Legal Research

Justices Skeptical of Patent-Holders' Claim

Law.com

In a closely watched case that may determine how far companies can go when demanding fees for patents they've licensed, several Supreme Court justices Wednesday seemed open to limiting patent-holders' rights in connection with the use of their products by downstream purchasers in the manufacturing process. The case involves the doctrine of patent exhaustion, which Chief Justice John Roberts said is "the subject of great confusion," based on conflicting high court and Federal Circuit precedents.

False Affidavit Gets Brocade's Former CEO an Extra Six Months in Backdating Case

The Recorder

Inexact drafting by lawyers for former Brocade CEO Gregory Reyes may have gotten an extra six months tacked onto his stock option backdating sentence. Federal Judge Charles Breyer sentenced the former Silicon Valley icon to 21 months in prison Wednesday, but indicated he would have imposed a 15-month sentence had Reyes not submitted a sworn affidavit to the court saying he did not backdate. Reyes filed that declaration in support of former HR chief Stephanie Jensen's motion to sever her trial from his.

Supreme Court Limits Trusts' Tax Deductions

The Associated Press

The Supreme Court upheld limits Wednesday on income tax deductions for trusts and estates, ruling against the family that created Pepperidge Farm. The Court said trusts ordinarily may not deduct the full cost of investment advice on their income tax returns. Those expenses are deductible only when they exceed 2 percent of adjusted gross income, the same limits faced by individual filers, Chief Justice John Roberts said for a unanimous Court.

Insider Trading: Defense Bar's Next Growth Stock?

The Recorder

There's a new generation of insider traders -- and the Securities and Exchange Commission is taking notice. Just this Tuesday, the San Francisco office of the SEC brought charges against two local employees of accounting firm PricewaterhouseCoopers for trading on inside information about pending deals. In that case and others, the agency is focusing its efforts on gatekeepers like accountants and attorneys, according to lawyers inside and outside the SEC.

Firm Can't Keep Referral Fees Owed to Lawyer Who Has Been Disbarred

New Jersey Law Journal

It's risky business to take the referral of stacks of files from a personal injury lawyer about to be shut down by ethics police. Some of the cases may be gems. But costly reinstatement motions often are required when cases are in tatters and many claims may be total duds. Now comes worse news. A New Jersey appeals court said Tuesday in a case of first impression that the new firm's extra work doesn't entitle it to retain the referral fees when the original lawyer is disbarred.

Crowell & Moring Wins Clients $6 Billion in Damages Over Airliner Bombing

Legal Times

U.S. District Judge Henry Kennedy ordered Libya and six of its officials Tuesday to pay roughly $6 billion in damages to the families of Americans killed in the 1989 bombing of a French airliner. The case stems from the suitcase bombing of UTA Flight 772, which caused the airplane to crash in central Niger, killing all 170 passengers and crew on board. Significantly, Crowell & Moring says this is the first case in which Libya appeared in court and had attorneys defend the case through final judgment.

U.S. Supreme Court Upholds New York State's Judicial Election System

New York Law Journal

The U.S. Supreme Court unanimously upheld Wednesday the constitutionality of New York state's convention system for nominating Supreme Court justices. Though four justices expressed reservations about the process, the Court held that, while the system might be unfair, it is not unconstitutional. Wrote Justice Antonin Scalia in the majority opinion, "Party conventions, with their attendant 'smoke-filled rooms' and domination by party leaders, have long been an accepted manner of selecting party candidates.

Popcorn Eater Sues Kroger Claiming Flavoring Caused Lung Ailment

The Associated Press

A suburban Denver man believed to be the only consumer to develop "popcorn lung" from regular servings of microwave popcorn filed a lawsuit Tuesday claiming injury from the artificial butter flavoring that previously sickened only popcorn factory workers. The lawsuit names The Kroger Co. and two of its divisions, and food distributor Inter-American Products Inc. Microwave popcorn plant workers have filed hundreds of lawsuits against the companies that produce or use the butter flavoring.

Federal Court Gives U.S. Access to Texas City's Land in Border Fence Suit

The Associated Press

A federal judge has ordered a small city in Texas on the border with Mexico to temporarily turn over its land to the federal government so it can begin to build a border fence. A U.S. district judge ordered the city of Eagle Pass, about 100 miles southwest of San Antonio, to "surrender" 233 acres of city-owned land. The government had warned the city, which opposes the fence, it would sue under eminent domain laws to secure access to the property, declaring it is "taking" the property for 180 days.

When 'Web Presence' Creates Jurisdiction

New York Law Journal

The globalization of Web business models creates thorny issues for determining personal jurisdiction. Attorney Stephen Kramarsky untangles the complexity of "Web presence" for jurisdictional purposes in light of recent federal cases in the Southern District of New York.

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Pitching to a Prospect and Getting Your Ducks in Order

The Legal Intelligencer

With the new year, it's time to dust off those marketing shoes and get to work. Where do you start? Consultant Stacy West Clark says the answer never changes: current clients. They are your No. 1 source of new business, and you should be spending 80 percent of your marketing time expanding these relationships, she says. Clark explains how you can get in the potential client's door, prepare for and hold a pitch meeting with that prospective client and then follow up to ensure you get the business.

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Lawyers: GCs Need to Be Prepared in Case of Product Recalls

Fulton County Daily Report

If the past two years are any indication, more GCs will need to be ready for recalls. Experts advise corporate counsel to plan in advance for such eventualities so they can have a structure in place with an in-house team and outside lawyers who can be called quickly to manage a recall -- investigating the source of the problem, finding the affected products, getting them out of the hands of consumers quickly, choosing words carefully and generating helpful publicity.

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Large Firms Pay Many Texas Associates Bigger Bonuses

Texas Lawyer

Many associates are richer due to bonus money. Large firms in Texas paid bonuses roughly equivalent to what they paid associates for 2006 work. The generous bonuses are in addition to salary raises that many big firms gave associates in 2007 as the Texas base salary for first-year associates increased to $160,000. "We felt like some of the associates ... were working excess hours, and we felt we should provide a special bonus to them," says Stanley Mayo, managing partner of Patton Boggs' Dallas office.

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