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LAW.COM Newswire Highlights June 26, 2009

By David Badertscher, PLL

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Former N.J. Prosecutor Defends Contract for Ashcroft

The National Law Journal

Former New Jersey U.S. Attorney Christopher Christie told a House subcommittee Thursday that he did nothing wrong when he steered a multimillion-dollar contract to the firm of former Attorney General John Ashcroft. He said controversy over the no-bid contract -- worth as much as $52 million -- has been exaggerated by Democrats looking to derail his bid as a Republican running for New Jersey governor. Telling lawmakers he had a train to catch, Christie walked out of the hearing in frustration after 2 1/2 hours.

Closing In on Term's End, High Court Rules in School Strip Search Case, 3 Others

The National Law Journal

Ruling in a case that struck a chord with families nationwide, the Supreme Court on Thursday said that the strip search of a middle school girl in pursuit of drugs was a violation of her Fourth Amendment right against improper search and seizure. The justices also issued rulings in a Sixth Amendment case concerning forensic evidence, a dispute regarding the adequacy of programs for English language learners and a maritime law matter. The Court indicated that Monday will be the final decision day of the term.

Quinn Emanuel Prevails in Early Test of WaMu's Billion-Dollar Case Against JPMorgan Chase

The American Lawyer

Quinn Emanuel, that scourge of banks across America, emerged smiling on Wednesday from the latest round in Washington Mutual's knock-down, drag-out fight with JPMorgan Chase. After four hours of argument, a federal bankruptcy court judge denied requests by JPMorgan Chase and the FDIC to stay two adversary proceedings tied to Washington Mutual's attempted recovery of $10 billion it says was fraudulently transferred to JPMorgan when it acquired Washington Mutual Bank.

Buchanan Ingersoll to Cut Associate Pay

The Legal Intelligencer

In a meeting with associates Thursday, Buchanan Ingersoll CEO John A. Barbour announced that the firm is making cuts in associate compensation, in response to the recession. In information provided to The Legal Intelligencer, Barbour said the firm is reducing associate compensation by between 5 percent and 10 percent per year, effective July 1. The reductions will be determined on an individual basis and will be based on such factors as billable hours, profitability and quality of work, Barbour said.

$200 Million Wage-and-Hour Suit Filed Against Northwestern Mutual

The National Law Journal

Three workers have filed a $200 million lawsuit against Northwestern Mutual Life Insurance Co. for failing to pay them overtime wages under California and federal law. "They've got a system of white-collar peonage here," said a plaintiffs lawyer, who said the workers are classified by the company as independent contractors to circumvent minimum wage and overtime laws. A Northwestern Mutual spokeswoman says the plaintiffs are "financial representatives" who have never been employees of the company.

No Bail for Blogger Accused of Threatening Judges

The Associated Press

A judge denied bail Thursday to a New Jersey blogger charged with threatening to assault or murder three federal judges and ordered Harold "Hal" Turner transferred to Illinois to face the charge, which carries a maximum prison term of 10 years. Attorneys on both sides had reached a tentative agreement Thursday that would have allowed Turner to be released on $200,000 bail, confined to his home and prohibited from using the Internet by monitoring software, but the judge expressed reservations with the bail package.

Fannie Mae, KPMG Push Hard to Settle Securities Suit

The National Law Journal

After four years and tens of millions of dollars in legal fees, defense lawyers in the Fannie Mae securities fraud suit asked a federal judge Thursday to send the case to mediation. Attorneys for Fannie Mae and its former auditor, KPMG, first made the request Wednesday in a joint motion filed with Judge Richard Leon of the U.S. District Court for the District of Columbia. The move amounts to the two corporations' hardest push yet to settle the hodgepodge of litigation that grew from Fannie's 2004 accounting scandal.

Dissident Bondholders Stand Ground on Committee Request in GM Bankruptcy

The American Lawyer

Dissident bondholders are apparently not backing down from their request for their own official committee to act alongside the court-appointed committee of unsecured creditors in the General Motors bankruptcy. The co-chair of the bankruptcy practice at Patton Boggs argues that the creditors committee is not adequately representing smaller bondholders' interests, because it appears to be going along with a plan to sell GM that could jeopardize those bonds -- or wipe them out almost entirely.

Prosecutors: Stanford Should Wait in Jail for Trial on Fraud Charges

The Associated Press

Texas billionaire R. Allen Stanford, who pleaded not guilty Thursday to charges he swindled investors out of $7 billion as part of a massive investment scam, should be held without bond while he awaits trial on fraud charges, prosecutors argued at a bond hearing. Prosecutors said Stanford has access to a private jet and an international network of wealthy acquaintances -- and possibly to billions of dollars in secret funds.

Federal Judge Declines to Dismiss Charges Against Abramoff Associate

The National Law Journal

A judge refused Thursday to dismiss the government's case against former Jack Abramoff associate Kevin Ring, the ex-lobbyist accused of helping Abramoff pull off a plot to bribe lawmakers and their aides by lavishing them with gifts, trips and meals. The ruling is much-needed good news for the prosecution. Last week, DOJ lawyers disclosed that Public Integrity chief William Welch II had recused himself as case supervisor. Ring's lawyers had accused Welch of redacting important information from documents given to them.

California's Global Warming Suit Melts Away

The National Law Journal

The 9th Circuit has granted California Attorney General Jerry Brown's motion to voluntarily dismiss the state's global warming lawsuit against six of the nation's largest automobile manufacturers. The order put an end to the lawsuit, which was the first of its kind when filed in 2006 against Chrysler, Ford, General Motors, Honda, Nissan and Toyota. The suit claimed that the companies created a public nuisance under federal common law by contributing to global warming through the emissions from their automobiles.

Senate Confirms Yale Law Dean as State Department Legal Adviser

The National Law Journal

Voting largely along party lines, the Senate on Thursday confirmed Harold Koh to be legal adviser to the State Department. Koh, the outgoing dean of Yale Law School, will head up the department's legal staff, advising Secretary of State Hillary Clinton. He returns to the department after having served as an assistant secretary of state during the Clinton administration.

Iranian-American Lawyers Call for Independent Investigation of Election

The National Law Journal

One day after President Obama declared that the United States and other countries were "appalled and outraged" by the recent government crackdown in Iran, the Iranian American Lawyers Association called for the creation of an independent commission to investigate human rights violations in the aftermath of the June 12 election. California lawyer P. Patrick Ashouri, a member of the association's board of directors, warns that hundreds of protesters and journalists could face execution under Iranian law.

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Investigating Personal Web-Based E-Mail

Business Crimes Bulletin

You suspect an employee is leaking inside information. A computer forensic analysis reveals the employee has accessed a personal Web-based e-mail account from a company computer and that the login information has been recovered. Can you log into that account and read its e-mail content?

Visit Legal Technology

IP Trial Strategy: Buying Tivo's Bull

The Recorder

As the make-or-break patent trial between Tivo Inc. and EchoStar Corp. got under way in Marshall, Texas, Tivo's top brass had an idea: Let's buy a cow. Tivo's lawyer bid on and won the Grand Champion Steer -- the most prized farm animal at the Farm City Week auction. Did buying the animal help Tivo win? Companies look for every possible advantage when they head down to the small towns of the Eastern District of Texas, but not everyone thinks friendly community gestures are the best strategy.

Visit In-House Counsel

Lawyer Duo Masters Grueling Canoe Endurance Race

Texas Lawyer

Imagine paddling an 18-foot canoe almost nonstop for 97 hours. Add Texas summer heat, mosquito hordes, aggressive fish, getting knocked out of the canoe by an overhanging tree and almost no sleep. What have you got? The Texas Water Safari canoe race, recently completed by Dallas lawyers Nick Hofman and Edgar McQueen. For finishing within the 100-hour time limit, the two received patches. "Nick had one of the best quotes of the whole adventure: 'Never have I done so much for so little,'" says McQueen.

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Attorney Provides Avenue for Recovery to Injured Small Investors

Daily Business Review

Retiree Jacob Richard Froess thought it was safe to invest his savings through the brokerage arm of his bank, but lost $14,000 before he could get his money out. Last month, he scored a difficult victory before an arbitrator with the Financial Industry Regulatory Authority, with help from attorney Mark Tepper. "To me, the greatest sound in the world is the sound of Goliath falling to his knees," says Tepper, a former New York prosecutor who moved to Fort Lauderdale, Fla., and now focuses on representing investors.

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Full post as published by New York Supreme Court Criminal Term Library on June 26, 2009 (boomark / email).