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Billable Rates Now Under Siege Due to Recession

Fulton County Daily Report

Many firms are hearing, loud and clear, from clients seeking a little billable-hour love during these harsh economic times. For two decades, substantial rate boosts were an annual rite. But no longer. Industry observers say clients are requesting -- even demanding -- a smaller tab. And the billable hour is facing an even more serious challenge than freezes or discounts, with some analysts predicting that the law industry will have to be hauled kicking and screaming into a new era of fee structure.

Big-Firm Partners Go Small to Keep and Attract Frugal Clients

The National Law Journal

Partners at big law firms eager to hang on to cash-strapped clients and attract more amid this year's corporate belt-tightening are jumping to smaller firms where they can lower their billing rates and bump into fewer conflicts of interest. Partners from DLA Piper, K&L Gates, Katten Muchin Rosenman, and Jenner & Block are among those who have made moves during the past four months to smaller firms that allowed them not only to protect their client bases but also to win new business on lower rates.

5th Circuit Affirms Texas Schools' Moment of Silence Law

The Associated Press

The 5th U.S. Circuit Court of Appeals in New Orleans on Monday upheld a Texas law that requires public school students to observe a daily minute of silence in order to pray, reflect or otherwise remain quiet. A three-judge panel affirmed a district court ruling, saying the law is constitutional because it allows any silent use of that minute. David and Shannon Croft, suing on behalf of their three children, contended including the word "pray" in the law was a way for lawmakers to advance religion in schools.

Morgan & Finnegan Target of JPMorgan Suit

The American Lawyer

A judge on Wednesday ordered the appointment of a receiver to defunct IP shop Morgan & Finnegan and enjoined it from selling or transferring its assets after the failed New York firm found itself the target of a lawsuit from lender JPMorgan Chase. JPMorgan had filed suit against Morgan in New York Supreme Court, claiming the firm defaulted on its loan agreement and owed the bank more than $4 million. The firm dissolved last month after Locke Lord Bissell & Liddell agreed to hire more than 30 of its lawyers.

Wachovia Sued Over 'Bad-Faith' Charging of Overdraft Fees

Fulton County Daily Report

A federal bad-faith bank fee suit filed against Wachovia joins similar suits pending across the U.S. against Wachovia as well as Bank of America and Wells Fargo, accusing the banks of deceptive practices intended to maximize profits at the expense of customers and challenging bank policies governing the assessment of overdraft fees. Last year, Bank of America set aside $35 million to settle a California suit with bank customers who claimed the bank posted debit transactions to accounts in high-to-low order.

Mass. Court Moves 'Light' Cigarette Suit Forward

The Associated Press

The Massachusetts Supreme Judicial Court ruled Monday that Massachusetts smokers can use a consumer protection law to sue Philip Morris Inc. for the way it marketed Marlboro Lights. The ruling -- which closely mirrors a decision from the U.S. Supreme Court in December that smokers may use state consumer protection laws to sue cigarette makers for the way they promote "light" and "low tar" brands -- means a class action lawsuit brought by smokers who claim deceptive marketing can move forward.

Federal Judge OKs Use of Pepper Spray in Police Training

Legal Times

Talk about a stinging defeat. A federal judge in Washington, D.C., on Friday dismissed a lawsuit brought by naval police officers who wanted to stop the Navy from blasting recruits' eyes with pepper spray during their training. The officers argued that the practice was dangerous and deprived them of their constitutional rights to due process and equal protection. The judge found that the officers failed to show that the Navy had acted arbitrarily and capriciously in designing its training program.

New Book on Justice Kennedy Defends His Jurisprudence

Legal Times

Political scientist Helen Knowles thinks Supreme Court Justice Anthony Kennedy has gotten a bad rap as a "flip-flopper" and somewhat unpredictable swing vote. "He is much more consistent than people give him credit for," she says. Knowles turned that thought into a new book, "The Tie Goes to Freedom: Justice Anthony M. Kennedy on Liberty," touted as the first full-length treatment of Kennedy's jurisprudence. Did Knowles interview Kennedy for the book? Apparently the justice was too busy, or too reluctant.

5th Circuit Nixes Manifest Disregard as Ground for Vacatur of Arbitration Awards

Texas Lawyer

Abandon all hope, ye who seek to overturn an arbitration award, because the 5th U.S. Circuit Court of Appeals has ruled that manifest disregard of the law by arbitrators is no longer a ground for vacatur under the Federal Arbitration Act. The 5th Circuit's decision in Citigroup Global Markets Inc. v. Bacon will make parties think twice -- or three times -- before agreeing to submit to arbitration to settle their cases.

Mover's Suit Against U-Haul in Limbo as Appeals Court Mulls Jurisdiction

Legal Times

Michael Margolis is suing U-Haul on behalf of himself and the general public -- other U-Haul customers -- but is his case a class action? A federal appeals court in Washington, D.C., has to decide that question and decide where the suit is heard. Margolis' suit claims a U-Haul advertisement offering the "newest trucks" for movers violates D.C.'s Consumer Protection Procedures Act. The truck that Margolis rented to move to Texas broke down and exhaust fumes seeped into the cabin, according to court records.

More Bankruptcies in Asia, Few Bankruptcy Lawyers

The American Lawyer

When economic crisis struck Asia in the late 1990s and early 2000s, international law firms with newly crippled clients in the region flew in their top restructuring specialists from the United States and Europe. This time around, though, those lawyers are much in demand at home, leaving Asian offices somewhat strapped for bankruptcy lawyers. While adding bankruptcy lawyers would be a no-brainer for a firm in New York right now, Asia presents firms with a more complicated choice.

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Federal Jury Finds Former Pa. State Sen. Vincent Fumo Guilty on All Counts

The Legal Intelligencer

After a five-month trial riddled with unusual twists, a federal jury on Monday convicted former Pennsylvania state Sen. Vincent Fumo on all 137 counts, delivering a sweeping victory to the federal prosecutors who accused Fumo of abusing his power to fund a lavish lifestyle on the tabs of taxpayers and a charity he created and controlled. The jury also convicted Fumo of orchestrating a massive cover-up, erasing thousands of e-mails using a method designed to make it impossible for the FBI to retrieve them.

10 Steps to Manage E-Discovery Projects

New York Law Journal

Like it or not, lawyers involved in e-discovery matters must become project managers. Steven C. Bennett and Marla S.K. Bergman of Jones Day outline 10 key steps in a typical e-discovery project, suggesting ways that lawyers can help ensure that such projects proceed successfully.

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Employment Dangers Ahead for Companies

GC California Magazine

It's a new year, and there's a new administration in Washington, which means there's plenty of opportunity for challenges to your company's employment practices. Attorney Lynne C. Hermle offers some ideas to help you avoid employment claims, including what to do if you're plagued with downsizing, getting up to speed with the new administration, remaining vigilant about wage-and-hour issues and understanding your obligations to the troops.

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Lessons Learned as a Second-Career Lawyer

Texas Lawyer

Gene Vaughan started his new career as an attorney in August, and this November, he turned 40. At a time when we are hearing a lot about jobs ending, Vaughan provides us with a fresh perspective of someone starting out in the law, after having decided on his own to leave his old career as the controller of a family business. Vaughan also provides some tips, geared toward the first-time lawyer, but those, perhaps, could be helpful reminders for lawyers working in any stage of their career.

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