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LAW.COM Newswire Highlights January 26, 2009

By David Badertscher, PLL

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Lawyers' Indictment in Huge Ponzi Scheme Shocks Legal Circles

Daily Business Review

Two Florida attorneys indicted in a nearly $1 billion Ponzi scheme known as Mutual Benefits are anything but fly-by-night hucksters known to be associated with a pyramid con. Michael McNerney and Anthony Livoti Jr. are well-respected advocates and have been fixtures in the legal community for decades. Lawyers for the men say that they were acting in their ethical role as attorneys advising Mutual Benefits.

Lawyers Warned to Be Wary of Client E-Mail Scams

Texas Lawyer

Houston lawyer Richard T. Howell Jr., whose firm was scammed out of $182,500 by a client who hired him through e-mail, says he is talking publicly about the situation so he can prevent other lawyers from making the same mistakes. "I'm a capital 'D' Dumbass," says Howell, who has practiced law for 23 years and is a partner in Buckley White. Because he is responsible, Howell says, he did not ask his partners to help him cover the loss. To reimburse his firm, he says he had to borrow money on a home equity loan.

Former Brocade CEO's Play for Pardon Falls Short

The Recorder

It turns out that stock option backdating poster child Gregory Reyes went looking for clemency in the waning days of the Bush administration. Once a prince of Silicon Valley, the former Brocade CEO suffered a conviction in 2007 on 10 counts, securities fraud among them. To date, he is one of two executives the government has successfully prosecuted for backdating-related crimes.

Attorney-Litigant Seeks Judge's Recusal due to Stalking Allegation

Texas Lawyer

Of the hundreds of recusal motions filed against trial court judges in Texas each year, one pending against Judge Carl Ginsberg may be the strangest. In a suit in Ginsberg's court that involves two attorneys and the breakup of a law firm, the judge has refused to grant a litigant's motion to recuse him, even though last June Ginsberg notified the sheriff's department about an incident in which he believed the litigant was stalking him. Legal experts disagree as to whether Ginsberg should be recused for bias or prejudice.

Case Proceeds Despite Typos, Failure to State Damages in Complaint

New York Law Journal

Several mistakes in a complaint -- including typographical errors, the failure to state damages and the misspellings of both defendants' names -- are insufficient causes to dismiss the action, a New York judge has ruled. "With all due respect to counsel," the defendants' attorney had written in an affirmation in support of a motion to dismiss the case, "your Affiant in my almost 25 years of practice, has rarely seen a pleading so devoid of content and specifications."

Disbarment Urged for N.J. Judge Convicted of Travel for Tryst With Underage Boy

New Jersey Law Journal

Former Judge Stephen Thompson will be behind bars at least six more years on a sex crime conviction but ethics authorities still want to ensure he'll never practice law again. At his criminal trial, his main defense to charges of downloading child porn in his chambers and going to Russia to have sex with an underage boy was that the trauma from combat injuries in Vietnam caused his pedophiliac tendencies. The remaining question: whether he has a mental disability that makes disbarment necessary to protect the public.

Litigation Spurs Paul Weiss' Increase in Revenue, Profit Figures

The American Lawyer

Paul, Weiss, Rifkind, Wharton & Garrison had a solid 2008, with both revenue and profits moving up. Gross revenue reached $692 million, up 6.3 percent from 2007, and profits per equity partner climbed to $2.65 million, up 2.3 percent. At $1.07 million, revenue per lawyer was essentially flat. Headcount at the firm also grew by 6 percent to almost 650 lawyers. While the firm was mum about its financial performance, Paul Weiss' numbers undoubtedly are due to its strong litigation practice.

Bringing a 'Better Clash' of Ideas to the U.S. Supreme Court

Legal Times

Some of D.C.'s top Supreme Court advocates were far from the Marble Palace last week, turning up at the University of Texas School of Law in Austin for a conference on the rise of appellate advocacy and the 10th anniversary of the launch of the Texas Office of the Solicitor General. Morgan, Lewis & Bockius' R. Ted Cruz, former Texas SG, recalled when state representation was "painfully, weepingly horrible," but said the advent of state SGs has brought a "far better clash of ideas" to the high court.

Attorney Removed From Death Penalty Case After Making Arguments While Suspended

The Recorder

A well-respected appellate lawyer has incurred the wrath of the California Supreme Court while indefinitely delaying an already decades-old death penalty case. The high court on Wednesday removed Cynthia Thomas from the case of Charles Moore and referred her to the State Bar for "appropriate disciplinary proceedings." Her mistake? Arguing Moore's case before the Supreme Court on Dec. 2 while ineligible to practice law.

Defense Attorney to Resign From Criminal Case Against Blagojevich

The Associated Press

Illinois Gov. Rod Blagojevich's chief defense attorney, Edward Genson, announced Friday that he is bailing out of the fraud and bribery case against the governor, strongly hinting that his client refused to listen to his advice. Blagojevich, facing charges of fraud conspiracy and solicitation of bribery, was impeached by the Illinois House earlier this month and faces trial in the Senate.

Former Black Panther to Appeal Dismissal in Libel Case

Fulton County Daily Report

The attorney for one-time Black Panther Party Chair Elaine Brown says her libel case against a lecturer at Emory University's School of Law is "not even close" to being over, despite being thrown out of court this month. A Georgia judge dismissed claims that statements made by Kathleen Cleaver, the widow of former Black Panther Party Minister of Information Eldridge Cleaver, defamed Brown by characterizing her as an FBI informant in the 1970s.

Baker & McKenzie Lays Off 20 Legal Staff in London

Legal Week

Baker & McKenzie has cut 20 legal positions in London and is set to consider layoffs among its support staff. The firm confirmed Friday that 20 associates and paralegals have lost their jobs, affecting several practice areas, including corporate. In addition, the firm has launched a review of its secretarial and support services. Baker & McKenzie is one of a growing number of U.S. firms to formally reduce staff numbers in London.

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U.K. Gauges Social Networks' Net Worth

Legal Week

The tendency to hype the benefits of online social networking and blogs in some U.S. legal circles might not be matched by lawyers and law firms in the U.K. "My career has not been helped by any social networking site and I do not read legal blogs," says a U.K. partner at Linklaters.

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How Juror Misconceptions Affect Patent Trials

IP Law & Business

Lawyers know that copying doesn't need to be present to prove patent infringement. But patent trials get played out on an emotional playing field, as well as a legal and technical one. Getting painted as a copycat is just one danger that defendants face in the courtroom. Defendants are up against other powerful cultural narratives that strongly favor a patent holder from the get-go. Polls show jurors are hardwired to believe that corporations will "lie, cheat, and steal" to get an edge on the competition.

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Midsize Firms Find the Only Certainty Is Uncertainty in 2009

The Legal Intelligencer

The new year has begun, but a damaged economy continues to keep midsize firm leaders largely in the dark about expectations for the next 12 months. Stephen A. Madva, chairman of Montgomery McCracken Walker & Rhoads, acknowledges "the most upbeat comments by the best and brightest" financial experts say the economy could see an uptick in the third quarter, but notes, "the best and brightest are wrong on a regular basis." Still, a number of firms anticipate new work from increased governmental regulation.

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Law Firms Keeping An Eye On Client IOUs

The Connecticut Law Tribune

Not surprisingly, the economic downturn is causing more clients to fall behind on paying legal bills. The trend became more noticeable in December, when some firms pull in as much as 30 percent of their annual revenue with year-end collection efforts. Some firms are making adjustments in the current economic climate. "We've negotiated more payment plans under the theory that it is better to get paid over time than not to get paid at all," says Bill Maass, executive director of Finn, Dixon & Herling.

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Full post as published by New York Supreme Court Criminal Term Library on January 26, 2009 (boomark / email).