Volume 12, No. 5 | March 5, 2013 

eye on ethics

Q: I am going to open my own law firm but plan on collecting only �earned on receipt� fees from my clients. Should I open a trust account for my firm?

A: No. However, if you collect any advanced fees not earned on receipt, settlement funds from any client matters, or any other type of funds that are not your own and belong to either your client or a third party, you are required to open and maintain a trust account. See, ER 1.15(a) and Rule 43(a), Ariz. R. Sup. Ct.


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member news

Glendale Reappoints Presiding Judge, Fills Judicial Vacancy: The Glendale City Council has reappointed Elizabeth Finn for an additional two-year term as Presiding Judge and appointed Judge Manuel Delgado, Jr. to a two-year term to fill the vacancy created when City Judge Jean Baxter retired. more�

Larry Hammond Named as John Minor Wisdom Public Service and Professionalism Award Recipient:  Attorney Larry Hammond of Osborn Maledon has been named as the recipient of the 2013 John Minor Wisdom Public Service and Professionalism Award established by the American Bar Association's Section of Litigation. Each year the Section honors Judge Wisdom through the nomination and selection of outstanding individuals and firms to receive the award that bears his name. Hammond, like previous recipients of the Wisdom Awards, has made outstanding contributions to the quality of justice in his community, ensuring that the legal system is open and available to all. Congratulations!

In the news

House Passes Bill Opposed by Trial Lawyers: A bill that would revamp how attorney's fees are awarded in civil cases related to contracts has been approved by the Arizona House of Representatives. more�

Lawyer Punished by Second Circuit for Failing to Update Email Address: The record-keeping reality check emerged from WorldCom's 2002 bankruptcy. "Though Mullineaux had included his updated email address on one of the motions, he failed to update his contact details in the electronic case files system. Consequently, the court�s notification went unseen to his previous address, and he wasn�t able to file a notice of appeal on time." more�

from the bar

State Bar Launches 2013 Economy Survey: This morning, all active members of the State Bar should have received a link to the survey in their email. We count on your response to provide members with the latest information on salaries, overhead expenses, and the amount of law school debt currently being carried by Arizona lawyers.  If you did not receive the survey, please email Pat Giallanza or call 602.340.7226. more�

Only Two Days Left to Apply to Run for the State Bar Board of Governors: Openings are available for members in Gila, Graham, Greenlee, Cochise, Pima, Santa Cruz, La Paz and Yuma Counties. For more information and a candidate application package click here.

Apply by March 13th for the Pima County Commission on Trial Court Appointments:  Primary responsibility is to screen, interview and select judicial candidates for submission to the Governor of Arizona for her final selection to fill judicial vacancies. Applications are due by Wednesday, March 13 for one opening in Supervisorial District 2. more�

Application Deadline for the Conflict Case Committee Rapidly Approaching: The charge of the Conflict Case Committee is to timely process, investigate and prosecute all aspects of disciplinary cases involving a member of the State Bar�s Board of Governors, State Bar staff, or other conflicts as identified. If you're interested in becoming a member of the committee, submit your application by Wednesday, March 13 for one of four openings. more�

Nominate a Colleague for Annual State Bar Awards: Here�s your chance to see that your colleagues, deserving of recognition, receive their just rewards.  Nominations for the annual State Bar awards are now being accepted through March 15, 2013. more�

Nominate a Colleague for Annual State Bar Awards: Here�s your chance to see that your colleagues, deserving of recognition, receive their just rewards.  Nominations for the annual State Bar awards are now being accepted through March 15, 2013. more�

Don't Miss Early Bird Discount for the 2013 Minority Bar Convention: The 2013 Minority Bar Convention, the Future of Diversity in the Law, will be held on April 4 and 5 at the Desert Willow Conference Center. Co-sponsored by the Committee on Minorities and Women in the Law, this day-and-a-half conference will offfer outstanding programming, education, and networking opportunities for lawyers to hone skills necessary to meeting their clients' demands. You are encouraged to register before March 15 to receive the early bird discount. more�

Should Arizona Follow American Bar Association Changes to Admissions Rules? The State Bar of Arizona wants your comments about whether Arizona should make it easier for out-of-state lawyers to become admitted on motion, as well as allow them to set up practice here while applying for admission. Read the comments request here. Read the ABA's Model Rule on Admission on Motion and Model Rule on Practice Pending Admission to learn more about their revised admissions rules.

Department of Homeland Security Offers Active Shooter Preparedness Courses: In light of recent events regarding gun violence, the Department of Homeland Security (DHS) aims to enhance preparedness through a "whole community" approach by providing training, products, and resources to a broad range of stakeholders on issues such as active shooter awareness, incident response, and workplace violence. If you're interested in learning more about the online courses, click here.

Input Sought on Admissions Process Changes: The Attorney Regulation Advisory Committee's (ARC) admissions subcommittee now is comprehensively reviewing all aspects of the attorney admission process, including the Supreme Court rules governing examinations, character and fitness review, and the structure and function of the Supreme Court committees carrying out these functions. All interested persons are invited to attend forums addressing discrete parts of the admissions process. more�

Two District of Arizona Bankruptcy Judgeship Opportunities in Phoenix: The U.S. Court of Appeals for the Ninth Circuit invites applications from highly qualified candidates for two (2) Bankruptcy Judgeships for the District of Arizona. These positions will be available in March and April, 2014, respectively. Please be aware that the selection process may take up to 10 months to complete. The official duty station for these positions is in Phoenix. more�

Sandra Day O'Connor College of Law Invites You to the Second Annual eDiscovery Conference: The Second Annual ASU-Arkfeld eDiscovery and Digital Evidence Conference will focus on the practical and cutting-edge issues affecting the discovery and admission of electronic information. Two of the nation's leading jurists and educators on eDiscovery issues will address the conference, including: keynote speaker, the Hon. John Facciola, U.S. Magistrate Judge in the District of Columbia, and the Hon. Craig Shaffer, U.S. Magistrate Judge in the District of Colorado. The eDiscovery Conference will be held on March 13-15. more�

Save up to 26% on FedEx Express U.S. Delivery: Members also receive savings on other FedEx services. Call them at 1.800.MEMBERS or click here for more information.  For a listing of all State Bar member discounts, click here.

We Want to Help You Retire: Did you know that the ABA Retirement Funds Program offers special programs for State Bar members for 401(k) plans? Call them at 866.812.3580 or click here for more information, and to see all the member discounts available to you.

court decisions

Arizona Court of Appeals
Division One
Division Two

February 5, 2013 - 1 CA-SA 12-0244 - Arizona State Hospital v. Hon. Andrew G. Klein/Charles P.
1. Whether Arizona Rule of Evidence 702 applies to testimony by a mental-health expert offered on a petition for discharge filed by a person committed under the Arizona Sexually Violent Persons Act, Arizona Revised Statutes sections 35-3701 et. seq. 2.  Whether the superior court has discretion to set a pretrial hearing pursuant to Rule 702 to consider the relevance and reliability of expert testimony offered on a committed person's petition for discharge. Read Opinion.

January 31, 2013 - 2 CA-CV 2012-0090 - Champlin; Stopinski, Skipton and Assoc. v. Bank of America
Did the trial court err by refusing to set aside the entry of default, pursuant to Rule 55(c), Ariz. R. Civ. P., even if a copy of the application for the entry of default had not been mailed in a timely fashion? Read Opinion.


9th Circuit Court of Appeals

March 4, 2013 - 12-15688 - Valle Del Sol Inc. v. State of Arizona
District court's grant of a preliminary injunction barring the enforcement of two provisions in Arizona's Senate Bill 1070, which make it unlawful for a motor vehicle occupant to hire or attempt to hire a person for work at another location from a stopped car that impedes traffic, or for a person to be hired in such a manner, is affirmed, where: 1) though Arizona has a significant government interest in promoting traffic safety, the day labor provisions are content-based restrictions on commercial speech that are more extensive than necessary to serve that interest; 2) the district court did not abuse its discretion in concluding that the plaintiffs were likely to succeed on the merits; and 3) the other requirements for a preliminary injunction were satisfied. Read Opinion.

March 4, 2013 - 08-55483 - Wang v. Chinese Daily News, Inc.
District court�s certification of plaintiffs' state law claims as a class action under Federal Rule of Civil Procedure 23(b)(2) in a suit brought by newspaper employees for violations of federal and state labor laws, is reversed in part, and the findings of commonality under Rule 23(a) and predominance under Rule 23(b)(3) are vacated and remanded for reconsideration in light of Wal-Mart Stores v. Duke, 131 S. Ct. 2541 (2011). Read Opinion.




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