MEMORANDUM

TO:

FROM:

SUBJECT:2012 Midyear Meeting of the American Bar Association and

Meeting of the House of Delegates

DATE:March 2, 2012

______

REPORT ON THE ABA MIDYEAR MEETING

The 73rd Midyear Meeting of the American Bar Association (the “ABA”) was held February 2-6, 2012 at the Sheraton New Orleans Hotel in New Orleans, Louisiana. Wide varieties of programs were sponsored by committees, sections, divisions, and affiliated organizations. The House of Delegates met for one day. The Nominating Committee also met.

The Nominating Committee sponsored a “Meet the Candidates” Forum on Sunday, February 5, 2012. The following candidates seeking nomination at the 2013 Midyear Meeting gave speeches to the Nominating Committee and to the members of the Association present: Timothy L. Bertschy of Illinois and G. Nicholas Casey of West Virginia, candidates for Treasurer; Mary L. Smith of Illinois, Mary T. Torres of New Mexico and Pauline A. Weaver of California, candidates for Secretary; and William C. Hubbard of South Carolina, candidate for President-Elect.

THE HOUSE OF DELEGATES

The House of Delegates of the American Bar Association (the “House”) met on Monday, February 6, 2012, Linda A. Klein of Georgia, presided as Chair of the House. The New Orleans Fire Department presented the colors. The invocationfor the House was delivered by The Honorable Bernette Joshua Johnson, Associate Justice of the Louisiana Supreme Court. Laura V. Farber of California, Chair of the House Committee on Credentials and Admissions, welcomed the new members of the House and moved that the signed roster be approved as the permanent roster for this meeting of the House. The motion was approved.

Chair Klein recognized all those lawyers who had served in the House of Delegates for more than 25 years. The Honorable Lawrence Walsh of Oklahoma, former President of the Association from 1975-1976, was recognized on the occasion of his 100th birthday.

Deceased members of the House were named by the Secretary of the Association, Hon. Cara Lee T. Neville of Minnesota, and were remembered by a moment of silence. ChairKlein recognized Michael H. Reed of Pennsylvania on a point of personal privilege to speak about the passing of Jerome J. Shestack, former ABA President and member of the Pennsylvania delegation. Marna S. Tucker of the District of Columbia was recognized to speak about the passing of David B. Isbell, member of the District of Columbia delegation. Robert L. Weinberg of the District of Columbia was recognized to speak about the passing of Timothy J. May, former member of the District of Columbia delegation.

Palmer Gene Vance II of Kentucky, Chair of the Committee on Rules and Calendar, provided a report on the Final Calendar for the House, including recently filed reports. He moved to consider the late-filed reports, adopt the final calendar and approve the list of individuals who sought privileges of the floor. All three motions wereapproved. Mr. Vance noted that the deadline for submission of Resolutions with Reports for the 2012 Annual Meeting is Tuesday, May 8, 2012, while the deadline for Informational Reports is Friday, June 1, 2012. He also referred to the consent calendar, noting the deadline for removing an item from the consent calendar.Later in the day, Mr. Vance moved the items remaining on the consent calendar. The motion wasapproved.

For more details of the House meeting, see the following two-part report of the House session. The first part of the report provides a synopsis of the speeches and reports made to the House. The second part provides a summary of the action on the resolutions presented to the House.

I.SPEECHES AND REPORTS MADE TO THE HOUSE OF DELEGATES

Welcome by the Mayor of New Orleans

The Honorable Mitchell J. Landrieu, Mayor of New Orleans welcomed the House, sharing that it has been his great honor as an executive to watch the law as it lives. He reminded delegates that lawyers are the protectors of liberty, freedom, and justice. Lawyers understand the tension recognized by our founding fathers that where there is a right, there is a corresponding responsibility. Mayor Landrieu stated that the future of America lies in finding the right balance between the tension of rights and responsibilities.

Mayor Landrieu thanked the members of the House for coming to New Orleans. He told delegates that they are standing in the middle of a great American success story because the city has suffered some catastrophic disasters. New Orleans suffered dramatically from a loss of tourism after 9/11, Hurricanes Katrina and Rita, as well as others, the national recession, and the BP oil spill. Mayor Landrieu stated that the people of New Orleans have demonstrated resilience. He pointed to the new Superdome, as a symbol of resurrection and redemption. He touted our country as the greatest in the world, stating that we are strong, fast, and will continue to lead the world but that we can always strive to do better. He urged lawyers to speak to the nation to help us get back to the proper balance between rights and responsibilities.

Statement by the Chair of the House

Linda A. Klein of Georgia, Chair of the House, welcomed the delegates in the House and recognized members of the various House committees. She announced that key speeches and debates would be publicized and that the House Committee on Technology and Communications would be reporting on the proceedings of the House via Twitter @ ABAhod.

Chair Klein announced that complimentary copies of the Judges’ Journal from the Judicial Division were available. She urged delegates to review the article from President Robinson on the funding crisis of state courts.

She recognized the Committee on Rules and Calendar and reminded members where they could find the House Rules of Procedure. Chair Klein introduced the Tellers Committee and reviewed procedures for speaking.

Chair Klein announced that at the 2012 Annual Meeting, the House will elect one member to the Committee on Scope and Correlation of Work. The position will be a five-year term. She encouraged those interested in the position to contact members of the Scope Nominating Committee and submit an application by March 16, 2012.

Chair Klein emphasized the value of ABA membership and encouraged House members to ask all of the lawyers in their firms to join and participate in the ABA’s work. She noted that this year’s membership campaign is Rewards for Referrals.

Chair Klein noted that the appointments process for President-Elect Bellows is currently underway.

She explained that the Fund for Justice and Education (FJE) is the Association’s charitable arm and encouraged members of the House to continue to financially support FJE programs. She asked members to consider making a donation to the ABA Legal Opportunity Scholarship Fund, which is one of the FJE programs.

Chair Klein discussed the obligations and responsibilities of House members to take legislative priorities to lawmakers in Washington, D.C. She asked each delegate to be part of the Grassroots Action Team and attend ABA Day on April 17-19, 2012 in Washington, D.C. She suggested that members register early, noting that there is no registration fee prior to March 19, 2012.

At the conclusion of the meeting, Chair Klein thanked the members of the House committees, the staff supporting the House committees, and the Committee on Rules and Calendar.

Statement by the Secretary

Hon. Cara Lee T. Neville of Minnesota, Secretary of the Association, moved approval of the House of Delegates Summary of Action from the 2011Annual Meeting, which was approved by the House. On behalf of the Board of Governors, Secretary Neville presented and referred the House to Report Nos. 177, 177A and 177B, the Board’s Informational, Transmittal and Legislative PrioritiesReports.

Statement by the ABA President

President Wm. T. (Bill) Robinson of Kentucky focused his remarks to the House on the crisis of state court underfunding. He remarked that it is the most pressing issue facing the legal profession today, as it has the potential to harm clients, threaten our system of justice, and slow the nation’s economic recovery. After praising Past President Zack for his foresight in creating the Task Force on the Preservation of the Justice System, President Robinson reported that the Co-Chairs, Theodore Olson and David Boies, had agreed to continue in their leadership roles for another year.

Emphasizing the magnitude of the problem, President Robinson explained that states have reduced their court budgets, suspended the filling of clerk vacancies, reduced staff, cut the courthouse operating hours. Most states devote less than three percent of their operating budget to its judiciary, and no state contributes more than four percent of its operating budget to its judiciary, even though the judiciary is one of the three co-equal branches of government. We need to educate the public, business leaders, and legislators about this problem. To that end, President Robinson unveiled a videothat has been created about the crisis of state court underfunding. He reported that the ABA has placed a steady stream of editorials in newspapers across the country, has sent information about this problem to state and local bar leaders, and has created an online resource on our website. The response has been encouraging and has led to the development of partnerships between the ABA and business/civic associations, such as the U.S Chamber of Commerce, the Association of Corporate Counsel, and the Federalist Society.

President Robinson told members of the House that the Association will continue to pursue this cause under the leadership of President-Elect Bellows and President-Elect Nominee Silkenat. He encouraged delegates to participate in Law Day 2012 where the theme will be “No Courts, No Justice, No Freedom.” The goal for Law Day is to have a rally or press conference on the steps of each state capital. An adequately funded and independent court system is the key to constitutional democracy, which is the key to our freedom. President Robinson concluded his remarks with the assurance that the ABA will never stop standing up and speaking out for our courts.

Statement by the Treasurer

The Treasurer, Lucian T. Pera of Tennessee, referred members of the House of Delegates to his written report. He reported that the Association’s finances are sound. The ABA received a clean audit for Fiscal Year 2011, after a smooth transition to new auditors. Mr. Pera discussed the downward trend in dues revenue but explained that the leadership and staff have been working hard to reverse this trend. Despite some growth in membership, Mr. Pera reported that the current projection is that dues revenue will be down slightly this year. With regard to non-dues revenue, Mr. Pera reported some growth.

Looking ahead, the Finance Committee of the Board of Governors recently instructed the financial services leadership to budget for next year with the expectation that revenue will remain approximately the same as this year. As a result, the budget for Fiscal Year 2013 is going to be tight. The financial staff and volunteer financial leadership have also been instructed by the Board’s Finance Committee to prepare a coherent and sustainable plan of revenue and expenses for the next two to five years. Lastly, Mr. Pera reported that the building in D.C. sold in December 2011 with net sale proceeds of $47,000,000.00 and that the Board of Governors designated the establishment of a reserve to help defray certain real estate occupancy costs in D.C.

Statement by the Executive Director

Jack L. Rives of Illinois, Executive Director and Chief Operating Officer of the ABA, reported on recent Association developments and progress. He noted that this year’s mid-year meeting broke attendance records and he emphasized the importance of membership to the Association. A decline in membership began five years ago and a loss of 10,000 members was forecast for Fiscal Year 2011. In fact, though, the Association gained 5,000 members last year. Mr. Rives expressed his confidence that our membership will continue to grow but cautioned that we must show the value of membership. He highlighted the new Premier CLE programming that is offered as a members-only benefit. Staff is working on a new “EmailPreferenceCenter” by which members may selectively receive emails, limited as desired by sender or content. Mr. Rives commended the work of the Standing Committee on Membership, and he spoke of the new member-get-a-member program, Rewards for Referrals. He encouraged members of the House to tell other lawyers, including law firms, about the value of the ABA.

Mr. Rives noted that we have to prioritize how we spend money. To that end, he reported that our new budgeting process is working well. Another significant development has been the sale of the building in D.C. Mr. Rives reported that we are in the final stages of finalizing a lease for new space in D.C.

Mr. Rives observed that our “new” website was launched just one year ago, on February 7, 2011, and he spoke of continuing improvements to the website. He said we are looking to increase the amount of online advertising revenue. He also reported that the Association’s business continuity plan is now undergoing a certification process. The certification process is expected to be complete by June, and the ABA will be the first large association to be certified.

Report of the Nominating Committee

The Nominating Committee met on Sunday, February 5, 2012. On behalf of the committee, Robert T. Gonzales of Maryland, Chair of the Steering Committee of the Nominating Committee, reported on the following nominations for the terms indicated:

MEMBERS OF THE BOARD OF GOVERNORS FOR THE 2012-2015 TERM

District Members

District 3:Thomas R. Curtin of New Jersey

District 5:William T. Coplin, Jr. of Alabama

District 9:John S. Skilton of Wisconsin

District 14:Laura V. Farber of California

District 15:Kenneth G. Standard of New York

District 16:Timothy W. Bouch of South Carolina

District 17:Paul T. Moxley of Utah

Section Members-at-Large

Section of Family Law

Timothy B. Walker of Colorado

Section of Taxation

Kenneth W. Gideon of the District of Columbia

Minority Member-at-Large

Michael E. Flowers of Ohio

Judicial Member-at-Large

Jodi B. Levine of Oklahoma

Young Lawyer Member-at-Large

William Ferreira of the District of Columbia

OFFICERS OF THE ASSOCIATION

Chair of the House of Delegates for 2012-2014

Robert M. Carlson of Montana

President-Elect for 2012-2013

James R. Silkenat of New York

Remarks by President-Elect Nominee

In his remarks to the House, James R. Silkenat of New York, President-Elect Nominee, conveyed his gratitudeto the Nominating Committeeand hishopesfor the ABAfor the future. He acknowledged thatour justice systemis facing difficult issues, such asunacceptable cuts in state court funding and theevolutionof legal education. He noted that the ABA is working to increase access to justice for all Americans andtomake the ABA the nationaland internationalvoice of the legal profession. He emphasized that he wouldwelcomeideas, advice, and input from membersof the Association concerning ABA priorities. He urgedthe Associationtopursue the work thatit hasto do in order to make the Association the proud champion of the rule of law that its members need it to be.

Remarks on Commission on Ethics 20/20

Past President Carolyn B. Lamm gave a brief report on the Commission of Ethics 20/20. After providing an overview of the Commission, Past President Lamm explained that the process used by the Commission has been open, transparent, global, and collaborative. The Commission’s outreach has included early release of draft proposals, receipt of hundreds of comments, public hearings, and presentations to ABA entities, state, local and international bar associations.

The Commission plans to present its proposals to the House of Delegates in two phases – August 2012 and February 2013. The proposals in August 2012 will address technology as it relates to confidentiality and marketing, outsourcing, and interstate mobility issues, including admissions in new jurisdictions and conflict screening for laterals. The proposals in February 2013 may address conflicts and related choice of law issues, alternative practice structures, including choice of law issues, and inbound foreign lawyers. Past President Lamm stated that the Commission has not yet taken a position on these issues and will do so in view of the comments it receives. She noted that the Commission has previously rejected proposals to amend the model rules to permit multidisciplinary practice, publicly traded law firms or to allow outside non-lawyer ownership and investment in law firms.

Remarks on the “State of the State Courts”

The Honorable Eric T. Washington, President of Conference of Chief Justices, reported that the partnership between the Conference and the ABA has grown stronger, gained momentum, and is making a difference. As an example of the partnership, he referred to the development of standards for language access in the courts to provide equal access to justice for persons with limited English. He wholeheartedly endorsed Resolution 113 and called for its immediate passage.

In addition, Judge Washington explained that a common bond between the Conference and the ABA is the protection of judicial independence. A recent threat to judicial independence has been the chronic underfunding of courts. Under the leadership of President Robinson and Past President Zack, the ABA has put the severity of the court funding crisis in the headlines. Judge Washington emphasized the importance of the rule of law in our courts. Protecting the rule of law requires more than just money; it requires an understanding of the proper role of the courts. Yet the courts’ role in our democracy is misunderstood. Both the Conference and the ABA have been working to develop innovative civics education programs. In closing, Judge Washington thanked the members of the House for their work in promoting the fair administration of justice and preservation of American exceptionalism through the protection of the courts and the rule of law.

Report of House Committee on Resolution on Impact Review