REPORT FROM COUNSEL

WINTER 2006 ISSUE

FIRM UPDATES

Honors, Awards and Appointments

Jeffrey L. Rehmeyer II Honored Among Central PA’s Top Young Business Leaders

CGA attorney Jeffrey L. Rehmeyer II was honored among the region’s top, young, dynamic business leaders under the age of 40 who are working to shape the future of Central Pennsylvania. The Central Penn Business Journal presented awards during the twelfth annual Forty Under 40 reception at the Hilton Harrisburg on October 17, 2006.

The forty winners are a select group of individuals who have achieved notable success and demonstrated strong leadership both within and outside of their chosen field. They share a commitment to professional excellence and the community.

Jeff is a leader at the firm where he chairs the Business and Intellectual Property practice groups, as well as the Marketing Committee. He is also a leader in the community, contributing his time and legal expertise to serve organizations such as Dallastown Dollars For Scholars, Dallastown Communities That Care, Dallastown Area Educational Foundation, the York County Chamber of Commerce Foundation, Habitat for Humanity, Junior Achievement, and others.

Events and Speaking Engagements

Tina H. Fox, Andrew M. Paxton and Margaret W. Driscoll presented a seminar to the Pennsylvania Self-Storage Association in Allentown, Pennsylvania, on various issues including the bankruptcy code, vehicle code, family issues, lease issues, and the Solders’ and Sailors’ Civil Relief Act.

Benjamin L. Pratt was a faculty member at the Employment Law Update Seminar in November held by Sterling Education Services, Inc. He spoke about new developments in Employment Law and provided information regarding revisions to the FLSA Regulations Compliance. Ben is also on the faculty of the PSBA’s Institute for Collective Bargaining and Labor Relations. He recently taught the last session in the three-part series, where the attendees stepped into the shoes of the association to understand how strategies take shape at the bargaining table and experience effective ways to counter union proposals.

Professional Development

Tina H. Fox attended a Practical Pretrial Practice seminar held by the Pennsylvania Bar Institute. The seminar covered basic pretrial tips and practices to prepare for litigation. She also attended a Mechanics’ Lien seminar in November. The seminar provided a basic overview of mechanics’ liens and a discussion of the new amendments to the Mechanics’ Lien Law 1963, which go into effect on 1/1/07.

Frank H. Countess is Co-Chairing the Professional Division of the Crispus Attucks Association Capital Campaign. The campaign is raising $7.2 million to construct a new Early Learning Center on Duke Street.

ANNOUNCEMENTS

Glenn J. Smith Joins CGA Law Firm

Glenn J. Smith joined the firm in August, 2006. He is an experienced litigator, concentrating on civil and commercial litigation, as well as municipal and collection law. Prior to going into private practice, Glenn developed his litigation experience working in the York County District Attorney’s Office, as an Assistant DA, and as a Special Assistant U.S. Attorney for the Middle District of Pennsylvania.

Glenn graduated from Juniata College in 1992 and completed his J.D. at Widener University School of Law in 2000. Glenn is also an adjunct faculty member for Widener University School of Law's Intensive Trial Advocacy Program and is a member of the Pennsylvania Association of Criminal Defense Attorneys, American Trial Lawyers Association, and the Herbert B. Cohen Chapter of the American Inns of Court.

Anthony T. Bowser Joins CGA Law Firm

Anthony T. Bowser was born and raised in York County, and graduated from York Catholic High School in 1997. He earned his Bachelor of Science in Business Logistics with a minor in the Legal Environment of Business from the Pennsylvania State University in 2002.

Anthony completed his J.D. at Widener University School of Law in 2006. He was a member of the Moot Court Honor Society, where he competed in the Henry G. Manne Moot Court Competition for Law and Economics, hosted by George Mason University School of Law. He is a member of the York County and Pennsylvania Bar Associations. He is admitted to practice before the Pennsylvania Supreme Court and the Federal District Court for the Middle District of Pennsylvania. Anthony has joined the Business Practice Group with an emphasis in Employment and Labor Law.

ARTICLES

Pennsylvania Adopts Uniform Trust Act
By Jon C. Countess

On July 7, 2006, Pennsylvania adopted a version of the Uniform Trust Act. Generally, this Act is to become effective 120 days from the date of its enactment, which would be November 6, 2006. The important change in this Act which affects existing estate plans is that the so-called “Rule Against Perpetuities” has been abolished effective as of December 31, 2006. What this means is that we are no longer required to provide in a trust, created in a Will or in a separate trust instrument, that the entire balance of the principal and any income must be distributed within lives in being plus 21 years. Instead, you can now create a perpetual trust in Pennsylvania and accumulate the income of the trust for as many successive generations as you wish. In this respect, Pennsylvania is now equal to Delaware and North Dakota in allowing a trust to continue indefinitely and to postpone the distribution of principal and income for successive generations. If you wish to discuss the Act or consider making a change in your existing estate plan documents, please contact your attorney at CGA Law Firm.

BILL AMENDING WORKERS’ COMPENSATION STATUTE
By Anne E. Zerbe

On November 9, 2006, a Bill amending the Workers’ Compensation Statute was signed into law. The legislation was developed in response to a legislative Budget and Finance Committee Review of Pennsylvania’s Workers’ Compensation Laws which found that litigation costs associated with Workers’ Compensation claims in Pennsylvania were higher than in other states. The law is intended to reduce the cost of Workers’ Compensation litigation and make the system more efficient. One of the biggest changes to the system includes establishing a mandatory trial schedule, including mandatory mediation. According to the new law, Workers’ Compensation judges must set a mandatory trial schedule at the first hearing. The trial schedule shall include specific deadlines for the presentation of evidence by the parties and dates for future hearings. Judges are required to strictly enforce the schedule, and parties will only be excused with good cause. In addition to the mandatory trial schedule, the law requires the Workers’ Compensation judge to schedule a specific date and time for mediation conference. Mediations must occur no later than thirty (30) days prior to the date for filing proposed Findings of Fact and Conclusions of Law or legal briefs or memoranda, unless the judge determines, upon good cause shown, that mediation would be futile. The mandatory trial schedule and mediation requirements are effective immediately.

In addition, the law also requires that the Office of Adjudication create a resolution hearing procedure within one hundred twenty (120) days of the effective date to hear compromise and release agreements in an expedited manner. Hearings are required to be held within fourteen (14) business days of notice of a commutation or compromise and release. The parties are permitted to submit proof of filing of the petition at the hearing. The Workers’ Compensation judge has five (5) days after the hearing to render a decision.

Additionally, within sixty (60) days from the date that the Governor signed the Bill, on November 9, 2006, minimum weekly payments to individuals injured prior to August 31, 1993, must increase to a minimum of $100.00 per week beginning January 1, 2007.

The new law also limits an assignment of Workers’ Compensation judges to no more than seventy-five (75%) percent of the petitions (including resolution hearing petitions) from any particular county. Additionally, in the case of compromise and release settlement agreements, counsel fees must not exceed twenty (20%) percent of the Workers’ Compensation settlement amount.

The law also amends the Appeal Board. According to the law, the Workers’ Compensation Appeal Board shall have between three (3) and fifteen (15) members appointed by the Governor. If the Board consists of more than three (3) members, the Board must sit in panels of three. Any action taken by the panel must be supported by a majority of the panel. The new law also sets forth the requirements for the panel members to write, circulate and respond to proposed draft opinions and awards.

The amendments also establish an Uninsured Employer’s Guarantee Fund to pay workers’ compensation benefits and associated costs to claimants where the employer liable for the payments failed to insure or self-insure its workers’ compensation liability at the time the injury occurred. The Uninsured Employer’s Guarantee Fund applies to any injury or death which occurs on or after the effective date of the Article establishing the fund. The workers shall notify the fund within forty-five (45) days after the worker knew that the employer was uninsured..

On behalf of the fund, the department will exhaust all revenues of law against the uninsured employer in order to collect the amount of any voluntary payments or awards, including the payment or award itself and reimbursement of costs, interest, penalties, fees and costs of the fund’s attorney which had been paid by the fund. The fund will also be reimbursed for costs or attorney’s fees which were incurred in seeking reimbursement for the fund. The department will investigate violations of uninsured employers and will pursue prosecutions through coordination with the prosecuting authority. Any restitution obtained will be paid to the fund. The department also has the right to appear and represent the fund as a creditor in any bankruptcy proceedings involving the uninsured employer. The fund is also authorized to file and cause to be entered a lien for the entire balance of judgments against the employer. Judgment shall be a statutory lien against the property of the employer.

In order to establish and maintain the fund, insurers and self-insured employers will be assessed the total compensation paid by all insurers and self-insured employers during the previous calendar year. The assessment will not exceed 0.1% of the total compensation.

With the passage of House Bill 2738, employers can be hopeful that the ongoing workers’ compensation litigation will be resolved more quickly and less costly under the new law. One business industry rep. has predicted savings of $100 million per year. The creation of the Uninsured Guarantee Fund provides a safety net for employees who are injured or seeking relief under the Workers’ Compensation Law, where their employer has failed to obtain workers’ compensation insurance. Employers should insure they are maintaining appropriate workers’ compensation insurance coverage to avoid civil and criminal penalties. If you have any further questions concerning House Bill 2738, please contact Anne Zerbe.