Assigning Power of Attorney (PoA) With Confidence

Incapacity planning, ensuring that there’s a strategy in place if you ever become incapable of managing your affairs, is important.

We all know that. Yet, it’s uncomfortable to think about and therefore easy to put off doing.

A key part of incapacity planning is assigning power of attorney (a legal document giving someone else the right to act on your behalf), but it’s also the biggest hurdle. Giving extra thought to who you choose, and what powers they’ll be granted, can give you the peace of mind to complete your plan with confidence.

Choosing your lawyer

Choosing someone you trust to assign power of attorney is essential. Acting as your attorney involves significant duties and obligations. Your attorney’s overarching duty is to act with honesty, integrity and in good faith for your benefit if you become incapable.

The law lays out specific obligations for the person chosen to hold your power of attorney. Among other things, they will:

  • explain their powers and duties to the incapable person
  • encourage the incapable person, to the best of their abilities, to participate in decisions concerning their property
  • foster regular personal contact between the incapable person and supportive family members and friends, and
  • keep account of all transactions involving the grantor’s property.

The attorney or attorneys you choose to act on your behalf should know these rules, and be aware of other rules set out in the act as well.

For instance, they’re expected to ensure you have a will and, if so, know its provisions. The main reason for this is that your attorney must not sell or transfer property that’s subject to a specific gift in the will, unless necessary.

The act also contains explicit instructions regarding both required and optional expenditures. Examples of the latter include charitable gifts where an incapable person made similar expenditures when capable and so long as sufficient assets are available. Your attorney should also be familiar with rules covering how or when he or she can resign, what compensation they may be entitled to and the standard of care expected of them.

Safeguarding your estate

You can also build a second opinion directly into your power of attorney documents by appointing more than one person. If you name two or more people, they’ll need to act unanimously unless the document states otherwise.

A joint appointment provides a level of protection in that any appointed attorneys must agree on all actions, while a “joint and several” appointment grants flexibility, allowing any one attorney to conduct business independently.

Many people choose to appoint the same people or trust companies to be both their power of attorneys and their executors. Although you don’t need to do so, the same list of key traits – expertise, availability, accountability and trustworthiness – apply to both roles.

It’s also possible to limit the powers granted to your attorney. If you’d like your attorney to act only for a specified time period (maybe a vacation or hospital stay) or in respect of a specific transaction (the closing of a real estate deal), a limited or specific power of attorney is worth considering.

In the case of a general continuing power of attorney, many people want the document to be used only if and when they become incapable of managing their affairs themselves.

Although the document is effective when signed, it is possible to include provisions in the document itself that defers it to a future date or the occurrence of a specified condition (for example, the grantor has a stroke). These are sometimes referred to as “springing” powers of attorney.

Whichever way you prepare your power of attorney documents, careful consideration of who you choose as well as availing yourself of available safeguards will help ensure your confidence in your incapacity plan.

Common Mistakes to Avoid

  1. Making a quick decision: Many people name their PoAs without thinking about their choice’s financial capability, much less their ability to get along with other family members.
  2. Assuming family is always the best choice: It’s far more important to choose someone who truly has your client’s best interests at heart.
  3. Waiting too long: If there’s already a question of diminishing capacity, it’s likely too late to make a power of attorney ironclad.
  4. Not reviewing it: Changing life circumstances and new provincial legislation can make an old PoA invalid.

Plan for Incapacity

Your estate plan doesn’t end with an up-to-date will. It should also anticipate possible future incapacity, which usually means preparing powers of attorney for both property and personal care.

Power of attorney, a legal document that gives someone else the right to act on your behalf, has two main types: one for management of property, another for personal care.

Will and estate planners generally advise preparing both types of powers of attorney. While they are often prepared at the same time as your will, they can be created at any time.

Personal care

With a power of attorney for personal care, you can authorize someone to make decisions concerning your personal care in the event that you become incapable of making them yourself.

You can give power of attorney for personal care if you’re at least 16 years old, have “the ability to understand whether the proposed attorney has a genuine concern” for your welfare, and can appreciate that the attorney may need to make decisions.

Personal care includes decisions concerning health care, nutrition, shelter, clothing, hygiene and safety.

Property

A continuing power of attorney for property authorizes someone to do anything regarding your property that you could do if capable, except make a will.

The law says you’re capable of giving a power of attorney for property if you’re at least 18 years of age, know what kind of property you have, along with its rough value, and are aware of any obligations owed to your dependants.

The term “continuing” (sometimes called “enduring”) refers to a power of attorney that may be exercised during the grantor’s subsequent incapacity to manage property. Ensure the document stipulates that you want the power of attorney to be used only if you become incapable.

What you need to know

A continuing power of attorney for property is a powerful document. Unless otherwise stated in the document, it’s effective when signed, granting considerable power.

In fact, the act explicitly requires you to acknowledge this authority can be misused. And, as part of the capacity test for granting a continuing power of attorney, you must also acknowledge the property you own may decline in value if not properly managed.

A financial institution, land titles office or other third party presented with a continuing power of attorney for property with the restriction “effective only in the event of the grantor’s incapacity” will want evidence of the incapacity.

That evidence could be hard to get. One solution is to set out terms of use in a separate document and have all original copies of the power of attorney held by a trusted third party. You could, for example, direct that document be released only if:

  • You tell the attorney you want him or her to start acting;
  • You are legally declared incapable of managing your property;
  • One or more doctors advise that you’d benefit from assistance in managing your affairs; or
  • Certain family members advise the attorney should begin acting.

No direction could be costly

If you fail to prepare power of attorney documents, it may take an application to court before someone can be appointed to make decisions for you. That can leave you scrambling when you’re in no physical shape do so. Having a will doesn’t help because an executor is only authorized to act after you die.

On top of that, court processes can be both costly and time-consuming. Depending on the circumstances, the Public Guardian and Trustee may have to get involved.

You also lose the opportunity to appoint people or companies of your choosing and aren’t able to establish parameters regarding the actions of your substitute decision makers.

Getting a Good Bankruptcy Lawyer

There is nothing worse than having to file for bankruptcy. Bankruptcy is a very serious matter which can destroy the lives of many people and render them completely helpless. Before moving forward with this article it is important to describe bankruptcy and what it entails. Bankruptcy is also referred to as insolvency and is a legal state of being unable to repay debts owed to creditors.

Bankruptcy is applicable to both individuals and organizations. When bankruptcy happens to an organization, many creditors will normally file a bankruptcy petition in an effort to recover a portion of the money owed to them by the company or organization. This results in the organization seeking the services of a bankruptcy lawyer. A bankruptcy lawyer is someone who is conversant with bankruptcy law and will be able to defend you against the petition filed by the creditors. Bankruptcy lawyers are quite expensive and you will have to prove to them that you can pay them before securing their services.

Tips on how to hire a good bankruptcy lawyer?
The increase in bankruptcy petitions has resulted in an increase in demand for bankruptcy lawyers. This has led to an increase in the number of lawyers who are looking to make a quick buck at the expense of debtors who do not know any better, while offering very poor legal services in return. It is important to ensure that the bankruptcy lawyer you have chosen is up to the task and will give you the required help you need throughout the entire process. Some of the tips you can use when trying to identify a good bankruptcy lawyer are given below.

Investigation: Many people often panic when they declare bankruptcy and will select the first bankruptcy lawyer that they come across. This is not a wise move because you need to conduct a thorough investigation. This investigation should involve a thorough background check of the lawyer and should be done before the bankruptcy claim is made. This will also give your lawyer enough time to prepare for the case.

Word of mouth: A good bankruptcy lawyer will be well-known, especially in the business world, so it is very important to ask around and gather information about companies that have filed for bankruptcy and who represented them. It is also important to know the outcome of the cases. You are bound to get information that is helpful. Experience should be your main focus in the search for a good lawyer who can adequately represent you.

The courts: A bankruptcy court is a good source about bankruptcy lawyers. You should always take some time off and visit a bankruptcy court so as to see and experience a bankruptcy case. This will give you an idea of how a good lawyer should conduct the trial when defending someone.

The panel of lawyers: The best place to find out about the best and most respected lawyers is by visiting the bankruptcy lawyer’s panel. The reputations of these lawyers precede them and you are likely to find a very good lawyer who deals with bankruptcy issues and is experienced in the field. Visiting the office of the lawyer may also give an indication about the lawyer’s reputability.

Attending free consultation sessions: Free consultation sessions are the platforms that make it possible for you to ask as many questions as possible about bankruptcy and where to find good lawyers. It is also the beginning of a good working relationship between you and the lawyers because you might get good contacts which will help you in the future. A bankruptcy lawyer will make the difference in the outcome of your case so you should ensure that the lawyer you choose is able to swing the final result in your favor.

Auto Accidents: Step by Step, by the Right Attorney

I have written this article with the “average” case in mind, as that imaginary “average” case is the one which occurs most often. I believe that there are absolutely “rights” and “wrongs” in the handling of a personal injury claim. At the conclusion of this report, if you have questions, I will tell you how we can connect to try to get them answered.

Problem Presented:

You have just been involved in an automobile collision which was not your fault. Your car is all banged up; you are hurt; you are probably worried about many of the consequences this collision has now created, and as the expression goes: “this just wasn’t a good time for this kind of thing”. There are 101 things racing through your mind. Certainly, the last thing you need is to worry about finding a good attorney to handle matters for you. Hopefully this article will give you a leg up on making that search a bit easier, by allowing you to know what to look for, and by allowing you to know what questions to ask.

Plan of action to solve the problem: find an attorney to help!

Finding an attorney is easy. Finding the right attorney might be a little tougher. First, understand that there is nothing immediately critical about hiring an attorney. I recommend, however, that you do so within 2 – 3 days of the collision. In this fashion you can avoid being hassled by insurance adjusters, and an intelligent course of action for you and your case can be formulated. Back to finding that attorney. If you have a good case, there are hundreds of attorneys who will be thrilled to work for you. I would be less than honest if I didn’t admit that legal fees for “personal injury” cases can be very handsome. Such fees for the right attorney however, are well worth it. Read on, and you’ll see why.

You should be able to recognize a sincere appreciative attitude on the part of the attorney you select. Again, there are hundreds of attorneys who’d be very happy to have you as a client. If the attorney you select isn’t one of them, find one who is. That attorney will work very hard for you. Keep reading, and I’ll help you learn how to pick the right attorney.

The Initial Stages and the first contact.

Your car is in need of repair, you are in need of medical treatment, and your ability to go to work at this point is in doubt, both because you now lack transportation, and because you don’t feel physically able to do so. Insurance adjusters are calling. What should you do? A good attorney can tell you. A good attorney will also find out many important things, such as: did police investigate? was the other party given a ticket? who is the other guy? is there insurance? is there enough insurance? Again, a good attorney will advise you about what to do, and find out the answers to all of these questions. You need to concentrate on getting better. Investigating these matters and spending hours on the telephone are the last things on the doctor’s prescription pad for you.

Good attorneys can be found in many places. If you don’t know anyone who has used an attorney for a personal injury matter, there is probably a local bar association referral service. If there isn’t, or if they’re not open and you want contact now, internet search engines will offer the names and website addresses of all types of attorneys, from single practice attorneys up to large firms. I encourage a good look at the lawyer’s or the law firm’s website: read about their experience and see if the website “speaks to you.” I do not recommend telephone book ads to find a lawyer, nor do I recommend television ads, because really, they don’t tell you much. Once you select an attorney or two or three to interview, don’t jump without asking a lot of questions, no matter where the attorney’s name came from.

The first call to the attorney’s office.

You select an attorney and you want to call him or her. Pay attention to several things: Is the number you are calling advertised as 24 Hours? If so, who answers the call? Is it a tape? Is it the staff? Is it the attorney? Any may be acceptable, but clearly, you should be looking to talk to the attorney within a reasonable time if that first call doesn’t get you connected to him or her. Next, should you call “off-hours”, or wait until business hours Monday through Friday, 9 – 5? My feeling is that an attorney who practices personal injury law must recognize that potential clients are calling, often very traumatized, often very confused, and often in need of some good solid advice. Accordingly, that attorney should be available whenever the potential client calls. So you call, and you are generally pleased. The attorney sounded okay, and invites you to his or her office for an appointment. Before you go in, ask some questions:

How long has the attorney been in practice? You want someone with experience.

What percentage of the attorney’s caseload involves handling personal injury matters? It should be over 50%.

Does the attorney regularly go to court and try cases involving personal injury matters? Yes is the only acceptable answer.

Is the attorney accessible? Get a commitment that you’ll be able to speak to the attorney, if you want to, within a reasonable time, every time you want to. Promise to respect the attorney’s off-hours privacy, but ask if the attorney will give you a home telephone number for emergencies.

Will you be kept informed of all significant developments? This means that you’ll routinely get copies of important correspondence, and that you will be consulted before decisions beyond the mere routine occurs.

How money is handled? Don’t be shy about asking about this!! This is the primary reason you are hiring an attorney. Think about it… The mechanic is going to fix your car. The doctor will get you back to good health… You’ll certainly ask them questions… The attorney is the person who will help get you the money from the other guy’s insurance company to pay for all of this!

The first meeting with the attorney.

You’re satisfied and you agree to meet with the attorney you’ve called. At this meeting you should meet the attorney, talk with him or her for as long as you want, and the entire process should be explained to you. This includes explaining all of the possible insurance benefits available to you from all sources, including your own insurance company, and how and when such benefits are to be expected. It also means explaining, at least in summary fashion, the applicable law which governs your case. Different states have different laws which control “liability” issues and ultimately affect compensation. Ask your attorney if your state follows no-fault, comparative negligence, or contributory negligence principles.

At this first meeting, which is really the beginning of your case, your attorney CANNOT predict how much money you’re going to get for your injuries. Nobody knows, at the early stages, how badly you are hurt, how much medical care you’re going to need, how much time you might miss from work, or even the potential legal theories which might be available. Can you predict the final score of a baseball game in the first inning? IT IS RIDICULOUS FOR AN ATTORNEY TO ATTEMPT TO ESTIMATE HOW MUCH YOU’RE GOING TO GET AT THE BEGINNING OF THE CASE.

At the initial meeting a paralegal or other staff member may take “administrative” information from you. The attorney should explain the legal contract, or fee agreement, with you. Attorney’s fees in this type of case are almost universally “contingent fees”, which means the attorney only gets paid when the case is settled; that is, the fee is “contingent” upon resolution. Usually attorneys charge one-third of the recovery, and usually contracts of this sort detail a higher fee, perhaps 40 – 50%, if the case goes to trial. This is fair; because going to trial is a lot more work for the attorney, and involves the attorney taking on a lot more risk. Recognize that every “contingent fee” case an attorney takes on is a case where the attorney is working for free, and at great risk of getting nothing, until (and unless) the case resolves.

How the first meeting should end.

Your initial meeting with your attorney should conclude with you receiving a copy of the fee agreement, and with a very concrete list of things which should be set to happen.

1. You should have a list of things the attorney needs, such as a copy of your insurance policy, pay stubs, tax returns, photographs, etc.

2. Telephone calls should be made promptly for the resolution of the damage to your car. The two most typical scenarios are as follows:

a) The car is repairable. If it’s in a tow-lot, plans should be set to get it out, as storage charges accrue quickly. Next, insurers should be notified of the location of the car, so an appraisal of damage can take place. If the insurers can be notified quickly, often they will move it out of the towing lot. In any event, discussion as to what’s going to happen one way or the other should be presented to you.

b) The car is destroyed, or “totaled”. If there is an outstanding loan on the car, you must supply the lender’s name and account number to your attorney so they can contact them to discuss payoff. Again, insurers must be notified of the car’s location, so it can be moved and they can appraise the value. You will have to sign over the title to the car, so be prepared to make it available quickly. If there’s a loan, usually the lender has the title, or a part of the title.

3. Plans should be set for you to get alternate transportation. Any good personal injury attorney should be able to recommend a reputable rental car company.

4. Plans should be set for you to get “the right type” of medical care. This means, in most cases, that you should be treating with an orthopedic physician, a chiropractor, or a general practice physician who provides physical therapy services. If you don’t have a family doctor who can refer you to “the right type” of doctor, or if you don’t know someone who knows such a doctor, your attorney should be able to give you the names of several reputable physicians near where you live or work. It is essential that you receive medical care if you are hurt, and that you get this care as soon as possible. Medical study after medical study shows that individuals who start medical treatment later end up needing more medical treatment than they would have if they had begun that treatment soon after the trauma occurred.

a) Good personal injury attorneys have many medical “contacts”. If needed, arrangements often can be made through your attorney allowing you to receive medical care without payment up front (or as you go). This is accomplished by a document called an “Assignment”. Both you and your attorney sign this document, and thereby agree that the doctor will get paid at the end of your case, from the proceeds recovered. In this fashion, the doctor is satisfied, because of the attorney’s reputation, that payment will probably be forthcoming. Your attorney should tell you that the signing of this document does not eliminate your responsibility for payment.

5. Your attorney should send out several letters within the first 24-48 hours after meeting with you. At a minimum, these letters are:

a) to insurers, advising you are now represented, and advising that all contact about your case should go through the attorney’s office;

b) to medical care facilities, requesting records, reports and bills;

c) to the accident witnesses, asking for statements, or requesting appointments to review what they saw or what they know;

d) to the investigating police, requesting the accident report.

The “middle stages”, where you get better.

Your attorney and his or her staff are now acting as both a “collection facility”, gathering records and bills from medical care providers, and continuing as a shield, keeping the insurance company representatives away from you. I often have clients call me and ask me “how’s my case going”? If case liability is not an issue, that is, if it’s clear that the collision was “the other guy’s” fault, and his/her insurance company has “accepted” responsibility, then my answer to the question is simply “fine, how are you feeling?” I say this because at that point, assuming we’ve “secured” the liability issue, all that remains is waiting for the client to get better.

A good personal injury attorney is able to review medical records and spot problems, either in the way the records are written (mistakes?), or in the overall medical course. I have called doctors when I have felt that certain diagnostic tests were questionable. I have called doctors when therapy seemed to be continuing endlessly without any improvement in my client’s condition. I have called doctors when bills seemed out of line. Your attorney should be knowledgeable enough to do the same, and should have the gumption to do so if and when appropriate.

The ending stages: evaluation of the case, and the settlement process.

ONCE YOU ARE COMPLETELY DONE WITH ALL MEDICAL CARE, AND ONCE YOU ARE BACK TO PRE-COLLISION STATUS, OR IF THAT’S NOT POSSIBLE, ONCE YOU’RE AS GOOD AS YOU’RE GOING TO GET, THEN, AND ONLY THEN, SHOULD YOUR ATTORNEY CONSIDER ATTEMPTING TO RESOLVE YOUR CASE.

Having said that, there are a few notable exceptions. First, the “statute of limitations” provides a limit on how long you have to either settle your case or file a lawsuit if your case cannot be settled. So, if you are not medically resolved, but the statute of limitations date is approaching, your attorney should meet with you and explain your options. Next, in many cases the total amount of insurance funds available (policy limits) will not be enough to truly fully compensate you. Thus, no matter how badly you have been injured, no matter how much your medical bills are, the insurance coverage available simply won’t be enough. Accordingly, the question presents as to whether it is reasonable to “settle” now, given that waiting will not produce any more funds for you. It may be reasonable to attempt to resolve the case, assuming all options have been explored, if this situation presents itself. Your attorney should explain your options.

Show me the money.

I recognize that most people do not voluntarily position themselves to be automobile accident victims. People generally don’t get hurt just so they can collect. Please don’t have misgivings about seeking money here. This isn’t about getting rich. This isn’t about fraud or trying to take advantage of the system. When an accident occurs and you are the victim, there is absolutely nothing wrong with feeling an entitlement to money. Our system of civil justice provides this, MONEY, as the only remedy. You are entitled to be compensated for medical expenses you incurred, for wages you lost, for mental and physical pain and suffering, for disfigurement, for aggravation, for inconvenience, for disrupting the quality of your life, and for more.

Any good personal injury lawyer will tell you his or her opinion concerning the value of your case, now that you have gotten to that “settlement-ready” posture. If they don’t know, or have an opinion, what are they there for? Your attorney should set out several things in writing to you BEFORE going to the insurance company to discuss settlement. These are:

1. How much the attorney thinks your case is worth.

2. How much the attorney is going to demand. Clearly, in the upcoming process of discussion with the insurance adjuster, the attorney must have room to negotiate.

3. How much you owe in outstanding medical bills. This will affect the “net funds” you receive.

4. Whether there are liens against the proceeds of your settlement. Health insurance, worker’s compensation, or a federal, state or local agency (Medicare, Medicaid) may have made some payments for your medical bills or to you for wages you lost. These groups may be entitled to be reimbursed. Again, this will affect the “net funds” you receive.

5. What options are available if settlement negotiations aren’t successful.

Is the lawyer going to attempt to mediate? to arbitrate? to litigate? You should know what all of these options are, if they are available, and what the pluses and minuses are with each. AND THESE should be compared to the settlement possibilities. It should be pointed out to you that if you get 95% of what you want through settlement negotiation, it probably isn’t a stellar idea to file a lawsuit, which forces delay, causes extra expense, and leaves the case unresolved.

6. Who is going to negotiate. I believe that if you hire an attorney, it is fine for the attorney to delegate non-legal, administrative matters to non-lawyer staff. On the other hand, I believe the attorney you hire should be the one who gets on the telephone and negotiates your case for you.

The very end, hopefully: a successful settlement.

Once the case is settled, the attorney should receive a check from the other party’s insurance company. You should see this check. It should have your name on it as a payee. It’s okay if it also has the attorney’s name as a payee. You should sign the check. The attorney should present to you a document similar to what I call a “Settlement Memorandum”. This document should detail the “money in” (the insurance check for settlement), and the “money out”, that is, all of the things which are going to be paid from that check. These will include the attorney’s fee, outstanding medical bills, any liens, and a “net” for you. The check should be placed into a special bank account which the attorney should have, called either an “escrow” account, or a “trust” account. This is an account where client funds are held, and attorneys are held to the highest of standards for the accounting of these bank accounts by attorney licensing authorities and bar associations. Routinely funds should be deposited immediately after the check is fully endorsed, and thereafter, funds should be disbursed within 5-10 days, the delay simply to allow the funds to “clear”.

After care.

Your attorney should complete all legal matters relating to your case. This means sending payment for all outstanding medical bills and liens. This means providing you with a copy of all of the checks written for those purposes. You should also either be given copies of the important items in your file (medical records, for example), or your attorney should advise you that he or she will keep them for your future needs.

Some Final Thoughts.

Good luck to you. Please drive safely. Wear your seatbelt. Put your kids in car safety seats. Don’t even think about drinking alcohol or using drugs and then getting behind the wheel. I hope you never get into an automobile collision. If you do, I hope you don’t get hurt too badly. Remember to keep your perspective. Remember that you are more important than your car. Take your time with the legal matters ahead of you.

Where Did Our Business Laws and Regulations Come From – How Have They Changed?

The Business Laws in our nation and our regulations have become so complex they seem to be choking the viability of not only our court system, but also adding layers of laws to companies to the point of suffocation.

The bureaucracy is not only in government, but it has reached all levels of business small, medium and large. Of course, some rules of the game are needed to help our economic machine with standardization.

But, with all the case law, written laws and lawsuits, the laws no longer serve the purpose of allowing business to know in advance what to expect or give them adequate measure to dictate policies within their companies.

One thing that I have noticed is that if you pick up an old business law book prior to 1940, well, there is no much in it. It’s pretty simple and down to earth. When reading through the chapters you’ll find that it all makes sense, it’s all traceable and you can find meaning.

Today things are much different. I would advise any MBA student or individual looking to get into business law to read old business law books and text books. In fact, let me recommend a very good one to you that I have in my own personal library:

“A Text Book of Law and Business” by William H. Spencer; McGraw-Hill Book Company Incorporated; New York, NY; 1938.

If you ever find yourself asking the questions; 1.) Where Did Our Business Laws and Regulations Come From or; 2.) How Have Our Business Laws Changed Over the Years? Then just reading through this work will shed some light on the subject. So, think on it.

Associate Attorney Employment Agreement

Most law firms that are made up of more than one person are set up as a hierarchy with Partners at the top and varying levels of Associate Attorneys below them. Partners are generally the owners of the business and Associates are employees. The Associates are often given the opportunity to work their way up the ladder to become Partners and share in the profits of the firm instead of just receiving wages.

It is important to have a written agreement or contract between the Associates and the Firm that spells out everyone’s duties and obligations as well as the conditions under which they may advance. The following is a draft contract between an Associate and a law firm that can be customized to meet the needs of a law firm hiring an Associate Attorney.

This AGREEMENT made of this 21st day of March, 2011, between the Law Offices of at Smith, herein referred to as the “Firm” and Joe Blow, hereinafter referred to as the “Attorney.”

Recitals

The Firm is a Sole Proprietorship, operating as a business rendering legal services. If, during the term of this contract, the Firm changes to another form of business organization, this contract will continue to be binding on both the Firm, under it’s new formation, and on the Attorney.

The Attorney is licensed to practice law in the State of Texas.

The Firm and the Attorney desire to have the attorney practice law as an employee of the Firm.

It is agreed by and between the parties as follows:

Section 1. Employment and Duties.

Employment. The Firm employs the Attorney and the Attorney accepts employment as an attorney in accordance with the terms of this Agreement.

Full Time. The Attorney shall devote full working time and attention on the practice of the law for the Firm and the Attorney shall not, without the written consent of the Firm, directly or indirectly rendered services of a professional nature to or for any person or firm except as an employee of the Firm.

Duties and Assignments. The Firm shall determine the duties to be performed by the Attorney and the means and the manner by which those duties shall be performed. The Firm shall determine the assignment of the clients to the Attorney and the Attorney shall perform services for such clients assigned. The Firm determine the rates at which the Attorney’s work shall be billed.

Section 2. Compensation

Salary. For all services rendered by the Attorney under this Agreement, the Firm shall pay the Attorney and annual salary of $58,000, payable weekly or as may otherwise be mutually agreed. The salary may be changed by mutual agreement of the parties at any time.

Bonus. In the addition to the salary specified in 2.1., the Attorney may receive a bonus. The bonus, if any, will be in such amounts as the Firm may determine in its absolute discretion.

Additional Compensation. In addition to the salary and bonus specified in items 2.1 and 2.2, the Attorney will be eligible to receive a percentage of the Firm’s portion of Personal Injury cases. The Attorney will receive 10% of the Firm’s payment from a Personal Injury case, when the Attorney has performed as the primary attorney on that case. Additionally, the Attorney will receive 10% of the Firm’s payment from a Personal Injury case, when the Attorney personally brought the case to the Firm.

Section 3. Partnership. It is the policy of the Firm to employ as attorneys persons who will be given the opportunity to become partners in the Firm. The Firm after a certain number of years will make the determination as to whether the Attorney will be admitted to partnership. The Firm expects to make this determination with respect to this Attorney, no earlier than July 1, 2005, and no later than July 1, 2007.

Section 4. Facilities.

Office. The Firm shall furnish the Attorney with office space, staff assistance, and such other facilities and services as are reasonably necessary to the performance of the Attorney’s duties.

Liability Insurance. The Firm shall maintain professional liability insurance covering the acts and omissions of the Attorney in performance of the Attorney’s professional duties.

Travel. The Attorney may be required to travel on business for the Firm, and shall be reimbursed for all reasonable and necessary expenses incurred, provided, however, that a detailed account of such expense is provided to the Firm.

Professional Societies. The Firm shall pay the Attorney’s dues for memberships in The State Bar of Texas and the American Bar Association.

Education. The Firm shall pay the reasonable amount of expenses incurred by the Attorney to maintain or improve the Attorney’s professional skills. The Attorney agrees to submit to the Firm such documentation as may be necessary to substantiate such expenses

Section 5. Additional Benefits.

Medical Insurance. The Firm agrees to provide medical coverage for the Attorney, the Attorney’s spouse and dependents under a group accident and health insurance policy, the terms and benefits of which shall be determined by the Firm. The Attorney is currently covered under her spouse’s policy and does not require such coverage currently. That Attorney will notify the Firm at such time that she needs this benefit.

Vacation. The Attorney shall be entitled to three weeks vacation time each year however, the Attorney’s vacation will be scheduled at such time as will least interfere with the business of the Firm. The Attorney is further entitled to time off on all holidays normally celebrated in accordance with the Firms stated policy.

Life Insurance. The Firm may provide group life insurance coverage, in amounts which shall be determined by the Firm.

Retirement Plan. The Attorney shall participate in any Firm qualified retirement plan according to the terms of said plan as amended from time to time.

Disability. In the event the Attorney is unable to perform his or her regular duties as a result of personal disability the Firm will pay the Attorney’s salary during such disability for a total of ninety (90) days in any 24 month period.

Section 6. Operations.

Records and Files. All records, documents, and files concerning clients of the Firm shall belong to and remain the property of the Firm. On termination of employment, the Attorney shall not be entitled to keep or reproduce the Firms’ records, documents or files relation to any client unless the client shall specifically request that its files be transmitted to the Attorney.

Fees. All fees and compensation received or realized as a result of the rendition of professional legal services by the Attorney shall belong to and be paid to the Firm. Any fee or honoraria received by the Attorney for professional services or other professional activities performed by the Attorney shall belong to the Firm.

Section 7. Term.

One Year, Automatic Extension. The term of this Agreement shall begin on the date hereof and continue for a period of one year and shall be automatically extended from year to year unless terminated in accordance with this section.

Events of Termination. This Agreement shall be terminated upon the happening of any of the following events:

The death of the Attorney.

The determination of the Firm that the Attorney has become disabled.

Dismissal for cause of the Attorney as hereinafter provided.

Occurrence of the effective date of termination, notice of which has been given in by either party to the other, so long as there are at least sixty (60) days between giving of the notice and the effective date of termination.

The mutual written agreement of the Attorney and the Firm to termination.

Termination on Disability. The Firm may determine that the Attorney has become disabled for purposes of the Agreement in the event that the Attorney shall fail, because of illness or incapacity, to render for ninety (90) days or more in any two-year period, services of the character contemplated by the Agreement, and thereunder shall be deemed to have been terminated as of the end of the calendar month in which such determination was made.

Causes for Dismissal. The Firm may dismiss the Attorney for cause in the event it determines there has been continued neglect by the Attorney if his or her duties, or willful misconduct on the part of the Attorney, including buy not limited to a finding of probable cause by the Bar for investigation a complaint filed with its discipline system or the filing of criminal charges against the Attorney, which would make retention of the Attorney by the Firm prejudicial to the Firm’s best interest.

Section 8. Miscellaneous.

Notices. All notices under this Agreement shall be mailed to the parties hereto at the following respective addresses:

Attorney:____________

Firm: ____________

A change in the mailing address of any party may be effected by serving written notice of such change and of such new address upon the other party.

Invalidity. The invalidity or unenforcibility of any provision or provisions of this Agreement shall not affect the other provisions, and this Agreement shall be construed in all respects as id any invalid or unenforceable provisions were omitted.

Arbitration. All disputes, differences and controversies arising out of, under, or in connection with this Agreement shall be settled and finally determined by Arbitration under the then existing Rules of the American Arbitration Association.

The parties have executed this Agreement as of the date and year first above written.

By:____________________________________________________