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Top Legal Department of 2008: Qwest Communications

Corporate Counsel

Richard Baer and his legal team did more than rescue a badly managed company from the brink of bankruptcy. As Qwest Communications International's troubles played out in the headlines, Baer and his colleagues transformed the legal department against the backdrop of investigators scouring Qwest's records, looking for the kind of accounting fraud that destroyed Enron and triggered an outcry for corporate reform. That's why Corporate Counsel has named Qwest's lawyers the Best Legal Department of 2008.

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Calif. Bar Votes to Require Client Disclosure on Malpractice Insurance

The Recorder

If it's true that the measure of any successful compromise is that few are fully satisfied, then the California State Bar's Board of Governors cooked up a good deal on malpractice insurance. The board voted Friday to finally approve new rules on coverage disclosure, an issue that's been festering there for two years. Under the compromise, which still must be approved by the state Supreme Court, lawyers who expect to bill a client for more than four hours must pipe up if they aren't covered for malpractice.

Caught in Real Estate Downturn, Firm Cuts Attorneys' Pay by 12 Percent

Daily Business Review

Attorneys at Becker & Poliakoff are being hit with a 12 percent pay cut for the foreseeable future to help the real estate-dominated firm deal with a drop in profitability and delays in collections. The firm's managing shareholder, who used a podcast to inform attorneys and staff about the pay deferment plan, said the pay cut would be lifted if clients begin paying again, provided the attorneys are still with the firm. He said he expects to pay the money retroactively to attorneys who stay with the firm.

Supreme Court Upholds State Municipal Bond Exemption

Legal Times

The Supreme Court rescued the municipal bond market from major disruption Monday by upholding the power of states to give preferential tax treatment to residents who hold bonds from their own states and localities. The Court rejected the claim that by exempting the interest on in-state bonds from taxation while taxing interest on out-of-state bonds, Kentucky was violating the Constitution's Commerce Clause. All 50 states urged the Supreme Court to allow the decades-old practice.

Chewing Gum Trademark Battle Sent Back to District Court

New York Law Journal

A nearly decade-long dispute over the use of formulas for Bazooka bubble gum and other products made by Topps Co. is headed back to a district court following a decision by a federal appeals court. The 2nd Circuit reversed Judge Charles Haight, finding that he erred in granting summary judgment to Cadbury Stani S.A.I.C. over rights to the formulas in parts of South America. Haight's error, the 2nd Circuit panel said, was in viewing the language of the agreements between the companies as unambiguous.

Judge Lets Stand Nine-Month Suspension for Giving 'Noogies'

New York Law Journal

A New York judge will not disturb a school superintendent's decision to suspend a ninth-grade student for giving a teacher "noogies" on two occasions when she allegedly asked him to stop. The judge also denied a motion to stay 14-year-old Ethan Mirenberg's suspension, expunge all records of the incident and allow him to return to his high school. Mirenberg testified at a disciplinary hearing that he "gently" or "lightly" patted the teacher on the head.

Former AOL Time Warner Execs Charged With Inflating Online Ad Revenues

The Associated Press

Federal regulators on Monday said eight former executives of AOL Time Warner Inc. fraudulently inflated the company's online advertising revenues by more than $1 billion between 2000 and 2002. Four of the executives have agreed to settle the civil charges brought by the Securities and Exchange Commission by paying a total of roughly $8 million in fines and returning allegedly ill-gotten gains. The SEC charges are pending against the other four, including two former chief financial officers.

Blank Rome Creates National Appellate Practice

The Legal Intelligencer

Blank Rome has formed a national appellate practice within its litigation department. Litigation department Chairman Alan Hoffman says the firm prides itself on handling "bet the farm" litigation, and the "stakes are never higher" than when a case reaches appeal. The goal of the practice is to market the firm to existing litigation clients who may have appellate needs and to clients who have used another firm at the trial level. The group has the potential to become international, Hoffman says.

N.Y. Judge Rejects Israeli Divorce Based on 'Get'

New York Law Journal

A New York judge has declined to recognize an Israeli divorce judgment based on a "get," or decree of divorce, issued by a Brooklyn rabbi. Supreme Court Justice Jeffrey S. Sunshine allowed the plaintiff-husband's Brooklyn divorce proceedings to go forward, denying the wife's motion to dismiss on the grounds of comity and judicial estoppel. An international family law expert who is not involved in the case said it is "most unusual for a domestic court to look at the reasons behind a foreign divorce decree."

Efforts Pay Off for Lawyer Who Quit to Be Stay-at-Home Dad/Writer

Texas Lawyer

Ben Fountain is just a typical guy who quit his big-firm associate gig to become a stay-at-home dad and write a critically acclaimed short-story collection. It's a decision that has paid off, but not until nearly 20 years elapsed between quitting his day job and publishing his first book in 2006. During his best year financially as a writer, he says he made nearly half the salary of a first-year associate at a big law firm. But Fountain, who didn't like the large-firm life, doesn't regret his choice.

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Minimize Legal Holds' Spoliation Risks

Special to Law.com

Litigation and legal holds are a fact of life for major corporations. While the goal is simple -- preserve and collect data relevant to litigation or government investigation -- there are many opportunities for foul-ups. Here's a look at how software solutions can help make the process painless.

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Law Firms Gear Up for Critical Tax Policy Changes

The National Law Journal

Law firms in Washington are gearing up for what attorneys say could be a crucial debate over U.S. tax policy -- one that might usher in the most extensive tax code changes in the past 20 years. "Any time you have a debate of this significance there's going to be winners and losers," says former Senate Finance Committee tax counsel Patrick Heck, who has joined K&L Gates. Firms are trying to recruit top tax attorneys, building lobbying coalitions and educating clients about what's at stake.

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