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Survey Shows Summertime Blues for Summer Associates

The American Lawyer

It's hardly a surprise that being a summer clerk this year wasn't exactly the full five-star experience the summer class of 2009 may have dreamed about in law school. One indication of what a summer intern called "a scary time to be a law student": The number of summer clerks who said they expected to receive full-time job offers was down sharply, according to this year's survey of summer associates. But the 2009 summer experience wasn't all darkness and despair.

Sears Agrees to Multimillion-Dollar Settlement Over Firing of Disabled Workers

The National Law Journal

The U.S. Equal Employment Opportunity Commission has announced a record $6.2 million Americans with Disabilities Act settlement of a nationwide class action against Sears, Roebuck & Co. over the firing of disabled workers. The agency described it as the largest ADA settlement in a single EEOC lawsuit. While the settlement doesn't include job reinstatement for former Sears workers, the company has changed its policy to make it easier for workers to return from leave in the future, according to an EEOC lawyer.

Ecuadorean Court Replaces Judge in Multibillion-Dollar Chevron Case

The Associated Press

An Ecuadorean court dealt plaintiffs a setback Tuesday in a $27 billion environmental contamination lawsuit against Chevron, accepting the presiding judge's request to be removed from the case so the government can investigate Chevron's claims that he was involved in a bribery scheme. A verdict in the case had been expected this year, but the lead attorney for the plaintiffs said it will take a new judge "four to five months to get to know a case that has some 17,000 documents."

Former Paul Hastings Tax Associate Spared Prison for Insider Trading

New York Law Journal

Former Paul Hastings tax associate Eric A. Holzer on Tuesday was spared a prison term for trading on inside information on two corporate transactions in 2005. The guidelines called for a sentencing range of between 12 and 18 months in prison, but Southern District of New York Judge Victor A. Marrero said he agreed with the probation department's assessment that this was "a good person who made a terrible mistake" and ordered Holzer to spend nine months in a halfway house, on weekends if he chooses.

Bryan Cave off Hook in $16 Million Suit Alleging Concealment of Client Fraud

New Jersey Law Journal

A New Jersey appeals court ruled Tuesday that a victim of Reed Slatkin's Ponzi-type scheme cannot pursue a malpractice claim against his law firm, which allegedly helped him conceal the fraud during an SEC probe. The court said the judge who dismissed the suit used a novel but allowable analysis in applying the doctrine of forum non conveniens, based in part on his view that a New Jersey fact-finder should not decide whether Bryan Cave conformed to ethics rules in California, where it represented Slatkin.

'New Formulation' on Conflicts Returns Debevoise to $8 Billion MetLife Case

New York Law Journal

In determining Debevoise & Plimpton should not be removed as counsel in a case where several of its lawyers may be called as witnesses, an appellate court has issued a "new formulation" of the rule requiring attorneys' disqualification for a conflict of interest. The 2nd Circuit ruled that a firm "can be disqualified by imputation only if the movant proves by clear and convincing evidence" that the witness will give testimony prejudicial to the client and that the "integrity of the judicial system" will suffer as a result.

3rd Circuit Declines to Reconsider Del. Gambling Plan

The American Lawyer

The 3rd U.S. Circuit Court of Appeals dealt what is likely to be the final blow to Delaware's plan for a state-sponsored gambling lottery that would have allowed residents to make bets on individual games in several sports. On Tuesday the full court denied the state's request to rehear a panel decision reached last month that struck down the plan as a violation of a 1992 law that bans sports gambling with limited exceptions.

Stanford Law Graduate Turned Prostitute Gets Home Detention

The Associated Press

A Stanford University law school graduate will have to serve a year of home detention for failing to pay taxes on money she earned while working as a prostitute. Cristina Warthen, who worked as an escort in New York, Chicago and Washington, D.C., will also have to pay the government about $243,000 as part of a plea deal.

James Joyce Estate Agrees to Pay Plaintiff's Fees in Fair Use Dispute

The National Law Journal

The estate of author James Joyce has agreed to pay $240,000 in legal costs incurred by a Stanford University scholar following a fair use legal battle over a book about Joyce's daughter. The settlement ends more than a decade of wrangling and brings to a close one of the more prominent academic fair use cases in recent years, which garnered interest partly due to the Joyce estate's aggressive approach to protecting copyrighted material.

12 Years of Persistence Rewarded With $4.9 Million Verdict in Malpractice Case

Daily Business Review

Jackie Young took on Broward County, Fla.'s two largest law firms and prevailed. A jury has awarded her $4.9 million in a malpractice case related to litigation that began in 1997. Young, who was turned down by eight or nine lawyers before finding one willing to take her case, says she doesn't think badly of lawyers because of her experiences. In fact, she's considering going to law school. But the litigation that began 12 years ago is not over yet for Young: She will face an appeal before seeing any money.

O'Melveny & Myers Wins Dismissal of Remaining Claims for Disney in Pooh Copyright Suit

The American Lawyer

After 18 years of decidedly un-cuddly court battles, Walt Disney Co. and the estate of Winnie the Pooh licensee Stephen Slesinger are right back where they started. On Friday, Los Angeles federal district court Judge Florence-Marie Cooper granted Disney's motion to dismiss all of Stephen Slesinger Inc.'s remaining infringement claims, committing the parties to continue a business relationship that began in 1961 when Slesinger's widow transferred the Pooh rights to Disney in exchange for royalties.

Federal Judge Who Announced Intent to Resign Over Pay to Join Plaintiffs Firm

The National Law Journal

Stephen Larson, the federal judge who recently announced that he could no longer afford to sit on the bench, will join plaintiffs firm Girardi & Keese in Los Angeles as a partner. The opportunity to work for the firm -- and not just Congress' refusal to raise federal judges' base pay of $170,000 -- prompted his career change, he said. "I spent nine years as a prosecutor, prosecuting cases, prosecuting wrongdoing, and that is essentially what Girardi & Keese does. They prosecute wrongdoing."

SEC Watchdog Pushes Changes After Failure to Detect Madoff Fraud

The Associated Press

The watchdog of the Securities and Exchange Commission has recommended a new system for handling the thousands of tips and complaints the agency receives to prevent another breakdown like the one that allowed Bernard Madoff's massive fraud to go undetected for 16 years. The proposals from SEC Inspector General David Kotz for the agency's enforcement and inspections operations also include making it easier for junior-level enforcement attorneys to bring their concerns to top managers.

N.Y. Federal Court Braces for Trial of Terror Suspect

New York Law Journal

Najibullah Zazi, the former New York coffee cart vendor accused of planning a "Madrid-style" subway bombing in New York, was arraigned in Brooklyn federal court on Tuesday. Chief Judge Raymond J. Dearie, who took the case after three other judges recused themselves, ordered Zazi held without bail. As evidenced by Tuesday's hearing, in which the lead prosecutor referred to the Classified Information Procedures Act at least a half dozen times, the federal statute will play a prominent role in the prosecution.

N.J. High Court Weighs Proposed Easing of 'Super Lawyer' Ban

New Jersey Law Journal

The three-year-old controversy over whether New Jersey lawyers can tout their inclusion in Super Lawyers, Best Lawyers or other ratings publications is again before the state Supreme Court. Six lawyers have signed up to speak at a hearing today as the court weighs a proposed easing of Rule of Professional Conduct 7.1, which bans advertising that compares a lawyer's services with others. The revision would allow comparisons if the "basis" for them "can be substantiated."

New Hires to Monitor Outbound E-Mail

The National Law Journal

The economy has employers jittery about company secrets getting out, so they're hiring staff to monitor e-mail use, according to a recent Proofpoint survey. And it's not just the inappropriate use of e-mail that has companies worried. Social networks are also compounding data leak fears.

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Cooley Godward Associate Creates iPhone Networking App

The American Lawyer

Cooley Godward Kronish associate Eric Koester attended an entrepreneurial boot camp set up by Startup Weekend to provide support to new companies, but ended up pitching his own idea for an Apple iPhone application that connects faces to names through LinkedIn accounts. Within 24 hours, a team of 14 people had created a working prototype for Learn That Name. It's now available to iPhone users for $1, and Koester says he's thinking about developing another version for Facebook.

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Clients Sued by Firms for Fees Retaliate With Malpractice Suits

Daily Business Review

In a tanking economy, lawyers and their clients are increasingly finding themselves on opposing sides instead of sharing the same table in court, as a growing number of firms sue clients over unpaid attorney fees and clients fight back with legal malpractice counterclaims. Attorney Warren Trazenfeld says lawyers suing clients is "one of the top 10 stupidest things a lawyer can do." And Carlton Fields' Charles Rosenberg says lawsuits are sometimes necessary, but overall, suing clients is a lose-lose scenario.

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