BUSINESS LITIGATOR OF THE MONTH Dan Boyce When Everything’s On the Line FIDUCIARY LITIGATION MANAGEMENT GROUP LONGLEAF LAW PARTNERS PETER JOHNSON ON COMPENSATION THE THIRD RAILKen Minniti PRESIDENT & CEO Howard LaGraffe VICE PRESIDENT Caitlin Keniston EDITOR Robert Friedman NC TRIANGLE PUBLISHER Veronica Jauregui ASSISTANT EDITOR Jaqueline Dávila GRAPHIC DESIGN Brian Craig Peter A. Johnson Craig Petronella CONTRIBUTING EDITORS Jessica Gonifas CONTRIBUTING WRITER Headshots and Corporate David Moore PHOTOGRAPHY FROM THE Publisher TARGETMARKETMEDIA Attorney at Law Magazine is published by: Target Market Media Publications Inc. Columns authored by local attorneys and feature stories about local attorneys or law firms were solicited by this magazine and paid for but the attorney’s law firm or the attorney. Copyright ©2019, Target Market Media all rights reserved. Reproduction in whole or part is strictly prohibited. Advertising rates on request. Bulk third class (standard) mail. Although every precaution is taken to ensure accuracy of published materials, Attorney at Law Magazine & Target Market Media cannot be held responsible for opinions expressed or facts supplied by authors. Corporate Office : 5828 North 7th Street, Suite 200 Phoenix, AZ 85014 Phone (480) 219-9716 www.tmmpublications.com • info@tmmpublications.com WARD & SMITH’S WHITNEY CAMPBELL CHRISTENSEN AND PUBLISHER BOB FRIEDMAN AT ACC CLE. CHRISTENSEN INTRODUCED THE PROGRAM ON THE #METOO ERA. Northern Alabama | Atlanta | Chicago | Dallas | Ft. Lauderdale Jacksonville | Los Angeles | Miami | Minnesota North Carolina Triangle | Ohio | Philadelphia | Phoenix | San Antonio Salt Lake City | Middle Tennessee | Washington D.C. I magine living in the ginormous shadow of a father who was a famous Watergate prosecutor. For some, that might be a burden. But for Raleigh business litigator Dan Boyce, it is an inspiration. From an early age, Dan wanted to follow his father, Eugene, into the law. In our cover story, Dan discussed what he learned from his father and the impact that has had on his bet the company, bet the career and bet the farm practice at Nexsen Pruet. Raleigh attorneys Tom Sparks and Lee Laskody launched Fi- duciary Litigation Group last year to help resolve family conflicts over management of estates before the death of an elderly family member. In this issue, they discussed the delicate balancing act of doing what’s best for the heart and what’s best for the head. Compensation is the “third rail” at law firms according to law firm consultant Peter Johnson. In the next two issues, he’ll ex- plain the trends in compensation models, why it may be time to review how your firm is paying its attorneys and ideas for a new plan. In “Longleaf’s Got Talent,” you’ll read about how Longleaf Law Partners managing partner Jamie McCaskill is on a talent search to help with the growth of his commercial real estate law firm. In this issue, eminent domain attorneys Josh Hansen and Coo- per Howell discuss how North Carolina’s growth is increasing the demand for roads and infrastructure and squeezing out property owners. We hope you enjoy reading about your colleagues and getting guidance on how to improve your practice. Bob Friedman EXECUTIVE PUBLISHER (703) 868-1272 RFRIEDMAN@ATTORNEYATLAWMAGAZINE.COM ATTORNEY AT LAW MAGAZINE · NORTH CAROLINA TRIANGLE VOL. 7 NO. 4 416 TABLE OF Contents FROM THE CREEK TO THE CAPITAL BIKE RIDE Join Campbell Law for a fun day of biking —ending with BBQ and Bluegrass at our downtown Raleigh campus in celebration of our anniversary and the weekend's International Bluegrass Music Association festival! COME RIDE WITH US! SATURDAY 9/28 Register at bit.ly/1040BikeRide 6 Longleaf’s Got Talent Commercial Real Estate Law Firm of the Month 9 Initial Public Offerings – Considerations for Investors By Patrick H. Yanke, CFP 11 Case Study: Cybersecurity Fix For Small Firm By Craig Petronella 12 Fiduciary Litigation Group Dispute Resolution From the Head and the Heart 14 Is It Time to Review Your Firm’s Compensation System? By Peter A. Johnson, M.Ed., JD 16 Dan Boyce Business Litigator of the Month 20 Protect Your Website with These Five Easy Steps By Brian Craig 22 Hansen, Howell & Wilkie, PLLC Understand Your Rights 24 6 Simple Ways Law Firms Can Improve Cash Flow By Jessica Gonifas 25 Legal Innovators Civvis Helping Pro Se Go Paperless SPECIAL SECTIONS 21 Event Spotlight 23 Event Spotlight 26 Talk on the Town 27 Upcoming EventsLongleaf’s Got Talent WRITTEN BY BOB FRIEDMAN PHOTOGRAPHY BY HEADSHOTS AND CORPORATE JAMIE MCCASKILL MICHAEL BIRCH, HOLLY MILLS, JENNA WEBB, JAMIE MCCASKILL, BEN WORLEY, LUCY BREWER, PENN CLARKE, KIM HUNSUCKER, DAVID MILLER AND WORTH MILLS R aleigh-based commercial real estate law firm Longleaf Law Part- ners is representing the developers of two of the crown jewel projects in downtown Raleigh. The redevelopment of the old News & Observer building and the entitlement of the massive Smokey Hollows Publix grocery store and adjoining 40-floor building at Capi- tal Boulevard and Peace Street are among the major projects with which the Triangle law firm is involved. In addition to these local proj- ects, its representing clients on multiple complex student and senior housing projects throughout the country. All that work has the 11-member boutique commercial real estate firm in an expansion mode with plans to move into new, larger office space next year. “We have our sights set on growth over the next de- cade, with plans to add six or seven more attorneys in that time frame,” said Managing Partner Jamie McCaskill. McCaskill and his colleagues launched Longleaf Law Partners last year with the rebranding of Morris, Russell, Eagle & Worley, PLLC. Over the years, experienced real estate attorneys had joined the firm and brought with them a clientele and level of work that fundamen- tally altered the firm’s capabilities and client approach. “Our firm had evolved, and we wanted our brand to reflect who we are today,” McCaskill said. “We have top-tier attorneys who chose to leave large, multi-specialty firms to be part of something different. The Longleaf Law brand reflects the energy and enthusiasm we have for our work and for our clients.” 6COMMERCIAL REAL ESTATE LAW FIRM OF THE MONTH Our number one goal is to achieve the best results for clients. We believe our big firm experience and small firm attitude is the best way to do that.” FIRST ROW: BEN WORLEY, ASHLEY SUMMEY, JESSICA DEL TORO, RHONDA MANION, KIM HUNSUCKER, LINDA BELL, MICHAEL BIRCH, HOLLY MILLS AND JAMIE MCCASKILL. SECOND ROW: PENN CLARKE, JENNA WEBB, DEREK TALADA, DAVID MILLER AND WORTH MILLS. THIRD ROW: KALINE BELL AND LUCY BREWER. BIG FIRM EXPERIENCE, SMALL FIRM ATTITUDE Longleaf Law represents some heavy-hitters in commercial real es- tate – entrepreneurial developers and individual investors, financial insti- tutions, nonprofits, private equity funds, and other companies owning and operating real estate. “We’re for- tunate to have great clients who ex- ecute meaningful transactions,” says McCaskill. “Our number one goal is to achieve the best results for clients. We believe our big firm experience and small firm attitude is the best way to do that.” BUILDING SOMETHING DIFFERENT As the firm grows, McCaskill is in- tent on fostering a collegial and col- laborative work environment among people who genuinely enjoy working together. He sees this supportive at- mosphere as one of the aspects that sets Longleaf Law apart from the larger, cutthroat firms. “We’ve had people join the firm who saw the upside of what we’re building here and wanted to jump in on the ground floor,” McCaskill said. “There was disillusionment with the way big law firms are structured. Here, everybody’s got each other’s backs and our people know that. Our practice is a collegial environment where everyone feels like we’re in the trenches together.” While Longleaf Law is comprised of talented, pedigreed attorneys who are serious about their work, Mc- Caskill is quick to point out that flex- ibility and work-life balance are also important firm values. With a young family himself, he wanted to create a law practice that would provide him and his colleagues the flexibility to spend time with their families, while also allowing for meaningful partici- pation in the firm. Longleaf Law is recruiting attor- neys with commercial real estate ex- perience. The practice offers flexible compensation options and working arrangements to fit varying life situ- ations. Attorneys earn a base salary but have the opportunity for a much larger income based on their produc- tion. THERE’S A NEED FOR WHAT WE DO Longleaf handles development, commercial financing, land use, as- set acquisitions, commercial leasing and litigation. Projects include retail, office, industrial, multifamily, single family residential communities, stu- dent housing and senior living com- munities. The firm’s clients are nationwide. Most have a connection to North Carolina – either based here and building here or based elsewhere and building here – which makes McCaskill very bullish on the firm’s expansion. “We’ve figured out something that’s working based on the client list we serve, the size of deals we’re doing and the types of people on our team. Everybody who’s joined our firm in the last two to three years has been successful,” said McCaskill. He is equally optimistic about con- tinued growth in commercial real estate development, regionally and statewide. “It’s North Carolina’s af- fordable business costs, climate and transportation infrastructure, all of which make the area attractive for real estate investors. We’ve got a qual- ity workforce and a huge educated base of talent from the three big uni- versities in the Triangle.” People can get a lot of value for their investment and the area is still on the upswing as opposed to being fully mature and costing more.” With all the development across the state, McCaskill sees a real need for attorneys who can do what Long- leaf does. “We’re not fighting with other commercial real estate firms for the same clients. There’s plenty of business to go around.” LONGLEAF LAW PARTNERS 2235 Gateway Access Point Suite 201 Raleigh, NC 27607 (919) 645-4300 www.longleaflp.com AttorneyAtLawMagazine.com 7I nitial Public Offerings (IPO) can be an attractive investment full of po- tential and risks. Many of us would love to go back in time and get in on the ground floor of Mastercard, Al- phabet (Google), and Facebook. Un- fortunately, we could have just as eas- ily gone under with eToys, Pets.com, and Groupon. IPOs are highly volatile by their nature. How can we find the diamonds in the rough? WHAT IS AN IPO? An IPO is a means of transferring a company’s ownership from private to public. The private owners are selling the company to unknown investors. The process is often referred to as “go- ing public.” New business ventures or current industry leaders may make the choice to go public to raise capital to pay off debts, fund growth initiatives, raise their public profile, or to allow exist- ing owners to diversify their holdings. The Triangle is a hot bed for IPOs in bio/pharm, medical devices and high tech among other industries be- cause of spin-offs from local univer- sities and existing companies. You’ve probably heard about specific IPOs in the N&O, TBJ, on social media and at backyard BBQ’s. HOW DOES IT WORK? The first step in going public is for the company to choose a lead under- writer to help with securities registra- tion and public distribution of shares. The lead underwriter then assembles a group of investment banks and bro- ker-dealers (known as a syndicate) to sell the shares to investors. AVOID THE HYPE Most of the information circulat- ing around an IPO is produced by the syndicate seeking to sell the shares— it’s their job to attract a market. Do your own due diligence. Consider the risks. This can be challenging because there is a lack of readily available pub- lic information on a company issuing shares for the first time. Spend time in the preliminary prospectus (the “red herring”) to learn about the compa- ny’s management team, target mar- ket, competitive landscape, financials, current shareholders, expected price range, potential risks, and the number of shares to be issued. PARTICIPATION Investors can find companies about to go public. by searching S-1 forms filed with the Securities and Exchange Commission (SEC). To participate, the investor must register with a bro- kerage firm. When companies issue IPOs, they notify brokerage firms which then notify investors. Most brokerage firms qualify participants by requiring a specified amount of funds in the brokerage account or limiting sales to those with a quali- fying number of transactions at the firm. Most large brokerages will not allow an investor’s first transaction to be an IPO. STRONG BROKERS TEND TO BRING QUALITY COMPANIES Although not a surety, look for companies teamed with a strong un- derwriter. There can be some mis- fires, but in general, quality broker- ages bring quality companies public. Smaller brokerages may be willing to underwrite a broader quality range of companies to keep their pipeline filled. SMALL BROKERAGES DO HAVE AN ADVANTAGE One advantage the smaller bro- kerages have when underwriting is that their smaller client base makes it easier for their clients to purchase IPO shares. Large brokerages will limit participation more strictly to efficiently allocate shares among so- phisticated investors. READ THE PROSPECTUS I mentioned the red herring above… do your homework. It isn’t entertaining reading, but it lays out risks and opportunities. What is the purpose of the money raised by the IPO? If the money is going to repay loans or buy the private owner’s eq- uity, that could be a bad sign. Beware of companies that can’t afford to repay debt without issuing stock. Money going to research, marketing, or ex- panding new markets is usually more promising. BE SKEPTICAL If a broker recommends an IPO to his clients, this may be cause for cau- tion. This is a good indication that in- stitutions and money managers have already passed on the underwriter’s attempts to sell them stock. In this situation, individual investors are es- sentially getting the leftovers that the “big money” didn’t want. An IPO po- sition should hold a place in a portfo- lio equal to other positions. If the po- sition grows to be overweighted over time, don’t be afraid to rebalance. BE PATIENT There is a “lock-up” period of about three to 24 months during which the underwriters and insiders of the company are contractually prohib- ited from selling any shares of stock. If they are relying on IPO marketing to bump of the share price for sale, they will have to wait—and that could spoil the strategy. If, at the end of the lock-up period, they continue to hold the shares, that could be an indication to market investors that the company has a promising future. Although many companies expe- rience an initial bump due to syndi- cate’s marketing, timing a flash in the pan is difficult as an individual inves- tor. Getting early shares of long-term ventures is usually more lucrative. Some investors who have bought stock at the IPO price have been re- warded handsomely for their fore- sight. Those who remain skeptical of the hype and inform themselves with available in- formation are likely to perform better than those who do not. PATRICK H. YANKE, CFP | Financial Patrick Yanke is a Raleigh-based financial advisor. Opinions expressed here are mine and not necessarily those of RJFS. The information is not a complete summary or statement of all available data necessary for making an invest- ment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. www.yankefinancial.com. Initial Public Offerings – Considerations for Investors AttorneyAtLawMagazine.com 9Next >