ABA Journal Top Stories

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

2009-11-20T15:35:03-06:00

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

2009-11-20T15:15:02-06:00

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

2009-11-20T14:22:30-06:00

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

2009-11-20T13:40:31-06:00

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

2009-11-20T11:45:02-06:00

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…

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

2009-11-20T10:42:27-06:00

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’

2009-11-20T10:14:09-06:00

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

2009-11-20T09:30:41-06:00

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

2009-11-20T08:09:37-06:00

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

2009-11-20T07:39:26-06:00

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

2009-11-20T07:04:32-06:00

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

2009-11-20T06:25:12-06:00

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

2009-11-19T18:54:36-06:00

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…

Senate Confirms Controversial Obama Nominee to 7th Circuit Bench

2009-11-19T16:39:30-06:00

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

2009-11-19T15:55:34-06:00

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

2009-11-19T15:25:22-06:00

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…

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

2009-11-19T14:12:26-06:00

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

2009-11-19T13:42:09-06:00

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…

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

2009-11-19T11:24:56-06:00

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…

Bentley Photos Are Props in Willie Gary’s High School Motivational Speech

2009-11-19T10:33:26-06:00

Trial lawyer Willie Gary didn’t have to warn students at a Florida high school that they could end up living in a van down by the river in a motivational speech he gave on Wednesday. Students showed their enthusiasm before Gary even began his speech, Jacksonville.com reports. A marching band played songs. A video of Gary’s accomplishments showed a fleet of his Bentleys and private planes. Students “clapped enthusiastically.” "You're in a position to do greater things than what you saw on the video," Gary told the students. "You can do more, you can have more, but you got to…

PI Firm Sues Competitor for Hijacking Name in Online Searches

2009-11-19T09:56:37-06:00

Wisconsin’s largest personal injury law firm has taken a different legal tack in an effort to get a competitor to stop hijacking its name in Google searches. Habush, Habush & Rottier has sued competitor Cannon & Dunphy for paying Google and other search engines to direct people who search for Habush to the Cannon website, the Milwaukee Journal Sentinel reports. The suit claims Cannon violated Habush’s privacy rights under Wisconsin state law. Past suits over purloined search terms have named Google as the defendant, and usually claim violation of trademark rather than privacy laws, according to the story. The suit…

Federal PD Wins Health Costs for Same-Sex Spouse in ‘Legal End-Run’

2009-11-19T09:00:08-06:00

A federal public defender, thwarted in an earlier effort to enroll his same-sex spouse in his employer’s health coverage plan, has won a ruling requiring his employer to pay him for the costs of obtaining outside insurance. The Los Angeles Times calls the ruling by Judge Stephen Reinhardt of the San Francisco-based 9th U.S. Circuit Court of Appeals “a legal end-run around the 1996 Defense of Marriage Act.” Reinhardt ruled as a designated arbiter of employee disputes for public defenders in his circuit, according to an order (PDF) issued yesterday. The 9th Circuit bars discrimination on the basis of sexual…

‘It’s’ an Issue in Story Review Instigated by Justice Kennedy’s Office

2009-11-19T07:43:17-06:00

A new staffer who works for Justice Anthony M. Kennedy demanded the right to review quotations by student publications at two schools, it turns out. The review of a story about an Oct. 15 George Washington University speech resulted in a request to change the contraction "it's" to "it is," according to a student journalist who spoke to the Wall Street Journal (sub. req.). Previously just one incident came to light: a demand to review for accuracy any story published about Kennedy's Oct. 28 comments at the Dalton School in Manhattan. Kennedy told the Wall Street Journal he was unaware…

Like Nixon, Obama Has an Opinion on the Guilt of a Suspect

2009-11-19T07:03:31-06:00

When President Nixon declared that Charles Manson was guilty of seven California murders, the cult leader sought to use the comment to his advantage. He showed jurors the headline "Manson Guilty, Nixon Declares,” and sought a mistrial. The ploy didn’t work. Observers say there is also likely to be little impact from a similar statement by President Obama, this time opining on the fate of Sept. 11 mastermind Khalid Sheikh Mohammed, the Associated Press reports. In a television interview, Obama commented on those who were offended by the prospect of Mohammed being tried in a civilian court in New York.…

May Employers Monitor Personal E-Mail? Cases Turn on Disclosure

2009-11-19T06:39:16-06:00

Some courts are siding with employees when companies monitor their personal e-mail without adequate warning. Companies claim they have the right to all keystrokes on company property, allowing them to delve into employees’ personal e-mail sent from work. But some judges are now siding with employees who had a reasonable expectation that their personal e-mail wouldn’t be accessed, the Wall Street Journal reports. Among the cases highlighted in the article: • A New Jersey appeals court ruled that a home health-care company facing a discrimination suit by a former employee could not rely on e-mail the plaintiff sent to her…