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Madoff Led Off to Jail After Guilty Plea

New York Law Journal

Bernard Madoff pleaded guilty Thursday to 11 felonies as part of the biggest Ponzi scheme in history and was led off to prison for what may be the rest of his life. Madoff recited the details of his crimes but attempted to keep separate the legitimate side of his company from the illegitimate side and protect those nearest to him. Speculation was rampant that Madoff's guilty plea was pursuant to an agreement with the government, but Acting U.S. Attorney Lev Dassin said there is "no agreement whatsoever."

Former Heller Partners Face Tug-of-War Over Profits

The Recorder

The Brobeck, Phleger & Harrison estate sued a half dozen of its former partners this week, seeking to protect any claims the estate may have to profits the partners took from the bankrupt Brobeck when they joined Heller Ehrman, which is now in bankruptcy court itself. Similarly, Heller's creditors took steps last week to assert their rights to sue that firm's former partners to recover lost profits.

Sidley Austin and Blank Rome Add to Latest Layoff Totals

The National Law Journal

The law firm layoff carnage continued on Thursday, with at least four firms handing out pink slips to attorneys and staffers. Sidley Austin made the biggest cut of the day, laying off 89 associates and staff attorneys, as well as about 140 staffers in its U.S. offices. The firm is expecting its work slowdown to continue for 12 to 18 months. Philadelphia-based Blank Rome confirmed that it cut 27 associate and 52 staff positions. Baker Botts in Houston and Gardere Wynne Sewell in Dallas also felt the layoff pain.

London's Norton Rose Explores Reduced Work Hours as Layoff Preventative

Legal Week

Norton Rose is set to institute a radical flex-work plan as the London law firm moves to head off job cuts. If approved, the groundbreaking measure, which would include partners, would see staff earn 85 percent of their salary for a four-day workweek, while sabbatical leave of four to 12 weeks would be paid out at 30 percent of base salary. Norton Rose is one of the few top 50 U.K. law firms to avoid formal layoffs so far.

First Prenuptial Pact by Hermes Heir Is Valid One, N.Y. Judge Finds

New York Law Journal

A New York premarital agreement signed by an heir to the Hermes fortune is valid, even though a subsequent French agreement the couple signed may have failed to include exclusions anticipated by the initial agreement, a Manhattan judge has held. Mathias Guerrand-Hermes argued that the court should throw out the New York prenuptial on the grounds of "mutual mistake," but the judge ruled that any potential mistake occurred after the first agreement was ratified, and therefore had no bearing on its validity.

5th Circuit Vacates Part of Katrina Insurance Case Award

The Associated Press

Jurors shouldn't have awarded money to a south Louisiana couple for their allegation that State Farm Fire and Casualty acted in bad faith when it denied their homeowner claim after Hurricane Katrina, the 5th U.S. Circuit Court of Appeals ruled on Wednesday. The ruling vacates a portion of a 2007 judgment that awarded Michael and Judy Kodrin about $356,000 in damages and penalties, plus attorney fees. The appeals court upheld a jury's decision that State Farm owed the couple about $200,000 for wind damage.

Feds Turn Their Sights on Third Pa. Judge as Part of Corruption Probe

The Legal Intelligencer

Federal authorities are looking at Judge Michael Toole as part of their investigation into alleged corruption at the Luzerne County Courthouse, sources confirm. The investigation appears to stem from an allegation that Toole may have gotten a payment from attorney Robert Powell. Feds have previously charged that former Judges Mark Ciavarella Jr. and Michael Conahan accepted more than $2.6 million in kickbacks from Powell and another source while Powell was one of the owners of a private juvenile detention facility.

2nd Circuit Rejects Ineffective Counsel Claim for Second Time

New York Law Journal

A judge's decision to vacate a defendant's sentence because his lawyer gave an unreasonably sunny assessment of his chances to win an acquittal at trial has been reversed by the 2nd Circuit. The court said it decided on direct appeal in 2001 that it was the defendant's lies to his own lawyer that led counsel to proceed to trial with high hopes of winning, and that the district court judge was essentially, and impermissibly, treading the same legal ground when he granted the defendant's habeas petition in 2005.

Senate Confirms WilmerHale Partner as Deputy Attorney General

Legal Times

The Senate voted 65-28 Thursday to confirm David Ogden as deputy attorney general, pushing aside criticism of his clients in private practice. A partner at WilmerHale since 2001, Ogden will be the No. 2 official at the Justice Department, responsible for the DOJ's day-to-day operations. Criticism of Ogden has focused on his early work at WilmerHale in obscenity-related First Amendment cases, in which his clients included librarians, booksellers and Playboy magazine.

Justice Thomas Receives Warm Welcome at Howard Law

Legal Times

Speaking Wednesday at Howard University School of Law for the first time since 1994, Supreme Court Justice Clarence Thomas received a warm reception from students and faculty, including two standing ovations. Thomas' talk focused primarily on his 2007 book, "My Grandfather's Son." In the past, the conservative justice has not always been welcome before African-American audiences. But there was little controversy among Howard students surrounding Thomas' visit, according to one first-year law student.

11th Circuit Upholds Gun Ban in Atlanta Airport

The Associated Press

A federal appeals court Thursday upheld a judge's decision to toss a lawsuit seeking to allow licensed gun owners to carry weapons in parts of the world's busiest airport. The decision prompted gun rights advocates to renew their push for a legislative remedy to the court battle. U.S. District Judge Marvin Shoob had dismissed the lawsuit last year on grounds that GeorgiaCarry.org failed to prove that a new Georgia law would allow weapons into unsecured areas of Hartsfield-Jackson Atlanta International Airport.

Feds Accused of Vindictiveness in Drug Case

The Recorder

Federal prosecutors in Northern California have been ramping up mandatory minimum sentences, and defense lawyers have been probing avenues of attack. Taking the offensive, Assistant Federal Public Defender Daniel Blank filed papers this week accusing the government of vindictive prosecution, after prosecutors doubled defendant Jay Kent's minimum prison exposure from five to 10 years in a drug case. The government sought added penalties because Kent refused to turn on his co-defendant, Blank wrote.

Landmark Decision Reached in First Hong Kong Insider Trading Trial

The American Lawyer

Hong Kong's first criminal trial for insider trading has resulted in the conviction of a former investment banker and four other defendants. Ma Hon Yeung, a former vice president at BNP Paribas Peregrine Capital Ltd., passed confidential information to his girlfriend and three family members about the proposed privatization of Egana Jewelry & Pearls Ltd., a matter on which he was working. All four then traded in Egana shares before the company announced its plans to privatize in July 2006.

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Attorney Video Tips: Cameras

Special to Law.com

If you want to create your own video marketing content, know that most cameras sold today are good enough to develop and distribute video via the Web, says attorney Gerry Oginski. But you need to know the different types of cameras before deciding which is right for you and your budget.

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Top GCs Protest Proposals for Financial Disclosures on Potential Litigation Losses

The National Law Journal

More than 135 general counsel and executives from Fortune 500 and 100 companies are protesting a controversial proposed amendment to financial accounting statements on corporate disclosures of litigation-related loss contingencies. The proposed amendments would require companies to make significantly more extensive disclosures in financial statements regarding loss contingencies, even when the company expects to prevail or does not believe there will be a material cost to settle the matter.

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Laid-Off Lawyers Might Need to Adjust Expectations

Fulton County Daily Report

High-paying big firm jobs are scarce and competition is stiff, but there are other opportunities if job seekers expand their search, say several recruiters. This is also a good time for those who "might not have been loving what they do" to re-evaluate and think outside prior limits, says recruiter Stephen D. Stone. "They need to be leveraging all their contacts for big law, mid-law, small law and no law." Meanwhile, contract positions can be a way to get out of one's pajamas and keep the bills paid.

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In Tough Times, Look Out for Legal Malpractice Claims

Texas Lawyer

Economic downturns often increase the risk that lawyers will face unhappy clients complaining of legal malpractice. While some lawyers may think they have nothing to fear, since their practices do not involve areas of law many blame for the economic collapse, such a belief is unfounded, notes Jett Hanna, senior vice president at Texas Lawyers' Insurance Exchange. Some legal malpractice risks are not tied to any one specialized practice area but simply become more common when the economy goes bad.

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