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DOJ Charges First UBS Client in Tax Case

The American Lawyer

Almost a month after UBS executives faced a congressional grilling over the bank's alleged attempts to circumvent U.S. tax laws, the Justice Department has brought charges against a client of the Swiss banking giant. As part of DOJ's attempt to determine the identities of UBS's U.S. clients -- UBS provided a list of between 250 and 300 client names -- federal prosecutors have charged accountant Steven Rubinstein with filing a false income tax return. The Zurich-based bank still faces an IRS suit.

2nd Circuit Scuttles Attorney Fees in Civil Rights Case

New York Law Journal

Attorney fees should never have been awarded in a civil rights lawsuit brought by students who challenged their punishment for walking out of a Yonkers high school in a protest, a federal appeals court ruled Wednesday. The 2nd U.S. Circuit Court of Appeals concluded that a lower court judge was wrong to award fees because the judge never granted relief in the case and therefore should not have found the students were "prevailing parties" within the meaning of a civil rights statute.

Hogan & Hartson Cuts 93 Staff

Legal Times

Hogan & Hartson Chairman J. Warren Gorrell Jr. has confirmed that the firm will lay off 93 staff members across its 13 U.S. offices. The firm had previously offered buyouts to 258 staff members in an effort to avoid layoffs, but Gorrell said when the buyout offers expired on March 27, only 28 people had accepted. "This is the darkest day of my 30-year legal career," Gorrell said. He added that he hopes this round of layoffs will be enough to avoid future cuts, but he would not rule them out.

Obama Taps 2 More for Federal Appeals Courts

The Associated Press

President Barack Obama on Thursday nominated a federal judge from Maryland and another from New York to serve on U.S. appeals courts, moving to change the political balance of both courts. Confirmation of the Maryland judge, Andre Davis, would give the 4th Circuit six Democratic-appointed and six Republican-named judges, leaving three vacancies. Gerard Lynch would fill the only vacancy on the New York-centered 2nd Circuit, giving the court seven Democratic and six Republican judges.

U.S. Sailing Club Will Negotiate Terms for the America's Cup

New York Law Journal

The New York Court of Appeals on Thursday upended the defending America's Cup champion's choice of a challenger for a meet that had been set for July 2010. In a unanimous reversal of an Appellate Division decision, the Court of Appeals rejected Swiss-based Societe Nautique de Geneve's choice of a challenger that had failed to meet the requirements of the "unambiguous" legal document that controlled the competition.

Receiver Fees in Dreier Case Estimated at $1.4 Million

New York Law Journal

Now that the court-appointed receiver in the government's case against indicted attorney Marc S. Dreier has wrapped up nearly four months of work, he and his attorneys at Paul, Weiss, Rifkind, Wharton & Garrison anticipate asking for about $1.4 million in fees. In an interview Thursday, appointed receiver Mark F. Pomerantz said he expects to seek $150,000, while his counsel will ask for approximately $1.25 million for the Paul Weiss team, representing a substantial discount from the firm's regular rates.

E-Book Patent Holder Goes After iPhone

Legal Times

Swiss electronics developer Monec Holding AG has filed suit in Virginia federal court against Apple, alleging that the company's popular iPhone infringes a U.S. patent it holds for an "electronic book." According to Monec's complaint, the way in which Apple makes books available to read on the iPhone screen infringes Monec's e-book patent. Monec claims that Apple "willfully and wantonly" infringed its patent, entitling it to triple damages.

5th Circuit Accepts 'Learned Intermediary' Defense in Zyprexa Case

The American Lawyer

The 5th Circuit has reinforced the efficacy of the "learned intermediary" defense with a ruling in a case involving the Eli Lilly anti-psychotic Zyprexa. The appellate court upheld the Texas federal district court ruling that granted summary judgment to Eli Lilly on the grounds that the plaintiff's doctor informed him of the risks of taking Zyprexa. The opinion follows a similar recent 5th Circuit ruling in which the court upheld summary judgment for Paxil maker GlaxoSmithKline on learned intermediary grounds.

In-House Attorneys, Law Firms Spar Over Flex-Time, Part-Time Policies

The National Law Journal

Law firm leaders and corporate GCs at a recent meeting took each other to task over what each side can do to better support flex-time and part-time policies that advance women at firms, attorneys who participated said. Although attorneys from both sides support the policies, they have misperceptions and differing positions about what's stymieing more use of the programs, said lawyers who attended the meeting initiated by the Project for Attorney Retention.

Justice Thomas on Rights, Law School and Tough Cases

Legal Times

Supreme Court Justice Clarence Thomas was energized and enthusiastic as the keynote speaker this week for an event celebrating winners of a nationwide high school essay contest hosted by the Bill of Rights Institute. "This is the good part of the job," he told the friendly crowd. When asked how his judicial philosophy has changed since his law school days at Yale, Thomas laughed that "I didn't have one," because he was too busy trying to get through his classes. He also discussed handling tough cases.

Coughlin Stoia Wins Class Certification for HealthSouth Shareholders

The American Lawyer

A ruling this week from Alabama federal district court Judge Karen Bowdre should keep Coughlin Stoia plenty busy. Bowdre certified a class of HealthSouth shareholders in a securities fraud case against HealthSouth's banker, UBS, and former CEO Richard Scrushy. UBS, represented by Sullivan & Cromwell, relied on the U.S. Supreme Court's Stoneridge opinion in arguing that there wasn't evidence of a direct fraud on the market by UBS. Bowdre, in language harshly critical of UBS, rejected that defense.

Action! Reed Smith Negotiates Ad Industry Deal With Actors

The American Lawyer

Two of the nation's largest actors' unions announced on Wednesday that they had reached a three-year deal with advertising industry groups on a new contract. Heading up the negotiation team for the Association of National Advertisers was Reed Smith partner Douglas Wood. "It was seven days a week, 10 or 12 hours a day," Wood says. It was the second such deal he had closed for ANA. "Everything is decided in the last 48 to 72 hours, but they really can't be done differently any other way."

Judge's Knuckles Rapped for Giving Litigant a 'Sophie's Choice'

New Jersey Law Journal

A New Jersey appeals court found unduly harsh a trial judge's denial of a plaintiff's request to delay trial of her gender discrimination suit for six months so she could care for her mortally ill, 89-year-old father in Florida. The judge complained that the case was "backlogged" and dismissed it with prejudice. The appeals court restored the case, saying that the plaintiff "was faced with a 'Sophie's Choice,'" between caring for her father and abandoning her suit or abandoning him to pursue the litigation.

Motion Picture Academy Sues Over Oscar Party Props

Fulton County Daily Report

When the CEO of Monte Carlo Productions in Atlanta got a letter from the Academy of Motion Picture Arts and Sciences demanding that he stop throwing parties that included giant replicas of the Academy's famous Oscar statuette as props, he thought it was "the biggest joke that ever was." But the Academy wasn't amused, and has now filed suit in federal court for copyright and trademark violations. The suit was prompted by the appearance of the Oscar replicas on the TV show "The Real Housewives of Atlanta."

Mayer Brown Cuts 135 Lawyers, Staff Across U.S.

The American Lawyer

Chicago-based Mayer Brown has announced it is cutting 45 attorneys and 90 administrative staffers across its U.S. offices. In a statement released by the firm Thursday, chairman James Holzhauer blamed the reductions on the prolonged downturn in the global economy. Last November the firm let go of 33 attorneys from its global network; in March, the firm confirmed that up to 55 legal and staff jobs were under threat in London.

Jury Finds Professor Wrongly Fired for Comparing 9/11 Victims to Nazi Leader

The Associated Press

A jury ruled Thursday that the University of Colorado wrongly fired the professor who compared some Sept. 11 victims to a Nazi, giving him only $1 in damages but a chance to get his job back. The school fired Ward Churchill on charges of research misconduct, but the jury agreed with Churchill that he was dismissed in retaliation for an essay in which he called the World Trade Center victims "little Eichmanns," a reference to Adolf Eichmann, the Nazi leader who orchestrated the Holocaust.

Storing Your Firm's Data 'In the Cloud'

Law Technology News

Cloud computing is maturing into a plausible alternative for online data storage, according to consultant Brett Burney. When your data is "in the cloud," you are not tied down to a solitary computer -- you can access your files from any computer that is connected to the Internet.

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Recession Offers Law Firms a Chance to Refocus on Client Needs

Legal Week

There has been plenty of cost cutting at law firms of late -- and in-house lawyers are asking where the savings will go. "The bottom line is that some of these savings have got to find their way into clients' pockets, not just partners' pockets," says Bupa GC Paul Newton. He believes the legal services market is for overdue for a shake-up, and hopes that law firms will use the recession as an opportunity to refocus themselves towards clients' needs.

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Litigator Stars in Career Double Feature as Movie Producer

Texas Lawyer

Dallas litigator Sally C. Helppie is not only of counsel at Tipton Jones, but also president and co-founder of Sabbatical Pictures, a movie production company behind the yet-to-be-released "The Beacon," which took top honors at a horror film festival. Helppie became a movie producer when one of her entertainment law clients brought up the idea. Being a lawyer comes in handy when Helppie negotiates distribution rights. Ironically, one type of film Helppie isn't likely to produce? Anything involving law.

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