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Post by akhjd on Dec 5, 2009 10:08:57 GMT -5
I hope to apply for an ALJ position in the next round. I suspect this will take place in Spring 2010. If I am lucky enough to get an ALJ position, I plan to sell my private practice to another local attorney (who is also my "office landlord.") Since our practices are presently in the same large building, it should be a smooth transition, and he intends to keep my current staff and simply hire a new attorney to take my place. Issue: does anyone have any information on how to get a Social Security Disability practice appraised for sale? I am located in Ohio. Any information on ethical issues that I must be aware of, especially timing of the sale as it relates to my first day on the job as an ALJ? Obviously, I cannot receive money from attorney fees once I am in the position. Thanks!
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Post by Legal Beagle on Dec 5, 2009 11:14:46 GMT -5
Glad to see you found the Forum. Welcome.
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Post by topher on Dec 5, 2009 16:43:37 GMT -5
Many, many issues that you may well not be made aware of. All of your withdrawals of counsel and waivers of fees should be in prior to your start date, and the new 1696 and fee agreements for the new atty should be submitted ASAP or your clients will show as unrepped in the system. The position of the Office of Government Ethics is that you cannot receive any fees after your start date, even from work you did prior to your start date. Therefore, it is their position that if there are any fees pending at the time of your start date, they are lost. You obviously can not file fee petitions on any cases and but there also does not appear to be a mechanism to assign your time in the case to the new attorney. I personally believe this is a ludicrous and probably unsupportable reading of the statute, but without a fight, that is their position. If you send me a private message with your phone number, we can chat if you would like.
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Post by hooligan on Dec 8, 2009 21:02:12 GMT -5
Lots of things to think about and plan for:
First, assume nothing. No matter how good a candidate you think you will be, do not start selling things off or quit your day job before you have accepted an offer. Many on the list, even those with high scores, have waited years.
You can not practice law after you are sworn in. That does not mean you can not collect money that is owed to you. If Social Security will no longer cut checks to you for fees you have previously earned, you need a contract provision with your successor. The successor agrees to pay you for your practice. The amount can be calculated between the two of you with formulas, just like any other business sale. To make everything more official looking, include a covenant not to compete. You need to file a Waiver of Fees in all cases you worked on and the successor needs a new representation agreement and fee agreement. The Successor get paid everything and you get your contracted amounts. It is a sale, not a fee collection. Note that this characterization may have tax implications for both of you. You may be able to claim the payments as capital gains and the successor may need to capitalize the payments to you. This will take some time to fine tune, so do the planning ahead of time but put it in place only after you actually get selected. (Your successor will not be happy if he pays you $100,000 and he has to pay the tax on it because it is his income, not yours.)
Please note that I am not giving you legal advice. It is opinion only and specific details of your situation may make these suggestions inappropriate. There are undoubtedly other approaches that may also fit your needs. Do not just walk away from months worth of fees.
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Post by privateatty on Dec 12, 2009 9:27:25 GMT -5
Many, many issues that you may well not be made aware of. All of your withdrawals of counsel and waivers of fees should be in prior to your start date, and the new 1696 and fee agreements for the new atty should be submitted ASAP or your clients will show as unrepped in the system. The position of the Office of Government Ethics is that you cannot receive any fees after your start date, even from work you did prior to your start date. Therefore, it is their position that if there are any fees pending at the time of your start date, they are lost. You obviously can not file fee petitions on any cases and but there also does not appear to be a mechanism to assign your time in the case to the new attorney. I personally believe this is a ludicrous and probably unsupportable reading of the statute, but without a fight, that is their position. If you send me a private message with your phone number, we can chat if you would like. Court: Now, counselor explain to me why its an ethical violation for attorney/ALJ to collect his fees for work done before Oct. 1? OGC: Well, your Honor, the Agency would disburse those fees and as a Judge, attorney/ALJ can't collect fees on an Agency check while employed. Court: But why? OGC: Because it has the appearance of impropriety. Court: To whom? The client? He's happy because he's getting paid, right? And the Agency? Didn't they hire him in part because he had Agency experience? Is he going to see this client again? Of course not! So whose ox is being gored here counselor? OGC: The Agency doesn't like it your Honor. Court: What is your precedent, counselor? The Agency or the statutes and Constitution you swore to uphold? Because your Regulation has no legal underpinnings! OGC: Your Honor... Court: Don't "your honor" me, counselor! Give me one affirmative defense to the five counts of this Complaint for Declaratory Relief!! OGC: It violates our Regulations, Judge! Court: Judgement for the Plaintiff together with court costs and attorney's fees!
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Post by akhjd on Dec 23, 2009 11:06:58 GMT -5
I was recently in touch with Attorney Jim Brown from the Cleveland area and we had a lengthy discussion about a possible sale of my practice. His website: www.attorneyconsultant.com/index.shtml. I was very impressed by Jim's range of knowledge on the subject. He formerly ran a successful disability practice before downsizing his life to become a private consultant. He was quite involved in the Washington DC scene with respect to promoting much needed changes in SSA, including automatically withdrawn attorney fees from SSI awards a few years ago. I look forward to working with him if I do sell. This guy really knows his stuff. Highly recommended.
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Post by Legal Beagle on Jan 6, 2010 7:52:50 GMT -5
For those of us that did do other things in real life besides Disability, it is my understanding that the prohibition on receiving fees only comes from government coffers. I have some PI cases and Workers Comp ones that I do expect to get something for if they eventually cash in. Someday. Maybe.
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Post by illuminator on Jan 6, 2010 11:08:05 GMT -5
Why wait to be appointed as an ALJ? I would go ahead and sell your practice now so that you are ready to go when you are appointed. What could go wrong? Your appointment is a mere formality!
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Post by privateatty on Jan 6, 2010 18:13:07 GMT -5
For those of us that did do other things in real life besides Disability, it is my understanding that the prohibition on receiving fees only comes from government coffers. I have some PI cases and Workers Comp ones that I do expect to get something for if they eventually cash in. Someday. Maybe. Why anyone who has worked hard to earn those fees would not challenge an obviously fatally flawed "reg", "rule" or whatever is way beyond me. Its not as if they can discipline you and get away with it. But then I don't work for the Commish...so I can't appreciate what has been told to you.
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Post by topher on Jan 6, 2010 20:00:22 GMT -5
The "rule" does apply only to fees to be paid by the federal government. Their position is that the receipt of those fees potentially violates the criminal conflict of interest statute. In my view, there are many, many problems with their position, but all I will say is that if the issue cannot be resolved, then a challenge there will be.
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