ABA Journal Daily News

PepsiCo Off Hook for $1.26B as Court Reverses Default Judgment

Fri, 06 Nov 2009 18:50:30 -0600

A default judgment that required PepsiCo to pay $1.26B to two men who claimed the soft-drink giant stole their idea for bottled water was overturned today by a Wisconsin court. PepsiCo, which received material about the lawsuit at an office in the state in which it is incorporated, rather than its New York headquarters, didn't respond to the filing until after the default judgment was issued. Today's ruling allows the company to defend the litigation, which will now proceed toward a new trial, according to the Associated Press and WKOW-TV, a local ABC News affiliate. The news agency could not…

Troubled Pa. Court Asks Lawyers to Volunteer to Reduce Trial Backlog

Fri, 06 Nov 2009 18:15:59 -0600

Faced with a shortage of two judges, in the wake of misconduct charges, and a backlog of 1,382 cases that are supposed to be tried by January, a Pennsylvania court is calling for seasoned practitioners to volunteer as special trial masters. With the parties' permission, they can oversee jury trials, reports the Times-Leader, as Luzerne County President Judge Chester Muroski presses the state legislature to fill two vacant seats. As detailed in earlier ABAJournal.com posts, ex-judge Mark Ciavarella is presently facing federal corruption charges, along with another former longtime Luzerne judge, concerning alleged kids-for-cash jailing of juveniles and other claimed…

Exploding Text-Harrassment Cases Create Pitfalls for Defense Attorneys

Fri, 06 Nov 2009 17:43:50 -0600

As supervisors increasingly make objectionable comments to employees via text messages, resulting harassment cases over after-hours comments no longer are based simply on "he said, she said" evidence. But this seeming bonanza of proof for plaintiffs lawyers is surrounded by potential pitfalls for defense attorneys, according to a Texas Lawyer article reprinted in Corporate Counsel. It may be a violation of an employee's privacy or statutory rights for in-house counsel to access text messages without the worker's express consent, even if the employer pays for the BlackBerry, cell phone or PDA device from which they were sent, the legal publication…

Legal Secretary’s Paper-Punchings are Confetti for Yankees Victory Parade

Fri, 06 Nov 2009 17:25:41 -0600

For 9 years, colleagues of legal secretary Joanie Kissell thought she was optimistic, to say the least, as she saved hole-punchings in a large container labeled New York Yankees. But now her foresight has been vindicated: The Yankees have won the World Series and Kissell's law firm, Kenyon & Kenyon, is directly on the route for today's victory parade, reports the New York Daily News. Kissell plans to use the hole-punchings as confetti to celebrate her home team's win. She's not the only fierce Yankees fan at the law firm: Billing coordinator Garry Thomas took a job at Kenyon &…

BigLaw Firms Still Struggle for Balance

Fri, 06 Nov 2009 16:50:50 -0600

Although the legal economy has been looking up in recent weeks, revenue at Allen & Overy dropped by seven percent during the six-month period that ended Oct. 31, the London-based "magic circle" law firm has announced. It is not planning any further layoffs to follow A&O's earlier elimination of 450 positions, including 47 partners. But a salary freeze for all staff will remain in place until May, reports the London Times. Meanwhile, megafirm Clifford Chance plans to cut another eight attorneys from its capital markets practice group at its London headquarters after the elimination earlier this year of 200 jobs…

Rothstein Firm Is Running on Fumes, Newspaper Says

Fri, 06 Nov 2009 16:07:19 -0600

Despite an effort by partner and president Stuart Rosenfeldt to create a new law firm out of the apparent ashes of Rothstein Rosenfeldt Adler, the well-known Fort Lauderdale, Fla., law firm is running on fumes. After stunning revelations of alleged misconduct by a top partner, the departure of some other lawyers, a federal raid and a firm-requested receivership within the last week, the firm now has $300,000 in available funds, reports the Sun-Sentinel. And $200,000 of that amount is from a contribution to the state Democratic Party returned to the law firm this week after a possible Ponzi scheme by…

Legal Sector Lost 5,800 Jobs Last Month, Labor Bureau Says

Fri, 06 Nov 2009 15:05:44 -0600

As the nation's unemployment rate topped 10 percent last month, lawyers were not spared. The legal sector lost 5,800 jobs, according to seasonally adjusted statistics in a just-released report (PDF) from the U.S. Bureau of Labor Statistics. When not seasonally adjusted, the figures show a gain of 1,500 jobs, but that is probably attributable to the elimination of summer associates from law firm payrolls, reports the Am Law Daily. After slowing down for a few months over the summer, it appears that the pace of law firm layoffs is now picking up a bit, the legal blog notes. Among the…

Two Law Firms Housed in Orlando Building Where Shooter Left One Dead

Fri, 06 Nov 2009 13:27:55 -0600

At least two law firms are housed in an Orlando, Fla., office building that was the site of a shooting today that left at least one person dead and five others injured. Police say the suspect, Jason Rodriguez, is a former engineer who worked for a transportation consulting firm in the high-rise building known as Legions Place, according to the Orlando Sentinel and USA Today. He surrendered at his mother's home. Earlier reports said two people were killed and six were wounded in the shootings. A spokesman for Rodriguez’s former employer, Reynolds, Smith & Hill, confirmed that the shootings took…

‘Star Associate’ Alleges Breakdown Over Work Conditions, Sues Sedgwick & Partner

Fri, 06 Nov 2009 13:20:53 -0600

A former associate in the New York office of Sedgwick Detert Moran & Arnold has filed a disability discrimination suit against the firm and an a partner he alleges was abusive, contending that he was driven to a breakdown with overwork and mistreatment and then abruptly fired when he had recovered and was ready to return to work. Above the Law provides a link to the complaint (PDF) filed by Alan Levy filed in New York Supreme Court late last month. It contends that Levy had for years been the "star associate" of the New York office and was the…

Did Top Texas Judge’s Testimony Open Door to Wrongful Death Suit?

Fri, 06 Nov 2009 12:10:11 -0600

Contending that a top Texas appellate judge misled a federal appeals court that dismissed a wrongful death claim by the wife and daughter of a executed inmate, a civil rights group has asked a federal judge to reopen the case . It concerns a controversial refusal by Texas Court of Appeals Judge Sharon Keller to keep the court open long enough on Sept. 25, 2007 for lawyers to make a last-minute appeal on behalf of Michael Richard, based on a then-recent U.S. Supreme Court ruling. He was executed later that same evening. The federal wrongful death suit was dismissed after…

National Pro Bono Week Marked by Nearly 600 Events

Fri, 06 Nov 2009 11:05:15 -0600

Nearly 600 events marked the first-ever National Pro Bono Celebration week sponsored by the ABA. Mark Schickman, chair of the celebration week that began on Oct. 25, said in a press release that he was pleased with the response. “Throughout the country, law firms hosted events to recruit more lawyers to take on pro bono projects, state and local bar associations offered legal clinics, and law schools presented discussions on such topics as domestic violence and bankruptcy,” he said. The week ended with recognition by President Obama, who wrote a letter praising pro bono lawyers. “Pro bono lawyers work tirelessly…

Why Abandoning Lockstep Can Lead to Disgruntled Associates

Fri, 06 Nov 2009 10:27:58 -0600

Abandoning lockstep promotions and salary hikes for associates can hurt morale if the system is perceived as unfair, according to a consultant who is an organizational psychologist. Writing for the New York Law Journal, Larry Richard of the legal consulting firm Hildebrandt warns about the dangers of moving to a competency-based rewards system that bases promotions and pay hikes on mastering defined competencies. Richard cites research that shows a perceived lack of equity is the No. 1 reason why workers lose motivation. “For a ‘levels’ system to work,” he writes, “a firm needs both well-functioning infrastructure systems and a widely…

Mass. Appeals Court Lawyer Reportedly Offered to Write Term Paper for $300

Fri, 06 Nov 2009 09:48:46 -0600

An undercover journalist researching the “shadowy underworld” of ghostwritten term papers says a senior staff attorney with the Massachusetts Appeals Court offered to write a term paper on physician-assisted suicide for $300. The lawyer, Damian Bonazzolli, was one of 62 people who offered a price quote to the undercover journalist, who sent queries about a 20-page term paper to businesses and individuals advertising on Craiglist. The journalist, Colman Herman, got quotes ranging from $90 to $1,200, he wrote in an article in CommonWealth. Legal Blog Watch noted the story. As part of his pitch for business, Bonazzolli sent along his…

Delaware PD Notes Puzzling Trend: Fewer Cases

Fri, 06 Nov 2009 09:17:42 -0600

Delaware public defender Brendan O'Neill noted a puzzling trend during a budget hearing on Thursday: a lower caseload. O’Neill noted "a very slight downward trend" in the number of indigent defendants requesting public defenders, the News Journal reports. "At this point, it looks like we're not in a growth industry, and that's a good thing," he said. The trend goes against the conventional wisdom that crime goes up during an economic downturn, translating into more requests for public defenders, he said. "It's a puzzle to us." Despite the small drop in cases, public defenders in many of the state’s courts…

Southern New England Law Dean Prepares for Battle over Merger Plan

Fri, 06 Nov 2009 08:41:41 -0600

Southern New England law school dean Robert Ward is preparing for battle over his school’s plan to merge with the University of Massachusetts at Dartmouth and become the state’s first public law school. Ward defended his school during a tour of the campus with a Boston Globe reporter. Ward says the idea is to gain ABA accreditation for his school while keeping tuition low. Tuition and fees at the school would be increased only slightly to $23,500, about half the cost of the Suffolk University and New England law schools. Southern New England would donate its campus and assets to…

Woman Lawyer Who Hid Gender in 1930s Law Job Applications Dies at 99

Fri, 06 Nov 2009 08:16:15 -0600

A woman lawyer who used initials in 1930s job applications to hide her gender has died at the age of 99. Anne Sullivan, formerly Anne Chawk, was licensed in 1934 and signed her job applications "A.M. Chawk" so they wouldn’t be tossed out, the Chicago Tribune reports. She volunteered in probate court for a year before landing a law firm job where she met her husband, John Sullivan. In 1948, the couple formed their own firm. They had eight children. A Chicago Tribune story from the 1960s said Anne Sullivan was someone who "concocts a cake or legal brief with…

Nadel Receiver Leaves Fowler White Boggs Along With at Least 9 Others

Fri, 06 Nov 2009 07:59:44 -0600

The court-appointed receiver trying to recover money for investors with alleged Ponzi schemer Arthur Nadel is forming a new law firm. The receiver, Burton Wiand, is a partner at Fowler White Boggs in Tampa. He is leaving the law firm with at least nine other lawyers to form Wiand Guerra King, the Tampa Tribune reports. Last year Fowler White Boggs lost about 60 lawyers who joined partner Bob Banker when he left to form his own law firm, according to the story. Fowler White CEO Rhea Law told the Tampa Tribune that the split is amicable and Wiand wanted to…

Troutman Sanders: Confident Its Accused Real Estate Chief Will Return to Work

Fri, 06 Nov 2009 07:13:12 -0600

The Troutman Sanders law firm has released a statement expressing confidence that a kickbacks case involving the chair of its real estate practice will be successfully resolved. Troutman Sanders partner Leonard Grunstein is accused of helping a client who bought a nursing home company obtain $50 million in kickbacks from a pharmaceutical vendor supplying patients with medications. Grunstein was a lawyer at the now-defunct law firm Jenkens & Gilchrist at the time of the alleged wrongdoing, and was also a principal in the nursing home company, prosecutors say. Troutman Sanders hired Grunstein in 2005 when it acquired a group of…

Revised N.J. Ethics Rule Allows Lawyers to Tout Super Lawyers Designation

Fri, 06 Nov 2009 06:49:57 -0600

The New Jersey Supreme Court has changed the ethics rules to allow lawyers to tout their designation as among the "Super Lawyers" and "Best Lawyers in America." The rule change, enacted Wednesday, carries some restrictions, the New Jersey Law Journal reports. Any ad that mentions such a designation must include the name of the ratings service. And it should include a disclaimer reading: "No aspect of this advertisement has been approved by the Supreme Court." A comment to the ethics rule has more information on when the ads could be misleading, according to the story. The comment says lawyers shouldn’t…

Former Sullivan & Cromwell Lawyer is Among Galleon Defendants

Thu, 05 Nov 2009 16:48:45 -0600

A trader who formerly worked as a mergers and acquisitions lawyer at Sullivan & Cromwell was among the 14 defendants charged today in the Galleon Group hedge fund insider-trading case. Michael Kimmelman, 38, has since founded Incremental Capital, with another defendant in the case. However, he previously worked as an associate at the well-known New York-based law firm, according to Reuters. He graduated from the University of Southern California Gould School of Law. Kimmelman spent less than two years at S&C and left more than a decade ago, reports another Reuters article. As detailed in an earlier ABAJournal.com post, the…

Bizarre Beatles Song-Selling Defense: Techies Created—and Can Copyright—New Tunes

Thu, 05 Nov 2009 16:19:28 -0600

The music of the Beatles isn't legally available on the Internet. However, a little-known company is not only offering the back catalog of the famous 1960s rock 'n' roll group online but is trying to copyright it, based on what Ars Technica's Law & Disorder blog characterizes as a "entertainingly weird" legal theory. The theory is explained in the federal copyright action that almost immediately resulted. It was filed Tuesday in the Middle District of California with other music company plaintiffs by EMI Christian Music Group Inc., the company that controls the sale of Beatles music on CDs. BlueBeat and…

2 Lawyers Charged in Claimed $1.1M Client Embezzlement Scheme

Thu, 05 Nov 2009 15:29:59 -0600

Two Oklahoma lawyers, one of whom is no longer licensed, have been accused of racketeering and conspiracy in an alleged $1.1 million client embezzlement scheme carried out over a five-year period. William Schraeder, 59, a Tulsa attorney and Fred Anton, 59, who surrendered his law license in 2007 but allegedly continued to practice, are also charged with forging checks and worker's compensation fraud, according to a press release from the Oklahoma attorney general's office. NewsOn6.com provides a link to the 53-count Tulsa County District Court criminal complaint (PDF) in the case. The two men are accused of embezzling settlements from…

Police Pose as Clients, Charge Disbarred Lawyer in Office Sting

Thu, 05 Nov 2009 14:47:38 -0600

After what reportedly could be as much as a decade or more of alleged unauthorized practice in Nevada on the part of disbarred attorney Charles Radosevich, authorities have apparently mounted a full-scale campaign against him. Two Las Vegas police detectives went to the Radosevich's office posing as potential clients on Tuesday and issued two misdemeanor citations to the 62-year-old for practicing law without a license, reports the Las Vegas Sun. He allegedly accepted $200 from the detectives in exchange for agreeing to provide legal services. The citations follow news that Radosevich was charged with felony theft last week for allegedly…

Iconic N.Y. Lawyer Settles Pension Probe; ‘Worked’ Over 1,200 Days in a Year

Thu, 05 Nov 2009 13:50:30 -0600

A Long Island, N.Y., private practitioner whose claims in government legal bills to have worked more than 1,200 days in a single year led to a massive probe of state pensions being paid to attorneys has agreed to give up his own benefits. Lawrence Reich, 69, will no longer receive the $62,000 annual pension or lifetime health coverage he was awarded as a result of being simultaneously reported as a full-time employee of five school districts, reports Newsday (sub. req.). Reich also will pay over $240,000 to the state attorney general's office. "This lawyer epitomized the systemic waste and abuse…

Sex Tape Said to End Ex-Beauty Queen’s Pageant Suit with Small Settlement

Thu, 05 Nov 2009 13:04:52 -0600

Ex-beauty queen Carrie Prejean reportedly doesn't have to repay Miss California USA pageant organizers for the $5,200 they allegedly paid for her breast implants or give them any of the proceeds of a forthcoming tell-all book. But she's also getting a lot less than the $1 million she sought in her defamation, invasion of privacy and religious discrimination suit against the pageant, after defense counsel got hold of what is being described as a solo sex tape, according to CNN. The TMZ celebrity blog initially broke the news that the tape had resulted in a confidential settlement of $100,000—all of…