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DLA Piper to Cut Most Partners' Pay

The Recorder

DLA Piper informed all of its U.S. partners on Friday that it will reduce pay for most of them by 11.5 percent in 2009, while strong performers will get more money. The law firm projects that revenue will decline 7 percent in 2009 and that profits will drop 6 percent, according to U.S. managing partner J. Terence O'Malley, who said the move is a way for the firm to reduce its reliance on banks.

Trustee: New Dreier Indictment Affects Value of Firm's Assets

New York Law Journal

"Prestigious Manhattan Law Firm 499 Park Avenue, New York -- EVERYTHING MUST BE SOLD" reads a notice on the Web site of the auctioneer for the court-ordered liquidation of Dreier LLP scheduled for Thursday. But a new criminal indictment released last week against disgraced attorney Marc S. Dreier -- which adds a count of money laundering to the host of charges against him -- has created a tug of war between prosecutors and the bankruptcy trustee that casts a cloud over the value of the items up for auction.

2nd Circuit Panel Declines Madoff's Bid to Reinstate Bail

New York Law Journal

On Friday, a unanimous 2nd Circuit panel denied Bernard L. Madoff's bid for bail reinstatement while he awaits sentencing for orchestrating the largest Ponzi scheme in history. Some attorneys question what Madoff has gained from his guilty plea, given that he would have been able to remain free longer if he had continued to contest the charges. However, with no hope of beating the charges, Madoff may simply have wanted to spare himself and his family from a prolonged legal ordeal.

Troutman Sanders to Buy Out Staff, Lay Off Associates

Fulton County Daily Report

Troutman Sanders said Friday the firm will lay off associates and offer staff a voluntary buyout, which will likely be followed by a layoff. The 778-lawyer firm also has pushed back the start date for its 2009 first-year associates to January and shaved two weeks off its summer associate program. The buyout offer is for all 876 staff members, according to the firm chairman, and includes severance pay and health insurance pegged to length of employment. Staff with sufficient seniority also will get a lump sum payment.

Court Finds No Malpractice in Case Where Client Was Hit With $20 Million in Punitives

The National Law Journal

An appeals court has ruled that a major Washington, D.C., law firm did not commit malpractice when it represented a client found liable for $20 million in punitive damages -- and just $520 in actual damages. The District of Columbia Court of Appeals determined that intellectual property law firm Finnegan, Henderson, Farabow, Garrett & Dunner's decision not to initially appeal the punitive damages award was a reasonable, tactical litigation strategy involving an unsettled point of law.

Federal Circuit Sides With PTO in Dispute Over Rules

Legal Times

The U.S. Court of Appeals for the Federal Circuit ruled Friday in a split decision that the Patent and Trademark Office did not overstep its authority in adopting a set of new rules that some intellectual property lawyers say fundamentally alter patent practice and threaten innovation. Lawyers for the PTO say the four new PTO rules, issued in 2007, were constructed to reduce a backlog of unexamined patent applications by, among other things, limiting the number of claims per application.

Indicted for Faking Brother's Will, Lawyer Now Faces Tax Evasion Charges

The Legal Intelligencer

A Pennsylvania lawyer already under indictment for allegedly faking his brother's will is now facing charges of dodging taxes on more than $5 million in income and concocting a scheme to get a $500,000 tax deduction for charity by laundering money through a church. The new charges against John P. Karoly Jr. came two days after Karoly and his lawyer lodged their own accusations, alleging prosecutors improperly used a client of Karoly's to secretly record a conversation revealing Karoly's defense strategy.

Sanction Affirmed of Lawyer Who Sued Adversary Over Deposition Questions

New Jersey Law Journal

A New Jersey appeals court on Friday ordered lawyer Bruce Nagel, who had sued his adversary in a wrongful-death case over her intense questioning of his client about the death of the client's baby girl, to pay the opposing lawyer $11,630 in counsel fees. However, the appeals court said that Nagel didn't deserve to be hit with $2,500 in sanctions that a trial judge had imposed.

Medical Device Company Pays $50 Million to Settle Patent Case

The Associated Press

Boston Scientific Corp. said Friday it will pay $50 million to settle a yearslong dispute with an inventor who claimed the company's drug-coated stent infringed on his patent. In July a federal judge rejected a request by Boston Scientific for a new trial against Dr. Bruce Saffran that ended with a $501 million judgment in his favor. The company had argued that Saffran's patent differed in design from its Taxus stent.

Hogan & Hartson Files Motion to Dismiss Legal Malpractice Lawsuit

Legal Times

A team of lawyers representing Hogan & Hartson filed a motion Friday to dismiss a suit that alleges the firm committed legal malpractice, breach of contract and breach of fiduciary duty. Prestige Brands sued the law firm, claiming Hogan lawyers used attorney-client communication to help a competitor bring a product to market quicker than it could have without Hogan's representation.

6th Circuit Turns to Ohio Supreme Court for Guidance on Controversial Web Obscenity Shield

The National Law Journal

The 6th U.S. Circuit Court of Appeals has turned to the Ohio Supreme Court for guidance on a 2002 Ohio law that attempts to shield minors from obscene material, dubbed an Internet censorship regime by opponents. Ohio's high court was asked Thursday to respond to two questions about whether the law exempts private e-mail, chat rooms and public Web sites from liability, as the state attorney general has argued. A procedure known as "certification of a question" passed the constitutional problem to the Ohio court.

Former Qwest CEO Asks for High Court Review of Insider-Trading Conviction

The Associated Press

Former Qwest CEO Joe Nacchio asked the U.S. Supreme Court on Friday to review his insider-trading conviction, raising questions about the fairness of the judge who presided at his trial. He also asked for reconsideration of his request to remain free on bail during his appeal. Nacchio's attorneys said U.S. District Judge Edward Nottingham "openly displayed ethnic bias against the defendant and his counsel and recently resigned in disgrace in a lurid prostitution and obstruction of justice scandal."

Kagan Sworn In as SG, May Argue Before Supreme Court Next Month

Legal Times

In a private ceremony at the Supreme Court Friday, Chief Justice John Roberts Jr. swore in former Harvard Law School Dean Elena Kagan as the nation's 45th solicitor general -- the first woman to hold the position. Many are wondering whether Kagan will respond to some questions about her lack of appellate experience by arguing a Supreme Court case this term instead of waiting until the fall. The latest from insiders is that she is eager to take on a case -- and possibly a high-profile one, at that.

Ore. Church Can Brew Hallucinogenic Tea, Says Federal Judge

The Associated Press

A federal judge says members of a Brazilian-based Christian church in Ashland, Ore., can import, distribute and brew hallucinogenic tea. U.S. District Judge Owen Panner issued a permanent injunction barring the government from prohibiting or penalizing the sacramental use of "Daime tea." Also known as ayahuasca tea, it's brewed from Amazonian plants that contain the hallucinogenic drug dimethyltriptamine.

Text-Mining Case Law

Special to Law.com

A key skill for lawyers is finding and analogizing cases in legal argumentation. Dr. Adam Wyner discusses the application of natural language processing tools to online bodies of case law for quicker, more cost-effective delivery of accurate analytic search results.

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Veteran SEC Counsel Stays Calm in Crisis

Legal Times

David Becker, the just-installed SEC general counsel, is in a policy-making pressure cooker with nothing less at stake than the way Washington regulates Wall Street. But that's part of the thrill, says the SEC veteran, who has served before as GC from 2000 to 2002 and as deputy GC for the two years prior. One observer says Becker's level head helps him stand out: "When you've been in Washington a long time, you really appreciate people who aren't screamers."

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Beware the Causes of Burnout

The American Lawyer

With the economic meltdown, lawyers who still have jobs are working longer hours for dwindling pay. Many people who are thankful just to be working may be actively ignoring warning signs of an unhealthy environment. But according to psychologists, burnout is a real risk with progressively dire consequences, leaving its worst victims with an abiding sense of personal failure. And the more burnt out you are, the longer it takes to recover. Here are six factors that can fuel the fires leading to a burnout.

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