Arnstein & Lehr Fall 2008 Update

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First in U.S.

Arnstein & Lehr team advises winning bidder on $2.5 billion Midway Airport privatization Building upon Chicago Partner David Golin’s ongoing work on behalf of the bond issuer for the Los Angeles International Airport, Chicago Partner Howard Swibel recently led a team of Arnstein & Lehr LLP attorneys who assisted the winning bidder in a $2.52 billion deal to privatize Chicago’s Midway Airport. It is recognized as the first privatization of a major airport in U.S. history. The team included Chicago Partners Bill Anaya, Joel Hurwitz, Cynde Hirschtick Munzer, Mark Spognardi, and Associate Tracey Salinski. Swibel and the team represented Midway Investment & Development Company, a consortium consisting of YVR Airport Services Ltd., an affiliate of the Vancouver Airport Authority, Citi Infrastructure Investors of New York and John Hancock Life Insurance Company of Boston. The Arnstein & Lehr team advised the bidder on issues of state and local law, including compliance with City of Chicago disclosure requirements. Under the 99-year lease, the city will receive an up-front payment of $2.52 billion. It is anticipated to close within the next few months.

Arnstein & Lehr presents 2008 Woman of Vision Award Arnstein & Lehr LLP presented Marsha Serlin, CEO and founder of United Scrap Metal, Inc., with its 2008 Woman of Vision Award at a luncheon on July 17. More than 120 female business and professional leaders were in attendance. The award, sponsored by the Arnstein & Lehr Diversity Committee, recognizes and honors groundbreaking, inspirational women who have made a difference in the professional world. "I am honored and humbled to be the recipient of Arnstein & Lehr’s Woman of Vision award," said Serlin. "The support of many women and the knowledge that women can accomplish anything through hard work and determination is what allowed me to carry out my vision and succeed in a male dominated industry. Again, I want to thank Arnstein's Diversity Committee and especially thank all of the ladies who attended the luncheon today." Dr. Sandra Burke, Ph.D., who recently retired from her position as Director of Cardiovascular Biology Research at Abbott Laboratories, presented Serlin with a pin for the American Heart Association's (AHA) “Go Red for Women” program during the luncheon. The program aims to raise awareness and educate women about heart disease. Burke is on the Board of Directors of the AHA’s Greater Midwest region and is active in the “Go Red” program. Other women in attendance included CEOs, COOs, executive directors, vice presidents and managing partners, as well as numerous women business owners. “Marsha was a clear choice for this year’s award, having built Woman of Vision Continued on Page 3 A r n s t e i n & L e h r U p d at e

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IRS aggressively pursuing off shore accounts

by Robert E. McKenzie Partner, Arnstein & Lehr

On July 1 a federal judge in Miami issued an order authorizing the Internal Revenue Service (IRS) to request information from Zurich, Switzerland-based UBS AG about U.S. taxpayers who may be using Swiss bank accounts to evade federal income taxes.

Robert McKenzie is a partner with Arnstein & Lehr concentrating his practice in representation before the Internal Revenue Service and state tax agencies. He has presented courses before thousands of CPA’s, attorneys and Enrolled Agents nationwide. Prior to entering private practice, he was employed by the IRS, Collection Division, in Chicago from 1972 to 1978. During that time, he worked as a revenue officer, a classroom and OJT Instructor of Revenue Officers, and as an advisory revenue officer in the Chicago Special Procedures Staff. Since entering private practice, he has dedicated a major portion of his time to representation before the IRS and litigating tax controversies in state and federal court.

The order authorizes the IRS to serve what is known as a “John Doe” summons on the bank. The IRS uses a John Doe summons to obtain information about possible tax fraud by people whose identities are unknown. The John Doe summons approved by the court directs UBS to produce records identifying U.S. taxpayers with accounts at UBS in Switzerland who elected to have their accounts remain hidden from the IRS. It is highly likely that the IRS will be successful in its efforts to secure the account information from UBS. Based on a statement submitted to the court by former UBS banker Bradley Birkenfeld, UBS employees assisted wealthy U.S. clients in concealing their ownership of assets held offshore by creating sham entities and then filing IRS forms falsely claiming that the entities were the owners of the accounts. According to Birkenfeld’s court statement, UBS had approximately $20 billion of assets under management in “undeclared” accounts for U.S. taxpayers. Voluntary Disclosure The court order could lead to the disclosure of thousands of U.S. residents who have failed to report UBS accounts. U. S. taxpayers who have banked with UBS should immediately seek the advice of a competent tax attorney. The IRS has a voluntary disclosure policy that may allow UBS clients to avoid harsh penalties and/or prosecution. The central concept of the voluntary disclosure policy is that the taxpayer must come forward and self identify before the IRS opens an investigation of that person. Before approaching the IRS for a voluntary disclosure a competent tax attorney will review all appropriate facts and circumstances with a client to assure that the she qualifies for the program. After a review of the facts, in most matters the tax attorney will then approach the IRS to negotiate anonymously on

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Employer Alert

Minimum wage increased Employers should be aware that the Federal and Illinois minimum wages recently increased. Pursuant to the 2007 Fair Minimum Wage Act, the federal minimum wage rate for covered, non-exempt employees increased to $6.55 per hour (unless the state, like Illinois, has adopted a higher minimum wage). This federal rate increase became effective July 24, 2008, and will remain in effect for one year before the federal minimum wage increases again to $7.25 per hour on July 24, 2009. For Illinois employers, however, the State’s minimum wage rate for covered, non-exempt employees increased to $7.75 per hour starting on July 1, 2008. All Illinois employers must adhere to the Illinois minimum wage increase since it is higher than the federal minimum wage. Employers with employees in other states should look to those states' laws to find out about their applicable minimum wage rates. The 2007 Fair Minimum Wage Act did not change the Fair Labor Standards Act’s “tip credit” provisions. Therefore, employers who use “tip credits,” such as restaurants, are still permitted to pay tipped employees a cash wage of $2.13 per hour. However, under Illinois law, while a tip credit is recognized, it must not exceed 40% of the applicable minimum wage. At its current rate, tipped employees in Illinois must therefore be paid at least $4.65 per hour in order to ensure that the tipped employees are compensated the applicable Illinois minimum wage of $7.75 per hour.

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Woman of Vision Continued from Page 1

IRS Continued from Page 2

her own scrap metal business from the ground up in 1978,” said Cynde Hirschtick Munzer, a partner with Arnstein & Lehr, who presented the award to Serlin. “Thirty years later United Scrap has grown to become one of the industry’s premier companies due to Marsha’s strong leadership, motivational skills, creativity and innovative ideas. Like many great visionaries, Marsha is also active in her community and has received a variety of honors and awards throughout her career.”

behalf of the taxpayer and only upon agreement will the her identity be disclosed to the IRS.

In 1978, Serlin envisioned a recycling company that would be motivated entirely by customer needs and satisfaction. Her concept worked and she has built a company that today employs over 150 people and is an award winning leader in 2008 Woman of Vision recipient Marsha Serlin with Arnstein & Lehr Partner recycling solutions. Cynde Hirschtick Munzer She is on the board of the United Way/Community Chest, a member of the board of governors of the Chamber of Commerce, a member of the executive board for the Boy Scouts of America, and serves on the board of directors at the Children at the Crossroads Foundation. Serlin is a commissioner on the Cook County Commission of Women’s Issues, and a member of The Chicago Network, The Committee 200 and the National Women’s Business Council in Washington, D.C. This is the second annual Woman of Vision Award Luncheon. Cheryle Jackson, president and CEO of the Chicago Urban League, was last year’s honoree.

The Law The law requires a United States taxpayer to report all financial accounts in a foreign country if the total value of the accounts exceeds $10,000 at any time during the calendar year. A willful failure to report a foreign account can result in a penalty of up to 50 percent of the amount in the account at the time of the violation or prosecution. IRS Crackdown Given its success in this case it is inevitable that the IRS will step up its efforts to find Americans utilizing tax haven banks. Since September 11 the U. S. Financial Crimes Enforcement Network has developed a coordinated program to find money laundering, foreign banking activity, and tax evasion. In most white collar crime cases the Justice Department offers plea bargains to individuals like Birkenfeld in return for cooperation in charging others involved in illegal activity. Therefore with increased resources being allocated to seeking out foreign bank activities by Americans we can anticipate will the first of many bankers who cooperate to reduce their potential jail time. Background On June 19 Birkenfeld pleaded guilty to conspiring with an American billionaire real estate developer, Igor Olenicoff, Swiss bankers, and his codefendant, Mario Staggl, to help Olenicoff evade paying $7.2 million in taxes by assisting in concealing $200 million of assets in Switzerland and Liechtenstein. During the plea, Birkenfeld admitted that between 2001 and 2006, while he was employed as a director of UBS, he routinely traveled to and had contacts within the United States to help wealthy Americans conceal their ownership in assets held offshore and evade the payment of taxes on the income generated from those assets. According to statements and documents filed with the court, Birkenfeld’s services to American clients violated a 2001 agreement that UBS entered into with the United States to identify

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Attorneys featured in this issue

William Anaya

Bruce Balonick

Matthew Bryant

Robert Butters

Jenifer Caracciolo

James Chatz

A r n s t e i n & L e h r U p d at e

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IRS Continued from Page 3 and document any customers who received reportable U.S. source income or would withhold and anonymously pay a 28 percent withholding tax. This agreement was a major departure from historical Swiss bank secrecy laws under which Swiss banks concealed bank information from the IRS. $20 Billion In Assets In evidence provided by Birkenfeld to the court, managers and bankers at the firm, including Birkenfeld, assisted the U.S. clients in concealing their ownership of the assets held offshore by helping these wealthy customers create nominee and sham entities. This was done to prevent the risk of losing the approximately $20 billion of assets under management in the United States undeclared business. The Scheme Birkenfeld admitted that he and additional private bankers at UBS advised U.S. clients to place cash and valuables in Swiss safety deposit boxes, and purchase jewels, artwork and luxury items using the funds in their Swiss bank account while overseas. Additionally, they advised the clients to misrepresent the receipt of funds from UBS in the United States as loans from the bank; destroy all offshore banking records existing in the U.S.; utilize Swiss bank credit cards that they claimed could not be discovered by U.S. authorities; and file false U.S. individual income tax returns that omitted income earned by the clients and fraudulently misrepresented that the clients did not have an interest in and signature authority over accounts held offshore. Commissioner’ Comment As an indicator of the importance of this case IRS Commissioner Douglas Shulman said on July 19, “I believe this case will send a strong signal to anyone hiding money in offshore bank accounts to avoid paying the taxes they should. The IRS will pursue people using offshore accounts in this manner as well as financial advisers and others who orchestrate these tax fraud schemes.” Final Comment In summary, U. S. taxpayers who may have dealings with UBS should immediately seek the advice of competent tax counsel to determine their best options before the IRS successfully finds them by other means. Attorneys featured in this issue

Robert Cichocki

w w w. a r n s t e i n . c o m

Patrick Cotter

Andrea Cox

Notable cases & victories 1st District Appellate Court affirms Weisberg and Bryant $1 million mechanic's lien judgment Chicago Partner Justin Weisberg and Associate Matthew Bryant recently received summary judgment for their client Inland Electric Corporation, the electrical contractor involved in the construction of the Montrevelle Condominium Building over the site of the old Como Inn Restaurant in Chicago. The developer defaulted on payments resulting in numerous mechanics liens in excess of $10 million. There was also a mortgage foreclosure action in excess of $20 million. The bank and contractors cooperated to have a receiver appointed to complete construction of the building and sell the condominium units. Due to the refusal of the developer and general contractor to comply with discovery, Inland Electric jointly moved with two other claimants for sanctions against the developer and contractor and, after an evidentiary hearing, the motion was successful, resulting in the default judgments against both the contractor and developer. Inland Electric was then opposed by First Midwest Bank which held the mortgage on the property, although Weisberg and Bryant were successful in obtaining a judgment granting priority over the mortgage and prevailing over the banks claims that Inland Electric's lien was over stated, that it failed to comply with discovery, and that it waived its lien by the issuance of a lien waiver to date. The judgment amount with interest to date is in excess of $1 million.

Daniels and Newburgh successfully close on challenging commercial real estate transaction West Palm Beach Partners Steven Daniels and Steven Newburgh recently closed on the sale of a bowling alley and its underlying land. The closing presented many challenges, not the least of which concerned an incomplete environmental study, outstanding code violations, open permits, a pending declaratory action concerning a reciprocal easement agreement with the bowling alley’s neighbor and problems with the tract’s legal description. Due to financing contingencies, it was not known whether or not this deal would close until three days prior to the scheduled closing date.

Franklin Zemel, Jason Gordon receive landmark ruling for Chabad of Nova Fort Lauderdale Partner Franklin Zemel and Associate Jason Gordon received a landmark ruling from a federal judge for their

Steven Daniels

Toby Eveland

Allan Goldberg

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client Chabad of Nova. The Chabad had been seeking to rent space at a Cooper City strip mall since 2005, but was continually rebuffed by the city who cited ordinances that limited space for houses of worship in strip malls. Miami U.S. District Judge Cecilia Altonaga said the city violated federal religious protection laws when it twice changed its zoning codes to prohibit or restrict religious organizations from opening in business and shopping areas.

Andrea Cox wins appellate case for major health care and pharmaceutical company Andrea Cox, a Miami associate, was granted a rare oral argument by the Fourth DCA on a Petition for Writ Certiorari, and successfully argued on behalf of a major health care and pharmaceutical company. The plaintiff had filed a products liability suit against the company regarding a drug eluting coronary stent. The stent was a first of its kind and went through the rigorous FDA pre market approval which involved disclosure of its design, manufacturing, and marketing procedures as well as the results of its clinical testing. The plaintiff sought production of these documents in discovery, many of which contained confidential and trade secret information. The company produced thousands of pages to the plaintiff, whose attorney sought court approval to disclose the documents to other attorneys nationwide. The trial court granted the request and the company filed a petition for writ of certiorari in the Fourth District Court of Appeal to prevent the wide dissemination of its confidential documents.

holder certain information. At trial Caracciolo convinced the judge that, not only had the client reasonably complied with the request for information and documents, but the information requested did not exist and accordingly the court could not grant the relief requested. The appellate court agreed and largely adopted the brief and arguments we put forth on behalf of the clients.

Chicago team wins summary judgment for municipal client Chicago Partner Hal Morris and Chicago Associates Jenifer Caracciolo and Georgia Logothetis won summary judgment on behalf of an Illinois municipal client and against a large number of petitioners seeking to legally disconnect their properties from the incorporated municipality. There the petitioners were seeking disconnection by including publicly owned lands in an effort to meet the requirements of the Illinois Disconnection Statue. Arnstein & Lehr attorneys successfully argued that such a private use of public lands, without the consent of the public body entrusted with the control and ownership of the lands, was inappropriate and violated the public use provision of the Illinois Constitution. In a widely reported case, the trial court agreed with our position and granted judgment against the petitioners and in favor of the municipality. As a result, the municipal client retains almost $400,000 in tax revenues that would have been lost had the disconnections been successful. This win is especially significant as there is only one reported Illinois case that denied a similar request for disconnection.

Cynde Munzer closes deal with major bank

The Fourth DCA recognized that Florida courts had not previously addressed whether a plaintiff may share confidential and trade secret information to other attorneys who are not currently involved in litigation regarding a similar product. With no Florida case law to support the company’s position, Arnstein & Lehr successfully argued that the court should follow federal law which only allows sharing with attorneys who represent plaintiffs in collateral litigation. The Fourth DCA agreed that the company is entitled to protect its confidential records and issued the writ of certiorari.

Chicago Partner Cynde Hirschtick Munzer represented a major bank in the documentation and closing of a multimillion dollar Canadian line of credit loan to one of the largest vehicle fleet lessors in the U.S. She was assisted by the firm’s Ontario International Law Network member firm, Fogler, Rubinoff LLP.

Hal Morris and Jenifer Caracciolo win in Appellate Court for building co-op

Partners Steven Malitz and Daniel Schlade obtained a very favorable settlement for their junior lender client, even though the value of the senior mortgage far exceeded the secured property’s value. Simply put, this victory was the result of keen attention to detail.

Chicago Partner Hal Morris and Chicago Associate Jenifer Caracciolo secured a significant win in the Illinois Appellate Court on behalf of a cooperative building corporation. In that action, the cooperative and its manager were sued for alleged violations of the Illinois Business Corporation's Act for failing to provide a share-

David Golin

Jason Gordon

Whitney Harrell

Steven Malitz and Daniel Schlade obtain victory for junior lender and mortgagee

On August 24, 2006, the senior lender loaned a substantial sum to the borrower and took back a mortgage secured by the subject property. One day later, the same borrower obtained a loan from our client and gave a second mortgage. However, the client “won the

Kurt Heinz

Phillip Hudson, III

Stephen Hunt

A r n s t e i n & L e h r U p d at e

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race” to the recorder’s office, recording its mortgage on September 5, 2006. The senior lender did not record its mortgage until October 2006. Thereafter, the borrower defaulted on the two loans and left the country, leaving only the subject property to compensate the two lenders. As a result of the property condition and the downturn in the real estate market, the value of the subject property was less than the amount owed to the senior lender. The senior lender filed its foreclosure suit on December 29, 2006 through its first set of attorneys. The senior lender’s attorneys failed to name our client as junior lender because they thought our client had a senior mortgage based on its prior recording of its mortgage. On April 6, 2007, Malitz and Schlade filed a foreclosure suit on behalf of our client, naming the senior lender as a defendant. The senior lender appeared through a second set of attorneys, who defended the case by arguing that the senior lender had priority. Specifically, the senior lender contended that our client had actual notice of the first mortgage (even though the client recorded its mortgage first.) Discovery revealed that this was likely a valid affirmative defense, and if forced to go to trial, the client almost certainly would have been relegated to a junior position (i.e., it would receive no money at a foreclosure sale.) That said, when Malitz and Schlade filed the client’s foreclosure action, they both expected the senior lender’s two sets of attorneys to consolidate the two foreclosure cases and press the “priority” defense. However, they never did so and it became clear to Malitz and Schlade that the senior lender’s various attorneys had made a critical error. Immediately, Malitz and Schlade devised a strategy to extend the client’s foreclosure suit so that the senior lender would foreclose its own mortgage, without foreclosing the client’s mortgage. Malitz and Schlade sought to force the senior lender to “shoot itself in the foot.” The strategy worked perfectly. Unbeknownst to the senior lender’s second set of attorneys, on March 4, 2008, the first set of attorneys foreclosed the senior lender’s mortgage, without touching or impacting the client’s mortgage. Malitz and Schlade sprang this fact on the second set of attorneys, who were left scrambling and immediately requested a settlement conference. Of particular note, the senior lender had spent the previous year adamantly refusing to entertain any settlement talks. The settlement conference resulted in a very favorable buyout for the client, which most likely had no right to any payout on its mortgage. There were a number of important lessons from this case—the key one being that mortgage foreclosures are not routine matters. Many

banks and attorneys believe that foreclosures are “form” cases. However, treating a foreclosure as routine can have devastating results. In this case, the senior lender and its attorneys made a number of mistakes. First, they failed to properly review all of the documents on the subject property’s title tract. Second, the senior lender and its attorneys failed to communicate. All of the information needed to protect the senior lender could have been obtained with a simple phone call, or even a review of public records on the Internet. Malitz and Schlade seized on these failures, and turned them into a victory for their client.

Malitz, Hurwitz and Knisley defend client against Las Vegas developer Partners Steven Malitz and Joel Hurwitz, along with Associate Jonathan Knisley, obtained an amazing result for their real estate investor clients. In 2005, the clients contracted to purchase investment condominiums in the robust Las Vegas real estate market offered by a large Chicago developer. Both before and after contract, the developer's agents and marketing brochures promised that the development would consist of two, identical towers, and that the purchase prices for Tower I units would be far less than the purchase prices for identical Tower II units. In light of the higher purchase prices for Tower II units, our clients were promised that they would garner tremendous upside in purchasing units in Tower I. Developer's agents further promised that the development would be a rare, stand-alone residential community, with no condotels, gaming or restaurants. In late 2007 upon receiving notices to close, the clients learned that a second tower would not be constructed and that the Tower II land had been sold off for a condo hotel, restaurant and gaming. The clients then sought assistance from Malitz in terminating the real estate contracts. The real estate contracts signed by our clients plainly read that pre-contract promises from the developer and its agents were not part of the contract, that the clients were purchasing one unit in only one tower, and that the developer had the right to build or not build at its whim. Finally, the contract documents provided that if our clients refused to close, they would forfeit their earnest money and lose the right to purchase the units. In demanding rescission, Malitz, Hurwitz and Knisley argued that had the developer disclosed to the clients that Tower II would not be built and that their "neighbors" would be a casino, hotel and restaurant, they would have rescinded long ago, before the deadline to do so expired. Malitz' team further argued that the real estate contracts required that the developer give notice of such material modifications to the offering such that our clients could rescind.

Attorneys featured in this issue

Joel Hurwitz w w w. a r n s t e i n . c o m

Arthur Janura

Norman Jeddeloh

Jonathan Knisley

Laura Lau Marinelli

Samuel Levine

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Malitz further argued that as a result of massive cost overruns, as far back as 2005 the developer knew that Tower II would not be built. Under threat of bringing a class action suit for fraud, Malitz persuaded one of the developer's officers to meet with the clients, and thereafter forced the developer to terminate the real estate contracts and refund a large portion of the earnest money. In obtaining this result, the clients avoided purchasing condominium units that had drastically fallen in value, and paying large mortgages, taxes and assessments on what turned out to be poor investments. Further, in receiving back their earnest money, the clients now had substantial sums to invest in other projects. Finally, the firm's clients were the only ones who avoided closing on units in a doomed market.

New additions

Two associates join Fort Lauderdale office Attorneys Natalie Guerra and Gilda Romano recently joined Arnstein & Lehr’s Fort Lauderdale office as associates. Guerra is a member of the firm’s Litigation Group and will concentrate in municipal law. She is a graduate of the University of Miami and University of Florida Levin College of Law. Throughout her undergraduate career and as a summer associate during law school Guerra worked for the United States Securities & Exchange Commission. Romano is also a member of the firm’s Litigation Group and will concentrate her practice in the area of complex commercial litigation. She is a graduate of the University of Florida and the University of Florida Levin College of Law. During law school she received her Family Law Certificate and was a Children’s Fellow.

Michelle Novick joins Chicago office, Bankruptcy Group

Stephen Needham joins Chicago office

New Chicago Partner Michelle Novick comes to Arnstein & Lehr LLP from the firm of Thompson Coburn LLP, where she was also a partner. Novick concentrates her practice in the area of bankruptcy. She advises, protects and litigates on behalf of banking, trade creditor and commercial clients.

Attorney Stephen Needham recently joined Arnstein & Lehr as an associate in our Chicago office. Needham is a member of the firm’s Real Estate and Condominium & Community Association practice groups. He is a graduate of Kent State University and ClevelandMarshall College of Law.

Novick received her bachelor’s degree in Finance from the University of Illinois, and her J.D. from the University of Illinois College of Law. She is a member of the board of directors of the Chicago Chapter of Risk Management Association, an organization focused on managing risk in the banking/credit industry.

Fort Lauderdale office strengthens bankruptcy practice with addition of Stephen Hunt, David Ray Attorneys Stephen Hunt and David Ray recently joined the firm’s Fort Lauderdale office. Hunt joins the firm as a partner and board certified bankruptcy lawyer. He is a graduate of Georgetown University and Seton Hall University School of Law. He has extensively spoken and published for a variety of associations and publications on bankruptcy issues. Ray joins the firm as an associate attorney concentrating his practice in bankruptcy litigation from the law firm of Genovese, Joblove & Battista, P.A. He is a graduate of Florida State University and Nova Southeastern University’s Shepard Broad Law Center.

Georgia Logothetis

Steven Malitz

Robert McKenzie

Honors and appointments Joel Hurwitz elected president of Township High School District 113 Joel Hurwitz, a partner in the Chicago office, was recently elected president of Township High School District 113 Board for the 2008-2009 term. The Township High School District 113 board oversees Deerfield High School and Highland Park High School, both located in the North Shore area of Chicago.

Jimmy Chatz celebrates 50 years of practice Chicago Partner Jimmy Chatz was feted at a reception in his honor on November 3 to celebrate his 50th year in the practice of law. Chatz is co-chair of the Bankruptcy, Creditors' Rights, and Restructuring Practice Group. He also practices in the areas of corporate law and business law, mergers and acquisitions, financial planning, and commercial litigation.

Ronald Menaker

Mark Miller

Hal Morris

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He has been an active member of several organizations, serving on the Commercial Law League of America (president 1984-85) and as a member of its board of governors. He is a former member of the Political Action Committee of the Illinois State Bar Association (ISBA) and is a current member of its Special Committee on Certification. Since 1988, he has been a member of the ISBA General Assembly and also served on the Commercial, Banking & Bankruptcy Law Section Counsel Committee. He served as chairman of the Bankruptcy and Reorganization Committee of the Chicago Bar Association and was a founder and vice president of the American Bankruptcy Institute. Chatz has written extensively on bankChicago Partner Jimmy Chatz and his wife ruptcy, creditors' rights Vera welcome guests celebrating his 50 years and the Uniform Comin the practice of law mercial Code and also served as a visiting lecturer in the J.L. Kellogg Graduate School of Management at Northwestern University and as an adjunct professor of Law at John Marshall Law School.

Jeff Shapiro nominated to Council on Litigation Management Miami Partner Jeff Shapiro was recently nominated for membership in the Council on Litigation Management by his client, Kevin Quinley, senior vice president with Medmarc Insurance Group. The Council is a nonpartisan alliance committed to furthering the highest standards of litigation management. Selected attorneys and law firms are extended membership by invitation only, based on nominations from CLM Fellows. Each member attorney must complete two hours of Council-developed CLE litigation management training annually.

Samuel Levine elected to ISBA General Assembly Chicago Partner Samuel Levine has been elected to the Illinois State Bar Association General Assembly. The assembly is the govern-

ing body of the ISBA. Levine has been appointed to the ISBA Real Estate Section Council, ISBA Commercial Banking and Bankruptcy Section Council, and ISBA Committee on Legislation.

John Ropiequet elected president of North Shore United Way Chicago Partner John Ropiequet has been elected to the position of president of United Way of the North Shore, which serves Chicago's northern suburbs from Evanston to Lake Bluff, for 2008-09.

Loretta O'Keeffe appointed to Ethics Committee, Leadership Institute Tampa Partner Loretta O'Keeffe was recently appointed to both The Florida Bar Professional Ethics Committee and the Hillsborough County Bar Association's (HCBA) Leadership Institute. She will serve a three-year term on the Professional Ethics Committee. It is charged with answering ethics inquiries from members of The Florida Bar and reviews informal advisory opinions issued by ethics department attorneys. The committee publishes formal advisory opinions to guide members in interpreting and applying the ethics rules. The HCBA Leadership Institute was created to identify and develop young attorneys of diverse backgrounds who have the potential to develop into future HCBA and Tampa community leaders. The eight month program consists of seven learning modules and culminates with the completion of a community service project chosen, managed, and completed by Leadership participants.

Phil Hudson to chair Beacon Council Aviation Committee Miami Partner Phil Hudson was recently nominated by the MiamiDade Beacon Council to chair its Aviation Committee. The board of directors will ratify nominations during their late September Board meeting. The Beacon Council is Miami-Dade County’s official economic development association serving to facilitate business investment and promote Miami and Dade County as an ideal location for businesses to operate.

Attorneys featured in this issue

Cynde Hirschtick Munzer w w w. a r n s t e i n . c o m

Stephen Needham

Steven Newburgh

Michelle Novick

Loretta O’Keeffe

Joseph Ourth

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Toby Eveland appointed to ISBA diversity task force, board of Lesbian and Gay Bar Association Toby Eveland, an associate in the Chicago office, was appointed to serve on the Illinois State Bar Association's Task Force on Diversity. The Task Force was created to expand opportunities for minority attorneys to join the ISBA and to become involved in leadership in the legal community. Additionally, Eveland was elected to the board of directors for the Lesbian and Gay Bar Association of Chicago (LAGBAC). Through its educational initiatives, LAGBAC seeks to increase the awareness of the public, the legal profession, and the judicial system about legal issues of particular concern to the gay and lesbian community.

Art Janura named chairman of Northwest Suburban Bar Association committee Chicago Partner Arthur Janura has been named chairman of the Local Government Committee of the Northwest Suburban Bar Association.

Steven Malitz named one of 40 Illinois Attorneys Under 40 to Watch Chicago Partner Steven Malitz was recently recognized by Law Bulletin Publishing Company as a 2008 recipient of their 40 Illinois Attorneys Under 40 to Watch. Malitz was recognized by attorneys, judges, and opposing counsel outside of Arnstein & Lehr for his skill and achievement. A full-page profile on Malitz’ career appeared in a supplement to the September edition of Chicago Lawyer and Chicago Daily Law Bulletin.

Franklin Zemel appointed to American Arbitration Association’s national roster of arbitrators Fort Lauderdale Partner Franklin Zemel was recently appointed to the American Arbitration Association’s (AAA) national roster of arbitrators. The AAA provides services to individuals and organizations who wish to resolve conflicts out of court. It is the nation's largest full-service alternative dispute resolution provider, addressing disputes involving, but not limited to, employment, intellectual property, consumer, technology, health care, financial services, construction, and international trade conflicts.

Gilda Romano

John Ropiequet

Tracey Salinski

In the news Tampa office hosts Leukemia Society Light the Night reception, donates to charity The Tampa office of Arnstein & Lehr recently hosted a reception for the Suncoast Chapter of the Leukemia & Lymphoma Society (LLS) to celebrate its Light the Night Walk. Light the Night is The Leukemia & Lymphoma Society's nationwide evening walk. The office hosted clients and Leukemia Society representatives. The Walk was held November 8 at George M. Steinbrenner Field in Tampa. Participants Tampa attorneys present the Suncoast Leukemia in the walk carried il- & Lymphoma Society with a $5,000 donation to their Light the Night fundraiser. luminated balloons to celebrate and commemorate lives touched by cancer. Funds raised support their mission to cure leukemia, lymphoma, Hodgkin's disease and myeloma, and to improve the quality of life of patients and their families. During the reception, guests listened to the inspiring story of Samantha Lee, the Suncoast Chapter Girl of the Year, who shared her story on her battle with leukemia. Coordinating Partner Robin Trupp then presented a $5,000 check to LLS representatives on behalf of the office and firm.

Hudson welcomes Florida lieutenant governor to Miami economic development partnership Miami Partner Phil Hudson provided introductory remarks for Florida Lieutenant Governor Jeffrey Kottkamp who spoke on July 25 at the Biltmore Hotel in Coral Gables. Kottkamp was invited to speak to The Beacon Council, Miami-Dade County’s official economic development partnership by Hudson and Arnstein & Lehr. The Beacon Council's mission is to "facilitate business investment

Daniel Schlade

Jeff Shapiro

A r n s t e i n & L e h r U p d at e

Mark Spognardi

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and promote South Florida as a business locale." Hudson serves as a member of its board of directors and is vice chair of The Beacon Council's aviation committee. At his invitation, Lt. Governor Kottkamp met privately with The Beacon Council's board of directors and then addressed the full membership on current south Florida economic development initiatives being undertaken by the state.

Arnstein & Lehr hosts Just the Beginning Foundation Event On June 25 Arnstein & Lehr's Chicago office participated in Just the Beginning Foundation's Summer Legal Institute Program. Just the Beginning Foundation (JTBF) is a non-profit pipeline organization supporting students of color and other underrepresented groups with free educational and mentoring programs as they move towards a legal career. The students took a tour of the office, listened to a presentation explaining the firm's business, and interacted with some of the firm's attorneys. Bob Cichocki, a partner and the chair of the firm’s Diversity Committee, lead the discussion that touched on the importance of teamwork and commitment to the success of a law firm.

Ray Werner appointed to ABA Commission on Racial and Ethnic Diversity

tion. Miller worked with Olympic officials to deal with rules or issues that arose during the archery competitions. He also served as an ambassador to the 2016 Olympic games, in which Chicago is a candidate city

Steven Daniels attends Anti Defamation League leadership conference, honored for ADL work West Palm Beach Partner Steven Daniels recently attended the Anti Defamation League's (ADL) 2008 Shana Amy Glass National Leadership Conference in Washington, DC. ADL leaders from across the country attended a series of briefings from legislators, civil rights leaders, ambassadors and foreign policy experts. During the conference, the ADL Florida Delegation discussed support for Israel, religious liberty, and comprehensive immigration reform. Daniels serves on ADL’s National Commission and the Florida Executive Committee and regional board. He is also the co-chairman of the Florida International Affairs Committee. In recognition of his significant involvement in ADL, Daniels was recently recognized as the ADL’s Table Honoree at the Palm Beach Chapter of the Association of Fundraising Professionals National Philanthropy Day luncheon.

Robin Trupp profiled in Tampa Bay Business Journal

Chicago Managing Partner Ray Werner recently completed his term on the Board of Governors of the American Bar Association and also as a member of its Audit Committee. ABA President Tommy Wells appointed Werner to sit as a commissioner on its 2008-09 Commission on Racial and Ethnic Diversity in the Profession. The Commission’s stated goal is to promote the full and equal participation in the legal profession by minorities, women, and persons with disabilities.

An article on the personal life and legal career of Tampa Partner Robin Trupp appeared in the October 17 issue of the Tampa Bay Business Journal’s Executive Profile. The article, in question and answer format, addressed his thoughts on business, law, and life growing up and living in Tampa.

Mark Miller attends Summer Olympic games as FITA council member

Arnstein & Lehr recently assisted a student mentored by Chicago Associate Laura Lau Marinelli in raising funds to attend the upcoming Junior Presidential Youth Inaugural Conference (JrPYIC) as a Presidential Youth Inaugural Conference Scholar. The firm agreed to match any donation made by our employees up to $1,600 in an effort to raise the $3,200 needed for the student to attend the Conference. The firm exceeded the fundraising goal, raising $3,306.

Chicago Partner Mark Miller attended the 2008 Olympics in Beijing, China as a council member of the International Archery Federation (FITA). He currently serves as chairman of the Constitution of Rules Committee, an elected position within the federa-

Arnstein & Lehr matches employee donations, sends student to leadership conference

Attorneys featured in this issue

Paul Starkman

w w w. a r n s t e i n . c o m

David Sugar

Howard Swibel

Jason Tremblay

Robin Trupp

Justin Weisberg

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Held every four years in January following the presidential election, the JrPYIC provides scholars with an opportunity to take part in and share in the excitement and ceremony of the inauguration of the president and vice president of the United States.

Firm hosts Webinar on IRS’ investigation of currency transactions and foreign bank accounts Chicago Partners Bob McKenzie and Bruce Balonick, along with Larry Slonina, vice president of U.S. Advisory Services, Inc., presented a Webinar on September 18 for more than 60 individuals from across the country concerning the Internal Revenue Services program of aggressively investigating currency transactions and foreign bank accounts. The Webinar discussed the currency reporting rules and the best ways to assist clients in meeting their obligations and avoid the penalties now imposed by the IRS which includes both asset forfeiture and prosecution. It also covered compliance issues for foreign bank accounts held by Americans.

Arnstein & Lehr hosts security and legal strategies seminar for college administrators, educators On September 18 the Arnstein & Lehr Higher Education Practice Group partnered with the strategic security firm of Hillard Heintze LLC to present a seminar on the security and legal strategies for a safer business and college campuses. During the seminar Hillard Heintze and Arnstein & Lehr provided close to 50 educators and administrators with an overview of steps they should consider taking to drastically reduce the probability of such a tragedy. They also addressed ways to assess those students exhibiting behavior that may spark a violent outburst, while minimizing the university's exposure to lawsuits. Arnstein & Lehr partners involved in the seminar included Patrick Cotter, Kurt Heinz, Norman Jeddeloh, Joseph Ourth, and Jason Tremblay.

Books, journals and articles Samuel Levine authors construction article Samuel Levine, a partner in the Chicago office, recently authored an article entitled “20 Questions: Things Subcontractors Always

Wanted to Ask About Mechanics Liens But Were Afraid to Do So” for the Summer 2008 issue of Construction Connection, the official publication of the Association of Subcontractors and Affiliates (ASA). The article simplifies the Mechanics Lien Act, utilizing a question and answer format.

Illinois Condominium Property Act updated for 2008-09 2 0 0 8 - 2 0 0 9 E D IT I O N

Chicago Partners Allan Goldberg and David Sugar recently updated The Illinois Condominium Property Act, a publication of all Illinois statutes concerning the ownership in and rights and responsibilities of parties under the condominium form of ownership of property. The 2008-09 edition includes a summary and detailed explanation of all new condominium legislation taking effect in 2008 and 2009.

Includes a summary and detailed explaination of all new condominium legislation taking effect in 2008 and 2009

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West Publishing updates Paul Starkman employment arbitration book West Publishing recently published updates to a book co-authored by Chicago Partner Paul Starkman. Written as a comprehensive, how-to practice guide, Employment Arbitration: Law and Practice, provides a background of employment arbitration and covers the pros and cons of turning to mandatory arbitration or other alternative dispute resolution systems for resolution of employment disputes. It also explains how to adopt and draft effective arbitration agreements, how to arbitrate employment disputes, and details the practical aspects of litigation surrounding challenges to a mandatory arbitration policy and litigation after an arbitration award. The updates supplement the book with new case law and legislative developments affecting employment arbitrations, as well as new forms and sample documents. They also examine recent trends and new statistical studies of employment arbitration programs.

Pat Cotter and Ron Menaker write IICLE chapter on Jury Selections, Instructions Chicago Partners Pat Cotter and Ron Menaker recently coauthored the chapter Jury Selections & Instructions in the Illinois Institute for Continuing Legal Education's (IICLE) 2008 Federal Criminal Practice book. Federal Criminal Practice covers all aspects of defending a client in federal courts.

Raymond Werner

Franklin Zemel

Their chapter includes instruction on peremptory, constitutional, and statutory challenges, qualifications for jury service, challenges for cause, voir dire, anonymous juries, methods of jury selection,

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questioning, selection of alternate jurors, types of questions, highly publicized cases, jury instructions and, equal access to juror information.

Christina Lutz publishes article for The Seventh Circuit Review Chicago Associate Christina Lutz recently published a scholarly article analyzing the Seventh Circuit's recent decision in African American Slave Descendents Litigation. The Seventh Circuit Review is a publication of Chicago-Kent College of Law. Chicago Partner Hal Morris founded this publication and remains the professor responsible for the publication of the Review and the Honors Seminar associated with it. Lutz’ article and The Seventh Circuit Review can be found at www.kentlaw.edu/7cr.

Bob Butters authors intellectual property chapter Chicago Partner Bob Butters wrote a chapter for "Common Issues in IP Law," published by Thomson Reuters/Aspatore. Butters’ chapter, The Use of Copyright Law and Effective License Agreements to Protect Web-Accessible Databases reviews various cases, licensing agreements and confidentiality issues. The chapter is part of the critically acclaimed Inside the Minds series, which provides readers of all levels with proven business intelligence from C-Level executives from the world's most respected companies.

Paul Starkman co-authors article for Law Reporter Chicago Partner Paul Starkman recently co-authored an article entitled “Refueling Assistance for Drivers with Disabilities” that was published in the July/August issue of Mental and Physical Disability Law Reporter. It covered ADA/legal aspects of gas station responsibilities to drivers with disabilities seeking assistance to refuel their gas tanks. The article asserts that for those with manual and mobility-related disabilities, there is much more we can and should expect from gas station owner/operators.

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This newsletter provides information on current legal issues. The information should not be construed as legal advice or opinion in particular situations or applications. © 2008 w w w. a r n s t e i n . c o m