Legal Research

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Brutal Week May Not Be the End of Law Firm Layoffs

Legal Times

By the close of business on Friday the 13th, more than 1,100 lawyers and staff in the U.S. had been fired or asked to consider buyouts. Why so much pain in one week? Several theories are making the rounds, including the rocky reception of the federal stimulus package and the already grim balance sheets for 2009. Unfortunately, more bad news may be on the way. One consultant says last week's layoffs will accelerate other firms' decision to lay people off, and law firm leaders aren't offering much encouragement

The Coming Law Firm Hiring Crisis

The American Lawyer

As law firms consider the prospect of pay cuts, delayed starting dates, sharply reduced offers and more layoffs, a time bomb is set to go off this fall, when the same firms that recently laid off lawyers are due to start welcoming large groups of new lawyers, for whom they will have too little work. This does not seem to be a sustainable situation. If it's not, it will, at a minimum, force law firms to make a harsh choice between the lawyers they already have on staff and the ones they're about to welcome.

Judge Holds DOJ Prosecutors in Contempt in Stevens Case

Legal Times

In a status hearing Friday, U.S. District Judge Emmet Sullivan held four Justice Department lawyers in contempt for failing to turn over 33 documents related to post-trial motions in the case of former Alaska Sen. Ted Stevens, who was convicted of corruption charges in October. Prosecutors initially withheld the documents under the work product doctrine.

Federal Judge Rules Against Lawyer Who Alleged Congress Restricted His Fees

Legal Times

A federal judge has ruled against Washington, D.C., solo practitioner Mark Zaid in his pursuit of $466,000 from the government on a claim that Congress unlawfully interfered with a private contract he had with two clients and restricted his compensation. Zaid alleged that a private relief bill that Congress passed restricted the attorney fees he was entitled to collect. The bill awarded $2 million to Zaid's clients and capped his fee at 10 percent.

N.Y. High Court: Lawyer Subject to Treble Damages for Attempt to Deceive Court

New York Law Journal

Tracing the legal principles behind a New York statute on lawyer deceit to a law adopted by the English Parliament in 1275, the New York Court of Appeals has determined that an attorney can be subject to treble damages in New York for an unsuccessful attempt to deceive a court. Responding to certified questions from the 2nd Circuit, the Court of Appeals ruled that the "unique statute of ancient origin" was not a codification of common law fraud, and applied to attempted deceptions as well as successful ones.

ERISA Class Action Filed Against Fund That Invested With Madoff

The Legal Intelligencer

Spector Roseman Kodroff & Willis has filed a class action in the Eastern District of Pennsylvania against investment management fund Austin Capital Management Ltd. for millions in losses due to alleged improper investments by the fund into securities controlled by accused Ponzi schemer Bernard Madoff. The law firm says the suit, filed on behalf of a pension fund, is the first suit involving Madoff to be filed against an investment manager for violations of the Employee Retirement Income Security Act.

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Aggressive IP Strategy Fails -- Again

The Recorder

Eyebrows went up when Silvaco Data Systems sued the customers of a software maker, Circuit Semantics, that it had beaten in a trade secrets case. Last week, one of those customers, Cypress Semiconductor Corp., notched a win in the long-running fight. A judge granted summary judgment to Cypress, ruling that Silvaco didn't have the evidence to show that Cypress acquired or knew about the stolen trade secrets when it bought software from Circuit Semantics.

Three Offices of Attorney Declared 'Vexatious Litigant' Shut Down

The National Law Journal

The State Bar of California has shut down three offices of attorney Mitchell W. Roth, who was recently declared a "vexatious litigant" by a federal judge in Los Angeles, according to the Bar. Roth, who had expanded his law practice to include foreclosure cases, has been hospitalized due to severe depression since Jan. 23, according to the Bar.

Former Miss. Auditor Sentenced in Bribery Case

The Associated Press

A former Mississippi state auditor and a disbarred lawyer were each sentenced to two years in federal prison Friday for their roles in a judicial bribery scheme that toppled famed tobacco litigator Richard "Dickie" Scruggs. Former Mississippi auditor Steve Patterson and disbarred attorney Timothy Balducci were involved in a conspiracy to bribe a judge in a dispute between Scruggs and other lawyers over $26.5 million in legal fees from Hurricane Katrina litigation, authorities said.

Dreier Released From Jail, Begins Home Detention

New York Law Journal

Attorney Mark Dreier was released from jail Friday and was escorted by deputy U.S. marshals to his Manhattan apartment, where he will remain under home detention until $400 million fraud charges against him are resolved. Dreier was also required to put up a $10 million personal recognizance bond co-signed by his mother and son.

Peanut Corp. of America Files for Bankruptcy

The Associated Press

The peanut processing company at the heart of a national salmonella outbreak is going out of business. Peanut Corp. of America filed for Chapter 7 bankruptcy Friday, the latest bad news for the company that has been accused of producing tainted peanut products that may have reached everyone from poor school children to disaster victims. So far, the outbreak has been suspected of sickening more than 630 people and may have caused nine deaths. It also has led to one of the largest product recalls in U.S. history.

Foley Hoag Forms a 'Stimulus Plan' Practice Group

The National Law Journal

Foley Hoag has formed an interdisciplinary team to help clients get stimulus plan money from the U.S. government for capital projects and other qualified programs or projects. The Boston-based firm's government relations practice formed the team with attorneys from four other practice groups, including energy technology and renewables; environment; infrastructure and privatization; and life sciences.

Visual Computer Forensic Analysis

Special to Law.com

Computer forensics is a slow process in which examiners embark on a tedious file review that can add extra costs. But researchers Greg Conti and Erik Dean have adapted and applied visualization to the process, potentially resulting in a dramatic reduction of the time it takes to review files.

Visit Legal Technology

There's a Better Way to Lay Off Employees

Legal Times

As the country faces an economic downturn, law firms and corporations are forced to take actions such as downsizing and mass layoffs as cost-cutting solutions. As a result, employers and employees are struggling with a multitude of challenges, and a proactive solution is needed immediately. The key is strategic planning, says lawyer and business development professional Melanie A. Klinghoffer. She outlines a three-part plan designed to focus on an organization's most valuable asset: people.

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Ex-Heller and Cooley Godward Associate Braces for Tough Market

The Recorder

Did people forget to tell law firms that a pink slip is not an appropriate Valentine's Day card? It was probably because they were busy job-hunting. If so, they're in good company, with people like corporate attorney Inna Efimchik. At Heller Ehrman when the firm collapsed, she successfully moved with some of Heller's Venture Law Group to Cooley Godward, only to be laid off a few months later. "There really isn't anyone to send your resume to," Efimchik says, but she's been "networking as wildly as I can."

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