ABA Journal Daily News

Ohio AG: Major Credit Agencies ‘Sold Out’ in Toxic Mortgage Mess

Fri, 20 Nov 2009 15:35:03 -0600

As federal elected officials and administrators mull potential regulatory reform to rein in lenders accused of causing a mortgage meltdown nationwide, the attorney general of Ohio has stepped into the breach and filed a federal lawsuit against the three largest credit rating agencies, Reuters reports. They created a financial crisis, contends Attorney General Richard Cordray, by looking out for their own short-term financial interest and providing false and misleading Triple A ratings on toxic mortgage debt that cost pension funds for state employees a bundle of money. "The credit rating agencies sold out, and they sold us out," the attorney…

Jury Says Philip Morris Must Pay $300M to Longtime Smoker

Fri, 20 Nov 2009 15:15:02 -0600

A jury in South Florida says Philip Morris USA must pay $300 million, including $244 million in punitive damages, to a 25-year Benson & Hedges smoker who argued that the cigarette company committed fraud by concealing the dangers of smoking from her. Lawyers for Lucinda "Cindy" Naugle, who is a sister of a former Fort Lauderdale mayor, said she started smoking in 1968 at age 20 to look older and more sophisticated. But, even though she quit 25 years later, they told the jury, she now has emphysema, reports the Sun-Sentinel. At age 60, she has trouble performing simple tasks,…

Double Whammy for Some at Seyfarth: Deferred Start Plus Pay Cut, Too

Fri, 20 Nov 2009 14:22:30 -0600

In a double whammy for some incoming associates who expected to start work at Seyfarth Shaw in January, the law firm has deferred half of the incoming class until October—and cut first-year pay for all first-year associates. Seyfarth is deferring eight of the 16 new associates previously expected to begin working in January and expects to cut the annual starting pay for the entire 2010 class by between 5 and 10 percent, the firm tells Above the Law in a written statement. It says the cuts are being made in response to the economy and client pressure to keep legal…

A Rothstein October Surprise: Hundreds of Missing Millions; Suit Blames Bank

Fri, 20 Nov 2009 13:40:31 -0600

Hundreds of millions of dollars disappeared last month from the accounts of South Florida law firm Rothstein Rosenfeldt Adler, a receiver said today in a bankruptcy proceeding. Bloomberg covered the revelation by the dissolving law firm's receiver, retired Miami Judge Herbert Stettin. “Huge amounts of money were moved and removed in October,” Stettin said in the Fort Lauderdale court proceeding. “It almost defies logic.”' Creditors filed an involuntary bankruptcy petition against the law firm after name partner Scott Rothstein came under investigation for allegedly running a Ponzi scheme that could cost investors $1 billion. A $100 million lawsuit filed today…

Fieger Firm Agrees to Pay $131K to Resolve FEC Contributions Probe

Fri, 20 Nov 2009 11:45:02 -0600

The law firm of Michigan trial lawyer Geoffrey Fieger will pay $131,000 to resolve a probe by the Federal Election Commission, an amount that pales in comparison to the potential fine if commissioners had found a knowing violation of finance laws. The payment will resolve an FEC probe into contributions made to the John Edwards presidential campaign in 2004, according to the Associated Press and the Detroit Free Press. The FEC said the agreement was reached after it found probable cause that the firm had reimbursed 66 employees and other individuals who collectively donated $131,000 to the campaign. FEC documents…

Online Applications for Judicial Clerkships Jump by 66%

Fri, 20 Nov 2009 11:15:12 -0600

Online applications for federal clerkships jumped by 66 percent this year, spurred by an increase in applicants and the number of clerkships for which they applied. The number of applicants increased by 42 percent, and they applied for an average of about 38 clerkships each, according to The BLT: The Blog of Legal Times. In all, 10,722 people applied online, submitting 401,576 applications for clerkships. There are 1,244 clerkships advertised as available.

Don’t Cry for Me, New York: A Disbarred Civil Rights Lawyer Goes to Jail

Fri, 20 Nov 2009 10:42:27 -0600

Disbarred civil rights lawyer Lynne Stewart had a few words for her followers on Thursday before she surrendered to begin serving her 28-month prison sentence for helping an imprisoned terrorist communicate with his followers. As she walked toward the courthouse, Stewart recalled a labor organizer executed in 1915 after a controversial trial, the New York Times reports. “This is the day they executed Joe Hill, and his words were, ‘Don’t mourn me, organize,’ ” Stewart said. “I hope that will be the message that I send, too.” Stewart was forced to go to prison after a federal appeals court said…

Judge Scolds Lawyers for Document Blizzard: ‘You Wouldn’t Do This to a Jury’

Fri, 20 Nov 2009 10:14:09 -0600

U.S. District Judge Gregory Frizzell has endured 25 days of testimony in Oklahama’s pollution case against the poultry industry, but it’s the blizzard of paperwork that is really fraying his nerves. On Thursday, the Tulsa judge scolded a group of about 30 lawyers in Oklahoma’s case for blanketing him with “thousands” of documents in the bench trial, the Associated Press reports. Frizzell accused the lawyers of trying to admit the documents with an eye toward an appeal. ''You wouldn't do this to a jury,'' Frizzell said. ''You do this to a judge.'' ''I wish we had a jury,'' the judge…

Law Departments Cut Costs by Squeezing Law Firms, Freezing Staff Pay

Fri, 20 Nov 2009 09:30:41 -0600

Companies are trying to cut their legal budgets, and it’s affecting in-house lawyers whose salaries are frozen and outside law firms asked to reduce rates and offer alternatives to hourly rates. Alternative fees have been touted as the up-and-coming way to reduce outside legal costs. But law departments are trying another tack as well, by freezing or even cutting the hourly rates paid to outside counsel, according to a survey by the Hildebrandt legal consulting firm. Forty-six percent of law departments surveyed said they have cut their hourly rates paid to outside counsel, or will reduce their rates, according to…

Struggling South Florida Divorce Lawyers Offer Discounts, Accept Credit Cards

Fri, 20 Nov 2009 08:09:37 -0600

Business is off by as much as 35 percent for some South Florida divorce lawyers, spurring discounted rates and creative payment plans. The economy is forcing many lower-income couples to put off divorce, lawyers tell the Miami Herald. Sometimes a couple can’t afford to live independently, or one spouse relies on the other for health insurance, or they owe more on their home than it is worth. Lawyers who serve this clientele are hurting, and now they are offering discounts and accepting credit cards for the first time, the story says. “I laugh when people say the recession is over,''…

Unemployed NY Lawyers Could Benefit from London Firm’s Outsourcing

Fri, 20 Nov 2009 07:39:26 -0600

Eight of London’s top law firms are considering outsourcing some of their legal work, and another eight already send some legal work outside. But the news isn’t all bad for lawyers. Allen & Overy’s contract with Integreon for document review sends some of its work to India—and some to New York, the Lawyer reports. A&O estimates it will save 30 percent to 50 percent through its outsourcing. A&O is one of eight top London firms already using outsourcing for legal work, Legal Week reports. Eight others are considering such a move, including Linklaters. It may outsource some document review, due…

Concerned Divorce Lawyer Follows Client, Witnesses Shooting Aftermath

Fri, 20 Nov 2009 07:04:32 -0600

A concerned divorce lawyer following her client home after a consultation watched in horror as the woman tumbled from the car, shot by her husband who was hiding in the back seat. The client, Ashley Kendall, was reported in critical condition, the Oregonian reports. Oregon lawyer Sharon Mitchell was so concerned about Kendall's safety that she walked her to her car and then followed as she drove home. The rear passenger and cargo windows of Kendall’s Jeep Wagoneer were tinted, and neither Kendall nor Mitchell was aware that Travis Kendall was in the back, according to Coos County District Attorney…

Skadden Jumps on the Bonus Bandwagon

Fri, 20 Nov 2009 06:25:12 -0600

Skadden, Arps, Slate, Meagher & Flom has announced its associate bonuses, and they match the lower amounts being paid at two other law firms. Associate bonuses at Skadden will range from $7,500 to $30,000, according to the Wall Street Journal Law Blog, the American Lawyer and Above the Law. Last year, Skadden paid bonuses that ranged from $35,000 to $60,000. Cravath was the first to announce lower associate bonuses that range from $7,500 to $30,000. Cleary Gottlieb Steen & Hamilton followed with the same bonuses. “The market appears to be set,” says the American Lawyer.

Nasty Attitude to Co-Worker, Naughty Word in E-Mail Cost 2 Their Jobs

Thu, 19 Nov 2009 18:54:36 -0600

A hearing officer had discretion to terminate an 11-year government civil service employee over her obnoxious treatment of a co-worker, a New York appeals court has ruled. The fired woman, Penny Sindoni, was an organizer of the "I Hate Teena" club directed at a disliked fellow Tioga County Health Department employee, according to testimony in the underlying administrative proceeding. She also allegedly kept a log of her co-worker's late arrivals and early departures and encouraged other employees to monitor the woman's whereabouts, too, reports the New York Law Journal. Sindoni's counsel argued that she was unfairly singled out for severe…

Malingering Juror With ‘Swine Flu’ Sentenced to 3 Days Watching Trials

Thu, 19 Nov 2009 17:47:00 -0600

A juror in a medical malpractice case in suburban Philadelphia over the summer apparently hesitated to ask for time off because he was feeling ill. So instead Anthony DiCicco said he had just been diagnosed with the swine flu, causing a mistrial and creating worry among fellow jurors who thought they had been exposed to the potentially deadly disease, according to the Philadelphia Inquirer. He might as well have said, "I have the bubonic plague," notes Bucks County Judge Clyde Waite, who found the 24-year-old in contempt of court yesterday and sentenced him to spend three days observing trials. Had…

Senate Confirms Controversial Obama Nominee to 7th Circuit Bench

Thu, 19 Nov 2009 16:39:30 -0600

After a delay of more than five months, the U.S. Senate today has confirmed a controversial judge nominated to the federal appellate bench by President Barack Obama. The vote was 59-39, with the sole Republican vote in favor of Judge David Hamilton cast by Sen. Richard Lugar, who represents the jurist's home state of Indiana, reports Politico. “This is a nomination that should be confirmed and should have been confirmed months ago," said Senate Judiciary Chairman Patrick Leahy (D-Vt.) in a written statement. "David Hamilton is a fine judge and will make a good addition to the United States Court…

Officer Who Tasered Girl, 10, with Mom’s OK Is Suspended for Not Taping Incident

Thu, 19 Nov 2009 15:55:34 -0600

Called to an Arkansas home after the mother of a 10-year-old girl couldn't get her to take a shower, an Ozark police officer wound up shocking her briefly with a electronic stun gun last week as she was "violently kicking and verbally combative." Then Dustin Bradshaw handcuffed the now-unresisting child and put her into a patrol car, reports the Associated Press. The unidentified girl wasn't injured, and her mother gave advance permission for the officer to use the Taser on her, according to the officer. Yesterday, however, Bradshaw was suspended for a week, with pay—because he had violated police department…

NU Law Dean Adjusts ‘Super Lawyers’ Rankings to Reflect Law School Size

Thu, 19 Nov 2009 15:25:22 -0600

A new ranking of law schools by the Super Lawyers magazine admittedly didn't take into account the number of graduates. And class size does matter, according to Northwestern University School of Law Dean David Van Zandt. So he has reconfigured the rankings, which are based on the number of Super Lawyers produced by each law school, to factor in the number of graduates, reports Above the Law. His revised list of the top 14 law schools, which Van Zandt sent out in an e-mail to students, still puts Harvard Law School in the No. 1 spot, followed by the University…

FTC Threatens to Sue Pre-Paid Legal Services Over ID Theft Program

Thu, 19 Nov 2009 15:17:20 -0600

Alleging that Pre-Paid Legal Services Inc. made misleading claims to consumers concerning its identity-theft protection service, the Federal Trade Commission has threatened to file suit over the issue. Pre-Paid disclosed the FTC's threat today, saying that it had received a proposed draft complaint from the federal agency seeking to halt the marketing of the program, reports the Oklahoman. The company said in a written statement that it expects to defend its interests vigorously, the newspaper reports. Additional coverage: Dow Jones Newswires (sub. req.): "Pre-Paid Legal Shares Plunge On FTC Draft Complaint"

Many More Mortgage Fraud Cases in Pipeline; ‘Like Shooting Fish in a Barrel’

Thu, 19 Nov 2009 14:12:26 -0600

Mortgage fraud prosecutions are likely to increase exponentially as federal authorities gear up nationwide to put a higher priority on such cases. In Nevada, they have some 300 cases in the pipeline, cherry-picking the most egregious, reports the Las Vegas Sun. Like complex drug cases, mortgage fraud cases can mushroom as investigators get more information from suspects about the scope of the operation, an unidentified FBI agent tells the newspaper. “We have cases with a lot of fingers going in a lot of directions. It’s beginning to be like shooting fish in a barrel,” the agent says. U.S. Attorney General…

Are All Texas Marriages Void? Poorly Worded Amendment Raises the Question

Thu, 19 Nov 2009 13:42:09 -0600

A candidate for Texas attorney general says a state constitutional amendment is so poorly worded that it calls into question the legal status of all marriages in the state. The Democratic candidate, Houston lawyer Barbara Ann Radnofsky, calls the amendment a “massive mistake,” the Fort Worth Star-Telegram reports. Designed to ban gay marriages, the 2005 amendment was approved by the legislature and ratified by voters. Part of the amendment reads, “Marriage in this state shall consist only of the union of one man and one woman.” But there is this more troubling phrase, designed to bar civil unions and domestic…

Mickey Mouse Trademark Suit is Filed Against Donald Duck

Thu, 19 Nov 2009 13:04:11 -0600

Apparently lacking legitimate legal work, a prankster with the fictitious "Abogado & Abogado" law firm in Miami has filed a federal trademark infringement suit in the Southern District of Florida on behalf of Mickey Mouse. The defendant is Donald Duck, and, the one-page complaint (PDF) alleges, "the defendant is a duck," according to the Legal Pad blog. In his answer (PDF), the defendant admits this allegation. He is represented by Pluto the Dog, who signs the responsive pleading with a paw print. A summons (PDF) has been issued by a purported deputy court clerk, Goofy. There's no word yet, however,…

Family of Living Man Declared Dead Seeks to Sue Medical Examiner

Thu, 19 Nov 2009 12:43:00 -0600

Declared dead by a paramedic after an auto accident almost five years ago, Larry Green was zipped into a body bag and refrigerated before a medical examiner for Franklin County, N.C., noticed signs of life. Although he survived, the 34-year-old Green is bedridden and needs 24-hour care in a nursing home. Seeking money to cover his care and provide more rehabilitation, his relatives and a guardian are trying to sue the medical examiner, J.B. Perdue, reports the News & Observer. A Franklin County judge agreed that Perdue—who allegedly pooh-poohed several paramedics' suggestions that Green was, in fact, alive—is not protected…

Lawyers Find New Jobs Despite Stigma of Claimed $1B Rothstein Scheme

Thu, 19 Nov 2009 12:13:43 -0600

When a lawyer is looking for a new job because his or her law firm is dissolving, it obviously doesn't help if one of its founding partners is being accused of operating a $1 billion Ponzi scheme. But neither has this situation prevented attorneys from Rothstein Rosenfeldt Adler from being snapped up by other firms, reports the Miami Herald. A small firm in Fort Lauderdale, Fla., for instance, leaped at the chance to acquire a five-lawyer bankruptcy and commercial litigation group from RRA. "This was a rare opportunity to get experienced lawyers of their caliber,'' says Arthur Rice of Rice…

Law Firm Price Wars Break Out as Some Try ‘Loss Leader’ Bids for Work

Thu, 19 Nov 2009 11:24:56 -0600

Price wars have broken out among large law firms. Desperate to bring in new business, some firms are offering “loss leader” bids that may turn out to be unsustainable, according to managers of 15 large law firms responding to a survey summarized at the Legal Business Development blog. Legal business consultant Jim Hassett writes that he learned of the price wars when he decided to throw in a “loss leader” question in an alternative-fee survey of AmLaw 100 firms. He included the question on just 15 surveys, and all 15 firms responded that they had seen the price wars, he…