Legal Research

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Supreme Court Establishes 'Nerve Center' Test for Corporate Jurisdiction

The National Law Journal

Using simplicity and practicality as its touchstones, a unanimous U.S. Supreme Court on Tuesday held that a corporation's "principal place of business" for purposes of federal jurisdiction is its "nerve center," typically where its headquarters is located. The Court resolved a long-simmering debate among the federal circuits, which, for the past 51 years, have used a hodgepodge of tests. Attorneys responding to the ruling say it will bring much-needed predictability and clarity to the jurisdictional issue.

Justices Seem Receptive to First Amendment Challenge to Anti-Terror Law

The National Law Journal

The U.S. Supreme Court appeared troubled on Tuesday by the broad sweep of a federal law that makes it a crime to give "material support" and "expert advice" to designated terrorist groups. The law was challenged as a vague or overbroad violation of First Amendment rights. But what seemed to bother the justices most was the assertion by U.S. Solicitor General Elena Kagan that the law would bar a lawyer from writing an amicus curiae brief on behalf of such a group in U.S. courts.

3rd Circuit Weighs Validity of Fines in 'Wardrobe Malfunction' Case

The Legal Intelligencer

Like the truth that is sometimes found in jest, a moment of levity in a court proceeding can sometimes help to crystallize a legal argument more cogently than the lengthy and serious discussion that preceded or followed it. Such was the case Tuesday as the 3rd Circuit took up for the second time the issue of decency standards for TV broadcasters. Specifically, the three-judge panel is deciding whether to uphold the hefty fines imposed on CBS for Janet Jackson's infamous "wardrobe malfunction" at the 2004 Super Bowl.

Toyota Executive in the Hot Seat During Testimony Before Congress

The National Law Journal

The president of Toyota's U.S. distribution unit walked a fine line Tuesday as he tried to explain the company's response to recent safety problems without admitting fault that could come back to haunt it in products liability lawsuits and two federal investigations. James Lentz testified before Congress that two factors contributed to the acceleration that consumers say has caused accidents: lack of communication inside the company about prior recalls, and pressure to increase production at the expense of safety.

2nd Circuit Denies En Banc Review of Lynne Stewart's Sentence

New York Law Journal

Three different opinions were issued by the 2nd Circuit Tuesday as judges staked out positions on how the court should review the 28-month sentence disbarred attorney Lynne Stewart was ordered to serve in 2006 following her conviction for helping imprisoned Sheikh Omar Abdel Rahman communicate with his followers. The opinions were issued as the circuit announced it was declining to rehear en banc a November ruling by a three-judge circuit panel that was itself divided over the leniency shown Stewart.

Prominent Miami Receiver Charged in Multimillion-Dollar Fraud

Daily Business Review

Miami attorney and forensic accountant Lewis Freeman, who literally wrote the manual on court-appointed receiverships, has been accused of skimming $2.6 million from court-supervised accounts and misappropriating $6 million in those accounts. The single count of mail fraud conspiracy carries a maximum 20-year prison sentence. An attorney for Freeman has entered a not guilty plea for his client but said that would likely change. Freeman was charged by criminal information, indicating a plea deal has been arranged.

Latham Raids Vinson & Elkins for Four Partners

The American Lawyer

Four partners at Vinson & Elkins have withdrawn from the partnership to join Latham & Watkins in its move to bulk up a new Houston office, sources say. The lateral hires of William Finnegan IV, Brett Braden, Charles Carpenter and Charles Timothy Fenn follow the opening of Latham's Houston office last month with hires from Baker Botts and Akin Gump Strauss Hauer & Feld. Latham has said it hopes to use the Houston office to push further into the energy sector.

Denial of N.Y. Judicial Pay Raise Is Ruled Unconstitutional

New York Law Journal

By failing to grant the state's judges a raise for 11 years, the New York Legislature has created a "crisis" that violates the separation of powers doctrine, the New York Court of Appeals ruled Tuesday. The court found 5-1 that the continued linking of judicial pay to unrelated issues was threatening the judiciary's independence. However, the court declined requests to order an immediate raise or to fashion a remedy other than the "appropriate and expeditious legislative consideration" of the issue on its merits alone.

Ruden McClosky Faces Tough 2010 With Fewer Lawyers, Offices

Daily Business Review

For the first time in a decade, Ruden McClosky's partners were forced to sign personal guarantees to secure the law firm's line of credit with its bank. It's a telling sign of the serious financial problems faced by the firm, which last year saw substantial layoffs, an 18 percent pay cut, mass defections and the closing of two offices. With sources saying attorneys are being courted and offices such as Tallahassee and Miami are struggling, many believe Ruden McClosky is in a major restructuring mode.

Chief Justice 'Startled' by Government Errors in Veterans Cases

The National Law Journal

When he was in private practice at Hogan & Hartson, Chief Justice John Roberts Jr. did not handle veterans' benefits claims. So, during oral arguments at the Supreme Court on Monday in Astrue v. Ratliff, an attorney fee case under the Equal Access to Justice Act, Roberts understandably found "startling" information with which lawyers for veterans are only too familiar: In litigating with veterans, the government more often than not takes a position that is substantially unjustified.

Alternative Billing Boosts Robust 2009 Figures at Crowell & Moring

The National Law Journal

Crowell & Moring had a banner year in 2009. Gross revenue jumped 14.5 percent, climbing from $296 million to $339 million. Revenue per lawyer increased by 9 percent to $809,231. Kent Gardiner, the firm's chairman, attributed the surge in revenue to strong litigation, antitrust and government contracts practices. He also credited greater use of alternative billing arrangements with helping the firm bring in new clients and receive additional business from existing clients.

9th Circuit OKs Privacy Suit Over Disclosure of HIV Status

The Recorder

The 9th U.S. Circuit Court of Appeals has given a San Francisco man another chance to pursue a case for damages against the government after information on his HIV status was shared among several federal agencies. Noting that the 9th Circuit hadn't previously determined the meaning of "actual damages" under the Privacy Act of 1974, Monday's opinion held that people who suffer after federal agencies violate the act are entitled to relief even if their damages aren't economic.

Murder Probe Spawns Charges in $1 Million Conspiracy

New York Law Journal

In 2008, New York lawyer Mark Schwartz and his wife Christina Petrowski-Schwartz, a divorce mediator, were found shot dead -- "execution-style," according to the tabloids -- in their bed in their Brooklyn home. On Monday, the Brooklyn DA's office announced the indictment and arrests of four defendants who, along with the couple themselves, allegedly operated a million-dollar criminal conspiracy involving money laundering, identity theft, mortgage fraud and larceny.

Chicago May Face Uphill Fight in Firefighters Case at Supreme Court

The National Law Journal

The Supreme Court on Monday seemed supportive of arguments by Chicago minority firefighters that a new 300-day period for filing discrimination charges opened each time the city used scores from a discriminatory examination to hire someone. A class of about 6,000 African-American applicants for firefighter positions sued the city, alleging that an entry-level exam had a disparate impact on African-Americans in violation of Title VII. The city conceded the test had a disparate impact but argued the suit was time-barred.

Step 1 for Legal Holds: Trigger Events

Special to Law.com

Howett Isaza partner John Isaza and Goldberg Segalla partner John J. Jablonski provide an overview of the first step necessary to implement a legally defensible, written litigation hold in this initial article of a series aimed at helping organizations discharge their duty to preserve ESI.

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Law Students Can Benefit From Networking Follow-Up

The National Law Journal

Law students are taking advantage of social media, but struggling with follow-up, which is a key component of career and business development. Those are findings from a poll conducted by consultant Ari J. Kaplan, who discusses the importance of mentors and staying connected.

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The Secret to Success for a Young Managing Partner

The Recorder

San Diego attorney P. Randolph Finch Jr., at 38, is the firm managing partner of 30-attorney Marks, Golia & Finch. He joined the firm as a first-year associate, and his career has taken off at an uncharacteristic clip. He became an equity partner within about four years. As a third-year associate, Finch suggested a first-time retreat for the firm. At the retreat, he laid out his five-year plan for the firm, which included his promotion to partner in year one. The equity offer was on the table the next month.

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