2014-07-15T14:26:41-05:00 2013-12-31 462108854 KENDALL PREBOLA AND JONES LLC PO BOX 259 BEDFORD PA 155220259 990 2013-01-01 521516688 LAWYERS FOR CIVIL JUSTICE LAWY 2024290045 1140 CONNECTICUT AVE NW NO 503 WASHINGTON DC 20036 ANDREA LOONEY EXECUTIVE DIRECTOR 2024290045 2014-07-17 1 RICHARD M JONES CPA P00621721 8146231880 2014-07-17 X 2013 2015-11-30 17:44:51Z ANDREA LOONEY 1140 CONNECTICUT AVE NW NO 503 WASHINGTON DC 20036 1322026 0 X WWW.LFCJ.COM X 1987 DC LCJ PROMOTES THE CORPORATE AND DEFENSE PERSPECTIVE ON ALL PROPOSED CHANGES TO THE FEDERAL RULES AND WORKS PROACTIVELY TO ACHIEVE SPECIFIC RULE REFORMS BY GALVANIZING CORPORATE AND DEFENSE PRACTITIONERS AND LEGAL SCHOLARS TO OFFER CONSENSUS PROPOSALS TO THE RULE MAKERS. OUR CURRENT FEDERAL RULEMAKING AGENDA IS FOCUSED ON REINING IN THE COSTS AND BURDENS OF DISCOVERY THROUGH FRCP AMENDMENTS RELATED TO OUR THREE PILLARS OF DISCOVERY REFORM: (1) A NATIONAL AND UNIFORM SPOLIATION SANCTION APPROACH; (2) A FAIR AND PRACTICAL REVISED SCOPE OF DISCOVERY; AND (3) DEVELOPMENT OF INCENTIVE-BASED "REQUESTER PAYS" DEFAULT RULES. WE BELIEVE IT IS CRITICAL TO ADDRESS ALL THREE IN ORDER TO RESCUE THE CIVIL JUSTICE SYSTEM, WHICH IS IN SERIOUS NEED OF REPAIR. THE CURRENT DISCOVERY RULES ENCOURAGE BROAD, EXPENSIVE, AND OFTEN UNNECESSARY DISCOVERY, WHICH THWARTS THE AVAILABILITY OF A JUST, SPEEDY AND INEXPENSIVE DETERMINATION OF THE ISSUES. 27 27 4 27 0 0 1028750 1201000 109677 112209 1661 359 1846 -974 1141934 1312594 0 0 0 0 490177 486385 0 0 72409 805229 711576 1295406 1197961 -153472 114633 761013 785333 241388 151523 519625 633810 X CREATED BY CORPORATE AND DEFENSE TRIAL COUNSEL, LAWYERS FOR CIVIL JUSTICE IS A NATIONAL COALITION SUPPORTING EXCELLENCE, FAIRNESS AND IMPROVEMENTS WITHIN THE CIVIL JUSTICE SYSTEM. IT SUPPORTS ACTIVITIES AT BOTH THE STATE AND NATIONAL LEVELS DESIGNED TO ACHIEVE REFORMS, WHICH WILL ENSURE BALANCE IN THE CIVIL JUSTICE SYSTEM. GREATER PREDICTABILITY IN DAMAGE AWARDS, STREAMLINING THE DISCOVERY PROCESS, AND IMPROVING THE MANAGEMENT OF LITIGATION AND SCARCE JUDICIAL RESOURCES ARE ALL LONG RANGE GOALS OF LCJ. 0 0 626677 FEDERAL RULES OF CIVIL PROCEDURE: LCJ'S PROMOTES THE CORPORATE AND DEFENSE PERSPECTIVE ON ALL PROPOSED CHANGES TO THE FEDERAL RULES AND WORKS PROACTIVELY TO ACHIEVE SPECIFIC RULE REFORMS BY GALVANIZING CORPORATE AND DEFENSE PRACTITIONERS AND LEGAL SCHOLARS TO OFFER CONSENSUS PROPOSALS TO THE RULE MAKERS. OUR CURRENT FEDERAL RULEMAKING AGENDA IS FOCUSED ON REINING IN THE COSTS AND BURDENS OF DISCOVERY THROUGH FRCP AMENDMENTS RELATED TO OUR THREE PILLARS OF DISCOVERY REFORM: (1) A NATIONAL AND UNIFORM SPOLIATION SANCTION APPROACH; (2) A FAIR AND PRACTICAL REVISED SCOPE OF DISCOVERY; AND (3) DEVELOPMENT OF INCENTIVE-BASED "REQUESTER PAYS" DEFAULT RULES. WE BELIEVE IT IS CRITICAL TO ADDRESS ALL THREE IN ORDER TO RESCUE THE CIVIL JUSTICE SYSTEM, WHICH IS IN SERIOUS NEED OF REPAIR. THE CURRENT DISCOVERY RULES ENCOURAGE BROAD, EXPENSIVE, AND OFTEN UNNECESSARY DISCOVERY, WHICH THWARTS THE AVAILABILITY OF A JUST, SPEEDY AND INEXPENSIVE DETERMINATION OF THE ISSUES. 220492 112209 MEMBERSHIP SERVICES:LCJ PROVIDES FOR SERVICES RELATED TO POLICY ADVOCACY FOR SENIOR CORPORATE AND DEFENSE COUNSEL. THESE SERVICES INCLUDE MONITORING AND RESPONDING TO LEGISLATIVE INITIATIVES IN SUPPORT OF PROVIDING IMPROVEMENTS TO THE CIVIL JUSTICE SYSTEM AND PROVIDING A FORUM FOR DEFENSE AND CORPORATE COUNSEL TO INTERACT WITH MEMBERS OF CONGRESS, JUDGES, CIVIC AND BUSINESS LEADERS AND OTHER INDIVIDUALS WHO SHARE A COMMON INTEREST IN PROVIDING FOR IMPROVEMENTS TO THE ADMINISTRATION OF JUSTICE IN THE UNITED STATES. MEMBERS ARE ELIGIBLE TO OBTAIN "CLE" OR CONTINUING LEGAL EDUCATION CREDIT SINCE LCJ PROGRAMS ARE APPROVED FOR CLE IN MANY STATES. 111959 E-DISCOVERY:FEDERAL: LCJ HAS LED THE DEFENSE COMMUNITYS CAMPAIGN TO AMEND THE FEDERAL RULES OF CIVIL PROCEDURE TO REDUCE THE COSTS AND BURDENS ASSOCIATED WITH DISCOVERY OF ELECTRONIC INFORMATION. LCJ'S PROACTIVE AND PERSISTENT ADVOCACY IS SHOWING RESULTS: THE FRCP AMENDMENT PROPOSALS APPROVED BY THE RULES COMMITTEE IN AUGUST 2013 REFLECT SUBSTANTIAL PROGRESS IN TWO OF THE THREE KEY AREAS OF LCJ'S WORK: 1) AN ALL-NEW RULE 37(E) PRESERVATION RULE THAT BARS SANCTIONS FOR LOSS OF ESI ABSENT PREJUDICE, AND RESTRICTS THE MOST SEVERE SANCTIONS TO INSTANCES WHERE A PARTY ACTS "WITH THE INTENT TO DEPRIVE ANOTHER PARTY OF THE INFORMATION'S USE IN THE LITIGATION"; 2) A PROPOSAL TO AMEND RULE 26(B)(1) TO RE-DEFINE THE SCOPE OF DISCOVERY TO INCLUDE INFORMATION RELEVANT TO CLAIMS AND DEFENSES AND PROPORTIONAL TO THE NEEDS OF THE CASE - ELIMINATING THE OVERBROAD CONCEPTS OF "REASONABLY CALCULATED TO LEAD TO THE DISCOVERY OF ADMISSIBLE EVIDENCE" AND THE "SUBJECT MATTER" OF THE LITIGATION. LCJ HAS MAINTAINED A CONSTRUCTIVE DIALOGUE WITH KEY MEMBERS OF THE FEDERAL JUDICIAL CONFERENCE, AND ENCOURAGES THE INPUT OF LCJ MEMBERS IN THE RULE MAKING PROCESS. 19694 EXPERT EVIDENCE: 11342 PROTECTIVE ORDERS AND SEALED SETTLEMENT AGREEMENTS: 31036 990164 0 1 0 1 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 11 0 1 4 1 0 0 0 0 1 1 0 0 0 X 27 27 0 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 0 1 1 0 X THE CORPORATION 2024290045 1140 CONNECTICUT AVE NW SUITE 503 WASHINGTON DC 20036 MARC E WILLIAMS PRESIDENT 2.00 X X 0 0 0 ROBERT D HUNTER PRESIDENT ELECT 2.00 X X 0 0 0 F THOMAS CORDELL JR VICE-PRESIDENT 2.00 X X 0 0 0 WAYNE B MASON PAST PRESIDENT 2.00 X X 0 0 0 LEAH L LORBER SECRETARY-TREASURER 2.00 X X 0 0 0 MARK E RICHARDSON BOARD MEMBER 2.00 X X 0 0 0 MICHAEL S BECKWITH BOARD MEMBER 2.00 X 0 0 0 JULIA L BRICKELL BOARD MEMBER 2.00 X 0 0 0 MOLLY H CRAIG BOARD MEMBER 2.00 X 0 0 0 MARTHA J DAWSON BOARD MEMBER 2.00 X 0 0 0 MARKUS GREEN BOARD MEMBER 2.00 X 0 0 0 MICHAEL J HARRINGTON BOARD MEMBER 2.00 X 0 0 0 FRED M HASTON III BOARD MEMBER 2.00 X 0 0 0 THOMAS H HILL BOARD MEMBER 2.00 X 0 0 0 TIMOTHY K HOWARD BOARD MEMBER 2.00 X 0 0 0 EDWARD M KAPLAN BOARD MEMBER 2.00 X 0 0 0 JOHN K KIM BOARD MEMBER 2.00 X 0 0 0 DOUG LAMPE BOARD MEMBER 2.00 X 0 0 0 CONNIE LEWIS LENSING BOARD MEMBER 2.00 X 0 0 0 ROBERT L LEVY BOARD MEMBER 2.00 X 0 0 0 MARY MASSARON ROSS BOARD MEMBER 2.00 X 0 0 0 JOHNATHAN M PALMER BOARD MEMBER 2.00 X 0 0 0 TIMOTHY A PRATT BOARD MEMBER 2.00 X 0 0 0 VICTORIA H ROBERTS BOARD MEMBER 2.00 X 0 0 0 ROBERT H SHULTZ JR BOARD MEMBER 2.00 X 0 0 0 JOHN PARKER SWEENEY BOARD MEMBER 2.00 X 0 0 0 QUENTIN F URQUHART JR BOARD MEMBER 2.00 X 0 0 0 J MICHAEL WESTON BOARD MEMBER 2.00 X 0 0 0 BARRY BAUMAN EXECUTIVE DIRECTOR 40.00 X 220090 0 51149 220090 0 51149 1 0 1 0 BROWNSTEIN HYATT FARBER SCHRECK PO BOX 172168 DENVER CO 802172168 LEGAL - PROGRAMS 270000 ALFRED W CORTESE JR 3146 RILEY ROAD SOLVANG CA 93463 LEGAL - PROGRAMS 112500 2 841000 360000 1201000 REGISTRATION FEES 900099 112209 112209 112209 829 829 16 0 486 16 -486 -470 -470 7972 8946 -974 -974 1312594 112209 0 -615 280767 224614 42115 14038 136364 90699 32029 13636 20431 13010 5139 2282 25823 17951 5557 2315 23000 16980 4333 1687 390101 376267 13834 18440 13824 3350 1266 6190 6190 30082 23851 4681 1550 9961 7467 1810 684 75202 56377 13662 5163 6866 5492 687 687 129451 103561 12945 12945 8543 6404 1552 587 2935 2935 TEMPORARY HELP 13226 9916 2403 907 PRINTING & DESIGN 12340 10730 1168 442 DUES AND SUBSCRIPTIONS 5625 4217 1022 386 CONTINUING EDUCATION 2614 2614 1197961 990164 135388 72409 53659 649979 655735 5000 0 27925 4276 15543 12306 55443 27635 30912 27808 26012 25907 5642 5642 761013 785333 112449 100599 117250 40000 11689 10924 241388 151523 X 479625 554816 40000 78994 519625 633810 761013 785333 114633 -448 0 X 0 1 X 1 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 1191000 120000 120000 120000 PART III-B, LINE 4 "REASONABLE ESTIMATE" BASED ON THE FACTS AND CIRCUMSTANCES PROVIDED HERE WITHIN, THE LAWYERS FOR CIVIL JUSTICE DEEM THAT A REASONABLE ESTIMATE OF NONDEDUCTIBLE MEMBERSHIP DUES WAS MADE IN GOOD FAITH FOR THE 2013 CALENDAR YEAR. MEMBERSHIP DUES RELATED TO THE 2013 CALENDAR YEAR WERE MAILED DURING THE LAST QUARTER OF THE 2012 CALENDAR YEAR. AT THE TIME OF THE MEMBERSHIP DUES RENEWAL MAILING, THE LAWYERS FOR CIVIL JUSTICE DID NOT INCUR NOR DID THEY EXPECT TO INCUR ANY LOBBYING OR POLITICAL EXPENDITURES. AS SUCH, THE NOTIFICATIONS PROVIDED TO ITS MEMBERS DID NOT PROVIDE A PERCENTAGE OF DUES THAT WAS NOT PERMITTED TO BE DEDUCTIBLE. SUBSEQUENT TO THE 2013 MEMBERSHIP DUES MAILING AND RESPECTIVE PAYMENTS FROM ITS MEMBERS, THE LAWYERS FOR CIVIL JUSTICE RETAINED THE SERVICES OF A LAW FIRM TO PROMOTE IT'S MISSION AND PROGRAMS. THESE SERVICES EFFECTIVELY BEGAN ON MARCH 1, 2013 AND CONTINUED THROUGH DECEMBER 31, 2013. AS A PART OF THIS SERVICE, CERTAIN EXPENSES WERE INCURRED THAT MEET THE DEFINITION OF LOBBYING AND POLITICAL EXPENDITURES. THE LAWYERS FOR CIVIL JUSTICE WAS RECENTLY PROVIDED INFORMATION THAT INDICATES THAT THE RETAINED LAW FIRM REPORTED EXPENDITURES AS REQUIRED BY THE LOBBYING DISCLOSURE ACT OF 1995 DURING THE 2013 CALENDAR YEAR TOTALING $120,000. THE LAWYERS FOR CIVIL JUSTICE TERMINATED ITS REGISTRATION AS A LOBBYING ORGANIZATION EFFECTIVE AS OF JUNE 30, 2012. AS SUCH, THERE WERE NO IN-HOUSE LOBBYING EXPENDITURES DURING THE 2013 CALENDAR YEAR, BUT RATHER THE ONLY LOBBYING EXPENSES INCURRED WERE BY THE CONTRACTED PROGRAM SERVICE LAW FIRM. BASED ON THE ABOVE FACTS, THE LAWYERS FOR CIVIL JUSTICE IS REQUESTING TO CARRYOVER THE UNDERREPORTED LOBBYING AND POLITICAL EXPENSES TO THE 2014 CALENDAR YEAR. THE MEMBERS WILL BE NOTIFIED AS TO THE PERCENTAGE OF DUES NOT PERMITTED TO BE DEDUCTIBLE IN 2014 AND WILL INCLUDE THE 2013 UNDERREPORTED EXPENSES IN THIS CALCULATION. 1494 566 928 53949 27069 26880 27808 DEFERRED RENT ABATEMENT 10924 10924 X 1325946 -448 13800 13352 1312594 0 1312594 1211761 13800 13800 1197961 0 1197961 PART X, LINE 2: IN JUNE 2006, THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) ISSUED FASB ASC NO. 740-10 [FORMERLY INTERPRETATION NO. 48 (FIN 48)], ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, WHICH IS AN INTERPRETATION OF ASC 740'S (FORMERLY SFAS NO. 109), ACCOUNTING FOR INCOME TAXES. FASB ASC NO. 740-10 CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ORGANIZATION'S FINANCIAL STATEMENTS IN ACCORDANCE WITH ASC 740'S AND PRESCRIBES A RECOGNITION THRESHOLD AND MEASUREMENT ATTRIBUTE FOR THE FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF A TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. FASB ASC NO. 740-10 REQUIRES THE EVALUATION OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN THE COURSE OF PREPARING THE ORGANIZATION'S TAX RETURN TO DETERMINE WHETHER THE TAX POSITIONS HAVE A "MORE-LIKELY-THAN-NOT" PROBABILITY OF BEING SUSTAINED BY THE APPLICABLE TAX AUTHORITY. THE LAWYERS FOR CIVIL JUSTICE PERFORMED AN EVALUATION OF UNCERTAIN TAX POSITIONS FOR THE YEAR ENDED DECEMBER 31, 2013, AND DETERMINED THAT THERE WERE NO MATTERS THAT WOULD REQUIRE RECOGNITION IN THE FINANCIAL STATEMENTS OR THAT MAY HAVE ANY EFFECT ON ITS TAX-EXEMPT STATUS. AS OF DECEMBER 31, 2013, THE STATUTE OF LIMITATIONS FOR TAX YEARS 2010 THROUGH 2012 REMAINS OPEN WITH THE U.S. FEDERAL JURISDICTION OR THE VARIOUS STATES AND LOCAL JURISDICTIONS IN WHICH THE ORGANIZATION FILES TAX RETURNS. IT IS THE ORGANIZATION'S POLICY TO RECOGNIZE INTEREST AND/OR PENALTIES RELATED TO UNCERTAIN TAX POSITIONS, IF ANY, IN INCOME TAX EXPENSE. AS OF DECEMBER 31, 2013, THE ORGANIZATION HAD NO ACCRUALS FOR INTEREST AND/OR PENALTIES. X 0 0 0 BARRY BAUMAN EXECUTIVE DIRECTOR 209090 0 11000 0 0 0 33614 0 17535 0 271239 0 0 0 FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION HAS TWO LEVELS OF MEMBERSHIP. FIRST THE MEMBER CORPORATIONS AND DEFENSE ORGANIZATIONS HAVE DESIGNATED REPRESENTATIVES TO THE ORGANIZATION. THEY HAVE FULL VOTING RIGHTS. THE CORPORATIONS MAY DESIGNATE AN EMPLOYEE (USUALLY FROM THEIR GENERAL COUNSEL'S OFFICE), TO PARTICIPATE IN THE LCJ. THE DEFENSE ORGANIZATIONS DESIGNATE REPRESENTATIVES FROM AMONG THEIR MEMBER LEADERSHIP TO DO THE SAME. A SECOND CATEGORY OF MEMBERS WHICH INCLUDES LAW FIRMS AND CONTRIBUTORS TO THE ORGANIZATION HAVE NO VOTING RIGHTS FORM 990, PART VI, SECTION A, LINE 7A THE LCJ MEMBERS MEET ANNUALLY IN THE SECOND QUARTER OF EACH YEAR AS MANDATED BY THE BYLAWS. THE DEFENSE ORGANIZATIONS EACH DESIGNATE THREE REPRESENTATIVES FROM THEIR RESPECTIVE ORGANIZATIONS AS BOARD MEMBERS. THE EXECUTIVE COMMITTEE ACTS AS A NOMINATING COMMITTEE FOR PURPOSES OF RECOMMENDING THE REMAINING REPRESENTATIVES FROM THE CORPORATE SECTOR. THE NOMINATIONS ARE THEN CONSIDERED BY THE FULL BOARD FOR RATIFICATION. FORM 990, PART VI, SECTION B, LINE 11 THE EXECUTIVE DIRECTOR REVIEWS THE 990 TAX RETURN UPON RECEIPT FROM THE PREPARER. ONCE THE 990 IS APPROVED INTERNALLY, THE 990 TAX RETURN IS FORWARDED TO THE AUDIT COMMITTEE FOR AN INDEPENDENT REVIEW. ANY QUESTIONS OR CONCERNS FROM THE AUDIT COMMITTEE ARE DIRECTED TO THE EXECUTIVE DIRECTOR. ONCE THE AUDIT COMMITTEE AND THE EXECUTIVE DIRECTOR ARE SATISFIED AS TO THE COMPLETION OF THE 990 TAX RETURN, THE EXECUTIVE DIRECTOR THEN SIGNS THE RETURN. FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY ALL KEY EMPLOYEES AND MEMBERS OF THE BOARD OF DIRECTORS ARE REQUIRED TO READ AND UNDERSTAND THE CONFLICT OF INTEREST POLICY, AGREE TO COMPLY WITH THE POLICY, MAKE DISCLOSURES AS NECESSARY AND SIGN THE ORGANIZATIONS CONFLICT OF INTEREST STATEMENT AS A CONDITION OF THEIR POSITION WITH THE ORGANIZATION. AT THIS TIME ANY CONFLICTS MUST BE DISCLOSED TO THE EXECUTIVE DIRECTOR OR ELECTED PRESIDENT OF THE ORGANIZATION. IF A CONFLICT IS CONFIRMED, THE CONFLICT WILL BE COMMUNICATED TO ALL MEMBERS OF THE BOARD OF DIRECTORS AND THE INDIVIDUAL WITH THE CONFLICT WILL BE UNABLE TO VOTE ON AN MATTERS RELATED TO THE CONFLICT OF INTEREST. ALL MEMBERS OF THE STAFF AND BOARD OF DIRECTORS ARE DIRECTED TO ENFORCE THE CONFLICT OF INTEREST POLICY. IF THEY SUSPECT A CONFLICT, IT MUST BE COMMUNICATED TO THE ORGANIZATION'S EXECUTIVE OR ELECTED PRESIDENT WHO WILL THEN TAKE APPROPRIATE ACTION IN REGARDS TO A POTENTIAL CONFLICT. FORM 990, PART VI, SECTION B, LINE 15 A. EXECUTIVE DIRECTOR IS REVIEWED ANNUALLY BY THE BOARD OF DIRECTORS AT THEIR BOARD MEETING REGARDING COMPENSATION. THE LEVEL OF COMPENSATION ESTABLISHED FOR THE EXECUTIVE DIRECTOR INCLUDES REVIEW OF PERFORMANCE, THE SKILLS OF THE EMPLOYEE AS WELL AS INDEPENDENT INFORMATION TAKING INTO ACCOUNT THE GEOGRAPHIC LOCATION, AND INFORMATION AVAILABLE FOR SIMILARLY SITUATED EMPLOYEES IN OTHER SIMILAR CAPACITIES. B. KEY EMPLOYEES ARE REVIEWED BY THE EXECUTIVE DIRECTOR ANNUALLY REGARDING COMPENSATION; THE BOARD OF DIRECTORS INCLUDES A GENERAL PERCENTAGE INCREASE WITH THE ORGANIZATION'S ANNUAL BUDGET, AND IS USED WITH EXECUTIVE DIRECTOR'S DISCRETION. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST