RI, VA, WA, WI, WV and D.C. Check with your card issuer for participation, rewards and money 800-299-8510 • 440-946-6900 back terms, conditions and eligibility. www.leikinmotor.com Mercedes-Benz CCLB 04-16-07 A 20 CCLB 4/12/2007 9:10 AM Page 1

20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 16-22, 2007

Joseph Hutchinson to national chair, and Jon Dodge to graphic designers; GOING PLACES Bankruptcy and Creditors’ Rights Carmina Duarte and Ashley Practice. Moehring to account coordinators; director. JOB CHANGES BENESCH, FRIEDLANDER, Bridget Durica to marketing COPLAN & ARONOFF LLP: Brian research analyst; Bradley Eimer to DISTRIBUTION GOVERNMENT D. Kenney to attorney. copywriter; Karole Kelly to senior WORLD CUP COFFEE: Carole NASA GLENN RESEARCH CENTER: account executive; Danielle Rose to BUCKINGHAM, DOOLITTLE & accounts payable clerk; Steve Jones to brand manager for sales, Robert Moorehead to director, BURROUGHS LLP: John P. Slagter JavaFlow coffee system. Space Flight Systems Directorate. Shaffer to media director; Tracy Lord Obery Slagter to managing partner. Washington to field marketing HEALTH CARE COWDEN HUMPHREY CO. LPA: manager. EDUCATION James A. Sennett to partner. KENT STATE UNIVERSITY: Robert CLEVELAND CLINIC: Brian Davis HAHN LOESER + PARKS LLP: NONPROFIT G. Frank to senior vice president for to director, Medical Device Solutions. Timothy M. Bittel to partner. THE BECK CENTER FOR THE academic affairs and provost. NORTHEAST OHIO EYE SURGEONS: MCDONALD HOPKINS LLC: Scott ARTS: Lucinda B. Einhouse to NOTRE DAME COLLEGE: Michael T. Dr. William Rudy to medical staff. M. Richardson, William Fisher and president, CEO. Dugan to director of safety and security. SUMMA HEALTH SYSTEM: Rebecca Stacy Emhoff to associates. THE CLEVELAND FOUNDATION: Ross to program director, Wound Care George Delgado to director of inter- FINANCIAL SERVICE Center, Ostomy and Hyperbaric OGLETREE, DEAKINS, NASH, Sennett Beredo Thomas national relations; Lillian Kuri to Services. SMOAK & STEWART, P.C.: Sara E. CLEAR PERSPECTIVE GROUP Hutchins to associate. director of special projects; Kevin LLC: Donald J. Modica to vice UNIVERSITY HOSPITALS GEAUGA ROETZEL & ANDRESS LPA: Mary McDaniel to program officer; Traci president of research. MEDICAL CENTER: Melody Obery Douglas to donor relations assistant; to manager of human resources. Anne Walsh to director of govern- ERNST & YOUNG LLP: Rich ment relations. Maureen Forrest to scholarship Mitchell to leader, North Central assistant; Monica Brown to Strategic Growth Market. INSURANCE SQUIRE, SANDERS & DEMPSEY human resources manager; Yvette LLP: Cipriano S. Beredo III and THE HOFFMAN GROUP: Kathy Burrucker to human resources SPERO-SMITH INVESTMENT Terence L. Thomas to partners. ADVISERS INC.: Mary E. Lord to Williams to personal lines account generalist. Einhouse Holmes Jones senior vice president and chief manager. MANUFACTURING THE MALTZ MUSEUM OF JEWISH investment officer. HERITAGE: Kim Bihler to manager CLEVELAND-CLIFFS INC.: Steven dents, development. SS&G HEALTHCARE SERVICES LEGAL of tourism and special events; Adam M. Raguz to vice president, corpo- LLC: Gary D. Wengerd to associate BAKER & HOSTETLER LLP: Teresi to operations and financial REALTY CORPORATION OF AMERI- rate planning and strategic analysis. coordinator. CA: Jim Miller to sales associate. CUTTING SYSTEMS INC.: Frank THE MANDEL FOUNDATION: Joel Boulton to regional sales manager. Fox to executive vice president. SERVICE EATON CORP.: Taras G. Szmagala UNIVERSITY CIRCLE INC.: Samantha HUMAN ARC: Megan Straub to Jr. to chief counsel, Fluid Power Holmes to Future Connections EES account representative; Nikki Group. program manager. Bryant to administrative assistant; POLYONE CORP.: Lisa Kunkle to Donna Johnson to accounts payable assistant general counsel. REAL ESTATE specialist; Georgene Upshaw and Quanesha Foley to customer service COLDWELL BANKER HUNTER representatives; Margaret Judson to MARKETING REALTY: Sam F. Scaffide, Yvette account representative. BROKAW: Enrique Espinetti to M. Truman and Thomas J. Sech, account coordinator; Nici Crislip to Brecksville; Sandra R. Sprouts, JURINNOV LTD.: Fred Jones III to account executive; Cindy Gabel Bedford; Michael Madden, litigation support specialist. Niezgoda to senior art director; Leah Beachwood; Nicolettte Kuebeler, Soeder to business development Fairlawn; Rita M. Showman and RETIREMENTS manager. Mitzie Kelleher, Medina; Jonathan HARDWICK STANDARD DISTRIBU- MALONE ADVERTISING: Stephen E. Marochino, Holly Jennifer Preble, Jacqueline Jourden and TION CORP.: John E. Semonin, as Abdo to vice president and director, of March 31, 2007. CPG strategic planning; Dean Biscan Melissa McCracken, Portage Lakes; and Thomas D. Burke, Westlake; to UNIVERSAL OIL: Bob Mendelsohn, sales associates. after 30 years; Tim Mendelsohn, THE NRP GROUP LLC: Ken after 30 years. Outcalt to senior vice president of development; Aaron Pechota and Send information for Going Places to Matt Shoemacher to vice presi- [email protected].

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