January has been a very busy month in my office, with several new major cases. I have a sense that the economy is starting to get better and I see many clients preparing for more business in 2010.
As you may know, I handle a number of cases along with two colleagues in my office suite, particularly in commercial litigation. One of my colleagues and I were just retained in a $14 Million lawsuit in federal court in Florida, and it reminded me of just why smaller firms can be much more efficient in this type of litigation.
Our hourly rates are a little less than hourly rates at larger law firms, but that is not why we are more cost-efficient. Without large teams of associates (young lawyers who do basic research and analyze documents in litigation) we are simply forced to be much more efficient. I believe that the legal work that we do in these types of cases is every bit as excellent as that done in the mega law firms, but we do it with fewer attorneys, and therefore, a much smaller cost to the client.
I have litigated against the largest law firms in the country, when I was a federal prosecutor and later in private practice. While these firms can quickly produce large amounts of paper, I will match a small litigation firm against them at any time.
My colleagues and I now have two major federal tax cases in Georgia and Maryland (one of which is now before the 4th Circuit Court of Appeals) as well as the new case in Florida. I litigated (and settled) a state court case in Florida last year. Naturally, we have local counsel in each of these cases, but we generally handle most of the cases in our office.
If you or your company is involved in litigation, I hope you will allow us to evaluate your case before you make a decision on counsel.
Mark L. Rosenberg, Esq.
Incorporate in Delaware?
A number of new clients have recently asked me whether they should incorporate their company in Delaware. As everyone knows, most large companies are incorporated in Delaware to take advantage of favorable corporate law in that state. Also, the Delaware courts have a lot of experience in corporate litigation, so large companies are more comfortable in court there.
For a smaller company, or one that is family-owned, however, the advantages are not very clear, and probably not worth the extra cost and trouble. Remember that a corporation (or LLC) that is created in Delaware must still register as a "foreign corporation" in any state in which it does business. Moreover, an incorporation in Delaware requires that you have (and pay for annually) a "registered agent" in Delaware. If you live in Maryland, DC or Virginia, as do many of my clients, and that is where your company does business, I advise incorporating in that state. You can be the registered agent for your company, although I am glad to take on that responsibility for your company, if you wish.
Let me know if you have other corporate questions as you go forward to create your company.
Mark L. Rosenberg, Esq.
I hope this newsletter has been helpful to you. Please feel free to send it to your friends and colleagues and let me know if we can serve you in any way. Thanks.