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FA L L 2 0 0 8 U P D AT E

First in U.S. Arnstein & Lehr presents

Arnstein & Lehr team advises 2008 Woman of Vision Award
winning bidder on $2.5 billion Arnstein & Lehr LLP presented Marsha Serlin, CEO and
Midway Airport privatization 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.
Building upon Chicago Partner David Golin’s ongoing work The award, sponsored by the Arnstein & Lehr Diversity
on behalf of the bond issuer for the Los Angeles Interna- Committee, recognizes and honors groundbreaking, inspira-
tional Airport, Chicago Partner Howard Swibel recently led tional women who have made a difference in the professional
a team of Arnstein & Lehr LLP attorneys who assisted the world.
winning bidder in a $2.52 billion deal to privatize Chicago’s
Midway Airport. It is recognized as the first privatization of "I am honored and humbled to be the recipient of Arnstein
a major airport in U.S. history. The team included Chicago & Lehr’s Woman of Vision award," said Serlin. "The sup-
Partners Bill Anaya, Joel Hurwitz, Cynde Hirschtick Mun- port of many women and the knowledge that women can
zer, Mark Spognardi, and Associate Tracey Salinski. accomplish anything through hard work and determination
is what allowed me to carry out my vision and succeed in a
Swibel and the team represented Midway Investment & male dominated industry. Again, I want to thank Arnstein's
Development Company, a consortium consisting of YVR Diversity Committee and especially thank all of the ladies
Airport Services Ltd., an who attended the luncheon today."
affiliate of the Vancouver
Airport Authority, Citi Dr. Sandra Burke, Ph.D., who recently retired from her
Infrastructure Investors position as Director of Cardiovascular Biology Research
of New York and John at Abbott Laboratories, presented Serlin with a pin for the
Hancock Life Insurance American Heart Association's (AHA) “Go Red for Women”
Company of Boston. program during the luncheon. The program aims to raise
The Arnstein & Lehr awareness and educate women about heart disease. Burke
team advised the bidder is on the Board of Directors of the AHA’s Greater Midwest
on issues of state and local law, including compliance with region and is active in the “Go Red” program. Other women
City of Chicago disclosure requirements. in attendance included CEOs, COOs, executive directors,
vice presidents and managing partners, as well as numerous
Under the 99-year lease, the city will receive an up-front pay- women business owners.
ment of $2.52 billion. It is anticipated to close within the
next few months. “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 | FA L L 2 0 0 8

IRS aggressively Employer Alert

pursuing off shore accounts Minimum wage increased
by Robert E. McKenzie Employers should be aware that the Federal
Partner, Arnstein & Lehr and Illinois minimum wages recently in-
On July 1 a federal judge in Miami issued an creased. Pursuant to the 2007 Fair Mini-
order authorizing the Internal Revenue Service mum Wage Act, the federal minimum wage
(IRS) to request information from Zurich, rate for covered, non-exempt employees
Switzerland-based UBS AG about U.S. taxpayers increased to $6.55 per hour (unless the
who may be using Swiss bank accounts to evade state, like Illinois, has adopted a higher
federal income taxes. minimum wage). This federal rate increase
became effective July 24, 2008, and will
The order authorizes the IRS to serve what is
remain in effect for one year before the
known as a “John Doe” summons on the bank.
Robert McKenzie is a The IRS uses a John Doe summons to obtain
federal minimum wage increases again to
partner with Arnstein & Lehr
information about possible tax fraud by people $7.25 per hour on July 24, 2009.
concentrating his practice
in representation before the whose identities are unknown. The John Doe
Internal Revenue Service summons approved by the court directs UBS to For Illinois employers, however, the State’s
and state tax agencies. produce records identifying U.S. taxpayers with minimum
He has presented courses
before thousands of CPA’s, accounts at UBS in Switzerland who elected to wage rate
attorneys and Enrolled have their accounts remain hidden from the IRS. for covered,
Agents nationwide. Prior to It is highly likely that the IRS will be successful non-exempt
entering private practice,
in its efforts to secure the account information employees
he was employed by the
IRS, Collection Division, from UBS. Based on a statement submitted to the increased to
in Chicago from 1972 to court by former UBS banker Bradley Birkenfeld, $7.75 per
1978. During that time, UBS employees assisted wealthy U.S. clients in
he worked as a revenue hour start-
concealing their ownership of assets held offshore
officer, a classroom and ing on July 1, 2008. All Illinois employers
OJT Instructor of Revenue by creating sham entities and then filing IRS
must adhere to the Illinois minimum wage
Officers, and as an advisory forms falsely claiming that the entities were the
revenue officer in the owners of the accounts. According to Birkenfeld’s increase since it is higher than the federal
Chicago Special Procedures minimum wage. Employers with employ-
Staff. Since entering private court statement, UBS had approximately $20 bil-
practice, he has dedicated lion of assets under management in “undeclared” ees in other states should look to those
a major portion of his time accounts for U.S. taxpayers. states' laws to find out about their appli-
to representation before cable minimum wage rates.
the IRS and litigating tax
controversies in state and Voluntary Disclosure
federal court. The court order could lead to the disclosure of The 2007 Fair Minimum Wage Act did not
thousands of U.S. residents who have failed to change the Fair Labor Standards Act’s “tip
report UBS accounts. U. S. taxpayers who have credit” provisions. Therefore, employers
banked with UBS should immediately seek the who use “tip credits,” such as restaurants,
advice of a competent tax attorney. The IRS has are still permitted to pay tipped employees
a voluntary disclosure policy that may allow UBS a cash wage of $2.13 per hour. However,
clients to avoid harsh penalties and/or pros-
under Illinois law, while a tip credit is
ecution. The central concept of the voluntary
recognized, it must not exceed 40% of the
disclosure policy is that the taxpayer must come
forward and self identify before the IRS opens an applicable minimum wage. At its current
investigation of that person. Before approaching rate, tipped employees in Illinois must
the IRS for a voluntary disclosure a competent therefore be paid at least $4.65 per hour in
tax attorney will review all appropriate facts and order to ensure that the tipped employees
circumstances with a client to assure that the she are compensated the applicable Illinois
qualifies for the program. After a review of the minimum wage of $7.75 per hour.
facts, in most matters the tax attorney will then
approach the IRS to negotiate anonymously on
IRS Continued on Page 3

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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,” behalf of the taxpayer and only upon agreement will the her iden-
said Cynde Hirschtick Munzer, a partner with Arnstein & tity be disclosed to the IRS.
Lehr, who presented the award to Serlin. “Thirty years later
United Scrap has grown to become one of the industry’s The Law
The law requires a United States taxpayer to report all financial
premier companies due to Marsha’s strong leadership, motiva-
accounts in a foreign country if the total value of the accounts
tional skills, creativity and innovative ideas. Like many great
exceeds $10,000 at any time during the calendar year. A willful
visionaries, Marsha is also active in her community and has failure to report a foreign account can result in a penalty of up to
received a variety of 50 percent of the amount in the account at the time of the viola-
honors and awards tion or prosecution.
throughout her
career.” IRS Crackdown
Given its success in this case it is inevitable that the IRS will step
In 1978, Serlin up its efforts to find Americans utilizing tax haven banks. Since
envisioned a recy- September 11 the U. S. Financial Crimes Enforcement Network
cling company that has developed a coordinated program to find money laundering,
would be motivated foreign banking activity, and tax evasion. In most white collar
entirely by customer crime cases the Justice Department offers plea bargains to individ-
uals like Birkenfeld in return for cooperation in charging others
needs and satisfac-
involved in illegal activity. Therefore with increased resources be-
tion. Her concept
ing allocated to seeking out foreign bank activities by Americans
worked and she has we can anticipate will the first of many bankers who cooperate to
built a company that reduce their potential jail time.
today employs over
150 people and is an Background
award winning leader in 2008 Woman of Vision recipient Marsha On June 19 Birkenfeld pleaded guilty to conspiring with an
Serlin with Arnstein & Lehr Partner
recycling solutions. Cynde Hirschtick Munzer American billionaire real estate developer, Igor Olenicoff, Swiss
bankers, and his codefendant, Mario Staggl, to help Olenicoff
She is on the board of the United Way/Community Chest, a evade paying $7.2 million in taxes by assisting in concealing $200
member of the board of governors of the Chamber of Com- million of assets in Switzerland and Liechtenstein.
merce, a member of the executive board for the Boy Scouts of
America, and serves on the board of directors at the Children During the plea, Birkenfeld admitted that between 2001 and
at the Crossroads Foundation. Serlin is a commissioner on the 2006, while he was employed as a director of UBS, he routinely
traveled to and had contacts within the United States to help
Cook County Commission of Women’s Issues, and a member
wealthy Americans conceal their ownership in assets held offshore
of The Chicago Network, The Committee 200 and the Na-
and evade the payment of taxes on the income generated from
tional Women’s Business Council in Washington, D.C. those assets.

This is the second annual Woman of Vision Award Luncheon. According to statements and documents filed with the court,
Cheryle Jackson, president and CEO of the Chicago Urban Birkenfeld’s services to American clients violated a 2001 agree-
League, was last year’s honoree. ment that UBS entered into with the United States to identify
IRS Continued on Page 4
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 | FA L L 2 0 0 8

IRS Continued from Page 3

and document any customers who received reportable U.S. source
Notable cases & victories
income or would withhold and anonymously pay a 28 percent 1st District Appellate Court affirms Weisberg
withholding tax. This agreement was a major departure from his- and Bryant $1 million mechanic's lien judgment
torical Swiss bank secrecy laws under which Swiss banks concealed
bank information from the IRS. Chicago Partner Justin Weisberg and Associate Matthew Bryant
recently received summary judgment for their client Inland Electric
$20 Billion In Assets Corporation, the electrical contractor involved in the construction
In evidence provided by Birkenfeld to the court, managers and of the Montrevelle Condominium Building over the site of the
bankers at the firm, including Birkenfeld, assisted the U.S. clients old Como Inn Restaurant in Chicago. The developer defaulted on
payments resulting in numerous mechanics liens in excess of $10
in concealing their ownership of the assets held offshore by help-
million. There was also a mortgage foreclosure action in excess of
ing these wealthy customers create nominee and sham entities. $20 million. The bank and contractors cooperated to have a receiver
This was done to prevent the risk of losing the approximately $20 appointed to complete construction of the building and sell the
billion of assets under management in the United States unde- condominium units.
clared business.
Due to the refusal of the developer and general contractor to com-
The Scheme ply with discovery, Inland Electric jointly moved with two other
Birkenfeld admitted that he and additional private bankers at claimants for sanctions against the developer and contractor and,
UBS advised U.S. clients to place cash and valuables in Swiss after an evidentiary hearing, the motion was successful, resulting in
the default judgments against both the contractor and developer.
safety deposit boxes, and purchase jewels, artwork and luxury Inland Electric was then opposed by First Midwest Bank which
items using the funds in their Swiss bank account while overseas. held the mortgage on the property, although Weisberg and Bryant
Additionally, they advised the clients to misrepresent the receipt were successful in obtaining a judgment granting priority over the
of funds from UBS in the United States as loans from the bank; mortgage and prevailing over the banks claims that Inland Electric's
destroy all offshore banking records existing in the U.S.; utilize lien was over stated, that it failed to comply with discovery, and that
Swiss bank credit cards that they claimed could not be discovered it waived its lien by the issuance of a lien waiver to date. The judg-
by U.S. authorities; and file false U.S. individual income tax re- ment amount with interest to date is in excess of $1 million.
turns that omitted income earned by the clients and fraudulently
misrepresented that the clients did not have an interest in and Daniels and Newburgh successfully close on
signature authority over accounts held offshore. challenging commercial real estate transaction

Commissioner’ Comment West Palm Beach Partners Steven Daniels and Steven Newburgh
As an indicator of the importance of this case IRS Commissioner recently closed on the sale of a bowling alley and its underlying
land. The closing presented many challenges, not the least of which
Douglas Shulman said on July 19, “I believe this case will send a
concerned an incomplete environmental study, outstanding code
strong signal to anyone hiding money in offshore bank accounts violations, open permits, a pending declaratory action concerning
to avoid paying the taxes they should. The IRS will pursue people a reciprocal easement agreement with the bowling alley’s neighbor
using offshore accounts in this manner as well as financial advisers and problems with the tract’s legal description. Due to financing
and others who orchestrate these tax fraud schemes.” contingencies, it was not known whether or not this deal would
close until three days prior to the scheduled closing date.
Final Comment
In summary, U. S. taxpayers who may have dealings with UBS Franklin Zemel, Jason Gordon
should immediately seek the advice of competent tax counsel receive landmark ruling for Chabad of Nova
to determine their best options before the IRS successfully finds
them by other means. Fort Lauderdale Partner Franklin Zemel and Associate Jason
Gordon received a landmark ruling from a federal judge for their
Attorneys featured in this issue

Robert Cichocki Patrick Cotter Andrea Cox Steven Daniels Toby Eveland Allan Goldberg

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client Chabad of Nova. The Chabad had been seeking to rent space holder certain information. At trial Caracciolo convinced the judge
at a Cooper City strip mall since 2005, but was continually rebuffed that, not only had the client reasonably complied with the request
by the city who cited ordinances that limited space for houses of for information and documents, but the information requested
worship in strip malls. Miami U.S. District Judge Cecilia Altonaga did not exist and accordingly the court could not grant the relief
said the city violated federal religious protection laws when it twice requested. The appellate court agreed and largely adopted the brief
changed its zoning codes to prohibit or restrict religious organiza- and arguments we put forth on behalf of the clients.
tions from opening in business and shopping areas.
Chicago team wins summary
Andrea Cox wins appellate case for major judgment for municipal client
health care and pharmaceutical company
Chicago Partner Hal Morris and Chicago Associates Jenifer
Andrea Cox, a Miami associate, was granted a rare oral argument Caracciolo and Georgia Logothetis won summary judgment on
by the Fourth DCA on a Petition for Writ Certiorari, and success- behalf of an Illinois municipal client and against a large number of
fully argued on behalf of a major health care and pharmaceutical petitioners seeking to legally disconnect their properties from the in-
company. corporated municipality. There the petitioners were seeking discon-
nection by including publicly owned lands in an effort to meet the
The plaintiff had filed a products liability suit against the com- requirements of the Illinois Disconnection Statue. Arnstein & Lehr
pany regarding a drug eluting coronary stent. The stent was a first attorneys successfully argued that such a private use of public lands,
of its kind and went through the rigorous FDA pre market ap- without the consent of the public body entrusted with the control
proval which involved disclosure of its design, manufacturing, and and ownership of the lands, was inappropriate and violated the pub-
marketing procedures as well as the results of its clinical testing. lic use provision of the Illinois Constitution. In a widely reported
The plaintiff sought production of these documents in discovery, case, the trial court agreed with our position and granted judgment
many of which contained confidential and trade secret information. against the petitioners and in favor of the municipality. As a result,
The company produced thousands of pages to the plaintiff, whose the municipal client retains almost $400,000 in tax revenues that
attorney sought court approval to disclose the documents to other would have been lost had the disconnections been successful. This
attorneys nationwide. The trial court granted the request and the win is especially significant as there is only one reported Illinois case
company filed a petition for writ of certiorari in the Fourth District that denied a similar request for disconnection.
Court of Appeal to prevent the wide dissemination of its confiden-
tial documents. Cynde Munzer closes deal with major bank
The Fourth DCA recognized that Florida courts had not previously Chicago Partner Cynde Hirschtick Munzer represented a major
addressed whether a plaintiff may share confidential and trade secret bank in the documentation and closing of a multimillion dollar
information to other attorneys who are not currently involved in Canadian line of credit loan to one of the largest vehicle fleet lessors
litigation regarding a similar product. With no Florida case law in the U.S. She was assisted by the firm’s Ontario International Law
to support the company’s position, Arnstein & Lehr successfully Network member firm, Fogler, Rubinoff LLP.
argued that the court should follow federal law which only allows
sharing with attorneys who represent plaintiffs in collateral litiga-
tion. The Fourth DCA agreed that the company is entitled to Steven Malitz and Daniel Schlade obtain
protect its confidential records and issued the writ of certiorari. victory for junior lender and mortgagee

Hal Morris and Jenifer Caracciolo Partners Steven Malitz and Daniel Schlade obtained a very favor-
able settlement for their junior lender client, even though the value
win in Appellate Court for building co-op 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 Carac-
ciolo secured a significant win in the Illinois Appellate Court on On August 24, 2006, the senior lender loaned a substantial sum to
behalf of a cooperative building corporation. In that action, the the borrower and took back a mortgage secured by the subject prop-
cooperative and its manager were sued for alleged violations of the erty. One day later, the same borrower obtained a loan from our
Illinois Business Corporation's Act for failing to provide a share- client and gave a second mortgage. However, the client “won the

David Golin Jason Gordon Whitney Harrell Kurt Heinz Phillip Hudson, III Stephen Hunt

A r n s t e i n & L e h r U p d at e | FA L L 2 0 0 8

race” to the recorder’s office, recording its mortgage on September 5, banks and attorneys believe that foreclosures are “form” cases. How-
2006. The senior lender did not record its mortgage until October ever, treating a foreclosure as routine can have devastating results.
2006. Thereafter, the borrower defaulted on the two loans and left In this case, the senior lender and its attorneys made a number of
the country, leaving only the subject property to compensate the mistakes. First, they failed to properly review all of the documents
two lenders. As a result of the property condition and the down- on the subject property’s title tract. Second, the senior lender and
turn in the real estate market, the value of the subject property was its attorneys failed to communicate. All of the information needed
less than the amount owed to the senior lender. to protect the senior lender could have been obtained with a simple
phone call, or even a review of public records on the Internet.
The senior lender filed its foreclosure suit on December 29, 2006 Malitz and Schlade seized on these failures, and turned them into a
through its first set of attorneys. The senior lender’s attorneys failed victory for their client.
to name our client as junior lender because they thought our client
had a senior mortgage based on its prior recording of its mortgage. Malitz, Hurwitz and Knisley defend
On April 6, 2007, Malitz and Schlade filed a foreclosure suit on
client against Las Vegas developer
behalf of our client, naming the senior lender as a defendant. The
Partners Steven Malitz and Joel Hurwitz, along with Associate
senior lender appeared through a second set of attorneys, who
Jonathan Knisley, obtained an amazing result for their real estate
defended the case by arguing that the senior lender had prior-
investor clients. In 2005, the clients contracted to purchase invest-
ity. Specifically, the senior lender contended that our client had
ment condominiums in the robust Las Vegas real estate market of-
actual notice of the first mortgage (even though the client recorded
fered by a large Chicago developer. Both before and after contract,
its mortgage first.) Discovery revealed that this was likely a valid
the developer's agents and marketing brochures promised that the
affirmative defense, and if forced to go to trial, the client almost cer-
development would consist of two, identical towers, and that the
tainly would have been relegated to a junior position (i.e., it would
purchase prices for Tower I units would be far less than the purchase
receive no money at a foreclosure sale.)
prices for identical Tower II units. In light of the higher purchase
prices for Tower II units, our clients were promised that they would
That said, when Malitz and Schlade filed the client’s foreclosure
garner tremendous upside in purchasing units in Tower I. Devel-
action, they both expected the senior lender’s two sets of attorneys
oper's agents further promised that the development would be a
to consolidate the two foreclosure cases and press the “priority” de-
rare, stand-alone residential community, with no condotels, gaming
fense. However, they never did so and it became clear to Malitz and
or restaurants.
Schlade that the senior lender’s various attorneys had made a critical
error. Immediately, Malitz and Schlade devised a strategy to extend
In late 2007 upon receiving notices to close, the clients learned that
the client’s foreclosure suit so that the senior lender would foreclose
a second tower would not be constructed and that the Tower II land
its own mortgage, without foreclosing the client’s mortgage. Malitz
had been sold off for a condo hotel, restaurant and gaming. The
and Schlade sought to force the senior lender to “shoot itself in the
clients then sought assistance from Malitz in terminating the real es-
tate contracts. The real estate contracts signed by our clients plainly
read that pre-contract promises from the developer and its agents
The strategy worked perfectly. Unbeknownst to the senior lender’s
were not part of the contract, that the clients were purchasing one
second set of attorneys, on March 4, 2008, the first set of attorneys
unit in only one tower, and that the developer had the right to build
foreclosed the senior lender’s mortgage, without touching or impact-
or not build at its whim. Finally, the contract documents provided
ing the client’s mortgage. Malitz and Schlade sprang this fact on the
that if our clients refused to close, they would forfeit their earnest
second set of attorneys, who were left scrambling and immediately
money and lose the right to purchase the units.
requested a settlement conference. Of particular note, the senior
lender had spent the previous year adamantly refusing to entertain
In demanding rescission, Malitz, Hurwitz and Knisley argued that
any settlement talks. The settlement conference resulted in a very
had the developer disclosed to the clients that Tower II would not
favorable buyout for the client, which most likely had no right to
be built and that their "neighbors" would be a casino, hotel and
any payout on its mortgage.
restaurant, they would have rescinded long ago, before the deadline
to do so expired. Malitz' team further argued that the real estate
There were a number of important lessons from this case—the key
contracts required that the developer give notice of such material
one being that mortgage foreclosures are not routine matters. Many
modifications to the offering such that our clients could rescind.

Attorneys featured in this issue

Joel Hurwitz 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 Two associates join Fort Lauderdale office
back as 2005 the developer knew that Tower II would not be built.
Under threat of bringing a class action suit for fraud, Malitz per- Attorneys Natalie Guerra and Gilda Romano recently joined Arn-
suaded one of the developer's officers to meet with the clients, and stein & Lehr’s Fort Lauderdale office as associates. Guerra is a mem-
thereafter forced the developer to terminate the real estate contracts
ber of the firm’s Litigation Group and will concentrate in municipal
and refund a large portion of the earnest money. In obtaining this
result, the clients avoided purchasing condominium units that had law. She is a graduate of the University of Miami and University of
drastically fallen in value, and paying large mortgages, taxes and Florida Levin College of Law. Throughout her undergraduate career
assessments on what turned out to be poor investments. Further, in and as a summer associate during law school Guerra worked for the
receiving back their earnest money, the clients now had substantial United States Securities & Exchange Commission.
sums to invest in other projects. Finally, the firm's clients were the
only ones who avoided closing on units in a doomed market. Romano is also a member of the firm’s Litigation Group and will
concentrate her practice in the area of complex commercial litiga-
tion. She is a graduate of the University of Florida and the Uni-
New additions versity 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 Attorney Stephen Needham recently joined Arnstein & Lehr as an
LLP from the firm of Thompson Coburn LLP, where she was also a associate in our Chicago office. Needham is a member of the firm’s
partner. Novick concentrates her practice in the area of bankruptcy. Real Estate and Condominium & Community Association practice
She advises, protects and litigates on behalf of banking, trade credi- groups. He is a graduate of Kent State University and Cleveland-
tor and commercial clients. Marshall College of Law.

Novick received her bachelor’s degree in Finance from the Univer-

sity 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
Honors and appointments
Chapter of Risk Management Association, an organization focused
Joel Hurwitz elected president
on managing risk in the banking/credit industry.
of Township High School District 113
Fort Lauderdale office strengthens bankruptcy Joel Hurwitz, a partner in the Chicago office, was recently elected
practice with addition of Stephen Hunt, David Ray president of Township High School District 113 Board for the
2008-2009 term. The Township High School District 113 board
Attorneys Stephen Hunt and David Ray recently joined the firm’s oversees Deerfield High School and Highland Park High School,
Fort Lauderdale office. Hunt joins the firm as a partner and board both located in the North Shore area of Chicago.
certified bankruptcy lawyer. He is a graduate of Georgetown Uni-
versity and Seton Hall University School of Law. He has extensively Jimmy Chatz celebrates 50 years of practice
spoken and published for a variety of associations and publications
on bankruptcy issues. 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.
Ray joins the firm as an associate attorney concentrating his practice Chatz is co-chair of the Bankruptcy, Creditors' Rights, and Restruc-
in bankruptcy litigation from the law firm of Genovese, Joblove & turing Practice Group. He also practices in the areas of corporate
Battista, P.A. He is a graduate of Florida State University and Nova law and business law, mergers and acquisitions, financial planning,
Southeastern University’s Shepard Broad Law Center. and commercial litigation.

Georgia Logothetis Steven Malitz Robert McKenzie Ronald Menaker Mark Miller Hal Morris

A r n s t e i n & L e h r U p d at e | FA L L 2 0 0 8

He has been an active member of several organizations, serving on ing body of the ISBA. Levine has been appointed to the ISBA Real
the Commercial Law League of America (president 1984-85) and Estate Section Council, ISBA Commercial Banking and Bankruptcy
as a member of its board of governors. He is a former member of Section Council, and ISBA Committee on Legislation.
the Political Action Committee of the Illinois State Bar Association
(ISBA) and is a current member of its Special Committee on Cer- John Ropiequet elected president
tification. Since 1988, he has been a member of the ISBA General of North Shore United Way
Assembly and also served on the Commercial, Banking & Bank-
ruptcy Law Section Counsel Committee. He served as chairman of Chicago Partner John Ropiequet has been elected to the position of
the Bankruptcy and president of United Way of the North Shore, which serves Chicago's
Reorganization Com- northern suburbs from Evanston to Lake Bluff, for 2008-09.
mittee of the Chicago
Bar Association and
was a founder and
Loretta O'Keeffe appointed to Ethics
vice president of the Committee, Leadership Institute
American Bankruptcy
Institute. Tampa Partner Loretta O'Keeffe was recently appointed to both
The Florida Bar Professional Ethics Committee and the Hillsbor-
Chatz has written ough County Bar Association's (HCBA) Leadership Institute.
extensively on bank-
Chicago Partner Jimmy Chatz and his wife ruptcy, creditors' rights She will serve a three-year term on the Professional Ethics Com-
Vera welcome guests celebrating his 50 years mittee. It is charged with answering ethics inquiries from members
and the Uniform Com-
in the practice of law of The Florida Bar and reviews informal advisory opinions issued
mercial Code and also
served as a visiting lecturer in the J.L. Kellogg Graduate School of by ethics department attorneys. The committee publishes formal
Management at Northwestern University and as an adjunct profes- advisory opinions to guide members in interpreting and applying
sor of Law at John Marshall Law School. the ethics rules.

The HCBA Leadership Institute was created to identify and develop

Jeff Shapiro nominated to
young attorneys of diverse backgrounds who have the potential to
Council on Litigation Management develop into future HCBA and Tampa community leaders. The
eight month program consists of seven learning modules and culmi-
Miami Partner Jeff Shapiro was recently nominated for member- nates with the completion of a community service project chosen,
ship in the Council on Litigation Management by his client, Kevin managed, and completed by Leadership participants.
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
Phil Hudson to chair Beacon
law firms are extended membership by invitation only, based on Council Aviation Committee
nominations from CLM Fellows. Each member attorney must com-
plete two hours of Council-developed CLE litigation management Miami Partner Phil Hudson was recently nominated by the Miami-
training annually. Dade 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
Samuel Levine elected to ISBA General Assembly
official economic development association serving to facilitate busi-
ness investment and promote Miami and Dade County as an ideal
Chicago Partner Samuel Levine has been elected to the Illinois
location for businesses to operate.
State Bar Association General Assembly. The assembly is the govern-

Attorneys featured in this issue

Cynde Hirschtick Stephen Needham Steven Newburgh Michelle Novick Loretta O’Keeffe Joseph Ourth

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Toby Eveland appointed to ISBA diversity task In the news

force, board of Lesbian and Gay Bar Association

Toby Eveland, an associate in the Chicago office, was appointed to Tampa office hosts Leukemia Society
serve on the Illinois State Bar Association's Task Force on Diversity. Light the Night reception, donates to charity
The Task Force was created to expand opportunities for minority
attorneys to join the ISBA and to become involved in leadership in The Tampa office of Arnstein & Lehr recently hosted a reception
the legal community. for the Suncoast Chapter of the Leukemia & Lymphoma Society
(LLS) to celebrate its Light the Night Walk. Light the Night is The
Additionally, Eveland was elected to the board of directors for the Leukemia & Lym-
Lesbian and Gay Bar Association of Chicago (LAGBAC). Through phoma Society's
its educational initiatives, LAGBAC seeks to increase the awareness nationwide evening
of the public, the legal profession, and the judicial system about walk. The office
legal issues of particular concern to the gay and lesbian community. hosted clients and
Leukemia Society
Art Janura named chairman of Northwest representatives.
Suburban Bar Association committee
The Walk was held
Chicago Partner Arthur Janura has been named chairman of the November 8 at
Local Government Committee of the Northwest Suburban Bar As- George M. Stein-
sociation. brenner Field in
Tampa. Participants Tampa attorneys present the Suncoast Leukemia
in the walk carried il- & Lymphoma Society with a $5,000 donation to
Steven Malitz named one of 40 luminated balloons to
their Light the Night fundraiser.
Illinois Attorneys Under 40 to Watch celebrate and commemorate lives touched by cancer. Funds raised
support their mission to cure leukemia, lymphoma, Hodgkin's
Chicago Partner Steven Malitz was recently recognized by Law disease and myeloma, and to improve the quality of life of patients
Bulletin Publishing Company as a 2008 recipient of their 40 Illinois and their families.
Attorneys Under 40 to Watch. Malitz was recognized by attorneys,
judges, and opposing counsel outside of Arnstein & Lehr for his During the reception, guests listened to the inspiring story of
skill and achievement. A full-page profile on Malitz’ career appeared Samantha Lee, the Suncoast Chapter Girl of the Year, who shared
in a supplement to the September edition of Chicago Lawyer and her story on her battle with leukemia. Coordinating Partner Robin
Chicago Daily Law Bulletin. Trupp then presented a $5,000 check to LLS representatives on
behalf of the office and firm.
Franklin Zemel appointed to American Arbitra-
tion Association’s national roster of arbitrators Hudson welcomes Florida lieutenant governor
to Miami economic development partnership
Fort Lauderdale Partner Franklin Zemel was recently appointed
to the American Arbitration Association’s (AAA) national roster of Miami Partner Phil Hudson provided introductory remarks for
arbitrators. The AAA provides services to individuals and organiza- Florida Lieutenant Governor Jeffrey Kottkamp who spoke on July
tions who wish to resolve conflicts out of court. It is the nation's 25 at the Biltmore Hotel in Coral Gables. Kottkamp was invited to
largest full-service alternative dispute resolution provider, address- speak to The Beacon Council, Miami-Dade County’s official eco-
ing disputes involving, but not limited to, employment, intellectual nomic development partnership by Hudson and Arnstein & Lehr.
property, consumer, technology, health care, financial services,
construction, and international trade conflicts. The Beacon Council's mission is to "facilitate business investment

Gilda Romano John Ropiequet Tracey Salinski Daniel Schlade Jeff Shapiro Mark Spognardi

A r n s t e i n & L e h r U p d at e | FA L L 2 0 0 8

and promote South Florida as a business locale." Hudson serves as tion. Miller worked with Olympic officials to deal with rules or
a member of its board of directors and is vice chair of The Beacon issues that arose during the archery competitions. He also served as
Council's aviation committee. At his invitation, Lt. Governor Kott- an ambassador to the 2016 Olympic games, in which Chicago is a
kamp met privately with The Beacon Council's board of directors candidate city
and then addressed the full membership on current south Florida
economic development initiatives being undertaken by the state. Steven Daniels attends Anti Defamation League
leadership conference, honored for ADL work
Arnstein & Lehr hosts Just the
Beginning Foundation Event West Palm Beach Partner Steven Daniels recently attended the Anti
Defamation League's (ADL) 2008 Shana Amy Glass National Lead-
On June 25 Arnstein & Lehr's Chicago office participated in Just ership Conference in Washington, DC. ADL leaders from across
the Beginning Foundation's Summer Legal Institute Program. Just the country attended a series of briefings from legislators, civil rights
the Beginning Foundation (JTBF) is a non-profit pipeline orga- leaders, ambassadors and foreign policy experts. During the confer-
nization supporting students of color and other underrepresented ence, the ADL Florida Delegation discussed support for Israel,
groups with free educational and mentoring programs as they move religious liberty, and comprehensive immigration reform. Daniels
towards a legal career. serves on ADL’s National Commission and the Florida Executive
Committee and regional board. He is also the co-chairman of the
The students took a tour of the office, listened to a presentation Florida International Affairs Committee.
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 In recognition of his significant involvement in ADL, Daniels was
Diversity Committee, lead the discussion that touched on the im- recently recognized as the ADL’s Table Honoree at the Palm Beach
portance of teamwork and commitment to the success of a law firm. Chapter of the Association of Fundraising Professionals National
Philanthropy Day luncheon.
Ray Werner appointed to ABA
Commission on Racial and Ethnic Diversity Robin Trupp profiled in Tampa Bay Business Journal

Chicago Managing Partner Ray Werner recently completed his An article on the personal life and legal career of Tampa Partner
term on the Board of Governors of the American Bar Association Robin Trupp appeared in the October 17 issue of the Tampa Bay
and also as a member of its Audit Committee. ABA President Tom- Business Journal’s Executive Profile. The article, in question and
my Wells appointed Werner to sit as a commissioner on its 2008-09 answer format, addressed his thoughts on business, law, and life
Commission on Racial and Ethnic Diversity in the Profession. The growing up and living in Tampa.
Commission’s stated goal is to promote the full and equal participa-
tion in the legal profession by minorities, women, and persons with Arnstein & Lehr matches employee donations,
disabilities. sends student to leadership conference

Mark Miller attends Summer Arnstein & Lehr recently assisted a student mentored by Chicago
Olympic games as FITA council member Associate Laura Lau Marinelli in raising funds to attend the up-
coming Junior Presidential Youth Inaugural Conference (JrPYIC) as
Chicago Partner Mark Miller attended the 2008 Olympics in a Presidential Youth Inaugural Conference Scholar. The firm agreed
Beijing, China as a council member of the International Archery to match any donation made by our employees up to $1,600 in an
Federation (FITA). He currently serves as chairman of the Consti- effort to raise the $3,200 needed for the student to attend the Con-
tution of Rules Committee, an elected position within the federa- ference. The firm exceeded the fundraising goal, raising $3,306.

Attorneys featured in this issue

Paul Starkman David Sugar Howard Swibel Jason Tremblay Robin Trupp Justin Weisberg

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

Held every four years in January following the presidential election, Wanted to Ask About Mechanics Liens But Were Afraid to Do So”
the JrPYIC provides scholars with an opportunity to take part in for the Summer 2008 issue of Construction Connection, the of-
and share in the excitement and ceremony of the inauguration of ficial publication of the Association of Subcontractors and Affiliates
the president and vice president of the United States. (ASA). The article simplifies the Mechanics Lien Act, utilizing a
question and answer format.
Firm hosts Webinar on IRS’ investigation of
currency transactions and foreign bank accounts Illinois Condominium
Property Act updated
Chicago Partners Bob McKenzie and Bruce Balonick, along
for 2008-09
with Larry Slonina, vice president of U.S. Advisory Services, Inc., 2 0 0 8 - 2 0 0 9 E D IT I O N

presented a Webinar on September 18 for more than 60 individuals Includes a summary and detailed explaination

Chicago Partners Allan Goldberg and of all new condominium legislation taking
effect in 2008 and 2009

from across the country concerning the Internal Revenue Services

David Sugar recently updated The
program of aggressively investigating currency transactions and 5555

Illinois Condominium Property Act, a

foreign bank accounts.
publication of all Illinois statutes con-
cerning the ownership in and rights
The Webinar discussed the currency reporting rules and the best
and responsibilities of parties under
ways to assist clients in meeting their obligations and avoid the pen-
the condominium form of ownership
alties now imposed by the IRS which includes both asset forfeiture
of property. The 2008-09 edition
and prosecution. It also covered compliance issues for foreign bank
includes a summary and detailed
accounts held by Americans.
explanation of all new condominium
legislation taking effect in 2008 and 2009.
Arnstein & Lehr hosts security and legal strategies
seminar for college administrators, educators West Publishing updates Paul
Starkman employment arbitration book
On September 18 the Arnstein & Lehr Higher Education Practice
Group partnered with the strategic security firm of Hillard Heintze
West Publishing recently published updates to a book co-authored
LLC to present a seminar on the security and legal strategies for a
by Chicago Partner Paul Starkman. Written as a comprehensive,
safer business and college campuses.
how-to practice guide, Employment Arbitration: Law and Practice,
provides a background of employment arbitration and covers the
During the seminar Hillard Heintze and Arnstein & Lehr provided
pros and cons of turning to mandatory arbitration or other alterna-
close to 50 educators and administrators with an overview of steps
tive dispute resolution systems for resolution of employment dis-
they should consider taking to drastically reduce the probability of
putes. It also explains how to adopt and draft effective arbitration
such a tragedy. They also addressed ways to assess those students ex-
agreements, how to arbitrate employment disputes, and details the
hibiting behavior that may spark a violent outburst, while minimiz-
practical aspects of litigation surrounding challenges to a manda-
ing the university's exposure to lawsuits. Arnstein & Lehr partners
tory arbitration policy and litigation after an arbitration award. The
involved in the seminar included Patrick Cotter, Kurt Heinz,
updates supplement the book with new case law and legislative de-
Norman Jeddeloh, Joseph Ourth, and Jason Tremblay.
velopments affecting employment arbitrations, as well as new forms
Books, journals and articles and sample documents. They also examine recent trends and new
statistical studies of employment arbitration programs.
Samuel Levine authors construction article
Pat Cotter and Ron Menaker write
Samuel Levine, a partner in the Chicago office, recently authored IICLE chapter on Jury Selections, Instructions
an article entitled “20 Questions: Things Subcontractors Always
Chicago Partners Pat Cotter and Ron Menaker recently co-
authored 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.

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,
Raymond Werner Franklin Zemel

A r n s t e i n & L e h r U p d at e | FA L L 2 0 0 8

questioning, selection of alternate jurors, types of questions, highly Paul Starkman co-authors article for Law Reporter
publicized cases, jury instructions and, equal access to juror infor-
mation. Chicago Partner Paul Starkman recently co-authored an article
entitled “Refueling Assistance for Drivers with Disabilities” that
Christina Lutz publishes article was published in the July/August issue of Mental and Physical Dis-
for The Seventh Circuit Review ability Law Reporter. It covered ADA/legal aspects of gas station
responsibilities to drivers with disabilities seeking assistance to refuel
Chicago Associate Christina Lutz recently published a scholarly their gas tanks. The article asserts that for those with manual and
article analyzing the Seventh Circuit's recent decision in African mobility-related disabilities, there is much more we can and should
American Slave Descendents Litigation. The Seventh Circuit Review expect from gas station owner/operators.
is a publication of Chicago-Kent College of Law. Chicago Partner
Hal Morris founded this publication and remains the professor re-
sponsible for the publication of the Review and the Honors Seminar Say goodbye to paper and
associated with it. Lutz’ article and The Seventh Circuit Review can receive Update electronically!
be found at
Why? conservation. By choosing
You will get it faster. Opt for the electronic over the paper
Bob Butters authors intellectual property chapter Arnstein & Lehr’s Update news- version, you will be helping the
letter in the electronic version environment.
Chicago Partner Bob Butters wrote a chapter for "Common Issues and bypass the post office. We
in IP Law," published by Thomson Reuters/Aspatore. Butters’ will send you an e-mail message
chapter, The Use of Copyright Law and Effective License Agreements How?
with a link to the latest issue as Email us at:
to Protect Web-Accessible Databases reviews various cases, licensing soon as it is posted to our Web
agreements and confidentiality issues. The chapter is part of the
site, which also means you will We will add you to our elec-
critically acclaimed Inside the Minds series, which provides readers of receive it days sooner.
all levels with proven business intelligence from C-Level executives tronic mailing list and send you
from the world's most respected companies. a link to receive our newsletters
It is better for the environ- electronically.
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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

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