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Fla. Court Upholds $24 Million Verdict Against Tobacco Companies

Daily Business Review

A nine-year-old products liability case produced a major victory over tobacco companies Wednesday when a Florida appeals court upheld a $24.8 million award to a man who died of cancer shortly after trial. The appellate panel offered no legal reasoning in its unsigned one-paragraph decision in John Lukacs' case against cigarette makers Philip Morris USA, Brown & Williamson and Liggett Group. Several plaintiffs attorneys said the decision is a landmark that will embolden those fighting tobacco companies.

Drugstore Chain Denies Owing Kasowitz $7 Million 'Success Fee'

New York Law Journal

Duane Reade Holdings has denied owing Kasowitz Benson the $7 million "success fee" the firm claims it is owed in a suit filed last month. The law firm said its former client refused to pay it part of a more than $39.5 million settlement in a contract dispute between the drugstore chain and ATM operator Cardtronics. In an answer filed in New York court, Duane Reade countered that Kasowitz had no valid and enforceable agreement for the fee, was not involved in the final stages of the litigation and had already been paid.

Former Client Sues Gibson Dunn Over $1.3 Million in Fees

The American Lawyer

A California venture capitalist who has admitted to bribing New York state pension officials has sued Gibson Dunn & Crutcher over $1.3 million in fees the firm seeks for representing him during the investigation that precipitated that admission. Elliott Broidy's lawsuit -- filed Monday in Los Angeles Superior Court -- comes in response to a Gibson Dunn motion to have an arbitrator in New York resolve the fee dispute between the two parties. Broidy wants the disagreement handled in California.

Sonnenschein Denied Rehearing in Former Partner's Suit Over Fees

The National Law Journal

The D.C. Court of Appeals denied Sonnenschein Nath & Rosenthal's request for an en banc rehearing in its legal battle with former partner Douglas Rosenthal on Thursday, meaning the firm could now potentially owe more than $1 million in damages. Rosenthal sued Sonnenschein in 2005, saying he had been unfairly compensated for millions in fees he generated for his old firm, including those from representing the families of victims killed in the bombing of Pan Am Flight 103.

Impressive Financial Gains Spell a Good Year for Cravath

The American Lawyer

Cravath, Swaine & Moore joins the exclusive ranks of New York firms that achieved a significant jump in both revenue and profits per equity partner last year. The firm's revenue rose 7 percent to $569 million; PPP increased 8 percent to $2.7 million. Cravath's M&A group handled multibillion-dollar deals for such clients as Bristol-Myers and Time Warner, and on the securities side, the firm represented Mead Johnson in the first IPO of 2009. Unlike some firms, Cravath did not improve its numbers by cutting its ranks.

9th Circuit Judge Bucks Tide on Ashcroft's Liability for Detention

The Recorder

Ninth Circuit Judge Milan Smith Jr. drew a torrent of opposition from Republican-appointed colleagues over his decision last year to allow a suit against John Ashcroft to go forward. The case, brought by a Muslim American who claims the Justice Department abused a material witness statute to lock him up, drew a call for en banc review, which failed. Eight 9th Circuit judges dissented Thursday. But Smith fought back, simultaneously issuing a rare concurrence to the denial of en banc review.

Supreme Court Unveils New Web Site Design

The National Law Journal

The Supreme Court's long-awaited Web site redesign was unveiled Thursday at supremecourt.gov, bringing the site into the 21st century only a few years late. The announcement of the new site indicates the site is a work in progress, with new features to be added over time. The Court's 10-year-old Web site had been criticized as clunky and outdated, especially in comparison to the high courts of other nations that have Web sites with virtual tours and material for students, among other updated features.

N.Y. Courts May End Civil Unions Performed Elsewhere, Appeals Panel Says

New York Law Journal

A New York court has the power to decide whether a civil union entered into outside the state should be dissolved, an appeals panel ruled Thursday. Citing the state's "clear commitment to respect, uphold and protect parties to same-sex relationships," a five-judge panel reversed a lower court that had dismissed for lack of jurisdiction a complaint by a woman seeking to end the civil union she entered into with her former partner in Vermont.

2 Texas Attorneys Indicted in $20 Million Mortgage Fraud Case

Texas Lawyer

Two Texas attorneys are among 40 people indicted in connection with an alleged $20 million mortgage fraud involving 114 houses. The federal indictment alleges that Daniel Ayers and Anthony Flores, who owned and operated Ayers & Flores, were part of a group of real estate agents, property finders, mortgage brokers, escrow officers, property appraisers and "straw buyers" who were solicited to obtain money from lending institutions "by making materially false and fraudulent pretenses, representations and promises."

Cadwalader Adds Three Partners From Proskauer

New York Law Journal

Cadwalader has added a three-partner group from Proskauer Rose. Louis Solomon, Hal Shaftel and Colin Underwood will expand Cadwalader's complex commercial dispute capabilities. Solomon, who co-chaired Proskauer's litigation practice until last year, will bring with him a roster of clients, including PepsiCo, Bristol-Myers Squibb and AriZona Iced Tea. Michael Lazaroff, previously senior counsel at Proskauer, will also join Cadwalader as special counsel. Solomon declined to say if associates would follow.

Quantum Meruit Gives N.J. Firm Clean Sweep in Fee-Collection Suit

New Jersey Law Journal

A New Jersey law firm stiffed on its fees by a corporate client can collect from the company's principals, a state appeals court held, overturning a ruling that absolved four stakeholders of liability for $116,000 owed to Cole, Schotz, Meisel, Forman & Leonard. The four did not dispute that they benefited from the representation, but argued they shouldn't have to pay the bill because they never agreed to be responsible for it. But the court said they share in the company's liability under the doctrine of quantum meruit.

Former Nixon Peabody Lawyer Settles With SEC in Insider Trading Case

The National Law Journal

Melissa Mahler, a former Nixon Peabody lawyer, has reached a financial settlement with the Securities and Exchange Commission to resolve the federal insider trading case filed against her last year. Under the terms of the settlement, Mahler does not have to admit or deny the allegations lodged against her in exchange for paying back the $5,800 she made off the illegal trade, interest on that amount and additional penalties.

Hooters Workers File Class Action Over Tips, Uniforms

The Recorder

Five current and former Hooters workers filed suit Tuesday in Sacramento County Superior Court on behalf of a proposed class of nonmanager employees in five of California's Central Valley franchises. The complaint claims the restaurant chain workers were improperly forced to share tips with managers and to buy their own uniforms, among other alleged wage-and-hour violations. The complaint draws on the Hooters Employee Handbook to argue that workers' uniforms and manicured appearance form a "cornerstone" of the company.

iHelp for Lawyers From CES and Beyond

The American Lawyer

The Consumer Electronics Show 2010 had a twist: The most-anticipated product announcement -- Apple's iPad -- came after the show ended. Alan Cohen looks at the iPad's offerings, along with a handful of other new tech from CES to round out his picks for the best new offerings for lawyers.

Visit Legal Technology

Some New Partners Take Nontraditional Paths

The Recorder

New Keker & Van Nest partner Steven Ragland worked as a juggling clown after college. And new Allen Matkins partner Michael McFadden spent 18 years in nonlegal jobs before taking his first law firm job. Stories like theirs show there's more than one route to a law firm partnership.

Visit the Career Center

Bankruptcy Lawyers Troubled by Recent High Court Ruling

The Connecticut Law Tribune

Bankruptcy lawyers will need to remain cautious about what sort of advice they offer clients, following a ruling by the U.S. Supreme Court last week. The justices ruled the portion of the 2005 bankruptcy reform act that bars lawyers from advising clients to take on "any debt" is constitutional, though it may be less restrictive than first thought, only applying to advice involving improper behavior. Still, lawyers are unhappy at being muzzled in any way by a law that they don't believe should apply to them.

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