Legal Research

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High Court Dismisses Philip Morris Appeal of $79 Million Punitive Damages Verdict

Legal Times

The U.S. Supreme Court blinked Tuesday in a long-running standoff with the Oregon Supreme Court over the handling of a punitive damages suit against Philip Morris brought by the widow of a smoker who died from lung cancer in 1997. As a result, the widow, Mayola Williams, stands to receive at least a portion of the $79 million verdict, which has grown to $150 million with interest. The Court dismissed the case as "improvidently granted" in a one-sentence opinion, nearly four months after argument in the case.

Allen Matkins Cuts First-Years' Salaries

The Recorder

Los Angeles' Allen Matkins cut first-year associate salaries on Tuesday, an indication that cracks are starting to show in the compensation model for new associates. All first-years at the firm are now making $145,000, and those joining in the fall will make that much as well, said managing partner Brian Leck. Some associates at higher levels will also see their pay cut. The firm has laid off a "small number" of people, but Leck said more layoffs were averted by the salary reductions.

We're Back to Where We Started on Saving General Motors, Says Ropes Lawyer

The American Lawyer

In November, The Am Law Daily interviewed Ropes & Gray restructuring co-head Mark Bane to discuss the merits of a prepackaged bankruptcy to save General Motors. Now, several months and many billions of dollars in government aid later, we're essentially back where we started, according to Bane, who explains some of the legal ins and outs of the feds' plans for the ailing automakers.

Board Meeting Remarks Result in $2.1 Million Verdict Against Corporate Counsel

New Jersey Law Journal

It's the type of remark a lawyer would advise a client never to make. Yet corporate counsel William Wachtel allegedly told a management meeting after a hostile takeover that the way to avoid paying severance to the prior management members was to kill them or hope they die. Wachtel, of Wachtel & Masyr in New York, is now attempting to set aside a $2.1 million jury verdict, including $250,000 in punitive damages, in a whistleblower and defamation suit that hinged on those words.

Mixed-Up Names and Mixed Motives at the Supreme Court

Legal Times

A case argued Tuesday at the Supreme Court, involving a "mixed-motive" age discrimination claim, is complex enough to make anyone's head spin -- including the head of Carter Phillips, Sidley Austin's Supreme Court veteran, one of the best in that small universe of skilled advocates. During an intense half-hour at the lectern, Phillips managed to address Justice Stephen Breyer as "Justice Ginsburg," not long after he had attributed an opinion of retired Justice Sandra Day O'Connor to ... Justice Ginsburg.

Locke Lord Bissell & Liddell Conducts Layoffs

Texas Lawyer

Locke Lord Bissell & Liddell laid off associates, counsel and staff for economic reasons Tuesday, affecting all 13 offices, according to the firm's chairwoman, Jerry Clements. She declined to give a headcount but said no partners were laid off, nor were any de-equitized or changed to counsel status. Clements said real estate and finance were the hardest hit practice areas. The firm is also pushing back fall associates' start date to January.

Robinson & Cole Trims 30 Employees Firmwide

The Connecticut Law Tribune

Hartford, Conn.-based Robinson & Cole, which added to its attorney ranks during a busy 2008, announced Tuesday that it is laying off 30 people across its Northeast offices, including 11 attorneys. John B. Lynch Jr., named as Robinson & Cole's managing partner last week, noted that the firm's summer associate and incoming fall associate classes for 2009 will not be affected.

2nd Circuit Blasts Defrauders' 'Chutzpah' for Seeking Post-Judgment Relief

New York Law Journal

A judge's refusal to give post-judgment relief to a Turkish family who defrauded Motorola and Nokia of more than $2 billion has been upheld by the 2nd U.S. Circuit Court of Appeals. Finding the Uzan family's request for a partial "set-off" on $3 billion in damages to the companies set a new standard for "chutzpah," the circuit upheld New York federal Judge Jed S. Rakoff's decision to deny relief. In a decision by Judge Jose A. Cabranes, the panel said it had seen enough of the Uzans over the years.

11th Circuit Rules for Cessna in $100 Million Crash Suit

Legal Times

A federal appeals court has dismissed the bulk of a $100 million tort suit against Cessna Aircraft Co., represented by Gibson, Dunn & Crutcher, on the ground that Italian courts have jurisdiction. The 11th Circuit ruled per curiam to uphold dismissal of 69 of 70 plaintiffs in the case, families of the victims of a 2001 airplane crash in Milan, Italy. The one remaining plaintiff is the family of the single U.S. citizen killed in the crash between the private Cessna plane and a Scandinavian Airlines jet.

Creditors File $300 Million in Claims Against Dreier Firm

New York Law Journal

More than 200 creditors have filed a total of more than $450 million in claims against the now-defunct Dreier law firm, according to court papers. Listed on the claims register are several hedge funds allegedly defrauded by Marc S. Dreier, including Eton Park Capital Management, which seeks more than $84 million, and Fortress Credit Opportunities I, which filed a $61.9 million unsecured claim. Former Dreier contract partners also have lined up to recoup money from the estate.

Auction-Rate Securities Class Action Tossed, but Plaintiffs Say Litigation Not Over Yet

The American Lawyer

On Monday, New York federal Judge Lawrence McKenna dismissed a class action accusing UBS of manipulating the market for auction-rate securities. In his 17-page ruling, McKenna essentially concluded that because UBS had already bought back the auction-rate securities it marketed under an agreement with several state attorneys general, the plaintiffs had no damages case. But co-lead plaintiffs counsel Daniel Girard of San Francisco's Girard Gibbs says he's not giving up on the auction-rate securities litigation.

Federal Judge Blocks Child Porn Charges Against Teens in 'Sexting' Case

The Associated Press

A federal judge on Monday temporarily blocked a prosecutor from filing child pornography charges against three Pennsylvania teenagers who appeared in racy photos that turned up on classmates' cell phones. U.S. District Judge James Munley ruled against Wyoming County District Attorney George Skumanick Jr., who has threatened to pursue felony charges against the girls unless they agree to participate in a class on sexual harassment, sexual violence and gender roles.

State Farm Awarded $15.4 Million in RICO Suit Against Doctors

The Legal Intelligencer

In a civil RICO suit that accused three doctors of operating a fraud mill that sharply inflated medical care costs for car accident victims, a federal jury last week awarded more than $15.4 million to State Farm Mutual Automobile Insurance. The company alleged that the suspected ringleader concocted a scheme of systematically prescribing a full menu of tests, treatments, prescriptions and medical equipment, and routinely padding the files with bills for additional treatments that were never provided.

The 20 Most Influential General Counsel

The National Law Journal

Amid the pressure that general counsel face in today's economy, a select group of in-house leaders has shown particular finesse in managing their departments, choosing outside counsel and remaining committed to diversity in their own ranks and those of the law firms they hire. In this inaugural publication of The National Law Journal's Most Influential General Counsel, we have highlighted 20 attorneys whose leadership has proven strong -- and even creative -- during the turmoil in the legal industry.

Visit In-House Counsel

Software That's Taking Off Like a Rocket

The Connecticut Law Tribune

Finding that no Internet-based practice management software existed at the time, Larry Port and a co-worker designed Rocket Matter, software as a service that gives lawyers the ability to track billable hours and manage matters, contacts, calendars and to-do lists from a Web browser.

Visit Legal Technology

Associate Launches Bid-for-Jobs Web Site for Attorneys, Law Students

The American Lawyer

While the idea of outsourcing legal work overseas has been around for years, last month law associate Laurel Edgeworth launched Law Clerk Connection, a Web site seeking to put junior lawyers in contact with companies and law firms looking to outsource low-end legal work in the U.S. For a fee, law students, graduates and lawyers can create a professional profile on the site and bid on work projects by submitting an hourly rate or a fixed price for completing the project in a specific time frame.

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Smaller Firms Think Outside the Box on Billing

The National Law Journal

When it comes to billing, it's time to get creative. Midsize and small firms, as well as solo practitioners in a wide range of practice areas, including patent law, animal law, business law and bankruptcy, are responding to the tanking economy by doing everything from adopting flat rates and packaging legal services to bartering their work. Some firms are also charging clients less for e-mail advice or teaming with software companies to develop programs that generate low-cost pro se documents.

Visit Small Firm Business

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