Issues

Policies and Politics that affect the small firm.

From Looting to Initiative

The State Bar has a reserve fund for emergencies or unusual expenses which is currently about $5.8 million -- a bare minimum for an organization the size of the State Bar. Last year there was a concerted effort by the three largest legal services organizations to have the Board award them $1,350,000.00 (through TEAJF) of this Reserve. At the April 16, 2004, meeting of the State Bar Board of Directors, this move was defeated. Then the defeat was undermined.
    These legal services organizations are the same groups which acted as a consortium and proposed and lobbied for the $65
Pro Bono Tax which was appended to the State Bar Act of 2003.
    
Here is a Council member's response to this attempt. This was submitted to the Directors at its meeting on April 16, 2004.
    At the June 2004 Board of Directors meeting, $300,000 in "one-time" benefits was awarded to these organizations. (This includes a grant which allowed the legal services entities to negotiate a deal with Lexis on-line research for an astonishing cost of $31 per legal aid lawyer.) In the budget just adopted, that "one-time" grant was continued as the "Legal Services Initiative" and was increased. The cost now, including a $50,000 which was moved to the Access to Justice Budget, is $440,000.

The Pro Bono Tax

Mandatory Pro Bono has come in the Back Door.
Every year for the last decade or so -- at least since the sunset review for the State Bar in the early nineties, we have been assured that no candidate for state bar office was advocating mandatory pro bono. For the last few of those years, just before the 2003 legislative session when the State Bar Act came up for renewal, we have been told that mandatory pro bono was on no one's agenda and that we as lawyers should not tempt the legislature by voicing systematic and principled opposition to mandatory pro bono. Those who advised us were wrong. The story is laid out
here.

IOLTA

TEAJF won; clients and lawyers lost.
Robin Hood has come to Constitutional law. On March 26, 2003, the Supreme Court of the United States took the position that interest on your clients' money is justifiably taken without compensation. This decision effectively undercuts the decisions of the Court of Appeals for the Fifth Circuit and the Supreme Court's prior decision in the Texas Case. The decision can be found
here. The webmaster's commentary is here.

UPL - Unauthorized Practice of Law

A lot of effort and debate has gone into attempting to meet the challenge of "multi-disciplinary practice" and the de facto practice of law by banks, accountants, brokers and others. This is apparently going to come to nothing. This story is here.

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