January 2000

The Board's Work - December 1999

Meeting in SeaTac December 3-4, 1999, the Board of Governors heard the recommendations of the Legislative Committee and various section representatives, and set the following initial agenda for the upcoming legislative session:

The WSBA will sponsor a proposed major overhaul and expansion of Uniform Commercial Code Article 9, designed to reflect technological advances (such as electronic commerce) and advances in commercial finance (such as asset securitization). The proposed revised article also fills in a number of gaps, addressing issues not resolved by the 1972 version of the statute and on which courts have differed. The proposed revision would also streamline the filing system, using a simplified national form of financing statement which need not be signed by the debtor. Electronic filing would also be permitted. The proposal would upgrade computer systems for the Department of Licensing to accept electronic filings and to be able to respond to information requests within two business days as specified by Article 9.

The WSBA will sponsor proposed revisions of the limited liability company and limited partnership acts resulting from changes in IRS tax rules. The proposed legislation would make explicit current statutory authority for single-member LLCs and clarify the rules for dissociation of an LLC from a general partnership.

The WSBA will support legislation relating to offers of compromise in appeals of mandatory arbitration decisions. In its present form, the bill would increase the caps on mandatory arbitration (from $15,000 to $25,000 statewide and from $35,000 to $50,000 in counties where the bench approves the higher limit), and allow the non-appealing party to offer a compromise of a mandatory arbitration award and to recover costs and reasonable attorney's fees if the appealing party does not better the offer on appeal. The bill defines the phrase "costs and reasonable attorney's fees" to mean costs and fees provided by statute as well as expert witness expenses related to testimony.

The WSBA will sponsor a bill amending the Nonprofit Miscellaneous and Mutual Corporation Act to authorize electronic notice as well as electronic communication of proxies in connection with meetings of non-profit corporations.

The WSBA will sponsor amendments to RCW 83.110 (the Washington Estate Tax Apportionment Statute) relating to new IRC Section 2057 (the deduction for Qualified Family-Owned Business Interests) and eliminating references to the now repealed federal retirement account excise tax. There will also be a proposed amendment to RCW 11.02.005 (Definitions and Use of Terms), adding a new section deeming references in documents to the now repealed IRC Section 2033A to refer to its successor statute IRC Section 2057. Additionally, proposed amendments to RCW 11.86.051 (When Right to Disclaim is Barred) would protect against the inadvertent waiver of the right to disclaim JTROS accounts and similar assets when the disclaimant has a previously acquired part ownership interest in the asset to be disclaimed.

The WSBA will support a bill exempting administrative tribunals from liability for attorneys' fees and costs.

Presenters to the Board on the various legislative proposals included Keith Baldwin, Joel Bodansky, Kit Carlson, John Cary, John Fattorini, Peter Harris, Judge William A. Harrison, Jean Holcomb, Dan Hungate, Michael Longyear, Alan Montgomery, Dan Ritter, and Gail Stone.

Russ Speidel reported to the Board on the "Lawyer and Judge in Every School" event planned for May 8-12, 2000. The goal is to reach tens of thousands of school children in grades one through 12 during that week. Lawyers interested in getting involved may e-mail LawWeek@wsba.org  or call 206-727-8270.

The WSBA's definition of the "practice of law" has been forwarded to the state Supreme Court for review. Questions to be sorted out by the Supreme Court include whether limited practice exceptions will be made, and if so, whether the WSBA or the Supreme Court will be responsible for implementation and enforcement. A defining moment in the discussion came when Judge Paul Bastine voiced his concern that the WSBA may be "hoisting ourselves on our own petard" by creating expectations among lawyers and others that defining the practice of law will solve the underlying problems. He urged the Board to "put meat on the bones" of the definition by finding ways to implement it. The Board voted to recall the committee drafting the definition back into service to advise the Supreme Court on the underlying issues and develop an implementation plan as soon as possible, after hearing from all the stakeholders.

The Board is seeking input from the state Supreme Court regarding an overhaul of the Rules for Lawyer Discipline and has authorized a Discipline 2000 Task Force. Members of the Task Force will include Governors Manning and Henderson, Barrie Althoff, Professor Thomas Andrews, Randy Beitel, Kurt Bulmer, Don Curran, Bob Ford, Joy McLean, Lee Ripley, Julie Shankland and Charlie Wiggins.

Unofficial Fiscal Year Results on Target

Governor Krueger reported on the final unaudited fiscal year 1999 results, which show the WSBA finished the budget year on target, with $8,000 more in the coffers than anticipated. CLE seminar and product sales were lower than projected, but the Lawyers' Fund for Client Protection ended the year with $79,000 to add to its reserves, and Bar News had a very productive advertising revenue year.

Governor Thompson reported on efforts to enhance communication with members through informational "road shows," brochures, assessing what services need to be added, targeting new lawyers and law students, Young Lawyers Division support, and continuing to upgrade the WSBA website and Bar News.

The Board appointed Michelle Gonzalez and Margaret Smith to the Northwest Justice Project Board.

John W. Phillips is the new Board member for the Legal Foundation of Washington.

Timothy Bradbury was added to the Ethics Advisory Committee.

Shannon Skinner was appointed by the Board to the CLE Committee.

Governor Henderson was designated as the Board representative to attend a multistate Admission Study Group to consider joint admissions requirements or procedures with Oregon, Idaho and Utah.

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