Something I find fascinating is the extent to which the behaviors and practices of the legal profession have evolved over the years, and the extent to which they haven’t. In this unique episode, I take a look at some intriguing insights from the legal files of my great-grandfather, Lloyd Wright Sr., a pioneering entertainment lawyer who represented some of the biggest names of the era.

Join me as I explore the captivating case of Jane Wyman’s divorce from Ronald Reagan in 1948, which offers a glimpse into the world of celebrity marriages, for-cause divorces, and the evolution of legal practices, as well as an interesting look into the history of flat-fee billing.

Get full show notes, transcript, and more information here: https://www.agileattorney.com/49

Transcript
Jon Grant:

One of the things that is fascinating to me is the extent to which the behaviors and practices of the legal profession have evolved over the years and the extent to which they haven't.

Jon Grant:

If you've been listening to me for any length of time, you've probably heard me mention that I'm a fourth generation lawyer.

Jon Grant:

And I actually say that with a bit of an asterisk.

Jon Grant:

Neither one of my parents are lawyers, but my mom's second husband, who until recently was my stepdad, is one.

Jon Grant:

His life and practice is a whole cautionary tale in and of itself that I won't get into today.

Jon Grant:

But it's true that two of my four great grandfathers were lawyers starting in the early part of the 20th century, and they're kind of fancy lawyers at that.

Jon Grant:

My dad's grandfather was a guy named Fred Verheyen.

Jon Grant:

He was an attorney in Butte, Montana, which might sound like he would have a small town practice until you realize that Butte, Montana had a population as high as 100,000 people in the early 20th century, at least three times bigger than it is today.

Jon Grant:

And that's because it was a mining boom town, right?

Jon Grant:

And Fred Verheyen was an attorney for a man known as the Copper King, William Andrews Clark, who became one of the world's richest men, helping provide the raw materials for the millions and millions of miles of copper wire needed to build North America's electricity and telecommunications grids.

Jon Grant:ay west to Los angeles in the:Jon Grant:

clark Jr.

Jon Grant:

Who, among other things, founded the Los Angeles Philharmonic and built the Hollywood Bowl Amphitheater.

Jon Grant:

Now, I presume that Fred was involved in drafting at least some of the legal agreements for those things, but I haven't seen the actual artifacts to prove it.

Jon Grant:

My other attorney ancestor was my mom's grandfather, Lloyd Wright Sr.

Jon Grant:

And he's the one who inspired a significant percentage of his lineage to pursue legal careers.

Jon Grant:

And he was pretty big time.

Jon Grant:

He helped pioneer the field of entertainment law during Hollywood's golden age, and he went on to be an ABA president, was the longtime president of the International Bar association, and he even chaired what came to be known as the Wright Commission, which was one of the first US Government studies that went deep into its own national security practices, the needs for national security, and some of the shortcomings.

Jon Grant:

So it's safe to say that Lloyd Wright was pretty inspirational.

Jon Grant:

Therefore, it should be no surprise that my grandfather, his brother, and a whole host of my aunts and uncles and Cousins either became lawyers or married a lawyer, or both.

Jon Grant:

I sometimes joke that part of why I tend to understand lawyer culture pretty well is I grew up with it.

Jon Grant:

And again, that's not exactly true.

Jon Grant:

Right.

Jon Grant:

I was brought up in Central California, pretty mainstream upbringing.

Jon Grant:

My mom was a schoolteacher.

Jon Grant:

My dad had a handful of careers.

Jon Grant:

But it's not completely wrong either.

Jon Grant:

So in today's episode, which is coming out in the middle of the holiday season, I thought I'd do something completely different and take you on a little trip down memory lane, or at least history lane, because these are not my direct memories.

Jon Grant:

And read to you from the files of Lloyd Wright Sr.

Jon Grant:

Scans of which circulated around my family on a thumb drive a bunch of years ago.

Jon Grant:

Some of these documents provide a really fascinating window into what law practice was like in the middle part of the 20th century.

Jon Grant:

And I think there's some lessons that we can learn from them today.

Jon Grant:

You're listening to the Agile Attorney Podcast.

Jon Grant:

I'm Jon Grant.

Jon Grant:

I help legal professionals of all kinds build practices that are profitable, sustainable and scalable for themselves and the communities they serve.

Jon Grant:

So I'm sitting here literally with a file directory open on my computer from this thumb drive sitting in front of me.

Jon Grant:

And I'll start by just reading some of the names of these scanned PDFs, because my great grandfather had one of the coolest client lists you could possibly imagine, certainly of the era.

Jon Grant:

I've got Al Jolson on here.

Jon Grant:

I've got Amos and Andy, which a little bit of a problematic one.

Jon Grant:

I've got Buddy Rogers, Burl Ives, appropr to the holiday season, Cecil DeMille, Charlie Chaplin.

Jon Grant:

It is a pretty impressive list of folks, but the one I'm going to focus on today is Jane Wyman.

Jon Grant:

Jane Wyman was an extremely well known actress in her time, but is probably better known to history as the first wife of actor and eventual President Ronald Reagan.

Jon Grant:e two of them were married in:Jon Grant:out a month premature in June:Jon Grant:

And I bring that up because I have to wonder how much of an impact a tragedy like that had on their marriage and their relationship.

Jon Grant:

They were both busy working actors, but it had to have been so hard.

Jon Grant:an file for divorce in May of:Jon Grant:

Now, one thing, it is hardly fair to Jane Wyman to characterize her just as Ronald Reagan's first wife.

Jon Grant:So incredibly,:Jon Grant:

And while I haven't seen the movie, the role sounds brutal.

Jon Grant:

I'm not going to go into it because this is a holiday season podcast episode.

Jon Grant:

But suffice it to say that portraying this character had to have been incredibly emotional.

Jon Grant:

And in fact, there's actually a quote from Ronald Reagan, who at one point during the divorce said, I think I should name Johnny Belinda as a co respondent in this divorce.

Jon Grant:

And back in the day, a co respondent was often someone that a spouse had committed adultery with.

Jon Grant:

So Reagan kind of blames this film in a way for breaking up the marriage.

Jon Grant:

But I think there was probably a lot of stuff going on.

Jon Grant:

So the first thing I'm going to read you out of my great grandfather's files is a newspaper clipping, and it's a cutout from the front page of the Los Angeles Times.

Jon Grant:

And it was written by the Times gossip columnist, a woman named Luella Parsons, whose work was nationally syndicated.

Jon Grant:

And if you know the Harry Potter stories, Luella Parsons was the Rita Skeeter of her day.

Jon Grant:

Here's as much as I can read from the article.

Jon Grant:

The bottom corner is missing, and I wasn't able to find the original online, so I'll get as far as I can.

Jon Grant:

I also, I don't have a date on this article, but the headline is Jane Wyman to Sue Reagan for Divorce.

Jon Grant:

And it beneath a photo.

Jon Grant:

The headline on the caption on the photo says family Breakup.

Jon Grant:

And the picture is a very candid sort of happy shot of Ronald Reagan holding his daughter Maureen, Jane Wyman smiling next to him.

Jon Grant:

It's all very Hollywood.

Jon Grant:

She's wearing a fur coat and gloves, and she's got sunglasses clipped on it.

Jon Grant:

He's very debonair with a pocket square and sort of a tweed jacket.

Jon Grant:

So here's the text of the article itself.

Jon Grant:

The trial separation of Jane Wyman and Ronald Reagan has failed.

Jon Grant:

In this coming week, Jane will sue her husband of eight years for a divorce.

Jon Grant:

They were married Jan.

Jon Grant:,:Jon Grant:

The marriage reception was at my home, and I, with all their other friends, am genuinely shocked because they were unable to work out their problems.

Jon Grant:

Jane's attorney, Lloyd Wright, said that a property settlement has already been made.

Jon Grant:

Also, arrangements for the care and custody of their two children, Maureen, age 7, and Michael, age 3.

Jon Grant:

The children will live with their mother, and their father will be permitted to see them anytime he wishes.

Jon Grant:

Although attorney Wright was vague about when and where the divorce will be filed, Jane has confided to friends that she will establish residence in Las Vegas and get her legal freedom immediately.

Jon Grant:

When I talked to Ronnie last, he was hopeful that Jane would give up this divorce idea.

Jon Grant:

He said he believed they would be together for the next 15 years.

Jon Grant:

But Mrs.

Jon Grant:

Reagan apparently had other ideas.

Jon Grant:

The trouble started when Ronnie accepted the presidency of the Screen Actors Guild and devoted much of his time to the issues that are now troubling Hollywood and the world.

Jon Grant:

And then there's some other paragraphs that I can't make out all of, because this is where the tear starts.

Jon Grant:

But I think that gives you a pretty good snapshot.

Jon Grant:

It's crazy to me that this is a personal account, right?

Jon Grant:

This is very gossip columny.

Jon Grant:

This isn't something that I think we see so much these days.

Jon Grant:

So some interesting historical notes in here.

Jon Grant:

That bit about moving to Las Vegas.

Jon Grant:

So this was an era where if you wanted to divorce your spouse, you had to sue for it and establish legal cause.

Jon Grant:

And you couldn't really settle your divorce because under the laws at the time, the state maintained an interest in upholding the marriage.

Jon Grant:

So you had to prove to a judge and sometimes a jury that you had actual grounds for divorce, and.

Jon Grant:

And the evidence to prove that those grounds were valid.

Jon Grant:

And that means that divorces at the time could get really ugly and a lot of dirty laundry could get dragged out into the public.

Jon Grant:

As you can imagine, this was especially true for celebrity couples like Reagan and Wyman.

Jon Grant:

And I know a lot of my listeners do family law, and I know that you see some ugly things, but I think this era took it to a whole different level.

Jon Grant:

And probably the closest thing we've had recently is the whole Johnny Depp and Amber Heard drama, which I have to admit, I mostly steered away from.

Jon Grant:But back in the:Jon Grant:

Now, the state still had an interest in the relationship, so the person suing for divorce still had to prove in court that their reasons were valid.

Jon Grant:

But Nevada's evidentiary standard was much, much lighter.

Jon Grant:

So you didn't have to bring forward the litany of sordid details that you needed in other states to meet your burden of proof and have your divorce be granted by the courts.

Jon Grant:

The catch was that you had to be a Nevada resident in order for the Nevada courts to have jurisdiction over your Marriage establishing residency wasn't too onerous, but it did require that you actually reside in Nevada for a full six weeks before gaining legal residency.

Jon Grant:

There was a whole cottage industry in Nevada, especially outside of Reno, where these little transitory communities popped up known as divorce ranches.

Jon Grant:

And people from all over the country would travel to these places to wait out their six week requirement.

Jon Grant:

Now, Wyman presumably had enough money that she could rent a house or condo or maybe even a hotel room in Las Vegas instead.

Jon Grant:

But that's why the gossip column makes this passing mention of Las Vegas, right?

Jon Grant:

Readers at the time would have been very familiar with the legal tactic.

Jon Grant:

And it actually seems to be something my great grandfather facilitated on a semi regular basis to take this for cause divorce thing a little further.

Jon Grant:as governor of California in:Jon Grant:

And you have to think that his own divorce experience had something to do with that.

Jon Grant:

Specifically the gossip column intrigue that accompanied the breakup of his marriage when there was also this backdrop of this tragic losing a child at birth.

Jon Grant:

So it makes sense that Reagan was the guy to sign it.

Jon Grant:

And maybe the most important thing about no fault divorce, and you family lawyers know this, is that they let parties reach a settlement agreement to end their marriages without having to prove anything to the state and drag a whole bunch of cringy evidence into the public eye.

Jon Grant:

Today, every state in the US has no fault divorce laws, although they're pretty recent.

Jon Grant:rk implemented theirs only in:Jon Grant:

And not to be like a news cycle downer, but no fault divorce is becoming a timely topic again because some pretty prominent conservative politicians, including the speaker of the House, are openly advocating to roll them back and go back to having an era of for cause divorce.

Jon Grant:

Okay, so the other thing I want to read you from the file is a cover letter from my great grandfather Lloyd Wright to Jane Wyman.

Jon Grant:

And this was the COVID letter for a bill.

Jon Grant:

And it's pretty fascinating how it's worded.

Jon Grant:,:Jon Grant:

Jane Wyman, care of Business Administration Company, 360 North Camden Drive, Beverly Hills, California.

Jon Grant:

There were no zip codes at the time and here it says, dear Jane, in all unhappy situations where one is forced to engage professional services, the time comes when the bill must be paid.

Jon Grant:

I've gone over our records and the responsibility assumed, and I'm enclosing a statement for services rendered which I feel is more than fair.

Jon Grant:

There are a lot of involvements in a situation of this kind, the details of which I will not bother you with, but I'm sure you will understand, makes my responsibility in the matter all the greater, because I am more interested in you and in your friendship than I am in the money.

Jon Grant:

If you do not feel that the enclosed statement is absolutely more than fair, I would want you to be perfectly frank with me, for I mean just what I say.

Jon Grant:

I do not want any pecuniary advantage or gain, but only what I consider a modest compensation.

Jon Grant:have it paid during the year:Jon Grant:

I hope that you are happy and satisfied and that occasionally I will have the pleasure of seeing you.

Jon Grant:

Sincerely yours, Lloyd Wright.

Jon Grant:

Now that is a fascinating letter to me on a number of levels.

Jon Grant:

The actual bill isn't in the files, but there is a Wikipedia article I found that suggests that the billed amount was $7,500 and that Wyman actually negotiated it down to $5,000, which, as the letter clearly states, she was invited to do.

Jon Grant:

Adjusting for inflation, that original bill would have been close to $100,000 today.

Jon Grant:

There's also a cover letter in these files regarding Wyman's updated will, and it seems to me that the invoice probably covered both the divorce work and some estate planning.

Jon Grant:

So I want to dive into a couple of things about this letter and this legal bill.

Jon Grant:

First, since I've been doing a whole lot of podcast episodes lately around flat fees and value pricing, I need to point out that this was a flat fee engagement, and it seemed to cover both the divorce and the estate plan.

Jon Grant:

Now, it isn't exactly how I'd recommend going about doing flat fee work today.

Jon Grant:

In fact, it seems a little crazy to me that Wyman didn't know what the bill amount would be until things were already well underway.

Jon Grant:

But keep in mind, too, that hourly billing didn't really exist at the time.

Jon Grant:

The common practice, as I understand it, was for state or county bars to publish a rate card that outlined fees for various types of legal services.

Jon Grant:

So flat fee was more or less the norm.

Jon Grant:

Lawyers were allowed to charge more than the published rate if circumstances allowed, and I'm pretty sure $7,500 was quite a bit more than the published rate.

Jon Grant:y of an actual rate card from:Jon Grant:

And I came up empty.

Jon Grant:

But here's the thing about the rate cards that's fascinating.

Jon Grant:

It was actually considered an ethical breach under the legal regulations at the time for lawyers to charge less than the published rate.

Jon Grant:

A lawyer could get disciplined for undercutting their fellow bar members on price, which, if you're a legal ops nerd like I am, or you might have learned this in law school, or if you do antitrust law.

Jon Grant:

This is the reason that the U.S.

Jon Grant:supreme Court held in:Jon Grant:

And that was the Goldfarb versus State Bar of Virginia case.

Jon Grant:

Until then, price collusion wasn't just tolerated, it was mandatory.

Jon Grant:

The other thing that stands out to me is that my great grandfather took an approach to his bill amounts that is nearly identical to one that I use today in my practice.

Jon Grant:

But I came to it before I'd ever seen these files.

Jon Grant:

So I, too, let my clients write down their bills based on their perceived value of my work.

Jon Grant:

And I've been working that way for the entirety of my consulting practice.

Jon Grant:

And I did it in my law practice before that.

Jon Grant:

Only once has someone taken me up on it, and that was a client that wasn't really a great fit for me to begin with.

Jon Grant:

Now, I learned my approach through the writings and teachings of Patrick Lamb at Valorum Law, who uses what he calls a value adjustment line on all of his firm's bills.

Jon Grant:

And this is again, essentially inviting his clients to do the same thing my great grandfather invited Jane Wyman to do.

Jon Grant:

If you don't think the amount of this bill is fair, let me know and tell me what amount feels right to you.

Jon Grant:

I've got that value adjustment principle embedded in my consulting services contract.

Jon Grant:

So if any of you were thinking about hiring me to help with your law practice, but are worried about whether it's going to be worth it financially, I'm upholding a family tradition.

Jon Grant:

Like my great grandfather said, the relationships I build with my clients are more valuable to me than the money we exchange.

Jon Grant:

Okay.

Jon Grant:

I was originally going to read from some other letters, but I went deeper on this one topic than I expected.

Jon Grant:

But if you like this brief conversion from a legal operations podcast to a history podcast, let me know, and maybe I'll do another one in a few months.

Jon Grant:

I've actually got a pretty good chunk of source material for it, and some of the names I didn't get to reading off were people like Howard Hughes, Walt Disney, Gary Cooper, Marilyn Monroe.

Jon Grant:

So I'm not going to tell stories unless I can tie it in some way to some practical advice that I think that lawyers can use today.

Jon Grant:

But from flipping through the files, there are at least a handful where I think there are some lessons we can learn.

Jon Grant:

But to put a fine point on today's lesson, one of the tenets of agile is to value people and interactions over valuing processes and tools.

Jon Grant:

And it's clear to me from the Jane Wyman correspondence and a bunch of others that I didn't get to that Lloyd Wright Sr.

Jon Grant:

Truly valued people and relationships.

Jon Grant:

And I know that he had a pretty unique practice and that the kind of social interaction he had with his clients isn't something that's going to happen in most law practices today.

Jon Grant:

But I think we can all try to be conscious of the humanity and the situations our clients face and really strive to make sure that the amounts we ask our clients to pay us are genuinely worth it from their perspective, not just from ours.

Jon Grant:

That's it for today's episode.

Jon Grant:

If you enjoyed it, please forward it to a friend or a colleague who you think might benefit from a more agile approach to legal practice.

Jon Grant:

I also always appreciate if you rate or review me on Apple Podcasts or Spotify.

Jon Grant:

If you have questions, comments, or a suggestion for a topic you'd like to hear me cover, you can reach out through my website or shoot me an email@john.grantgillattorney.com this podcast gets production support from the fantastic team at Digital Freedom Productions, and the theme music is hello by Lunar.

Jon Grant:

Thanks for listening and I'll catch you again next week.

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