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Santa Clara-based 3Com Corp. recently sold assets from its CommWorks division to UTStarcom Inc. for $100 million. Lawyers in the Palo Alto office of Wilson Sonsini Goodrich & Rosati represented UTStarcom Inc. in the deal. Attorneys in the San Francisco office of Gray Cary Ware & Freidenrich represented 3Com. For 3Com, the sale of CommWorks marks a move out of the telecommunications business. CommWorks is a maker of networking products for the telecom industry. But as part of the deal, 3Com will keep its license for all patents and intellectual property for the products being transferred to UTStarcom. As the technology sector continues to be a tough environment in which to do deals, asset deals like this have become more common. “I think that we’re starting to see technology businesses willing to restructure themselves,” said John Howard Clowes, who led the deal team at Gray Cary. “It has gotten to a point were they see the need to shuffle things around and refocus their business.” Clowes said negotiating each asset made for a complex deal. “It took a lot of work on both sides to work through dealing with each asset. It was by far the single most difficult factor of structuring the deal — it came out in every aspect,” he said. While the telecommunications industry has also been a dire place in which to do business, UTStarcom’s presence in China — where telecom is doing well — makes this a good transaction for the company, Clowes added. Leading the deal for 3Com were in-house counsel Mark Michael, senior vice president, general counsel and secretary; William Becker, deputy general counsel for IP; and Scott Forsyth. Wilson partner Carmen Chang led the deal team. Partners Brian Erb and Michael Okada also worked on the deal. In addition to Clowes, Gray Cary partners Brian Fenske and Vicky Lee helped on the deal. GOREWITZ V. CONSOLIdated The family of Arthur Sturm, a man killed in an October 2001 traffic accident on Highway 152 near Los Banos, was awarded about $10.7 million in a wrongful death suit. An Alameda County jury returned the verdict on Feb. 27. San Francisco attorneys at The Arns Law Firm represented the family in the case. An attorney at the Pasadena law firm Baraban & Teske represented the defendants, Toyota Transport, Toyota Logistics and Consolidated Personnel Corp. In Gorewitz v. Consolidated Personnel, 01-034858, Sturm’s wife, Janet Gorewitz-Sturm, and his two stepchildren received $1.5 million in economic damages and $9 million in non-economic damages. In addition, Sturm’s biological daughter — born through artificial insemination to a lesbian couple — also recovered damages. The child had been born six months after Sturm’s death. In a 9-to-3 decision, the jury awarded the child a $175,000 portion of the verdict. “The jury questionnaire showed that most of the jurors did not accept the fact that a lesbian couple should raise a child,” said Robert Arns, the lead attorney on the case. “But once the jury found out that [Sturm] had had a long-term friendship with the lesbian mother . . . they realized this was appropriate.” Arns’ team presented 18 witnesses over two days, including Sturm’s stepchildren, neighbors and friends. “Arthur was such a tremendous fellow and his wife and stepchildren were very compelling people,” Arns said. Sturm was commuting to work when the accident occurred. An 18-wheel Toyota truck, carrying a load of car parts, rear-ended the sedan at 55 miles per hour. Sturm, who was wearing a seatbelt, according to his attorneys, died instantly. The driver of Sturm’s vehicle survived. Morgan Smith and Jonathan Davis also worked on the suit at The Arns Law Firm. The biological daughter was represented by Craig Needham of Needham, Davis, Kirwan & Young of San Jose. Partner Jeffrey Baraban of Baraban & Teske represented the defendant in the case.

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