Posted in General

Proposed Amendment to Fed. R. Civ. P. 30(b)(6) Rankles Defense Bar

A proposed amendment to Fed. R. Civ. P. 30(b)(6) is drawing fire from the defense bar and their clients. Here is the proposed amendment: FRCP 30(b)(6).

Here is the Lawyers for Civil Justice’s comment: Lawyers for Civil Justice Comment.

Lawyers for Civil Justice is a national coalition of corporations, law firms and defense trial lawyer organizations. Based on their comments, it’s a group that thinks discovery is about gamesmanship and keep-away instead of exchanging relevant information.

The current problem with Rule 30(b)(6) in practice is companies and their lawyers often do not prepare the 30(b)(6) witness for the deposition. This results in the questioner getting a lot of “I don’t know” answers.

The witness does not know because he wasn’t adequately prepared or the plaintiff didn’t give fair notice of the topic. The corporation does know. The 30(b)(6) witnesses’ job is to provide the information the company knows, regardless of whether the witness knew it.

And it doesn’t have to be that hard. There have been times when defending 30(b)(6) depositions where I ask for a recess and tell the witness the answer so they can say it on the record. What did the plaintiff lawyer say? Thank you.

Instead of preparing or going and finding out, many defense lawyers stand pat on “I don’t know.” In my opinion, that’s a mistake that could rise to the level of malpractice if “I don’t know” gets broken off in the company at trial. If the topic was fairly noticed, the defense lawyer might should interject that we’ll work on getting an answer for you.

Something is needed to address the problem. The proposed amendment takes a crack at it.

The LCJ comment is kind of stupid. It asserts that the amendment allows plaintiff lawyers to have a say in the identity of 30(b)(6) designees. It doesn’t.

It argues that what is really needed is a 10 topic limit to 30(b)(6) depositions. It’s not.

I list a lot of 30(b)(6) topics to help the company prepare witnesses for the deposition. I can give you 5 topics. But good luck preparing your witnesses for my questions. Limiting to 10 topics will make the problem of unprepared witnesses worse.

I can’t help but think that what these people really want is to abolish Rule 30(b)(6). Make it impossible to pin a company down.

A lawsuit is supposed to be about resolving a dispute between the parties. But many lawyers–particularly East Coast big firm lawyers–think litigation is a game of keep-away chess.

They don’t want to cooperate in discovery because, how can they win the case in discovery by turning over the evidence? Much better to resist providing information that should be included in mandatory disclosures.

Better yet, object to every single interrogatory and request for production. Yes, objecting to the request for production asking for your trial exhibits looks stupid and screams insecurity. But that’s how many lawyers under the age of 60 were trained. Tell them it’s stupid and they look at you like you said the Earth is flat.

It doesn’t matter if the amendment is enacted or not. The gamesmanship in litigation has become too ingrained in the profession to stop. And it slowly gets worse.

It doesn’t help that at least one side’s attorneys have a financial interest in gamesmanship, since it increases attorney fees.

Twitter
Facebook
Email
LinkedIn

Industry Survey: Technology Threatens Legal Industry — Mr. Sunshine Reflects

Altman Weil recently released: 2018 Law Firms in Transition, an Altman Weil Flash Survey.

From the introduction, comparing today to 2009 during the Great Recession:

The threat in 2018 is broader and more nuanced, arising primarily from the sweeping force of technology evolution over the last two decades that has resulted in the commoditization and commercialization of more and more legal services….

Most law firms continue to plan for short-term incremental improvements in performance, while deferring or slow-walking more forward-looking actions to address long-term, systemic threats.

That last line reminded me of many defense lawyers during the tort reform era of the early 2000’s. They were swamped with work and could not imagine ever not being busy.

At the time, I was a defense lawyer transitioning into a plaintiff practice (talk about rotten timing). Many fellow defense lawyers told me they would always be busy because plaintiff lawyers would always file cases. I know how crazy that sounds today, but it was a common belief in 2005.

Plaintiff lawyers certainly knew better. On the defense side, there were many lawyers drawing great paychecks sitting in mass tort depositions all day who never thought about workload next month, much less in a few years. Many of those legal eagles no longer practice law or have long since left the state for easier work.

Of the defense lawyers who did think about the future, maybe 20% had an inkling what was coming. The ones who did have done a better job adjusting to the new reality.

Divorce and criminal lawyers said less personal injury and consumer fraud litigation would not impact them because it wasn’t their practice area. Now they compete with former plaintiff and defense lawyers for that work.

The Altman survey is an interesting read. Among its conclusions:

  • there is an oversupply of lawyers,
  • billable hour demand is down,
  • there are still too many lawyers in many law firms,
  • more work is going in-house [to lawyers making less money but with a better quality of life],
  • work is being redefined or eliminated through the application of technology, and
  • the legal market will not be immune to the staggering changes wrought by modern tech.

The suggestions are bad news for big firm lawyers. They include weeding out more lawyers.

Final thoughts from Mr. Sunshine:

It’s sucked for people like me who graduated from law school in 1993. Ten years earlier, and we would have made a killing in the 90’s. Ten years later, and we wouldn’t had to so drastically adjust our professional expectations.On top of that, our retirement accounts have been halved. Twice.

We had to go through the period where no one knew how to use email yet and asshole emails were flying back and forth all day. We saw total idiots make millions. We saw great lawyers have breakdowns because their practices dried up. Many of those we started our careers with have left the state for greener pastures.

Of course, it hasn’t been all bad. I haven’t heard of a coke head lawyer in years. They can’t afford it anymore and have to stick to booze.

The worst part is that it used to be fun. Now, it’s just….not. Ask any lawyer–plaintiff or defense–if they are having fun. The answer will be ‘no.’ If you weren’t having fun practicing law in 2000, then you didn’t need to be a lawyer. Because it was a blast.

Twitter
Facebook
Email
LinkedIn

The Wonderful World of Lawyer Emails

I enjoy reading articles about lawyer email etiquette like this one by Stefan Savic on Above the Law. It always reminds me of how ill equipped I and many other lawyers were when we began using email in the mid-1990’s. Because trust me, if you think lawyers need lessons in email etiquette now, you have no idea.

I first used email in my practice in 1995. I was young (28), inexperienced (2 yrs), and overconfident (was it even possible for me to lose a case?). Thankfully, my firm was an early adopter and I learned many of the dangers of a quick trigger with interoffice emails before I began firing them off to opposing counsel.

Savic’s main suggestions for email are:

  • assume the whole world will see it
  • don’t use humor
  • don’t criticize or mock people
  • proofread
  • no profanity.

All good suggestions. Most of these are second nature for me. But I still struggle with not using humor.

Savic notes that written jokes can come off as awkward or insulting. I think it’s hard for people to know that a statement is a joke without hearing your tone of voice or seeing your face. There is also something about knowing the person.

Another theory is that most people don’t have a sense of humor and only laugh when they are cued by others laughing. Yet another theory is that I’m just not that funny. But that’s bullshit (see above) not true.

I do find myself writing humorous emails to opposing counsel, cracking myself up and then deleting the email without sending it. I mentioned this to a colleague the other day and he said he does the same thing.

My biggest suggestion for email is keep it short–at least if you want the recipient to read it. Many people will be reading it on their phone. While driving down the road. When I see a long email and I am out of the office, I often do not read it until I am at a computer. I suspect others are the same way.

So while you are doing that proofreading, edit the email to make it shorter. An added benefit is that short emails have less room to antagonize people as long as you also keep out insults and profanity.

And what if you receive an insulting or attacking email? Don’t respond in kind. Ignore the insults and attacks. I make this suggestion for two reasons:

  1. the fact that the other lawyer is not acting like a professional is not an excuse for you to not act like a professional (I’m pretty sure judges see it my way on this); and
  2. when you continue to act professionally, the other lawyer usually comes around and starts acting right.

I think I’m on to something with suggestion 2. If you treat lawyers the way you want to be treated even when you feel like they aren’t treating you that way–they will usually change their attitude. Before you know it, you will be friends.

Twitter
Facebook
Email
LinkedIn

Fewer Companies Results in Shrinking Legal Market

I recently came across this Above the Law post by Michael McDonald about the shrinking legal market.

McDonald points out that there are 35% (3,500) fewer publicly traded companies in the U.S. than there were in 1997. This hurts the legal economy because there are fewer potential clients.

All but the mega-firms suffer:

The result is that it’s probably harder today to be a mid-sized or moderately large law firm than it used to be. And that trend is unlikely to reverse. Given that trend, it’s also likely that the legal industry will become more bifurcated over time – a hundred or so very large law firms and many small law firms, with few midsized firms in the middle. That structure has important implications for the profitability of a legal career in the future.

I strongly suspect that this trend has hurt Mississippi law firms. It’s yet another factor (of many) that makes it increasingly difficult to sustain a law firm in the state.

Twitter
Facebook
Email
LinkedIn

Fewer Companies Results in Shrinking Legal Market

I recently came across this Above the Law post by Michael McDonald about the shrinking legal market.

McDonald points out that there are 35% (3,500) fewer publicly traded companies in the U.S. than there were in 1997. This hurts the legal economy because there are fewer potential clients.

All but the mega-firms suffer:

The result is that it’s probably harder today to be a mid-sized or moderately large law firm than it used to be. And that trend is unlikely to reverse. Given that trend, it’s also likely that the legal industry will become more bifurcated over time – a hundred or so very large law firms and many small law firms, with few midsized firms in the middle. That structure has important implications for the profitability of a legal career in the future.

I strongly suspect that this trend has hurt Mississippi law firms. It’s yet another factor (of many) that makes it increasingly difficult to sustain a law firm in the state.

Twitter
Facebook
Email
LinkedIn

Fewer Companies Results in Shrinking Legal Market

I recently came across this Above the Law post by Michael McDonald about the shrinking legal market.

McDonald points out that there are 35% (3,500) fewer publicly traded companies in the U.S. than there were in 1997. This hurts the legal economy because there are fewer potential clients.

All but the mega-firms suffer:

The result is that it’s probably harder today to be a mid-sized or moderately large law firm than it used to be. And that trend is unlikely to reverse. Given that trend, it’s also likely that the legal industry will become more bifurcated over time – a hundred or so very large law firms and many small law firms, with few midsized firms in the middle. That structure has important implications for the profitability of a legal career in the future.

I strongly suspect that this trend has hurt Mississippi law firms. It’s yet another factor (of many) that makes it increasingly difficult to sustain a law firm in the state.

Twitter
Facebook
Email
LinkedIn

Fewer Companies Results in Shrinking Legal Market

I recently came across this Above the Law post by Michael McDonald about the shrinking legal market.

McDonald points out that there are 35% (3,500) fewer publicly traded companies in the U.S. than there were in 1997. This hurts the legal economy because there are fewer potential clients.

All but the mega-firms suffer:

The result is that it’s probably harder today to be a mid-sized or moderately large law firm than it used to be. And that trend is unlikely to reverse. Given that trend, it’s also likely that the legal industry will become more bifurcated over time – a hundred or so very large law firms and many small law firms, with few midsized firms in the middle. That structure has important implications for the profitability of a legal career in the future.

I strongly suspect that this trend has hurt Mississippi law firms. It’s yet another factor (of many) that makes it increasingly difficult to sustain a law firm in the state.

Twitter
Facebook
Email
LinkedIn

Nursing Home Arbitration Banned: What’s the Impact for Mississippi Litigation?

The New York Times announced last night that the federal government is banning arbitration clauses in nursing homes that receive Medicare and Medicaid funding, which is pretty much all of them.

It’s nice to see that the nursing home industry isn’t happy, since they are lying about arbitration:

The nursing home industry has said that arbitration offers a less costly alternative to court. Allowing more lawsuits, the industry has said, could drive up costs and force some homes to close.

It’s a lie. Arbitration isn’t less costly than court. It’s more costly. The parties don’t pay the judge in court. In arbitration they do. Otherwise, the costs are the same. How are the parties saving money forking over $15,000 or $20,000 to the arbitrator?

Why can’t they just tell the truth? “We like arbitration because it scares off some lawyers and arbitrators aren’t going to light us up like a jury might. Some arbitrators might even shade it in our favor to try to get some repeat business.” That would be a crappy thing to say, but people hate getting lied to more.

This is a great first step to the eventual ban of pre-dispute arbitration clauses in all consumer contracts. When it will be really good is when banks, car dealerships, credit card companies and the like can’t escape accountability with arbitration clauses buried in terms of service or contracts that no one reads and has no choice but to sign even if they do. That day is coming.

As for nursing home litigation in Mississippi, I don’t see it changing much in the current environment. Nursing home cases don’t work well for plaintiffs in Mississippi because of:

  1. the $500,000 non-economic damages cap;
  2. nursing home cases are expensive and labor intensive–much more so than a med-mal case;
  3. most nursing homes carry little or no insurance as a defense strategy; and
  4. medicare and medicaid liens eat up a lot of any recovery.

Add all that together and you can’t get much of a recovery for a client. The biggest problem for plaintiffs in nursing home cases in Mississippi is the math. Plaintiff lawyers look at it and think:

  • if we win or settle I will get a nice fee, but after the fee, expenses and liens, the client will get little money–a fraction of the recovery. Is the client going to be happy? Probably not. I think I’ll pass.

Plaintiff lawyers have to worry about unhappy clients in a different way than defense lawyers. Unhappy defense clients switch lawyers on the next case. Unhappy plaintiff clients file bar complaints and fish around for a lawyer to file a legal malpractice case.

The Mississippi Supreme Court already wasn’t a fan of arbitration clauses in nursing home contracts anyway. Half the time they weren’t enforceable because the nursing home would size the family up and get someone to sign who they could sue to collect the bill after the patient died instead of the actual patient (who was sick but not incompetent).

For things to get really better we’d need to see the caps thrown out or raised to at least $1 million and a law passed requiring nursing homes to carry a decent sized amount of insurance. It would also help if Medicare and Medicaid would reduce their liens more.

At one time nursing home cases were my biggest practice area. At the moment the only case I have is one where I am local counsel for an out of state firm. While I am happy to see this change in the law, it’s not enough to make me start marketing for nursing home cases again.

Hopefully, I’m wrong. But another lawyer who I worked with a lot on nursing home cases forwarded me news of the law’s passage in an email that said: “Too late but good.” So I don’t think my reaction is off base.

Twitter
Facebook
Email
LinkedIn

Tupelo Bolsters Reputation For Dumb Criminals

The NE Daily Journal reports that the plan of three Tupelo men to rob and kidnap Circuit Judge Paul Funderburk was foiled before it got out of the Huddle House:

Three Lee County men were arrested Monday after law enforcement uncovered a plot to kidnap Circuit Court Judge Paul Funderburk.

According to Lee County Sheriff Jim Johnson, a concerned citizen overheard the men talking at a Tupelo restaurant Sunday.

“During the conversation, they were talking about robbing a home owned by Judge Funderburk,” Johnson said. “During the conversation, they said if the judge was at home, they would kidnap him as well.

“The concerned citizen notified authorities. We were able to get surveillance video from the restaurant and interviewed folks to determine the information was credible.”

The quick investigation ended when two suspects were arrested at a local motel. The third man was arrested at a Tupelo residence.

My Take:

Cobra Kai dojo instructor James Dutschke thinks those guys are stupid.

How could that plan go wrong? From planning the heist in a restaurant to targeting a public servant, these guys were not on their criminal game.

Home invasions in Mississippi often don’t go well for the invaders. There seems to be a big home field advantage for the homeowner, who typically comes out blasting and is a better shot than a dope fiend.

I’m going to go out on a limb and predict that if they had tried this and Judge Funderburk was home, they would not have kidnapped him. A more likely scenario: a couple of dead bad guys with the third “getting away” for about, oh, half an hour.

This may come as news to the criminal element, but most judges who send people to prison take personal security seriously. It’s not going to be much different that trying to rob a cop. You probably have a better odds of pulling off the heist if you just stick up the restaurant you are planning this in.

Here is what I predict these guys will hear a lot of as they adjust to life behind bars: “man, you guys sure are dumb.”

Twitter
Facebook
Email
LinkedIn

The Problem of the Over-involved Client

Judge Primeaux had this post last week titled “What You Get to Decide as Attorney.” The post examined who gets to decide what in litigation: the lawyer, or the client.

This is an issue for all lawyers, but particularly defense lawyers, as Anderson pointed out in a comment:

This can get particularly annoying when the client is a company that employs its own lawyers (or outside counsel) to ride herd on one’s handling of a case. Lawyers from out of state whose name won’t be on the pleadings can get downright cocky about what a Rambo one ought to be in a court they’ll never set foot in.

Bingo. Here’s a story.

A decade or so ago I was trying a defense case with several other lawyers. Riding herd over us was an in-house attorney from New York. Apparently, they practice law differently in New York. Professionalism is not in vogue.

The in-house lawyer insisted that I ‘go after’ plaintiff’s counsel by personally attacking him. I refused. He got mad. It got heated. I was unwilling to, as Judge Primeaux states, trade my reputation for a fee.

In the end, we won the trial. The in-house lawyer even complemented my cross examinations–even though it wasn’t how they do it in New York.

So did that company ever hire me again? No, they didn’t. Coincidence? Who knows.

Plaintiff lawyers are quick to criticize defense lawyers’ Rambo discovery tactics that–likely–are being driven by the client. “I would never represent a client who tries to tell me how to do my job,” they say. But that’s much easier for a plaintiff lawyer to say who works on one-off cases where the clients almost never repeat.

But the analysis on the defense side can me much tougher:

  • What about for a defense lawyer who does a lot of work for the client?
  • What if the client represents a big chunk of the firm’s business?
  • What if several lawyers and even more support staff basically work entirely for that one client?
  • What if refusing to do what that client says may jeopardize the client keeping the business with the firm?
  • What if losing the client would lead the firm to having to lay-off several associates and support staff?
  • What if families who are counting on the lawyer maintaining a book of business will suffer if the firm loses the client?

How do you weigh it then? It’s a tough decision no matter what.

This is another reason why attorneys should be less inclined to criticize opposing counsel. We aren’t in opposing counsel’s shoes. We don’t know what’s going on. We don’t know that sometimes what the lawyer is doing is client driven–and the lawyer hates it.

And we certainly don’t know what it’s like to be in that lawyer’s shoes. So maybe we should ease up on the criticism of fellow attorneys. It’s a tough profession.

I’m not sure what the worst thing about litigation is: losing or (some) clients. A great client makes practicing a pleasure. A bad client can ruin your life for as long as the case is pending. Dealing with these issues is a tough balancing act. And I don’t have the solution.

Twitter
Facebook
Email
LinkedIn