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Now Is the Time to Buy an Hour of Time from Your Lawyer
Michael F. Donner: Partner, Stein & Lubin LLP
www.steinlubin.com |
Many people in the ad industry perceive lawyers as emergency contingencies, like red levers to be pulled only in the case of fire. Lawyers are rarely seen as integral business partners who - by providing thoughtful business advice - can add value to an agency's operations and help it grow.
In the current economic climate, ad agencies must, by necessity, become more sophisticated consumers of legal services. Lawyers are not just resources to turn to when things go wrong. An experienced practitioner - who knows your business as well as you do - can become your most trusted advisor and offer practical and creative advice relating to all aspects of your business' operations.
Even if your agency is facing considerable financial challenges, now is the time to buy an hour or two with your lawyer. A relatively modest investment in an attorney's time could reap enormous rewards, like heading off a problem before it arises or improving the agency's bottom line in ways you previously never considered.
For example:
Dust Off and Review Your Client Retention Agreements
As client ad budgets are slashed and money gets tighter, your agency might find itself confronting new collection risks. Are you prepared? Does your client retention agreement provide an expedited mechanism, such as a binding arbitration, for adjudicating collection claims? Does it protect the agency against the use and dissemination of its work product by clients who commission, but fail to pay for, the work? Is the agreement updated and streamlined or the mere result of years of cut-and-pasting from old contracts? Could the agreement's provisions expose the agency to needless (and expensive) fights with clients?
An affiliate of a global ad firm recently consulted with me after one of its former clients refused to pay about $100,000 in fees. Unfortunately, the affiliate had used its global parent’s form retention agreement when it was first retained by the client. That form did not contain an arbitration clause. It required all disputes to be adjudicated by the New York courts under New York law (despite the fact that the affiliate was located in San Francisco). The agency eventually elected to walk away from the fees because it determined that a suit in New York would be an impractical drain on executive time and financial resources. But now the agency has a new retention agreement and it calls for expedited, cost-effective arbitrations of client fee disputes in San Francisco.
Update Your Employment Agreements and Handbooks
In difficult economic times, people tend to do desperate things. A fired employee might file a lawsuit for wrongful termination. A departing employee might try to take a run at some of the agency's clients or solicit other employees to join him at his new firm. Still others might use the agency's confidential information (like details about its expenses or pricing structure) when competing for clients on behalf of a rival firm. Do you have employment agreements with your employees? Do they address these potential issues?
Another new client recently consulted with me about reducing its workforce. We came up with a plan to slim the agency’s overhead by thoughtfully downsizing about six underutilized or underperforming members of its staff. At $30,000 to $100,000 per person in annual wages, the savings from these terminations was significant (more than $300,000 per year). Moreover, because the terminations were conducted appropriately and in consultation with counsel, the agency could avoid the risk of potential wrongful termination suits.
Renegotiate Your Lease Agreement and Loan Documents
These days, you're probably looking for ways to cut costs and keep the agency as lean as possible. You might be able to accomplish this objective by renegotiating your lease with the landlord or your loan with the bank. In either case, a lawyer's review of the lease or loan documents might yield a previously unconsidered fulcrum of leverage.
One of our clients recently wanted to scale-down its operations and sublease unused office space. It found a subtenant, but the landlord made a number of unreasonable demands as a condition to its provision of consent to the sublease. We reminded the landlord that, if it didn’t drop its unreasonable demands (none of which it was allowed to make under the lease), our client might have grounds to walk away from the entire lease (and move to cheaper quarters). The landlord relented.
These are just a few of the areas in which a qualified, experienced attorney might provide beneficial counseling that could save your agency money in both the short and long term and free you up to do what you do best. An hour or two of attorney time each month - either as an ounce of prevention or to just get sound business or legal advice - is irreplaceable and money well spent. Of course, none of the work I performed in the foregoing examples took a mere one to two hours. But the point remains the same.
Michael F. Donner is a Partner in Stein & Lubin LLP's litigation practice group, where he specializes in business, real estate, employment, fiduciary duty and unfair business practice matters. For 18 years, Mr. Donner has been a trusted advisor to advertising and digital agencies, brand owners, media organizations and technology companies, counseling them on how they can avoid commercial disputes and representing them in all phases of those disputes as they arise. |
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BIG THINK STUDIOS
Upcoming Events
AIGA San Francisco to Host San Francisco Design Week
San Francisco Mayor, Gavin Newsom, has once again declared June 15–21, 2009, as “Design Makes a Difference W eek” in San Francisco. SF Design Week reaches out to a diverse community of over 20,000 Bay Area design professionals as well as local businesses, non-profits, entrepreneurs, students, the design-savvy public, tourists, and more.
AIGA San Francisco will be sponsoring a full week of events highlighting the diversity and professionalism of the design community around the bay. Our goal is to raise public awareness of the impact that all design—graphic, product, interior, fashion, architecture, advertising, et cetera—has in the San Francisco Bay Area.
Special Exhibit – June 15-August 7, 2009: 50th Anniversary of Communication Arts
AIGA SF will mount an exhibit in our gallery space showcasing the 50th Anniversary of Communication Arts. Founded in 1959, Communication Arts is the premier source of inspiration for graphic designers, art directors, design firms, corporate design departments, advertising agencies, interactive designers, illustrators and photographers—everyone involved in visual communication.
Location: AIGASF - 130 Sutter Street, Suite 600, San Francisco, CA 94104
Visit www.sfdesignweek.org for a full listing of events.
Job Posting
Adminstrative Assistant for Ad Agency
Growing multicultural advertising agency is seeking an Administrative Assistant who will support the agency. The ideal candidate is energetic, intelligent, motivated, and able to complete multiple tasks independently with confidentiality and attention to detail. Excels in a fast-paced environment with diverse staff and works well under pressure. Good written and verbal communication skills, decision making ability and attention to detail are equally important. This is an entry-level position and a great way to break into an advertising agency and learn the ins and outs with a visionary agency.
General Job Duties
• Assist managerial staff with administrative duties
• Answer phones, forward calls to appropriate personnel
• Create a welcoming reception area and serve as the face of the agency
• Follow-up on appointments and reminders
• Manage and coordinate agency travel
• Manage mailroom and accept deliveries
• Order supplies and manage requests
• Plan, and execute office socials
• No task too big or too small
Click here for more information.
New ads present Spam as spark for lively meals
The makers of Spam, long a symbol of frugality, are advertising the often-maligned canned pork as a way to relieve boredom at the dinner table as the recession wears on.
The "Break the Monotony" ad campaign moves to television and radio Monday as consumers seeking to eat on the cheap buy more of Hormel Foods Inc.'s low-cost Spam, Dinty Moore beef stew and namesake chili. The campaign offers new uses for the meat-in-a-can designed to brighten its image — away from the meat notoriously lampooned in a 1970 Monty Python skit and toward a fun, hip ingredient useable in a range of comfort foods.
Sales of canned foods, especially canned meat, have been rising in the recession as people limit their food spending because they usually cost less than fresh fruits, vegetables or meat, said Marcia Mogelonsky, an analyst with research firm Mintel.
"They're an alternative to just eggs or a sandwich or whatever," she said. "It extends a meal. It adds a protein. Read more.
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