The Rabbi and The Rebbetzin (38 page)

Albert
Nash opened the meeting and updated the directors. “Gentlemen, I have news of
critical importance. Two of our outstanding partners and one additional one
from a rival company had joined together to form a new competing law firm with
ours. The defectors include Mrs. Adler, known as the Rebbetzin, Andrea Cohen–Mazer,
and her husband Bill Mazer from Haber Green. These outstanding lawyers are all
known to you for their ability and skill. In the short run, their departure
will cause us a serious loss. In the long run, their firm may become a serious
threat to our survival.

“I
have been assured by Madam Adler and William Mazer that it is not their intent
to harm our firm. On the contrary, they wish to affiliate their new company
with Finkel Nash and that is the subject of this meeting. Before we start the
discussion I wish to advise the directors that the new clients secured by these
women and by the fees involved brought us a gain in the fiscal year in the area
of two million dollars over and above their salaries. The publicity generated
by Andrea alone kept Finkel Nash on the front pages through all of two years
and moved our name recognition to first place in the Philadelphia area. I do
not believe that we will ever be able to replace these employees with others of
the same quality. I will give the floor to each of you in turn to discuss the
situation and decide the rate for affiliation, if that is what you wish to do.”

The
first to take the floor was Sam Leonard, director of the criminal law
department, the largest section in the company. “Those two prima donnas are the
most ungrateful wretches I have ever encountered. You took them out of law
school with no experience whatsoever and hired them at extravagant salaries.
You made them partners within their first year of work when other associates
have to work five to seven years to become partners. I myself had to go to
court to defend Shulamit after she crowned a client with a hammer. You then
paid her compensation for her suffering in the millions of dollars. Now she has
you over a barrel and is threatening to start a rival firm of her own. I say
pay her off and let her go. There are many fish in the sea and you will be able
to find other beauty queens to replace her. Finkel Nash will survive long after
their new firm will go broke.” So saying, he yielded the floor to the next
director, Desmond Jones, director of the corporate division.

“I
beg to differ with my distinguished colleague Samuel. I am not worried about immediate
losses at Finkel Nash. Somehow we’ll survive the defection. I am very much
concerned about the precedent that their action will set. In any large
organization, there are partners who are more productive and those who are less
so. The concept that they are working to enrich themselves rather than working
for the firm is dangerous. If we give in to the present situation, we will
encourage every employee to measure his productivity against that of other
workers. We will have arguments galore which will disturb the unity of the
firm. We have already given these two women more compensation and financial
rewards than other hard-working partners. I agree with Samuel that we should
let them go and forget about affiliation.”

The
other two directors took sharply opposing views to those of the first partners.
“What is this? Are we acting like a communist country while we live in a capitalistic
society? Each individual should be free to maximize rewards for his/her
productivity. Where would we be today, without the Rockefellers and the Mellons?
If these two women feel they can do better on their own, and I believe they
can, we should wish them well in their endeavors. If they wish to retain their
affiliation with Finkel Nash and benefit thereby, we should welcome them.”

The
fourth director agreed with his liberal colleague. “We should keep smiling if
we tell the world that two of our partners became the founders of their own law
firm in a short period of time. It will help our recruiting tremendously and
will inspire the most motivated among them to apply to our firm. If the new
firm is successful, we will benefit by the affiliation fees and by the public
knowledge that Finkel Nash is a growth firm.”

Albert
Nash summarized the opinions rendered and said, “From the comments offered I
conclude that two directors are for granting affiliation and two are opposed.
Before I break the tie, I have two bits of information that I want to share.

“First,
I invited two of the defectors to appear before our committee as our next item
of business. After we hear from them, I will cast my tie-breaking vote. Second,
I have learnt from reliable sources that an additional founder has joined the new
company, which will be henceforth known as Adler, Cohen, Mazer and Levine. His
name is Abraham Levine and coincidentally he is the father of one of our prima
donnas, Shulamit Adler. He will also be present before our committee. For those
who are not up to date on the financial news, Mr. Levine was the owner of
Telacomp which he recently sold to a consortium of computer companies for a sum
reported to be in the neighborhood of 250 million dollars. For those who
expressed their doubts about the ability of the new firm to survive financially,
let it be known that Mr. Levine has underwritten the solvency of the new company
should there be any financial problems.”

Albert
then called for an intermission of the directors meeting and sent word to bring
in Andrea and the Levine family members. Nash, who had previously met Abe
Levine, was able to introduce him to the other directors. When the group
entered the office, Sam Leonard recalled that he had met Abe Levine at the
trial of Shulamit, his daughter.

Nash
went on to say, “Mr. Levine has had a business relationship with Finkel Nash
and is participating with his daughter and one other employee in this meeting
with our special committee. The committee wishes to gain information about the
plans of the group regarding the new law firm they hope to open as an affiliate
of Finkel Nash. Andrea, I would like you to update the committee about what is
happening.”

Andrea
spoke in a calm and careful manner. “Members of this special committee, I am
pleased that you have come to hear of the intentions of our group to establish
a new law firm in Philadelphia. One of our founders, Bill Mazer, works for a
different law firm and could not properly join in negotiating an arrangement
with Finkel Nash. Mr. Abe Levine who recently became one of our founders will
speak to you about our affiliation after I complete my few words.

“I
wish to make it clear that Shulamit and I have no complaints against Finkel
Nash. We have been treated very well by the company and we are not leaving
because we have been dealt with unfairly in any manner. I will not deny that we
feel that our compensation, generous though it is, does not match the contributions
that we have made to the company by our diligent efforts. Given our special
talents, we are certain that we can do better financially for ourselves in a
company of our own.

“There
is no reason for us to deny for ourselves and our children the opportunity of a
better life. In the framework of a new concern, we feel that the opportunity to
do so is greater. It is true that we will benefit by using the name Finkel Nash
in our public statements and advertisements, but we are willing to pay for this
privilege with a share of our profits. I will ask Mr. Levine to discuss the
financial aspects of affiliation. May I say that Mr. Levine’s former company,
Telacomp, had more than 25 branches and affiliates.”

Abe
took the floor and spoke about the affiliates of Telacomp. “We provided the
equipment at wholesale prices and the owners of the branches did not have to
worry about supplies of materials. We also advertised for the branches and
informed the public of where they could be found. We did not charge them for
any of our services. We defended them in law suits and we sent our top talent
to advise them as to how to maintain the retail aspects of the business.

“The
affiliation charge was never more than 8% of all profits over the sum of a
hundred thousand dollars. We arrived at these figures because they matched the
business practices of various companies that have also developed branches and
affiliates.

“The
situation at Finkel Nash is not quite analogous to that which prevailed at
Telacomp. Our company provided all the raw material for the branches. Finkel
Nash will not provide clients for the new firm. Our company will have to
provide its own clients and all the technical and support services that we
need.  

“What
we are seeking from Finkel Nash is to share its well-known reputation of being
a highly recognized legal firm. Given the young age of our main founders, an
affiliation with Finkel Nash will give our clients confidence in the stability
of our company’s services. I can give my assurance to the directors here that
Finkel Nash will benefit from the public knowledge that it is a growing company
and I can guarantee that there will be no financial danger to Finkel Nash. From
my own resources I will make sure that the new company will remain solvent and
any losses incurred will be covered. I will guaranty as well that all
affiliation fees will be paid on time and ahead of any other liabilities.

“The
directors of Finkel Nash are well aware of the capabilities of my daughter and
her partner Andrea. I am sure they have heard of the special talents of the
third founder, William Mazer, who is an outstanding litigator and has done
wonders for the firm of Haber Green. Let it be known that although I am
relatively well-to-do, I am not a gambler. I am fully confident that my
investment and support of the new firm is based on real fiscal responsibility
and does not stem from parental sympathy. I expect to reap substantial returns
from my investment.

“As
an opening gesture, the new company is willing to accept a rate of commission
of 10% of net profits for the next five years. This amount will be paid ahead
of any other profit-sharing agreements among founders and partners. I thank the
gentleman here for their time and attention.”

When
Abe Levine finished, Albert Nash looked at Shulamit and asked, “Do you have
anything to add to your father’s statement?”

Shulamit
said modestly, “I have very little to add. He has a sterling business
reputation and has never failed to keep his word in any of his dealings. I will
endorse Andrea’s statement and say that we have no complaint against Finkel
Nash or any of its employees.”

“Thank
you, Shulamit. I believe you can all wait in your offices for our response.”

After
they left, Albert reconvened the meeting. “As far as accepting affiliation, I
am stating that, by the power vested in me to resolve ties among the directors,
I declare that the motion to affiliate the new law firm with Finkel Nash is
passed by three votes to two. I will suggest two important changes to Mr.
Levine’s proposal. First, I would like to have an option after the first five
years to continue the agreement for an additional five years. Second, I will
ask the new group to increase the commission to 11.5%. Although Levine offered
a higher commission than I expected, it doesn’t look good to settle on a whole
number. It will give the remaining partners the impression that we didn’t
bargain hard enough down to the last dollar.”

The
committee waited a few minutes for propriety and they called the delegation
back. Albert addressed them as follows:

“By
a majority vote, this committee has approved an understanding by which the new
company will become an affiliate of Finkel Nash, with two reservations. One, that
after the first five years of the affiliation, Finkel Nash is given the option
to renew the affiliation term for another five years. Second, we feel that the
rate of commission should be increased to 11.5%.”

Levine
was pleased that the two parties were so close to agreement, but for appearance
sake with the other founders he felt he had to make a counter offer. He said to
Albert, “Speaking for the founders, which I was authorized to do, we are
willing to include an option to extend the life of the agreement for another
five years. As for the commission rate, I understand that Finkel Nash came up
with the strange rate in order to convey the impression of hard bargaining. My
own suggestion is that we are willing to give an impression of even harder
bargaining by raising the commission to 10.75%.”

Albert
looked at the other directors and with a smile said to Abe Levine, “We trust
that you will always guide your young rebels in as capable a manner as you have
done today. We accept the terms and we will assign some of our better lawyers
to draft the agreement. They will sign and forward the agreement to Shulamit
for signatures.”

Abe
Levine started to work the next morning on his assignment. He called the head
of the Philadelphia branch of Telacomp and asked him to provide him with the
names of the leading commercial real estate brokers. The manager gave him the
phone and names of the two leading brokers in the city.

When
he reached an agent, he explained that he was acting on behalf of a new law
firm that wished to be located in the central area of the city. He needed six
floors of space for the firm and he was willing to pay the full rental. If the
broker could provide him with an entire building that could meet his needs, he
would be willing to consider purchasing it.

Levine
told him that he was a serious customer who had the means to buy or rent
quarters and he gave him the name of the Philadelphia branch manager of
Telacomp as a reference. The broker, realizing that an amount of a half million
dollars or more in commissions was at stake, lost no time in setting up an
appointment with Abe for the same afternoon. He promised to provide full
descriptions of available properties and prices.