Dowee, Cheatem, and How

2 Jun

Dowee, Cheatem, and How has been around for a long time providing legal services.  Until the mid-1970s, it functioned as a general partnership.  Today, the firm holds itself out to the public as a professional corporation.  There’s a listing with the Secretary of State that indicates the firm is a corporation in good standing.  The firm maintains the appropriate ledgers to satisfy corporate formalities.  The auto-attendant announces the name of the firm when the phone is answered and then provides the extensions for the attorneys and support staff.  It’s on the letterhead.  The Martindale Hubbell listing emphasizes it as well as the firm’s website.  Even the sign on the building proclaims it.  Contracts for representation stress that the agreement exists between the firm and the client while specifying that any attorney employed by the firm can perform the work.

Behind closed doors it is a very different story.

  • Each attorney, without consultation with the other attorneys, assembles his own team of support staff.
  • Each attorney establishes his own, unwritten policies, i.e., working hours, holidays, comp time, bonuses, etc.
  • Each attorney has his own system for checking for conflicts of interest. Amazingly, there has only been one conflict of interest among the attorneys. (The client with the most money, who was the second client to retain the firm, was kept.)
  • Each attorney bills separately for his own time, expenses, and mileage on the firm’s letterhead; and receivables come to the billing attorney to be posted to his accounts.
  • Each attorney writes a check to the firm for the expenses generated by his practice and one-third of the common expenses like the utilities, property insurance, and the loan on the building as well as professional liability insurance.
  • Each attorney receives a K-1 from the informational tax return filed with the IRS indicating how much money he earned during the year and an allocation of the expenses paid so that this information can be transferred to the attorney’s individual tax return.  There is never any income sharing among the firm’s attorneys nor does the firm distribute bonuses.

Is this really a firm or just three individual attorneys sharing office space?





One Response to “Dowee, Cheatem, and How”

  1. transplantfromohio September 11, 2016 at 9:29 pm #

    Shared workplace with the illusion of teamwork.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: