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Wilson Sonsini Cuts 45 Lawyers, 68 Staff

The Recorder

Blaming a down economy, Wilson Sonsini axed 45 lawyers and 68 staff Monday. The 660-lawyer firm laid off associates and of counsel totalling 6.5 percent of its attorney work force. About 9 percent of the firm's staff was let go. The firm also said it would be freezing associate salaries for the upcoming year. Wilson lawyers said the mood was somber Monday. Wilson Sonsini is the third of the four biggest Silicon Valley firms to lay off lawyers, with only Fenwick & West avoiding the chopping block so far.

Dreier Update: Everyone Is Concerned About Their Money

The American Lawyer

The committee of unsecured creditors in Dreier LLP's Chapter 11 case has asked a federal bankruptcy judge for permission to hire a firm that specializes in criminal law and forfeiture. The creditors are concerned that asset freezes and property seizures ordered by the court in the civil and criminal cases against Dreier will make it harder for them to recover any money. Also, lawyers for DiNoto Real Estate say $200,000 of the company's money is stuck in Dreier's escrow account -- and they want it back.

Supreme Court Justices Unanimous in Five Opinions

Legal Times

The Supreme Court on Monday issued five dissent-free opinions on key issues ranging from workplace discrimination to anti-dumping trade enforcement. The unanimous rulings continue a recent pattern that may be moving the Court closer to Chief Justice John Roberts Jr.'s stated goal of greater collegiality. So far this term, 10 of the 15 signed opinions have been unanimous. Another rare happenstance on Monday: Three of the decisions were authored by a single justice -- namely David Souter.

Calif. High Court: Law Allows for Binding Fee Arbitration

The Recorder

Clients in fee disputes with lawyers do not necessarily have a right to a trial if they agreed beforehand to binding contractual arbitration, the California Supreme Court ruled Monday. The unanimous opinion clarifies that while an arbitration under the state's Mandatory Fee Arbitration Act is nonbinding and lets either party seek a trial de novo, it also allows binding arbitration if both parties agree in writing.

Former Shareholder Wins Bid to Pierce Corporate Veil

New York Law Journal

A creditor of a metals trading company may seek to pierce the corporate veil to enforce a $5.1 million judgment against the company and two of its former directors, a New York state judge has ruled. The decision clears the way for an action to proceed over claims that the two directors formed a new company to avoid paying money owed for the sale of shares of Global Minerals and Metals Corp. A corporate lawyer not involved in the case said it exhibits "a common thread" seen in veil-piercing cases.

Taco Bell Loses Chihuahua Case -- Again

The American Lawyer

The Taco Bell Chihuahua litigation has had an ugly history, littered with defeats for the fast-food giant, disqualified law firms and tens of millions of dollars in damages payments. It perhaps reached its final chapter Friday, when a unanimous three-judge 9th Circuit panel ruled that Taco Bell couldn't pawn off $42 million in damages on its former advertising agency, TBWA Chiat/Day.

Rove Subpoenaed to Testify About U.S. Attorney Firings

Legal Times

Renewing a battle over whether Congress can compel testimony from former White House officials, House Judiciary Committee Chairman John Conyers Jr. issued a subpoena on Monday to former Bush administration adviser Karl Rove in an attempt to question him about the "politicization" of the DOJ and the U.S. Attorney firings, according to Conyers' office. Rove did not comply with an earlier subpoena related to the firings. "After two years of stonewalling, it's time for him to talk," said Conyers.

2nd Circuit: Disabled Attorney Entitled to Fees for 10-Year Fight for Benefits

New York Law Journal

Bad faith by an insurance company means that a lawyer injured while on a business trip will receive attorney fees incurred during the 10 years he fought for long-term disability benefits. Zbigniew Slupinski, formerly of Weil Gotshal, prevailed in two suits against First Unum Life Insurance for long-term benefits, but he was denied fees and prejudgment interest by a district court judge. The 2nd Circuit reversed, noting "considerable difficulty" with some of the lower court's findings, which it found inconsistent.

Lawyer to D.C. Circuit: This Case Is 'Bizarre'

Legal Times

Appellate judges hear a range of cases, of course, and circumstances vary widely. On Monday, a Washington, D.C., solo described the facts of his case as "about as bizarre as anyone could imagine." His client: a music performer who was convicted on firearm charges after he fired five shots in the air outside a D.C. police station. Court records indicate that the man shouted, "The police should leave us alone and let us sell our weed!" He subsequently dropped the gun -- and his pants.

11th Circuit Rejects Flag Pledge Case

Fulton County Daily Report

The 11th U.S. Circuit Court of Appeals on Monday said it would not revisit last year's ruling that upheld a Florida school policy requiring students to get a parent's permission to avoid having to recite the Pledge of Allegiance. A federal district judge had agreed that the rule "robs the student of the right to make an independent decision whether to say the pledge." But last July, an 11th Circuit panel said the Florida law protects parents' constitutional rights to bring up their children as they see fit.

Pa. Justices: OK to Execute 'Mentally Deficient' People

The Legal Intelligencer

In a decision that may prove to be a lightning rod in the debate over the use of the death penalty, the Pennsylvania Supreme Court has ruled 5-2 that any criminal defendant with mental impairments, short of being legally defined as "mentally retarded," can be executed for capital offenses. Justices ruled that those seeking waiver of the death penalty must show records noting a defendant's mental illness began before his or her 18th birthday. A dissenting justice accused the majority of being "draconian."

Attorneys in Pension Fight Caught in Gray Area Between Employee and Contractor Status

New York Law Journal

The most New York attorney Paul M. Callahan earned in 25 years of work for Duanesburg School District was $3,300 in 2007. Now, the state comptroller wants to revoke his four years of accrued pension credits for his service. Callahan is one of 47 attorneys identified by the comptroller as improperly classified as part-time employees -- who are eligible for state pension credits -- when they should have been listed as independent contractors. Says Callahan: "I was lumped in with the other alleged abusers of the system."

Eversheds Seals Singapore Launch With DLA Hire

Legal Week

Eversheds continues its Asian expansion with the opening of a new office in Singapore, while the firm is also in the early stages of preparation for a Hong Kong launch. The firm has recruited DLA Piper's former Singapore managing partner Desmond Ong to head up the new operation. The Singapore office will be Eversheds' second office in Asia in addition to its Shanghai base, with Hong Kong set to become the third.

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The Future of EDD in a Wounded Economy

Law Technology News

The electronic data discovery industry is a microcosm of the broader wounded economy. So, write this on your hand: Nothing is sacred. Anyone can disappear ... fast. No matter who you are using for e-discovery, now is the time to assess your exposure, mobility and disaster recovery strategy.

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Stage Is Set for Legal Labor Brawl

The National Law Journal

Business calls it "Armageddon." Labor says it's "a modest step." The Employee Free Choice Act, a proposal making the most dramatic changes in labor law in decades, is labor's highest priority this year. Business and labor appear to stand on opposite sides of an unbridgeable gulf on the proposal, with neither side willing even to whisper the word "compromise." But they do agree that the EFCA, if enacted, would make a fundamental shift in the balance of power in the workplace.

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Culling the Herd or Hurting Your Firm?

The Legal Intelligencer

In these rather unpleasant times, some firms use the economy as a reason to "cull the herd." This culling process can ensnare support staff, underachieving associates and non-equity partners. While it may be true that better times made it easier to tolerate unproductive support and professional personnel, the current conditions should not be seen as an opportunity to rid the firm of all that does not fit the firm's newest business model, says attorney Anthony S. Volpe.

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The View From 3L

The National Law Journal

Third-year students at law schools across the country are about to graduate and enter a brave new legal world. So what do 3Ls make of the changes that have rocked the law profession since the economy started to nosedive in September? Well, they aren't panicking -- for the most part. Many feel fortunate that they completed summer internships before the financial markets plummeted and firms pulled back recruiting efforts. But that doesn't mean they're not nervous, especially those who are still looking.

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