MEMORANDUM
TO:
FROM:
SUBJECT:2015Annual Meeting of the American Bar Association and
Meeting of the House of Delegates
DATE:September 21, 2015
______
REPORT ON THE ABA ANNUAL MEETING
The 137thAnnual Meeting of the American Bar Association (the “ABA” or the “Association”) was held August3-4, 2015, at the Hyatt Regency Chicago Hotel in Chicago, Illinois. Wide varieties of programs were sponsored by committees, sections, divisions, forums and affiliated organizations. The House of Delegates met for one and a half days. The Nominating Committee also met.
The Nominating Committee sponsored a “Coffee with Candidates” Forum on Sunday, August 2, 2015. The following candidates seeking nomination at the 2016 Midyear Meeting gave speeches to the Nominating Committee and to the members of the Association present and responded to questions: Michelle A. Behnke of Wisconsin, Timothy W. Bouch of South Carolina, and Kara I. Smith of Oklahoma, candidates for Treasurer of the Association; Mary L. Smith of Illinois, candidate for Secretary; Deborah Enix-Ross of New York, candidate for Chair of the House of Delegates; and Hilarie Bass of Florida, candidate for President-Elect.
THE HOUSE OF DELEGATES
The House of Delegates of the American Bar Association (the “House”) met on Monday, August 3, and Tuesday, August 4, 2015. Patricia Lee Refoof Arizonapresided as Chair of the House of Delegates.
The Chicago Police Department Pipe and Drum Color Guardpresented the colors. The invocation for the House was delivered by Paula H. Holderman of Illinois. The Chair of the House Committee on Credentials and Admissions, Hon. Leslie Miller of Arizona, 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 wasapproved.
Reginald M. Turner, Jr. of Michigan, Chair of the Committee on Rules and Calendar, provided a report on the Final Calendar for the House. He moved to adopt the final calendar and approve the list of individuals who sought privileges of the floor. All motions wereapproved. Mr. Turnernoted the deadline for submission of Resolutions with Reports for the 2016 Midyear Meeting is Wednesday, November 18, 2015, while the deadline for Informational Reports is Friday, December 4, 2015. He also referred to the consent calendar, noting the deadline for removing an item from the consent calendar or from the list of resolutions to be archived. Mr. Turner also reminded the House of the treatment of Reports 400A and 400B regarding the archiving of policies.
Later during the meeting, Mr. Turnermoved the items remaining on the consent calendar. The motion wasapproved.
Chair Refoalso asked for recognition of those who had given their lives in defense of our freedom.
Deceased members of the House were named and remembered by a moment of silence. Chair Refo recognized H. Thomas Wells, Jr. of Alabama to speak in honor of Wade H. Baxley of Alabama, former member of the Board of Governors. Chair Refo also recognized Wayne Positan of New Jersey to speak in honor of Stanley Brotman, Adrian Foley and William McGuire, former members of the House of Delegates.
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
Statement by the Chair of the House of Delegates
Patricia Lee Refo of Arizona, Chair of the House of Delegates, welcomed the delegates in the House and thanked the ABA Communications and Media Relations Division for informing ABA members, the legal community and the general public about developments in the House.
Chair Reforecognized members of the various House committees. She extended a special welcome to new members of the House and recognized those delegates who have served the House for 25 years or longer. She also personally acknowledgedRoberta Cooper Ramo of New Mexico, the 2015 ABA Medal Recipient.
In her statement to the House, Chair Refo discussed the procedure for addressing the business and calendar of the House.She thanked the Committee on Rules and Calendar, chaired by Reginald M. Turner, Jr. and comprised of members Kelly-Ann F. Clark, Joseph D. O’Connor, Christina Plum, and Charles J. Vigil and staff members, Marina Jacks, Alpha Brady and Rochelle Evans. She also recognized the Tellers Committee, chaired by RoulaAllouch of Kentucky.
Chair Refostated that the Fund for Justice and Education is the ABA’s charitable arm and urged member support of FJE.She also recognized the importance of the ABA Legal Opportunity Scholarship Fund, which is an FJE project.
Chair Refo highlighted the important policy role of the House, identifying recent successes where the ABA urged Congress to support the Legal Services Corporation and to reauthorize the Violence Against Women Act.She encouraged all members to be active in the ABA Grassroots Action Team and to participate in ABA Day in Washington, D.C.The next ABA Day will be April 19-21, 2016.
Statement by the Secretary
Secretary Mary T. Torres of New Mexico moved that the proposed Summary of Action for the House for the 2015 Houston Midyear Meeting be adopted as the official record of the House. The motion was approved. Secretary Torres later moved that the House adopt the recommendations for the continuation of certain special committees and commissions. The motion was approved.
Remarks by the Mayor of Chicago
The Honorable Rahm Emanuel, Mayor of Chicago, welcomed the members of the House of Delegates to Chicago. Mayor Emanuel thanked the ABA for having its headquarters in Chicago and for holding its Annual Meeting in the city.
Mayor Emanuel discussed the importance of Chicago’s economy in the world and highlighted Chicago’s educational system as the key to continuing that leadership. He announced that beginning in September of 2015 Chicago will be the first city in America to implement a policy extending free community college educational opportunities to achieve a two-year degree for all Chicago high school graduates attaining a grade point average of B or higher.
Finally, Mayor Emanuel encouraged members of the legal profession to focus on the importance of community trust and safety in matters relating to law enforcement and the criminal justice system.
Statement by the ABA President
ABA President William C. Hubbard of South Carolina stressed the historical significance of June 15, 1215. He was honored to be among 900 American lawyers and guests at a ceremony marking the 800th anniversary of Magna Carta and rededicating its sealing at Runnymede, England.Magna Carta's significance for the advancement of liberty and the pursuit of justice is paramount to the ABA and to our justice system.The ABA was prominently mentioned across the world throughout the anniversary celebrations, and it was a stunning culmination of the year-long outreach and activities educating America about Magna Carta’s legacy to the rule of law. President Hubbard thanked the members of the Magna Carta committee for its hard work and diligence to make the year a great success.
In contrast to that glorious occasion, President Hubbard expressed grief over the recent senseless gun murders at Emanuel AME Church in Charleston, South Carolina.He noted that this incident brings into question our concepts of good and evil, of right and wrong, and of fairness and justice. As lawyers, these are the issues we face every day. This tragedy emphasizes the need and the time for leadership. Lawyers have been, and must continue to be, role models to all people – our communities, our states, our nation, and the world.
President Hubbard emphasized that lawyers have a duty to pursue justice. They must live and conduct themselves to that creed every day. He stated that now is the time for justice reforms to rid our criminal justice system of elements of racism. It is time to enact reforms to reduce the number of nonviolent offenders in prison and to address the explosion growth in prison population and costs. It is time to reduce or eliminate thousands of collateral consequences statues that keep former inmates from reintegrating into society. Over the last 6 months, President Hubbard noted, the ABA and the NAACP Legal Defense and Educational Fund convened prosecutors, judges, and law enforcement officials to develop ways to accomplish these goals.
President Hubbard stressed that lawyers must continue to lead with their expertise to end gun violence, end domestic violence, and fix our broken and overwhelmed immigration court system. Lawyers must lead efforts to ensure state and federal courts have resources needed to dispense justice, continue to broaden and diversify the profession to make legal education and careers available to all, and to share our rule of law expertise with the world.In addition to expanding access to justice through pro bono and increased funding for legal aid, lawyers must help identify innovative ways to deliver legal services, a goal of the Commission on the Future of Legal Services, which was established a year ago. President Hubbard acknowledged the many people who have supported the commission's efforts and contributed to its positive reception throughout the bench, bar, and legal academy.
President Hubbard emphasized that justice is the lawyer’s calling. He stated that Dr. Martin Luther King Jr. observed that the arc of the moral universe is long but it bends toward justice. It only bends through the actions of brave, imaginative women and men committed to justice, and lawyers must be at the forefront leading the way.
In conclusion, President Hubbard thanked all of the lawyers who have kept the ABA vibrant and strong through their hard work and passion for justice. He thanked the ABA for the privilege of serving this magnificent association and this noble profession.
Statement by the Treasurer
ABA Treasurer, G. Nicholas Casey, Jr., of West Virginia addressed the House and referred the delegates to his written report which reflected the performance of the Association for FY15 to date. He headlined the status of the Association’s financial situation to date in FY2015 as:Strong Expense Management Partially Mitigates Revenue Shortfall.
Focusing first on the revenue side of the FY15 budget, Treasurer Casey explained the Association’s budget – and therefore its revenue structure -- is compartmentalized into three areas: (1) general operations; (2) the sections; and (3) gifts and grants. He stated the recent dues increase, while generating more actual dollars than last fiscal year, has not generated enough revenue to meet the general operations expense budget. Currently, the Association is under projected revenue in general operations by $5.2 million and is under projected revenue in the sections by $4.2 million. Sections routinely budget expenses in excess of revenue with the intention of drawing down reserves to cover any shortfall so sections operational revenue being below operational expenses is not cause for alarm. Gifts and grants have exceeded revenue projections by $1.7 million.
Overall, on a consolidated basis, the Association is under its revenue projections by $7.7 million from where it budgeted to be at this time in FY15. The primary reasons include revenue shortfalls in publications of $3.9 million and in dues revenue of $3.6 million. In response, the ABA is re-organizing its publications operations and working harder to collect dues. Specifically, the FY15 operating budget is $175.8 million to date, while actual income is $168.1 million.
Treasurer Casey reported the Association has mitigated this revenue shortfall in the FY15 budget by cutting expenses. Expenses in the general operations area are under budget by $2.3 million and expenses in the sections are under budget by $6.4 million. Gifts and grants related expenses are over budget by $600,000. Meetings and travel-related expenses are under budget by $2.4 million (pending final Annual Meeting-related expenses). Compensation-related expenses have been reduced by $2.3 million by reducing the ABA’s workforce. Publications-related expenses have been reduced by $2.2 million by further reducing workforce and changing some processes. Professional services-related expenses (e.g. the cost of defending lawsuits against the ABA) are over budget by $2.2 million. The FY15 budgeted expenses to date are $179.8 million, while actual expenses to date are only $173.1 million.
Treasurer Casey stated that when you look at the FY15 Association budget as a whole, the ABA is $5 million in the red, with general operations being out of balance by approximately $3 million of this shortfall.
The ABA’s Statement of Financial Position (i.e. Balance Sheet) shows the Association has total consolidated net assets of $369 million with $333 million in cash and marketable securities. The Association has $212 million in net assets. The difference is due to the ABA’s gross pension obligation which, as of June 30, 2015, was $65 million.
So, while the ABA has $212 million in reserves, the operating money coming in annually is insufficient to sustain the ABA. Accordingly, ABA President-Elect Paulette Brown of New Jersey has appointed a Sustainability Committee, chaired by past president, James R. Silkenat of New York, to examine the complexities of how to best achieve the ABA’s mission with diminishing financial resources to do so.
Presentation by the American Bar Endowment
Chair Refo recognizedJ. Anthony Patterson, Jr. of Montana,Vice President of the American Bar Endowment (the “ABE”) to report to the House of Delegates. Since 1942, the ABE, working together with New York Life Insurance Company, has granted $270 million to two primary sources, in equal parts: (1) the Fund for Justice and Education; and (2) the American Bar Foundation. This year, the ABE granted $3,338,594 to these worthy causes.
Passing of the President’s Gavel and Statement by President-Elect
ABA President Hubbard introduced President-Elect Paulette Brown of New Jersey, who thanked President Hubbard for his stellar and energetic leadership over the past year and Chair Refo for her outstanding leadership in the House of Delegates.
President-Elect Brown reminisced about her life journey to this moment thanking family, friends, and lawyers who encouraged and supported her. She expressed that she knew from early on that she wanted to give back, to be an agent of change, and to use every opportunity to make a positive difference.
President-Elect Brown expressed her admiration for the work of Dr. Martin Luther King, Clarence Mitchell, Jr., Thurgood Marshall and Juanita Jackson Mitchell. Through their work, she came to understand the power and effectiveness of creative, collaborative, or thoughtful people. That lesson of “creative collaboration” was and remains critically important to her.
President-Elect Brown noted that she wanted to focus on the ABA’s four goals in her year as president, particularly those that build on the ABA’s commitment to defend liberty and deliver justice. She wants to further the Association’s work toward a more diverse and inclusive profession. She wants to serve the members of the ABA and, in doing so, highlight the tremendous value of the ABA.
President-Elect Brown stressed that this is a critical time for the profession. The ABA must rebuild trust in America’s justice system and fulfill our nation’s promise of equal justice under the law. The conviction of the ABA is that this nation’s laws must be applied equally. The ABA does not look the other way when there are threats to our justice system or to our commitment to preserve the Rule of Law. We cannot afford to look the other way as bias erodes the public’s faith in the fairness of our law and the trust in those who enforce it, practice it and administer it.
President-Elect Brown praised the ABA for its great strides to promote full and equal diversity and to end bias in the legal profession and the justice system as it has committed to do. During her year, she will strive to review everything the ABA does to promote diversity and inclusion, both internally and externally, through her initiative, “Diversity and Inclusion 360.”
President-Elect Brown will work to show all lawyers that the ABA cares about them, no matter where they’re from, in her initiative “Main Street ABA.” She has visited 27 states and plans to visit all of the states if possible. All lawyers deserve love from the ABA, she exclaimed.
President-Elect Brown emphasized that the ABA must look forward and help our young people to grow up to be what they were meant to be. They must see diversity in the ABA and meet its members. They need windows to see their opportunities and each lawyer can be that window. Every lawyer has the power to make a difference. The ABA is organizing a national event on October 30, 2015, called “And Justice for All: An ABA Day of Service,” to promote pro bono services for those who cannot afford legal services otherwise.
President-Elect Brown will thank the members of the ABA by providing a free membership benefit every day of her presidency, “ABA Everyday.” During her year of presidency, she wants to showcase the tremendous value of the ABA, with all of its entities, and help the members expand their legal skills, deepen their connection to the legal community, and make the most of their personal time.