Connecticut Supreme Court Restores Reason To Embryo Wars, Also Punts On Key Questions

An increasing number of couples are turning to assisted reproductive technology, and specifically in vitro fertilization (IVF), to have children. As a result, more and more courts are struggling with the legal difficulties that arise when relationships end, but cryopreserved embryos remain. The Connecticut Supreme Court is the latest high court to take on one of these legally sticky and emotionally wrought situations.

A Classic Fact Pattern

Jessica Bilbao and Timothy R. Goodwin married in 2011, and started fertility treatments shortly thereafter. They successfully conceived a child. But when they filed for divorce a few years later, they still had remaining cryopreserved embryos stored with their fertility clinic. Prior to going through IVF, the couple completed pretty basic and standardized forms with the clinic indicating their wishes should certain scenarios happen — these scenarios included death or divorce. The couple jointly filled out a form and checked the box on the fertility clinic paperwork that — in the case of the divorce — they wished for their embryos to be discarded. Both parties initialed the selection and signed the form.

At the time of the divorce, as sometimes happens, one party was no longer happy with that selection. In this case, Bilbao asked the court to enforce the agreement per their signed form. Goodwin, however, said he had changed his mind. He did not want the embryos discarded, but instead wanted them to stay cryopreserved in case the couple reconciled in the future. (Aww… that’s kinda sweet.) Alternatively, he asked that the embryos be donated to others for conception purposes.

Trial Court Craziness

In a bizarre and legally questionable decision, the trial court sided with Goodwin that the clinic form should not be enforced. The trial court reasoned that in entering into the form agreement, the contract lacked consideration between the parties themselves. Further, the trial court took issue with the clinic document being merely a “checkbox” form, and therefore not robust enough of a contract to be enforceable. Goodwin should have been pleased, right? Not so fast. The trial court then went on, after finding the form unenforceable, to weigh the parties’ interests in the embryos. The trial court then found that Bilboa had a greater interest in the embryos than Goodwin, and awarded her the embryos accordingly. Not a ruling either party wanted! Perhaps this is a good time to mention that both parties were unrepresented — proceeding pro se — in the divorce proceedings.

Reason Reinstated Upon Appeal

Having succeeded in invalidating the contract but still losing the right to the embryos, Goodwin appealed to the Connecticut Appellate Court, which then transferred the case to the Connecticut Supreme Court. In any event, two weeks ago, the Connecticut Supreme Court’s ruling brought back some degree of sanity for all of Connecticut fertility practitioners, and thousands of patients in Connecticut who may have been panicking that the forms they had signed with their clinics were legally unenforceable.

In Support of Checkboxes

While the trial court denigrated the use of checkboxes on the form the parties signed, laughably, the Connecticut Supreme Court pointed out that even “Connecticut trial courts ‘routinely use’ checkbox forms to issue legally binding orders.” Ouch, that’s a third-degree burn. So good news, fertility clinics, there is no need to rewrite those checkbox forms. Checkboxes FTW.

The court further determined that there was, in fact, legally valid consideration for the contract entered into by the parties in signing the form. “The plaintiff and defendant made mutual promises to contribute gametic material, and the reproductive services center promised to store the pre-embryos in exchange for the certainty provided by the parties’ election of a disposition in the event of the parties’ divorce.” Yeah, exactly. Kind of … obvious.

Side-Stepping Personhood?

On appeal, Goodwin argued that the trial court had incorrectly distributed the embryos as “property” when they are, instead, human life. He similarly argued, even if deemed property, the trial court should have applied a presumption in favor of preserving the embryos, on the basis that embryos should count as human lives. The court declined to touch these arguments with a 10-foot pole, noting that they had not been made at the trial court level, and therefore the court lacked an adequate record on the topic. Instead, Goodwin had merely argued at the trial court-level that he should be able to change his mind.

Of course, by not ruling on this issue, the court sort of conveys how it feels on the merits of the question. If the court thought that human lives were being killed in this context, they might have found a way to hear the arguments. Yes, technically they avoided addressing the issue. But I would say the avoidance speaks volumes on the court’s stance.

By finding that the form was an enforceable contract, the court also avoided deciding the state’s approach if there is no agreement in place. The court spends time addressing the various approaches, including a balancing of the interests, as well as an approach called the “contemporaneous mutual consent” approach. That theory would adopt the general principle that conception can never happen, even if the parties agreed at the time the embryos were formed, unless the parties still agree to conceive later in time. But the Connecticut Supreme Court, again, specifically declined to address what approach the state might take if there hadn’t been an enforceable agreement in play stating that discarding the embryos was the couple’s mutual choice.

Don’t Get Too Comfortable Relying On Those Forms

The court interestingly also notes that its decision only applies to contracts, if enforced, that will not result in procreation. “We do not decide whether the contractual approach applies in a scenario that would force one party to become a genetic parent against his or her wishes or, if the contractual approach does apply, whether such a contract would be unenforceable for other reasons, including public policy.”

Tim Schlesinger, Missouri assisted reproductive technology attorney and embryo disposition expert, points out that the court is acknowledging the reality that it is much easier to apply the contractual approach when the contract does not require one party to become a genetic parent against his or her wishes. Without mentioning the constitutional right not to procreate, according to Schlesinger, the Connecticut Supreme Court’s decision “illuminates the reluctance of courts to allow one progenitor to force the other to become a genetic parent against their wishes, and leaves the Connecticut courts room to prevent such a thing from happening.”

Schlesinger also notes that he is not aware of any other court in this position making that distinction, versus just remaining silent on the issue. And that, he thinks, is important.

So, to all of the Connecticut women going through IVF in their late 30s or early 40s, be mindful of the possibility that love, sometimes, doesn’t last forever. Even if you think your partner has agreed to give you control over embryos, maybe consider leaving some unfertilized eggs cryopreserved… just in case the current spouse/partner/sperm-provider has a change of heart. In such an instance, Connecticut might be open to humoring such fickle feelings directly affecting your ability to have a child.


Ellen TrachmanEllen Trachman is the Managing Attorney of Trachman Law Center, LLC, a Denver-based law firm specializing in assisted reproductive technology law, and co-host of the podcast I Want To Put A Baby In You. You can reach her at babies@abovethelaw.com.

Fill up on Legal Podcasts

Turkey isn’t the only thing you’re going to want to load up on this Thanksgiving. Whether you’re in a food coma or driving to grandma’s house, Legal Talk Network has the perfect legal podcasts to keep you educated and entertained this holiday season. If you’re looking for tips on handling stress in the profession, tune in for candid conversations about addiction and stress. Or if you’re interested in different kinds of system reform, tune in to hear about the experiences of lawyers fighting for death row and criminal justice reform. Or if you’re curious about current events, catch the funny and thoughtful takes of other legal professionals as they share their two cents. So while you sweat over the oven, pull up Legal Talk Network on your favorite podcast app and enjoy informational and engaging legal content designed with the busy lawyer in mind.

Why Criminal Justice Reform Matters (Part 1)

Criminal justice reform advocate and 2019 Clio Cloud Conference keynote speaker Shaka Senghor shares his personal story of redemption along with his experience with gun violence trauma and how legal professionals can shift their perspectives on justice reform.

The Alter Ego Effect, with Todd Herman

Todd Herman talks about his book, The Alter Ego Effect, in which he explains what the “alter ego effect” is, how to use an alter ego to overcome your biggest challenges, and whether you can still be authentic while you are pretending to be someone else.

The Angel of Death Row Edition

Hear the personal stories behind the death penalty in America. Andrea Lyon, dubbed “The Angel of Death Row” by the Chicago Tribune, shares about the challenges of advocating for justice for death row inmates and why she maintains her belief in the power of redemption.

How to master the jury selection process

Jeffrey T. Frederick dives into his new book, Mastering Voir Dire and Jury Selection, Fourth Edition: Gain an Edge in Questioning and Selecting Your Jury, which expands on ways to ask the right questions that will uncover needed information.

Data Literacy Guidance for Law Firms

What does it take to become data literate and data competent as a lawyer? LexisNexis CPO Jeff Pfeifer discusses the various tools and training that help lawyers gain deeper insights into the data they use on a daily basis and how to use it.

Innovations in the Future of Law Practice with Bill Henderson

In today’s ever-changing legal landscape, the Institute for the Future of Law Practice (IFLP) facilitates programs that help both law students and practicing lawyers develop specific skills. Bill Henderson discusses the motivation behind the founding of IFLP.

Birds, Books, And Blogs. Oh My!

A bird is loose in the Harvard Law School library, the relevance of libraries is questionable in the age of digital research, and Deadspin’s entire staff resigned causing a significant loss to the blogosphere. Plus, arguments against Halloween.

Inside the Controversial Purdue Pharma Settlement

Jonathan Novak from the Fears Nachawati Law Firm discusses the proposed settlement by Oxycontin maker, Purdue Pharmaceuticals LP, Purdue Pharma’s bankruptcy filing, and whether the remaining states will agree to a settlement or take their fight to the courts.

Exploring Gambling Addiction and the Path to Recovery

It’s common for legal professionals to struggle with addiction, but gambling addiction is often overlooked. Jeff Wasserman talks in-depth about his experience as a recovered addict and what he’s doing now to help others struggling with the same issue.

The Law Student Roundtable: Examining Stress–Offering Hope

The new Law Student Division chair, Johnnie Nguyen, discusses the division’s upcoming mental health initiatives including a roundtable discussion to highlight the factors driving student mental health issues.

It’s Almost Time for Law Jobs!

It’s finally happening. Law Jobs for Humans 2.0 is this Friday. We’ve already told you a bunch about it: it’s got more of what you liked and less of what you didn’t from the first Law Jobs for Humans; it’s got some of the “most interesting and innovative career renegades” in legal scheduled to speak at the event; we’ll even likely discuss Clio’s recent enormous fund-raising event in some way, shape, or form.  

We’ve also nailed down the list of speakers (mostly). We’ve got one or two still figuring out some specific logistics but expect this list and the associated agenda to be just about as final as it’s going to get. 

Innovators Runway 1: Early career edition

  • Miguel Willis, Presidential Innovation Fellow, LSAC
  • Felicity Conrad, Co-Founder & CEO, Paladin
  • Rebecca Williams, DC Legal Hackers Founder and Board Member
  • Jason Dirkx, Knowledge Management Counsel, Littler
  • Nikki Shaver, Director, Global Knowledge Management. Paul Hastings LLP
  • Selena Lucien, Founder, Small Claims Wizard

Innovators Runway 2: Mid-career edition

  • Nicole Clark, Founder and CEO, Trellis Research
  • Marla Decker, Managing Director, Lake Whillans
  • Linda Tvrdy, Founder, Daisy Debt
  • Tunji Williams, Co-founder and CEO, dealWIP and Director of Strategy for Transaction Management, Litera

Discussion: Building a Perfect Human

  • Carlos Gamez – Client & Partner Lead – Legal Technology Innovation, Thomson Reuters
  • Lori Lorenzo – Managing Director Chief Legal Officer Program, Deloitte
  • Jacquie Champagne – Director of Talent Acquisition at Elevate Services

Between/in addition to these amazing panels, we’ll also have a speed networking event and plenty of time for attendees to connect and discuss the new legal employment landscape.

We’ve basically tripled attendance from the last go-round in Chicago, so only a few tickets remain. If you want to meet some amazing people and talk about future-proofing your career. This Friday is the time. Law Jobs for Humans 2.0 is the place. See you there.

Tax Court Decides Whether A Tax on Marijuana Sales Is An Unconstitutionally Excessive Fine

(Image via Getty)

Current tax laws are killing the buzz for legal marijuana sales dispensaries. Section 280E disallows any business-related expenses connected to the trafficking of Schedule I controlled substances, which includes marijuana. The IRS and the courts have consistently held that Section 280E is clear on its face when they mean all expenses are nondeductible. However, this next case takes an interesting twist as the taxpayer and its lawyers try to show the U.S. Tax Court that Section 280E is unconstitutional.

Last month, the U.S. Tax Court decided Northern California Small Business Assistants, Inc. v. Commissioner. There, the Court considered whether Section 280E of the Internal Revenue Code is an excessive fine in violation of the Eighth Amendment.

The facts are typical. The taxpayer was a corporation operating a marijuana dispensary business in California where it is legal. The IRS audits the taxpayer and disallows all of the taxpayer’s business expenses citing Section 280E. The IRS then proposes $1.5 million dollars in taxes and penalties for one year. The taxpayer disagrees and petitions the U.S. Tax Court.

The case was interesting enough to warrant a decision from all 15 judges. While all of them ruled that the IRS’s disallowance was proper, the judges were split on whether Section 280E implicates the Eighth Amendment of the Constitution. To do so, the court had to determine whether Section 280E had the effect of a penalty.

In the majority opinion, 10 of the judges held that Section 280E’s disallowance of marijuana-related business expenses was not a penalty. The majority acknowledged that Congress had the unquestionable Constitutional right to create tax laws. Furthermore, they also noted that the Supreme Court has held that tax deductions are granted only by Congress.

In the dissenting opinions, three of the judges ruled that Section 280E was a fine, although they joined the majority siding with the IRS because there was no finding of excessiveness. Judge Gustafson starts by stating that the Constitution allows Congress to tax income. The Constitution does not define income but Judge Gustafson states that income is defined as gain which is only determined after all relevant businesses expenses are deducted from gross income. To tax solely on gross income could lead to an unfair situation where the taxpayer may not have any money to pay the tax.

For example, if a taxpayer earned $100 but his business expenses totaled $150, he would realize a loss of $50 and under normal circumstances he would not be taxed because it would add insult to his financial injury. If only his gross income was taxed he would have to pay income tax on the $100 even though he has no money after expenses.

Judge Gustafson states that for a payment to be a penalty, it must be imposed as punishment for an unlawful act. It does not matter whether a payment is labeled differently, like a tax, a tariff, or a fee. In this case, according to the legislative history, Section 280E was enacted with the explicit goal of deterring and penalizing marijuana trafficking. By disallowing deductions, income taxes will increase and the profit motive will decrease. He believes this has the effect of punishment even though it is not explicitly stated as such.

Two judges had no opinion on whether Section 280E was a fine since there was no determination on excessiveness.

So while the majority of the Tax Court judges ruled that Section 280E was not a fine, three held that it was a fine and could be excessive in violation the Eighth Amendment of the Constitution. And two are on the fence. If they can disagree, so could other judges and even other circuits.

Professor Bryan Camp over at the TaxProf Blog believes that the majority got it right.

He believes that Congress has the Constitutional right to tax gross income even if business deductions are disallowed. Why? Because if Section 280E can be a penalty, then so can Section 163(h) which allows the ever-popular home mortgage deduction. In other words, the home mortgage interest deduction punishes renters for not owning a home. Also, since hobby losses are nondeductible, he believes that this would open the doors for tax protestor hobbyists to argue that they are being penalized.

In short, he’s arguing that this can open Pandora’s Box.

Should Congress have the “unquestionable” power to tax as the majority of the Tax Court judges believe? Most believe that it is better for the legislature to pass tax laws as they are directly accountable to the people. But what if Congress wanted to pass a law that taxes a certain group of people differently? For example, some believed that the Tax Cuts and Jobs Act’s $10,000 limitation on state tax deductions unfairly targeted high tax states where the residents predominately voted Democratic. It was so bad that it got to the point where New York and other blue states sued. That lawsuit was recently dismissed.

While any tax law can treat people differently, when does it get to a point of being a penalty that can implicate the Eighth Amendment? Perhaps a good place to start is to determine whether a tax punishes or subsidizes behavior. Some taxes are known to be penalties. For example, “sin taxes” are taxes imposed on certain goods (such as alcohol and cigarettes) that are known to be harmful to society.

But some tax laws act as subsidies. For example, the federal government provides tax credits for the purchase of alternative fuel cars in order to boost sales and promote use of alternative fuel. These credits do not covertly penalize those who purchase gasoline engine cars assuming the prices of the cars were fairly steady before the tax and will continue to remain that way.

Some tax laws can be neither subsidies nor penalties. It can just be a means to raise revenue. Or to curb abusive transactions.

Of course, the line can be difficult to draw. Reasonable people will have different opinions.

While the Tax Court’s majority decision dealt another blow to marijuana advocates trying to fight Section 280E, the split decision opened the door for courts to consider whether the Section may be unconstitutional. If enough judges disagree, the issue may end up being decided in the high court.


Steven Chung is a tax attorney in Los Angeles, California. He helps people with basic tax planning and resolve tax disputes. He is also sympathetic to people with large student loans. He can be reached via email at sachimalbe@excite.com. Or you can connect with him on Twitter (@stevenchung) and connect with him on LinkedIn.

Another Biglaw Firm Matches Bonuses, Plus Extra Cash For High Billers

Bonus season really is the best time of the Biglaw year. Sure, you probably worked a ton and had to sacrifice your personal life to do so, but at least you get a nice big bonus in recognition of all that hard work. But just how generous will those bonuses be?

That question was largely answered when Milbank acted first in announcing bonuses, then Cravath matched that scale. Now Cadwalader has announced that their associates will also be compensated on those market rates as well.

And the market scale that pretty much all the big firms will be following is:

Class of 2019 – $15,000 (pro-rated)
Class of 2018 – $15,000
Class of 2017 – $25,000
Class of 2016 – $50,000
Class of 2015 – $65,000
Class of 2014 – $80,000
Class of 2013 – $90,000
Class of 2012+ – $100,000

Plus, the exciting part for those who’ve notched a particularly busy year, is that associates and counsel who bill over 2,200 hours will receive bonuses of 120 percent of their class year. Which is a nice extra way to say thank you. Bonuses will be paid by the firm in February. (Full memo on the next page.)

Remember, we depend on your tips to stay on top of important bonus updates, so when your firm matches, please text us (646-820-8477) or email us (subject line: “[Firm Name] Matches”). Please include the memo if available. You can take a photo of the memo and send it via text or email if you don’t want to forward the original PDF or Word file.

And if you’d like to sign up for ATL’s Bonus Alerts (which is the alert list we also use for all salary announcements), please scroll down and enter your email address in the box below this post. If you previously signed up for the bonus alerts, you don’t need to do anything. You’ll receive an email notification within minutes of each bonus announcement that we publish. Thanks for your help!


(Click to enlarge)

headshotKathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).

More Senior Traders Are Taking Their Butter And Going Home* From Goldman Sachs

*”Home” in this case being BlueCrest Capital Management.

Many Attorneys Aren’t Passionate About Their Jobs (And This Can Help You)

Some people enter the legal profession because they are truly passionate about the law. I’m sure all of us know individuals who genuinely love practicing law, and not to sound disingenuous, but I definitely count myself among these lawyers. Many people enjoy the advocacy, research, and writing involved with being a practicing attorney.

However, there are also a number of lawyers who simply go through the motions in their jobs as lawyers. Most people just work to pay the bills, and many attorneys view their jobs as 9-to-5 gigs about which they are not passionate. This phenomenon is found in every industry, and most people work jobs that they are not enthusiastic about simply to make a living.

Even if attorneys were once passionate about the law, it is also easy to get burned out in the legal profession. Constant conflict with adversaries, clients, and coworkers can take a toll on even the most hardened attorneys. Furthermore, most lawyers handle repetitive matters, and it is easy for numerous lawyers to fall into a routine without making any extra effort. Many firms also squeeze their attorneys to bill more hours with fewer resources in order to compete in the competitive legal market. All of these conditions can burn out overworked attorneys, and in many ways, the burnout plaguing lawyers is similar to the stress experienced by physicians, teachers, and many other professionals.

Of course, none of this information is new to many people within the legal industry. We all know how grueling legal work can be and are aware of the challenges many attorneys face. However, what may be less clear is that lawyers can use this understanding about the legal industry to better serve their clients. Knowing that most attorneys simply do the minimum when working on matters, and will likely not put in much extra effort, can give lawyers valuable perspective when facing off against adversaries.

For instance, at several points in my career, I have been involved with cases that could have been easily dismissed because of prior releases, service of process issues, and other matters. For some of these cases, other attorneys have refused to get involved with these matters, because they were nervous that the cases would be subject to a motion to dismiss or summary judgment motion, and the cases would be dismissed. Of course, some attorneys do not want to handle matters that might require more work than normal, and dealing with a dispositive motion can greatly complicate a case.

However, motion practice can be time-consuming, and many attorneys do not go the extra mile by filing motions, even if a case could be dismissed because of a well-researched motion. Indeed, motions to dismiss often need to be filed within a short time period, and attorneys sometimes do not have the time nor the willingness to file such motions. In addition, summary judgment practice can be extremely exhausting, and it is often difficult to assemble all of the exhibits and papers necessary to file such a motion. It can also can take a substantial amount of time and effort to be apprised of all of the facts of a case, so some attorneys simply do not have enough information about a matter to effectively file a dispositive motion.

On several occasions in my career, remembering that many attorneys are underpaid and overworked has given me valuable perspective about litigation. As a result of this understanding, I have accepted matters and formulated case strategies based on the belief that my adversaries would likely not devote extra energy to litigating a case. This perspective has benefited my legal work, since I have conserved resources and provided advice to clients based on what I expected my adversaries would actually do in litigation instead of simply discussing my adversary’s options in a given case.

I do not mean to fault any attorneys for not devoting their full attention to their matters. As I know firsthand from working at a number of different law firms, attorneys are often overworked and demoralized in many roles. In addition, working for someone else can eliminate a major incentive to give one’s all to their job. One of the reasons why Biglaw firms have many advantages is because these shops pay employees more money and can expect their attorneys and staff to devote more energy to their matters. In addition, now that I run a law firm with my brother, I see how reaping more benefits from good representation can incentivize attorneys to work harder.

However, it is undeniable that many attorneys, like people in other fields, are not too passionate about their jobs, and usually just devote a minimal amount of effort to get by. If attorneys apply this understanding to their work, they can better strategize for the benefit of their clients.


Jordan Rothman is a partner of The Rothman Law Firm, a full-service New York and New Jersey law firm. He is also the founder of Student Debt Diaries, a website discussing how he paid off his student loans. You can reach Jordan through email at jordan@rothmanlawyer.com.

Morning Docket: 11.13.19

* A Florida woman who has a law degree but never passed the bar has been charged with stealing the identity of an admitted attorney. This was funny in My Cousin Vinny but not in real life. [Tampa Bay Times]

* Sarah Palin said she first learned of her husband’s divorce plans in an email from his attorney. Jeeze, that’s cold. [San Francisco Chronicle]

* A U.S. service member is challenging a ban on active military personnel suing their doctors for malpractice. [NBC News]

* The Louisiana Supreme Court has refused to revive a lawsuit against the NFL regarding a missed call at a Saints game. Hope the plaintiff is not a sore loser. [ESPN]

* Massachusetts lawmakers are considering whether to make coerced suicide a crime after the suicide of Conrad Roy III at the encouragement of his girlfriend. [CNN]

* A Nevada attorney has been disbarred for letting clients use her cellphone during jailhouse consultations. Seems harsh — prisoners use cellphones in Orange is the New Black all the time… [Bloomberg Law]


Jordan Rothman is a partner of The Rothman Law Firm, a full-service New York and New Jersey law firm. He is also the founder of Student Debt Diaries, a website discussing how he paid off his student loans. You can reach Jordan through email at jordan@rothmanlawyer.com.