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Virginia Lawyer VOL. 68/NO. 6 • April 2020 VIRGINIA LAWYER REGISTER The Official Publication of the Virginia State Bar The Corporate Counsel Issue Law Practice During COVID-19 U.S. Patent Law: Going Global Lawyers Ease Eviction Crisis
Virginia Lawyer April 2020 The Official Publication of the Virginia State Bar Volume 68/Number 6 Features CORPORATE COUNSEL SECTION Noteworthy Introduction 19 VSB NEWS by Mark Newcomb 40 Highlights of the February 29, 2020, How to Succeed as In-House Counsel 20 Virginia State Bar Council Meeting by Kelly C. Scanlon 40 Annual Criminal Law When the Going Gets Tough: Hire a Freelancer 21 Seminar by Jessica Link Martyn 41 Vote for Bar Council Keys to Getting Your Foot in the Door of a Corporate 22 41 Bar Leaders Institute Client and Not Locking Yourself Out 42 David D. Masterman by William A. Lashley III Receives the 2020 What Makes an Outside Counsel TOP CLASS? 26 Family Law Lifetime by Nicole Upshur Achievement Award Examining the Relationship Between In-House and 30 42 Brian M. Hirsch Outside Counsel Receives Family Law by Naoina Gartee and Mark Newcomb Service Award Making Pro Bono Work Inside a Corporation: Freddie Mac 32 43 Lawyer Well-Being by Alicia S. Myara and Luise M. Welby 44 In Memoriam LAW PRACTICE DURING COVID-19 CARES Act: Small Business Paycheck Protection Program and Loan 14 Columns Forgiveness — Assistance Opportunities for Law Firms and Their Clients 8 President’s Message During COVID-19 10 Executive Director’s Message by Christen Church and Max Wiegard 12 Bar Counsel’s Message Working from Home Puts Your Firm’s Information at Risk 16 by Alex Nette and Stephen Thompson 13 Ethics Counsel’s Message How COVID-19 and a Recession Could Impact Malpractice Claims 18 45 Access to Legal Services by Mark Bassingthwaighte 46 Law Libraries 47 Technology and the Future Practice of Law GENERAL INTEREST 62 The Last Word The Surprisingly Broad Reach of U.S. Patent Law 36 by Stephen McBride Two Years After Eviction Report, Richmond Lawyers Make Headway on 38 Departments the Numbers by Jackie Kruszewski 6 Forum 50 CLE VIRGINIA LAWYER REGISTER 58 Professional Notices 61 Classified Ads 53 Disciplinary Summaries 61 Advertiser’s Index 55 Disciplinary Proceedings 56 Notices: A Roundup of News from vsb.org Cover: The Corporate Counsel section met in Richmond in February. (L to R): Dave Newsome, Jr., Vice-Chair; Naoina Gartee, Immediate Past Chair; Mary Richardson; Mark Newcomb, Chair; Stephanie Gilliard; Ross Hays; Barbara Fisher; Frank Lynch; Dan Applewhite; George Washington, Jr. Not pictured: Adam Hark, Dustin Narcisse, Lily Engle. Photo by Deirdre Norman. Post production by Sky Noir Photography.
Virginia Lawyer Virginia State Bar The Official Publication of the Virginia State Bar 2019–20 OFFICERS 16th Circuit Marni E. Byrum, President R. Lee Livingston, Charlottesville Brian L. Buniva, President-elect Palma E. Pustilnik, Charlottesville Leonard C. Heath Jr., Immediate Past President www.vsb.org Karen A. Gould, Executive Director and Chief 17th Circuit Operating Officer Adam D. Elfenbein, Arlington Editor: Jennifer S. Golden, Arlington EXECUTIVE COMMITTEE Gregory T. Hunter, Arlington Deirdre Norman Marni E. Byrum, President Joshua D. Katcher, Arlington (dnorman@vsb.org) Brian L. Buniva, President-elect William H. Miller, Arlington Leonard C. Heath Jr., Immediate Past President Maryse C. Allen, Prince William 18th Circuit Creative Director: Ann B. Brogan, Norfolk Barbara S. Anderson, Alexandria Caryn B. Persinger Eugene M. Elliott, Roanoke Stacey Rose Harris, Alexandria (persinger@vsb.org) Eva N. Juncker, Falls Church John K. Zwerling, Alexandria Jay B. Myerson, Reston William T. Wilson, Covington 19th Circuit Advertising: LLM Publications Brian C. Drummond, Fairfax CONFERENCE CHAIRS AND PRESIDENT David J. Gogal, Fairfax Grandt Mansfield Conference of Local and Specialty Bar Richard A. Gray, Fairfax (grandt@llmpubs.com) Associations – Lewis A. Martin III Chidi I. James, Fairfax Diversity Conference – Chidi I. James Douglas R. Kay, Tysons Corner Senior Lawyers Conference – John D. Eure Daniel B. Krisky, Fairfax VIRGINIA LAWYER (USPS 660-120, ISSN 0899-9473) Young Lawyers Conference – Farnaz F. Thompson David L. Marks, Fairfax is published six times a year by the Virginia State Bar, COUNCIL Gary H. Moliken, Fairfax 1111 East Main Street, Suite 700, Richmond, Virginia Jay B. Myerson, Reston 1st Circuit Nathan J. Olson, Fairfax 23219-0026; Telephone: (804) 775-0500. Subscription Damian J. (D.J.) Hansen, Chesapeake Dennis J. Quinn, Tysons Rates: $18.00 per year for non-members. This material Wayne G. Travell, Tysons 2nd Circuit is presented with the understanding that the publisher Ryan G. Ferguson, Virginia Beach Edward L. Weiner, Fairfax and the authors do not render any legal, accounting, Steven G. Owen, Virginia Beach Michael M. York, Reston or other professional service. It is intended for use by Jeffrey B. Sodoma, Virginia Beach 20th Circuit attorneys licensed to practice law in Virginia. Because of 3rd Circuit R. Penn Bain, Leesburg Meredith B. Travers, Portsmouth Susan F. Pierce, Warrenton the rapidly changing nature of the law, information contained in this publication may become outdated. As 4th Circuit 21st Circuit a result, an attorney using this material must always Ann B. Brogan, Norfolk G. Andy Hall, Martinsville Gary A. Bryant, Norfolk research original sources of authority and update 22nd Circuit Neil S. Lowenstein, Norfolk information to ensure accuracy when dealing with Eric H. Ferguson, Rocky Mount 5th Circuit a specific client’s legal matters. In no event will the 23rd Circuit Thomas G. Shaia, Suffolk authors, the reviewers, or the publisher be liable for Eugene M. Elliott Jr., Roanoke 6th Circuit K. Brett Marston, Roanoke any direct, indirect, or consequential damages resulting J. Daniel Vinson, Emporia from the use of this material. The views expressed herein 24th Circuit 7th Circuit Eugene N. Butler, Lynchburg are not necessarily those of the Virginia State Bar. The Benjamin M. Mason, Newport News inclusion of an advertisement herein does not include 25th Circuit 8th Circuit William T. Wilson, Covington an endorsement by the Virginia State Bar of the goods Marqueta N. Tyson, Hampton or services of the advertiser, unless explicitly stated 26th Circuit otherwise. Periodical postage paid at Richmond, 9th Circuit Nancy M. Reed, Luray W. Hunter Old, Williamsburg Virginia, and other offices. 27th Circuit 10th Circuit R. Cord Hall, Christiansburg Charles H. Crowder III, South Hill 28th Circuit POSTMASTER: 11th Circuit William M. Moffet, Abingdon Dale W. Pittman, Petersburg Send address changes to 29th Circuit VIRGINIA LAWYER 12th Circuit D. Greg Baker, Clintwood P. George Eliades II, Chester MEMBERSHIP DEPARTMENT 30th Circuit 1111 E MAIN ST STE 700 13th Circuit Greg D. Edwards, Jonesville Dabney J. Carr IV, Richmond RICHMOND VA 23219-0026 Leah A. Darron, Richmond 31st Circuit Eric M. Page, Richmond Maryse C. Allen, Prince William Cullen D. Seltzer, Richmond Sushella Varky, Richmond MEMBERS AT LARGE J. Tracy Walker IV, Richmond Denise W. Bland, Eastville Henry I. Willett III, Richmond Atiqua Hashem, Richmond Eva N. Juncker, Falls Church 14th Circuit B. Alan McGraw, Tazewell Craig B. Davis, Richmond Lenard T. Myers Jr., Norfolk Virginia State Bar Staff Directory Stephanie E. Grana, Henrico Lonnie D. Nunley III, Richmond Marissa D. Mitchell, Henrico Frequently requested bar contact Patricia E. Smith, Abingdon 15th Circuit A. Benjamin Spencer, Charlottesville information is available online at Jennifer L. Parrish, Fredericksburg vacancy www.vsb.org/site/about/bar-staff. 4 VIRGINIA LAWYER | April 2020 | Vol. 68 www.vsb.org
Forum James Madison of some of the constitutional contriv- ances supported so energetically by One hates to belch at a garden party, Madison. Irony had nothing to do but the hagiographic biography of with it. James Madison in your February issue contained nothing about Madison’s eco- Hugh F. O’Donnell nomic dependence on stealing the lives St. Paul, Virginia and labor of other human beings com- monly known as slavery. One might think that is at least as important as knowing that like Johnny Cash, he pre- ferred to dress in black. In the last paragraph, the author Letters also suggests that the Civil War was an “ironical” contrast to Madison’s work Send your letter to the editor to: in support of the Constitution. In fact, norman@vsb.org or there are good arguments that the Virginia State Bar outsize influence given the slavehold- Virginia Lawyer Magazine ing states during the early years of the 1111 E Main St., Suite 700 Republic led to the Civil War. That Richmond, VA 23219-0026 influence was a direct consequence Letters published in Virginia Lawyer may be edited for length and clarity and are subject to guidelines available at www.vsb.org/site/ publications/valawyer/. Jest Is For All by Arnie Glick A WORLD OF DIFFERENCE Fastcase Legal Research start your journey LEARN MORE AT www.fastcase.com 6 VIRGINIA LAWYER | April 2020 | Vol. 68 www.vsb.org
LEGAL SERVICES CORPORATION Notice of Grant Funds Available for Calendar Year 2021 The Legal Services Corporation (LSC) announces the availability of grant funds to provide civil legal services to eligible clients during calen- dar year 2021. In accordance with LSC’s multiyear funding policy, grants are available for only specified service areas. On or around April 1, 2020, LSC will publish the list of service areas for which grants are available, and the service area descriptions at https://www.lsc.gov/grants-grantee -resources/our-grant-programs/basic-field-grant/lsc-service-areas. The Request for Proposals (RFP), which includes instructions for preparing the grant proposal, will be published at https://www.lsc.gov/grants-grantee-resources/our-grant -programs/basic-field-grant on or around June 1, 2020. Applicants must file a Notice of Intent to Compete (NIC) and the grant proposal through LSC’s online application system in order to participate in the grants process. Please visit https://www.lsc.gov/grants-grantee-resources/our-grant-programs/basic-field-grant for filing dates, applicant eligibility, submission requirements, and updates regarding the LSC grants process. Please email inquiries pertaining to the LSC grants process to LSCGrants@lsc.gov.
President’s Message by Marni E. Byrum The Future Is Still in Our Hands As I sat down to write my last the Virginia Bar Association to rep- for the 100th Anniversary of the 19th column, I envisioned a reflection on resent and support the interest of all Amendment guaranteeing and pro- the past year. How, during my term I Virginia lawyers; tecting women’s constitutional right had the privilege of traveling around to vote. Most are looking at the chang- the state — meeting with lawyers from • Recognizing the amazing work ing landscape of voting rights since all types of practices and in all sizes of being done by members of the VSB, ratification of the 19th Amendment communities. In each of these en- suggesting other ways to be engaged with a focus on contemporary legal counters I spoke of my vision for the with the VSB through the disci- challenges to voting requirements. Bar and the importance of inclusion, plinary system, committee work, or As we enter into a national election diversity and engagement. In addition, Bar Council and stressing my goal of season, with no defined parameters on I stressed the strength and stability of introducing more diversity into all this pandemic, it is imperative that you the VSB and emphasized the absence levels of the Bar. engage in these issues. of any critical issues facing the Bar this There will be significant challeng- year. To update the local bar associa- Unfortunately, however, our uni- es as we define how people exercise tions, I focused on: verse has shifted. Those topics, which their right to vote. Lawyers provide a seemed so important and timely, are necessary voice in this conversation. • Amendments to the rules of pro- now mere memories of a different We must step up — celebrate, support fessional responsibility and the new time. A time when engagement meant and fight to protect our most funda- requirements to balance your trust face to face conversation and in person mental right. Encourage others to be accounts on a monthly basis; contact, and our world was larger than part of that conversation and to use, the square footage of our homes. not discard, their right to vote. • The ongoing need for additional pro And so, I have sat for a long I am proud to be among the bono assistance. That we are the only time — staring about the room, then ranks of Virginia lawyers. I have been profession which retains the privilege out the window — wondering what I fortunate to work with a remarkable of self regulation, and my belief that might say. and dedicated staff and to meet with we maintain the privilege by being I realized, however, and want so many of you. Because of you, it has vigilant in our overarching mission to emphasize to each of you, that it truly been my privilege to serve as the of protecting the public. Moreover, is precisely because of that shift that eighty-first president of the Virginia that there can be no stronger support lawyers must be more engaged than State Bar. for public protection than providing ever. Throughout the country, as states equal access to our courts and equal navigate this new normal, lawyers justice under the law; are essential — both according to the INCLUSION coronavirus protocols and, in actual Z • The importance of judicial indepen- fact — and we must continue to be on DIVERSITY dence and the work of all statewide the front line defending and protecting Z bar associations in the area of judicial clients’ rights and speaking for those ENGAGEMENT evaluation and support of our judi- who may have no voice. Whether we ciary; feel up to the task or not, there is no one better prepared or better qualified. • The collegiality and cooperation During this year there are cele- between the Virginia State Bar and brations planned around the country 8 VIRGINIA LAWYER | April 2020 | Vol. 68 www.vsb.org
Confidential help for substance abuse problems and mental health issues. For more information, visit https://vjlap.org or call our toll free number 24/7: 1-877-545-4682 Lawyers Helping Lawyers is now Virginia Judges and Lawyers Assistance Program
Executive Director’s Message by Karen A. Gould The VSB in the Time of Coronavirus Robert Burns in his poem “To a decision has been made to waive the contested elections: Circuits 2, 9, Mouse” prophetically stated: “The best MCLE requirements for October 31, 13, 15, 19. Nine circuits will not have laid plans of mice and men often go 2020, at the present time. If a change elections to fill their vacancy (the awry.” The coronavirus has certainly is made to the MCLE requirement parenthetical indicates who filed to fill caused the best laid plans of many by the MCLE Board of the Supreme the upcoming vacancy): Circuit 1 (D.J. Americans to go awry in recent times. Court of Virginia, a notification will be Hansen); Circuit 4 (Neil Lowenstein); Fortunately for Virginia’s lawyers, posted on the VSB website and publi- Circuit 7 (Ben Mason); Circuit 10 Governor Northam’s Executive Orders cized through the VSB monthly news (E.M. Wright, Jr.); Circuit 11 (Shaun 531 and 552 have created certainty in a email sent on or about the first day of Huband); Circuit 14 (Marissa Mitchell time of uncertainty by providing that each month. and Craig Davis); Circuit 18 (Stacey businesses offering professional ser- If you go to the VSB events Rose Harris); Circuit 20 (Susan vices, including law firms and lawyers, calendar, you will see that most VSB Pierce); and Circuit 25 (Bill Wilson). may remain open but should utilize events have been canceled through All contested elections will be con- teleworking as much as possible. June 10, 2020, which coincides with ducted electronically. VSB members When telework is not feasible, such the expiration of the Governor’s emer- whose address of record was in either businesses must adhere to social dis- gency orders. A decision on the VSB Circuit 2, 9, 13, 15 or 19 as of March tancing recommendations, enhanced Annual Meeting, currently scheduled 15, 2020, will be notified of their sanitizing practices on common to take place June 17-20, 2020, awaits a candidates in advance of the election decision by the Governor on whether commencing and given instructions surfaces, and apply the relevant work- to extend the emergency declaration on how to vote. VSB members whose place guidance from state and federal beyond June 10th. address of record was in either Circuit authorities.3 People should not gather Meanwhile, as with most persons 2, 9, 13, 15 or 19 as of March 15, 2020, in groups of more than ten.4 Likewise, gainfully employed who have been will be given instructions on how to clients may leave their residences for encouraged to utilize teleworking as vote prior to the election. Voting will the purpose of obtaining legal ser- much as possible, many VSB employ- begin April 13, 2020 and conclude at vices.5 The Governor’s orders currently ees are teleworking from home, the midnight on May 1, 2020. expire June 10, 2020. ultimate in social distancing. Some, The VSB Communications The VSB has received several like myself and others who prefer Department urges you to check the inquiries as to: working in the office, are enjoying the VSB website frequently to keep up to 1. whether the “live” requirement for quiet of the reduced staff environment. date on developments. MCLE courses will be waived because This is subject to change, depend- Stay well! of the current health crisis and/or the ing upon advice from the Center for Governor’s stay-in-place order; and Disease Control and direction from Endnotes 2. whether the MCLE requirements the Governor’s Office. The VSB office 1 E0-53 indicates that is effective from March for 2020 will be waived in total. 23, 2020 and extends until April 23, 2020. at 1111 E. Main Street in Richmond, 2 E0-55 amends the effective dates of E0-53 Programs delivered via telecon- however, is closed to visitors. If you and states that the Declaration of Public ference or webcast where there is need to reach a staff person, please Health Emergency, Order of Public Health an opportunity to interact with the Emergency One, E0-53 and E0-55 are effec- send an email or call the appropri- tive until June 10, 2020, unless amended or speaker in real time qualify as “live” ate contact person.7 We strongly urge rescinded by further executive order. courses. Just make sure any course the use of electronic communication 3 Paragraph 8 of EO-53. 4 Paragraph 2 of EO-55. you take indicates it is approved for to assist us in providing services to 5 Paragraph 1.a. of EO-55. Virginia live interactive credit. A par- protect the public. 6 https://www.vsb.org/site/members/mcle tial list of already approved teleconfer- Petitions for Council elections -courses#courses 7 Consult https://www.vsb.org/site/about/ ence and webcast CLE courses is avail- were accepted until midnight on bar-staff for a listing of VSB staff contact able on the MCLE course page.6 No April 1, 2020. Five circuits will have information. 10 VIRGINIA LAWYER | April 2020 | Vol. 68 www.vsb.org
Law Practice During COVID-19 Resources for Virginia Lawyers The Virginia State Bar continues to delays. You may contact us with specific all meetings will continue to be updated provide essential services to Virginia’s questions by telephone at MCLE (804) at www.vsb.org/site/events. lawyers and the public. However, we 775-0577 and Membership (804) 775- have taken steps to keep the health and 0530. Should you experience delays in Mental health safety of our members, employees, and contacting us by telephone or if you The Virginia Judges and Lawyers the general public at the forefront of prefer email, please email us at MCLE@ Assistance Program is available 24/7/365 our actions in this rapidly changing vsb.org or membership@vsb.org. for confidential assistance to lawyers situation. Resources for Virginia lawyers and judges with concerns about mental can be found online at https://bit.ly/ Regarding the LIVE MCLE health, addiction, or other stressors covidVSB. Requirement: Programs delivered via caused by this pandemic. Visit https:// teleconference or webcast where there vjlap.org. We strongly urge the use of electronic is an opportunity to interact with the communication to assist us in providing speaker in real time qualify as live Resources for Legal Professionals from the following services: interactive CLE. Make sure any course the Virginia Lawyers’ Wellness Initiative you take indicates it is approved for can be found at https://www.vsb.org/ File a Complaint Against a Lawyer Virginia live interactive credit. Contact docs/COVID_wellness.pdf If you have concerns regarding the the course sponsor with any questions. conduct of a lawyer, you may submit a A partial list of already approved tele- complaint to the Virginia State Bar. In conference and webcast CLE courses COVID-19 special section order to ensure prompt receipt and re- is available on the MCLE page under view of complaints we strongly urge you Current Virginia Approved Courses. Virginia Lawyer brings you these to submit bar complaints online. The MCLE requirements for 2020 articles on the following pages: have not been canceled. Information on File an Unauthorized Practice of Law this and other MCLE questions during Weathering This Storm for Our Complaint the pandemic at www.vsb.org/site/news/ Profession and the Public An Unauthorized Practice of Law (UPL) item/faqs_about_mcle_covid_19. by Renu M. Brennan Complaint can be submitted by com- Ethical Issues for Law Firms and pleting the form and emailing it. Disciplinary Hearings Lawyers During COVID Layoffs The Virginia State Bar Disciplinary by James M. McCauley Request an Unauthorized Practice of Board has generally continued Board Law Opinion hearings through April. The status of all CARES Act: Small Business A Virginia lawyer may request a UPL hearings will continue to be updated at Paycheck Protection Program and Opinion by completing the form and www.vsb.org/site/events. Loan Forgiveness emailing it. Assistance Opportunities for Law Meetings and events Firms and Their Clients During Ethics Questions Virginia State Bar has canceled most COVID-19 The VSB Ethics Hotline is open during in-person meetings and events, with by Christen Church and Max the pandemic for Virginia lawyers. very limited exceptions, until June 10, Wiegard See page 13 for more info. 2020. Most live events have been post- Working from Home Puts Your poned or will be held by teleconference Firm’s Information at Risk Regulatory Compliance in an effort to minimize the potential by Alex Nette and Stephen Both Membership and MCLE services spread of the coronavirus. Registrants Thompson are operating with reduced capacity due have been contacted directly about any to delays in mail processing and other postponed events. We are monitoring How COVID-19 and a Recession extenuating circumstances related to the situation as to events taking place Could Impact Malpractice Claims the COVID-19 public health emergen- beyond June 10, including the Virginia by Mark Bassingthwaighte cy. You should anticipate processing State Bar Annual Meeting. The status of www.vsb.org Vol. 68 | April 2020 | VIRGINIA LAWYER 11
Bar Counsel’s Message by Renu M. Brennan Weathering This Storm for Our Profession and the Public While challenging us in resources from the legal community migration applications and cases. The unprecedented ways, the COVID-19 underscore the best of the legal profes- Discipline Department is also working pandemic presents lawyers with the sion. to appoint a receiver over the practice opportunity to serve the community We also recognize that, even with of another attorney who cannot run and emphasize our value and dedi- the available resources, this is a hard a law practice due to chronic illness. cation to our clients and society. It’s a time for lawyers. Lawyers ultimate- This is a critical service to both the chance for lawyers to shine, maintain- ly serve the public, and, when they public and profession, and we thank ing commitments to clients and their cannot meet with clients or attend the lawyers who are willing to act as needs, while minimizing exposure. court, they cannot earn fees. Many receivers. As of publication, law firms may attorneys, like the public they serve, What practical guidance can the remain open,1 teleworking to the are experiencing financial difficulties Bar offer? Remember that your clients greatest extent feasible. Clients may and are having to make hard deci- are trying to resolve complex legal leave their residences for the purpose sions regarding rent and staff. As they issues they may not understand while of obtaining legal services.2 Attorneys make these difficult decisions, lawyers coping with the stress caused by the must – as well we should - adhere must remember that their ultimate pandemic. to social distancing consistent with responsibility is to their clients and the Communicate early and often state and federal guidance.3 When it profession. about the status of matters you are is not feasible to telework, we should Throughout this crisis, the Bar will handing and the implications of the not gather in groups of more than ten continue to support and regulate law- pandemic and related orders. Con- people4. By Orders entered March 16, yers and protect the public. The Bar’s sider reaching out to clients even if 2020 and March 27, 2020, the Supreme Ethics Hotline is open and responding they haven’t requested an update or Court of Virginia declared and extend- to calls and emails. The discipline asked a question. Stay informed about ed a judicial emergency through April department continues to manage COVID-19, as you stay aware of orders 26, 2020. As set forth in the Orders, our critical system of self-regulation, and the law. Make sure your clients courts and clerks’ offices remain opera- including encouraging electronic sub- have a backup contact if they cannot tional, while, with certain exceptions, mission of complaints, and exploring reach you. Comment 5 to Rule of Pro- deadlines are extended. virtual resources to facilitate investiga- fessional Conduct 1.3 Diligence urges Fortunately, the internet and a tions and hearings. The Bar, like other succession plans for solo practitioners. plethora of virtual resources facilitate agencies, is focused on mission-critical If you cannot handle a matter the practice of law. We are luckier than operations. pending before a court, seek leave to many other professions and trades, in Attorneys continue to step up withdraw and recommend other at- terms of being well suited to telework. and assist the clients of lawyers who torneys who might be able to assist the We are also buoyed by our peers. It is can no longer practice law and have client. Conversely, be prepared to step heartening to see lawyers, firms, and no succession plan. As required by up and help if you are able. bars galvanize to support our profes- the Executive Orders, as much as Safeguard funds — deposit un- sion, and in turn, clients and the pub- possible can and will be done by mail earned fees in trust. While teleworking lic. The VBA, VTLA, Fastcase, Virginia and email. By Order entered March and emailing, remember the obliga- CLE, and many other providers and 31, the Circuit Court in Richmond tions to safeguard client confidences groups are offering conference calls, appointed Mike Tittermary to wind and information, and consider data webinars, and guidance on how best to down an immigration practice. With security and privacy. navigate in this time. Virginia’s Judges the help of bar counsel counterparts at As follows are some LEOs to con- and Lawyers Assistance Program the Department of Homeland Security sult that might be useful during this remains open and available around the and the Department of Justice, Mike is clock. The dialogue, collaboration, and working to assist many clients with im- LEOs continued on page 52 12 VIRGINIA LAWYER | April 2020 | Vol. 68 www.vsb.org
Ethics Counsel by James M. McCauley Ethical Issues for Law Firms and Lawyers During COVID Layoffs As of April 3, 2020, jobless the lawyer primarily responsible for that fact, preferably in writing. If the claims have risen to over 10 million in the handling of their case. Va. LEO client matter includes pending litiga- just two weeks. Many businesses are 1822. tion in which the departing lawyer is suspended or closing, some perma- Rule 5.8 requires the law firm counsel of record, a praecipe should nently. Law firms, mostly large and and/or the departing attorney to no- be filed, with copies to opposing mid-sized, are laying off or giving tify clients of the lawyer’s departure counsel or pro se parties to update any furloughs to lawyers and support if the departing lawyer is primarily changes in counsel of record if another staff because of the rapidly acceler- responsible for handling that client’s attorney in the firm will be serving as ating economic downturn caused by matter. Newer lawyers in the firm may counsel of record; or to give notice that the COVID-19 virus pandemic. Law not have primary responsibility for the departing attorney will continue firms typically lay off or furlough new- client matters and their departure will handling the case at a new address of er attorneys and staff and it is assumed not trigger a notification duty under record. that their work will be reassigned to a Rule 5.8. remaining lawyer or staff person. No Many legal ethics opinions rec- one can predict whether these layoffs ommend, but do not require, that the or furloughs will be short-term, lasting notice to clients be a joint communica- only until the pandemic has ended, ex- tion by both the departing lawyer and tend for a considerable time afterward, the law firm. Va. LEOs 1332 and 1822. or become permanent. In addition to notifying the client If furloughed or laid off, a law- that the lawyer is leaving the firm, the yer’s ethical obligations will depend notice to clients should inform the upon the level of responsibility for client of their choices for continuing The VSB Ethics Hotline is open client matters prior to departure the representation—that the client’s during the pandemic for Virginia from the firm and when they can matter will continue to be handled lawyers. expect to return to work, if that can by the departing lawyer; or another be determined. All civil and criminal lawyer in the firm will assume respon- Call the Ethics Hotline at (804) 775- cases are continued generally, with sibility for handling the matter; or, the 0564. You will be prompted to leave a exceptions for arraignments, bond client may elect to take their matter to voice mail message, and your call will be hearings, motions for protective orders another firm. returned in the order of receipt or email and other matters of an urgent nature. In many instances the lawyer who the Ethics Hotline. Lawyers laid off or furloughed indef- has been laid off or furloughed will initely may be required to meet and not be prepared to continue handling Submit a legal ethics question client matters after leaving the firm. In online at www.vsb.org/site/regulation/ confer with their law firm regarding ethics-questions-form. notification to clients on whose mat- other situations, the lawyer may seize ters the departing lawyer had primary the opportunity to start his or her own Depending on the complexity of your responsibility. Rule 5.8(a). Lawyers practice and continue handling those question, you will receive either an also have a communication duty under matters which the client has directed email response or a return phone call. Rule 1.4 to keep a client reasonably in- to migrate with the departing lawyer. The ethics staff strives to respond to formed of material information relat- Lawyers planning not to continue your questions within the same day. ing to the representation of the client, representing clients after their depar- which would include the departure of ture will need to inform the client of www.vsb.org Vol. 68 | April 2020 | VIRGINIA LAWYER 13
Law Practice During COVID-19 CARES Act: Small Business Paycheck Protection Program and Loan Forgiveness Assistance Opportunities for Law Firms and Their Clients During COVID-19 by Christen Church and Max Wiegard Within the nearly 900 pages that outlines the “Coronavirus Aid, Relief, and Economic Security Act” (the “CARES Act”) is the “Keeping American Workers Paid and Employed Act,” which contains the Paycheck Protection Program and associated loan forgiveness. The Paycheck Protection Program The Paycheck Protection Program is a low interest loan (a “covered loan”) that The terms of covered loans will be ing lenders, may be found at www.sba is eligible for up to 100% principal for- the same for all borrowers, and pay- .gov and www.treasury.gov. giveness if certain requirements are met ments by borrowers toward covered Below are some frequently asked by the borrower. Borrowers can gener- loans will be deferred for six months. questions, along with answers based on ally borrow up to 2.5 times the bor- These covered loans will have a 1% the information available at the time of rower’s average monthly payroll costs interest rate and a maturity date of two this writing. (capped at $10 million). Covered loans years. Any portion of a covered loan that will be deployed through the Small is not forgiven will continue as an SBA Who is eligible for the Paycheck Business Administrations’ (SBA’s) 7(a) loan under the same terms. Protection Program? loan program, but these are not typical The SBA and the Department of • Businesses, including both for profits SBA 7(a) loans. The covered loans are Treasury have issued initial and interim and 501(c)(3) nonprofits, employing unsecured, no guarantors are required, guidance, and we anticipate additional fewer than 500 employees (or possi- and the loans are made without fees to guidance will continue to be issued bly more than 500 if the SBA small borrowers. to address remaining questions and business designation for your industry If the borrower uses the covered ambiguity associated with Paycheck is more than 500 employees). Sole loan funds for covered expenses during Protection Program. proprietors, independent contractors an eight-week period, the borrower will The terms of the Paycheck Protection and self-employed individuals are also be eligible to have up to the entire loan Act and lender requirements remain eligible to receive these covered loans. forgiven. In order to be eligible for full fluid as of the writing of this article, • The text of the CARES Act specifies loan forgiveness, at least 75% of the cov- interested borrowers should reach out that the SBA’s affiliation rules will ered loan funds must be used for payroll to their lenders to discuss the program. apply to applicants unless a waiver costs, with up to 25% used for covered We anticipate that demand will exceed applies (e.g., certain businesses in overhead expenses like rent, mortgage, supply, and while the Department of the hospitality industry, a franchise interest, and utilities. This forgiveness Treasury has stated that additional funds assigned a franchise identifier code by amount may be reduced in certain in- will be requested if needed, the success the SBA, and a business that receives stances, including if there is a reduction and timing of such additional requests financial assistance from certain small in work force or if salaries of employees are not certain. Additional information, business investment companies). The are materially reduced. including information about participat- interim final rule, published on the 14 VIRGINIA LAWYER | April 2020 | Vol. 68 www.vsb.org
Law Practice During COVID-19 Department of Treasury’s website healthcare benefits, rent, utilities, in- wages in accordance with the terms April 2, 2020, states that the SBA will terest on certain debt obligations. provided in the Act. issue additional guidance regarding • The borrower will submit an applica- the applicability of the affiliation rules What is the process for obtaining tion for loan forgiveness to its lender at 13 CFR 121.103 and 121.301 to the the loan? with associated documentation and Paycheck Protection Program loans. • The covered loans will be deployed certification from borrowers. We using the 7(a) SBA loan program. The anticipate additional guidance will be Is there any requirement for a bor- expectation is that additional lenders forthcoming. rower to prove alternative funds are will be approved, but one thing that not available or to demonstrate the businesses can do now is to check with Tax Relief provided by the scope of the detrimental impact of your lender to see if they are already CARES Act COVID-19 on your business? approved lenders under the 7(a) SBA loan program and if they are accepting Also, within the CARES Act is the • NO, there is no requirement in the applications for covered loans under “Relief for Workers Affected by Paycheck Protection Program for a the Paycheck Protection Program. Coronavirus Act,” which contains pro- borrower to prove that alternative visions that provide certain tax relief to funds are not available. small business and individual taxpayers • NO, there is no requirement in the How are loans forgiven? • Borrowers will be eligible for forgive- affected by the coronavirus pandemic. Paycheck Protection Program to demonstrate the scope of COVID-19’s ness of indebtedness on a covered loan in an amount equal to the sum of What tax relief is available to small impact on your business. Borrowers businesses? payroll costs, interest on any covered must provide “a good faith certifica- • Forgiven Indebtedness Under a mortgage obligation (but not prepay- tion…that current economic uncer- Covered Loan Is Not Taxable Income. ment of principal), covered rent obli- tainty makes this loan request neces- In connection with the implemen- gations, covered utility payments, up sary to support the ongoing operations tation of the Paycheck Protection to the principal amount of the covered of the Applicant.” Program described above, the CARES loan. To be eligible for full forgiveness, no more than 25% of these funds may Act provides that the amount of forgiv- What is the maximum amount of a en indebtedness on a covered loan, will be used for non-payroll costs. covered loan? not be taxable as discharge of indebt- • While interest will begin to accrue • In general, the maximum amount of edness income, if the forgiven amount immediately upon the loan’s origina- the loan that can be taken as a covered tion, the most recent guidance in the was used for permitted purposes de- loan is 2.5 times average monthly interim final rule, published April 2, scribed above. “payroll costs” of the borrower for the 2020 by the Department of Treasury, • Available Payroll Tax Credits. year prior to loan being made (capped indicates that the borrower will not Eligible small businesses can qualify at $10 million). There is an alternative be required to pay interest on that for a refundable credit against the measurement period if the borrower portion of the loan that is forgiven. business’s 6.2% portion of the Social was not in existence for a full year The amount of the covered loan that is Security (OASDI) payroll tax for 50% prior to receiving a covered loan. forgiven will not be included in gross of certain wages paid to employees • “Payroll costs” include things like income of borrower. during the COVID-19 crisis. Please wages, health care benefits, retirement note, this payroll tax credit is not avail- benefits, certain state and local taxes • The amount forgiven will be reduced able to businesses receiving covered assessed on employee compensa- proportionately if the number of full loans under the Paycheck Protection tion. There are also some exclusions, time equivalent employees is less Program. The IRS is authorized to ad- including for employees with pay- than the number employed 2/15/19- vance payments to eligible businesses roll costs in excess of $100,000, as 6/30/2019 or 1/1/2020-2/29/2020 (em- and waive penalties for businesses who well as certain sick leave and family ployer choice on measurement dates) do not deposit applicable payroll taxes leave wages for which an employer is or if employee compensation has a in reasonable anticipation of receiving eligible for a credit under the Families significant reduction, of more than this payroll tax credit. First Coronavirus Response Act, and 25%, and with some exceptions for ° Which small businesses are eligible certain federal taxes. employees earning over $100,000. The for this payroll tax credit? text of the CARES Act also includes This payroll tax credit is available to What can the loan funds be used for? incentives for employers to avoid a businesses during 2020, including • There are a number of allowable uses reduction in the amount of forgiveness of covered loans including payroll, by rehiring individuals or increasing CARES Act continued on page 48 www.vsb.org Vol. 68 | April 2020 | VIRGINIA LAWYER 15
Law Practice During COVID-19 Working from Home Puts Your Firm’s Information at Risk by Alex Nette and Stephen Thompson The recent novel coronavirus (COVID-19) pandemic has led to a global health emergency with unprecedented action being taken to combat it. This included many law firms moving to remote work for the first time. While getting accustomed to working at home may have been your biggest challenge, the security of your firm’s sensitive information may have been ignored. Cybersecurity is one of the most press- ing and prevalent business risks in the digital age; however, it often gets over- looked. The consequences of disregard- ing cybersecurity can include inability your Wi-Fi at home is secured using from your device (including emptying to conduct business, monetary loss, and WPA2 and a strong password. your trash can). reputational damage. Many firms that If you are using a personal device are moving to remote work are relying for work, make sure no one else in your Risk Two: Allowing Information on technological solutions that work Leaks household has access to your firm’s in- rather than solutions that work securely. Your firm likely accesses its information formation or digital resources, like firm Here are three major cybersecurity risks through a number of digital resources, that law firms may face. files, email, cloud storage, or video con- ferencing tools. Not only is this critical including email, remote connection op- from a cybersecurity perspective, but it tions, and applications that support the Risk One: Leaving Electronic firm. All of these need to be configured Devices Unprotected also helps avoid confidentiality concerns correctly to keep the information they When we talk about electronic devices, with clients. Furthermore, confirm the process secure. we generally include computers (laptops device has the latest updates applied to Email is unencrypted by default. and desktops), tablets, and smartphones. it, and for computers, install and contin- This means that anything you send via These devices may be owned by you or uously update a malware/virus scanner. email, including attachments, can be your firm and, as a result, may require Finally, only access your firm’s infor- intercepted and read by someone else. different actions on your part to protect mation in a way that does not require it If you are sending sensitive informa- them. Regardless of ownership, you to be downloaded onto your personal tion, send it as an attachment and should always lock your devices when device (i.e., access on the cloud or a re- encrypt it with a password — sharing you walk away. And while you are not mote desktop). If you must, upload the the password with the recipient through likely to be using public Wi-Fi during files to a firm file storage option when another method, like a text. Also, turn the COVID-19 pandemic, validate that you are done and then delete the files on two-factor authentication for your 16 VIRGINIA LAWYER | April 2020 | Vol. 68 www.vsb.org
Law Practice During COVID-19 email. You have likely encountered this transfers, gather W-2 information, or other issues. Your firm’s response plan when you log on to your bank website purchase gift cards. should also be tested regularly with and are prompted to enter a temporary If you are ever in doubt about the exercises to validate its comprehen- numerical code provided via text mes- legitimacy of an email, pick up the siveness. sage. While this may feel redundant, it is phone and call the sender directly. Do Cybersecurity cannot be relegated a critical step in stopping hackers from not call any phone numbers listed in to the bookshelf — especially during getting into your firm’s email. the email or reply to the email. And the current pandemic. While you may There are myriad remote connec- if you are the recipient of a suspected be focused on making technology work tion options that your firm may employ: phishing email, know where to report it for you during this time, do not neglect a virtual private network (VPN) allows within your firm so that the rest of your making technology work for you secure- you to access all of your firm’s digital colleagues can be alerted. ly; the consequences can be severe. resources; a remote desktop application allows you to access your desk com- How Can Your Firm Be More Endnotes 1 Verizon, 2019 Data Breach Investigations puter; or cloud-based applications, like Secure? Report (May 2019) https://enterprise.verizon Office 365, allow you to perform specific If this is the first time your firm is work- .com/resources/reports/2019-data-breach tasks. Each option should be provided ing remotely, or remotely at this scale, -investigations-report.pdf by a trustworthy company and not just validate that firm devices and digital the cheapest option. The solution should resources are configured securely. This also encrypt all information while it is includes checking them regularly to moving to and from your devices with confirm they continue to align with the the latest encryption standards (i.e., expected configurations and verifying AES-256 or better). they can handle an increased remote Your firm also likely relies on workload. numerous supporting applications that Second, the firm should clearly help your firm operate. These can be define what devices and digital resourc- located on a server in your office, or in es are allowed to be used to access firm the cloud, and include core business information and how to do so appro- functions, like accounting software, priately. This list should be regularly timekeeping software, or file storage sys- updated and maintained. tems. These resources must be config- Finally, your firm should provide ured correctly to prevent unauthorized employees with steps to follow at the access, which includes using encryption. first sign of a cyberattack, with the goal Additionally, if the resources are not ap- of limiting the impact. A cyberattack propriately maintained with updates, or could include phishing, malware, or are outdated and have reached “end-of- life,” they may have vulnerabilities that make them susceptible to cyberattacks. Risk Three: Being Susceptible to Social Engineering With most of the world’s workforce now working remotely, there has been a large uptick in social engineering cyberattacks Alex Nette is president and CEO of Hive Stephen Thompson is an associate attor- due to the distributed nature of employ- Systems and is a strategic advisor to gov- ney at the law firm of BotkinRose PLC in ees. These attacks aim to trick individu- ernment and private sector clients in the Harrisonburg. His practice covers a wide establishment and continuous improvement range of transactional topics including real als, with the most common form being of preeminent cybersecurity programs. He has estate, taxation, business formation, and estate email phishing.1 The email subjects have provided executive level and subject matter planning. Thompson became interested in expertise on cybersecurity for nearly a decade technology at an early age. His father’s profes- often focused on the current pandemic and applies his work from various cyberse- sional involvement in IT fostered his interest but may also impersonate an executive curity disciplines in a holistic approach that in the importance of security and proper use of prioritizes organizations’ operations. He may technology. He may be reached at sthompson@ and ask the recipient to redirect money be reached at alex.nette@hivesystems.io botkinrose.com. www.vsb.org Vol. 68 | April 2020 | VIRGINIA LAWYER 17
Risk Management During COVID-19 How COVID-19 and a Recession Could Impact Malpractice Claims by Mark Bassingthwaighte During a recession, and for the three cloud one’s personal and professional their assets have dropped, and their level years following, there has historically judgment because that’s when poor of risk has risen. Only time will tell. been a huge spike in paid claims, which decisions are made. For example, I do understand that right now it is a number that typically doesn’t return investments get sold at the market’s can be difficult to turn off the noise and to a more normalized level until five bottom, an attachment to an email that stay focused on the tasks at hand; to years post-recession. In addition, and claims to have the answer to preventing stop worrying about finances and family looking back at the events of 2008 the spread of coronavirus is opened too and take care of the business side of the specifically, legal malpractice insurers quickly, or an important deadline never practice; and to keep emotions in check experienced a spike in paid claims gets entered into a calendar, all because as you try to find the time to document above $10,000 that ranged from 35% worry and fear rule the day. your files, keep your clients informed, to 41%. I share this in order to explain Now, based upon what has hap- and struggle to deal with courthouse why recessions always capture the atten- pened as a result of past recessions cou- closures and emergency orders. It’s a tion of the insurance industry because pled with the realities of the response given that mistakes will be made; but it given how the markets look of late, an- to COVID-19 from the individual level seems to me that times like these truly other recession appears to be imminent to that of governments, here’s what underscore one of the values of having thanks to the COVID-19 pandemic. I legal malpractice insurers are currently a malpractice policy. It’s the comfort wish it were otherwise, but it sure looks concerned about. First, claim frequency that comes with knowing that if some like history is going to repeat itself. and/or claims severity will change for mistake does eventually turn into a As a Risk Manager for a legal any number of reasons. We just can’t malpractice claim, you’ve got coverage malpractice insurer, one interesting accurately predict how. At a minimum, in place. question for me is how will COVID-19 clients will look to blame their lawyers That said, I can’t help myself. I impact our insureds? While only time when their business dealings go south need to add one final comment. For all will tell, I have a few thoughts. Lawyers as a result of the near-certain recession of you who have up until now made are already having to deal with tele- that’s coming. Lawyers and staff will a choice to forgo coverage, I can’t commuting and all the associated risks, make mistakes that would otherwise imagine a better time to rethink that not the least of which is a significant not have been made due to the rapid decision because as I stated above, the increase in the risk of someone at a transition to working from home and/ value of assets has dropped, and the firm becoming a victim of a cyber- or being under excessive stress. And level of risk has increased. The peace of crime. A number of lawyers and more clients, who are also experiencing exces- mind that comes with the purchase of than a few clients will be forced to deal sive stress, will question decisions they a legal malpractice insurance policy is with significant and potentially long- made in light of the advice their lawyer worth every penny if you ask me. term reductions in household income. gave them if their legal matter doesn’t Some lawyers may simply say enough work out the way they expected it to. is enough and decide to retire, while Regardless, there will be a new normal others may be forced into postponing in terms of claims, at least for a few years. retirement as a result of steep declines Second, policy retention may be in their retirement accounts - and this is an issue; but again, we can’t accurately just for starters. While I could continue predict how this might evolve. Lawyers on, I’ll admit this is starting to make me facing difficult financial times may Mark Bassingthwaighte, ALPS risk manager, feel a bit depressed, so I’ll stop. choose to leave the practice of law en- has conducted more than 1,000 law firm risk Here’s the point I’m trying to make. tirely or may decide to allow their policy management assessment visits, presented numerous continuing legal education seminars Everyone, including lawyers, is hop- to lapse and simply go bare as a way throughout the United States, and written ing to maintain some level of control to save some money. Of course, there’s extensively on risk management and technol- and normalcy during very uncertain the flip side, some who have previously ogy. His webinar on Best Practices for Client Selection in the ALPS CLE library is at times. The challenge here is to not been bare may decide now’s the time to http://alps.inreachce.com. He can be contacted let emotions, such as fear and panic, purchase coverage because the value of at: mbass@alpsnet.com. 18 VIRGINIA LAWYER | April 2020 | Vol. 68 www.vsb.org
The Corporate Counsel Issue by Mark Newcomb As the Board of Governors of the Corporate Counsel Board members). Examining in-house practice from Section began to work toward this issue of the another angle, Alicia Myara and Luise Welby offer Virginia Lawyer last winter, we were excited to have insight to corporate development and maintenance of the magazine return to consider our practice for the a pro bono program — the import and value of which first time in nearly two decades. While our sec- extends well beyond our day to day practice of law. tion focuses upon facilitating communication and Within the bounds of a “post-pandemic” article, Alex exchange of ideas amongst attorneys who work in a Nette and Stephen Thompson address the security corporate setting, our members recognize that the in- challenges that accompany the contemporary shift to tersection between in-house and outside, or law firm, remote work and give proof to the critical intersection practice forms the critical foundation of our work. of in-house and law firm practice. Approaching publication of this edition, we wanted to The long-term impact of the pandemic remains focus upon two questions central to that relationship: uncertain, but the need to look forward does not. When do we seek assistance from outside counsel? With that in mind, the Corporate Counsel Section is And what do we focus on in evaluating and select- seeking alternative avenues for delivering the regional ing a law firm to provide that support? and state-wide CLE programs we have offered over Sitting down today to put pen to paper – or more the years,to continue our law school outreach through accurately, keystrokes to a computer – to write this in- video-conference-based programs, and to provide a troduction, I am acutely aware that our world and our forum for discussion of the issues we face in corporate practice have changed dramatically from just a few practice months ago. The COVID-19 pandemic that has swept We hope that this edition of the Virginia Lawyer across oceans and continents has nearly eliminated also presents an opportunity to focus on the future the commute from home to work through “social and that we might trigger a broader discussion. What distancing” and quarantine requirements; office do you — members of the Virginia State Bar in a buildings, with their “cubicle farms” and call centers, law firm practice — believe in-house counsel should have been emptied and court proceedings are delayed. consider when seeking your assistance? What Our business, and the practice of law, now proceeds would you suggest as best practices to improve our remotely, and face-to-face communication requires teamwork and provide for the best outcomes from access to video-conference systems. our interdependent practice? We appreciate your con- Although the landscape of our practice may be sideration of the issues presented within the pages of changing, we expect the essential structure of the this issue, and ask that you help us be better clients by in-house and outside counsel relationship to remain sending your comments or suggestions to the editor the same: corporate counsel will work to protect who will collect them with attribution or anonymous- business opportunity and maximize the efficiency of ly for a future article. Thank you. attorney assets, while law firms will seek to establish and maintain long-term business relationships. This edition includes a number of articles that were written independently but reveal a consistent theme: the need for compatibility and teamwork in that relationship. They range from commentary on the skill sets required to succeed in-house (from Kelly Scanlon), to the specific criteria that might be used to minimize the risks of outsourcing legal support (from Nicole Mark Newcomb is the current Chair of the Corporate Counsel Section and serves as Counsel and Vice President – Claims & Upshur), and a broad examination of the in-house Insurance for ZIM American Integrated Shipping Services Co. / outside counsel relationship from the perspective LLC., where he is responsible for all insurance, risk manage- of a number of Virginia’s in-house practice leaders ment, claims and compliance programs for ZIM Integrated Shipping Service Ltd. in North America, the Caribbean, and (credited to our Immediate Past Chair, Naoina Gartee Central America. Newcomb is a 1981 graduate of the US Naval and me, but actually the work of a number of our Academy and received his J.D. from William & Mary in 1988. www.vsb.org CORPORATE COUNSEL SECTION | Vol. 68 | April 2020 | VIRGINIA LAWYER 19
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