Untitled Document

Pursuant to notice, a regular meeting of the General Assembly of the Minnesota State Bar Association was held on Friday, June 11, 2004, at the Duluth Entertainment Convention Center. President James Baillie called the meeting to order at 11:10 a.m.

1. Call to Order and Welcome
President Baillie welcomed all delegates attending the session and the 2004 MSBA Convention.

2. Memorials: Remembrance of MSBA members who have died during the past year
President Baillie asked all delegates to remember colleagues who had passed away, referring to a list appearing in the official meeting materials. He also asked delegates to observe a moment of silence for the recently deceased President Ronald Reagan.

3. Secretary's Report
Secretary Patrick Kelly announced that a quorum was present. He certified delegates to the General Assembly, and directed attention to a Rules and Calendar Committee Report distributed to delegates at the meeting.

4. Minnesota Judicial Panel
President Baillie noted that Minnesota Chief Justice Kathleen Blatz was unavailable to present the traditional "State of the Judiciary" address. He recognized representatives from three levels of the state court system for individual reports:

Minnesota Supreme Court: Justice Russell Anderson noted that the prior year had seen significant budget cuts, coupled with rising costs. These challenges came in the face of rising caseloads, with increases of some 700 percent over the past 25 years. While these factors threaten access to justice as well as the public defender system, Justice Anderson noted several positive developments: a children's justice initiative was being implemented in all counties, and the court system continued to implement technological innovations.

Minnesota Court of Appeals: Chief Judge Edward Touissaint noted that rising caseloads had made it increasingly difficult to issue decisions promptly. Despite this challenge, the court remained determined to maintain quality. The Court of Appeals was fortunate to have no vacancies during the prior year, and would continue to fulfill its role as the state's intermediate appellate court, he said.

Minnesota District Courts: Judge Dennis Murphy noted that the state court system was undergoing a change in its funding structure, with two districts now receiving all of their funding directly from the state. Some commentators had hoped this structure would mean more stable funding, but the state's budgetary concerns have affected court operations, he said. Judge Murphy noted that judicial vacancies have hurt some districts more than others, and thanked the MSBA for its efforts to secure adequate funding for the courts.

5. State of the Federal Judiciary
Chief Judge James Rosenbaum praised the federal court system for continuing to function well during a year that saw reduced budgets and high-profile discussions of federal sentencing guidelines. He reported on a new system for electronic filings, enhancements to the St. Paul federal courthouse, and planned new courtrooms elsewhere in the state.

6. Presentation of President's Award
President Baillie presented this year's President's Award to Dorsey & Whitney attorney Bricker Lavik in recognition of his long-time commitment to the legal needs of the disadvantaged.

7. Action on the Report and Recommendations of the Association Governance Task Force
President Baillie directed attention to this report as it appeared in the meeting materials. The report, which included proposed new Articles of Incorporation and Restated Bylaws, called for a restructuring of the governing bodies of the MSBA, as well as the formation of two new deliberative bodies: the Council and the Assembly. Meeting the previous day, the Board of Governors had approved the restated Articles of Incorporation, and adopted the Restated Bylaws with one amendment. President Baillie noted that, to become effective, the Articles of Incorporation would have to be approved in the same form by both the Board of Governors and the General Assembly. As the larger governing body, the General Assembly had the authority to adopt the Bylaws as contained in the original task force report, as amended by the Board of Governors, or as amended following its own deliberations.

President Baillie then recognized Phyllis Karasov, Co-chair of the Association Governance Task Force. Ms. Karasov noted that the Task Force had met with MSBA members and section representatives across the state as it reviewed the governing structure of the Association. After conducting this review, the Task Force drafted a report calling for the elimination of the Executive Committee, Board of Governors, House of Delegates, and General Assembly, replacing these groups with two new governing bodies. The composition, responsibilities, and authority of these proposed new bodies -- the Council and the Assembly -- appeared in the Task Force report attached to the meeting materials.

Ms. Karasov repeated President Baillie's report that the Board of Governors had approved the proposed new Articles of Incorporation, and that these Articles required the approval of both the Board of Governors and the General Assembly, in the same format, to become effective. In a separate action, the Board of Governors also approved an amended version of the Restated Bylaws, together with a recommendation that the General Assembly approve this amended version of the Restated Bylaws. The amendment to the Restated Bylaws would add a new seat to the Council reserved for a representative from the minority bars as described in Section 7.2(h). This amendment would also increase the size of the Council to 15, reducing the possibility of a deadlock vote.

Ms. Karasov then moved that the General Assembly approve the Articles of Incorporation and Restated Bylaws as amended by the Board of Governors. The motion carried.

8. Break
8a. Announcement of prize winners
Winners of prizes given in connection with the convention trade show were announced.

9. Pro Bono Presentation
President Baillie reviewed pro bono accomplishments during the 2003-04 bar year. At the beginning of his term, President Baillie met with the Legal Assistance to the Disadvantaged Committee and established 10 goals. One of those goals was to involve 500 new attorneys in pro bono activities, and to provide assistance in 1,000 new cases. President Baillie reported that this goal, along with each of the other goals, had been met or exceeded during the previous year. He praised the efforts of all volunteers, and directed delegates to a detailed report linked to the LAD Committee website.

President Baillie also noted that the chief judges had been asked to establish standing pro bono committees in each district, and to recognize attorneys within those districts who were leading the way in delivering pro bono services. He read the names of several such attorneys.

10. Report of the Legal Services Planning Commission
Justice Sam Hanson, who co-chaired Commission together with Judge Terri Stoneburner, provided delegates with an informational report. Despite the noteworthy contributions of Minnesota organizations, only 20 percent of the legal needs of low-income Minnesotans are being met, he said. Justice Hanson reported that the Commission issued a reconfiguration report in December 2003, and was developing a separate report, due in December 2004.

11. Passing of the Gavel
President Jim Baillie recognized incoming 2004-05 President David Stowman of Detroit Lakes.

12. Action on the Recommendation of the Rules of Professional Conduct Committee Relating to Rule 1.10(b) on conflicts screening
President Baillie recognized Rules of Professional Conduct Committee Chair Ken Kirwin and committee member Cindy Jesson. The two provided background on the report as it appeared in the meeting materials, but noted that, because of recent events, the report and recommendations had been pulled from the action calendar. Mr. Kirwin said that the committee may present a new report and recommendations during the 2004-05 bar year.

13. Action on the Recommendation of the Human Rights Committee, Diversity Committee, and Family Law Section relating to a constitutional amendment defining marriage
President Baillie recognized Caroline Palmer, Chair of the Human Rights Committee, and Diversity Committee member Phil Duran. The two noted recent developments across the nation related to gay marriage, including a proposed Minnesota state constitutional amendment that would have defined marriage as a union between one man and one woman. Ms. Palmer said that the MSBA had been instrumental in ensuring equal rights for gay individuals, and urged the Bar to take a similar role in opposing a state constitutional amendment banning gay marriage. Mr. Duran noted that there was no such amendment now before the Legislature, but said that such a proposal might be offered in future sessions, and asked the MSBA to take a stand opposing such an amendment. He told delegates that the three bodies sponsoring this recommendation were not asking the MSBA to take a position on gay marriage or civil partnerships, but rather to oppose amending the constitution in this manner.

President Baillie noted that because this recommendation came to the General Assembly from the Board of Governors and from individual committees, it did not require a motion or second. He opened the floor for speakers.

During the subsequent discussion, individual delegates addressed the advisability of the MSBA taking a position on this issue, as well the advantages and disadvantages of amending the constitution in this manner. Other speakers presented perspectives on marriage, child-rearing, and government involvement in all related issues.

Following discussion, a motion was made and seconded to strike one portion of the original recommendation; the revised recommendation, stated:

"Resolved: that the Minnesota State Bar Association opposes any effort to amend an amendment to the Minnesota Constitution to forbid the creation of legally-recognized relationships between persons of the same sex."

President Baillie then called the question to adopt the recommendation as amended. The motion carried.

President Baillie opened the meeting with a discussion of procedures for Action Calendar Item 4.04, relating to a recommendation from the Insurance for Members Committee. Recognizing that many Board members may have had prior relationships with one or both of the parties involved with this action item, the MSBA Executive Committee developed procedures intended to minimize confusion over disclosure or disqualification obligations. President Baillie directed attention to an Executive Committee memorandum distributed to members just prior to the meeting, which included the MSBA disclosure policy, applicable statutes, and a brief discussion of issues related to Item 4.04. He encouraged individual Board members to decide for themselves whether to disclose prior relationships, disqualify themselves, or abstain from voting. He noted that Executive Committee members Lorie Gildea and Sue Holden would be available to discuss the memorandum.

Annual Meeting of the Minnesota State Bar Foundation
President Baillie recognized Judy Harris Brown, vice chair of the Minnesota State Bar Foundation Board. The members of the Board of Governors then convened as members of the Minnesota State Bar Foundation for the Foundation's annual meeting to elect directors and transact other business coming before the Foundation. Ms. Harris directed attention to a brief report and summary of 2003-04 grants appearing in the meeting materials. She encouraged all Board members to contribute to the Foundation through their annual dues billings.

Ms. Harris then turned to the scheduled elections for five Foundation directors. Qualifications & Interest Statements for all five seats appeared in the materials distributed to Board members prior to the meeting. Ms. Harris called for new nominations; hearing none, she called for a vote on the slate of nominees. The following five nominees were elected:

1.02 Approval of minutes
A motion was made, seconded, and carried to approve the minutes of the April 16, 2004 meeting.

1.03 Treasurer's Report
Treasurer Sue Holden presented this report as it appeared in the meeting materials. She noted that the MSBA anticipated ending the fiscal year with a smaller deficit than originally projected.

1.04 President's Report
President Baillie recognized outgoing members of the Board of Governors, praising them for their commitment to the work of the Association. President-Elect David Stowman read the names of all outgoing Board members as Mr. Baillie presented plaques to those members in attendance.

Later in the meeting, President Baillie reported on several items of interest to the Board and to MSBA members, many of which had also appeared in an email distributed to all members. Highlights included:

2. Presentation of the Professional Excellence Award
President Baillie announced that the Bar's highest and most prestigious award was to be presented to two individuals who, while pursuing academic career paths, also remained deeply involved in efforts to improve the practice of law and professionalism. He recognized awardees Dean Harry Haynsworth, William Mitchell College of Law, and Professor Neil Hamilton, University of St. Thomas School of Law.

3. Recognition of Senior Counselors
President Baillie recognized individuals celebrating the 50th anniversary of their admission to the bar. He encouraged all Board members to attend a reception in their honor after the meeting.

4.01 Election of officers of the Association for fiscal year 2004-05
A motion was made, seconded, and carried to elect the following officers:

4.02 Election of at-large members to the Executive Committee
A motion was made, seconded, and carried to elect the following three nominees, each of whom had presented Qualifications & Interest Statements to the Board:

4.03 Action on the recommendations of the Real Property Law Section on proposed changes to the Real Property Title Standards
President Baillie recognized Lorens Brynestad, Co-chair of the Title Standards Committee of the Real Property Law Section. Mr. Brynestad presented the two proposed title standards as they appeared in the meeting materials:

· Explanation of Proposed New Title Standard No. 114: Intended to provide a reasonable limitation for title examination purposes on the duration of a lien contained in a probate decree or dissolution judgment or decrees similar to the limitation imposed by Title Standard No. 25 relating to mortgage liens.

Mr. Brynestad noted that, to become effective, the proposed title standards would have to be ratified by the Board, then approved by the Real Property Council at its meeting on the following day. A motion was made, seconded, and carried to ratify the two proposed Title Standards.

4.04 Action on the recommendation of the Insurance for Members Committee to remove any endorsement of MLM and endorse Liberty Mutual as the professional liability carrier
President Baillie reminded Board members of his comments at the beginning of the meeting regarding disclosure, disqualification, and abstention. He indicated that he intended to abstain, and recognized President-Elect Stowman to preside over this portion of the meeting.

President-Elect Stowman began by noting that the MSBA Insurance for Members Committee, in the 1980s, recommended the formation of Minnesota Lawyers Mutual to provide professional liability insurance for MSBA members. That recommendation came to be viewed as an endorsement. Following inquiries from other carriers seeking endorsement, the committee recognized that it had no formal policy to evaluate endorsement requests. It sought approval from the Board of Governors to evaluate professional liability programs and present a recommendation on which vendor would provide the best value to members. The Board granted this approval in December 2003.

President-Elect Stowman then recognized Tom Atkinson, Co-chair of the Insurance for Members Committee. Mr. Atkinson noted that, as part of its evaluation process, the Committee drafted a Request for Proposal (RFP), which was then submitted to several competing professional liability carriers. Three responses to the RFP were received and evaluated by the committee, which also retained the Chicago law firm of Tribler Orpett & Meyer for an independent evaluation and recommendation.

Based on these analyses, Mr. Atkinson said, the committee concluded that the proposal from Liberty Mutual best met the needs of the MSBA and its individual members. He highlighted portions of the Committee's report as it appeared in the meeting materials, and moved that the Board approve the Committee's motion that the MSBA endorse the professional liability insurance package offered by Liberty Mutual.

President-Elect Stowman recognized Clint Schroeder to speak on behalf of MLM. Mr. Schroeder distributed a letter signed by many past presidents of the MSBA indicating support for Minnesota Lawyers Mutual. Mr. Schroeder praised the performance of MLM over the years, and urged the Board to reject the Committee's proposal to endorse Liberty Mutual.

President-Elect Stowman next recognized R. Bertram Greener, acting CEO and Chairman of the Board for MLM, who spoke on behalf of MLM, and urged the Board to reject the recommendation of the Insurance for Members Committee.

Dan Vaughn, Vice President of Liberty International Underwriters, Inc., provided an overview of the professional liability product offered under the Liberty Mutual proposal, as well as similar insurance products offered by that carrier in other states.

President-Elect Stowman recognized Mitch Orpett of the Chicago firm of Tribler Orpett & Meyer, P.C. That firm had been retained by the Insurance for Members Committee to evaluate all the proposals. Based on these evaluations, the firm advised the Committee that the Liberty Mutual product offered the best overall protection and value for Minnesota lawyers.

President-Elect Stowman called for discussion and questions from the floor. During discussion, a Board member questioned whether a negative vote on the recommendation would mean that MLM would be endorsed by the MSBA. President-Elect Stowman ruled that if the Liberty Mutual endorsement failed, then the MSBA would have no endorsed carrier for professional liability insurance.

President-Elect Stowman then restated the motion to endorse Liberty Mutual. The motion failed.

A motion was then made and seconded to publish the report of the Insurance for Members Committee evaluating professional liability proposals, making the report available to law firms. The motion carried.

A motion was then made and seconded to endorse MLM's professional liability product. The motion failed.

4.05 Action on the recommendation of the Association Governance Task Force
President Baillie recognized Richard Pemberton, Co-chair of the Association Governance Task Force, to present the report and recommendations as they appeared in the meeting materials. In his report, Mr. Pemberton said that the Task Force began by looking at the structure of the Board of Governors, but later expanded that examination to include all aspects of MSBA governance. Based on that examination, the Task Force recommended that the existing governing bodies -- the Executive Committee, Board of Governors, House of Delegate, and General Assembly -- be disbanded and replaced with two new governing bodies. The Task Force report, distributed to all Board members and contained in the meeting materials, described the composition and authority of these two new bodies -- the Council and the Assembly -- and contained restated Bylaws and Articles of Incorporation required to implement the new governance structure. Mr. Pemberton expressed his belief that this new structure would better serve the needs of the Association without disenfranchising members, and turned the floor over to two members of the Task Force for additional comments.

Task Force member Tim Kuntz then provided a description of the proposed new Assembly. He said that the new governing body would provide representation for individual sections and districts, while allowing all members the right to speak before the Assembly. He highlighted several portions of the report as it appeared in the meeting materials, and described the proposed new governance bodies of the Assembly and the Council as providing a representative voice for all members.

Task Force Co-chair Phyllis Karasov then summarized the two motions contained in the report and before the Board of Governors, which called for amendments to the MSBA's Articles of Incorporation and Bylaws. The motions called for the Board of Governors to approve amendments to both the Articles and the Bylaws, and to recommend that the General Assembly, at its meeting on the following day, approve the proposed Bylaw amendments. The motion was seconded.

A motion was then made and seconded to eliminate one of the three members of the Council to be elected by and from the Assembly as described in Section 7.2(e), and to add one additional seat to be filled by a member of the state's minority bar associations as described in Section 7.2(h). The motion was seconded.

After discussion, a substitute motion was made that would retain all three "at large" designations in Section 7.2(e), but add a new seat reserved for a representative from the minority bars as described in Section 7.2(h). This motion would increase the size of the Council to 15, reducing the possibility of a deadlock vote.

President Baillie called for a vote on the motion to amend the main motion. The motion to amend passed.

Discussion turned to the main motion as amended. A motion was made and seconded to strike Section 4.8 of the proposed restated Bylaws, which would have removed members who failed to attend or arrange substitutes for two consecutive meetings. The motion failed.

President Baillie called the question on the main motion as amended. The motion carried.

4.06 Action on the recommendation of the Rules of Professional Conduct Committee regarding Rule 1.10b
Citing recent developments, committee chair Kenneth Kirwin indicated that this report and proposed petition to the Supreme Court had been withdrawn. He provided Board members with a summary of the issues, and indicated that the committee may present a proposal at a later date.

4.07 Action on the petition of the Animal Law Committee to become a section
Barb Gislason, Chair of the MSBA Animal Law Committee, presented this report and recommendation as it appeared in the meeting materials. That report provided background on the work of the Committee, a petition to become a section under MSBA bylaws, and proposed bylaws for the new section. The motion carried.

5. Consent Calendar
A motion was made, seconded, and carried to adopt the Consent Calendar as it appeared in the meeting materials. The calendar included the following:

5.01 Ratification of LawPAC Trustees
5.02 Action on the recommendation of the President-Elect regarding the 2004-05 Master Calendar
5.03 Action to approve the recommendations of the President-Elect regarding 2004-05 committees
5.04 Action on the recommendation of the General Practice Solo & Small Firm Section to amend its Bylaws
5.05 Action on the request of the Alternative Dispute Resolution Section to offer free section membership to students

6.01 Notice of nominations and elections
President Baillie directed attention to openings on five boards.

7. Adjournment
Hearing no new business, President Baillie adjourned the meeting.

Pursuant to notice, a regular meeting of the Board of Governors of the Minnesota State Bar Association was held on Friday, April 16, 2004 at the Minnesota CLE Center in Minneapolis. President James Baillie called the meeting to order at 12:45 p.m.

Bernard P. Becker Legal Services Awards: President Baillie presented the Bernard P. Becker Awards to Maureen O’Connell for her work on behalf of the Legal Services Advocacy Project; Mary Denise Russum for her 25 years of work at Legal Aid in Duluth; and Elizabeth Lopez, law student (class of 2005) at the University of St. Thomas School of Law, for her volunteer work at Migrant Legal Services in St. Paul.

David Graven Public Service Award: David Kennedy presented the 2004 award to Richard A. Beens of Felhaber, Larson, Fenlon & Vogt.

3.02 Approval of minutes of the December 5, 2003 meeting.
No corrections were indicated; the minutes were accepted.

3.03 Treasurer’s Report
Susan Holden, Treasurer, summarized the information that had been distributed. As of February 29, revenues and expenses were on budget and compare very favorably to last year at the same time.

2. 2004 Convention -- Register Now
President Baillie introduced Cheryl Prince, Co-Chair of the Convention Committee, who urged Board members to attend the Convention on June 9-11 and to bring their families to enjoy the many things that Duluth has to offer. President-elect David Stowman noted that the convention has been an integral part of his professional life. Registration forms were made available and collected.

3.04 President’s Report
President Baillie commented on the following items:

4.01 Election of MSBA representatives to outside boards
President Baillie announced that since the number of nominations equaled the number of nominated positions, the previously submitted nominees would be accepted if no other nominations were put forth at this meeting. After hearing no other nominations, Baillie declared the nominations closed and the following individuals were selected as MSBA representatives to those outside boards:

d) Central Minnesota Legal Services – Patrick O’Donnell and Heidi Wolf Thoennes

4.02 Action on the Recommendation of the Legislative Committee regarding the Restructuring of LawPAC
President Baillie introduced Susan Holden, Chair of the Legislative Committee, and noted that the Executive Committee recommended approval of this proposal. Ms. Holden indicated that Julian Zweber, Chair of the LawPAC Trustees, would join her in making the presentation. Ms. Holden reviewed the proposed modifications, which are designed to help the MSBA better raise money to fund LawPAC. Ms. Holden noted that the current trustees supported the changes and that the MSBA obtained a legal opinion from John Knapp who found them legally sound. Ms. Holden moved approval of the revised LawPAC Constitution and acceptance of the report included with it. President Baillie invited Julian Zweber to comment and thanked him for his work on the revision process. Mr. Zweber urged support for LawPAC and for the expansion of the MSBA’s grassroots legislative efforts, and asked Board members to fill out the pledge statement to show their support before the MSBA goes out to the general membership. A motion was made to allow the MSBA President and President-elect to either serve as trustees or to appoint a designee. The motion was accepted as a friendly amendment. The main motion then passed unanimously.

Mr. Baillie asked for pledge statements, including his own, to be collected and encouraged other Board members to made pledges.

4.03 Action on the Recommendations of the Judicial Elections Committee
President Baillie noted that the Board considered some of the issues at its December 2003 meeting but that action on the report, with the exception of one recommendation, was indefinitely postponed at that time. Mr. Baillie introduced Mark Gehan, Chair of the Committee, who summarized the history of the discussion to date and indicated that after further discussion and debate, Recommendations C.3, C.6, and Section D again are being recommended for adoption. Mr. Gehan noted that the Minnesota Supreme Court Advisory Committee had issued a lengthy report containing recommendations that addressed (and are nearly congruent with) the Judicial Elections Committee’s recommendations C.3 and C.6. Mr. Gehan then moved adoption of Section D of the original Committee report indicating that it might be appropriate to forward the C.3 and C.6 portions to the Supreme Court Advisory Committee. He also noted that by a joint resolution of the Conference of Chief Judges and the Minnesota District Judges Association, they recommend adoption of the Judicial Election Committee’s recommendations. The motion to adopt Section D was carried.

4.04(a) Operations Committee Recommendations for 2004-05 General Fund Budget
President Baillie introduced Karna Peters, Co-Chair of Operations Committee. Ms. Peters highlighted the following items from the Operations Committee Report: reserves were up in 2003-04 due to staff savings and increased investment income; a dues increase of $5; a staff increase of 1.75 FTE for a pro bono coordinator and a practicelaw.org director; and a request that Executive Committee explore hiring a full-time staff person to serve as lobbyist. Upon motion made and seconded, the proposed budget passed.

4.04(b) CLE Board Recommendations for 2004-05 CLE Budget
President Baillie introduced Ronald Peterson, Chair of the MCLE Board of Directors, who recommended adoption of the CLE budget for 2004-05. After brief discussion, the motion passed.

4.05 Action on the Recommendation of the Membership Committee regarding Law Faculty Membership
President Baillie introduced Eric Hansen and Kari Hainey of the MSBA Membership Committee, who presented a recommendation to amend the MSBA bylaws to allow for a reduced membership fee for law school faculty. Both the HCBA and RCBA have reviewed this proposal, which is structured so that faculty members would be members of the district in which the law school is located. Mr. Hansen gave a brief history of the committee’s efforts, noting that (1) this is part of a broader Membership Committee effort to increase market penetration, (2) this is first step in efforts to strengthen the ties between law school communities and the MSBA, and (3) this is a revenue-neutral proposal for the HCBA and RCBA. A motion was made to adopt the recommendation. During discussion it was noted that the proposal does not include adjunct faculty and Mr. Baillie read a statement from a member of the 18th District who said that he would not support the proposal because it does not include membership for all law faculty at postsecondary institutions in Minnesota, only the four law schools. The motion carried.

4.06 Action on the Recommendation of the Human Rights Committee, Diversity Committee, and Family Law Section regarding Minnesota’s Anti-Marriage Amendment
President Baillie noted the Board is being asked to do one of the following: (1) recommend to the General Assembly that it approve the resolution, (2) recommend the General Assembly oppose this resolution or (3) send the resolution to the General Assembly with no recommendation. Mr. Baillie agreed to extend the privileges of the floor to MSBA members who are not members of the Board, depending on the number of people who might be in that category; he gave preliminary approval two people who previously contacted him. He then introduced Caroline Palmer, Chair of Human Rights Committee and Phil Duran, a member of the Diversity Committee. Ms. Palmer urged approval of the resolution while Mr. Duran noted that endorsement of the resolution would not mean that the MSBA is taking a position on the question of what constitutes marriage; he also noted other groups support similar resolutions, including the ABA, HCBA and RCBA. Mr. Baillie recognized several speakers who spoke to the resolution. During discussion, a point of order was raised regarding whether the speaker was speaking to the actual resolution or to what is perceived to be potential result; President Baillie overruled the point of order. The decision was appealed and the decision of the chair was affirmed. After further discussion, the previous question was moved and seconded. The motion carried.

The main motion was approved on a voice vote; a call for division resulted in the motion carrying based on an actual count of 31 in favor and 12 opposed.

4.07 Action on the Recommendation of the Insurance for Members Committee regarding Personal Lines Vendor (Home and Auto Products)
President Baillie introduced Michelle Mack, Co-Chair of Insurance for Members Committee, who moved the recommendation to change the personal lines provider from Chubb Insurance to Liberty Mutual, effective immediately. There was no discussion and the motion carried.

4.08 Action on the Petition of the Animal Law Committee to become a Section
President Baillie noted that this item was moved to the calendar for the June meeting.

5.01 Action on the request of the following sections for an increase in dues as outlined:

Section	Category(s)	2003-04 Dues	2004-05 Dues
Business Law	Attorney	$15.00	$20.00
Criminal Law	Student	$15.00	$0
Appellate Practice	Student	$10.00	$5.00
Communications	Student	$25.00	$0

6.01: Report of the Association Governance Task Force
President Baillie introduced Richard Pemberton and Phyllis Karasov, Co-Chairs of the Association Governance Task Force and Tim Kuntz, Task Force member. Mr. Pemberton highlighted some of the significant changes including eliminating the General Assembly and the House of Delegates, doubling the size of the Executive Committee (to be called the Council), increasing the representation of minorities in the new body to be known as the Assembly, and decreasing the proportionate representation of HCBA and RCBA. Mr. Kuntz spoke about the new Assembly’s composition and role, while Ms. Karasov spoke about the Council. The Assembly will have five committees where a lot of the day-to-day work will be done; it is expected that the Assembly will give great deference to the committee decisions. If accepted at the June meeting, the new structure will go into effect effective July 1 with some modifications designed to allow for an orderly transition to the new structure at the 2005 Convention. Association Governance Task Force members will be meeting with sections and district bars to explain the new structure to as many people as possible before the June meeting; the Task Force also will meet at the Convention and will invite all Convention participants to ask questions at that meeting. Mr. Pemberton invited all Task Force members to come forward and they answered questions from Board members, clarifying that (1) the Assembly would meet four times per year while the Council would meet at least nine times per year, (2) each district bar will have one representative on the Assembly for every 500 members, but not less than one; (3) law-related organizations that are specified in the bylaws will continue to have representation; and (4) the 21 district bars will be able to elect four district representatives from the Assembly to serve on the Council. President Baillie thanked the Task Force and noted that the proposal requires careful attention by Board of Governors and all Association members prior to the discussion and vote on it in June.

6.02 Report on the Legislative Session
Legislative Representative Lloyd Grooms noted that the MSBA began the legislative session with three initiatives from the Real Property, Probate & Trust, and Business Law Sections. The first two have passed and will become law; the Business Law item is on the House floor awaiting action and in Senate Finance so may still pass. In terms of public defender funding there is a disagreement between House and Senate which needs to be resolved in conference committee, the House version calls for a decrease in legal aid funding. The Legislature will adjourn on May 17 per the Minnesota Constitution; whether there will be a special session is an open question. There was an effort to remove the incumbency designation for judges; although this notion has been defeated for now, it may not be completely dead until end of session. There are five or six different constitutional amendment proposals on the floor of either the House or Senate.

6.03 Notice of election of three MSBA Executive Committee At-Large Members
President Baillie noted that two of three currently serving are eligible to continue and that the election will be held at the June 10 Board meeting.

6.04 Notice of Minnesota State Bar Foundation elections
President Baillie noted that directors will be elected to the Bar Foundation at the June 10 Board meeting.

7. New Business
President Baillie introduced Dan Tyson from the Legal Assistance to the Disadvantaged Committee, who asked for approval of an annual award to be established to recognize pro bono providers based on four proposed criteria. The motion carried.

8. Future Meetings
Thursday, June 10, 2004
Friday, June 11, 2004 -- General Assembly

9. Adjournment
Upon motion duly made and seconded, the meeting was adjourned at 4:00 p.m.

Pursuant to notice, a regular meeting of the Board of Governors of the Minnesota State Bar Association was held on Friday, December 5, 2003 at the Minnesota CLE Center in Minneapolis. President James Baillie called the meeting to order at 2:15 p.m.

1. Presentation of the Mary Alice Gooderl Community Service Award
Patrick Kelly, Secretary, presented the Gooderl Award to Robert Foster for his work on behalf of Eastside Neighborhood Services in Northeast Minneapolis. The award includes a $500 stipend which Mr. Foster designated for Eastside Neighborhood Services.

2.02 Approval of minutes of the September 12, 2003 meeting
No corrections were indicated, the minutes were accepted.

2.03 Treasurer’s Report
Susan Holden, Treasurer, summarized the information that had been distributed. As of October 31, revenues and expenses were on budget.

2.04 President’s Report
Mr. Baillie updated the Board on a number of items, including:

3.01 Action on the recommendation of the Insurance for Members Committee requesting authority to formalize the endorsement process for professional liability insurance
Noting that he has a potential conflict, President Baillie turned the meeting over to President-Elect David Stowman. Tom Atkinson, Co-Chair of the Insurance for Members Committee, summarized the background on this issue and presented a revised resolution for adoption by the Board of Governors. Mr. Stowman noted that the Executive Committee is recommending adoption of the revised motion. A motion was made and seconded to approve the motion of the Committee. The motion carried.

3.02 Action on the recommendation of the Judicial Elections Committee
Deferred to the foot of the calendar.

3.03 Action on the recommendations of the Legislative Committee
Mr. Baillie called on Sue Holden, Chair of the Legislative Committee, to present the recommendations of the committee.

In addition to the proposals the Legislative Committee is presenting, two proposals are being developed: a recommendation from the ADR Section for revision of the Uniform Mediation Act as adopted in Minnesota; and a recommendation from the Family Law Section related to the need for a quit claim deed in certain circumstances involving dissolution, is under consideration by the Real Property Section.

Ms. Holden presented the motion of the Legislative Committee to support proposals from the Business Law Section, Executive Committee, Probate & Trust Law Section and Real Property Law Section, and recognized various representatives to discuss the specifics of each proposal:

A final proposal was forwarded by the Legislative Committee without recommendation. The proposal from the Human Rights Committee opposes any legislation supporting the death penalty. Caroline Palmer, Committee Chair, presented the proposal, noting the Criminal Law Section also supports the resolution. Members of the Board discussed the proposal, particularly whether or not it was appropriate for the MSBA to take a position and if so, is the Board of Governors the appropriate body.

A motion was made and seconded to amend the motion striking all current language and replacing it with new language that was distributed. (A copy is included with the meeting materials.) It was noted that the new language has been adopted by the ABA. On behalf of the Human Rights Committee, Ms. Palmer did not support the motion. Following discussion, a motion was made and seconded to amend the substitute motion by changing language in the opening paragraph. The motion to amend the substitute motion failed.

A motion was made and seconded to amend the amendment with the statement, “The MSBA has not yet had an opportunity to review the issue with its membership and thus does not take a position on the issue at this time.” The amendment was accepted as friendly by the maker of the first motion. The motion to amend failed.

A motion is made that the Legislative Committee allocate no lobbying time in support of this resolution. The motion failed for lack of second.

3.04 Action on Recommendation of Rules of Professional Conduct Committee
Ken Kirwin, Chair of the Rules of Professional Conduct Committee, reviewed the current status of the amendments to the Rules adopted at the Convention and summarized and moved the proposed amendments to Rules 1.6, 1.13, and 7.4. The motion was seconded. Following discussion, it was agreed to separate consideration of Rule 7.4 from Rules 1.6 and 1.13. The motion to amend Rules 1.6 and 1.13 was carried.

James Vander Linden, Dean of Academy of Certified Trial Lawyers of Minnesota, presented the following substitute amendment to Rule 7.4 (d) on behalf of the ACTLM and the Civil Trial Certification Council:

The RPC Committee’s amendment to 7.4 was opposed by ACTLM and the MSBA certification councils, as well as the State Board of Legal Certification. A motion was made and seconded to substitute the language presented by ACTLM. The Board discussed the issues addressed in this rule, primarily the use of the word “specialist”. A motion was made and seconded to postpone indefinitely. The motion failed.

3.05 Review and Possible Action on the recommendation of the Executive Committee regarding a Commission on Sentencing Issues
Mr. Baillie summarized the history behind this recommendation and the discussions that have been held regarding whether or not this is an area where the MSBA should be involved. There being no objection, Mr. Baillie indicated that the Commission would be formed.

3.06 Action on staff recommendation regarding the location of the 2005 convention
Tim Groshens and Kammi Stout of the MSBA staff reviewed the research that had been completed and the reasons behind the recommendation to hold the 2005 Convention in Brainerd. A motion was made and seconded to approve the recommendation. The motion carried.

3.02 Judicial Elections Committee
Mark Gehan, Chair of the Judicial Elections Committee, reviewed the work of the committee and moved the Committee Report and the Minority Report for approval by the membership. In addition, noting that the Report recommends statutory and regulatory changes, also moved to refer the Report to the Legislative Committee.

A motion was made and seconded to separate Item C.4. “Candidates in contested judicial races should be at the top of the judicial ballot.” The motion carried.

A motion was made and seconded to separate Item C.1. “Minn.Stat. 490.121 should be amended to permit judges to serve out their term of office regardless of reaching the current mandatory retirement age of 70.” The motion carried. Following discussion, including the positions of the Conference of Chief Judges and Minnesota District Judges Association, a motion was made and seconded to defer action on Item C.1. indefinitely. The motion carried.

A motion was made and seconded that consideration of the remainder of the Report and the Minority Report be postponed indefinitely. The motion carried.

4. Consent Calendar.
A motion was made and seconded to approve the Consent Calendar. The motion carried.

5. Adjournment
Upon motion duly made and seconded, the meeting was adjourned at 5:15 p.m.

Pursuant to notice, a regular meeting of the Board of Governors of the Minnesota State Bar Association was held on Friday, September 12, 2003 at the Crowne Plaza in Minneapolis. President James Baillie called the meeting to order at 1:45 p.m.

President Baillie recognized Judy Rehak, Administrative Services Director for the Minnesota Supreme Court. Ms. Rehak notified the Board that the Court has granted a petition seeking an open selection process for the position of administrator of the state no-fault arbitration board. The Court will appoint a committee, to be chaired by retired Justice John Simonett, to oversee the selection process, which will be completed by the end of the calendar year. Members interested in serving on the committee were urged to contact Tim Groshens.

Presentation of Elmer H. Wiblishauser Author’s Award
President Baillie presented the Elmer H. Wiblishauser Author’s Award to the Hon. Bernard Boland. Lee Hanson accepted the award for Judge Boland.

1.02 Approval of Minutes of June 19, 2003 Meeting
There were no corrections to the minutes. Absent corrections, the minutes of the June 19, 2003 meeting were approved.

1.03 President’s Report
President Baillie gave the president’s report. He noted that he would be speaking to students at the area law schools this fall. He offered to attend district bar meetings throughout the state and noted that the other officers of the Association are also willing to attend district bar meetings.

2.01 Action on the recommendation to accept the audit of the MSBA General Fund and MCLE Fund for the year ending June 30, 2003
Treasurer Sue Holden presented the audit of the MSBA General Fund and MCLE Fund for the fiscal year ending June 30, 2003 prepared by Wilkerson, Guthmann + Johnson, Ltd. Treasurer Holden reported that the Executive Committee was recommending acceptance of the report and moved its adoption. The motion carried.

2.02 Election of representatives to outside boards
There being only one nominee for each position, the following were appointed without election:

Lawyers Professional Responsibility Board: Judith Rush, Ramsey County, and Vincent Thomas, Hennepin County

There was a contested election for the open position on the Lawyer Trust Account Board. The candidates were Bill L. Thompson, St. Louis County, and Charles W. Reynolds, Polk County. Mr. Reynolds was elected on a vote of 30-23.

2.03 Action and recommendation to adopt the Report and Recommendations of the MSBA Task Force on Business Law Pro Bono, including a recommendation to provide funding of $10,000
President Baillie relinquished the chair to President-elect David Stowman. Mr. Baillie presented the report of the Business Law Pro Bono Task Force and moved its adoption with an amendment recommended by the Executive Committee to increase the funding to $15,000. The motion was seconded and carried. The report was adopted as amended.

2.04 Action on the recommendations of the Legislative Committee regarding the establishment of subcommittees and additional members
President Baillie resumed the chair. Sue Holden presented the resolution and report of the Legislative Committee regarding the establishment of subcommittees and the appointment of subcommittee members who are not members of the Board of Governors. Ms. Holden moved adoption of the resolution and report. The motion carried.

2.05 Report of the Judicial Elections Committee
Mark Gehan, chair of the Judicial Elections Committee, reported on the work of the Committee. The Committee expects to submit its final report and recommendations to the Board for action at the December 5, 2003 meeting.

2.06 Report of the Association Governance Task Force
Mike Ford, a member of the Association Governance Task Force, reported on the work of the Task Force. The Task Force expects to submit its final report and recommendations to the Board at the April 2004 meeting.

3.01 Action on the recommendation of the Probate and Trust Law Section to revise its bylaws

3.02 Action on the recommendation of the Family Law Section to revise its bylaws

5. Future Meetings
President Baillie noted that future meetings of the Board are scheduled for Friday December 5, 2003; Friday, April 16, 2004; and Thursday, June 10, 2004.