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Best Legal Department -- 2009

Corporate Counsel

In this year's Best Legal Department competition, you might say that everyone's a winner. Overstatement? Sure. But it sums up the hard choices Corporate Counsel judges faced. In tallying up our final grades, there wasn't a whole lot separating the leading contenders. In the end, though, we once again picked a department that prevailed against adversity, this time against a backdrop of financial meltdown.

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Holland & Knight Sued Over Documents in $360 Million Ponzi Scheme

The American Lawyer

Investors who lost a total of about $4.5 million in a Ponzi scheme allegedly run by fund manager Arthur Nadel have sued Holland & Knight, claiming the offering documents the firm helped Nadel prepare failed to mention key facts -- including that Nadel had been disbarred for fraud, according to the complaint. The documents are private placement memos, which enticed investors to put money in one of several funds allegedly controlled by Nadel, since charged with using those funds to orchestrate a $360 million scheme.

An Alternative Short List for the High Court

The National Law Journal

A dozen Supreme Court scholars, asked by The National Law Journal for their picks for a nominee to succeed retiring Justice David Souter, put some off-the-grid choices on their short lists, including private-practice lawyers and politicians as well as law professors and judges. All agreed that the president should select a woman or another nominee who would bring diversity to the Court. The candidate who got the most nods is described by one scholar as "a liberal for the Obama era."

In Loss for Big Tobacco, Calif. Supreme Court Loosens Standing to Sue Under Proposition 64

The Recorder

Big Tobacco and other major businesses took a hit Monday when California justices ruled that class actions over alleged fraud can go forward, even if it's impossible to tell whether every plaintiff was harmed by deceptive ads. The ruling clarifies that Proposition 64, passed in 2004, doesn't prevent average citizens from acting as so-called private attorneys general in class actions under the state's unfair competition law. Some experts had argued that the ballot measure limited UCL suits' filing to government officials.

Coalition Seeks Disbarment of Bush Lawyers Over Interrogation of Terrorism Suspects

The National Law Journal

A collection of organizations filed complaints Monday with five State Bar associations, accusing former Attorneys General John Ashcroft, Alberto Gonzales, Michael Mukasey and nine other former Bush administration lawyers of violating professional standards by sanctioning the use of torture on terrorism suspects. The complaints are the latest in a campaign to ratchet up the pressure on the Obama administration to investigate Bush administration officials for their roles in blessing harsh interrogation techniques.

Paralegal Charged With Stealing Funds From One Law Firm to Pay Restitution to Another

The Legal Intelligencer

A former paralegal at Norristown, Pa.-based High Swartz has been arrested for allegedly stealing more than $100,000 from the firm and using the money to pay restitution in a case where she has been found guilty of stealing $285,000 from a New York law firm, according to the Montgomery County DA's office. An internal audit, done after paralegal Kathy Foer-Morse was fired by High Swartz for attitude and work performance, revealed the alleged theft, according to the DA's office.

High Court Rules in Pregnancy Leave Case, Agrees to Hear Challenge to SOX Board

The National Law Journal

In a decision likely to increase the pressure on President Barack Obama to appoint a woman to the Supreme Court, the justices ruled Monday that employers may give less credit for long-ago pregnancy leave than for other medical leave in calculating pension benefits. The justices also agreed to hear a case testing the constitutionality of the Sarbanes-Oxley Act provision creating the Public Company Accounting Oversight Board and to consider newspaper magnate Conrad Black's challenge to his 2007 fraud conviction.

Woody Allen, American Apparel Settle Suit for $5 Million

The Associated Press

Woody Allen agreed Monday to a $5 million settlement in his lawsuit accusing American Apparel of using an image parodying him as a rabbi without his permission. The settlement, to be paid by American Apparel's insurance company, was announced on the same day that a trial was to start in Manhattan federal court. Allen's lawyers said the settlement may be the largest amount ever paid to settle a lawsuit brought under state privacy statutes. American Apparel president Dov Charney said it was the insurer's decision to settle.

Judge Weighs Dismissing Lawsuit Against Author Who Called Trump a Millionaire

The Associated Press

Donald Trump is known for putting a positive spin even on news that doesn't seem positive. But there is one way to get him down: Call him a millionaire. Trump, who says he's a billionaire, is suing the author of a book in which three unnamed sources said Trump's net worth is between $150 million and $250 million. The Donald claims it was malicious, and it hurt his business. A judge said Monday she would rule within two months on whether the real estate mogul's lawsuit should be dismissed.

It's Official: Paul Maher Is Leaving Mayer Brown

The National Law Journal

Mayer Brown Vice Chairman Paul Maher, who had been on sabbatical at the law firm when he was passed over for one of the firm's new management posts, has provided his official resignation from the firm. In a revamp of its governance structure, the firm said earlier this year that it was eliminating the vice chair positions and appointing Kenneth Geller, a partner in Washington, D.C., who served as a second vice chairman with Maher, to serve as the firm's new managing partner.

Newspaper Subpoenas Nine Judges in Libel Case

New York Law Journal

As part of its defense against a libel action brought by a New York court judge, the New York Post has subpoenaed nine current and former Brooklyn judges, including four former administrative judges. Brooklyn Supreme Court Justice Francois Rivera filed the libel suit in 2006, claiming the Post defamed him in a series of four articles published in October 2005, which stated that the judge had allegedly paid Brooklyn Democratic Party officials $50,000 for his seat.

Trustee Objects to Kirkland Hire in General Growth Bankruptcy

The American Lawyer

When General Growth Properties -- the second-largest owner of shopping malls in the U.S. -- filed for Chapter 11 last month, the company retained an all-star team of bankruptcy lawyers from Weil, Gotshal & Manges and Kirkland & Ellis to serve as restructuring counsel. Now, Reuters reports that a U.S. trustee is objecting to Kirkland's role in the case, claiming the firm is conflicted and that two qualified co-debtors counsel will perform "excessive and duplicative services" and increase costs "exponentially."

Supreme Court Turns Away Medical Marijuana Challenge, Steinbeck Copyright Case

The Associated Press

The Supreme Court won't hear another challenge to California's decade-old law permitting marijuana use for medical purposes. The high court on Monday refused to hear appeals from San Diego and San Bernardino counties, which say the justices have never directly ruled on whether California's law trumps the federal controlled substances laws. Among other actions, the Court also rejected an appeal by a son of author John Steinbeck over the publishing rights to "The Grapes of Wrath" and other early works.

DOJ Accuses Drugmaker Wyeth of Cheating Medicaid

The Associated Press

The Justice Department and more than a dozen states have joined in two whistleblower suits filed in federal court in Massachusetts, accusing one of the United States' largest drugmakers of cheating Medicaid programs out of hundreds of millions of dollars by overcharging for a stomach acid drug. The government is seeking financial penalties against New Jersey-based Wyeth of up to three times the amount lost by Medicaid.

In-House Reaches Out With Web 2.0

Corporate Counsel

Thousands of in-house attorneys are no farther than a Web browser. Whether they're looking for another view on a general issue of law, suggestions of best practices or insights into a vendor, in-house lawyers can find a powerful tool in social networks tailored to their needs.

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Creating Opportunities Through the Diversity Pipeline

GC California Magazine

Many corporate law departments are focusing on the need to address the "diversity pipeline" into the legal world to ensure an expanding stream of diverse individuals equipped to become successful attorneys and leaders in the profession. Here is a sampling of programs that help to attract, advise and advance students and professionals of color into all aspects and phases of a legal career, including leadership and management positions.

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