TODAY'S STORIES - Thursday, May 15, 2008
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Clement Resigns as Solicitor General
Legal Times
Solicitor General Paul Clement, who led the courtroom defense of the Bush administration's anti-terror legal policies, announced Wednesday he is leaving his job June 2. Clement argued 49 cases before the Supreme Court in the last seven years and was viewed as probably the most valued "catch" from the Bush Justice Department, with law firm managing partners guessing he could attract a $2 million or $3 million package. Details about his next step were not immediately forthcoming from Clement.
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SEC Charges Broadcom GC, Other Executives
The Recorder
An internal investigation into stock-option backdating at Broadcom held three executives responsible and gave a pass to general counsel David Dull and co-founder Henry Samueli. But the SEC didn't see it that way. On Wednesday, the SEC charged Dull and Samueli, along with former CEO Henry Nicholas and former CFO William Ruehle, for an alleged scheme that led to a $2.2 billion restatement last year. The clash between the investigations stands out in the crowd of backdating cases where the two normally match.
2nd Circuit Splits Over Scope of Class Action Fairness Act
New York Law Journal
A panel of the 2nd Circuit split Wednesday over the scope of a federal law designed to funnel securities cases to the federal courts. Deciding a case of first impression, the majority ruled that an action over a company's failure to disclose it was insolvent should be heard in federal court, even though it was brought under New York state's consumer fraud law and did not involve nationally traded securities. A dissenting judge said the majority was engaged in a "judicial redrafting" of the law.
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Texas Court Overturns Multimillion-Dollar Vioxx Verdict
The Associated Press
A Texas appeals court on Wednesday overturned a multimillion-dollar verdict against Merck & Co. in one of the few trials it lost over its withdrawn painkiller Vioxx. A jury in 2006 awarded $32 million to the widow of 71-year-old Leonel Garza, a short-term Vioxx user who died of a heart attack in 2001. That award later was cut to about $7.75 million under a Texas law limiting damages. On Wednesday, a panel of the Texas 4th Court of Appeals overturned the verdict, ruling in favor of Merck.
Effort to Collect $116 Million From PLO May Go to Trial
New York Law Journal
The family of a couple that was gunned down in Israel by terrorists has a right to a jury trial in a declaratory judgment action seeking to collect $116 million from the Palestinian Liberation Organization, a Manhattan judge has ruled. The vexing issue before Supreme Court Justice Shirley Werner Kornreich was whether there is a right to a jury trial when the sole cause of action is for declaratory judgment, which, as a product of legislation, is neither equitable nor legal in nature.
Scandal-Plagued Ohio Attorney General Resigns
The Associated Press
Ohio's attorney general resigned Wednesday under threat of impeachment because of a sexual harassment investigation in his office and his extramarital affair with an employee. Marc Dann admitted earlier this month to the affair, which he said contributed to an atmosphere leading to sexual harassment claims against a top aide. Three aides were forced out in the investigation, which showed managers encouraged a casual work environment with frequent profanity and inappropriate interactions with subordinates.
Jury Finds Attorney Must Return Half of Bonus Paid by Client
The Legal Intelligencer
A Philadelphia jury has found that a family law attorney must return half of the $200,000 bonus a client claimed she was duped into paying after the attorney and his firm helped her secure nearly $5 million in a post-nuptial settlement. The jury awarded the plaintiff $100,000 on her breach of contract claim against Charles C. Shainberg of Shainberg & Viola, but did not find the firm liable on that claim. The jury found for both defendants on the remaining claim, which alleged a breach of fiduciary duty.
U.S. Interrogation Lawyers Could Face Overseas Criminal Charges
The American Lawyer
In his new book, "Torture Team," Philippe Sands argues that former Bush administration lawyers could be prosecuted abroad for endorsing interrogation techniques that constitute torture. Sands, an English lawyer who has done some work on behalf of British detainees at Guantanamo, analyzes the notorious memo that authorized a range of aggressive interrogation techniques. It was signed by the former U.S. Secretary of Defense, Donald Rumsfeld, on Dec. 2, 2002; it was retracted two months later.
K&L Gates Adds to Taiwan Office With Latest Merger
Legal Week
Kirkpatrick & Lockhart Preston Gates Ellis has bolstered its presence in Asia by merging with nine-lawyer local firm J&J Attorneys-at-Law. The lawyers will become part of K&L Gates' Taipei office, creating a team with more than 25 legal professionals. The office is K&L Gates' second move to expand its Asian offering in recent weeks, following its launch in Shanghai only last month. In addition to Shanghai and the Taipei branch, which opened in 2003, K&L Gates also has offices in Hong Kong and Beijing.
Lawyers' Writing Skills Still Bad
The National Law Journal
Law firm leaders, judges and clients have complained for years about the lack of writing skills in the legal profession, where huge decisions often turn on the written word. "Most of us would be far better writers if we'd never gone to law school," says Douglas Winter, an attorney and writing coach at Bryan Cave who says young attorneys often imitate the kind of writing they read in law school, which is a mistake. And technology, which in many ways has improved writing skills, also poses its own challenges.
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The Biotech Work Force: Unique Employment Law Issues
Special to Law.com
About 10 percent of the biotech work force was born outside the United States. Although the tensions and challenges faced by employers with a melting pot of nationalities in their work force may be unique, application of labor and employment laws is not. Attorneys Mary Dollarhide and Hannah Cole write that biotech companies must apply the same vigor and creativity they use in developing new technologies and products to creating solutions that allow compliance with applicable employment laws.
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Is Your Firm Ready for Virtual Servers?
Law Technology News
Virtualization may be the way to go for small to midsized firms. Instead of servers running at 10 percent or less capacity at certain points in the day, virtual servers can share hardware resources -- raising your average usage rate and lowering hardware and support costs.
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As Time Passes, Hope Dwindles for Missing Ga. Lawyer
Fulton County Daily Report
It's been more than two months since Elizabeth Calvert, an attorney at HunterMaclean in Savannah, Ga., and a Hilton Head Island, S.C., resident, and her husband went missing. Eight days after the couple's disappearance, their former accountant -- who may have been the last person to see them -- committed suicide. The case is still under investigation, but hope for the Calverts' return is dwindling. "Any good outcome here is disappearing, it seems," says HunterMaclean managing partner John Tatum.
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