June 24, 2016 nº 1,758 - Vol. 13
"Some rise by sin, and some by virtue fall."
William Shakespeare
In today's Law Firm Marketing, Positive ways to collect money and maintain relationships
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UK votes to leave EU; Prime Minister Cameron to step down
The news from Britain is really sobering. It looks like a sad day for Europe and Britain. The cost of populism emerged today in all its glory. The campaign to leave the European Union has won the referendum. It means the UK is now committed to withdrawing from the group of 28 countries, a process that has come to be known as Brexit. Under the "divorce settlement", as some have called it, the UK and EU must agree how to divide assets, resolve EU budget issues and set out the future rights of EU nationals in the UK and vice versa. The settlement requires approval by a majority of EU members, plus the European Parliament and UK Parliament. Brexit will undoubtedly boost the fortunes of anti-EU, anti-immigration parties in some other EU countries. It may also inspire Eurosceptics in some other countries to hold their own referendums on EU membership. Brussels would see that as a "domino" effect - a nightmare scenario for the European project. Now to the other Members states to save the EU from unravelling which excludes business as usual, especially in Brussels. Reform or die! (Click here)
Turbulence and uncertainty for the market after 'Brexit'
Britain’s vote to leave kicks off a fraught and unpredictable process likely to spook investors around the world.
Europe stunned by UK Leave vote
A wave of shock is reverberating around Europe as countries across the EU and beyond digest the decision by UK voters to leave the European Union. David Cameron's will invoke Article 50 of the Lisbon Treaty next week, triggering a divorce negotiation lasting at least two years - a vastly complicated legal and political process. The rest of the EU will want to forge a good deal with the British government, but in many capitals there will be little appetite for doing the UK any favours. That's partly because Euroscepticism is on the rise across the continent, and influential political leaders will not want to give the impression that leaving is easy. France and the UK are facing the prospect of new bilateral discussions on everything from trade ties, to residency rights for expats. And there have also been some politicians calling for Paris to scrap the Le Touquet agreement which governs the processing of UK-bound migrants in Calais. The head of the foreign affairs committee of Russia's Upper House, Konstantin Kosachev said: "Considering our difficult relations with the EU now, there is a temptation to celebrate its misfortune. But I don't share this view. The EU remains our biggest trade partner. And if the EU falls apart at the seams, this will affect our trade." Experts believe that the anticipated turbulence across European markets could sink the fragile Greek economy.
1 - Germany court upholds ECB bond-buying program - click here.
2 - Alibaba wins dismissal of lawsuit over pre-IPO regulatory warning - click here.
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First bid for McDonald's China franchises confirmed
The first bid has been confirmed for McDonald's China and Hong Kong restaurants as the US fast food giant plans to franchise its outlets in the country. China's Sanpower confirmed it had put in a joint bid with Beijing Tourism Group. There are more than 2,200 McDonald's in China with plans to open 1,250 more. In March, McDonald's had said it would reorganize its business in China, seeking to franchise its restaurants. Media reports have suggested that the US company has received more than half a dozen bids, which could raise as much as $3bn.
Positive ways to collect money and maintain relationships
By Trey Ryder
You know the many get-tough methods you can use to make clients pay. The problem is, these methods often embarrass clients, arouse anger and destroy relationships. Here are constructive steps you can take to avoid collection problems, encourage payment and strengthen bonds with clients.
Step #1: Give every new client your written schedule of fees and collection practices. You might do this as part of your engagement letter or as a separate document. If you have different fees for different types of clients, then prepare a fee schedule for each client category. When you give every new client your explanation of fees and collection practices, clients understand that these practices apply to all of your clients so they don't take your policies personally. Also, when clients have a clear understanding of how you collect money, they will act to avoid the known consequences of late payments.
Step #2: Give clients a reduction for paying your invoice on time. Some lawyers add finance charges to past due invoices, but finance charges usually create bad feelings. Instead, take the positive approach and offer your client something he wants: a discount You might offer clients a reduction of 5 or 10 percent when they pay your invoice within 10 days or whatever time period you choose. Write a short statement on your invoice so your client knows the exact amount of the reduction (in dollars, not a percentage) and the date by which you request payment. Something like this:
(Bill, you're invited to take a prompt-payment discount of $375 if I receive your payment by Thursday, July 10th.)
When you offer a prompt-payment discount, you show your client how to reduce his legal bill. As a result, your client saves money and you get paid -- the proverbial win-win situation. But when you penalize clients with collection procedures and finance charges, you strain and sometimes demolish relationships.
Step #3: In your first request for payment (after the original invoice), acknowledge that your client might not have received your bill and include another copy. Also, write a gentle request for payment over your signature. If the post office didn't deliver your bill, this gives your client a second chance. And if not paying your bill was simply an oversight, you don't want to come on too strong when your client made a mistake.
Step #4: Once an account is past due, make sure all requests for payment are over your (the lawyer's) signature. Clients often think their past-due balances are known only to the back-office billing clerk -- or an outside billing service. But when the request for payment comes with a note from you, the client realizes you know his payment is late. To avoid embarrassment and the possibility of jeopardizing your relationship, clients often pay your invoice or contact you to request payment terms.
Step #5: Send collection requests frequently. Some clients think that after they receive your invoice or statement, they won't hear from you for another month. In this way, they view the arrival of your statement as a 30-day extension. Instead, send requests for payment of past-due amounts every 10 days or so. This keeps your receivable ever-present in their mind and gives them a gentle nudge because they know they'll receive another statement in 10 days.
Step #6: Invite clients to pay with a credit card. If you think your client may be short on cash, offer an alternative. Plus, clients often like to pay by credit card because they add to frequent flier miles or other reward programs.
Step #7: Ask clients to call you to arrange a payment schedule. Some clients don't ask permission to make payments to avoid embarrassment or for fear that you'll say no. If you think your client may be in a cash crunch, invite him to call you about payment terms. If your client is "a little short," this may be the breath of fresh air he needs. Plus, your offer to help him tightens the bond between you and strengthens your relationship.
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© Trey Ryder
FREE LAWYER MARKETING ALERT: If you'd like to receive Trey Ryder's weekly Lawyer Marketing Alert, send an e-mail to [email protected]. Write "Subscribe LMA" in the subject line and write your name and e-mail address in the body of the message.
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Regalías
Argentina llegó este jueves a un acuerdo con la semillera estadounidense Monsanto. El pacto, avalado por toda la cadena agrícola, establece que será el Estado quien realizará los controles necesarios para asegurarle a Monsanto y a otras compañías de biotecnología el cobro de regalías por sus nuevas tecnologías.
(Presione aquí)
Decreto
El gobierno de Brasil emitió un decreto que formaliza la transferencia de hasta US$ 1,050 mlls. en fondos federales al 2017 a la firma estatal de energía Centrais Eletricas Brasileiras. El decreto tendrá efecto inmediatamente aunque requiere la aprobación del Congreso. También despoja a Eletrobras, como se conoce a la compañía, de la administración del fondo RGR para la electrificación rural y de los fondos de subsidios de energía CDE, a partir de 2017.
Inversiones
La petrolera italiana ENI invertirá más de US$ 245 mlls. en los próximos dos años en México para llevar a cabo la evaluación del contrato de producción compartida que ganó en la segunda licitación de la Ronda Uno mexicana. Parte de la inversión será destinada a la perforación de cuatro pozos exploratorios delimitadores de reservas con unos US$ 168 mlls.
Volkswagen 'to pay $10bn' for US emissions scandal
Volkswagen has agreed to pay $10.2bn to settle some claims in the US from its emissions cheating scandal, according to reports. Most of the money would compensate 482,000 owners of two-litre diesel cars programmed to distort emissions tests. Owners could receive between $1,000 and $7,000, depending on their car's age. The agreement could still change when it is officially announced by a judge on Tuesday. Lawyers representing car owners, Volkswagen and the US Environmental Protection Agency have not yet agreed the steps VW will take to fix the cars. The company still faces accusations over its three-litre diesel cars, as well as the prospect of hefty fines from US regulators and possible criminal charges.
(Click here)
Obama migrant plan fails to pass supreme court
The Supreme Court has announced it is split on Obama’s plan to shield millions of undocumented immigrants living illegally in the US. The divide comes as a blow to the president's 2014 executive action, which he enacted without Congress and will now be assessed in a lower court. Republican House Speaker Paul Ryan applauded the news, saying only Congress should write laws. But the president said the deadlock was "heartbreaking" for millions of people. "They are Americans in every way but on paper," he said at the White House, adding that reform will happen, sooner or later. "Congress is not going to be able to ignore America forever," he said.
(Click here)
Ceasefire ends five decades of war
Colombians are celebrating the signing of a ceasefire by the government and the Farc rebel movement, which ended 50 years of civil war. In the capital, Bogota, people took to the streets, hugging each other and singing the national anthem. The announcement is seen as one of the last steps before a full peace deal is signed, which is expected within weeks.The longest-running insurgency in the Western hemisphere left some 220,000 people dead and millions displaced. Thursday's announcement in Havana caps formal peace talks that started three years ago in the Cuban capital. But it does not mark the start of the ceasefire, which will only begin with the signing of a final accord.
Abortion demand 'soars' amid Zika fear
Fears over the Zika virus have contributed to a "huge" increase in the number of women in Latin America wanting abortions. Estimates suggest there has been at least a doubling in requests in Brazil and an increase of a third in other countries. Many governments have advised women not to get pregnant due to the risk of babies being born with tiny brains.
US Senators reach deal on national GMO labeling bill
The new bill would require companies to disclose genetically modified ingredients in food products. But critics dislike that this information does not have to appear directly on the food label.
Egypt court invalidates transfer of islands to Saudi Arabia
A court in Cairo on Tuesday invalidated the Egyptian president's decision to give sovereignty over two islands to Saudi Arabia. In April President Abdel-Fattah al-Sisi transferred sovereignty of Tiran and Sanafir islands in the Red Sea to Saudi Arabian Prime Minister Mohammed bin Salman as a gesture of good will following a meeting in which deals for oil and development had been discussed. While some showed celebration within the court room, it is likely that the government will appeal the ruling.
The ‘right to be forgotten’ and other cyberlaw cases go to court
“The law can’t be right if it’s 50 years old. Like, it’s before the internet.” The quote is from a speech Larry Page made at a Google developers conference in 2013, and it’s a fair summary of how technology companies have traditionally viewed the legal system. Regulations can’t keep pace with technological change, so opt for forgiveness over permission. If your idea is successful, you’ll be able to defend it by the time authorities tell you to stop. “If you look at the relationship between innovation and how society interacts with it, the emphasis has been on ‘code as law,’?” says Urs Gasser, the executive director for Harvard’s Berkman Center for Internet & Society. That means relying mostly on software to govern online interactions—blocking spam or Twitter trolls, even trying to identify copyright infringement. Gradually, that approach is starting to change. “Post-Snowden,” Gasser says, “there’s a renewed emphasis on ‘law as law,’ to regulate code.”
Brazil police arrest former Planning Minister Bernardo
Brazil police on Thursday arrested former Minister Paulo Bernardo and raided Workers Party offices in a spinoff of a massive corruption probe targeting the country's main parties and some of its most powerful executives. Investigators said Bernardo, who was planning minister and communications minister during Workers Party administrations from 2005 to 2014, received more than 7 million reais ($2.08 million) in kickbacks. The Workers Party also benefited from the scheme. Police searched 40 places in five different states and sought to arrest 10 other people with Thursday's operation, dubbed "Brazil Cost," an outgrowth of the two-year "Operation Car Wash" probe centered around kickbacks via state-run oil producer Petroleo Brasileiro SA. The alleged kickbacks to those arrested stemmed from an overcharged contract for technical assistance at the Planning Ministry, investigators said. The suspects face charges including corruption, money laundering and criminal association. Operation Brazil Cost came out of Sao Paulo instead of Curitiba, where most of the recent anti-graft crusade has originated under the jurisdiction of federal Judge Sergio Moro. The move to a different state showed the fight spreading as police and prosecutors learn from Curitiba's successful methods, investigators said.
Obama signs law granting EPA power to regulate toxic substances
Obama signed legislation Wednesday granting the Environmental Protection Agency (EPA) power to regulate thousands of everyday substances. The law makes major changes to the Toxic Substance Control Act (TSCA), which has not been modified since it was passed in 1976. The law provides the EPA a new risk-based safety standard to evaluate chemicals. The new standard places significant weight on vulnerable individuals such as children and pregnant women. Some environmental groups say the new law does not grant the EPA enough power, while others argue it gives federal regulators excessive power over the states.
(Click here)
UBS gives IRS records on US citizen’s account in Singapore
UBS Group AG has ended a legal fight with the Internal Revenue Service, agreeing to hand over records on an American client’s account in Singapore as US authorities seek to move beyond Switzerland in their fight against offshore tax evasion. The case involves information that the IRS sought on the account from 2001 to 2011 for Ching-Ye Hsiaw, a US citizen living in China. On Feb. 23, the agency filed a petition asking a federal judge in Miami to force UBS, the largest Swiss bank, to produce account records on Hsiaw. The IRS said it needed the records to determine Hsiaw’s income tax liabilities from 2006 to 2011. After reaching an agreement, the bank handed over records on May 31 and June 10, the Justice Department said Tuesday in a court filing dismissing the petition.
Facebook shareholder vote produces odd results
Facebook shareholders sent a curious message about the social network’s governance this week. More than half of Facebook owners not named Mark Zuckerberg clicked the corporate equivalent of a “Like” button for just three of the company’s directors. Weirdly, shareholders seemed to prefer the venture capitalist Peter Thiel over top executives like Sheryl Sandberg, the company’s chief operating officer, and Mr. Zuckerberg himself. It is a brainteaser that suggests institutional investors are more inclined to tick boxes than follow their heads.
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