August
24 - August 25,
2010
GENERAL
What Really Drives Lawyers: Fear
The Rodent, Daily
Business Review
08-25-10 --
Most people think money is what motivates
lawyers. Certainly, anyone reading these lines
from time to time would be excused for thinking
so. . . . Marketing -- it's for the money. . . .
Climbing the pyramid -- it's for the money. . .
. Billing the hours -- it's for the money. . . .
Yep, sure seems like the dollar is the driver.
But it's not. Not, at least, when it comes to
actually getting things done. No, money may be
that Holy Grail shining like an ever-receding
beacon that keeps the lawyer always reaching and
never grasping. But what gets the work done?
What's the prick in the back that actually gets
an otherwise possibly normal human to spend
hours sifting through the debris of someone
else's problem?
Pepper Hamilton Sues FDIC Over Legal Fees
Gina Passarella,
The Legal Intelligencer
08-25-10 --
Pepper Hamilton has sued the
Federal
Deposit Insurance Corp.
after it classified as unsecured Pepper
Hamilton's claims for legal fees involving work
for a division of bankrupt
Advanta Corp.
and the FDIC. . . . The firm asserted a claim
against the FDIC as receiver of Utah-based
Advanta Bank Corp. -- a division of Spring
House, Pa.- based parent company Advanta Corp.
-- for a total of $260,338. That included a
$139,233 administrative claim and a $121,105
unsecured claim, according to the complaint
filed last week in the U.S. District Court for
the District of Columbia in Pepper Hamilton
v. FDIC. . . . The work was done before and
during the time Advanta Bank went into
receivership, as ordered by the Utah Department
of Financial Institutions. The FDIC was named
receiver of the bank.
Judge Reprimands Milberg,
Co-Counsel Over Information's Accuracy
Nate Raymond, New
York Law Journal
08-25-10 --
A federal judge has sanctioned Milberg LLP and
its co-counsel over the accuracy of information
cited to two confidential witnesses quoted in a
complaint against Sony Corp. . . . Southern
District of New York Judge Robert P. Patterson
Jr. reprimanded Milberg, Lax LLP and Lange &
Koncious for not including in the complaint the
"necessary context" to a statement attributed to
an ex-Sony employee. The judge also reprimanded
the firms for refusing to strike claims included
in the pleadings that were unsupported by a
confidential witness until after a safe harbor
period had lapsed.
More Firms Get into Lawyer Rating Game and Claim
Profiles on Avvo
By Rachel M.
Zahorsky, ABA Journal
08-24-10 --
We caught up with Avvo founder and
‘09 Legal
Rebel
Mark Britton in Chicago to chat with him about
online reputation management—a hot topic for big
and small law firms as competition increases and
potential clients from consumers to Fortune 500
general counsel are flooded with information via
the Web. . . . Static websites and law firm
biographies will fade in importance as websites
that post ratings by clients and peers, such as
Avvo and Yelp, gain traction, a
group of
panelists
said at the ABA’s 2010 Annual Meeting in San
Francisco earlier this month. Britton couldn’t
agree more. . . . “The reality is word of mouth
is moving online,” Britton told us last week.
Consumers are increasingly flocking to the
Internet to verify word-of-mouth referrals from
other individuals and lawyers, he said.
Sophisticated legal clients are also turning to
the Web to research outside counsel, prompting
many law firms to "claim" and manage Avvo
attorney profiles en masse, Britton adds.
CALIFORNIA
Will Solicitor General Weigh In on Proposition 8
Case?
Possible Justice
Department involvement complicated by past
actions
David Ingram, The
National Law Journal
08-25-10 --
Days before the 2008 election, then-candidate
Barack Obama said California's Proposition 8 was
"unnecessary" and "not what America's about." .
. . Now, some same-sex marriage advocates are
hoping Obama's Justice Department will make a
similar argument in court. The federal
government is not a party to the Proposition 8
litigation, which pits gay and lesbian couples
against supporters of a state constitutional
amendment banning same-sex marriage. But the
Justice Department could weigh in as amicus
curiae -- either when the case arrives
at the steps
of the U.S. Supreme Court
or, sooner,
before the
9th U.S. Circuit Court of Appeals.
Such a decision would typically be up to Acting
Solicitor General Neal Katyal with input from
across the federal government, including the
White House.
Calif. AG Jerry Brown Files $34M Suit Against
Well-Known 'Tax Lady'
Attorney Roni
Deutch faces fraud charges over unfair business
practices and false advertising
Don Thompson, The
Associated Press, Law.com
08-24-10 --
California's attorney general sued "tax lady"
Roni Deutch for more than $34 million on Monday,
alleging that her law firm regularly violates
state law by making false promises that it will
help people resolve disputes with the Internal
Revenue Service. . . . Attorney General Jerry
Brown contends that Deutch overstates her TV
claims of winning tax battles with the IRS. She
advertises a success rate of up to 99 percent,
yet successfully reduces the amount of money her
clients owe in taxes in just 10 percent of
cases, the lawsuit says.
Former L.A. attorney settles charges over
'frivolous and phony' foreclosure relief
lawsuits
Mitchell Roth
agrees to pay $1 million in restitution to
homeowners from whom he collected fees plus
$125,000 in penalties, the California attorney
general's office says.
By Nathan
Olivarez-Giles, Los Angeles Times
08-25-10 --
Former Los Angeles attorney Mitchell Roth has
agreed to settle charges that he allegedly
collected fees from 2,000 debt-entrenched
homeowners with promises of foreclosure relief,
but only filed "frivolous and phony" lawsuits,
according to the California attorney general's
office. . . . Roth has agreed to pay $1 million
in restitution to homeowners plus $125,000 in
penalties, according to the settlement reached
Tuesday. He did not admit to any wrongdoing as
part of the settlement. . . . Roth's suits did
not result in foreclosure relief, but instead
"left 2,000 desperate homeowners in even greater
debt," Atty. Gen. Jerry Brown said in a
statement.
The settlement
brings to a close the state's charges against
Roth. However, his former business partner, Paul
Noe, is still in litigation on the charges, said
Evan Westrup, a spokesman for the attorney
general's office.
CONNECTICUT
For "Recovering" Skadden Partner, a New Career
Sprouts From Grape Vines
By Douglas S.
Malan | The Connecticut Law Tribune | New York
Lawyer
08-24-10 --
Things were coming together for Michael
Connery’s plan to transition from the practice
of law in the late 1990s. . . . The New York
firm he had worked at since graduating from the
University of Connecticut School of Law in 1975
was offering a program where attorneys could
start scaling back their practice in
anticipation of retirement from the law. . . .
Then in 2001, he found a 108-acre property in
Stonington surrounded by tidal marshes that
featured a World War II-era airplane hangar and
an old airfield. He knew something could be made
of the land and the hangar, but he wasn’t sure
what.
DISTRICT OF
COLUMBIA
ABA Urges D.C. Circuit to Reject FTC Position in
'Red Flag' Case
Mike Scarcella,
The National Law Journal
08-24-10 --
The Federal Trade Commission has no authority to
lump lawyers in with creditors in the
enforcement of regulations that govern the
prevention of identity theft, attorneys for the
American Bar Association said in court papers
filed in a federal appeals court in Washington.
. . . The ABA brief, filed Friday in the U.S.
Court of Appeals for the D.C. Circuit, responds
to FTC papers that argue that lawyers should be
held to comply with so-called
"red flag"
rules that require financial institutions and
creditors
to develop identity theft prevention programs. .
. . The FTC maintains that lawyers act as
creditors when they provide legal services
without immediately taking payment. The ABA
sued the FTC
in August 2009
in federal district court in Washington, winning
a favorable ruling. The FTC is challenging the
ruling
on
appeal.
FLORIDA
Credit Card Expenses Could Be Smoking Gun if
Rothstein Partner Is Indicted
John Pacenti,
Daily Business Review
08-24-10 --
Attorney Stuart Rosenfeldt has always insisted
he knew nothing of the
$1.2 billion
Ponzi scheme
perpetrated out of his Fort Lauderdale, Fla.,
firm by his law partner Scott Rothstein. . . .
The question is whether a jury will believe it.
. . . Sources tell the Daily Business Review
that Rosenfeldt is likely to be indicted by the
end of the summer or in early October and that
other major players at Rothstein Rosenfeldt
Adler could also face charges centered on
illegal campaign contributions.
MARYLAND
Lawyer Swindled in E-Mail Scam Gets 5 Years for
Stealing from Clients
By Debra Cassens
Weiss, ABA Journal
08-24-10 --
A Maryland med-mal lawyer whose own wrongdoing
was revealed after
he was
swindled in an e-mail scam
was sentenced Monday to five years in prison. .
. . Bradley Schwartz, 62, will be eligible for
parole in 15 months, the
Washington
Post
reports. Still, his sentence is longer than
recommended by state guidelines. Judge Steven
Salant said he hoped to send a message of
deterrence, scolding Schwartz for violating his
position of trust.
MICHIGAN
Law School Hunger Striker Revealed: He Is a She
Karen Sloan, The
National Law Journal
08-25-10 --
"Ethan Haines" caught the attention of the legal
blogosphere in early August by announcing that
he would go on a hunger strike to push law
schools to release more accurate employment
statistics. . . . It turns out that "Haines" is
actually Zenovia Evans, a 28-year-old woman
living in Denver -- and that the hunger strike
leaves room for fruit smoothies. . . . Evans,
who graduated from Thomas M. Cooley Law School
in 2009, revealed her real name on Tuesday in an
article in USA Today -- in part, she told The
National Law Journal, to dispel criticism that
her hunger strike is a hoax. . . . Evans said
that she specifically chose an alias that would
lead people to assume she is a white man, when
in fact she is a black woman. "That's primarily
what the industry looks like right now," she
said, referring to the former demographic group.
"I wanted people to say, 'Hey, that's my story
too.'"
MINNESOTA
Minneapolis attorney's $1.6 million award upheld
Brian L. Williams
had sued his former employers, claiming they
didn't cut him enough of a settlement that he
helped to negotiate.
By Abby Simons,
Star Tribune
08-25-10 --
The Minnesota Court of Appeals has upheld a $1.6
million award to a Minneapolis attorney who
claimed his law firm failed to give him a proper
cut of a large settlement he helped negotiate
for the state of Minnesota and others in a
securities fraud suit. . . . However, the court
also ruled that Brian L. Williams is not
entitled to collect punitive damages from his
former employer, Heins Mills & Olson. . . . A
Hennepin County jury awarded Williams $1.6
million in June 2008, based on his claim that he
had been cut out of some of the legal fees he
earned in a securities fraud case against AOL
Time Warner.
Zombies Win $165K Settlement for Arrests Over
Consumerism Protest
By Martha Neil,
ABA Journal
08-24-10 --
Seven individuals who were arrested while
dressed as zombies then jailed for two days
after they participated in a 2006 street protest
of "mindless" consumerism have agreed to accept
a $165,000 settlement from the city of
Minneapolis that includes their attorney's fees.
. . . Police said they were carrying simulated
weapons of mass destruction. However, the St.
Louis-based 8th U.S. Circuit Court of Appeals
was apparently persuaded by the white-powdered
faces, dark-ringed eyes, fake blood and lurching
walk with which members of the group sought to
make their point that they should have been
treated as street protesters rather than
criminals, according to the
Star-Tribune.
NEW YORK
Judge Reprimands Milberg, Co-Counsel Over
Information's Accuracy
Nate Raymond, New
York Law Journal
08-25-10 --
A federal judge has sanctioned Milberg LLP and
its co-counsel over the accuracy of information
cited to two confidential witnesses quoted in a
complaint against Sony Corp. . . . Southern
District of New York Judge Robert P. Patterson
Jr. reprimanded Milberg, Lax LLP and Lange &
Koncious for not including in the complaint the
"necessary context" to a statement attributed to
an ex-Sony employee. The judge also reprimanded
the firms for refusing to strike claims included
in the pleadings that were unsupported by a
confidential witness until after a safe harbor
period had lapsed.
Brooklyn Law
School graduate Irina Shekhets dies in Nepal
plane crash on her 30th birthday
By Leo Standora,
Daily News Staff Writer
08-25-10 --
A Brooklyn Law School graduate who friends said
was a success at everything she did from banking
to long-distance running died Tuesday in a plane
crash in Nepal on her 30th birthday. . . . Irina
Shekhets and 13 others, including three other
Americans, were killed when their Nepalese
turboprop went down in heavy rain in a
mountainous region about 50 miles south of the
capital city of Katmandu. . . . Longtime friend
Irina Krogan, 32, of Brooklyn, said Shekhets,
who grew up in Fair Lawn, N.J., and took the New
Jersey bar exam in July, went to Nepal to try
her hand at mountain climbing to celebrate her
birthday and mark what she hoped would be a
happy new chapter in her life.
NY Lawyers Attack Bar Groups Over Plans to Cut a
Deal With City on Indigent Defense Work
By Dan Wise | New
York Law Journal | New York Lawyer
08-25-10 --
Several groups of 18-B attorneys have attacked
the five bar associations suing New York City
over proposed changes to its assigned counsel
program for "abandoning" them in settlement
talks and taking a position that "will
substantially if not completely demolish the
role of the private bar." . . . Three groups,
made up predominately of lawyers who accept
assignments under Article 18-B of the County Law
to represent the poor in criminal cases, have
written to Manhattan Acting Supreme Court
Justice Anil Singh (See Profile) urging him not
to approve a settlement in New York County
Lawyers' Association (NYCLA) v. Bloomberg,
107216/10.
Wachtell Partner Dead at Age 49
By Nate Raymond |
New York Law Journal | lNew York Lawyer
08-25-10 --
Craig M. Wasserman, a mergers and acquisitions
partner at Wachtell, Lipton, Rosen & Katz, died
Monday. He was 49. . . . Wasserman had been
diagnosed 2 1/2 years ago with a malignant brain
tumor, which was the cause of death, said Edward
D. Herlihy, co-chairman of the firm's executive
committee. . . . "Craig was a brilliant and
creative thinker and a supportive and committed
colleague, as well as one of our nation's top
lawyers," Wachtell Lipton said in an e-mail. "He
demanded the best from himself and from each of
us in the service of our clients and the firm,
and will be missed tremendously."
NORTH CAROLINA
Local lawyer recovering from wreck that killed
two
By Richelle
Bailey, McDowell News
08-25-10 --
Local attorney and Marion Mayor Steve Little
said his law partner might never recover
emotionally from a fatal wreck that troopers say
he caused Tuesday in Rutherford County. . . .
“Physically, he is in pain,” Little stated.
“Emotionally, he is completely devastated. He
will recover physically, but I don’t know about
otherwise.” . . . Little is referring to
30-year-old William “Lee” Lattimore of Nebo, who
is Little’s partner in the law firm Little &
Lattimore. Lattimore’s focus is in real estate
law. . . . Investigators say Lattimore is to
blame for a fatal crash in Rutherford County
Tuesday that claimed the lives of an elderly
couple.
OHIO
Ohio Lawyer Suspended for Billing More than 24
Hours in a Day
By Debra Cassens
Weiss, ABA Journal
08-25-10 --
An Ohio lawyer has been suspended for
overbilling local courts for her representation
of poor clients, submitting bills for more than
24 hours a day on three different occasions. . .
.. . The lawyer, Kristin Ann Stahlbush of
Toledo, will be suspended for two years, with
the second year stayed if she completes a
one-year probationary period, the
Legal
Profession Blog
reports. / Here is the court's
opinion.
Chesley subject of Ky. bar inquiries
Investigations
involve fen-phen, priest abuse settlements
By Jim Hannah
•Cincinnati Enquirer
08-23-10 --
The Kentucky Bar Association is investigating
Cincinnati class-action lawyer Stan Chesley in
connection with two of Northern Kentucky's
biggest legal cases of the past decade. . . .
The existence of the two separate confidential
investigations was revealed in legal documents
filed in ongoing litigation involving a $200
million settlement for Kentuckians sickened by
the diet drug fen-phen and in the $84 million
settlement for people abused by Covington
diocesan priests. . . . Chesley's attorney,
Frank Benton IV, declined to comment, citing
Kentucky Supreme Court rules intended to keep
ongoing disciplinary investigations
confidential. Chesley is licensed to practice
law in Kentucky in addition to Ohio.
SOUTH CAROLINA
Columbia attorney enters plea in embezzlement
scam
Staff Report,
Charleston Regional Business
08-25-10 --
A local attorney pled guilty Tuesday to
conspiracy to commit mail fraud and money
laundering as part of a corporate embezzlement
scheme. . . . John Fitzgerald O’Connor Jr., 63,
of Columbia, admitted to being involved in a
conspiracy to liquidate and conceal money and
property that had been stolen by a former
client, William J. Trier II, from his employer,
Crane Co. in Aiken County. . . . The plea was
announced by the office of U.S. Attorney Bill
Nettles.
VIRGINIA
Arnold & Porter Associate Charged With
Possession, Production of Child Pornography
Jeff Jeffrey, The
National Law Journal
08-25-10 --
Joshua Gessler, 41, an
Arnold &
Porter
associate in the firm's Northern Virginia
office, has been charged with five counts of
possession of child pornography and one count of
production of child pornography. . . . According
to a news release from the Fairfax County Police
Department, the investigation began after the
department received a report that a 15-year-old
Centreville, Va.-area girl had run away from
home. Through the course of the investigation,
detectives discovered that Gessler reached out
to the girl online. Gessler allegedly met the
girl in person and took photos of her that the
police department says were "of a sexual
nature." He later allegedly transmitted them
electronically. . . . Gessle's case has been set
for trial on Sept. 9 in the Fairfax County
Juvenile and Domestic Relations District Court.
Court officials said he was being prosecuted in
juvenile court because the victim was a minor.
WASHINGTON
Washington lawyer accused of paying 15-year-old
runaway for sex
By Tom Jackman,
Washington Post Staff Writer
08-25-10 --
A lawyer in one of Washington's biggest firms
was arrested and accused of paying a 15-year-old
runaway from Fairfax County to have sex with him
while he photographed the encounter. . . .
Joshua J. Gessler, 41, an associate with Arnold
& Porter, was arrested Aug. 9 and charged with
one count of producing child pornography and
five counts of possessing child pornography.
Court records show he spent a week in jail
before being released on his own recognizance
Aug. 16 by Chief Fairfax Juvenile Court Judge
Kimberly J. Daniel. . . . Fairfax police did not
disclose Gessler's arrest until asked about it
this week by a reporter for WRC (Channel 4),
which first reported the story.
WISCONSIN
Wis. lawyer's license revoked for embezzling
money
Associated Press,
Dallas Morning News
08-25-10 --
The Wisconsin Supreme Court has revoked the law
license of a Milwaukee attorney who admitted to
embezzling $2.4 million from a Texas-based
client and then losing it all at area casinos. .
. . The court ordered Wednesday that attorney
Thomas H. Koch's license be revoked after Koch
said he couldn't defend himself from the
charges.
August
21 - August 23,
2010
GENERAL
Judge Approves Less Than Half of Milberg's
'Unusual' Added Fees Request
Nate Raymond, New York Law Journal
08-23-10 --
A federal judge has slashed what he called an
"unusual" request for additional fees by
Milberg
for a 2006 settlement of a securities class
action against Nortel Networks Corp. . . .
Milberg, along with its Canadian co-counsel and
the settlement's claims administrator, asked for
$2.77 million in fees and expenses not included
in their 2007 fee applications. Southern
District of New York Judge Richard M. Berman,
citing the "very substantial" $38 million in
fees and expenses already awarded to Milberg and
Koskie Minsky,
based in Toronto, approved only 41 percent of
the request. . . . The settlement stemmed from
lawsuits filed in 2001 over an accounting
scandal at Nortel, a Canadian-based manufacturer
of telecommunications equipment.
Salmonella Outbreak Draws Litigation
Sheri Qualters, The National Law Journal
08-23-10 --
Seattle food illness plaintiffs law firm
Marler Clark
filed what it believes is the first lawsuit
linked to the nationwide recall of 380 million
eggs. . . . The firm initially filed Dzinovic v.
L&K Tricoli LCC in Wisconsin's Kenosha County
Circuit court on July 22 against Baker Street
Restaurant and Pub, which is K&L's business
name. On Aug. 18, the firm amended the complaint
to add Wright County Egg, a Galt, Iowa, egg
producer linked to the salmonella outbreak.
Sonnenschein Seeks Supreme Court Review of
Dispute With Former Partner
Jeff Jeffrey, The National Law Journal
08-23-10 --
Sonnenschein Nath & Rosenthal
has filed a petition for certiorari with the
Supreme Court, asking the justices to weigh in
on a breach of contract dispute between the firm
and a former partner. . . . The petition stems
from a 2005 suit filed by Douglas Rosenthal, a
former antitrust partner at Sonnenschein,
alleging that he was
not fairly compensated for representing the
families of those killed in the 1988 bombing of
Pan Am Flight 103 over Lockerbie, Scotland.
That contingency work made $18 million for
Sonnenschein. Rosenthal also claimed he was owed
origination credit for Sonnenschein's
representation of Sun Microsystems against
Microsoft Corp. That work generated $20 million
for the firm. . . . Rosenthal said the firm kept
him at the bottom of the partner pay scale, and
encouraged him to forgo the Pan Am contingency
work to focus on corporate clients who would
guarantee a payout.
CALIFORNIA
Calif. Attorney Charged in Child Sex Sting
Amanda Bronstad, The National Law Journal
08-23-10 --
A Los Angeles attorney was charged on Aug. 18 in
an Internet child sex sting. . . . The Los
Angeles County, Calif., District Attorney's
office alleged that Eduardo Brito Leaton, 39,
made friends with a 16-year-old girl while
intending to commit a "lewd act." He was
arrested on Aug. 17 after sending sexually
explicit e-mails to the girl, who was in reality
an undercover police detective.
Firm Says Its Fee in Beverly Hills Divorce Will
Hit $1 Million
Amanda Bronstad, The National Law Journal
08-23-10 --
Lawyers at a boutique family law firm in Beverly
Hills, Calif., are touting a judge's award of $1
million in legal fees as one of the largest
granted in a divorce case prior to trial. . . .
Steven Knowles and Michael Collum, who founded
Knowles Collum last year, received the fee award
during a hearing on Aug. 12. Los Angeles County,
Calif., Superior Court Judge David Cunningham
granted more than $20,000 in temporary monthly
spousal and child support to Kathrin Saadian in
her divorce from Beverly Hills real estate
investor George Saadian. A trial is scheduled in
December. . . . "This is a large fee award by
any standard, even for a large firm," said
Collum, whose firm represents Kathrin Saadian.
"For a small firm, I've never heard of it."
Tenacious attorney shaking up Merced legal
system
By Jonah Owen Lamb, mercedsun-star.com
08-23-10 --
About six months ago, Mishya Rimpel Singh, a
34-year-old attorney with Merced County's Public
Defender's Office, was sent to defend
misdemeanor cases as part of a rotation in her
office. . . . She didn't like what she found.
Few cases were going to trial. More often than
not, defendants weren't getting a fair shake,
she recalled. The prosecutors were often not
willing to budge or compromise. "The dynamic and
the culture in Misdemeanor Land were changing,"
she said. "I went there and challenged the
status quo." . . . Under her direction, more and
more misdemeanor cases were taken to trial
instead being settled. The usual 10 to 20
misdemeanor trails a week jumped to 70 or 80. At
one point there were so many misdemeanor trials,
there weren't enough jurors. Bailiffs were
collecting unwitting citizens from Starbucks.
MARYLAND
Attorney Pleads Guilty to Failing to File
Maryland Income Tax Returns
Citybizlist press release
08-23-10 --
Attorney General Douglas F. Gansler announced
today that attorney Gerald I. Katz, of Potomac,
pled guilty today to two counts of willful faire
to file Maryland income tax return in the
Circuit Court for Anne Arundel County. Judge
William Mulford scheduled sentencing for October
19th. The charge is a misdemeanor subject to a
maximum penalty of five years in jail and a
$10,000 fine
NEW YORK
Federal Judge Finds No Conflict by Alleged Mob
Counsel
Mark Hamblett, New York Law Journal
08-23-10 --
A federal judge has refused to disqualify on
conflict of interest grounds a defense attorney
with deep ties to the Gambino organized crime
family. . . . Attorney Joseph R. Corozzo Jr. is
defending Michael Scarpaci against a
multi-felony racketeering indictment, and
prosecutors attempted to have him disqualified
because of four alleged potential conflicts,
including that his father and uncle are top
Gambino figures, and the claim that Corozzo is a
Gambino family associate and serves as its
"house counsel." . . . But Southern District of
New York Judge Lewis A. Kaplan wrote in
United States v. Scarpaci,
09 Crim. 1243, that "the government has not
identified any actual conflict of interest
arising from Corozzo's representation of
Scarpaci," and any of the potential conflicts
raised by prosecutors may be waived by the
defendant as long as the waiver "is knowing and
intelligent."
PENNSYLVANIA
Ex-Attorney Charged With Embezzling $1 Million
From Clients, Firm
Shannon P. Duffy, The Legal Intelligencer
08-23-10 --
When former attorney Jeffrey Abramowitz was
indicted last week on charges of embezzling more
than $1 million from his own clients, the news
almost seemed to provide a sense of relief to
his former law partner, Mitchell H. Klevan, who
told The Legal Intelligencer that he has spent
the past 20 months working to undo the damage of
Abramowitz's alleged crimes. . . . Abramowitz,
47, is accused in the indictment of stealing
money from clients by lying to them about the
settlements of their cases. He allegedly spent
some of the funds himself and diverted the rest
to a "favored client" and her family. . . .
According to Klevan, the alleged improprieties
in Abramowitz's cases were exposed in late 2008
when some of the clients filed lawsuits against
the two-lawyer firm and others filed complaints
against Abramowitz with the
Disciplinary Board of the Pennsylvania Supreme
Court.
August 19 - August 20, 2010
GENERAL
What Can
Lawyers Learn From 'Othello'?
Michael P.
Maslanka, Texas Lawyer
08-20-10 --
Shakespeare's "Othello" ends badly, with several
bodies on stage. The tragic scene offers a
cautionary tale for attorneys. Here's the
combustible stew that brought about the carnage:
Iago is a Venetian soldier. Othello is his
high-ranking commander, who promotes the
handsome and smooth-talking Cassio, an
administrative-type, as his second-in-command,
instead of Iago. An angered Iago vows vengeance.
. . .Because the Turks declare war on Venice,
the three of them sail off to Cyprus for battle,
followed by Othello's smart and attractive new
wife, Desdemona. She is white and young; Othello
is black and aged. The two are very much in
love, but the stark contrast between them
undermines Othello's confidence. . . . Iago
cooks up a plan. He gets Cassio demoted. Knowing
Desdemona's good nature and decency, he
persuades Cassio to ask her to intercede with
Othello on Cassio's behalf. She does. The more
she argues for Cassio's reinstatement, the more
suspicious Othello becomes of her. . . . Iago
then does two things: He subtly suggests to
Othello that Cassio and Desdemona desire one
another, and he plants evidence of Desdemona's
supposed betrayal. The result is Othello going
off the deep end and taking Desdemona's life.
Realizing Iago's manipulation too late, he then
takes his own life, gasping that "for naught/did
I hate/but all in honor ... speak of one that
loved not wisely but too well." The end. . . .
What are Othello's lessons for lawyers? Two
focus on key facets of human behavior, neither
of them pretty.
2nd Circuit
Rejects Law Firm's Role Against Client's
Subsidiary
Nate Raymond, New
York Law Journal
08-20-10 --
A federal appeals panel has affirmed a lower
court's ruling disqualifying Blank Rome from
representing a company adverse to a subsidiary
of Johnson & Johnson, which is a client of the
firm. . . . The 2nd U.S. Circuit Court of
Appeals ruled that Blank Rome could not continue
representing GSI Commerce Solutions Inc. in
litigation against BabyCenter LLC, a wholly
owned subsidiary of Johnson & Johnson, which the
firm represents on compliance and privacy
matters. . . . In a ruling in which the 2nd
Circuit addresses for the first time whether a
law firm infringed on its duty of loyalty by
taking on a representation adverse to a client's
corporate affiliate, the circuit affirmed a
decision by Southern District Judge Jed S.
Rakoff, who found that Blank Rome's engagement
letter had not given it broad authority to
accept a case adverse to a Johnson & Johnson
affiliate's interest.
Judge Won't
Enjoin Fee Fight Between Firms in Cell-Phone
Contract Litigation
Lakin Chapman
claims it has a right to fees as damages for
breach of contract by Freed & Weiss in 'Larson
v. Sprint Nextel Corp.'
Mary Pat
Gallagher, New Jersey Law Journal
08-20-10 --
A U.S. judge in Newark on Wednesday allowed an
arbitration to proceed between two Illinois
firms over a portion of $5.775 million in legal
fees approved as part of a class action
settlement. . . .
Lakin Chapman
of Wood River, Ill., claims it has a right to
one-third of the fees, or $1.925 million, as
damages for breach of contract by the Chicago
firm of
Freed & Weiss,
class counsel in Larson v. Sprint Nextel Corp.,
07-cv-5325. . . . The suit challenged the
imposition of flat-rate, early-termination fees
on cell-phone contracts. . . .U.S. District
Judge Jose Linares denied Freed's motion to
enjoin the arbitration on the basis that it
would essentially re-litigate Linares's earlier
decision approving the settlement and allocating
fees.
9th Circuit
Reverses $29 Million Fee Award Over Procedural
Problem
Leigh Jones, The
National Law Journal
08-20-10 --
A federal appeals court has snatched away a $29
million fee award that two law firms received
for serving as lead plaintiffs counsel in a
California backdating securities class action. .
. . The 9th U.S. Circuit Court of Appeals on
Wednesday vacated a lower court ruling granting
the fee award to New York's
Labaton
Sucharow
and
Glancy Binkow
& Goldberg
of Los Angeles. In a 2-1 decision, an appeals
panel held that U.S. District Judge Jeremy Fogel
denied the plaintiffs in the backdating case the
opportunity to argue for reducing the fee. The
panel remanded to Fogel, who sits in the
Northern District of California.
Young Lawyers
Turn to Public Service
By Lisa Faye
Petak, New York Times
08-19-10 --
In August 2008, Nathan Richardson committed to
following in the footsteps of so many young
lawyers before him: a summer position with a big
law firm, followed by a job offer before he ever
cracked open a third-year textbook. And then
everything changed. . . . With offers of
employment made in August 2008 and the full
force of the recession hitting in October, many
big law firms — like
Latham &
Watkins,
where Mr. Richardson was a summer associate —
had to re-evaluate the job offers made to
members of the class of 2009. As a way to keep
their costs down while holding on to promising
associates, many offered the graduates the
chance to take up to a year off before starting
as associates, complete with a stipend of
$60,000 to $75,000. They could travel, do
research, or choose — as many did — to work in
the public sector.
Harvard Leads
Among Supreme Court Law Clerks
Tony Mauro, The
National Law Journal
08-19-10 --
With a little help from its former dean Elena
Kagan, Harvard Law School has edged out Yale Law
School in the race for the most Supreme Court
clerks this term. The Court on Wednesday
released the official list of clerks and their
law schools and prior clerkships, confirming
what's been available at
Above the Law
and elsewhere.
ARIZONA
Supervisor
Alleges He’s Victim of County Attorney Extortion
Attempt
By Terry Carter,
ABA Journal
08-20-10 --
There's no shortage of legal news out of
Maricopa County, Ariz., when it comes to Sheriff
Joe Arpaio and former County Attorney Andrew
Thomas. . . . After reports of the Justice
Department's threats to sue Arpaio and
allegations that private investigators were
tailing a court-appointed lawyer hired to
investigate abuse-of-power claims, came news
from
CBS Channel 5
that a member of the county board of supervisors
alleges that when then-Maricopa County Attorney
Thomas was preparing to resign so he could run
for attorney general, a deputy county attorney,
Lisa Aubuchon, tried to extort him into making
sure Thomas and Arpaio got their choice for
Thomas’ interim replacement.
Attorney
followed by PIs
Out-of-state
lawyer investigating Thomas probe says he was
shadowed
by Michael Kiefer
and Yvonne Wingett - The Arizona Republic
08-19-10 --
Colorado attorney John Gleason, who was
appointed by the Arizona Supreme Court to
investigate the ethical conduct of former
Maricopa County Attorney Andrew Thomas and
Deputy County Attorney Lisa Aubuchon, said he
was tailed by private investigators while in
Phoenix earlier this year. . . . Gleason, who
has made several trips to Phoenix since May,
told The Republic on Wednesday that he was
informed of the tails by other law-enforcement
officials. He declined to answer detailed
questions on the matter. . . . "In spite of the
difficulty, we are conducting the investigation
the court asked us to conduct," Gleason said.
"It has no impact on the investigation." . . .
The ethics inquiries were launched after a
Superior Court judge ruled that Thomas had
prosecuted Supervisor Mary Rose Wilcox for
political reasons. The State Bar of Arizona
asked the Supreme Court to look into them, and
the court appointed the out-of-state attorney to
avoid conflict of interest.
CALIFORNIA
Howard Rice
Sued for Deferring, Then Dumping, New Hire
Kate Moser, The
Recorder
08-19-10 --
In the summer of 2008, with the country jittery
over the spreading financial crisis, Sarah
Martinez found herself among the unlucky crop of
bright law school graduates whose big-firm job
offers were deferred. . . . Now she's suing San
Francisco's Howard, Rice, Nemerovski, Canady,
Falk & Rabkin, the firm that her lawyer says
strung her along until past the point when she
could have signed on with another big law firm.
. . . Martinez's attorney, Kathleen Lucas, said
Martinez's plight signals a larger problem. In
fact, her San Francisco firm has been contacted
by two other recent graduates who were put in a
bind after firms rescinded their job offers. . .
. "The issue really is this deferment -- they
bring some of the people on, but not all of
them," Lucas said. "How are they selected?"
DISTRICT OF
COLUMBIA
Trial Date
Set in Discrimination Suit Against Ballard Spahr
Jeff Jeffrey, The
National Law Journal
08-19-10 --
A federal judge in Washington has set a May 16,
2011 trial date in a discrimination suit filed
against Ballard Spahr by a former secretary. The
setting of a trial date is the first action in
the case since the U.S. Court of Appeals for the
D.C. Circuit remanded the case in June. . . .
The case stems from the 2004 firing of Vanessa
McFadden, who had worked in the firm's
Washington office as a legal secretary since
1989. According to her complaint, McFadden took
a leave of absence from the firm in Oct. 2002,
when her husband was diagnosed with cancer.
McFadden began to have health problems of her
own in April 2003, the complaint said.
FLORIDA
Fla. Bar
Website Rules Face Challenge in State High Court
Julie Kay, Daily
Business Review
08-19-10 --
Proposed Florida Bar
rules
for web advertising would require law firms to
spend millions of dollars redoing their existing
sites, could push clients to choose law firms in
other states, and violate the First Amendment. .
. . Those are just a few of the objections
submitted by eight large law firms that banded
together to fight the proposal and submitted a
66-page comment to the Florida Supreme Court.
The deadline for comments was Monday. . . . The
Florida Bar has until Sept. 7 to respond.
Many Fla. GCs
Collected More Last Year Than in 2008
Mike Seemuth,
Daily Business Review
08-19-10 --
Many chief legal officers collected more
compensation last year than in 2008 as their
companies began to recover from the economic
recession. . . . A Daily Business Review survey
of pay for 34 corporate general counsel at
public companies based in Florida shows 23, or
67 percent, got more total compensation in 2009
than in 2008.
Chart:
Corporate Counsel Compensation
Many general
counsel in South Florida had little or no change
in their base salary last year but collected
more bonus money and stock awards after their
companies' financial performance improved. . . .
For example, a larger stock award helped make
Thomas W. Hawkins the highest-paid chief legal
officer at a publicly traded company in South
Florida. Hawkins is senior vice president,
general counsel and corporate secretary of
Mednax, formerly known as Pediatrix, a leading
provider of pediatric physician services that
has diversified into anesthesia services. The
Sunrise-based company increased both its revenue
and net income last year compared with 2008.
MASSACHUSETTS
Massachusetts
Same-Sex Ruling on Hold
Marcia Coyle, The
National Law Journal
08-20-10 --
A Massachusetts
federal court
decision striking down as unconstitutional a
section of the federal Defense of Marriage Act
will go on hold pending any appeal by the
government. . . . The U.S. Department of Justice
and parties represented by Gay & Lesbian
Advocates & Defenders on Wednesday agreed to a
stay of the decision issued by U.S. District
Judge Joseph Tauro last month in Gill v. Office
of Personnel Management. . . . At the same time,
the judge issued an amended judgment which
described what his July decision means for each
plaintiff -- seven married, same-sex couples and
three widowers. That judgment was agreed to by
both the group and the department.
MINNESOTA
Lawyer admits
he had cocaine in Winona courtroom
By Nolan
Rosenkrans, winonadailynews.com
08-19-10 --
Another loose end was tied in a notorious murder
case Wednesday when the attorney for a convicted
killer admitted possessing cocaine in a Winona
courtroom. Chuck Ramsay, 43, pleaded guilty to
third-degree possession of cocaine. The plea
agreement calls for Ramsay to spend, at most, 30
days in jail. . . . His lawyers will also
argue at his Sept. 20 sentencing that Judge Jeff
Thompson should convict him of a gross
misdemeanor or misdemeanor instead of a felony.
. . . After a drawn out, 19-month process —
delayed by failed attempts to resolve the case,
and the murder trial of Ramsay’s client Jack
Willis Nissalke — Ramsay succinctly steered the
case toward closure Wednesday in the courtroom.
. . . “I’m not innocent, your honor,” Ramsay
said.
MISSISSIPPI
Zach Scruggs
Wants Fraud Conviction Tossed
Shelia Byrd, The
Associated Press, Law.com
08-20-10 --
Zach Scruggs is asking a federal judge for a
chance to clear his name in a judicial bribery
scheme that toppled his attorney father and
other prominent attorneys and officials. . . .
Zach Scruggs -- son and former law partner of
disgraced
former litigator Richard "Dickie" Scruggs
-- was released from a halfway house in August
2009 after serving a 14-month sentence and lives
in Oxford, Miss. He has filed a motion asking
the court to vacate his conviction, eliminate
the terms of his supervised release and refund
the $250,000 in fines or fees he paid. . . . In
the documents that first appeared Thursday in
federal court records, Zach Scruggs said a
recent U.S. Supreme Court decision shows he
didn't violate the "honest services" fraud law.
Killer's
attorney pleads guilty to having cocaine in
Winona courtroom
Pioneer Press
08-19-10 --
A convicted killer's attorney has pleaded guilty
to having cocaine in a Winona courtroom, a local
newspaper is reporting. . . . Chuck Ramsay, 43,
pleaded guilty Wednesday to third-degree
possession of cocaine, according to the Winona
Daily News. His sentencing is scheduled for
Sept. 20.
NEBRASKA
Informant
lawyer:
‘I had to do it'
By Juan Perez
Jr., World-Herald Staff Writer
08-20-10 --
Omaha attorney Terry Haddock says he knew he
risked losing everything by becoming an
informant in a federal drug ring investigation.
. . . He would put his family in jeopardy.
Mistakes in his legal career, his dimming
financial picture and medical problems would be
exposed, he said. . . . He expected defense
lawyers to call him a liar and seek to discredit
him. . . . All because Haddock, 52, would record
his talks with Shannon Williams, a gang member
and convicted crack dealer who once was
acquitted of a murder charge. . . . “I had a
personal struggle with myself whether to get
involved in that,” Haddock told a federal judge
Thursday after emerging from eight months in
seclusion. . . . “But I could not live with the
fact that this man would be walking the streets.
I had to do it.”
NEW YORK
New York City
Bar Enters Debate Over Mosque Near Ground Zero
Bar president
defends construction citing freedom of religion
as a cornerstone of the U.S. Constitution
Daniel Wise, New
York Law Journal
08-20-10 --
The New York City Bar issued
a strongly
worded statement
Wednesday defending the right of Muslims to
build an Islamic center and mosque, two blocks
from ground zero, saying "our nation is the
stronger, both internally and in its standing in
the world, for preserving religious freedom." .
. . The statement issued by City Bar President
Samuel W. Seymour placed the association in the
midst of a political debate stirred by President
Barack Obama's defense last week of Muslims'
right to build the mosque as reflecting
religious freedoms that are "essential to who we
are." . . . Stewart D. Aaron, president-elect of
the New York County Lawyers' Association, which
is located across the street from ground zero,
said in an interview yesterday that NYCLA was
founded on a commitment to "inclusion" and
"welcomes the mosque to the neighborhood" as an
addition that would make "the area around ground
zero more vibrant."
Cuomo Cracks
Down on Lawyers Offering Immigrant Legal
Services
By Joel Stashenko
| New York Law Journal | New York Lawyer
08-19-10 --
In Attorney General Andrew Cuomo's latest move
against entities he contends are purporting to
offer legal services for immigrants that are
never delivered or are delivered illegally, his
office said Mr. Cuomo has gotten assurances from
seven companies that they will close. The latest
companies include Oficina Legal Para Hispanos in
Manhattan, which is run by attorney Geoffrey S.
Stewart, the son of disbarred defense attorney
Lynne Stewart, who is now in prison following
her conviction for providing material support to
a terrorist conspiracy.
Ex-Prosecutor’s Monthly Student Loan Bill Was
Unlawfully Cut From $1,030 to $400, Says IG
Report
By Martha Neil,
ABA Journal
08-19-10 --
A former New York prosecutor benefited from
special treatment by a state agency, which
unlawfully arranged during the past three or
four years to cut his monthly student loan bill
from $1,030 to $400, an inspector general's
report says. . . . Then, when Michael McDermott
still didn't ante up the $400, workers at the
Higher Education Services Corp. canceled over
$2,000 in collection fees and protected him from
wage garnishment, the IG contends in a report
today. Former Albany County prosecutor McDermott
is now in private practice at O'Connell &
Aronowitz, reports the Albany
Times Union.
OHIO
Report: State
lawyers were moonlighting
By James Nash,
The Columbus Dispatch
08-20-10 --
Two well-compensated lawyers for the state
collected thousands of dollars on the side
working for private clients while on government
time, an investigative report concluded
yesterday. . . . Inspector General Thomas P.
Charles' probe found that a $110,000-a-year
attorney for the Ohio Board of Pharmacy and an
$80,000-a-year lawyer for the Ohio Environmental
Protection Agency improperly moonlighted on
state time. . . . David Rowland, the chief legal
counsel for the Board of Pharmacy, earned about
$40,000 a year for private work on top of his
state job, the inspector general said.
OREGON
Oregon bar
suspends attorney Mark Lawrence in McMinnville
bottom-slapping case
The Associated
Press, OregonLive.com
08-19-10 --
An Oregon defense attorney has been ordered
suspended after releasing a confidential
recording in a juvenile case to media as the
case was attracting national attention three
years ago. . . .
The
McMinnville News-Register
reports that the Oregon State Bar has ordered
attorney Mark Lawrence suspended from practice
for 60 days over the
2007
disclosure in the case of middle school boys in
McMinnville facing criminal charges for slapping
the bottoms of female classmates.
PENNSYLVANIA
Phila. lawyer
Abramowitz accused of stealing from clients,
firm
by Jeff
Blumenthal, Staff Writer Philadelphia Business
Journal
08-20-10 --
A Philadelphia lawyer has been indicted for
allegedly embezzling more than $1 million from
clients and his former law firm, federal
prosecutors in Philadelphia said Friday. . . .
The U.S. Attorney’s Office said an indictment
against Jeffrey Abramowitz, 47, of Plymouth
Meeting, Pa., was unsealed Friday that charged
him with five counts of mail fraud and two
counts of wire fraud. Abramowitz is a former
partner at
Klevan &
Abramowitz
— referred to in the indictment as “law firm no.
1” — which was located at 1515 Market St. He was
arrested Thursday and will make his first court
appearance Friday afternoon.
Wyeth Wins Second Hormone Replacement Therapy
Case in a Row
Amaris
Elliott-Engel, The Legal Intelligencer
08-20-10 --
A Philadelphia jury found Wednesday that the
hormone replacement therapy drug Prempro was not
the cause of two Pennsylvania women's breast
cancer. . . . The first Philadelphia hormone
replacement therapy trial to group cases of
multiple plaintiffs together for one trial was
reverse bifurcated, and the plaintiffs attorneys
first had to prove to the jury the causation of
the plaintiffs' breast cancer from their use of
Prempro. . . . Judge James Murray Lynn presided
over the trial. The first phase opened July 27
and continued for almost three-and-a-half weeks.
Center City
Lawyer Facing Federal Embezzlement Charges
KYW Newsradio
08-20-10 --
A now-suspended Philadelphia attorney has been
indicted on charges he ripped off his clients
and his law firm. . . . KYW’s Tony Hanson
reports that a federal grand jury alleges that
attorney Jeffrey Abramowitz stole clients’
settlement money, cash he claimed would be held
in escrow, and the firm’s legal fees between
2005 and 2008.
RHODE ISLAND
Lawyer,
developer charged in RI corruption scheme
By Eric Tucker,
AP, BusinessWeek
08-20-10 --
A lawyer and a developer were indicted Thursday
in a corruption investigation that has led to
charges against three former North Providence
town council members and that federal
prosecutors say involves bribe offers totaling
more than $100,000. . . . A new grand jury
indictment alleges a pattern of pay-to-play
government in which businesses were extorted by
members of the town council, and in which zoning
changes sought by developers were available for
a fee of thousands of dollars. . . . The
indictment charges attorney Robert Ciresi and
developer Edward Imondi, alleging they acted as
middlemen for bribes offered to town council
members and collected a portion of the payments.
TEXAS
Bar Turns
Over 63,000 Member E-Mail Addresses to Law
Student
By Mary Alice
Robbins, Texas Lawyer
08-19-10 --
Facing allegations that they violated the Texas
Public Information Act, on Aug. 16 State Bar of
Texas officials released to a member of the
public the e-mail addresses of nearly 63,000
lawyers. . . . Joe Crews, who represents Marni
von Wilpert in her suit against the State Bar
and its executive director Michelle Hunter, says
the list of lawyers’ e-mail addresses clearly is
subject to the Public Information Act. . . . “I
don’t understand why it was an issue,” says
Crews, owner of the Crews Law Firm in Austin. .
. . On Aug. 14, von Wilpert filed von Wilpert v.
State Bar of Texas, et al. in a state district
court in Travis County. As noted in the
original
petition,
von Wilpert seeks a declaratory judgment that
the defendants violated the Public Information
Act and injunctive relief to require release of
the information. But the State Bar voluntarily
released the e-mail addresses.
Former Texas
District Attorney Indicted
By David Lee,
Courthouse News Service
08-19-10 --
A former district attorney of Jim Wells County
is accused of taking more than $200,000 in
seized money for himself. A grand jury accused
Joe Frank Garza, 63, of misapplication of
fiduciary property, a first-degree felony. Garza
was district attorney for Jim Wells and Brooks
Counties in south Texas from 2003 to 2008. . . .
According to the indictment and court records,
Garza took "$200,000 or more" in asset
forfeitures, and spent it on himself and his
employees. . . . An audit conducted after Garza
left office found that more than $1.2 million
had been transferred to two of Garza's
secretaries and his office's head of crime
victims service from 2004 to 2008, according to
an Associated Press report, which cited the
Alice News-Echo. . . . The money allegedly was
spent on car allowances, stipends,
reimbursements, advances, audits, travel and
contract labor.
Rule 11
Sanctions Vacated Against Sidley, McKool Smith
in Infringement Case Gone Bad
Alison Frankel,
The American Lawyer
08-19-10 --
Rule 11 sanctions are always a black mark on a
firm's good name, no matter how trivial the
monetary consequences. So when Fort Worth,
Texas, federal district court Judge Terry Means
imposed
sanctions on McKool Smith and Sidley Austin,
finding them liable for pursuing frivolous
claims on behalf of a patent holding company
called Allcare Health Management Systems, McKool
and Sidley took the matter quite seriously
indeed, even though Means demanded just $5,000
from McKool and $2,500 from Sidley. McKool hired
Finnegan, Henderson, Farabow, Garrett & Dunner
and Sidley brought in Baker Botts to get the
sanctions overturned. . . . Last week their
efforts succeeded. Means agreed, in a
52-page order,
to vacate sanctions against McKool, Sidley and
two other firms that had represented Allcare in
patent infringement litigation against Highmark
Inc., a health insurance company. "It was a very
regrettable situation," Mike McKool told us.
"This was the first time, to my knowledge, that
I or my law firm was ever accused of
misconduct."