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June 6-12, 2019
City is reaping millions from Cecil Commerce Center deal PAGE 3
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JACKSONVILLE
Record & Observer Jacksonville tech firm led by Craig Mandeville sets sights on $75 million in revenue.
JACKSONVILLE
Cra-Z-Art parking indicates 319 jobs
Record & Observer ‘WE SHOT OFF LIKE A ROCKET’ Manufacturing and distribution center updating its plans.
JACKSONVILLE
Record & Observer BY KAREN BRUNE MATHIS EDITOR
JACKSONVILLE
Jobs, space, build-out and the name are being nailed down for the Cra-Z-Art manufacturing and distribution center under development in North Jacksonville. The Imeson Park center needs 319 parking spaces for permanent and seasonal employees, and almost two-thirds of the 300,000-squarefoot building will be used for warehousing, while a third is for manufacturing and assembly and 2.5% for offices. Those details are included in landowner VanTrust Real Estate LLC’s application for a parking deviation to increase the maximum number of off-street parking spaces from 165 to 319. A hearing is scheduled at 10 a.m. Friday with the city zoning administrator at City Hall. Cra-Z-Art has not announced how many jobs it will create, although 21 are tied to City Council legislation approving incentives for the project and will pay an average $53,298. The building is at 10501 Cold Storage Road. No opening date has been announced. The city issued a permit in April to build the structure at a cost of $11.74 million. On May 29, the city issued a permit to build-out the interior at a cost of $2.56 million. Cra-Z-Art, a division of LaRose Industries LLC, sells activity, art and school supplies, toys and stationery products.
Record & Observer Photo by Dede Smith
Craig Mandeville is the president and founder of Forcura LLC, a company that manages the flow of information for health care patients.
BY KAREN BRUNE MATHIS EDITOR
S
o, who wants to start a tech company and shoot to $7.1 million in revenue in six years, and probably $12 million in seven? Craig Mandeville did, and he isn’t stopping there. His goal as president and founder of Jacksonville-based Forcura LLC is to reach $75 million in revenue in another 2½ years. The mission for Forcura – perhaps one hears it as “for a cure” – is to improve
patient outcomes and its vision is to become the standard communication platform for all post-acute health care. In brief, the company manages document workflow and secure communication for post-acute care providers. Say, for example, mom is discharged from the hospital after heart surgery and home health care professionals immediately need to tend to her recovery and well-being. The flow of health care information from the hospital to the home and back could be cumbersome, incomplete, slow or confusing.
The Mathis Report: Former Sears warehouse on market PAGE 3 The Basch Report: Operating ratio is the scorecard for CSX PAGE 4 The Mendenhall Report: JAA trying to land West Coast flights PAGE 5
That’s the connection Forcura makes. “We automated that whole round-trip flow of information,” Mandeville said. Forcura began in February 2012, when Mandeville was 31. He already had developed and sold a tech-based company since his move to Jacksonville in 1999 from Austin, Texas. The Forcura idea was sparked by his wife, a home health agency employee who managed patient discharge. “She would come home at night and talk about how inefficient that whole SEE FORCURA, PAGE 8
KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
THE SAILER REPORT
Expert: Home prices up, but there’s no bubble Median price is $225,000 in April. PAGE 10 VOLUME 1, NO. 53 • ONE SECTION
WHAT’S TRENDING
Page 2 • Thursday, June 6, 2019
Jacksonville Daily Record/Jacksonville Record & Observer
Big news doesn’t break just on Thursday. Here’s a look at some of the top stories published over the past week online at JaxDailyRecord.com and in the Jacksonville Daily Record that you may have missed.
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The proposed Kings Avenue Station is adjacent to the Kings Avenue Parking Garage and Interstate 95 near San Marco.
DEVELOPMENT
Kings Avenue Station could rise Developer Mike Balanky says he hopes to break ground by mid-2020 on Kings Avenue Station, a building he proposes in the Downtown Southbank area that could range from six to 40 stories. “We are confident we will build office or mixed-use residential and we hope to have a decision this year,” said
Balanky, president and CEO of Jacksonville-based Chase Properties. “We think it’s a great time,” he said. “We are exploring all opportunities.” The site is at 1201 Kings Ave., next to the 1,650-space Kings Avenue parking garage and the Hilton Garden Inn and Homewood Suites hotels.
GROCERY STORES Whole Foods on the way to Jacksonville Beach There’s a hole in the Jacksonville Beach Pablo Plaza shopping center where Office Depot used to be and Whole Foods Market intends to fill it. The natural and organics market is preparing to build the $3 million store at 2050 S. Third St. It will be the grocer’s second area location. The first opened in Mandarin in 2008.
A Whole Foods spokesperson said in a statement that the company had no additional information to share but would be in touch when opening details are available. Whole Foods will build a 34,400-square-foot store, according to a site plan by landlord Regency Centers Corp. and a Jacksonville Beach building-permit application.
ENTERTAINMENT Jacksonville venue attendance strong The Florida Theatre was No. 1 in 2018-19 among venues up to 2,000 seats, according to the VenuesNow trade publication. Attendance at more than 99 shows was 115,910. Two other Jacksonville venues also ranked No. 1. Daily’s Place led the 5,001-10,000 capacity category, with attendance of 105,324. VyStar Veterans Memorial
Arena was No. 1 in the 15,001-30,000 category, with attendance of 87,769. “The bigger picture for our city is that Jacksonville has three of the No. 1 venues in the six categories, and no matter what size venue you’re talking about, that helps Jacksonville,” Florida Theatre President Numa Saisselin said.
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POSTAL INFORMATION To find more business events or to submit your event to the the business calendar, visit jaxdailyrecord.com/calendar. Council orientation: City Council orientation for new members – and open to the public – is the rest of this week at City Hall. Wednesday was Day One about mandatory Sunshine Law training. Today, Day Two, is parliamentary procedure, budget and key department introductions 8 a.m.-5 p.m. in the council chamber. Day Three on Friday will be public notice and records management for executive council assistants from 8 a.m.12:30 p.m. in the Lynwood Roberts Room. Also on Friday, new council members will hear about community engagement from 9 a.m.-3 p.m. at the Jacksonville University Davis College of Business at 2800 University Blvd. N. For information, contact council director Cheryl Brown at (904) 630-
1452 or Margaret Sidman at (904) 255-5055. JAXUSA Partnership: Jacksonville’s Smart Region is the topic at the JAXUSA Partnership quarterly meeting July 30. Panelists Jacksonville Transportation Authority CEO Nat Ford, North Florida TPO Executive Director Jeff Sheffield and JEA CEO and Managing Director Aaron Zahn will discuss Jacksonville’s future with smart sensor technology, autonomous vehicles and more. The location is the Hyatt Regency Jacksonville Riverfront. Individual tickets are $50-$75. Check-in is 11:30 and the program starts at noon. To RSVP, call 366-6600 ext. 7788.
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Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, June 6, 2019 • Page 3
City reaping millions from Hillwood deal Development in AllianceFlorida at Cecil Commerce Center triggering “profit events.” BY KAREN BRUNE MATHIS EDITOR
Dallas-based developer Hillwood paid the city $1,087,243 for the fourth-quarter sale of the JinkoSolar building in AllianceFlorida at Cecil Commerce Center to an investor. That boosts Hillwood’s total profit-sharing payments to the city to almost $4 million. Hillwood Senior Vice President Dan Tatsch said the “profit event” was driven by the company’s sale of the building at 4660 POW-MIA Memorial Parkway. H i l lwo o d built the 407,435-square-foot structure as a speculative development, but it quickly was leased by solar-panel maker JinkoSolar and furniture distributor Industry West. Hillwood sold the building Dec. 19 for $30.7 million to Richardson Logistics Assets LLC. The payments stem from the 25-year Master Disposition and Development Agreement made in 2010 between the former Jacksonville Economic Development Commission and Hillwood. The agreement calls for Hillwood to build-out AllianceFlorida on about 4,499 acres of city property, the former Naval Air Station Cecil Field, off Normandy Boulevard and 103rd Street in West Jacksonville. It is designed for the city to
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Hillwood Senior Vice President Dan Tatsch says the company has developed about 2.92 million square feet of space at AllianceFlorida at Cecil Commerce Center.
share in the profits. As the master developer, Hillwood typically secures the tenant, buys the land from the city, develops the project and then sells the property to an investor. The city receives 10% of the profit proceeds for industrial space and it will be 50% for mixeduse development. Among other profit-sharing payments, Hillwood paid the city almost $1.53 million for the sale to investors of the General Electric Oil & Gas building and $1.37 million for the sale of the Amazon. com distribution center. Hillwood sold the 510,000-square-foot GE Oil & Gas valve-manufacturing plant in February 2015 for $57.6 million. It had been built speculatively and credited for attracting the factory. Hillwood sold the 1 millionsquare-foot Amazon.com center in January 2018 for $95.5 million. Hillwood also sold a tract to
FedEx Ground Package System for its facility. Tatsch said previously the checks quantify the success of the concept. “When those checks happen, it means we are all doing something right.” The agreement was effective Sept. 15, 2010, with an initial term of 10 years. Hillwood is required to meet benchmarks, but extended those twice, at a cost of $500,000 each time, during the recessionary economy. The city said Hillwood has completed its benchmark performance goals before the 10th anniversary. It said the most significant benchmark goal was completing 2 million square feet of new development by Sept. 15, 2020. Tatsch said Hillwood has developed about 2.92 million square feet at AllianceFlorida, comprising Wayfair, Amazon.com, GE Oil & Gas and JinkoSolar/Industry West. He said the city also gives Hillwood credit for development completed on land it sold to other developers, which adds the 290,000-square-foot FedEx Ground Package System Inc. distribution center. That boosts the total to 3.21 million square feet. The city can extend the agreement for three additional five-year periods. Hillwood can request to exercise the first extension before September 2020. That term would expire in September 2025 and require an additional 2 million square feet of development. “There have been some preliminary discussions about moving forward but nothing of substance
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to date,” said city spokesman James Croft, assistant director of public affairs. Tatsch said that over the past few months, Hillwood and the city have mentioned that renewal discussions probably will begin by early next year. In March 2018, the City Council Auditor’s Office said the city has received more than $4.3 million in revenue since it entered into the development agreement with Hillwood. As the master developer, Hillwood must file quarterly activity reports with the city. Last week it filed its fourth-quarter report, which has a longer deadline than the first three quarterly assessments. Hillwood said that in addition to responding to general requests for information from prospects and brokers in the fourth quarter, it: n Executed a long-term lease with Wayfair Inc. for a 1,012,567-square-foot fulfillment center along 103rd Street next to the Amazon.com fulfillment center. Hillwood bought the site Dec. 20 from the city. By year-end, it was cleared of trees and mass grading began. n Sold the 4660 POW-MIA Memorial Parkway building to an institutional investor. The structure was built speculatively but fully leased upon the sale to JinkoSolar USA for a solar-panel assembly plant and to Industry West for furniture distribution. n Continued to track the progress of permit applications submitted in the third quarter for Parcels H-I. Permits included wetlands, stormwater and site-
clearing. Hillwood filed plans with the city in September 2018 seeking civil plan review to clear a site for a 1.5 million-square-foot warehouse on Parcels H and I near POW-MIA Memorial Parkway. No tenant is identified. Tatsch said previously that Hillwood is permitting the parcels to allow site-clearing and mass grading, “all with the goal of shortening the site’s ultimate delivery timeline for a prospect, should one materialize.” While not reflected in the fourth-quarter report, Hillwood also is proposing another speculative building. Hillwood proposes the 450,000-square-foot Building A-2 in the 13000 block of 103rd Street next to the Wayfair distribution center under development. A site plan shows the structure backs up to the GE Oil & Gas valve plant. Tatsch said construction of the speculative building will depend on how quickly other warehouses lease up around Northeast Florida. “We have no near-term plans to start another spec building,” Tatsch said. “We feel there’s enough spec space either on the ground or under development,” he said. Still, Tatsch said, Hillwood is monitoring market conditions. “When they change in such a way that we do feel it’s prudent to start another spec building, we’ll do so,” he said. KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
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Jacksonville Daily Record/Jacksonville Record & Observer
THE MATHIS REPORT
Former Sears warehouse is available for lease mercial real estate company, is the leasing broker.
Graham & Co. seeks permit in St. Johns
KAREN BRUNE MATHIS EDITOR
The 734,544-squarefoot facility in North Jacksonville is in “great shape.” LBA Logistics LLC is marketing for lease the 734,544-square-foot former Sears warehouse at 1 Imeson Park Blvd. in North Jacksonville now that Sears consolidated its operations to Ocala. “It’s in great shape,” said LBA Logistics LLC Principal David Thomas. Innovel Solutions Inc., part of Sears, sold the warehouse in April 2018 to 1 Imeson Park Blvd LLC, part of LBA. The structure was built in 1990 on 59 acres. Thomas said the space probably would be divided for two to four tenants. Rents have not been determined. Luke Pope, executive vice president of the JLL com-
Graham & Co. LLC applied to the St. Johns River Water Management District for a permit to develop a 500,864-square-foot distribution center and stormwater management system in St. Johns County. The site is at 3900 Deerpark Blvd., west of Interstate 95 and north of Florida 207. On plans it is called the First Coast Distribution Center. Listing agent Bryan Bartlett, senior vice president and principal of Newmark Phoenix Realty Group, said no tenant has been signed. Graham & Co. is preparing the site should a user be found. It can be divided into space for a minimum 100,000-square-foot user. “This is a very good sign,” said St. Johns County Director of Economic Development Melissa Glasgow. “Our available space is practically zero and that is the number I am concerned about.” Market reports show a 2% or lower vacancy in St. Johns County industrial space. KMATHIS@ JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
INDUSTRIAL NOTES Sysco to Northwest Jacksonville: The city issued a permit for Stellar Group Inc. to build the $11 million expansion in Northwest Jacksonville for Sysco International Food Group Inc. The project, at 3100 Hilton St., comprises expansion of the cooler, freezer and dry warehouse as well as the addition of a cold dock and expansion of the office area. The project is 114,643 square feet. A mobility fee calculation certificate shows that Sysco International Food Group plans to expand the existing 195,724-square-foot warehouse on 16.33 acres. UPS in Southside: The St. Johns Water Management District is reviewing a permit application for an expansion of parking to 340 spaces and truck parking for United Parcel Service Inc. on 18 acres at 9431 Florida Mining Blvd. E. in South Jacksonville. Consolidated Design of Tallahassee is the project engineer. The UPS center was known as Project Danville in City Council legislation adopted Jan. 22. UPS proposes to hire 87 employees at an average annual salary of $57,540 by year-end 2022. That doesn’t mean UPS won’t hire more employees at lower wages. The project is described as a $50 million investment. The 244,000-squarefoot building formerly housed Ranbaxy Pharmaceuticals and is owned by Dubow/ Shad Road Limited Partnership. Warehouse Rentals in Westside: Warehouse Rentals LLC paid $1.6 million for property in West Jacksonville for a warehouse development at southeast Imeson and Pritchard roads. It bought the land from Jacksonville-based Imeson Holdings LLC, which is led by John J. “Jack” Allen. Warehouse Rentals wants to develop two 189,063-square-foot warehouses at a construction cost of $11.5 million on the 50.1-acre site.
TRUaire expansion in NorthPoint: The city issued a permit for the foundation construction for a 54,300-square-foot addition for TRUaire at 12128 New Berlin Road by Pattillo Industrial Real Estate. Dana B. Kenyon Co. is listed as the contractor for the $400,000 foundation as well as for the $2.2 million construction project in review in NorthPoint Industrial Park, a Pattillo project in North Jacksonville. Pattillo developed a 163,615-square-foot facility for TRUaire on a site that could allow for a building expansion up to 220,000 square feet. Pattillo Industrial Real Estate Vice President Peter Anderson said construction should take six months after the permit is issued. TRUaire is an HVAC manufacturer that distributes residential and commercial products. New warehouse at NorthPoint: The city issued a permit for Dana B. Kenyon Co. to build the foundation for a 277,000-squarefoot speculative warehouse at 12090 New Berlin Road in the NorthPoint Industrial Park. The foundation cost is $9 million. Pattillo Industrial Real Estate will develop the structure, called Building 12B, next to the TRUaire Building 12A. New warehouse at Imeson: The city issued a permit for Webb Southeast Construction Corp. to build an almost 500,000-square-foot distribution center in Imeson International Industrial Park in North Jacksonville. The 477,946-squarefoot project is planned on 30.69 acres at 250 Busch Drive E. at a construction cost of $13.7 million. Orlando-based Industrial Park Investments Inc. President Dan Webb said there is no tenant and the building, expected to be completed in the fourth quarter, can be divided into spaces to accommodate a minimum 75,000-squarefoot user.
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Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, June 6, 2019 • Page 5
JAA CEO seeks to regain international service
CEO Mark VanLoh also is working on nonstop West Coast flights. When Jacksonville Aviation Authority CEO Mark VanLoh was a child in South Dakota, the airport in Sioux Falls was his playground. “We used to go to the airport on Sundays after church to eat. We’d go watch the airplanes. My sister and I would run up and down the concourses,” VanLoh said. He traces his 35-year career in aviation back to a single moment on the runway in his hometown — President John F. Kennedy’s arrival on Air Force One. “I was 4 or 5. I remember (I was) on my dad’s shoulders right up to him at the fence at the airport,” VanLoh said. “I just love aviation.” The JAA owns and manages the area’s airports including Jacksonville International Airport, Cecil Airport/Spaceport, Jacksonville Executive at Craig Airport and Herlong Recreational Airport. For VanLoh, the future of
Photo by Mike Mendenhall
Mark VanLoh was named Jacksonville Aviation Authority CEO in November.
dots showing current nonstop flights out of JAX. The West Coast was barren. “This is the map I’m a little concerned about,” VanLoh said. “And when I arrived in Jacksonville last year I said, ‘Where’s the West Coast?’ We are hitting all of those airlines that have headquartered trips (to the West Coast) and making that point known.” VanLoh gave council members and Jacksonville business leaders a tip to help secure more air travel options for JAX: “If you can find 100 people per day in Jacksonville that want to go to a particular destination, the airlines will listen,” he said. Since the cancellation of JAX’s only scheduled international flight in May — an Air Canada route to Toronto — the airport has been looking at ways to return to international destinations.
VanLoh said Air Canada’s passenger volume out of JAX was healthy. He blames the airline’s underperforming revenue on offering flyers only a 50-seat plane with no firstclass option. Comparable-sized airports like Charleston, South Carolina, have been working with British Airways to offer a direct flight to London. Bringing in a European carrier will take an initial investment but by federal law, the money cannot come from the airport. VanLoh said the investment should come from benefiting business groups and organizations like JAX Chamber. In Indianapolis, for example, he said business leaders collectively paid $5 million to court British Airways. “We are a job tool with the Chamber and JAXUSA. One of the top questions someone always asks — what are your taxes like, how are your schools and do you have an airport? Can I get my employees around the world? We’re part of that discussion,” VanLoh said. International is where VanLoh wants to take JAX. He said a market like Jacksonville has an advantage for international carriers over the larger hubs like Orlando: The profit margins are higher. VanLoh has informed city leaders that JAA is talking to European carriers including Ireland’s Ryanair, Norwegian Air Shuttle and Icelandair. He starts his new job at the busiest time in JAX history.
April was a record month. JAX saw 2,844 flights, up 396, or 16.18%, from April 2018. “We started to notice we were getting busy last year when our water bill went up. Think about that. More passengers, more toilets flushing. It’s just that simple,” he said. There are an additional 91,000 people coming through JAX terminals compared to this time last year. In response to 18 consecutive months of growth, JAA announced last month it will develop the $200 million Concourse B, with six gates and room to add six more. “It’s to handle what we may have missed. We don’t have the gate capacity many times a day for extra flights,” VanLoh said. There also is a focus on customer experience. Smaller upgrades, VanLoh said, are noticed by flyers. Wear and tear from traffic means the need for new bathroom facilities and restaurantvendor stalls, a roof replacement, and upgraded parking lots. The concourse, expected to be completed in 2022, and customer improvements are a part of VanLoh and JAA leadership’s strategy to grow the airport on both the commercial and corporate sides of the business. “There are several times a day where there’s no room at the inn,” VanLoh said. “We want to change that.”
THE MENDENHALL REPORT
MIKE MENDENHALL STAFF WRITER
Jacksonville International Airport – JAX – and JAA will be defined by securing nonstop service to the West Coast, finding the first direct flight to a European destination and corporate expansion — using JAA as a jobs recruitment tool for Jacksonville. VanLoh has been leading JAA for six months, coming from the same role at the Tulsa Aiport Authority in Oklahoma. He earned his pilot’s license while serving in the United States Army, 1st Cavalry Division, 82nd Field Artillery Target Acquisition at Fort Hood, Texas. After his service, he returned to the Midwest to study aviation management, business administration and economics at Minnesota State University at Mankato. For Jacksonville to land more domestic nonstop destinations, it’s about overcoming airline logistics. Major airlines don’t want to fly over their hubs, VanLoh said. One possible solution is working with airlines to fly into those Pacific hubs. JAA, he said, is focused on Alaska Airlines, which could fly Jacksonville passengers direct to its Seattle hub. VanLoh’s team also is courting American Airlines to fly into The Hollywood Burbank Airport and John Wayne Airport in Orange County near Los Angeles. During his State of the Authority speech May 30 to Jacksonville City Council, VanLoh pulled up a map of the United States, sprinkled with
MMENDENHALL@ JAXDAILYRECORD.COM @MIMENDENHALL (904) 356-2466
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Page 6 • Thursday, June 6, 2019
Jacksonville Daily Record/Jacksonville Record & Observer
THE BASCH REPORT
Foote: Operating ratio is CSX scorecard
MARK BASCH CONTRIBUTING WRITER
“It tells you by looking at one number whether or not you are running the company effectively and efficiently,” CEO of railroad giant says. As far as James Foote is concerned, one number tells you everything you need to know about CSX Corp.’s performance: the operating ratio. During a presentation last week at the Bernstein Annual Strategic Decisions Conference in New York, the chief executive officer said CSX has the best operating ratio of the seven major North American railroads. “It is what I call a scorecard,” Foote said. “It tells you by looking at one number whether or not you are running the company effectively and efficiently.” Jacksonville-based CSX lowered its operating ratio
File image
CSX Corp. CEO James Foote says his predecessor, the late Hunter Harrison, never mentioned the term “precision railroading.”
(operating expenses divided by revenue) from 63.7% in the first quarter of 2018 to 59.5% in the first quarter of 2019. CSX was criticized two years ago for service disruptions as its new management team implemented a new operating plan, but Foote said the improved operating ratio since
then is benefiting its freight customers. “The byproduct of running the company effectively and efficiently is that you’re also providing the best quality of service to your customers,” he said. Hunter Harrison, who joined CSX as chief executive
in March 2017, implemented a new operating plan known in the industry as precision scheduled railroading. But Foote, who succeeded Harrison as CEO when Harrison died in December 2017, said his mentor didn’t use that term. “I never heard the man in my life say PSR,” Foote said. Harrison was focused on providing reliable service to customers, he said. “If you tell the customer it’s going to be there in 3½ days, it needs to be there in 3½ days,” he said. CSX’s operating ratio was 69.4% in 2016. The new management team led by Harrison set a goal of lowering it to 60% by 2020, and the company did that well ahead of schedule last year. Foote said investors were skeptical when he talked about that goal. “I think everybody in the room thought Jim had lost his mind, he’s been working in the railroad too long and is delusional,” he said. “We had every bit of confidence that we were going to be able to do that,” he said. Looking ahead to the rest of 2019, Foote said the impact of tariffs is making people nervous, but he is confident that freight traffic trends will remain strong. “Things are pretty good and unless we talk ourselves into a recession, we should be okay,” he said.
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CSX is silent on CFO departure Foote’s presentation came two days after CSX announced Chief Financial Officer Frank Lonegro left the company. CSX did not announce a reason for the departure of Lonegro, who had been CFO since September 2015. However, a Securities and Exchange Commission filing Tuesday by CSX said he is receiving severance benefits “to allow for optimal execution of the Company’s gradual management changeover, which was concluded with the transition of Mr. LoneLonegro gro’s role.” “In some ways Mr. Lonegro’s departure may be surprising and in other ways, not,” Morgan Stanley analyst Ravi Shanker said in a research note. “As CFO during CSX’s PSR implementation over the last two years, Mr. Lonegro delivered the results that drove stock price gains,” Shanker said. “However, we also note that he was perhaps the last remaining member of the ‘old’ pre-Hunter Harrison management team and has stayed longer than many peers.” CSX said it has initiated a search for a new CFO but gave no timetable. “The transition comes at
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, June 6, 2019 • Page 7
an interesting time for CSX as it looks to move beyond PSR cost-cutting toward potential growth avenues, which may be hard to come by due to cyclical and secular headwinds,” Shanker said.
ended April 26, adjusted for currency fluctuations. The global medical device company does not give specific figures for its Jacksonville division. Medtronic’s specialty therapies group, which includes the ENT business, increased revenue by an adjusted 6.8% to $445 million in the quarter. Medtronic’s total revenue rose 3.6% on an organic basis to $8.146 billion.
Analyst upgrades Black Knight Black Knight Inc.’s stock jumped to a new high Monday morning after Goldman Sachs analyst James Schneider raised his rating on the Jacksonvillebased mortgage technology company from “neutral” to “buy.” Black Knight is the dominant company in its field, providing processing services for nearly two-thirds of all U.S. first mortgage loans. “We expect the company’s strong pipeline of new bank client wins (in both mortgage servicing and origination software) to drive accelerating revenue growth over the course of 2019 and into 2020 relative to recent quarters,” Schneider said in his research note. While he expects growth, Schneider also said Black Knight has “countercyclical elements” which make it more resistant to a recession. If a recession hits the U.S. in early 2020, “Black Knight can maintain mid-to-high single digit revenue growth — even assuming softness in servicing and origination revenues — as this weakness is partly offset by increased foreclosure and refinancing revenue,” he said. Schneider also added, “Our economists are not currently forecasting a recession in 2019 or 2020.”
Hedge fund partner resigns from Rayonier AM board
DD3D Studio
An artist’s rendering of the National Security Multi-Mission Vessel. Tote Services Inc. of Jacksonville was awarded the contract to manage construction of the ship.
Black Knight’s stock rose as much as $2.83 to a record high $59.52 in the early minutes of trading Monday after Schneider’s upgrade. He set a price target of $68 for the stock.
EC to examine FIS Worldpay deal The European Commission will be looking at Fidelity National Information Services Inc.’s $34 billion agreement to buy payments technology company Worldpay Inc. The commission’s competition division issued a notification last week saying Jacksonville-based Fidelity National Information Services, or FIS, filed a notice of the deal on May 28 and the commission expects to complete its
review by July 5. FIS provides financial technology services to clients in 130 countries and Cincinnati-based Worldpay processes payments in 146 countries. FIS said in April it already received antitrust clearance for the deal from the U.S. Department of Justice. The companies hope to complete the merger in the third quarter of this year.
services. The Maritime Administration said in a news release Tote will manage construction of a new class of training ship called the National Security Multi-Mission Vessel. Tote will select a shipyard for the project and provide management oversight of the final vessel design and construction. The ship is targeted for delivery in the fall of 2022.
Tote Services wins $39M DOT contract
Medtronic revenue in Jacksonville rises
Tote Services Inc. of Jacksonville was awarded a $39.2 million contract from the U.S. Department of Transportation’s Maritime Administration for vessel construction management
Medtronic plc said revenue for its Jacksonville division, which makes surgical instruments for ear, nose and throat physicians, rose by a “high-single-digit” percentage in the fourth quarter
A representative of an activist hedge fund who gained a seat on Rayonier Advanced Materials Inc.’s board last year resigned as a director of the Jacksonvillebased company. According to a Securities and Exchange Commission filing last week, Matthew Hepler, partner at Marcato Capital Management LP, resigned from Rayonier AM’s board. Marcato is known for waging proxy fights to get new directors elected to the boards of public companies. As it began buying shares of Rayonier AM, the company in February 2018 agreed to appoint Hepler to the board. Last week’s SEC filing said Marcato is not exercising its right to designate a successor to fill Hepler’s seat. No reason was given why Marcato dropped its interest in Rayonier AM’s board. Marcato’s most recent filing showed it controlled about 2.35 million Rayonier AM shares, or about 4.7% of shares outstanding.
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Forcura CONTINUED FROM PAGE 1
process was,” Mandeville said. Patient information would be faxed back and forth with some pages not making it through. “She’d be driving stuff from her car to the agency,” he said, finding the process “a complete mess.” Mandeville developed a platform to automate the information flow. He took the prototype to an Orlando conference for postacute care in October 2012, set up a booth and showed what he called “basically a PowerPoint.” People told him he was solving a need and ultimately would improve patient care. “I really didn’t intend to sell the platform at that show. It was really for feedback,” he said. But he printed off some contracts and returned to Jacksonville with four signed paying customers. “That’s really a validation. At that point we knew we had something,” he said. “We shot off like a rocket from there.” Mandeville explained the concept. “A lot of our customers, it takes three to five hours to onboard a new patient that’s coming from the hospital and into a post-acute care service like home care, hospice, skilled nursing,” he said. “Our software automates that and we’re able to provide meaningful information. The clinician has the information they need to ultimately make more informed patient care decisions in the home,” he said. The next goal is to transition Forcura to an artificial intelligence and data analytics platform. That includes partnerships with other
Jacksonville Daily Record/Jacksonville Record & Observer
companies in the industry. “We’ve done a lot of research and proactive strategic partnerships to set us up for really expanding and growing,” he said, with the vision “to become the standardized communication platform for all post-acute health care.” Forcura is an Inc. 5000 company for its growth, ranking No. 718 in 2018 and No. 574 the year before. “Today we have 16% of the home health and hospice market that is utilizing our technology,” Mandeville said. “By the end of this year, we’ll have about 32% of the entire market. That gives you a sense of where we’ve been and the growth.” Forcura uses the “annual run rate” as its growth goal. That rate, an accounting tool, projects future revenue for the year based on current monthly revenue. Mandeville projects the sales run rate for Forcura to be $20 million this year – and $100 million in two years. STAKE FOR EMPLOYEES
Mandeville, 45, owns the majority of the company with two investors that hold a small stake. He also carved out a slice of the company for employees. Forcura leases 14,500 square feet of space in the Deerwood North office center in Southside. The offices are designed with an open layout that encourages the 53 employees to interact. “Everyone here has an ownership stake,” Mandeville said. “Part of our culture is we have this entrepreneurial spirit here and with a team having a stake in it, everyone’s focusing on the top line, bottom line and alignment with our goals to exceed them day in, day out.” Mandeville said the company was profitable in 11 months, so there
wasn’t a need to raise more capital. “We’ve been investing all of that profit back into the company,” he said. That includes hiring the right talent and providing a supportive work environment and benefits. He said retention is 99 percent, which Forcura Chief Strategy Officer Annie Erstling calls “pretty amazing.” Erstling said the company’s 15 employees two years ago determined the culture necessary to succeed in an entrepreneurial, high-growth company. “I think if you talk to people, they feel really committed, which is fun,” she said. “In a really large organization, you can feel like you know what you’re doing, but you don’t necessarily feel like you’re rallying together as a team to pull together.” She said Forcura has a lot of young employees. “We wanted to figure out how to harness that employee in a way that motivated them,” Erstling said. “Everything we do is goal driven,” said, with key performance indicator boards around the office and regular sharing of company reports. She said the transparency, organizational goals and constant communication are helpful. “We have screens everywhere,” Mandeville said. “That’s posting in real time key performance indicators that all ladder up to the corporate goals, so everyone knows exactly where we are: on track, ahead of schedule or even off track. It’s been really core to us.” He anticipates more than 100 employees within the next 12 months. INNOVATE JAX
Mandeville has a vision for Jacksonville, too.
“I want this to be the high-tech innovation hub of the Southeast,” he said. He wants Forcura to be an economic driver to that goal. Forcura works with Jacksonville University and the University of North Florida with internships, partnerships and scholarships in hopes not only of supporting innovation but keeping the graduates in town. “I want to make sure that the talent stays,” he said. Mandeville also wants to create a forum that he calls Innovate Jax to bring together the area’s tech ventures and companies to create that area culture. The first event will be June 27 at Forcura’s offices. There are large well-known companies – Black Diamond, Black Knight, Florida Blue, CSX Corp., TIAA Bank, Mayo Clinic, Baptist Medical Center and others – deeply involved and dependent on technology innovation. “Then there’s this small entrepreneurial world, and they don’t really cross over,” Erstling said. Mandeville and Erstling plan to launch a podcast of monthly interviews with innovation leaders. Mandeville, who grew up in Texas, was a teenage entrepreneur and graduate of The University of Texas at Austin. He started a business with three partners, of which two were from Jacksonville. He moved to Jacksonville, sight unseen, and found a little rental off Davis Street in Neptune Beach. The company was Waste Reduction Consultants Inc. He bought out two partners and then sold to the other. Waste Reduction Consultants was sold in 2012 to public company CASS Information Systems Inc., which Mandeville said has about
CRAIG MANDEVILLE Age: 45 Title: Founder and CEO Company: Forcura LLC Hometown: Born in Connecticut, grew up in Plano, Texas Education: Bachelor of Science degree in communication and business, the University of Texas at Austin First job: Started a landscaping company at 14 Family: Wife, Heather Mandeville, married in 2007; daughters Kenley, 7, Reagan, 6, and Skyler, 5 Jacksonville: Moved from Austin, Texas, to Neptune Beach in March 1999 with a business, Waste Reduction Consultants, and three business partners First job: Started a landscaping company at 14 Website: Forcura.com
100 employees in Jacksonville. “I always say the mayor owes me lunch or something because that was the first economic impact that I was a part of here in Jacksonville,” he said. KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
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THE SAILER REPORT
Median sales price of area housing is rising REAL ESTATE INDUSTRY NEWS Rents moving up: Jacksonville apartment rental rates increased 0.5% over the past month and are up 2.4% yearover-year, according to Apartmentlist.com. The increase outpaced the Florida and national averages over the past 12 months. Median rents in Jacksonville are $890 for onebedroom and $1,090 for two-bedroom apartments. SCOTT SAILER STAFF WRITER
Expert says that while there are affordability concerns, there is no sign of a housing bubble. While the median sales price of housing is rising and affordability is changing how people buy homes, there are no signs of a housing bubble, according to data and an industry presentation. Northeast Florida Association of Realtors statistics indicate the April 2019 median home sales price of $225,000 is up 1.5% over the annual 2018 median sales price of $221,500. The median sales price in 2018 increased 8% over 2017. NEFAR’s numbers also indicate an 8% drop in the affordability index for the first quarter, showing it is more difficult for prospective buyers to qualify for the median-priced home with current interest rates. April’s median pricing went down slightly, reducing
Photo by Karen Brune Mathis
Toby Hoff, regional director of the Metrostudy research firm, says Florida is close to recovering all the housing equity lost in the Great Recession.
the drop to 6%. NEFAR statistics reflect a trend since the end of 2011. “While affordability concerns remain, there is no sign of a housing bubble,” said Toby Hoff, regional director of the Metrostudy research firm in a March 1 presentation to the Northeast Florida Builders Association Sales & Marketing Council. Metrostudy provides residential construction real estate and housing market analysis. A housing bubble is caused by speculation in the market that runs up real estate prices. When it bursts, prices collapse, such as in the bubble of the mid-2000s and the Great Recession. “The upside of price appreciation is that Florida is close to recovering all of the home
equity wealth lost in the housing market collapse,” Hoff said. Affordability is a growing concern. Developers and builders are dealing with rising land and material costs, pushing housing prices higher. “As things get more expensive, buyers are paying more and more, which means they can afford less and less, so we’re losing this very valuable $200,000 segment,” Hoff said. That segment of home prices is “going to slowly disappear,” Hoff said. “The new ‘under $200,000’ is the $200,000 to $250,000 (range), that’s up 24% year over year,” he said. “There is going to be a limit to what people can afford,” he said. As affordability changes buying power, developers and builders look for options, such
Housing honor: Sulzbacher Village was honored with the 25th annual Charles L. Edson Tax Credit Excellence Award for Innovative Affordable Housing in the special needs housing category. The award honors housing credit developments that have shown meaningful use of the Low-Income Housing Tax Credit to enhance communities and improve resident health. Housing credit legislation: The Affordable Housing Credit Improvement Act was introduced in the U.S. House and Senate to enhance the 12.5% affordable tax credit enacted last year. The bill would increase the credit allocation by 50% to benefit populations like homeless veterans.
as higher density townhome developments. Increasing the number of units per acre lowers the price point. Hoff said in “the environment of rising costs, builders should focus on what buyers need and not what they want but aren’t willing or able to pay for.” Affordability also is driving some buyers to look for homes in Duval and Clay counties rather than focus solely on St. Johns County, long a destination for some pockets of upper-scale housing and for families who want to live in the highly rated school district.
“Buyers are starting to make concessions that they wouldn’t have made a few years ago. Buyers are beginning to drive farther in order to chase affordability,” Hoff said. Metrostudy is scheduled to present a market update to NEFBA at 1 p.m. June 26 at the NEFBA auditorium in Southpoint. For information, visit nefba.com. SSAILER@ JAXDAILYRECORD.COM (904) 356-2466
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Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, June 6, 2019 • Page 11
BY SCOTT SAILER • STAFF WRITER
Here are the top 10 commercial real estate sales in Northeast Florida, comprising Baker, Clay, Duval, Nassau and St. Johns counties. The sales were recorded May 28-31.
File image
Ponce Therapy Care Center at 1999 Old Moultrie Road in St. Augustine was sold for $11.5 million. Ponce Therapy Care Center was acquired by Tampa-based Greystone Healthcare Management Corp., which operates 28 skilled nursing and assisted living communities in Florida.
$11,508,800
$3,750,000
$2,007,911
$1,900,000
$1,575,000
1999 Old Moultrie Road, St. Augustine, St. Johns County
405 S. Roscoe Blvd. and Palm Valley Road, Ponte Vedra Beach, St. Johns County
1215 Sixth St. S., Baker County
Florida 207, St. Augustine, St. Johns County
1515 County Road 315C, Green Cove Springs, Clay County
Type: Undeveloped commercial Size: 13.19 acres Buyer: Construction Managers Inc. of Goldsboro Seller: Fu-mei L. Shic
Type: Warehouse Size: 4.64 acres Buyer: CIV Properties LLC Seller: Sherman Land LLC
Type: Ponce Therapy Care Center Size: 8.01 acres Buyer: 1999 Old Moultrie RD LLC Seller: HPSA Real Estate LLC
Type: Undeveloped commercial Size: Not available Buyer: Nut Island Properties LLC Seller: ICW Bridge LLC
Type: Taco Bell Size: 0.95 acres Buyer: Luihn Vantedge Partners LLC Seller: TB of Starke Inc.
$1,365,773
$1,266,900
$1,200,000
$630,258
$560,000
Davis Park Road, Ponte Vedra, St. Johns County
Willow Lake Drive, St. Augustine, St. Johns County
8257 Normandy Blvd., Jacksonville, Duval County
Cherry Bluff Drive, Jacksonville, Duval County
Type: Undeveloped commercial Size: 2.78 acres Buyer: WMD Ponte Vedra Aquatics LLC Seller: Planet Swim Real Estate LLC
Type: 16 single-family lots in Gran Lake Phase 2 Size: Not available Buyer: Dream Finders Homes LLC Seller: Gran Lake Inc.
6635 Highway Ave. and 243 St. Andrews St. S., Jacksonville, Duval County
Type: Retail Size: 0.77 acres Buyer: JKG Realty LLC Seller: Robert E. and Linda L. Gornick individually and as Trustee of the Linda L. Gornick Trust Previous sale: $330,000 in 1991
Type: 10 single-family lots in Cherry Lakes Size: Not available Buyer: Dream Finders Homes LLC Seller: Cherry Lakes Development LLC
Type: Industrial Size: 1 acre Buyer: 6635 Highway Ave. LLC Seller: Mohavi LLC Previous sale: $724,000 in 2006 and 2007
TM
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COMMERCIAL REAL ESTATE
Top commercial sales of the week
DEVELOPMENT TODAY
Page 12 • Thursday, June 6, 2019
Jacksonville Daily Record/Jacksonville Record & Observer
These are the largest commercial building permits by job cost issued Tuesday by the city of Jacksonville. APARTMENTS Home Street Apartments, 1444 Home St., contractor is Pools by John Clarkson Inc., new commercial pool, $90,000.
SCHOOL, LIBRARY, OTHER EDUCATIONAL
GEDCO LLC, 6713 Southpoint Parkway, contractor is Osterer Construction Co. Inc., 8,400 square feet, new building, $1.69 million.
Chamberlain University College of Nursing, 5200 Belfort Road, No. 100, contractor is Dav-Lin Interior Contractors Inc., 4,409 square feet, alterations, $240,790. Jacksonville University, 2800 University Blvd., contractor is Stellar Group Inc., renovation of the River House Grill, $106,212.
RESTAURANTS
SIGNS
OFFICE, BANK, PROFESSIONAL
Ida Claire, South of Ordinary, 10209 River Coast Drive, contractor is TWT Restaurant Design, construction & Development Co., 7,484 square feet, tenant build-out, $1.79 million. ROOFING Frances Court Condominium Association Inc., 2545 Oak St., contractor is Oak Crest Contracting Inc., roof replacement, $105,000. Forest Creek Condominium Association Inc., 1701 Forest Lake Circle W., contractor is All Weather Contractors Inc., two permits for roof replacement, $65,146. Creekside Park Apartments, 5900 Townsend Road, contractor is Excel Roofing Contractors Inc., roof replacement, $51,950. Jared, 4647 Town Center Parkway, contractor is Simon Roofing & Sheet Metal Inc., apply roof coating, $36,614. Rumco Properties LLC, 1037 Edgewood Ave. N., contractor is D Dice Roofing Corp., roof replacement, $16,300. Jacksonville Mar Thoma Church, 8654 Griffis Road, contractor is John Gilmore Roofing Inc., roof replacement, $12,725.
Ferguson Bath Kitchen & Lighting Gallery, Counter Sales, 11511 Philips Highway, contractor is Taylor Sign & Design Inc., three permits for wall and ground signs, $10,800. Comfort Suites, 1180 Airport Road, contractor is Taylor Sign & Design Inc., two permits for wall and ground signs, $3,300. Zulos Pizza, 12795 San Jose Blvd., No. 15, contractor is Taylor Sign & Design Inc., wall sign, $2,000. BP, To Go, 4101 Southside Blvd., contractor is Aluminum Plus LLC, four permits for wall signs, $1,750. Shell, Food Mart, 7071 Philips Highway, contractor is Aluminum Plus LLC, three permits for wall signs, $1,250. STORES, MERCANTILE Coggin Honda, 11003 Atlantic Blvd., contractor is RLH Construction LLC, 1,248 square feet, new car wash building, $500,000. Rack Room Shoes, 13221 City Station Drive, No. 121, contractor is Horizon Retail Construction Inc., renovation, $105,252. Compiled by Scott Sailer
PEOPLE ON THE MOVE Promotions, hirings and happenings for business people in Northeast Florida. Send items to ssailer@jaxdailyrecord.com TwoJacksonvillebusinessleadersjoined HeritageCapitalGroupinleadershippositions. Scott McCaleb joined as a principal. His primary focus will be advising clients on merger and acquisition transactions as well as financial and strategic advisory services, including real estate. He previously was president of Vulcan Lands Inc. and before that was vice president of business development for its south region after it bought Florida Rock Industries Inc. He serves on the board of the Jacksonville Transportation Authority. Jerry Mallot joined as director of corporate development in February,after retiring Sept. 1 as executive vice president of JAX Chamber and as president of JAXUSAPartnership,itseconomicdevelopment division. Mallot’s focus will be on developing clients for Heritage Capital’s services for consulting,capitalraises,acquisitions,exit planning and execution, and company sales. MallotdirectedtheJAXUSAPartnership and staff of 14 for 25 years and spent 40 years in economic development. John Sapora joined the Local Initiatives Support Corp. in Jacksonville as disasterrecoveryand resiliency manager. Sapora’s role is to enhance emergency preparednessinJacksonvillebyorganizing local government Sapora emergencymanagers, businessesandnonprofitgroupstocreate a coalition of volunteers that provide resiliency and mitigation to lessen the disrup-
McCaleb
Mallot
tionandhighcostsofdisasters.Saporawas apart-timeintakeattorneyatJacksonville Area Legal Aid. Anne Guenther joined Riverside Cottages at the Shores in St.Johns County as executive director.She will be responsible for managing and overseeing health care operations at the assisted living facility. Guentherwasvicepresidentofoperations at BayView Healthcare and administrator atSt.AugustineHealthandRehabilitation Center. Mike Aspinwall, a researcher and assistantprofessorattheUniversityofNorth Florida, was awarded a$462,500grantfrom the U.S. Department ofAgriculture to study switchgrass as an alternative biofuel. Aspinwall will be the lead researcher along with scientists from Aspinwall other universities. Compiled by Scott Sailer
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The Intersection of Industrial and Retail Panel discussion with four local leaders in the industrial and retail industry
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NAIOP QUARTERLY LUNCHEON MEETING
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Lisa A. Dasher, Esq. is a United States Military Veteran who has mediated over 1,500 cases by providing intervention between conflicting parties. Also, a Parenting Coordinator for the Fourth Judicial Circuit.
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Thursday, June 27th 11:30 am - Registration & Networking 12:00 pm - Plated Lunch 12:30 pm - Program Begins
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Moderator: David Sillick
Registration/pay online www.naiopnefl.com/event Registration Deadline: Monday, June 24th at Noon
(904) 866-0268
Lisa A. Dasher, Esq.
Schedule online at www.jacksonvillefamilymediation.com Monday - Friday 8:00 a.m. to 5:00 p.m. Weekends by Appointment.
(No cancellation accepted or refunds given after Monday, June 24th at Noon.)
For more information contact Carmel Buchanan, 904/730-8075 or naiopnefl@comcast.net NAIOP Members: $35 | Non-Member/Guest: $50 VIP Table of 8: $350 for NAIOP Members | $500 for Non-Members (Includes table signage and preferred seating)
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, June 6, 2019 • Page 13
Special to the Daily Record
Tad Delegal, left, and James Poindexter are law partners at the newly formed Delegal & Poindexter.
Delegal forms new law partnership
MAX MARBUT ASSOCIATE EDITOR
Former associate James Poindexter added to the letterhead. After 20 years practicing as Delegal Law Offices, attorney Tad Delegal has partnered with his former law clerk and associate attorney James Poindexter to form Delegal & Poindexter. Poindexter joined Delegal’s
office as a clerk in 2011 and was made an associate in 2015 after graduating from Florida Coastal School of Law and being admitted to The Florida Bar. “Over the past eight years, James has demonstrated a knowledge of employment law that has made him an asset to the firm,” Delegal said. Poindexter, who received an MBA from Jacksonville University, is co-chair of the Jacksonville Bar Association Government Relations Committee, a member of the JBA Young Lawyers Section executive board and treasurer of the National Employment Lawyers Association Florida Chapter. The firm specializes in professional license defense, employment litigation, noncompete disputes and severance agreement negotiations as well as public and private whistleblower claims.
• Mobile Forensics Media Research • &Social Preservation • Surveillance • Security Negligence Experts
Shoot nets $1,250 for civil legal aid
Fourth Circuit Assistant State Attorney Catie Messinger was promoted from the County Court to the Circuit Court line. A Jacksonville Beach native, she graduated with a bachelor’s degree in political science and criminology from Florida State University in 2012. Messinger Messinger joined the State Attorney’s Office after she graduated in 2017 from the FSU College of Law.
Denk to be recognized at Bridges to Justice
Megan Denk, executive director of The Players Center for Child Health at Wolfson Children’s Hospital, will be recognized by Jacksonville Area Legal Aid at its Bridges to Justice for Children’s Health event at 6 p.m. June 19 at the offices of Nelson Mullins Riley & Scarborough. Denk led the Community Asthma Partnership’s development of a highDenk risk care coordination model, reducing asthmarelated admissions at Wolfson Children’s Hospital by 30% in four years. To register for the event, visit
Special to the Daily Record
The Jacksonville Bar Association presented a check for $1,250 to Three Rivers Legal Services, part of the proceeds from the inaugural JBA Clay Shoot. From left, JBA Executive Director Craig Shoup, Three Rivers Executive Director Christine Larson and Jacksonville Pro Bono Director Sarah Sullivan.
THE MARBUT REPORT
Messinger promoted at SAO
municate with clients; failed to properly supervise lawyers and nonlawyer staff practicing without a license in another state; was dishonest; failed to provide a settlement statement to a service provider; failed to hold in trust disputed settlement funds; and solicited clients. The court ordered disciplinary revocation for Alyscha Lauren Johnson, 8433 Southside Blvd., Apt. 2115. She may seek readmission to the Bar in five years. Complaints pending against Johnson included allegations of lack of communication, neglect and excessive fees.
jaxlegalaid.org/bridgesto justicedonation/ and make a donation of any amount. For information about sponsorship opportunities, contact dennis. harrison@jaxlegalaid.org or call (904) 356-8371 ext. 296.
Local attorneys sanctioned The state Supreme Court in recent court orders disciplined 16 attorneys – disbarring six, revoking the licenses of three and suspending seven. Two practiced in Jacksonville. Christopher M. Chestnut, 301 W. Bay St., Suite 1400, is disbarred. The order said that in multiple cases, Chestnut incompetently handled matters; charged excessive fees; failed to effectively com-
MMARBUT@ JAXDAILYRECORD.COM (904) 356-2466
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THE BAR BULLETIN
Jacksonville Daily Record
Bar Bulletin The
PROTECTING RIGHTS • PURSUING JUSTICE • PROMOTING PROFESSIONALISM
INSIDE
FROM THE PRESIDENT
THANK YOU
COMMENTARY
Big changes in assignment of benefits
FOR THE OPPORTUNITY TO SERVE
The 2019 Florida Legislature made sweeping changes to assignment of insurance benefits laws for residential and commercial property insurance policies. PAGE 18
PRO BONO
Keeping a family together Attorneys Hollyn Foster and Stephanie Sussman step up in custody matter. PAGE 17
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Jacksonville Bar Association President Katie Dearing was elected to the Circuit Court after 15 years in the JBA.
I couldn’t have done it without you, says outgoing JBA president. BY CIRCUIT JUDGE KATIE DEARING JBA PRESIDENT
T
his is the article everyone says not to write: The outgoingpresident-thanks-everyonearticle that no one is going to read. But if you know me, and if you came to my investiture, you know that after 15 years in Bar association service, I have
more than a few people to thank. (Yes, it’s really been that long.) Thank you. What else can I say about and to an organization that shaped my career path so fully? I wouldn’t be where I am now but for the Jacksonville Bar Association and the relationships I made through this organization. Thank you to the committee chairs who work tirelessly to put on amazing
programs, lunches, gift drives and Bar Bulletins. Thank you to the Young Lawyers Section crew from the mid-2000s for showing me that service can be fun and that there is an easy way to give back to the legal community from which we all benefit so much. Thank you to the Jacksonville Daily SEE DEARING, PAGE 19
COMMENTARY
Keeping perspective As we try to develop our practices and focus on the great work we do for our clients, nothing is more important than our health. PAGE 16
COMMENTARY
The reality of secondary trauma in family law practice We are conduits of hope, not architects of destruction.
SARAH SULLIVAN JBA FAMILY LAW COMMITTEE
Last week, I went to the pharmacy to pick up some prescriptions. I’m not trying to overshare, but prescriptions are just part of my reality. While there, I got into a discussion with the pharmacist about one of the new, aggressively advertised antidepressants on the market. We discussed
some of the older antidepressants and their side effects and then the pharmacist shared what he had been prescribed and the effects it had on his mental health. We both spoke candidly and in plain view of one another. No hushed tones and no embarrassment. It was refreshing to have that conversation. I thought to myself as I walked out of the store how these conversations are healthy and necessary considering the
heartache and turmoil we face on a daily basis. As lawyers and advocates, we must take better care of ourselves. We must feel comfortable sharing our brokenness with one another, and we must end the stigma of mental health disorders—as so many of us carry these burdens and suffer in silence. Although this very open and public conversation took place spontaneously at my neighborhood pharmacy, it is starkly
contrasted with the sadness of knowing one of our family law colleagues died not long ago. His loss is tragic because he was a family man, a friend to many, a talented and bright attorney and he had a generous heart. His passing was a reminder that we do not always know our neighbor’s burdens, especially in a professional context. We must not only feel more comfortable with sharing, but also with hearSEE SULLIVAN, PAGE 18
THE BAR BULLETIN
Jacksonville Daily Record
Thursday, June 6, 2019 • Page 15
TUESDAY Judicial Relations Committee Noon, Duval County Courthouse, Room 6174 Register at jaxbar.org WEDNESDAY Vintage Lawyers Meeting Noon, Golden Corral on Southside Boulevard Register at jaxbar.org WEDNESDAY Veteran & Military Affairs Committee Noon, Jacksonville Bar Association Register at jaxbar.org JUNE 21 Solo & Small Firm Committee Noon, Jacksonville Bar Association Register at jaxbar.org
UPCOMING EVENTS
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Nursing homes frequently receive a combination of money from residents and through Medicaid.
Debunking Medicaid myths A look at three misconceptions about the government program. BY MIKE JORGENSEN AND ALISON HICKMAN JBA ELDER LAW COMMITTEE CO-CHAIRS
As elder law attorneys, we frequently are asked why people should apply for Medicaid. There are many misconceptions about Medicaid and the need for it. One misconception is that Medicaid is only for the poor. Another misconception is that the patient will receive substandard services if he or she receives Medicaid to help pay for their nursing home bill. A third misconception is that the client must spend and use all of their assets before they can be eligible for Medicaid. Medicaid is a need-based program for people with substantially no assets and insufficient income to pay the average $8,000 to $12,000 medical and skilled nursing home bill. Not everyone will require skilled nursing care (i.e. nursing home), but there are significant portions of our population, especially as we age, that may need a nursing home stay. After a limited amount of time (maximum 100 days), Medicare does not pay for long-term care. Most of our clients are unable to pay their nursing home bill. They do not
Jorgensen
Hickman
have to be poor to require a Medicaid subsidy to help pay this bill. Medicaid may be the only available subsidy. Nursing homes frequently receive money from residents (self-pay) or a combination of self-pay and Medicaid. Most nursing homes rely on Medicaid dollars to stay in business, and they allocate a certain number of beds as “Medicaid” beds. Once the person is admitted into the nursing home, our experience shows that the services provided are the same whether the patient is self-pay or the patient is receiving Medicaid to help subsidize their nursing home stay. The nursing home typically does not segregate the Medicaid beds from the private self-pay beds, and the nursing staff that is providing services is unaware of the source of payment when they are rendering services. With nursing home planning, whether it is in a crisis or with a
THE JACKSONVILLE BAR ASSOCIATION LEADERSHIP President T. A. “Tad” Katie Dearing Delegal III DelegalCircuit Fourth Law Offices Judge
Secretary MichelleFox Michael Bedoya Orr Barnett Alexander Dawson | Orr DeGance Barnett
President-elect Katie L. Dearing Elizabeth Ferguson The Dearing Marshall Dennehey Law Firm Warner Coleman & Goggin Treasurer Elizabeth B. Ferguson Treasurer Marshall Bedoya Michelle Dennehey Barnett Warner Coleman &DeGance Alexander Goggin Barnett
Young Lawyers Section President Alexandria Jessica Byrne V. Hill Maple Street Dawson | Orr Biscuit Co. Executive Director Craig Shoup (904) Director 399-4486 Interim Executive Carla Ortiz-Ramos
longer planning period, we often can help legally re-position assets and still make someone eligible for Medicaid. The primary purpose of repositioning assets is to provide a source of funds that can be used to increase the client’s quality of care if that client requires Medicaid for nursing home care in the future. This policy provision is particularly important for a surviving spouse. We shouldn’t impoverish a widow or widower by them having to pay for their late spouse’s care. A person anticipating the need for long-term care should not wait until they have spent all of their assets before seeing an elder law attorney for Medicaid planning. Planning sooner allows for a wellthought-out plan that can save the applicant money and reposition the assets in the most advantageous manner possible for the applicant and their family. MIKE JORGENSEN IS THE MANAGING PARTNER OF SENIOR COUNSEL ATTORNEYS AT LAW, FOCUSING ON ESTATE AND LONG-TERM CARE PLANNING. ALISON HICKMAN OF GRADY H. WILLIAMS, JR., LL.M., ATTORNEYS AT LAW PRACTICES ELDER LAW.
BOARD BOARD OF OF GOVERNORS GOVERNORS MEMBERS MEMBERS Fraz Fraz Ahmed Ahmed The Coker LawLaw Offices of Eric S. Block
Blane Blane McCarthy McCarthy Blane Blane McCarthy McCarthy
Michael Michael I. I. Bateh Bateh Office DuvalofCounty the Public Judge Defender
Michael AsgharF.A.Orr Syed Dawson Gunster | Orr
Brian Brian T. T. Coughlin Coughlin Bedell Bedell Firm Firm
Asghar CyndyA.Trimmer Syed Smith Driver, Hulsey McAfee, & Busey Hawthorne & Diebenow Lindsay L. Tygart Coker, Lindsay Schickel, L. Tygart Sorenson, Coker Law Posgay, Camerlengo & Iracki
Christian Christian P. P. George George Akerman Akerman
FRIDAY CRIMINAL LAW COMMITTEE HAPPY HOUR 5:30 p.m., River & Post Register at jaxbar.org JUNE 18 YLS SPRING KICKBALL LEAGUE 6:00 p.m., San Jose Elementary School Register at jaxbar.org
JUNE 19 JACKSONVILLE BAR ASSOCIATION MEMBER LUNCHEON 11:45 a.m., Main Library Register at jaxbar.org
EDITORIAL EDITORIAL COMMITTEE COMMITTEE Editor-in-chief Editor-in-chief Cynthia Kelly Trimmer Karstaedt Driver, McAfee, Karstaedt Peek&&Stanko Hawthorne Editors Iana Iana Benjamin Benjamin Darlington Darlington Jordan Jordan Law Law Dave Dave Chauncey Chauncey Alexander Alexander DeGance DeGance Barnett Barnett Ashlea Ashlea Edwards Edwards GrayRobinson Akerman
Kelly Jessica Karstaedt Byrne Karstaedt Dawson&| Orr Stanko Adina Kirsten Pollan Oliver Pollan Steve Legal Watrel, P.A. Adina Pollan Pollan Legal
JBA CALENDAR
COMMITTEE MEETINGS
ELDER LAW
Page 16 • Thursday, June 6, 2019
THE BAR BULLETIN
Jacksonville Daily Record
COMMENTARY
Building a firm: How are you doing? MICHAEL FOX ORR THE FLORIDA BAR BOARD OF GOVERNORS
For law practices big and small, remember that nothing is more important than our health. Some of my friends may read the title of this article and think I’m about to tell the story of how I decided between a career in Philadelphia or Jacksonville. I was working for a law firm in Philadelphia when one day I asked a cashier at Fresh Market in West Philly: “How are you doing?” Her response: “You’re not from here are you?” I decided to return to Florida and abandon my quirky desire to be a Philadelphia lawyer. But that has nothing to do with this article. LARGE FIRMS
I recently read a survey of large firms by Altman Weil titled “2019 Law Firms in Transition” and thought I would share some of the findings before comparing them to findings relating to small firms. The survey participation included 49% of the 500 largest U.S. law firms and 46% of the AmLaw 200. Those firms reported increased revenue and profit from the year before. The results reflect that law firms are busier, raising their rates more and scaling back skepticism of the long-term outlook for legal services. Despite most firms increasing rates, the survey found clients are seeking “better, faster and cheaper” ways to meet their business objectives. Law firm leaders agree that a focus on improved practice
efficiency and price competition are permanent trends in the profession. However, 84% of the firms said they have chronically underperforming lawyers and 56% reported that overcapacity is hindering overall profitability. SMALL FIRMS
Thomson Reuters’ Legal Executive Institute recently published its “2019 State of U.S. Small Law Firms” report. The most significant issue for small firms is acquiring new client business. Beyond that, a majority of respondents expressed at least moderate concern about spending too much time on administrative tasks, keeping up with the competition and clients demanding “more for less.” Speaking of production, for many small-firm lawyers, nearly 40 percent of their day goes into
activities other than the practice of law, such as managing clients or administrative tasks. This means that working 10 hours a day might yield only six hours of billable time. All the while, only six in 10 potential clients even contact a legal professional and 40% of a lawyer’s potential client base are opting for the pro se or legal do-it-yourself websites. While difficulties continue in acquiring new client business, only 31% of small firms have implemented changes to address the issues. For administrative tasks, the numbers are worse: Only 17% have attempted to address the issue of spending too much time on administrative work versus practicing law. SO ...
Maybe size does not matter. Both large and small firms
face issues with increased competition, efficiency and pricing. Lawyers are worried about the billable hour, client production, administrative tasks and sought-after efficiencies that could result in more time for the lawyer to actually practice law. The challenges appear somewhat similar across the board. Big or small, we all have successes and failures. We all have obstacles to overcome and some of them will be gone tomorrow while others will linger for years. No matter what, we have to remember as we try to develop our practices and focus on the great work we do for our clients that nothing is more important than our health. Each of us can have a direct effect on another’s well-being. Be lenient when possible. Recognize that we all are busy
trying to maintain a work-life balance and always try to rest when you are weary. All the billable hours, client successes, trial wins, deal closings and hours logged at the office cannot buy back good health. Without mental and physical well-being, focusing on statistics is meaningless. Without good health, we are unable to help the people who need our services. So, as Health & Wellness Month comes to a close for The Florida Bar and the Jacksonville Bar Association, ask yourself: How am I doing? MICHAEL FOX ORR IS A PARTNER AT DAWSON|ORR HANDLING COMPLEX COMMERCIAL AND CIVIL LITIGATION CASES. HE REPRESENTS THE 4TH JUDICIAL CIRCUIT ON THE FLORIDA BAR BOARD OF GOVERNORS.
LEGAL BRIEFS
Need CLE hours? Check out the JBA website
The Jacksonville Bar Association has a CLE video library where you can purchase online CLE presentations and get those CLE credits you need in the convenience of your home or office. You may choose from as few as 0.5 CLER hours to as many as 8.0 CLER hours, including various certification hours. Just select the videos that correspond with the CLE credits you need, purchase them, watch online and submit for credit. Topics include family law, technology law, transactional law and professionalism for new practitioners. Visit jaxbar.org/store
Upcoming CLEs JUNE 18 Environmental & Real Property Law Committee Lunch & Learn Noon, Marks Gray 1.0 CLE credit, 1.0 condominium and planned development law certification credit and 1.0 real estate certification credit approved by The Florida Bar.
Keep involved in the JBA
Key reasons to renew your JBA membership
The driving force behind this organization is the active participation of its members. Please give the association the benefit of your ideas and talents by volunteering to serve on one or more of the committees shown on the JBA website. With your active involvement, this association will flourish. To join or change your committee preferences, open your web profile at jaxbar.org and click on “Join a Committee.”
n Bench & Bar Holiday Party free to members n General and Law Day luncheons free to members n Annual golf tournament n Free committee participation n Access to Attorney Conference Center, Duval County Courthouse n Bar Bulletin – First Thursday of month edition of the Jacksonville Daily Record n CLE seminars at reduced rates n Optional Lawyer Referral Service membership n Savings on exclusive member benefits n JBA E-News member email n Free listing in website directory with photo
THE BAR BULLETIN
Jacksonville Daily Record
Thursday, June 6, 2019 • Page 17
PRO BONO
Attorneys work together to stabilize a family
MISSY DAVENPORT JBA PRO BONO COMMITTEE CHAIR
Hollyn Foster and Stephanie Sussman share how they did it. A client often needs help in more than one area and assistance in multiple areas can be especially difficult for clients to secure. Just such a client, in need of help with a probate issue and a temporary relative custody matter, came to Jacksonville Area Legal Aid through the Northeast Florida Medical Legal Partnership. Attorneys Hollyn Foster and Stephanie Sussman stepped up to accept both cases and provided tremendous assistance for the family. Because of their work, the client is able to care for his siblings, the family has a secure place to live, and the client is able to continue his education. Foster and Sussman discuss their work here: HOLLYN FOSTER
A mother passed away leaving four children, two of which were
minors and being raised by their older brother (my client). The eldest son sought help in gaining possession of the homestead property for all the dependents, who all continued to reside in the home. This action was necessary both to transfer title and to reestablish the right to receive the homestead exemption on the property. This could be accomplished through the summary administration process. We were successful in having the court determine the property was homestead and passed to my client and his siblings and in completing the summary administration. Why was the outcome important to your client? The children had lost their mother. Having the ability to remain in their home and keeping the younger children in the same schools was priceless. What did you gain from the experience? Working this type of case reminds me of how very blessed I am. I am fortunate to have family and friends that support me emotionally and the finances to keep a roof over my head and food on my table. What is the name of your firm? In what areas do you practice? Bowers and Associates, P.A. My main focus is on estate planning, probate and trust administration and guardianships. What advice do you have for other attorneys considering
Special to the Daily Record
Attorneys Hollyn Foster, left, and Stephanie Sussman helped a client continue caring for his siblings.
pro bono involvement? There is always time to help others. Get involved, stay involved and your life will be the richer for it. STEPHANIE SUSSMAN
My client is the 21-year-old brother to a 17-year-old brother and a 12-year-old sister. He is a nursing student and works parttime. Their father passed away in 2006, and then their mother passed away in 2017. My client’s siblings were then left without a legal guardian. My client’s 17-year-old sibling was scheduled for knee surgery and the surgery could not take place without an order giving my client the ability to consent to the surgery. I petitioned the court for a custody order which would give my client legal custody of his siblings and the ability to make all decisions for them. The court granted our request. Why was the outcome important to your client?
My client had been the primary caretaker of his siblings for quite a while as their mother was sick for a significant period of time before her death. It was important to him that he gain legal custody of his siblings to ensure there would be stability and continuity in their lives. Why was the experience important to you? I was able to help someone who needed help and could not afford to pay a lawyer. It was rewarding and encouraging to me to meet my client and witness his dedication to his siblings. What is the name of your firm? In what areas do you practice? Bledsoe, Jacobson, Schmidt, Wright & Sussman. I practice primarily in the areas of marital and family law. My partners practice in all areas of civil litigation. What advice do you have for
other attorneys considering pro bono involvement? I strongly encourage pro bono involvement. The most important reason is to provide a needed service to the community. In providing pro bono assistance you are helping ensure that the court system really is accessible to everyone. Pro bono involvement also is personally rewarding. For me it is a break from the stress of practicing law and helps remind me why I do what I do. Our sincere appreciation and congratulations are extended to Hollyn Foster and Stephanie Sussman for the work they did on these cases and the advocacy they provided to this family in need. ATTORNEYS WHO ARE INTERESTED IN PRO BONO INVOLVEMENT, INCLUDING CASE REPRESENTATION AND OUTREACH CLINICS AND PROJECTS, MAY CONTACT MISSY DAVENPORT AT MISSY. DAVENPORT@JAXLEGALAID. ORG.
YOUNG LAWYERS
It’s always good advice to remember to breathe
CASSANDRA SMITH JBA YOUNG LAWYERS SECTION BOARD OF GOVERNORS
What worked in law school works today. “Just remember to breathe” is my mother’s go-to advice. I first remember her telling me this on my 22nd birthday. She didn’t remind me to breathe because I was overwhelmed with excitement on that day. In fact, it was the opposite. I was studying for my contracts exam. A friend and I were quiz-
zing each other and it became apparent that I didn’t know as much as my friend. I took a break and as I walked away, I felt tightness in my chest, a pit in my stomach and tears in my eyes. So I called my mom. She told me to stop what I was doing and take several deep breaths. Then she told me to stop studying and to come home and enjoy the rest of my day. She reminded me that life is too short not to celebrate another year, and that I could resume studying tomorrow. I followed her advice, celebrated my birthday and ended up doing well on my exam. Taking her advice, I was able to combat the anxiety of law school and Bar prep. However, nothing compared to the anxiety I experienced as a new attorney. I worked as an assistant state attorney for my first three years of practice. Although it was an experience that I don’t regret, it came with a great deal of stress.
I was in court every day, handling hundreds of files and trying numerous cases. Some mornings, I would wake up with that familiar tightness in my chest and pit in my stomach and I often dreamed about leaving the practice of law. But it was during that time I learned that the victories often outweighed the stressful days. I began practicing yoga and exercising daily. I would pray often and vent with my colleagues. By the end of my tenure I had the tools and confidence to handle the moments of fear and stress. And then I came to civil practice. Suddenly, my knowledge in criminal law, practice and procedure became irrelevant. I was now practicing in insurance defense. I spent less time in court and more time analyzing voluminous medical records. The simplicity of discovery that I experienced as an ASA did not exist in the realm of civil procedure. On top of that, I had to deal with the infamous
billable hour. My anxiety had awoken from its dormant state in this new chapter. For the first few months, I quit utilizing the tools I learned, and I felt its effects on my body. On one particular evening I was feeling completely overwhelmed. I called my mom and she softly spoke and told me to stop whatever I was doing and to breathe. At that moment, I had a flashback to law school, Bar prep and my early months at the state. It was in that moment I realized that the stress of my career as an attorney would never go away, but neither would my breath. I realized that everything I needed was already inside of me but that I just needed the reminder to use it. Since then, I’ve successfully implemented practices to combat anxiety. I practice yoga daily and use an app that reminds me at 3 p.m. every day to take five minutes to meditate. I exercise more and disconnect from work
when I’m at home, unless I have an urgent matter. Most recently, I took a vacation to celebrate my 30th birthday. My vacation reminded me that life is bigger than my career. It also motivated me to continue working hard at my job so I could enjoy more vacations. So for my fellow young lawyers who share the common experience of anxiety, I encourage you to find what brings you joy and make it a part of your daily life. Take a vacation, even if it’s just a weekend getaway or a mental health day. Exercise and play with your pets. Meditate to calm your mind. Practice your religion. Reach out to a professional counselor. Spend time with your loved ones. And most important: Remember to breathe. CASSANDRA SMITH IS AN ASSOCIATE AT KUBICKI DRAPER, FOCUSING ON BODILY INJURY AND FIRST-PARTY PROPERTY INSURANCE CLAIMS.
Page 18 • Thursday, June 6, 2019
THE BAR BULLETIN
Jacksonville Daily Record
COMMENTARY
Assignment of benefits law overhauled
RYAN MALONEY JBA CONSTRUCTION LAW COMMITTEE CHAIR
How the changes to property insurance claim rights will impact attorneys and consumers. An assignment of benefits is an agreement by which an insured transfers homeowner’s or property insurance claim rights or benefits under an insurance policy to a third party, most often a construction or restoration contractor. An AOB typically gives the third party authority to file a claim, make repair decisions and collect insurance payments directly, without the insured’s involvement. The process can be beneficial to insureds by allowing repair work to be done quickly, with the insured then not obligated to pursue recovery directly from the insurance company. However, in recent years there has been concern that the AOB process was being abused. According to the insurance industry, that abuse was driving up costs and, therefore, premiums. This was due in large part to the increasing number of AOB lawsuits against insurers, driven by Florida’s one-way statutory right to attorney’s fees for prevailing-party insureds against insurers. According to a recent state-
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An assignment of benefits typically gives the third party authority to file a claim, make repair decisions and collect insurance payments directly, without the insured’s involvement. An example is repairing a roof damaged by a storm.
ment from Gov. Ron DeSantis related to new AOB legislation, in 2008, there were approximately 90 property AOB lawsuits filed statewide, but by 2018, the number of lawsuits had increased by more than 19,000%. Against this background, the 2019 Florida Legislature made sweeping changes to assignment of insurance benefits laws for residential and commercial property insurance policies, effective July 1. One of the key changes is a major adjustment to the attorney’s fee recovery framework in AOB lawsuits. First, at least 10 business days before filing suit under the policy, the AOB assignee must provide the insurer with a detailed invoice or estimate and a notice of intent to initiate litigation that specifies the damages in dispute,
the amount claimed and the assignee’s pre-suit settlement demand. The insurer is then required to respond to the notice within 10 business days either by making a presuit settlement offer or requiring the assignee to participate in appraisal or another method of alternative dispute resolution under the policy. The AOB assignee can only recover prevailing-party attorney’s fees if the damages judgment ultimately obtained by the assignee is 50 percent or more than the “disputed amount” – the difference between the insurer’s pre-suit settlement offer and the assignee’s pre-suit demand. However, if the judgment obtained is less than 25 percent of the disputed amount, the insurer will be entitled to recover its attorney’s fees from the
assignee. If the damages judgment is between 25 and 50 percent of the disputed amount, no party is entitled to recover attorney’s fees. Another significant change to the AOB law is that to be enforceable, the agreement must be in writing and executed by the assignor insured and the assignee. The AOB agreement also must contain provisions that allow the assignor insured to rescind the AOB in writing, within certain time frames, and the assignee is required to provide a copy of the executed AOB agreement to the insurer within three business days after the AOB is executed or the date on which work begins, whichever is earlier. The AOB agreement also must contain a written, itemized, perunit cost estimate of the services
to be performed by the assignee. In addition, under the new law, on or after July 1, insurers will be able to issue policies that restrict or eliminate the ability of insureds to enter into AOB agreements. However, the insurer is required to also offer a policy that provides the same coverage without AOB restrictions and must charge a lower premium for the policies with the AOB restrictions. Time will tell if the recent changes to the AOB law will have the desired effect of reducing insurance costs and premiums, but they certainly will greatly change the landscape related to assignment of property insurance benefits. RYAN MALONEY IS A JACKSONVILLE ATTORNEY WITH A FOCUS ON CONSTRUCTION LAW.
Sullivan: Choose to be a ‘conduit of hope’ CONTINUED FROM PAGE 14
ing and supporting our brothers and sisters in the law. Family lawyers bear the brunt of the ugliness of uncoupling. Some of us may experience it on a personal level, but all of us experience it through the eyes of litigants and children—day in and day out. That takes a huge toll, especially on attorneys who are expected to not only absorb all the vitriol, but process it, defuse it, package it and present it to a court in a way favorable to our client. Family law attorneys are more often the brunt of lawyer jokes as if we are somehow “less than” other types of lawyers, but to be an effective family lawyer, you need to know procedure, laws about divorce, paternity, adoption, contracts, property/ real estate, estate planning, taxation, child development and yes, awareness of mental health disorders. We are the “counselor” in counselor-of-law one minute,
and the “gator” in litigator the next. By lunch on any given day, you may have heard the most bizarre and dysfunctional tale of human interaction in the history of interactions, and then your 1 p.m. appointment walks in the door. In law school, nobody educates you about the secondary traumatic stress you face as an attorney. Secondary trauma is trauma-related stress reactions and symptoms resulting from exposure to another individual’s traumatic experiences, rather than from exposure directly to a traumatic event, according to “Treatment Improvement Protocol, 57” SAMHSA News, Spring 2014, Volume 22, Number 2. Symptoms include hopelessness, anger, sleeplessness, chronic exhaustion, withdrawing or losing interest in routines and social activities, similar to symptoms of post-traumatic stress disorder. Family lawyers do not have a corner on the market of secondary trauma, but
trying to navigate the maelstrom of emotional family litigation, while also trying to manage your own personal hurricane of life, can take its toll. Not only do we carry our clients’ burdens, we have the added bonus of unrealistic client expectations to “solve” all of their life problems through legal action. A firm I worked for years ago hired a consultant to boost productivity and map a vision for the future. The consultant asked me, “Why do you do family law? Doesn’t it get depressing breaking up families?” I answered boldly, and maybe a little indignantly: “I do not see it as breaking up families, I see it as providing a pathway to a new beginning from a dysfunctional end. I am a conduit of hope, not the architect of destruction.” If I only internalized that mantra for my inner self, that would be quite a self-actualizing accomplishment. What can family lawyers do to feel like “conduits of hope” rather than “architects of
destruction?” Collaboration, mentorship and discussing or debriefing with other attorneys or staff after particularly difficult events, such as a trial or client meeting can help. Have non-attorney friends (if they’ll have you) to assist with balancing perspectives. Seek the help of a mental-health professional. Try regular exercise and meditation practice. Our natural inclination as professional control freaks is to conceal when we are in trouble rather than expose the ugliness of the trauma for fear of showing weakness, receiving judgment or facing embarrassment. Communicating our authentic selves, no matter how unsightly, is the key to freeing us from our secondary traumatic stress. A colleague recently disclosed a fairly acute personal issue to me in a semi-public venue. I checked in with her a few days later, after she shared the issue with a wider audience on social media. I commended her for her bravery, for putting her struggle
out there for all the world to see. She responded by saying that it is time we talked openly and personally about mental health, self-care and our wars within. I was impressed with her candor, her bravery and her willingness to be so openly fragile, similar to the impression made by the pharmacist disclosing his struggle with finding the right medication for his depression. Success as a family lawyer necessitates addressing our own personal battles as well as the secondary trauma our chosen trade most certainly brings. May we embrace one another and our brokenness (without exploiting that fragility for gain). May we destigmatize our personal demons and celebrate together our collective health and resiliency. SARAH SULLIVAN IS PRO BONO DIRECTOR AT THREE RIVERS LEGAL SERVICES AND PRESIDENT AND CEO OF JERICHO ROAD LEGAL SERVICE MINISTRY THAT PROVIDES LOW-COST FAMILY LAW LEGAL SERVICES.
THE BAR BULLETIN
Jacksonville Daily Record
Thursday, June 6, 2019 • Page 19
Dearing’s big year
Photo by Max Marbut
Jacksonville Bar Association President Katie Dearing was one of five judges sworn in Jan. 8. From left, Duval County Judges Michael Bateh and Kimberly Sadler and Circuit Judges Maureen Horkan, Dearing and Collins Cooper.
Special to the Daily Record
Dearing took the oath of office as president of the JBA in June 2018.
Photo by Max Marbut Photo by Max Marbut
From left, former JBA Executive Director Jim Bailey, his successor, Craig Shoup and Dearing.
Dearing with JBA Health & Wellness Committee Chair Ed Birk, center, and Brian Cuban, an attorney, author and recovering alcohol and drug addict who was the guest speaker at the association’s January meeting.
Dearing: JBA is more than dues and CLEs CONTINUED FROM PAGE 14
Record, whose partnership has been critical to our success and our ability to keep you informed. Thank you to the members who trusted me to help lead this organization all these years. Thank you to the past presidents who were there for counsel and guidance this year. Thank you to your exceptional JBA board of governors – devoted and active servants who provided critical guidance for me. The counsel and wisdom offered by your dedicated board members as we vetted issues this
year was invaluable to me. So that’s it. I am a lame duck. Elizabeth Ferguson and her team are off and running, planning for next year. We have one more luncheon and that will bring my Bar year to a close. I hope you have been well served this year by our committees, our CLEs, our luncheon offerings, our happy hours, our service projects, our social outings and everything else the Bar offered. We didn’t quite squeeze in the offshore fishing trip I had in mind. But that gives Elizabeth something to aim for.
Rather than make the association my own this year, I wanted to make it yours. I didn’t have an agenda beyond making the Bar the best it could be. We did this by appointing and relying on good people to lead our committees and programming. The renewed focus of our Health & Wellness Committee, the Diversity and Women in the Profession committees, and Solo/Small Firm Committee rival the dedication of perennial all-star committees like Elder Law and Environmental & Real Property Law. We also focused on serving
our members when we designed our new office space, to make it more useable and suitable to your needs. We hosted different and smaller social and networking events to provide a range of options to suit different tastes. Everything we did this year, even small things like reducing the announcements at luncheons so you could actually talk to the person next to you, was designed to improve your JBA experience. I hope we were successful. As I said at the outset of this year, the Jacksonville Bar Association is about more than dues,
committees, CLEs and lunches. It is about lawyers who support each other, who send each other business, who do community service together, who help each other find new jobs, who help each other through hurricanes. We are connected to one another through this organization. It has been my privilege to serve you all. KATIE DEARING IS A 4TH JUDICIAL CIRCUIT JUDGE AND PRESIDENT OF THE JACKSONVILLE BAR ASSOCIATION.
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THE COURTS & LAW
Page 20 • Thursday, June 6, 2019
Photo by Max Marbut
The attorneys of the Jacksonville office of Jackson Lewis, from left, Lindsay Swiger, Bill Moseley, Brian Hayden, Colin Thakkar, Jennifer Shoaf Richardson, Ben Sharkey, Office Managing Principal Richard Margulies, Tyler White and Katie Brezinski.
Jackson Lewis growing in Jacksonville Local office specializes in employment law. It’s one of the firm’s 55 offices nationwide. BY MAX MARBUT ASSOCIATE EDITOR
The Jackson Lewis law firm established its office in Jacksonville in 2008. It has grown from two attorneys to 10 in offices at 501 Riverside Ave. Each of the firm’s 55 offices in the U.S. and Puerto Rico has
a specific practice, and in Jacksonville, it’s labor and employment law. “We specialize in wage and hour and noncompetes. The firm’s top expert in noncompetes, Colin Thakkar, is in our office,” said Managing Principal Richard Margulies. The local office has been adding to its attorney staff with diversity in mind. Associate attorney Jennifer Shoaf Richardson joined the firm three years ago and is one of three women lawyers in the office.
“A lot of our clients are in health care, hospitality, retail and finance — the gender-equal industries. For us, it’s a strategic business advantage. It helps to have a diverse team on the matter,” said Richardson, who is president of the Florida Association for Women Lawyers and immediate past president of the Jacksonville Women Lawyers Association. Margulies said when the firm decides to add a Bar member, a diverse pool of qualified attorneys is considered. “We deal with businesses that
are, by and large, inclusive and that embrace diversity initiatives. We do it not just because it’s good business, but because it’s the right thing to do,” he said. Gender equality is part of the firm’s career advancement policy as well. Richardson said about one-third of the equity partners are women. “We do really well where it counts,” she said. “Within the past 10 years, we’ve made a push to be ahead of the curve. That’s not only in response to requests from our clients, but also requests from
our attorneys,” Margulies said. Almost all the attorneys in the office are parents, so balancing long hours and travel with family life is a factor the firm takes into account. Every three years, all of the firm’s more than 900 attorneys, and their spouses and children, gather in Southern California for a three-day retreat. “It started as a picnic and now we take over two resort properties in San Diego,” Margulies said. MMARBUT@ JAXDAILYRECORD.COM (904) 356-2466
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