Today's Legal Market Demands Broad Business Solutions

*Story Originally Posted in the American Bar Association's Law Trends and News, Fall 2009, Vol. 6, No. 1.

Today’s legal market demands a broad range of business solutions lawyers can provide their clients. A strategic communications plan can prove to be an extremely helpful tool law firms can provide their clients. For example, in today’s 24/7 media culture, companies lack access to and control over the media who cover their industry and to the people that talk about them online.

In addition, businesses often find themselves navigating a complex environment that requires dealing simultaneously with litigation, governmental and regulatory actions, media scrutiny, and public perception. Oftentimes business strategy demands a multidisciplinary approach of legal action, public relations, and government relations. Knowing where these issues converge can help protect your reputation and enhance your position in the marketplace.

For example, new court rules were recently unveiled in Michigan directing jurors not to Twitter about the case before them or to turn to the Internet for information beyond that which was presented to them in the court. Social media is becoming more than a tool for us to use to stay in touch with friends: it is becoming a new area to look out for our clients' interests and/or a new medium to promote our practice.

Also, in just seven months, Congress has passed a number of key bills that have been enacted by the president, including the economic stimulus package, expansion of SCHIP, Pentagon acquisition reforms, and other key reforms. Congress is in the midst of tackling a number of difficult issues, including energy and climate legislation, health care reform, FY 2010 appropriations, the reauthorization of the transportation bill, financial regulation, food safety, and immigration reform—all of which will affect our legal practice.

As a result, attorneys should extend their services beyond the courtroom and into the court of public opinion or legislature. If attorneys will not provide such services, then they should build strategic partnerships with public relations firms and/or lobbyists. To meet the needs of today’s businesses, lawyers will need skilled advice regarding how to position their clients before the media or in front of the legislature, while legally protecting their clients.

For example, seeking PR counsel is an important aspect of representing clients in high-profile cases. Even if the issue is a small matter, there is no way we can tell how public opinion can or will shape the outcome of a case. Therefore, in engaging PR counsel:

• Have the lawyer retain the PR firm as opposed to your client directly, to try to preserve attorney-client privilege;
• The PR counsel should consult with the client only in the presence of an attorney and first talk things over with the attorney to seek their support and buy-in for the PR strategy.

Once a PR firm is engaged, they will (depending on the strategy):

• Asses the situation, review any media to date;
• Create key messages;
• Create talking points for key audiences including, staff, vendors, clients, and the media;
• Using the key messages, educate and sensitize the media to mitigate damage or control the story;
• Facilitate interviews; and
• Diligently work to preserve and protect your client’s image in the public eye.

“An attorney’s duties do not begin inside the courtroom door. He or she cannot ignore the practical implications of a legal proceeding for the client.” SeeGentile v. State Bar of Nevada (Kennedy opinion) 510 U.S. 1030, 1043 (1991). Just as an attorney may recommend a plea bargain or civil settlement to avoid the adverse consequences of a possible loss after trial, so too an attorney may take reasonable steps to defend a client’s reputation in the court of public opinion

In today’s fast-paced environment, where it may take years to build up one’s reputation and only seconds to destroy it, a lawyer’s role as advocate extends to managing his or her clients’ reputations inside and out of the courtroom.

Daniel Cherrin, an attorney, is the former communications director/press secretary for Detroit and to Detroit Mayor Kenneth V. Cockrel Jr. He is now president of North Coast Strategies, which provides cutting-edge practical advice where government action or inaction, litigation vulnerability, or complex regulatory requirements will impact your reputation and bottom line. You can reach Cherrin at dcherrin@NorthCoastStrategies.com or 313-300-0932.

Lessons for Baltimore, from Detroit

Baltimore has been used as an example many times by Detroiters about what it did as a city to turn around its downtown, to revamp its waterfront and breathe life back into a city. Now, with its Mayor recently convicted of taking gift cards as bribes and using gift cards that should have been used as gifts for the needy, Baltimore can and should learn from Detroit.

The Mayor of Baltimore refuses to resign after her conviction last week, saying she still has Baltimore's interest at heart. If the Mayor truly had Baltimore's interest at hear she would step down as Mayor, end the drama and let the city move forward without her. If she does not step down, then a cloud will continue to hover around the city.

With the Mayor staying in office, the city cannot move forward. Businesses will not want to do business with the city, its bond rating could be in jeopardy due to the volatile situation in the city, with a lack of uncertainty as to what may happen with or with out the Mayor, and the continued scrutiny of the Mayor.

There is no doubt that the Mayor's attorneys are advising the Mayor to stay put. It provides leverage in negotiating a settlement and a platform for her to speak. But her speech will be limited by what her attorneys tell her she can or cannot say, pending the legal action against her.

Now it is easy for me to sit here in Detroit and be critical of a Mayor who I don't know in a city that I have only visited. But, I can speak from experience about what a city needs to do to move forward and beyond the negative stories that have traumatized a city, a region and a state.

The Mayor of Baltimore and the President of Baltimore's City Council should learn from Detroit. Step down as Mayor. If she is not going to step down, then the President of Council should ask for her resignation, being to create a transition plan, meet with local business, community, labor and faith-based leaders. Travel to Annapolis and meet with the state legislative and executive leadership and begin to make the plans for taking Baltimore back and shift the focus from scandal to hope and opportunity, faith and transparency, accountability and action.

Creating Jobs, Investing in Transit, Roads and other Infrastructure

Each year, the federal government allocates a significant portion of the overall Federal Budget to expenditures that have a direct impact on the states. This includes monies to support programs such as Medicare, food stamps, unemployment compensation, transportation and infrastructure, Medicaid support, job training and education amongst others.

According to the (Michigan) State Fiscal Agency, “Michigan’s share of Federal expenditures has lagged behind the amount of most other states.” (See State Fiscal Report, May/June 2009). The report finds that “Michigan’s total per-capita expenditures ranked 45^th among the states and 41^st among the states in grants to state and local governments.” Id. This means that Michigan is receiving less than its fair share of Federal expenditures

In terms of transit/transportation dollars, Michigan taxpayers lose about $100 million a year in federal transit aid because the state and its major cities have failed to plan for and invest in world-class bus and train service. In fact, 34 counties in Michigan with little public transit service.

Given the current economic climate in Lansing, there are a number of opportunities for Michigan businesses, organizations and institutions to secure support from Congress and the federal government. For example: States are hoping that a new jobs bill outlined by the President will include money for infrastructure projects.

Despite the possibility of having these funds available, Michigan may be ineligible for $475 million in federal highway money next year because it can’t find $84 million in matching state funds. This means that the state may lose out on nearly have a billion dollars in federal highway money in 2010 and even m ore through 2014.

Despite Michigan's potential shortfall, there is time to advocate for change in Congress and find the resources to fund shovel-ready projects, to help create jobs, boost our state's infrastructure and jump-start our ailing economy.

While Congress chose to delay reauthorizing the Transportation Equity Act, they are allowing authorities and road commission’s time to shape the debate and the outcome of the legislation, including positioning such entities to secure federal funding through the reauthorization. With a lack of funding coming from the state, now is the perfect opportunity to turn to Washington for federal support and seek modifications to exist laws and regulations that would prevent Michigan from capturing additional federal support.

For example, the current surface transportation law, the Safe, Affordable, Flexible, Efficient Transportation Equity Act (SAFETEA-LU, P.L. 109-53), was adopted in 2005 and expired on September 30, 2009. To give you some idea of how political this bill was -- When Congress finally passed the last transportation bill in 2005, it took two years and 12 extensions to complete it.

At stake is the dwindling Highway Trust Fund, financed by a federal gas tax that pays for repairs to the nation’s crumbling infrastructure. At issue is an effort by Congress and the President to set the nation’s transportation policy for the rest of the decade and perhaps for decades to come. The outcome will be critical to state and local governments that depend on federal assistance to maintain and improve their transportation systems.

The end game will be the creation of a funding mechanism that will ensure the national transportation system will meet the demands of an expanding population while also accommodating the environmental priorities of those who want to see less road congestion, less accidents and more transit options.

For transportation planning organizations it could mean a modern, sustainable and seamless surface transportation network, that fully integrates and connects the nation’s small urban and rural regions with global, metropolitan and neighboring markets. It could also mean increased federal investments in existing and new rural public transportation system, with an emphasis on establishing stronger incentives and program flexibility across the spectrum.

While we will wait almost a year before Congress will most likely pass a transportation bill, Congress continues to debate issues of transit and transportation and will soon debate a “jobs” bill that will contain federal funding for local infrastructure projects. For example, the U.S. House of Representatives passed the “American Clean Energy and Security Act” (H.R. 2454) in June, and the Senate is still debating their bill. Both bills contain provisions affecting transit, transportation, infrastructure projects and jobs.

Although Congress will not pass a transportation bill until next year, there are still opportunities for transit agencies and organizations to secure resources for a variety of projects through existing bills, and help shape funding for future projects by taking a proactive role in advising Congress on what is important to your agency and community. We need advocates in Washington to support projects in the State of Michigan. We need effective leadership to create a collaborative group of like-minded agencies to support what is necessary to bring the requisite resources to re-build Michigan and create opportunities for us to get back to work.

Therefore, if you have certain projects that need to be funded or policy related issues that can benefit your program, it is important that you meet with your planning organizations; MDOT, the Governor and your Congressional Delegation to ensure their priorities are your priorities. Then it is important to work with your chambers and other community organizations to build a solid base of support for your projects. Despite a full agenda, Congress needs to hear from you and what you need to provide valuable resources to your community. With limited funds from the state and dwindling budgets all around, it seems that Congress is our only option.

When the states can’t pay for schools, Just ask Congress!

With funding diminishing from the State of Michigan for schools, opportunities exist in Washington to secure federal funding. For example, the following school districts received federal funds in FY 2009:

• School District of Lancaster (PA) and Philadelphia School District each received $100,000 Project IMPACT, for abstinence education and related services.
• Troy High School (PA) received $247,000 for removal and/or replacement of non historic windows, infill, louvers, windows, and fan lights.
• The Logan Elm School District (OH) received $48,000 for water infrastructure improvements.
• The Hesperia Unified School District, Hesperia, CA, received $98,000 for an after school program for middle school students.
• The Independence School District (MO) received $347,000 for before- and after-school programs.
• The Washoe County School District (NV), received $248,000 for an online assessment and accountability instructional programs and an additional $248,000 for an English Instructional program.
• The Springfield School District (IL) received $94,000 for a middle school history experience.
• The City School District of New Rochelle (NY) received $422,000 for after school and summer school programs, faculty professional development, and parent education workshops.

These are just some examples of how schools benefited from Congressional appropriations and governmental advocacy in securing additional funds for their schools. With limited funding from the state and a declining tax base, the federal government has some funds to support Michigan’s schools.

However, to obtain funding from Congress, the local school districts need to request the funding. At times, it is not enough to ask your local member of Congress. It is important to build support for your issues and requests, meet with Congressional staff, invite your member to experience schools and perhaps even make it an educational experience for the students by involving them in the legislative process.

What's Next For Congress?

Members of Congress are planning on working through the Thanksgiving holiday in an effort to try to wrap up a number of outstanding issues, including health care and climate change legislation. However, it seems that these issues will be carried over into the next session and will remain relevant going into 2010 and the mid-term elections. Here is a look into some of the issues Congress will keep their eye in 2010:

HEALTH CARE REFORM -- Despite passage in the House, the Senate is working diligently to find a compromise. Expect this issue to continue on into February before anything is resolved.

CAP-AND-TRADE -- Again, despite passage in the House, the Senate is finding difficulty in addressing a number of issues in this bill, including pressure from manufacturing states and the potential impact on jobs.

FINANCIAL REFORM -- Banks and other financial firms are already gearing up for a the debate on financial reform. Although this issue remains a priority, it took a back seat during the health care and climate change debate, but is starting to gain traction in committee.

TAXES -- A number of tax relief measures passed in 2001 and 2003 are set to expire by the end of 2010. Expect this issue to become a polarizing issue as members of Congress prepare for the election season.

IMMIGRATION -- Another priority of the administration, this issue will have the potential to be another political issue.

STIMULUS II -- Communities are still struggling despite the influx of funds from the federal government. In an election year, Members of Congress may look to bring more immediate relief to their districts.

TRANSPORTATION -- Congress punted on addressing the expired and Transportation Equity Act for an additional 18 months. However, Congress will still hear testimony on reforming or nation's aging infrastructure and how to address its shortcomings.

FEDERAL FUNDING -- With a lack of funding from state governments, going to local governments, social service agencies and other organizations, people will be looking to Congress for financial support.

Regardless of the issues Congress considers in the coming months, it will no doubt be political as their think about their election.

Stop Looking at Lansing: Schools need to focus on support from Congress

With funding diminishing from the State of Michigan for schools, districts statewide should shift their focus to Washington.

For example, the following school districts received federal funds in FY 2009:

• School District of Lancaster (PA) and Philadelphia School District each received $100,000 Project IMPACT, for abstinence education and related services.
• Troy High School (PA) received $247,000 for removal and/or replacement of non historic windows, infill, louvers, windows, and fan lights.
• The Logan Elm School District (OH) received $48,000 for water infrastructure improvements.
• The Hesperia Unified School District, Hesperia, CA, received $98,000 for an after school program for middle school students.
• The Independence School District (MO) received $347,000 for before- and after-school programs.
• The Washoe County School District (NV), received $248,000 for an online assessment and accountability instructional programs and an additional $248,000 for an English Instructional program.
• The Springfield School District (IL) received $94,000 for a middle school history experience.
• And the City School District of New Rochelle (NY) received $422,000 for after school and summer school programs, faculty professional development, and parent education workshops.

These are just some examples of how schools benefited from Congressional appropriations and governmental advocacy in securing additional funds for their schools. With limited funding from the state and a declining tax base, the federal government has the funds available for local districts.

With very limited budgets, school districts need to be careful where they spend their resources. It may prove helpful to work through an intermediate school district or perhaps even build a regional collaboration with the county, chambers and other entities to secure federal funding.

Funding for Food Banks

With 35 million individuals either experiencing hunger or teetering right on the verge of hunger each year, the American people expect Congress to take every reasonable action possible to address food shortages, particularly here in Michigan. Last year, Congress passed a bill designed to encourage federal agencies to regularly donate surplus food to organizations that feed the hungry and each year, the providing funding to a number of organizations that help distribute food.

In addition, each year, Congress passes appropriations for food banks/pantries. The following organizations received federal appropriations in the past:

- Bay Area Food Bank. Bay Area Food Bank, which distributes food donated by grocery stores, restaurants and the like to soup kitchens and homeless shelters received $245,000 for the construction of a commercial-size kitchen (FY 2008) (Jo Bonner).

- Tucson Community Food Bank (TCFB) -- Rep. Gabrielle Giffords requested $200,000 for “solar panels” at the TCFB in the FY 2009 budget.

- Second Harvest Food Bank received $700,000 in 2007.

- In 2006, Sen. Obama requested $2,499,400 for the Food Stamp Participation Project of the Illinois Department of Human Services. The Food Stamp Participation Project is development of new technology projects, which are designed to increase the access to the food stamp program. One is designed for use by the general public and the other is a web based application designed for use in food pantries. [Obama Request Letter to the Senate Appropriations Subcommittee on Agriculture, Rural Development, and Related Agencies, 3/31/06].

- For FY 2009, Sen. Sherrod Brown (D-OH) requested $368,500 for renovations at the Akron-Canton Regional Food Bank

- The South Texas Food Bank will receive $136,670.48 in conjunction with the 2008 Farm Bill should it be signed into law.

Although this list is not comprehensive, you can see, federal funding is available for a wide variety of needs, including: infrastructure improvement, child nutrition programs, food stamps and childhood obesity prevention, among other things. This funding is requested directly through Congress and is unrelated to a grant.

With a lack of funding from the state, organizations such as those with food banks, should turn their attention to Washington for support.