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LAW MEETINGS

Americas Regional Yields Good Meeting and Goodwill

The 2006 LAW Americas Regional Meeting was held in New Orleans, Louisiana, on April 20-22, and hosted by local LAW member Lugenbuhl, Wheaton, Peck, Rankin & Hubbard. The meeting was attended by 41 delegates, 22 accompanying persons, two people from Schmidt Marketing, and six observers from three prospective member firms.

Best Practices sessions were conducted with guest speaker Todd Hauschildt of West Publishing discussing remote server locations and emergency preparation, and Stuart Douglas of Interwoven, Inc. and Sam Shipley of Ulmer & Berne, LLP discussing document management. In addition, small groups were formed to discuss various Leads and Needs topics and ideas.

On Friday April 21, 2006, representatives of LAW presented a check to Dr. Michael White, jazz musician and Xavier music professor. Acknowledging the trials that myriad musicians have faced losing homes and work opportunities to the devastation of Hurricane Katrina, LAW and Lugenbuhl, Wheaton, Peck, Rankin & Hubbard made a joint contribution to the Jazz Foundation of America Katrina Relief Fund. The Jazz Foundation of America has been actively involved in supporting jazz musicians whose lives were devastated by Katrina.

Dublin Serves as Host to Regional Meeting

Amorys, our LAW member in Dublin, hosted the 2006 Europe, Africa and Middle East Regional Meeting at the Westbury Hotel in Dublin, Ireland on May 11-13, 2006. The meeting had the highest attendance of any European Regional meeting, with 53 delegates and 14 accompanying persons, six observers and two accompanying persons, and one from Schmidt Marketing.

During the meeting, LAW welcomed the two newest members of the region: Kovacs Reti Szegheo of Budapest, Hungary; and Rime & Co. of Oslo, Norway. Guest speakers presented on the following topics: Immigration Tips for European Business Owners; Tax Benefits of Investing in Ireland; Investment in Ireland; Irish Property Market; and Recent Developments in Competition Law – Private Sanctions and Article 82. There were also Leads and Needs breakout sessions.

Following the meeting on Saturday, many enjoyed golf at the Druids Glen Golf Course or a tour of the historic ruins at Glendalough. That evening there was an optional dinner at Johnny Fox’s Pub with hooley night entertainment.

MEMBER NEWS

Ecuador Firm is Newest LAW Member

Lawyers Associated Worldwide is pleased to announce our newest member: Corral & Rosales. Founded in 1975, Corral & Rosales has five partners, 13 additional lawyers, and 37 total lawyers and staff. The firm has a broad practice in commercial and corporate law and litigation, with particular expertise in the areas of mergers and acquisitions, financing, aviation, pharmaceuticals, intellectual property, tax and labor. For further information, contact:

Corral & Rosales
Francisco Robles 653 Y Av. Amazonas
Edificio Proinco Calisto, Piso12
P.O. Box 17-03-176
Quito, Ecuador

Phone: + 593 2 254-4144
Fax: + 593 2 250-3743
Web Site: www.corralrosales.com
Primary Contact: Xavier Rosales
Email: xavier.rosales@corralrosales.com

Chinese Member Relocates Shenzhen Office and Launches Debt Collection Department

Due to business expansion, RayYin & Partners, our LAW member in Beijing, China, is pleased to announce the relocation of its Shenzhen office. The office has moved into Noble Center in the Futian District of Shenzhen; the central business district of Shenzhen has relocated from the Luohu district to the Futian District.

RayYin has also formally launched a new Debt Collection Department. The department, comprised of 10 lawyers, will be headed by Mr. Qunjun Hong. Mr. Hong, a pioneer in professional collection services, has provided debt collection services for credit card centers of many banks, including China Merchant Bank. Recently, EBAY ENET engaged RayYin to provide services.

Jacoby Donner Attorneys Named "Pennsylvania Super Lawyers 2006®"

Philadelphia LAW member Jacoby Donner has the distinction of having four of its attorneys mentioned in the June issue of Philadelphia Magazine and in the annual magazine Pennsylvania Super Lawyers. Law and Politics asked 36,000 lawyers across the state to nominate “the best lawyers they had personally observed in action,” and the Super Lawyer designation is given to only 5% of the state’s lawyers. Jacoby Donner is thrilled to have that moniker bestowed its lawyers, including frequent LAW meeting attendees Henry J. Donner and B. Christopher Lee.

Kotz Sangster Announces New COO

Kotz, Sangster, Wysocki and Berg, P.C., our LAW member in Michigan, is pleased to announce that Gary Osing has joined the firm as its Chief Operating Officer. Mr. Osing previously worked for law firms in Alabama and Tennessee, and was hired to help the firm implement its strategic plan and develop practice groups.

Broad and Cassel Lawyers Receive Recognition

Continuing a series of recent awards and recognition, Florida LAW member Broad and Cassel is pleased to announce two prominent recognitions. First, the 2006 edition of Chambers USA Guide to America’s Leading Business Lawyers features 10 Broad and Cassel attorneys and four practice groups. Chambers USA: A Guide to American’s Leading Business Lawyers is an independent, objective, research-based legal directory. The four Broad and Cassel Practice Groups noted by the publication include: Construction; Healthcare; Insurance; and Real Estate.

In addition, Broad and Cassel is pleased to announce that 31 attorneys have been recognized as "2006 Florida Super Lawyers," by their peers in the legal community. Following an extensive process of balloting, blue ribbon panel review and independent research compiled by Law & Politics magazine, only 5% of the attorneys in Florida have been selected as Florida Super Lawyers in the inaugural year of the award. Broad and Cassel Super Lawyers include Patricia Lebow, the primary LAW contact from the firm.

Beit-On, Shem-Tov Law Offices Receives Large Fee for Receivership

The District Court in Haifa recently ruled that Adv. Ishai Beit-On will receive a 5.5 million NIS fee for his activities as a Receiver of a construction project in Kiryat Motzkin & Nahariya. The judge explained his decision to award the fee based on the “talent, initiative, determination and effort that Adv. Beit-On demonstrated…after the projected encountered many difficulties.” He also explained, “There is no doubt that but for the Receiver's skills, determination and initiative, we could not have completed this receivership in the manner it was conducted.” As a result of the completion of the project, the creditors were paid a sum of 58 million NIS and 32 million NIS in a refund of bank guarantees.

Ishai Beit-On is a founder of the Beit-On, Shem-Tov Law Offices, a LAW member in Israel. He specializes in company dissolutions, receivership and banking law.

LAW New York Member Brings Securities Fraud Claim

Todtman, Nachamie, Spizz & Johns, our LAW member in New York, recently assisted certain purchasers of common stock of Defense Technology Systems, Inc. (“the Company”) to meet the heightened pleading requirements to bring a securities fraud claim under section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder by the SEC and also common law fraud. The plaintiffs alleged that the Company was an “empty shell,” with no employees, infrastructure, product, or services. In a nearly forty-page complaint with more than a dozen exhibits, the plaintiffs detailed the elaborate scheme of certain defendants who induced the plaintiffs to purchase worthless stock at inflated prices, while the defendants dumped their stock into the hands of the plaintiffs, resulting in huge profits for the defendants at the plaintiffs’ expense. Judge Shira A. Scheindlin of the United States District Court for The Southern District of New York denied the Company’s motion to dismiss in its entirety.

Chris Lee Honored by Charter School

B. Christopher Lee, Managing Shareholder of Jacoby Donner P.C., our LAW member in Philadelphia, was recently toasted by members of the Philadelphia construction, real estate, legal, architect and design communities for his service as Chairman of the Board of Trustees of the Charter High School for Architecture + Design (CHAD). CHAD is the first charter high school for architecture and design in the nation. It is a public, tuition-free, independent school serving grades 9-12. During Chris’ two-year tenure as Chairman, the school saw enrollment increase, a new head of the school hired, and strategic plans for growth and excellence in the future set in motion.

Update on Howard Gould Trial

Last year, we included a feature article on Howard Gould, from LAW member firm Finestone & Richter in Los Angeles. Howard reports that a case in which he was involved at the time has now settled while on appeal. The matter was a commercial non-disclosure case involving a historic property in the San Fernando Valley which included a former stage coach stop where Wyatt Earp once lived. The seller failed to disclose to Howard’s client several important matters, including a covenant with the City of Calabasas requiring off-site parking for some of the restaurant operations. The covenant never was recorded and did not come up in the preliminary title report when the client bought the property. Howard engaged in a trial lasting about 10 days and then post-trial motions to obtain the judgment, allowing him to collect over $390,000 for the client. For more information, contact Howard at 310 575-0800, Ext. 249, or hgould@frlawcorp.com.

LAW and World Cultures - A Real Opportunity

I am writing this month’s column having just listened to a BBC news program. It discussed Israel’s most recent incursions into Lebanon and Gaza in response to the kidnapping of its soldiers and the shelling and rocket attacks on its cities. The discussion was preceded by news reports of the recent bombing of Mumbai’s rail line; the launching of seven missiles by North Korea in the general direction of South Korea and Japan; the disruption by U.S. and foreign authorities of groups planning to bomb tunnels and subways in New York; the one year anniversary of the 2005 train and bus bombings in London; and the daily array of casualties emanating from sectarian violence in Iraq.

What a world we live in! It is a sad commentary on the state of global affairs for our little old planet to have so much airtime and news print consumed by a never ending series of stories where diplomatic and policy failures have led to warfare and violence – much of is fueled by poverty and cultural and religious differences that have been exploited by fundamentalists of all stripes. Against that background, I take great solace in organizations like Lawyers Associated Worldwide.

Being involved in LAW has many benefits, about which we write and speak frequently. However, one benefit that is not mentioned nearly enough is the ability to work daily with lawyers from all over the world who “check their politics at the door.” Whether they are from Lima or Limassol, Brisbane or Boston, Tokyo or Trollhattan, they all share the same common goals of improving their legal practices and better serving their clients in a global market. With the possible exception of rugby and football rivalries (e.g., I am not sure whether Peter Johns (from Paris) is still speaking to Carlo Maccallini (from Rome) after the Italians beat the French in the World Cup finals), I have never witnessed politics or ideologies getting in the way of the business activities and personal friendships developed in LAW, and I have found that to be one of the very best features of being an active member in this organization.

Where else can you communicate regularly, openly, honestly and respectfully with other people whom you have come to know who reside in 47 (at this point in time) different countries? Our firms are filled with men and women from a variety of cultures, faiths and political and ethnic backgrounds. Yet, we are determined to join together in LAW for a common purpose – to build our clients’ businesses and our legal practices, while at the same time learning a great deal about a wide variety of cultures and people around the world.

We are all lawyers, trained to be thoughtful advocates for our clients. We also tend to be pretty good at observing other people, analyzing their motivations and concerns, and trying to find creative, win-win situations in adversarial settings. Getting together with other colleagues in LAW, and learning about their social and business cultures “back home,” is a rare opportunity for most people. Yet, we structure our organization and its activities and rules to encourage our members to join together at least twice a year. We are very fortunate indeed.

Our delegates and guests from five different continents will be coming together again soon in Beijing this October for LAW’s 18th Annual General Meeting. I look forward to learning more about the culture, history and business opportunities in China’s powerhouse emerging economy. But I also know that my understanding of the many other countries that take part in this organization will continue to grow by attending this meeting, enabling me to return home with better insight into other cultures that I can share with my colleagues and clients, and put to work in my daily activities.

See you soon in Beijing!

Sincerely,

Christopher C. McCracken
Chairman
Lawyers Associated Worldwide

LEGAL UPDATE

New Free Trade Zones Regime in Colombia

LAW member Jose Lloreda Camacho & Co. from Colombia has provided the following update for LAW members:

Law 1004, established on December 30, 2005 provides a new legal framework for free trade zones. The law establishes a unique income tax tariff of 15% that applies to the free trade zone users, as of January 1st, 2007, without a distinction regarding the origin of the income. The general income tax rate of 35% will still be applicable to “commercial users” of these zones.

Based on the commitments with the World Trade Organization, Law 1004 modifies the regime valid through 2006, which establishes a full income tax exemption for income obtained in the development of industrial activities inside the zone. Furthermore, Law 1004, 2005 incorporated some amendments to the Tax Statute in matters related with the free trade zones such as:

1. Elimination from of remittance tax withholdings for cross-border payments as of January, 2007;
2. Transactions of “industrial users” with related parties disregarding fair market value will be rejected and penalized, and
3. Exemption for VAT purposes of the sale of raw materials and other goods to entities in free trade zones.

For further information, contact Jose Lloreda Camacho & Co. at:

JOSE LLOREDA CAMACHO & CO.
Calle 72 No. 5-83 Piso 5
Bogota, D.C.
Telephone Numbers (57)-(1)-326-4270/(57)-(1)-606-9700
Fax Numbers (57)-(1)-326-4271/(57)-(1)-606-9701
www.lloredacamacho.com
jllcco@lloredacamacho.com