OCTOBER 2012 THE BARRISTER Page 1
Published by the Camden County Bar Association VOL. 61, No. 2 OCTOBER 2012 www.camdencountybar.org Agre Named Camden Honorable Garrett E. Brown, Jr. (ret.) County’s Professional to Receive Gerry Award October 24 Chief Judge, U.S. District Court for the District of New Jersey Lawyer of the Year to receive prestigious award Following a review of nominations received The Honorable Garrett F. Gerry Memorial Scholarship recipient will from the membership, the E. Brown, Jr. (ret.) has been also be announced and presented with a CCBA’s Committee on named the 2012 recipient of check during the dinner. Professionalism has selected the prestigious Judge John “Chief Judge Brown’s long and very Robert N. Agre the 2012 F. Gerry Award. The award distinguished record of public service Camden County Professional will be presented at the 17th exemplifies the same dedication reflected in Lawyer of the Year. annual Gerry Award Dinner the life and times of Judge Gerry and serves Senior Partner in the law firm of Agre and on Wednesday, October 24, at as a shining example for all of us in the legal Jensen in Haddonfield, Bob will receive his award the Westin Hotel in Mount Laurel. Beginning profession,” said retired Superior Court Judge at the annual Professionalism Awards Luncheon with a cash bar cocktail reception at 6 p.m., John B. Mariano, who chairs the Gerry Award on November 1st at the Pines Manor in Edison. the award will be presented during the dinner, Continued on Page 24 Sponsored by the New Jersey Commission on which begins at 7 p.m. The 2012 Judge John Professionalism in the Law, the award recognizes and honors attorneys who are considered by their peers to exhibit the highest professional Autumn Scramble October 29th character and competency, are respected in the Experience the 2012 Autumn Scramble! community, and are considered to be models of There’s no better way to wind down the 2012 golfing season than the Autumn Scramble @ Laurel Creek professional behavior. Country Club in Mount Laurel! We’re teaming up this year with the Burlington County Bar Foundation to Congratulations Bob! You are truly deserving create a day to remember and all members are invited to participate, whether or not you play golf. of this special award. At just $190 per player, including greens fees, cart, gifts, lunch, happy hour and awards banquet, the Autumn Scramble is the best golfing value in South Jersey! With two hole-in-one prize holes featuring a two-year lease on a 2012 Lexus courtesy of Lexus of Cherry Hill, and a $10,000 cash hole compliments of Asbell & Eutsler, you don’t want to miss this exciting day on one of South Jersey’s finest courses! And you don’t have to make a hole-in-one to walk away with great gifts and prizes either. Of course, the real winners are the less fortunate in the community who will benefit from the Foundation- sponsored parties and projects made possible by the proceeds from this annual rite of Fall. Bar members are encouraged to organize firm teams or invite clients and friends to participate in this special event. Fall Frolic! A number of sponsorship/marketing packages, including special foursome deals and tee signs, are November 20 available. Please use the Autumn Scramble registration flier included with the inserts to read more about this The Coastline Bar & Grill year’s outing, then sign up to participate! Now celebrating its 21st year, the Autumn Scramble has raised more than $230,000 to support the Foundation’s many community service programs, and has something for everyone, whether you golf or not! The deadline to register is October 22nd. For additional information about the Autumn Scramble or Marketing/ inside Sponsorship opportunities, call Bar Headquarters at 856.482.0620 or email [email protected]. Don’t miss one of South Jersey’s premier golf outings—the Autumn Scramble at Laurel Creek! The Docket ...... 2 Member on the Spot ...... 3 NJSBA Trustee Update ...... 5 Pro Bono Expungement Attorneys Needed Young Lawyer Corner ...... 6 Because of the severity of recent budget to pro bono attorneys. Many of these Revised FINRA Rule 2111: cuts, South Jersey Legal Services, Inc. (SJLS) individuals need the expungements in “Suitability Plus” ...... 8 has significantly reduced staffing levels and order to secure employment. Message to Newly Admitted Lawyers . . 10 its level of client services proportionately. If you are willing to assist, please contact President’s Perspective ...... 13 Currently, SJLS is not assisting individuals who Michelle T. Williams, Esquire, Director of need expungements of their criminal records. Pro Bono Services and Centralized Intake, at Wine & Food ...... 14 We would like to start a project to refer 856.964.2010 ext. 6229 or MTWilliams@ Legal Line to Criminal Law ...... 18 eligible individuals who need expungements lsnj.org. 6 - 8 pm - November 20 The Coastline Bar & Grill 1240 Brace Rd., Cherry Hill Page 2 OCTOBER 2012 The Barrister Published monthly, except July and August, by the the docket Camden County Bar Association.
Tuesday, October 2nd Monday, October 29th President Second Vice President Young Lawyer Committee Meeting CCBF/BCBF Autumn Scramble Brenda Lee Eutsler Jenifer G. Fowler 12:30 pm Golf Outing 1702 Haddonfield-Berlin Rd. 76 E. Euclid Avenue, Ste. 101 Cherry Hill, NJ 08033 Haddonfield, NJ 08033 Bar Headquarters, Cherry Hill Laurel Creek Country Club 701 Centerton Road, Mt. Laurel President-elect Treasurer Wednesday, October 17th Gary W. Boguski Louis R. Moffa, Jr. Professionalism Day Tuesday, November 6th 199 6th Avenue 457 Haddonfield Road, Mt. Laurel, NJ 08054 Ste. 600 Hall of Justice, Camden Young Lawyer Committee Meeting Cherry Hill, NJ 08002 12:30 pm First Vice President CCBA Board of Trustees Meeting Bar Headquarters, Cherry Hill Casey Price Secretary 4 pm 35 Kings Highway East, Eric G. Fikry Ste. 110 301 Carnegie Center, 3rd Fl. Bar Headquarters Haddonfield, NJ 08033 Princeton, NJ 08540 Wednesday, October 24th Executive Director Judge John F. Gerry Award Dinner Laurence B. Pelletier 6 pm Cocktails, 7 pm Dinner & Program 1040 N. Kings Highway, Suite 201, Cherry Hill, NJ 08034 Regency Ballroom, The Westin Hotel 555 Fellowship Road, Mt. Laurel Tentative Agenda Board of Trustees 2013 New Jersey State Bar Thursday, October 25th for October 17, Charles C. Bratton, II Trustee Probate & Trust Committee CLE Luncheon Carol A. Cannerelli Arnold N. Fishman Disposition of Estate Realty Trustees Meeting Adam E. Gersh Immediate Past President John P. Kahn Louis R. Lessig Noon – 2 pm A tentative agenda for this month’s William Tobolsky Tavistock Country Club, Haddonfield Ombudsperson regular Board of Trustees meeting follows. 2014 Robert G. Harbeson Gregory P. DeMichele The meeting will begin at 4 p.m., at Bar ABA Delegate CLE on Tap! John J. Palitto, Jr. Headquarters. All meetings are open to the Louis G. Guzzo Richard A. DeMichele, Jr. NJ Civil Trial Preparation membership. Anyone interested in attending Michael V. Madden Editorial Board 3 – 6:15 pm should notify and confirm their attendance by Justin T. Loughry John C. Connell The TapRoom calling Bar Headquarters at 856.482.0620. 2015 Warren W. Faulk V. Richard Ferreri 427 W. Crystal Lake Avenue, Haddonfield I. Call to Order Eric A. Feldhake Ronald G. Lieberman William Groble II. Minutes from Previous Meeting Ellen M. McDowell Peter M. Halden Professional Networking Happy Hour III. Treasurer’s Report Jerrold N. Poslusny, Jr. James D. Hamilton, Jr. Co-Sponsored by IV. President’s Report Carl Ahrens Price John J. Levy the NJSCPA Young Professionals John G. McCormick V. Membership Committee Report Young Lawyer Trustee Casey Price 6 – 9 pm VI. Executive Director’s Report Michael J. Dennin Brenda Lee Eutsler (ex-officio) P.J. Whelihan’s Pub VII. Young Lawyer Committee Report Cherry Hill VIII. Standing Committee Reports Editorial Offices Views and opinions in editorials IX. Foundation Update 1040 N. Kings Highway, and articles are not to be taken Friday, October 26th X. NJSBA Update Suite 201 as official expressions of the Social Security Committee Meeting Cherry Hill, NJ 08034 Association’s policies unless XI. New Business (if any) Noon so stated, and publication of XII. Old Business Advertising contributed articles does not Bar Headquarters, Cherry Hill XIII. Adjourn 856.482.0620 necessarily imply endorsement in [email protected] any way of the views expressed.
Periodicals postage paid at Cherry Hill, NJ and additional offices (USPS 712 - 480). Classified Advertising Rates: $30 per insertion ~ MEDIATOR / ARBITRATOR ~ Annual Subscription Rate: $50 Michael Patrick Mullen, Esq. Forty years plus of legal experience with Be an active participant seven years as a judge of compensation. in YOUR professional Specializing in: personal injury, contract, organization. medical and legal malpractice ATTEND MEETINGS 609-923-3672 AND FUNCTIONS! 1913 Greentree Road, Cherry Hill, NJ 08003 [email protected] OCTOBER 2012 THE BARRISTER Page 3 Member on the spot
NAME: David L. Hasner PRACTICE AFFILIATION: Hasner and Hasner, PA
YEAR ADMITTED TO BAR: 2011 WHEN AND WHERE HAPPIEST? When: Currently; Where: Anywhere OTHER BAR ADMITTANCES: CHERISHED MEMORIES: I don’t remember. I hope I don’t forget to Pennsylvania and New Jersey make more. GREATEST FEAR: That I will die and my funeral will be like Willy PRIOR OCCUPATION: Background Screening Company Loman’s. in NYC; also, student ALTERNATE CAREER CHOICE: Weather Man. RESIDENCE: Mount Laurel, NJ GREATEST LESSON LEARNED FROM PRACTICE OF LAW: It is a HIGH SCHOOL: Moorestown Friends School ’02 continuing lesson: always be a skeptic. There is some value in our legal system, which requires that the facts be proved instead of merely claimed COLLEGE: NYU ’06 to be true. Also: Get paid up front. LAW SCHOOL: Rutgers Camden, ’11 PERSON YOU’D MOST LIKE TO DINE WITH: Gandhi. WHAT LED YOU TO A LEGAL CAREER: It is a flexible and diverse PET PEEVE(S): Cars immediately behind me that pass me on the right, field; there are many specialties and so many ways to help people and only to end up stuck immediately ahead of me at a red light. Studies have be involved, also, I wanted to do something challenging and constantly shown that in urban or suburban areas with many lights, you do not cut changing off any travel time by speeding or weaving. BEST PERSONAL/PROFESSIONAL ATTRIBUTE: A constant need to LIFE’S HIGHLIGHTS: Starting a business with my dad. know more, understand more, and get better at what I do. There’s a lot to be GREATEST ACCOMPLISHMENT: See “Life’s Highlights”; also, passing aware of and many ways to handle matters and help people. I am driven to PA and NJ bars in the same sitting last year. get to a place where I am confident to best assist my clients. The challenge, #1 PROFESSIONAL GOAL: Make a decent living by earning a of course, is that as soon as you are comfortable with the application of a reputation for being a compassionate and qualified attorney law or process, it changes on you and you have to re-learn and adapt. #1 PERSONAL GOAL: Earn respect from family, friends and peers. GREATEST FAULT: A double fault. I hate those. LIFE EXPERIENCE(S) WITH GREATEST IMPACT: Living in New WHAT I DO TO RELAX: Mindless T.V.; sports or comedy; after a long York City was an eye-opener. Fun also. day of focus, sometimes you just need to zone out; also, sleep. ADVICE TO YOUNG LAWYERS: Be as involved as you can be. HOBBIES: Sports (Tennis, Racquetball, Golf, Gym), Guitar, Piano, doing HOPE TO BE DOING IN 10 YEARS: Running a successful practice. things I haven’t done before FAVORITE QUOTATION: Be the change you wish to see in the world. FAVORITE RESTAURANT: Man, the Cheesecake Factory really seems to have everything, doesn’t it? That Reese’s chocolate cheesecake piece is FAVORITE BAND: Motion City Soundtrack my downfall too. CURRENT FAVORITE SONG: “Some Nights” by Fun. FAVORITE TELEVISION SHOW: I am really excited about the return of Arrested Development. By far the funniest and smartest comedy I’ve ever seen. FAVORITE MOVIE: Requiem for a Dream; Sunshine New Jersey Law Journal’s (such an underrated movie) AUTUMN CLE PACKAGE FAVORITE AUTHOR/BOOK: I used to read all E-DISCOVERY & ETHICS of those Stephen King books, until my time was consumed by law books and law materials. The Story of Earn up to 4.8 hours of MCLE credit in NJ/NY/PA including 2 hours of ethics credits. Stuff is pretty good also. Fernando Pinguelo eDiscovery: What You Really Need to Know - is chair of the Cyber A Practitioner’s Guide to NJ State and Federal Security & Data FAVORITE VACATION PLACES: Anyplace with a Thursday Protection Group of Civil PracticePresented by: Fernando Pinguelo and Norris, McLaughlin & nice golf course, an open tennis court and a night life October 25 Marcus. within walking distance. 4:00 p.m. – 8:30 p.m. Matthew Knouff This is the six-year anniversary of the federal and New Jersey FAVORITE WEBSITE: What’s the internet? Woodcrest state court eDiscovery rule amendments. Join us for a two- hour program where the presenters will distill the rules and Matthew Knouff is FAVORITE MUSEUM: I’m not a huge museum-goer, caselaw into practical application, take you through a simulated General Counsel and Country Club, eDiscovery Counsel with so we will go with the hometown hero: Philadelphia eDocument collection and review, and impart tips on how to Complete Discovery Cherry Hill make the process manageable. Source, Inc., a provider Museum of Art of electronic discovery services and technology. FAVORITE WEEKEND GETAWAY: Sea Isle City. For group registration and more ENJOY MOST ABOUT PRACTICING LAW: My dad information, contact Douglas Brown, and I run our own practice now and I really enjoy at 973-854-2928 /[email protected]. For sponsorship opportunities, please Ethics—Investigation, Prosecution and Justin Walder, managing having a lot of control over how we do business. Being partner of Walder, contact Vivian DiStaso, at 973.854.2910 Discipline Hayden & Brogan, is your own boss (even though we all know who the real the New Jersey Law / [email protected]. Presented by: Justin Walder Journal’s 2011 Lawyer of the Year. boss is). An attorney has been contacted by an ethics investigator—now what? MOST ADMIRED PERSON AND WHY: Anyone who Corporate Sponsors: sacrifices personal time to do things for others; we need all the selfless people we can get To register, go to www.njlj.com and click on the lectures tab. Page 4 THE BARRISTER OCTOBER 2012
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By Arnold Fishman www.fishmanandfishmanlaw.com Inertia is the overwhelming force in my that I have been forced to make in my years, time to have transpired for you to have life. I am resistant to change. I have been in and invariably they have all worked out fine. expended all of the effort that is necessary my house for more than 35 years. When we Choices involving marriage – yea or nay; to make the decisions, that you have already moved in, I vowed that my next move would career – law or psychiatry; children, and, if so, made, work for you. be in a pine box. In spite of that reluctance, how many; my living and working location – So too it is with the practice of law. Every circumstances have conspired against me. PA or NJ, rent or buy; regular or light – more case, from the initial interview to the closing After more than 20 years in Camden and taste or less filling; and the list goes on. letter, will at various junctures, present over 25 years in Haddon Heights, we have They were difficult because there were, at plausible options. Many of them will be outgrown our space, and have moved our each junction, a number of equally attractive close questions, with each selection having offices. We took advantage of a buyers (or unattractive) alternatives. They were life some benefits and some detriments. There market and purchased a recently refurbished changing because each option would put me may never be a clear answer. I can become handsome old building on the White Horse on a path where, after a brief period, returning paralyzed searching for the perfect outcome. Pike in Lawnside. It sits on a hill directly to the initial turning point would be difficult, Accordingly, when you become stuck and are across from the Lowe’s Shopping Center. If if not impossible. How could I be so lucky to in danger of an indefinite period of agonizing, you are in the neighborhood, and the lights have chosen so well? I do not delude myself; I my advice—easier to give than to take—is to are on, stop in and say hello. I will give you am not that good a chooser. set an arbitrary amount of time to ruminate, the guided tour. In retrospect, I have had an epiphany. then just pick a solution and proceed to make Now that the necessary renovations have It occurs to me that success in life is not so it right. been completed, and the logistics of the much a function of choosing well, but much Send comments to: dreaded actual move negotiated, I have had more a function of exercising the discipline [email protected] the opportunity to reflect. There have been of refusing to look back to question your numerous difficult life-changing decisions judgment until you have allowed the requisite
Come Frolic With Us! Fall Frolic set for November 20th
Thanks to the unfailing generosity of our good friends at The PLEASE understand why your support is so vital: Coastline, the Camden County Bar Foundation will be hosting two 1. Fall Frolic proceeds will be used to purchase gifts for Santa to annual events there again this year. give our guests on December 1st, with a portion used to support Each year, the Coastline opens its doors to Association members, the Chris Mourtos Memorial Scholarship. their staff, clients and friends for a happy two hours featuring a 2. The average cost over the past 5 years to treat the children was hot buffet and even hotter dance music. Once again, we will frolic $6,200. at the Coastline (1240 Brace Road, Cherry Hill) between 6 and 8 3. Fall Frolic proceeds are used to pay for the children’s presents. p.m. on Tuesday, November 20th and WE NEED YOU TO JOIN 4. Your staff members, clients and friends will really appreciate US! Due to ABC regulatory changes there is now a minimal charge receiving tickets. per drink. The ticket price of just $15 includes one drink ticket. 5. Besides pre-holiday networking with your colleagues and On December 1st, 250 or more wide-eyed children from Camden friends from the bench and bar, you will gain the satisfaction will be treated to a very special holiday celebration featuring a of contributing to what truly is a smile-producing day for so sumptuous Coastline breakfast, an always dazzling magic show, many delightful and deserving kids. and a visit with Santa who, with the help of his many elves, gives Thanks to The Coastline and YOU, this will be a great FUNdraiser each child a beautifully wrapped Christmas gift and a photograph – fun for you and for the children who will benefit from your of themselves sitting on Santa’s lap. While the Coastline and its kindness. employees donate the food and their time to prepare and serve it, To help ensure another “Merry Christmas” for those kids in the Bar Foundation underwrites the entertainment and, of course, need, please be sure to join us. Tickets may be reserved by sending the gifts. To enable us to pay the costs associated with this important a check to CCBF Fall Frolic, 1040 N. Kings Highway, Suite and appreciated holiday celebration, the Bar Foundation turns yet 201, Cherry Hill, NJ 08034. To pay by credit card or to learn again to our caring Coastline friends. more, please call bar headquarters – 856.482.0620, or email Kathy at [email protected]. Page 6 THE BARRISTER OCTOBER 2012 young Change for the Better lawyer
corner By Michael J. Dennin
Change of season signals renewed purpose only as strong as our members. This year we Rutgers Law School as well so we may reach and drive for the YLC. Many good things are instituted our first annual clerk informational out to local law students. We had a mixer and happening with the Bar Association and our luncheon at the Superior Court in Camden. The meet and greet with the diversity group at Young Lawyer Committee. Being able to lead Judges were kind enough to allow us to speak Rutgers in Camden in September. This event our group in the past few months has provided with the incoming and outgoing clerks about was well attended and hopefully beneficial for opportunity to build on the past and move the benefits of joining the Bar Association. the students. This is something we will build on forward. While summers are often quiet and Brenda Eutsler, our President, and I discussed and grow. These events were timely in light of relaxing we were busy organizing our Lobster what gifts our association provides to attorneys the Meet the Judges and Law Clerks reception on Bake and associated events. Our Lobster Bake in terms of charity, personal development September 19. It was a pleasure to see all of the committee of Mike Madden, Rachel Licausi, and education. Most, if not all, signed an Judges and clerks at the event at the Boathouse. Adam Gersh, Bill Cook, Dave Hasner, Victoria application for membership. The session was The atmosphere was perfect and the food was Schall, Lindsey Wagner, Matt Spataro, Kathy also a nice breather to converse with peers and delicious, just in time for the new Court year. DelPrato and Larry Pelletier formed to create a have a hot lunch spread. There is no downside Fall brings so many great events that lead us tremendous event! All of the hard work paid off as membership is free to clerks, law students into the holiday season. Our group is changing and the Bake was a tremendous success. Thank and first year attorneys. as well for the better. The annual Halloween you especially to all of those who came and to We have new faces every day in our party at the Anna Sample House is coming up, our sponsors. Without participation none of Association. I have yet to meet a person who as are numerous CLE events and the Autumn this would have been possible. LARC again is is unhappy as a member. Young attorneys Scramble. The Autumn season gives us reason receiving a significant charitable scholarship and law students often are not aware of what to change for the better. We are moving forward from our Foundation. the Bar Association offers or how they can be as a group and are stronger than we were The Bake is an example of what we can do helped through the Bar. One goal this year is to last month. Our values remain the same. The as a group for the community. Membership in increase awareness among all younger and new Lobster Bake was quite a spark to the giving our Association and Young Lawyer Committee attorneys. In addition to the clerk informational season, and we will continue our success while allows us to effect change. However, we are we are planning an informational luncheon at building on the past. OCTOBER 2012 THE BARRISTER Page 7 Myths in Multiples: Are Rules-of-Thumb Useful?
By Martin H. Abo, 2. One of Agency B’s clients accounts for same gross sales having two different values? CPA/ABV/CVA/CFF 25% of the agency’s fees. Well, the first car wash is a brand new 3. Agency A has a long-term, noncancelable facility and is located in a more exclusive part Have you ever wondered where the actual lease for its offices. of the county. Its first year it grossed $250,000 term “Rule-of-Thumb” came from? Abo Some considerations unique to the in sales, its second year it did $500,000, this doesn’t want to see himself apologizing in insurance business might be: year $1,000,000, and next year it expects to do front of the Family Court but I’ve read that • The size and mix of commission income $1,500,000. Its equipment is spanking new. It the “Rule-of-Thumb” has been said to derive from life, health and business products, has good aggressive management. Everything from the belief that English law allowed a • Whether business is concentrated with a about this business is trending upwards. man to beat his wife with a stick as long as particular insurance carrier, and Carwash #2 is located in an older, less it was no thicker than his thumb (of course, • The relationship of sellers to significant desirable part of the county. A few years ago it Jane, I don’t subscribe to that theory). customers. was doing $2,000,000 in sales, now it is down Regardless, many industry-specific How about this same insurance agency to $1,000,000. The roof leaks. The property, formulas or simple calculations have arisen plant and equipment are old and needs repairs. over the years for valuing companies. Where that grosses $200,000 and is listed for sale by a broker at 1 times annual gross or $200,000, Basically everything about this business is do they come from? Originating in industry trending downwards. Two businesses, same studies or surveys, the minds of business with the seller taking back a 120 month (10 year) note with no interest. Assuming typical industry, same sales—completely different brokers, transaction databases, cocktail values. Restricting the analysis to a mere rule- conversations, publications and other even terms would call for a 7% interest rate per annum; this “effective” multiple would be of-thumb just won’t pick up on that. less reliable sources, these so-called “rules- Our suggestion? Use Common Sense. of-thumb” are often used—and abused—in 71.79% (i.e. present value of $143,573). With Rules-of-Thumb, the multiples used You can use rules-of-thumb to corroborate value determination. Those who invest in value determinations derived by more the stock market, for instance, immediately may be known but, alas, the underlying transactions are not. There typically isn’t traditional methods if you combine them become analytical in discussing earnings per with a thorough understanding of the share multiples, the basic “rule” for pricing available sufficient data to derive multiple, insufficient information regarding the terms business and its financial history, sound common stocks. Yet while using such a rule business judgment and common sense. Use or formula can be meaningful, without a of the sale being compared to, while such Rules-of-Thumb are assumed to apply to the common sense but you can and probably thorough financial analysis coupled with should call a credible business appraiser with some basic business judgment and common valuation of a “typical business.” Well, exactly what is “typical?” Each industry has its own any questions you may have about rules-of- sense, it can be dangerous as well. thumb or other valuation matters. This will Think about it. Suppose an organization unique considerations and each business has that much more. The salient point is to help you determine an appropriate means of compiles statistics on 100 insurance agencies. estimating value The organization then averages all of the proceed with caution. Rules-of-thumb are not individual selling prices and calculates that always based on a sound foundation. They are generalities and must be considered as such the average agency sold for 100% of one year’s argemoor LARGEMOOR in their use and application. While they can L gross revenue. This creates a rule of thumb for Film &Digital FILM & DIGITAL valuing insurance agencies. The problem is help you determine a general value range, it Services SERVICES that one agency may have sold for twice one may not be appropriate to rely on them as an year’s gross while another may have sold for authoritative means of valuing a company. Providing Expert Legal Photographic half of one year’s gross. Thus, rule-of-thumb They can be very useful in at least assessing Services Since 1946 formulas may be accurate for businesses the reasonableness of valuations based on O Video Tape Depositions – Day in the Life whose performances are about average, but other reasoned methods. O Accident Scene Photography other businesses will vary. To apply a rule of Let’s see another illustration of how O thumb to a business that varies significantly relying on a rule-of-thumb can cause us Slip & Fall – Personal Injury Photography from the average is not appropriate. business appraisers to have a bruised thumb. O Courtroom Exhibits & Displays Let’s take this one step further and analyze Take two car washes in Camden County both O Prints from X-Rays two insurance agencies that provide personal doing $1 million in annual sales. Assume the O On-Site Executive Portraits and commercial policies and assume that the car wash industry’s rule-of-thumb for a full O Prints from all Digital Media rule-of-thumb is as follows: Value = 100% of service operation (versus a coin operated one) O Free Local Pick-Up & Delivery annual revenue. In this simplified example, has been said to be worth one times annual this rule would provide the same value for gross sales. Such suggests both enterprises 856.963.3264 FAX 856.963.2486 both agencies even though their net incomes are worth $1 million. In fact, a seasoned email:[email protected] are substantially different. business appraiser might review these two www.largemoor.com But consider some other factors that might separate operations and determine that the affect value: first one is actually worth twice the second. LARGEMOOR 1. Agency A has 125 clients, while Agency How can this be—two establishments in the FILM & DIGITAL B has 75. same industry, in the same county, with the SERVICES Page 8 THE BARRISTER OCTOBER 2012 Revised FINRA Rule 2111: “Suitability Plus” By William Tobolsky
FINRA Rule 2111 and its predecessors have long required particular’s “investment profile.” The new rule states a number securities brokers to make only “suitable” recommendations to their of factors that brokers should know before formulating a customers. This requirement is based on the fundamental principle of recommendation tailored to a specific customer’s needs. “fair dealing” and has been broadening over the years in response to • Institutional customers may be excluded from suitability case law and interpretive statements from FINRA. Members and firms requirements if they provide the broker with a signed document may not disclaim their responsibilities under this Rule. Effective July 9, “affirmatively indicating that it is exercising independent 2012, FINRA imposed a revised and enhanced Rule 2111, governing judgment.” Suitability. • Reasonable Amount As noted in FINRA Supplemental Materials .05, “Rule 2111 is The amount recommended must be appropriate for the customer’s composed of three main obligations: reasonable-basis suitability, overall portfolio, particularly when the broker has discretionary customer-specific suitability, and quantitative suitability.” These may trading control over the account. be summarized by the four following requirements: • All documented by more paperwork • Reasonable Basis to Recommend the Product Is there ever a new rule without more paperwork? The broker The days of the “C student” country club IR are passing quickly. must document compliance with all of these measures by legible, An IR can no longer recommend a product based only on word contemporaneous and detailed notes that go into the file. Get on the street or a hot tip from poker buddies. The broker must more data from existing clients. Upgrade your intake forms to understand the products and strategies she is recommending and elicit more customer information, especially the information be able to articulate the basis of her recommendation. This should relevant to the factors specified in the new Rule. Brokers should be particularly true for derivative products. Even investment bank be prepared to use their notes to defend your position in a FINRA guaranteed notes may fail. arbitration. Customers: keep your own notes. They may prove to The new Rule broadens the scope of recommendations and be the winning evidence if you make a claim. advice covered by the suitability requirement. An “explicit Supplemental material .03 to the Rule excludes certain recommendation to hold” as well as to buy or sell, is now recommended strategies, specifically 1) advice “general financial considered advice which must be suitable. and investment information”; 2) “descriptive information about an • Reasonable for the Customer’s Investment Profile employer-sponsored retirement or benefit plan; 3) “asset allocation What makes sense for a retired 80 year old may be too cautious Continued on next Page for a 40 year old eye surgeon. The recommendation must fit the Abo and Company, LLC CERTIFIED PUBLIC ACCOUNTANTS / LITIGATION & FORENSIC CONSULTANTS We are proud to be a Partner in Progress of the Camden County Bar Association. Let us know if you: UÊÊ ii`ÊÕÀÊÌiV V>ÊiÝ«iÀiViÊ>`Ê«ÀviÃÃ>Ê Ê *ÀiÃiÌ>ÌÊÌÊÌ iÊ >Ì>Ê «ÞiÌÊ Ê LÊ>`Ê «>Þ½ÃÊ“Inventory of Personal Ã} ÌÊvÀÊ«ÀiVÌÃÊÊ>VVÕÌ}]ÊÌ>Ý]Ê >ÜÞiÀÃÊÃÃV ÊÊ“Law Firm Collections Assets—Financial and Estate Planner” Û>Õ>Ì]ÊÛiÃÌ}>ÌÛiÊÀÊÌ}>ÌÊÃÕ««ÀÌÆ and Receivable Tips” Ê LÊ>`Ê «>Þ½ÃÊnnÊ«ÌÊ“Attorney Trust UÊÊ ii`Ê i«ÊÜÌ ÊiÃÌ>ÌiÊÀÊÌÀÕÃÌÊÌ>ÝÊÀiÌÕÀÃÆ Ê >LÀÊEÊ «ÞiÌÊ>ÜÊ-iVÌÊvÊÌ iÊ Accounting Checklist” UÊÊ7Õ`ÊiÊÕÃÊÌÊVv`iÌ>ÞÊ>ÃÃiÃÃÊÞÕÀÊÜÊ iÜÊiÀÃiÞÊ >À½ÃÊÃi>ÀÊ“Use of Experts in Ê L½ÃÊÌÃÌÊÌÊ Ã`iÀÊÊÌ iÊ ÕÞ-iÊ «iÀÃ>ÊÌ>ÝÊÃÌÕ>ÌÊÀÊÀÕÊÕÌ«iÊÃVi>ÀÊ Employment Cases” 6>Õ>ÌÊ>`ÊÀÕ> Ì>ÝÊ«ÀiVÌÃÊvÀÊÞÕÆ Ê / iÊ >Ì>Ê ÕÃiÃÃÊÃÌÌÕÌiÊ ®Ê Ê iÊÊ À«À>ÌÊÛÃ°Ê ÊÀÊ UÊÊ>ÛiÊ>ÊV«>ÞÊÀÊ`Û`Õ>ÊÞÕ½`ÊiÊÕÃÊÌÊ >ÌÊÌ iÀÊÌÜÊ`>ÞÃÊvÊÃi>ÀÃÊiÌÌi`Ê - À«À>Ì iiÌÊÜÌ Æ “Accounting 101 For Attorneys” Ê ,-ÊÕ`ÌÊ/iV µÕiÊÕ`iÊÊÌÌÀiÞÃÊ UÊÊ7Õ`ÊiÊ>ÞÊvÊÌ iÊÕiÀÕÃÊ>ÀÌViÃÊ>`Ê Ê 9 ]Ê ]Ê >`iÊ ÕÌÞÊ>`Ê iÃÌiÀÊ >`Ê>ÜÊÀà >`ÕÌÃÊvÊ«>ÀÌVÕ>ÀÊÌiÀiÃÌÊÌÊ>ÜÞiÀÃÊ>`Ê ÕÌÞÊ*Ê >ÀÊÃi>ÀÃÊÊ“Buy-Sell Ê iVÃÌÊvÀÊÌ ÃiÊÃiÀÛ}Ê>ÃÊ ÝiVÕÌÀà >ÜÊvÀÃÊ>ÌÊLÊ>`Ê «>Þ]ÊVÕ`}\ Agreements”ÊVÕ`iÃÊÕÀÊ£ÓÓÊ«ÌÊ V iVÃÌÊÊLÕÞÃiî Ê ->«iÊ,iVV>ÌÊvÊViÊ/>ÝÊ,iÌÕÀÊ Ê *ÀiÃiÌ>ÌÊiÌÌi`Ê“The Financial Side ÜÌ ÊVÌÕ>Ê Ã«Ã>LiÊVi of a Law Practice—What They Forgot To Tell Ê / iÊ- >À«iÀÊ>ÜÞiÀ½ÃÊÃi>ÀÊiÌÌi`Ê You in Law School” “Practical Strategies to Improve Your Law Firm’s Bottom Line” 4O LEARN MORE OR TO RECEIVE ANY OF THE ABOVE PLEASE CONTACT BY PHONE FAX OR E MAIL Martin H. Abo, CPA/ABV/CVA/CFF ([email protected]) Patrick Sharkey, CPA/MST/CSEP ([email protected]) New Jersey Pennsylvania &ELLOWSHIP