My apologies to begin with, This is something of an angry letter – and
I’m sorry if that seems inappropriate. But I am hereby declaring
November 5 “Business Law Day”. Page 1 of Canadian papers today have two
lead stories: the Microsoft decision and the collapse of the hostile
takeover bid for Air Canada. I will leave discussion of Microsoft to my
US colleagues. There will ndoubtedly be further chapters to both
stories. But the sheer vacuousness of business school faculty or
administrators thinking that law in not a foundation course slams home
with today’s lead stories.

Let me put the Canadian story in context. For the past 11 weeks Onex has
been engaged in a hostile takeover bid for Air Canada. Millions of
dollars have been thrown at the battle by Onex and Air Canada
(yesterday’s estimates had $50 million per company over 11 weeks). Now
consider this quote from the Globe and Mail “Mr. Justice André Wery of
Quebec Superior Court ruled Onex’s bid illegal because it violated a
federal statute that limits any one shareholder to owning 10 percent of
the carrier. Judge Wery said Onex’s mechanism for skirting the
10-per-cent rule ‘is arguably an ingenious one, but...its underlying
legal conclusion is specious.’  The decision shocked the Onex team. They
always knew the Quebec court might rule against them, but lawyers
advising the buyout specialists had said a more likely outcome was
either no decision, or a judgment in their favour.” The story was
accompanied by a photo of Gerry Schwartz, the thwarted bid-king, being
escorted into his bad news conference by a phalanx of apparently cloned
young advisors. Perhaps Gerry and the gang would have done a whole lot
better with a tad more diversity and certainly more wisdom.

What was the role of the lawyers here? Were they really ever listened
to? Did anyone take them seriously? Why would anyone think there might
be no decision (not the norm folks). So what we are left with is two
organizations with financial troubles spending multi-millions of dollars
in a war that enhanced nothing, where the same monies might have been
spent on a couple of new planes that arguably would have added value.

And some dare to tell us that business law is not essential to a
manager’s education. How much better would be Schwartz’ and Gates’
positions on the 6th November, if they had ever listened to good legal
strategy. Were Gerry’s
clones as well versed in legal issues as they were in matters of high
finance? If they were, why weren’t they just plain smarter?

That’s my rant for the day, but please mark your calendars for what
should become an annual commemoration of the turning point for the role
of law in our business schools. The mighty indeed fell. To quote the CEO
of Air Canada:
“ [The fifth] is a great day for the law.”.

All of this is a long winded way of getting to the point that the
Executive Committee has listened closely to the discussions about where
we should be going in getting the message across about the essential
quality of business law to the education of future managers and
professionals. Over the next few months some of the processes will
become clearer. I thank everyone for their suggestions. I particularly
thank those who have agreed to help or will agree once asked. These are
tasks that require far more people than those of us on the Executive
Committee and we are most fortunate we have so many to call upon.
Likewise, thanks to the major publishers who continue to be a very
active part in this effort.

Finally, one reminder and one update. Tri-State is meeting next weekend
in Battle Creek, Michigan. If you want further information, please
contact Frank Strier at 310 243 3472 or [log in to unmask] Dan
Herron and Art Marinelli (next year’s much appreciated program chair for
the Baltimore meeting) will be there on behalf of the National
Executive.

The update: the strategic planning exercise continues with an on-line
meeting on the 23rd November. We are getting to more detailed
implementation issues which ties in also with the theme of this report.

Thanks again for all your interest and support and I’ll report more in a
couple of weeks.

Sally Gunz