February 8, 2008  N°. 590 - Vol. 6

"It is the trade of lawyers to question everything, yield nothing, and to talk by the hour."

 Thomas Jefferson

In today's Law Firm Marketing: Positive ways to collect money and maintain relationships

• Top News

Objection!

Advertising by lawyers has long been controversial, with detractors saying it cheapens the profession and proponents asserting that ads foster competition and help educate people about their options. Most states prohibit false or misleading lawyer ads, but even tighter restrictions are the trend.

Exxon in Venezuela asset freeze

US oil giant Exxon Mobil has said it has won a court order to freeze up to $36bn in Venezuelan assets. The firm has been fighting for compensation since Venezuelan president Hugo Chavez took its stake in heavy oil projects in the country last June. A British court has now ordered that Venezuela state oil firm PDVSA cannot sell any of its assets, up to a value of $12bn, Exxon said. Assets worth $24bn were frozen in the Netherlands and Netherlands Antilles. Last year Exxon took its case to the International Centre for Settlement of Investment Disputes. It has not said how much compensation it wants for the 41.7% stake in the Orinoco Belt oil field - worth an estimated $750m.

French parliament backs EU treaty

France's parliament has voted to adopt the EU reform treaty, three years after a French No dealt a fatal blow to the European Constitution. Hungary, Malta, Slovenia and Romania have already done so. Ireland is the only EU member state due to hold a referendum on the treaty. All 27 member states must approve the treaty before it can come into force as scheduled in 2009.

Sharia law in UK is 'unavoidable'

The Archbishop of Canterbury says the adoption of certain aspects of Sharia law in the UK "seems unavoidable." He told that the UK has to "face up to the fact" that some of its citizens do not relate to the British legal system. He argues that adopting parts of Islamic Sharia law would help maintain social cohesion. His statement was welcomed by some Muslim groups, but the government was quick to distance itself.

Antitrust Concerns Draw Fire

The Justice Department's antitrust division is catching flack from some lawmakers and regulators for roiling markets by raising concerns that business practices in the financial-futures industry may be anticompetitive.

• Crumbs!

• MiMIC Journal

First Chinese for World Bank job

The World Bank has appointed its first chief economist from a developing country to work at the institution. Justin Yifu Lin, a leading academic from Beijing University who is originally from Taiwan, is the first Chinese citizen to hold the position. Former chief economists include US Treasury Secretary Lawrence Summers and Nobel prize winner Joseph Stiglitz.

• Law Firm marketing

Positive ways to collect money and maintain relationships

You know the many get-tough methods you can use to make clients pay.  The problem is, these methods often embarrass clients, arouse anger and destroy relationships.  Here are constructive steps you can take to avoid collection problems, encourage payment and strengthen bonds with clients.

Step #1:  Give every new client your written schedule of fees and collection practices.  You might do this as part of your engagement letter or as a separate document.  If you have different fees for different types of clients, then prepare a fee schedule for each client category.  When you give every new client your explanation of fees and collection practices, clients understand that these practices apply to all of your clients so they don't take your policies personally.  Also, when clients have a clear understanding of how you collect money, they will act to avoid the known consequences of late payments.

Step #2:  Give clients a reduction for paying your invoice on time.  Some lawyers add finance charges to past due invoices, but finance charges usually create bad feelings.  Instead, take the positive approach and offer your client something he wants:  a discount.  You might offer clients a reduction of 5 or 10 percent when they pay your invoice within 10 days or whatever time period you choose.  Write a short statement on your invoice so your client knows the exact amount of the reduction (in dollars, not a percentage) and the date by which you request payment.  Something like this:

(John, you're invited to take a prompt-payment discount of $125 if I receive your payment by Monday, September 15, 2003.)

When you offer a prompt-payment discount, you show your client how to reduce his legal bill.  As a result, your client saves money and you get paid -- the proverbial win-win situation.  But when you penalize clients with collection procedures and finance charges, you strain and sometimes demolish relationships.

Step #3:  In your first request for payment (after the original invoice), acknowledge that your client might not have received your bill and include another copy.  Also, write a gentle request for payment over your signature.  If the post office didn't deliver your bill, this gives your client a second chance.  And if not paying your bill was simply an oversight, you don't want to come on too strong when your client made a mistake.

Step #4:  Once an account is past due, make sure all requests for payment are over your (the lawyer’s) signature.  Clients often think their past-due balances are known only to the back-office billing clerk -- or an outside billing service.  But when the request for payment comes with a note from you, the client realizes you know his payment is late.  To avoid embarrassment and the possibility of jeopardizing your relationship, clients often pay your invoice or contact you to request payment terms.

Step #5:  Send collection requests frequently.  Some clients think that after they receive your invoice or statement, they won't hear from you for another month.  In this way, they view the arrival of your statement as a 30-day extension.  Instead, send requests for payment of past-due amounts every 10 days or so.  This keeps your receivable ever-present in their mind and gives them a gentle nudge because they know they'll receive another statement in 10 days.

Step #6:  Invite clients to pay with a credit card.  If you think your client may be short on cash, offer an alternative.  Plus, clients often like to pay by credit card because they add to frequent flier miles or other reward programs.

Step #7:  Ask clients to call you to arrange a payment schedule.  Some clients don't ask permission to make payments to avoid embarrassment or for fear that you'll say no.  If you think your client may be in a cash crunch, invite him to call you about payment terms.  If your client is a “little short,” this may be the breath of fresh air he needs.  Plus, your offer to help him tightens the bond between you and strengthens your relationship.

© Trey Ryder

FREE LAWYER MARKETING ALERT:  If you'd like to receive Trey Ryder's weekly Lawyer Marketing Alert, send an e-mail to [email protected]. Write "Subscribe LMA" in the subject line and write your name and e-mail address in the body of the message.

• Historia Verdadera

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• Brief News

Khmer Rouge victims address court

Survivors of Cambodia's brutal Khmer Rouge regime have addressed a UN-backed genocide court for the first time. The survivors spoke at a bail hearing for top Khmer Rouge leader Nuon Chea, who has been charged with crimes against humanity. Victims had been waiting 30 years for justice, one woman said, urging the court not to grant bail to Pol Pot's former deputy.

Nato 'at risk over Afghanistan'

US Defence Secretary Robert Gates has warned the future of Nato is at risk due to differences over Afghanistan and that it may become a two-tier alliance. Gates said that without more sharing of the burden of counter-insurgency in Afghanistan, the willingness of those engaged in combat would disappear. "The alliance is facing a real test here. And it is a test of alliance strength," Condolezza Rice said. She added that people needed to understand it was not a peacekeeping mission in Afghanistan, but a fight against the resurgent Taleban.

Lawyer calls for Kerviel custody

The Paris public prosecutor has called for the detention of Jerome Kerviel, the man at the centre of the Societe Generale rogue trader investigation. He is under investigation for breach of trust, computer abuse and falsification and is free under judicial supervision. The prosecutor's office believes there is a risk Kerviel might abscond and is to appeal against his release.

SocGen Readies Capital Increase

Société Générale is close to launching the expected capital increase that would shore up its finances. 

OSCE to boycott Russian election

Europe's main election watchdog has said it will boycott Russia's presidential election on 2 March because of Moscow-imposed restrictions. "Russia has made it impossible," said Christian Strohal, monitoring chief for the Organisation for Security and Co-operation in Europe (OSCE). The OSCE has been arguing with Russia over the size and scope of the observers' mission. Russia's foreign ministry called the monitors' decision "unacceptable".

After Bhutto's death, worries about voting safety

Benazir Bhutto's assassination forced the delay of Pakistan's parliamentary elections, now scheduled for Feb. 18. It also brought home the fact that Pakistan has changed — it's now plagued by terrorist attacks. There are fears the attacks will increase as the elections near.

Study: Ethanol Worse for Climate Than Gasoline

Biofuels like corn ethanol have been hailed as climate-friendly fuels. But new research says that the global effects of losing agricultural land for corn ethanol production will result in twice the carbon emissions of gasoline. The finding could force major changes in the biofuels industry.

Congress approves US economy plan

The US Congress has passed a $167bn economic stimulus plan aimed at helping to bolster the world's largest economy and avoid a recession.

Doctor held in Indian organ scam

A doctor alleged to be the mastermind of an organ trading racket in India has been arrested in Nepal. Indian police had been wanting to question Dr Kumar after they raided a house in Delhi which had been used to carry out illegal kidney transplants. Officers say hundreds of poor laborers were lured from across northern India and bribed into selling their kidneys.

'Mafiosi' held in US and Sicily

Dozens of people have been detained by US and Italian authorities targeting an alleged Mafia-run transatlantic drug trafficking operation. The operation, codenamed "Old Bridge," saw arrests in and around New York and the Sicilian capital, Palermo.

Airbus predicts air travel boom

European plane maker Airbus expects global passenger traffic to grow at an average of 4.9% a year, almost trebling over the next two decades. It forecasts that 24,300 passenger and freight aircraft worth $2.8 trillion will be ordered between now and 2026. Average industry deliveries will be 1,215 aircraft a year.

Privatization strengthens Brazil's energy industry

Well-developed infrastructure, an ongoing deregulation process, market reforms, and privatization process have created a positive environment for energy investment in Brazil. Despite the partial privatization of the energy industry, the Government still holds the reins in key areas such as pipelines and generation ownership, as well as ownership of local distribution companies. Although this partial reform has created uncertainty in the industry, it has gone a long way in removing market barriers to distribution. Brazil is the leading producer of renewable energy and is anticipating newer technologies for energy generation, efficiency, and flexibility.

Credit-card spree may be ending

Credit-card delinquencies are rising across the nation, a sign that some Americans are at the end of their rope financially. The result could be a sharp pullback in consumer spending that would further weaken the U.S. economy. 

Subprime probes

The US Justice Department is seeking data from the SEC's investigation of Merrill's mortgage-securities activities. The interest by the federal prosecutors is preliminary; it is unclear whether the SEC has turned over information. However, the request could be a precursor to a criminal investigation.

Criticism over Madonna UN event 

Madonna has hosted a celebrity-packed event on the lawns of the United Nations in New York, raising money for orphaned children in Malawi. The dinner party raised $3.7m for charities Raising Malawi and Unicef. But the event attracted controversy as sponsor Gucci pegged it to the opening of its new flagship New York store. Madonna and husband Guy Ritchie are in the process of adopting a Malawian boy.

Solutia's suit:  Banks must honor bankruptcy pact

Solutia Inc. has sued three banks for backing out of a $2 billion financing commitment needed by the chemical company to exit from Chapter 11 bankruptcy protection. The lawsuit, filed yesterday, is believed to be one of the first of its kind and offers further evidence of how credit woes are making it harder and more expensive for companies to exit from bankruptcy. The banks -- Citigroup Inc., Goldman Sachs Group Inc. and Deutsche Bank AG -- told Solutia last month that the tight credit market made them unable to find lenders to back the loan and qualified as a "materially adverse" condition that would allow the banks to terminate their agreement. Lenders often agree to provide financing with an option to renege if there is a "material adverse change" in a company's business or in the capital or credit markets.

Russia prison to transfer ex-Yukos lawyer to clinic for medical treatment 

Former Yukos executive and lawyer Vasily Aleksanian  will be transferred from jail to a civilian clinic for medical treatment, Russia's Federal Penitentiary Service said Thursday. The announcement apparently reverses a Wednesday Russian court ruling denying Aleksanian temporary medical release. The European Court of Human Rights has called on Russia three times to move Aleksanian to a medical clinic, warning that it could find the country in violation of the European Convention on Human Rights  should his condition worsen. The former Yukos executive was arrested in 2006 on charges of money laundering and embezzlement and was diagnosed with HIV a few months later

US judge refuses to dismiss bribery, money laundering charges against congressman 

A federal judge rejected an argument Wednesday by US Rep. William Jefferson that an indictment against him unconstitutionally violated the Speech or Debate Clause , saying that Jefferson has "focused immunity" rather than "expansive immunity" under the clause. Jefferson had argued that grand jury testimony given by his staffers violated the Speech or Debate clause because the staffers spoke about Jefferson's former position on the House Ways & Means Committee and his involvement in trade issues. In August, the US Court of Appeals for the DC Circuit ruled that the FBI's conduct during an 18-hour raid of Jefferson's congressional offices  was unconstitutional, finding the "compelled disclosure of privileged material to the Executive during execution of the search warrant" violated the Speech or Debate Clause because the FBI searched through privilege materials without giving Jefferson an opportunity to review the materials.

Bush to veto surveillance bill without telecom immunity: Mukasey letter 

Bush will veto any terror surveillance legislation passed by Congress that does not include liability protection for telecom companies, a letter from Attorney General Michael Mukasey and National Intelligence Director Mike McConnell warned Congress Tuesday, according to AP. Last week, Bush signed a 15-day extension to the temporary Protect America Act , designed as a stopgap while Congress works on long-term legislation to "modernize" the 1978 Foreign Intelligence Surveillance Act (FISA) . FISA currently allows the government to eavesdrop inside of the US without court approval as long as one end of a conversation is reasonably perceived to have been outside of the US. Controversy has arisen over proposed amendments to grant retroactive immunity to telecommunications companies from lawsuits related to their participation in the NSA warrantless surveillance program . AP reported that the Tuesday letter, sent to the Senate Judiciary Committee and the Senate Intelligence Committee, said that, "Private citizens who respond in good faith to a request for assistance by public officials should not be held liable for their actions." The letter indicated that the Bush administration otherwise supports the bill.
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• Daily Press Review

Mbeki seeks to calm economy fears
BBC News, Centrist newscaster, London, England

Third Congo Warlord to Face Justice
CongoPlanet.com, Independent online news aggregator

Ghana outlook raised to stable
GhanaWeb, Online news portal, Amsterdam, Netherlands

ICC/DRC: New War Crimes Suspect Arrested
Human Rights Watch (Africa), International news press releases

Viagra for Israeli combat pilots?
iafrica, Online news portal, Cape Town, South Africa

There's no reason to panic, says Mbeki
Independent Online, News portal, Cape Town, South Africa

Jeppestown accused want recusal of judge
Mail & Guardian Online, Liberal, Johannesburg, South Africa

Mbeki's approval rating drops
News24.com, Online news portal, Cape Town, South Africa

Lice from Peruvian mummies offer a tool to study ancient migrations
Brazil Sun, Independent online news aggregator

Japan’s prime minister to attend APEC 2008 Summit in Peru
Living in Peru, News portal, Lima, Peru

France hints it will offer Canada troop support
The Globe and Mail, Centrist daily, Toronto, Canada

Baby bottles have toxic chemical, study says
Toronto Star, Liberal daily, Toronto, Canada

Indonesia foreign minister in Sydney to meet Australian PM
Antara News, News agency, Jakarta, Indonesia

Synergy Hill and Knowlton
Chosun Ilbo, Conservative daily, Seoul, South Korea

Petition against Raj Thackeray on Feb 22
India Express, News portal, Mumbai, India

In Video: Ranbir says no to link-ups
India Times, Conservative daily, New Delhi, India

From Super Tuesday to standoff
Japan Times, Independent centrist, Tokyo, Japan

MIC's vote-seeking squads
Malaysian Star, Online news portal,  Selangor Darul Ehsan, Malaysia

Six dead in Missouri massacre
New Zealand Herald, Conservative daily, Auckland, New Zealand

U.S. Congress passes economic stimulus package to fend off recession
People's Daily Online, English-language, Beijing, China

Council meeting the latest deadly casualty
Sydney Morning Herald, Centrist daily, Sydney, Australia

Kidney racket kingpin arrested
The Hindu, Left-leaning daily, Chennai, India

Sharia comments trigger criticism
BBC News, Centrist newscaster, London, England

No Quasimodo, he brings music to Notre-Dame bells
International Herald Tribune, Independent daily, Paris, France

Uproar as archbishop says sharia law inevitable in UK
The Guardian, Liberal daily, London, England

Six dead in US council meeting shooting
The Telegraph, Conservative daily, London, England

Scotland Yard ready to deliver its findings on Benazir Bhutto assassination
Times Online, Conservative daily, London, England

11 Kassams So Far Friday, Light Damage Reported
Arutz Sheva, Online, right-wing, Tel Aviv, Israel

Rice, British counterpart, visit former Taliban stronghold
Asharq Al-Awsat, Pan-Arab daily, London, England

Six dead in Missouri City Hall shooting
Gulf News, Independent daily, Dubai, United Arab Emirates

Palestinian PM says he sees no peace accord with Israel in 2008
Haaretz, Liberal daily, Tel Aviv, Israel

Rights-US:  White House, Justice Won't Renounce Waterboarding
IPS Middle East, International cooperative of journalists, Rome, Italy

Jordan's unemployment rate drops to 13.1% in 2007
Middle East North African Network, Online financial portal, Amman, Jordan

Bhutto Killed by Suicide Blast Not Bullet
Nahamet, Online news portal, Beirut, Lebanon

Sadr orders Mehdi Army to maintain cease-fire - for now
The Daily Star, Independent daily, Beirut, Lebanon

International appeals to save Fatima Badi
Yemen Times, Independent weekly, Sana'a, Yemen

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