Corporation or Private Law Firm??????

As a paralegal, the decision to go from a law firm to a corporate setting is one that should not be taken lightly. 

Up until a year ago I had been a paralegal in various law firms.  They were all different but in a way my work was always the same.  I was expected to know how to handle the files from the beginning of the case to the end and know when the attorney needed to handle certain things.  In July of 2007, I decided to try my luck at a corporate setting.  Not that I was unhappy where I was but it was time to try something different.  My experience has been exactly what I expected.  It is very different from being a law firm.

When you work in the legal department of a corporation your client is no longer the person that comes in from the outside.  Your clients are the people within the corporation.  The legal department becomes a “guard” to the various departments of the corporation.   

As the guard, our responsibility to the client is to advise when it is ok to start a new endeavor, develop a new business, develop the business in a new country.  We are there to make sure that whatever the various business units or various departments are attempting to accomplish is not going to get the corporation “in trouble.”  The work is very varied but not always of a legal nature.  I spend most of my days looking through lots of regulations regarding various issues.  So that the attorneys I work with can better counsel the “client.”

I no longer have the luxury of being an expert in one field.  When I worked in law firms I was the expert in personal injury, insurance defense, pharmaceutical regulations regarding distribution of gifts to physicians and sampling to healthcare practitioners.  All of these I learned at different times of my life.  When I did personal injury (defense or plaintiff) I was expected to do just that.   

Today my responsibilities vary.  Today I’m more of a business consultant, better yet, I assist the business consultant.  My job is to know enough about each business unit or department and what they do.  Then figure out what regulations they are covered by and try to work with to keep the “in line.”

Although, it took me a while to get used to corporate culture I am now enjoying it more.  It has been a year and a few months and I can say that I feel like I am “home.”

I hope this has helped you make the decision you need to make.  If not, please feel free to email me and I will certainly try to give you as much help as I can.  Although, ultimately, it is you decision to make.  I know money is important.  However, do not let that be the deciding factor.  It is true what “they” say. 

“DO WHAT YOU LOVE AND MONEY WILL COME”

Thank you for your support.

Blueprint for Regulatory Reform

The current financial regulatory system came about after the Great Depression as a response and reaction to the market stresses of the time. 

The events of the past few months have prompted the Fed to analyze our current regulatory system and propose changes, which would best fit the present situation of our financial system.

Currently the industry is regulated by separate federal agencies (SEC, CFTC, Federal Reserve, and Insurance) in addition to a state based supervision.  We currently bifurcate securities and futures and the insurance industry, (SEC and CFTC) and one of the largest financial services provider is regulated, almost entirely, at the state level (Insurance Commission). 

According to the Fed, the optimal scenario, a long term scenario (8 to 10 year plan) would be a three regulator system:  a regulatory focused on market stability across all the sectors (Market Stability Regulatory), a regulator focused on the safety and soundness of the institutions (Prudential Financial Regulator) and a regulator focused on the protection of the investor and/or consumer (Conduct of Business Regulator). 

The Fed’s regulatory reform proposals do not come without criticisms from the various regulators and the financial industry itself. 

Market Stability Regulator

The Market Stability Regulator should be responsible for the overall issues of the financial market stability through the implementation of monetary policy and the provisions of liquidity of the financial system.  Because the Federal Reserve’s primary role in the current regulatory framework is one of promoting macroeconomic stability, the Fed should be charged with this duty. 

The Fed in it’s new role as the Market Stability Regulator would be provided with broader powers to allow it to focus on the overall financial system. To accomplish this the Fed would be given the authority to “move” along the entire financial system to collect information from commercial banks, investment banks, insurance companies, hedge funds, commodity pool operators so that it could determine if the health of a particular industry and/or firm are a detriment to the overall financial stability.

As I pointed out above, there are various criticisms of this enhanced power of the Fed.  It appears that “In 1998, the Fed was taken by surprise at the exposure of some banks it supervised to Long Term Capital Management, the giant hedge fund.” Some of the critics state that if the Fed was not able to supervise an entity that was under its supervision, how is it going to be able to supervise additional entities? Also there is the issue of a diluted “checks and balances.”  If too much power is given to the fed to supervise and regulate the various industries and to take corrective action on its own, “the safety net of checks and balances could be lost.” Revamp Proposed for Financial Regulators: Financial News – Yahoo! Finance, March 31, 2008 by Jeannine Aversa, AP Economics Writer.

Lyle Gramley, a former Fed official also stated that his concern is more of one of the Fed being given enough of the corrective power in order to be able to accomplish the job.  Mr. Gramley stated that the plan is not clear as to what types of corrective powers the Fed would be given under this scenario.  “If you create a police force and don’t give them any weapons, it is going to be useless.”

Prudential Financial Regulator

The Prudential Financial Regulator would assume the role of the Office of the Comptroller of Currency (OCC)  which charters, regulates, and supervises all national banks. It also supervises the federal branches and agencies of foreign banks and The Office of Thrift Supervision (OTS) which acts as the primary regulator of all federal and many state-chartered thrift institutions, which include savings banks and savings and loan associations.  This long term plan would establish a new FIDI charter which would consolidate the national bank, the federal savings association and the federal credit union charters. 

Creation of a new FIDI Charter

This new Federal Insured Depository Institution charter would consolidate those of the national bank, federal savings association and the federal credit union.  In order for an institution to obtain deposit insurance it would have to obtain a FIDI charter.

Establish a new FII Charter

This new charter would be similar to the FIDI charter and it should apply to insurers offering retail products where some type of government guarantee is present.  The Prudential Financial Regulator would be responsible for the financial regulation of FIIs under the same structure as FIDI.

 Conduct of Business Regulator

This regulator would be charged with the business of protecting the customer or consumer.  It includes the supervision of disclosures, business practices and chartering and licensing of certain types of financial firms.  The type of platform is different than that of the Prudential Regulator in that it will provide the appropriate standards for firms to be able to enter the financial services industry and sell their products and services.

Chartering and licensing

This charter should be flexible enough to incorporate a wide range of financial firms:  broker-dealers, hedge funds, private equity funds, venture capital funds and mutual funds.

The Conduct of Business Regulator should have oversight in three broad categories:  disclosure, sales and marketing practices (including laws and regulations addressing unfair and deceptive practices) and anti-discrimination laws.

In the Fed’s proposal the Conduct of Business Regulator would take the place of the SEC and the CFTC (merging both regulators into one).

This last type of model seems to be the one that is going to have the most criticism.  It appears that the one group that does not oppose this merger (SEC and CFTC) is the hedge funds.  The reason being that they, the hedge funds, have been on the radar of the SEC for regulations and oversight purposes.  This merger, it appears, would take the “heat” off of them for a while.

The CFTC is a principal based model, which means that it sets the parameters under which the regulated bodies are to act.  In contrast, the SEC is a rules based model in which it sets the regulation and institutions must follow.

The Fed’s thinking in this proposal is that if the SEC streamlines its process for approving financial products it would make our financial industry more competitive in today’s global marketplace.

 

The views on this post are mine.  They do not reflect the views of my employer.

Networking

Learning to network and keeping in touch with old relationships has been one of the most important things in my career.  

As happy and content as you may be in your current position, in today’s job market you must learn to network. Connections and opportunities may and will present themselves when you least expect them.  In this short blog today I hope to give you some ideas you may not have thought of and which I hope you try.

On the Web: There are some great websites you can join.  However, before I give you the websites I want to ask you to be careful as to what information you post on the web.  First, remember that anyone will have access to the information posted and if you are using it in hopes of growing in your career the information posted must always be posted in a professional manner.  A professional would not post unprofessional pictures of him/herself.  You may look very cute/hot in that new sexy outfit, I am sure you do.  But is that what you want your new boss seeing?  Would you not rather that he/she see you in a more professional way?  Second, As I am sure you know, there are predators out there who will be more than happy to use whatever information you post on the web to use it against you.  Be it to steal your identity, harass or do whatever it is that slime normally does.  Having said all that, please do not let the slime of the world who have nothing better to do preclude you from using one of the best tools of our generation, the web.  Personally I use these websites in order to stay in touch with past employers, old college friends as well as to make new connections and hopefully friends.  If these connections can help me in my career that is a bonus.  

• LinkedIn   
• FaceBook

Besides the Web there are quite a few organizations I recommend you join.  A search on the web will most likely reveal the organizations in your area.  Here are some of the ones I am most familiar with:

•  National Federation of Paralegals Association
• Legal Assistants Association of New Jersey (“LAANJ”)

If you have other associations in your area that you would like to see listed on the blog, please send me an email and I will make sure to check them out and add them to the list. Being a member of these organizations can be a really good “perk.”  Most of them are well connected with the legal the community and, if you happen to be looking for a job, they are a great resource to have.  LAANJ  has a job bank and they will try to place their members whenever possible.

In addition to the professional organizations, your local Chamber of Commerce can be of great help as well.  

When it comes to networking Jeremy Thorn, a Leadership Coach and workshop facilitator, has a list of ten things you must learn and do in order to succeed which will likely bring you success:   

1. Be Brave – put yourself out there.
2. Make opportunities – go to the right places.
3. Be prepared – Set a goal.
4. Meet people you don’t know – When you go to a meeting or an event make it a point to meet people you do not know.  
5. Survey the land – Do you homework about the even you are about to attend.   Try to get a list of the attendees and read about them.
6. Make your first move.
7. Make a powerful introduction.
8. Ask who they are.  Let them talk about themselves and learn from them.
9. Disengage – Do not linger with the same contact all night.  Learn to make an exit.
10. Keep notes and follow-up – most people forget this part.  It is a small but very important part.  It allows people to keep you in mind.

Now, go out there and network.  Let me know how it works out.   

I have not forgotten

This was a busy summer for me.  I started working at a different company.  After many years or working at law firms, this summer I began working for the legal department of a financial corporation.  

It has taken me a while to get used to it and therefore I have not had the time to dedicate to my blog.  Now that I think I am more acclimated I will begin writing more and hopefully I will give you some new insight as to what it is like to work for a corporation vs. working for a law firm.  As if that wasn’t enough, my old computer decided to go into retirement.  I had to buy a new computer and get used to it.  I decided to get a MAC.    At first I wasn’t sure I liked it but now I’m loving it.  It’s actually really easy to use and I hope to spend lots of time on it letting you know how things are working out for me.  Please send me a note and let me know what it is you want to talk about or know more about.  I will try my best to get the information to you as soon as possible.  

I am back and this time I plan to update the blog at least once a week.  Thank you for your patience and I hope to hear from you soon.     

Paralegal Billing

For most of us, billing is a necessary evil.  I have worked with enough paralegals to know that if they could get rid of one task in their day to day work life, it would be billing.  However, I think that it does not have to be that bad. 

When training new paralegals in billing procedures, I use the same advice that was given to me by one of my mentors.  I hope it will help you better understand billing and make you more comfortable when faced with that blank timesheet. 

1. Keep accurate time;
2. What, whom and why???????

Keep Accurate Time

It is very important to keep accurate time.  We all fall into the trap, at times, to “cut” our own time. 

I remember when I started, I did not want to give the partners or my immediate attorney the impression that I did not know what I was doing.  Therefore, I felt it was better if I gave them the impression that I was completing my tasks faster than the paralegal down the hall.  It did not matter that the paralegal down the hall had more experience and had been handling the same type of cases for much longer than I.  The only thing that mattered to me was that I was faster.  I was working almost ten hour days and only billing for seven.  Eventually I burned out.  Some days I was so tired I could barely do my seven hours.

Today, I try to get accross to the paralegals in my training seminars that it does not matter how long it takes you to get the work done.  Ok….. yes, there are time when it does matter.  For example, if it takes you a full day to read a two paragraph letter.  Most of the time it does not matter how long it takes you to complete a task.  If the partner responsbile for the file does not want to bill client the total amount of hours that it took to complete the task, it is the partner’s responsibility to adjust the time and not bill the client.  Time often gets written off in law firms.  Most of the time it is no one’s fault.  It just happens.   Additionally, there are other benefits of keeping accurate time.  By keeping accurate time, the paralegal is assisting the firm in making staffing decisions.  Maybe the project is better suited for a team of paralegals instead of one paralegal.  By looking at the amount of time billed on a particular project, the attorney can make recommendations on staffing for the department and the firm can make budget decisions.  Further, by allowing the firm to see how much time you are billing and how much work you are doing, your chances of a good bonus and a good raise may increase.   

What, Whom and Why???????

What does this mean???? Sometimes billing descriptions can be so frustrating.  I remember sitting in front of a blank timesheet and not having a clue as to what to say?  Until that one mentor I mentioned above said those three words to me. 

When you are billing you are basically telling a story.  You are telling the client, the person that is paying for the bill, that you did something you think is worth “X” amount of dollars and you expect to be paid for it.  But that is all that the client has to go on.  Now, if you were faced with a billing entry in the amount of $500.00 which only said “review documents.”  Would you pay for that?  If I were going to pay that bill I would want to know a little more about what had been done.  If you answer the three questions, you will be providing the client with all the information he/she needs. 

What?  What did you do?  Whom?  To whom did you write the letter, make the phone call?  Prepare the memo?  Why? Why did you take the time to do that?  Is discovery ending?  Are you trying to find out more information in order to answer discovery?  Is there a trial date?  Did your adversary ask you for more information? 

Remember that the more time you spend on a task the more specific you need to be.  Think of it in terms of money.  The client wants to see content.  Most of the time they will not contest the bill if they know what they are paying for. 

Paralegals and Pro Bono Work

Pro Bono work has been a part of the legal profession for as long as I have been a paralegal.  Attorneys on their own and through various organizations have been providing free legal services to members of the community who would otherwise not be able to afford legal representation.   The ABA under Rule 6.1 of their Model Rules of Professional Conduct set forth an ethical duty for providing these types of services.  Additionally, the ABA, under their Model Guidelines for the Utilization of Legal Assistant Services states that paralegals should be allowed to assist the attorneys in the representation of these clients.

We are all aware that the need for free legal services is growing by leaps and bounds.  With the state of the economy today, it is bound to grow even faster.  “The ABA Consortium on Legal Services and the Public, in its 1994 Legal Needs Report, states that 79% of those in low income households do not obtain the services of lawyer to handle their legal problems. ”  See How to Utilize Legal Assistants in Pro Bono Public Programs by The American Bar Association Standing Committee on Paralegals, May 1999.  Back then, and still today, the ABA agrees that the utilization of paralegals in the representation of these cases can “help extend the availability of these services.” 

Programs for the indigent are run on very tight budgets.  The paralegal’s billable rate is lower that that of the attorney.  However, the paralegal can perform many of the tasks that are presently being handled by an attorney with a much higher billable rate.  Economically speaking, it makes sense to allow paralegals to handle much of the case load.  One can hire two paralegals for the price of one attorney.  This model leaves the attorney free to represent the client in legal matters not suited for the paralegal, and saves on monetary resources for the organization to be able to represent additional clients.

What can the paralegals do?

“As defined by the ABA, a legal assistant or paralegal is a person, qualified by education, training or work experience who is employed or retained by a lawyer, law office, corporation , governmental agency or other entity and who performs specifically delegated substantive legal work for which a lawyer is responsible.” Ibid

In accordance with the above definition provided by the ABA, the paralegal can perform a number of tasks under the guidance of an attorney:  client intakes which can be time consuming can be handled by a volunteer paralegal, referrals to specific state agencies; collection and dissemination of various discovery issues (depending on the type of case); also depending on the type of cases some paralegals can be trained to provide direct client advocacy such as CASA.

If your firm does not have a pro bono program.  I suggest you get in contact with your supervisor and be the first to develop such a program.  They can get in touch with their local bar associations and develop a program.  However, if you are not employed at a firm that supports volunteering, there are various organizations you can contact and become involved with.  Most paralegal organizations can direct you to a program in your area:  The National Association of Legal Assistants and The National Federation of Paralegal Associations.  You can also contact The ABA Center for Pro Bono, their phone number is (312) 988-5759.

Volunteering is a way to give back to your community and, on a more selfish note, it is a way to get involved in different areas of the law which will help you figure out what areas of the practice are best suited for you.  In my opinion this is a win/win situation.

Are we Ethical?

For as long as I can remember there have always been “lawyer jokes.”  However, it appears that when lawyers can do something to change the way they are perceived by the public they choose to do nothing instead.   On May 3, 2007, Cindy Lopez, a New Jersey paralegal, and founder of NJParalegal published an article in the New Jersey Law Journal regarding paralegal ethics and ethics training A Conspicuous Hole in Ethics Training.

In 1969, the ABA published what is known as the the Model Code of Professional Responsibility.  Since then the Code has been revised may times.  Thirty amendments have been made to the Model Rules and I am sure more will follow.  Because paralegals work under the supervision of the attorneys, they are bound by the same ABA Code as the attorneys.  All the ethics regulations that apply to the lawyer also apply to the paralegals.  Therefore, make sure you are fully familiar with the Code.

NALA “The National Association of Legal Assistants” developed the Code of Ethics and Professional Conduct to guide the conduct of its members.  The Code was revised on various occasions and the last revision occurred in 1995 as it now stands. NFPA“The National Federation of Paralegal Associations” first adopted its Affirmation of Responsibility.  The Affirmation was revised in 1981.  NFPA finally adopted a completely new Code in 1993.  

In her article with the New Jersey Law Journal, Cindy Lopez states that in a poll taken on January 3, 2007, by NJParalegal 80% of the paralegals that responded to the poll had not received training by their attorney on ethics rules.  It is sad to say, but when a paralegal works in such closeness to the clients and the attorney, wouldn’t it benefit both to have some type of ethics training?  Do we not see the writing on the wall?

As a veteran paralegal, I am not surprised.  I have personally witnessed, on various occasions, some “new” paralegals not disclosing their title when on the telephone, giving out legal advice in response to a question. 

Some large firms in New Jersey briefly speak with new hires and ask them to sign a confidentiality agreement, smaller firms, however, rarely do anything stating instead that “they do not specifically address the issue; it has only caused a problem occasionally, and the behavior was corrected when needed.”  A Conspicuous Hole in Ethics Training.

Blog Update

Look for our upcoming essay on paralegal ethics. 

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