Legal Research

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What Old Sin Will Haunt the Next Supreme Court Nominee?

The National Law Journal

It doesn't take much to derail, or at least significantly distract, a U.S. Supreme Court nomination. Remember Samuel Alito Jr.'s long-ago membership in a group that wanted Princeton University to remain all-male? Or John Roberts Jr.'s ruling upholding the arrest of a 12-year-old girl for eating a single french fry in a subway station? Even David Souter had his trial by innuendo, with scattered rumors that the lifelong bachelor was gay. What will be the Achilles' heel for President Barack Obama's nominee?

Lockstep Model Loses Favor as Law Firms Pressure Partners

The Legal Intelligencer

As law firms across the U.S. begin to roll back associate salaries and move toward a merit-based compensation model, firm leaders speaking at a conference this month pointed to sea changes occurring in the legal industry. With increased capital needs, changes in billing practices and an excess of attorneys, "meganumbers in terms of compensation are just going to disappear," says one recruiter. "We're now a business like every other American business," said one firm chairman.

ITC Patent Disputes Continue to Provide Steady, Profitable Work

IP Law & Business

In a year that ended dismally for many law firms, one subsection of intellectual property litigation continued to provide steady -- and profitable -- work: the patent disputes heard by the International Trade Commission known as 337 investigations. An annual survey by IP Law & Business found that 36 cases were filed in 2008 -- a slight drop from 2007, but 12.5 percent more than in 2006. Law firms, eager to tout their expertise in this area to potential clients, are beefing up their ITC practices.

Judge Raps Plaintiffs Counsel, Dismisses Class Action Against Washington Mutual

The American Lawyer

In a harshly worded order, a federal judge has tossed a securities fraud case against the now-defunct Washington Mutual, describing plaintiffs' pleadings as "verbose" and "disorganized." Last year, Bernstein Litowtiz filed a 388-page consolidated complaint on behalf of the Ontario Teachers' Pension Plan Board in the class action, which named former WaMu officers and directors, underwriters and the auditing firm Deloitte & Touche. The suit alleged that shareholders were misled about the company's financial results.

Receiver in Stanford Case Asks for $20 Million

The Associated Press

The receiver appointed to take over the companies owned by Texas billionaire R. Allen Stanford filed a request Friday for nearly $20 million in attorney fees. The money would be paid from funds formerly controlled by Stanford's companies, the same funds that would pay back any potentially defrauded investors. Receiver Ralph Janvey heads up a huge team of lawyers and financial experts from 14 firms trying to track down money from what the government has alleged is a "massive Ponzi scheme."

Woody Allen Headed to Trial Against American Apparel in the Case of the Purloined Image

The American Lawyer

As a cultural icon, Woody Allen has few modern peers. But is his image, used briefly in billboard ads for clothing company American Apparel in New York and Los Angeles, worth $10 million? A jury will have to answer that question in a trial set to begin today in Manhattan federal court. The tabloid-ready case pits Allen against a company known for risque ads and the alleged sexual escapades of its founder, Dov Charney. The ads featured photos of Allen dressed as an orthodox Jew from his movie "Annie Hall."

More IP Angst as Fish & Richardson Cuts 35 Lawyers, 85 Staff

The American Lawyer

IP, frequently considered a recession-proof practice, took another hit last week when Boston-based IP firm Fish & Richardson cut 35 lawyers and 85 support staff, slashing its head count by more than 7 percent. A study this month by BTI Consulting Group found that a majority of 370 corporate counsel at Fortune 1000 companies were planning to cut IP litigation spending by more than 7 percent. With patent cases taking longer, firms are becoming less willing to invest in expensive litigation.

SEC Lawyers Accused of Possible Insider Trading

The National Law Journal

Just as Bernie Madoff seemed to be gracing fewer front pages, the Securities and Exchange Commission's inspector general dealt another blow to the agency's lawyers. According to the IG's report, one lawyer in the division of enforcement and one in the chief counsel's office are being investigated by the FBI for possible insider trading. Perhaps even more embarrassing, the report finds that there is "essentially no compliance system in place" to ensure that SEC employees are not trading on nonpublic information.

Trump Strikes Back in Co-Op Fight Over Unpaid Rent

The American Lawyer

A new chapter has opened in a lawsuit brought by the co-op board of Manhattan's Trump Plaza seeking to evict Donald Trump's company. Never known as one to back down from a fight, Trump and company have fired back. In a new suit, Trump's lawyers accuse the cooperative of shoddy repairs to roofs and drain lines that allowed water to infiltrate two townhouses it rented. Trump's lawyer also claims the earlier suit is inaccurate, as Trump has paid the rent. Trump's suit seeks more than $18 million in damages.

Ted Stevens' Attorney Fees at Least $1 Million

The National Law Journal

Nobody's ever said Ted Stevens' defense team would come cheap. Stevens paid his lawyers at Williams & Connolly between $1 million and $5 million, according to a financial disclosure report the former Alaska senator filed with the Senate Ethics Committee. In the filing, Stevens brings up the disputed value of work done at his Alaska home, which prosecutors alleged he failed to report, stating "my alleged knowledge of who did what and the extent to which I believed they were paid for were contested at trial."

Report: Two Skadden M&A Partners Leaving for Kirkland

The American Lawyer

Two corporate partners are leaving Skadden for Kirkland & Ellis, drawn partly by the chance to build Kirkland's M&A practice into a top-tier group but also likely by compensation factors, according to The New York Times. M&A lawyers David Fox and Daniel Wolf worked together on such matters as BHP Billiton's $150 billion bid for Rio Tinto. Fox was reportedly one of Skadden's most highly compensated partners. Wolf is one of the youngest lawyers to have made partner at Skadden, promoted six years ago at age 30.

Producer May Sue Attorney for Arbitration Costs

New York Law Journal

A production company that lost the right to produce a play owned in part by Barry Manilow can sue its former attorney for arbitration costs stemming from the dispute, a New York state appeals court has ruled. However, the court found that, although incorrect legal advice may have induced Snorkel Productions' continuing investment in the would-be Broadway play, the bulk of the company's losses resulted from its failure to obtain financing.

Federal Prosecutor Questions Rove on Fired U.S. Attorneys

The Associated Press

A prosecutor Friday questioned former presidential aide Karl Rove, trying to determine his role in the Bush administration's firing of U.S. Attorneys. It was the first time Rove has faced questioning in the controversy, which has lingered because the Bush White House resisted efforts to question Rove and others. So far, the investigation has turned on whether then-Attorney General Alberto Gonzales and other officials told the truth about the dismissals, which e-mail traffic suggests may have originated in the White House.

Security Standards for Outsourcing

Special to Law.com

When outsourcing, an organization should contract with a service provider to maintain its own security standards. Equifax outsourcing transaction counsel W. Carter Santos considers SAS 70, PCI data security and ISO 27001 as tools to gauge the effectiveness of a provider's security.

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FMC Turns to Social Networking to Find Law Firms

Corporate Counsel

Houston-based manufacturer FMC Technologies is looking to update its roster of outside counsel and hire firms that embrace innovation, technology and, especially, alternative billing arrangements. But its general counsel, Jeffrey Carr, isn't holding an auction or putting out a request for proposals to find them. He's using Legal OnRamp, a social networking site for lawyers. Says Carr, "We like doing things differently. Some people call us grenade throwers. Some people call us crazy. But it works."

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In Defense of the Billable Hour: Bad, or Just Misunderstood?

The National Law Journal

The imminent demise of the billable hour has been predicted for years, maybe now more than ever. And yet, like Rasputin, no matter whether one tries to stab it, shoot it or poison it, the billable hour somehow survives. But is it really as bad as clients think? Trial lawyer Press Millen argues that clients may be misguided if they make firm retention decisions mainly based on hourly rates. Millen gives five reasons why looking only at hourly rates doesn't tell the full story when it comes to the bottom line.

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