TODAY'S STORIES - Wednesday, January 14, 2009
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Report: Politics, Ideology Drove Hiring Decisions in Justice Department's Civil Rights Division
Legal Times
A report released Monday by the Justice Department's two watchdogs says the former head of the DOJ's Civil Rights Division routinely violated federal law and department policy by using political and ideological affiliations in hiring several career attorneys. Bradley Schlozman, the report says, actively recruited those he deemed "real Americans" -- members of the Federalist Society and others with conservative bona fides -- and in the process routinely overruled the judgments of his deputies on hiring issues.
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Calif. Court Revives Secondhand Smoke Case Against Apartment Complex
The Recorder
An asthmatic 7-year-old girl's public nuisance suit against her family's apartment complex over secondhand smoke in outdoor common areas has been given the go-ahead. On Monday, Los Angeles' 2nd District Court of Appeal ruled that Melinda Birke not only had standing to file suit as a tenant, but also raised serious allegations warranting further hearings. The girl's father, a civil litigator who filed the complaint in his daughter's name, said he believes the ruling sets a national precedent.
N.Y. Judge Rejects Amazon's Claim Against Web Sales Tax Statute
New York Law Journal
Manhattan Supreme Court Justice Eileen Bransten has ruled that Amazon.com did "not come close" to demonstrating the unconstitutionality of a new state tax statute that requires many online retailers to collect state sales tax on purchases by New York residents. Bransten held that the statute contains the requisite requirement that an online retailer must do a substantial amount of business in New York before companies can be forced to collect and remit state sales tax.
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Financial Sector in Distress Conference
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Federal Court Declares UBS Executive Fugitive
The American Lawyer
A federal court in Florida has declared Raoul Weil, the former chairman of Zurich-based UBS' global wealth management and business banking division, a fugitive. Weil was indicted in November as part of an ongoing tax probe by the Justice Department and IRS into whether UBS helped wealthy U.S. clients hide assets in overseas accounts in order to avoid paying taxes.
5th Circuit Reopens Federal District Judge Probe
Texas Lawyer
Because of new criminal charges lodged last week against U.S. District Judge Samuel B. Kent, the Judicial Council of the 5th Circuit has reopened its investigation into misconduct allegations against the judge, who sits in the Southern District of Texas. In an order, 5th Circuit Chief Judge Edith H. Jones wrote that following the upcoming trial of criminal charges against Kent, the judicial council will investigate the additional three charges of misconduct and may impose further sanctions.
Report: Alston & Bird Freezes Salaries
Fulton County Daily Report
Alston & Bird appears to be the latest law firm to announce that it will freeze associate salaries at 2008 levels. The Web site Above The Law reported Monday afternoon that the firm has told associates that raises planned for 2009 will not occur; the site also posted a memo it said was from firm management to associates. In a sign of hope the raises would be restored, the memo said that the salary freeze "will be re-visited through the year" and that the bonus program for 2009 will remain in effect.
Double Victory for Criminal Defendants at the Supreme Court
Legal Times
The Supreme Court issued two opinions Tuesday morning, both of them striking down lower court opinions that had favored prosecutors. In one, the justices agreed that a conviction on the charge of "failure to report" to prison isn't the kind of prior "violent felony" conviction that triggers a 15-year mandatory prison sentence for someone found guilty of illegal possession of a firearm. The second involved the deadline for filing a federal habeas appeal under the Antiterrorism and Effective Death Penalty Act.
Calif. Lawmakers Rush to Rescue Good Samaritans in Wake of Court Ruling
The Recorder
California lawmakers are rushing to introduce legislation that would offer greater legal protections to Good Samaritans in light of a recent state Supreme Court decision that held that a state statute only shields rescuers from liability if they provide medical care in an emergency situation. The ruling puts at risk aid-givers who inadvertently hurt victims while removing them from a burning building or other potentially dangerous scenarios.
2nd Circuit Questions Prosecutor's Obesity Explanation for Striking Juror
New York Law Journal
A federal appeals court has ordered a new look at a prosecutor's explanation that he struck a woman from a jury due to her size. Seth Dolphy maintains that his drug and weapon convictions should be vacated because the prosecutor used the juror's weight as a pretext to discriminate against the woman, who was the only black person on the jury. When the defense objected to the challenge of the juror, the prosecutor said he didn't select overweight people because they "tend to be very sympathetic toward any defendant."
Two Milberg Kickback Defendants Set to Report to Prison
The National Law Journal
Two defendants convicted in the criminal kickback case against Milberg -- former partner Steven Schulman and former lead plaintiff Howard J. Vogel -- are scheduled to report to federal prison this week. Both were sentenced as part of a lengthy investigation in which federal prosecutors alleged that the firm and several of its current and former partners obtained $251 million in attorney fees by paying kickbacks to lead plaintiffs. Milberg agreed to pay $75 million to settle charges last year.
Lawyer Says Scruggs and Ex-Senator Conspired to Cheat Him Out of Fees
The Associated Press
An Alabama attorney has filed a federal lawsuit against incarcerated attorney Richard "Dickie" Scruggs and several others, alleging they conspired with a former U.S. senator to bribe a state court judge and defraud him of millions in legal fees. The former senator is not named, but one source claims it is Scruggs' brother-in-law, Trent Lott. Scruggs is serving a five-year sentence for conspiring to bribe Lafayette County Circuit Judge Henry Lackey in a legal fee dispute over Hurricane Katrina lawsuits.
Sources: Lippman Chosen for N.Y. Chief Judge Slot
New York Law Journal
Jonathan Lippman, the seasoned administrative judge who has been presiding justice of the New York Supreme Court Appellate Division, 1st Department since 2007, was tapped Tuesday by Gov. David A. Paterson to become the state's next chief judge, said several sources. The governor plans to formally introduce Lippman as his choice at a news conference today. Lippman would succeed Judith S. Kaye, who stepped down last month due to mandatory retirement rules.
Madoff Mania: Swiss Suits, Spanish Prosecutors, Possible Pleas
Am Law Daily
It's a mad Madoff world out there, from UBS getting sued by a French financial firm in Luxembourg to a Swiss affiliate of Reed Smith considering a similar suit. Now news comes that Spanish prosecutors are investigating Banco Santander for Madoff-related losses while their brethren in New York reportedly are pursuing a plea deal with the investment manager. Read all things Madoff in Law.com's new special report, Madoff Watch.
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Macfarlanes Set to Make Cuts With 14 Under Threat
Legal Week
Macfarlanes has kicked off a redundancy consultation that could see 14 members of staff laid off. The U.K. firm is reviewing the positions of seven fee earners in its property team and a further seven secretaries in its corporate and property divisions. The firm could not confirm when the consultation would close.
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Five Tips for IT to Survive the Plunge
Law Technology News
Who would have expected the world economy to take such a precipitous plunge? Attorney Ross Kodner issues tips for law practices to batten down the hatches, tighten belts and learn to better exploit their existing infrastructure before rushing to upgrade and buy new technology.
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Hungry Lawyers in Lean Times Invite GCs for 'Free' Lunch
The Recorder
The phone is ringing off the hook in the office of Stuart Nichols, general counsel at tiny MIPS Technologies. Who's on the line? A lot of "old friends" at law firms who suddenly aren't so busy, just calling to see if he wants to go to lunch and "catch up." "When times are good, they've got their book of business -- now they're really desperate for a job that would just involve a few hours," said Nichols. So, are general counsel actually swayed to hand over legal work because of a free lunch?
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Business Development in 15 Minutes a Day
The Legal Intelligencer
Do you ever hear yourself saying there are never enough hours in the day? Do you ever complain you don't have time to go out and build your book of business? Do you want 2009 to be the year you attract a huge number of new clients? If you answered yes to any of these questions, then make sure you put aside 15 minutes each day. That's all the time you need to boost your productivity and your network, according to productivity expert Neen James. She outlines three strategies for getting fast results.
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Slew of Small, Midsize Firm Mergers Begins 2009
The National Law Journal
Merger and practice group acquisition announcements have been coming fast and furious from small and midsize law firms since the year began. It's not unusual for firms to wait until a new year to merge operations, but the recent economic tumble is adding a new dynamic, legal experts say. Namely, the opportunities for cost savings and to pick up practice areas that flourish during bad economic times, as well as the greater availability of legal talent, may be prompting more firms to consider their options.
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