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For Law Firm Associates, It's Been a Decade of Thrills and Chills

The National Law Journal

It was a wild ride for associates at big law firms during the first decade of the century. In the end, most everyone was a little queasy from the experience. Between 2000 and 2009, law firms doled out jaw-dropping bonuses, lavished benefits and hiked first-year salaries to a point that drew the envy of federal judges. The decade also featured mass job cuts, pay reductions and a decided shift in power for recent law graduates, many of whom, at decade's end, were clamoring for even part-time work at living-wage levels.

Privilege Takes Center Stage as WaMu Bankruptcy Heats Up

The American Lawyer

Lawyers for Washington Mutual filed papers Friday in the bank's Chapter 11 case claiming Sullivan & Cromwell, on behalf of WaMu's new owners at JPMorgan Chase, has been sending out letters asking WaMu's old law firms to turn over client files on WaMu that include privileged material. The letters claim JPMorgan should have access to the documents because JPMorgan and WaMu are essentially the same entity now and therefore have "joint privilege." WaMu's lawyers at Quinn, Emanuel, Urquhart, Oliver & Hedges disagree.

2nd Circuit Rejects Aliens' Claims of Unlawful Prolonged Detention

New York Law Journal

The 2nd Circuit upheld Friday the dismissal of a central claim in a high-profile putative class action filed on behalf of Arab and Muslim noncitizens who were subjected to prolonged, abusive detention by immigration officials in the wake of 9/11. The plaintiffs had contended the federal government used their immigration violations as a "cover" or "excuse" to investigate possible ties to terrorism. The panel ruled that the government's motivation for holding the detainees was irrelevant because their seizures were lawful.

Former Law Firm Partners Suspended for Not Paying Taxes

New York Law Journal

Two lawyers, one a former partner at Kaye Scholer, have been suspended by a New York court for failing to pay taxes for an extended period. John J.P. Howley, who had been head of pro bono at Kaye Scholer, and Ronald A. Goldman, who had been a partner at Manning Raab Dealy & Sturm, were also sentenced to pay a $10,000 fine. The panel credited Howley's death penalty work but noted that he had disregarded his tax obligations while "enjoying a lavish life style," which included two large homes and three luxury cars.

Comverse to Pay $225 Million in Backdating Settlement

The American Lawyer

In a settlement that was a long time in the crafting, Comverse, the large information technology company, has agreed to pay $225 million to settle a securities class action over backdated stock options. The agreement, which was filed in Brooklyn federal district court on Friday, must be approved by Judge Nicholas Garaufis. The deal marks the second-biggest backdating settlement to date, after UnitedHealth Group paid more than $920 million in 2008.

The Bear Stearns Deal: What JPMorgan's GC Knew -- and When

Corporate Counsel

A report by the Securities and Exchange Commission's inspector general offers new insights into what the agency's enforcement director told Stephen Cutler, general counsel for JPMorgan Chase, on the weekend the bank acquired Bear Stearns. The report looked into allegations that Linda Thomsen, SEC enforcement chief at the time of the takeover, improperly gave Cutler information about ongoing SEC investigations involving Bear Stearns. Thomsen had been Cutler's deputy while he was chief of the SEC's enforcement division.

Judge Blasts U.S. Attorneys' Pursuit of High-Profile Defense Lawyer

Fulton County Daily Report

A Georgia federal judge has slammed federal prosecutors for making "sweetheart plea deals" with drug dealers to further their "relentless pursuit" of a criminal defense attorney whose trial ended last month when a jury acquitted him of drug conspiracy, attempted bribery and money laundering charges. The judge issued his harsh criticism of the U.S. Attorneys' Offices in an unusual order explaining why he more than doubled the recommended prison sentence of a federal witness who testified against lawyer J. Mark Shelnutt.

Judge Sets Trial Date for Allen Stanford as Attorneys Tussle Over Fees

The Associated Press

Texas financier R. Allen Stanford's trial on charges he bilked investors out of $7 billion as part of a massive Ponzi scheme will begin in January 2011, a federal judge has ruled. U.S. District Judge David Hittner also held a hearing on whether attorney fees will be paid under an insurance policy Stanford's company bought. Lloyd's of London estimates that legal fees could be as much as $100 million but Stanford's attorney said the total is actually closer to $20 million to $30 million for all four defendants in the case.

O'Melveny's Srinivasan Tapped for Skilling Supreme Court Argument

The American Lawyer

O'Melveny & Myers has tapped partner Sri Srinivasan to argue before the Supreme Court in former Enron CEO Jeff Skilling's appeal of his criminal conviction. Srinivasan has argued 15 cases before the high court, including one last month. But Daniel Petrocelli, who heads O'Melveny's trial practice and represented Skilling at trial and before the 5th Circuit, won't fade into the background. He'll be at Srinivasan's side at the Court and will continue to be Skilling's principal spokesperson. And he has plenty to say.

N.Y. District Attorneys Urged to Review Convictions in Wake of Widespread Evidence Errors

New York Law Journal

District attorneys in 44 of New York's 62 counties should review scores of closed criminal cases, a state watchdog advised Thursday, because a forensic scientist working for the state police routinely failed to perform mandatory tests on crime scene trace evidence and then fraudulently wrote up results. The report found that not only was the scientist performing defective tests between 1993 and 2008, but his supervisors either failed or were not scientifically qualified to review his work to discover the errors.

Court Officials Resort to Online Petition to Save Their Funding

Fulton County Daily Report

Alarmed at looming budget cuts, Fulton County, Ga., court officials are appealing to the court of public opinion to sway local commissioners. The Superior Court Web site has posted a petition to "Keep the Courts Open," in response to planned cuts of more than 10 percent to the county's courts and the offices of the DA, sheriff and public defender. Most of the initial signers of the online petition identify themselves as being from out of state, including some who said they were from France, Russia and Romania.

Fla. Supreme Court Bans Shackles for Juveniles in Courtroom

Daily Business Review

The Florida Supreme Court has banned the widespread practice of shackling juvenile defendants in courtrooms, calling it "repugnant, degrading, humiliating and contrary to the state's primary purposes of the juvenile justice system." The 6-1 court amended the rules of judicial procedure to state a juvenile defendant cannot be placed in handcuffs, chains, irons or straitjackets unless the court finds it necessary in specific instances. The court suggested shackling may violate the children's due process rights.

Food Fight Hits 11th Circuit as Charities Resist Restrictions on Public Giveaways

Fulton County Daily Report

As tough economic times linger, the 11th Circuit on Thursday considered how far cities may go in regulating how charity groups distribute food to the poor. At issue was an Orlando, Fla., ordinance that requires a permit to distribute food to 25 people or more in the city's downtown parks. The organizations had successfully challenged the ordinance on the basis that it violated their freedom of speech and religion. On Thursday, however, they encountered some skepticism from two of the three judges on the 11th Circuit panel.

IQPC Puts a Wrap on E-Discovery 2009

Special to Law.com

IQPC's eDiscovery event of 2009 focused on rapid early case assessment and review strategies, as well as realigning relationships between outside counsel, in-house counsel, legal, and IT. For firms adopting e-discovery strategies for 2010, Ari Kaplan offers an overview of this year's sessions.

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Will Law Firm Changes Affect Hiring and Retention of Associates?

The Recorder

Over the course of the past two years, aggregate demand by companies for legal services has declined. As a result, many law firms have cut costs through layoffs and lowered salaries. Several firms have also implemented training programs that reduce salaries for participants, or announced that they will be abandoning the traditional lockstep salary structure. Consultant James Smith discusses the possible effects of these types of developments on attracting and retaining entry-level and lateral associates.

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