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Heller Estate, Creditors Pursue Banks Blamed for Firm's Bankruptcy

The Recorder

Like a pack of hounds, the Heller Ehrman estate and its creditors teamed up Friday to go for the jugular of the banks blamed for the firm's bankruptcy. The creditors, with the estate's support, are asking for standing to sue Bank of America and Citibank to get back $50 million Heller paid them in the months leading up to its bankruptcy. And while lawyers for both sides begged, cajoled and argued for more than an hour, the bankruptcy judge in the case said he was still "on the fence" and didn't rule on the motion Friday.

Firm Leaders: No Deal Before Wolf Block Dissolution

The Legal Intelligencer

Rumors that many Wolf Block attorneys may have carved out a deal to join Cozen O'Connor before the firm's dissolution vote have caused ire among some Wolf Block attorneys and caused many in the community to describe the deal as the merger the two firms couldn't get done in previous attempts. Leadership at both firms say there was never a deal in place prior to the vote, and sources have said there was in fact a commitment on behalf of Cozen O'Connor not to recruit from Wolf Block prior to any dissolution vote.

Data Mining Case Heads to the Supreme Court

Legal Times

Two major publishers of health care data filed a petition Friday at the Supreme Court, raising cutting-edge questions about whether increasingly widespread data mining that is used for commercial purposes is protected by the First Amendment. The petition is an appeal of a controversial ruling last November by the 1st U.S. Circuit Court of Appeals. One of the amicus groups planning to file a brief in the coming weeks says the law could threaten all forms of data collection and publishing.

Sources: Chadbourne Bankruptcy Partner Jumps to Weil Gotshal

The American Lawyer

Chadbourne & Parke bankruptcy partner Joseph Smolinsky has agreed to move to the high-powered bankruptcy unit at Weil, Gothshal & Manges, say sources familiar with the move. Smolinsky is said to have a book of business in the millions, and sources say his move is a significant blow to Chadbourne's bankruptcy group. Smolinsky has represented such high-profile debtors as Orion Pictures and has advised Citicorp, a lender/creditor in one of the 10 largest Chapter 11 bankruptcies of 2008.

Federal Court Bars Arbitration Over Student Loan Terms

New York Law Journal

A student loan company accused of hiding fees in loan agreements cannot force the lead plaintiff in a putative class action into arbitration, a New York federal judge has ruled, finding the terms of the loan unconscionable. Joshua G. Fensterstock, a 2003 Hofstra University School of Law graduate and now an associate at Isaacs & Associates in Manhattan, sued the lender and a loan processing company in 2008 over terms in his student loan that he claimed would cost him thousands of unforeseen dollars.

Weil Gotshal Cuts Back Summer Program, Defers Incoming Associate Class

The American Lawyer

In a memorandum sent to associates on Thursday, Weil, Gotshal & Manges announced it is reducing its summer program from 12 weeks to 10 weeks and deferring its incoming associate class to January 2010. Associates deferred until January will receive a $15,000 stipend in September from the firm. Weill is also extending to associates the option of taking a one-year deferral at a "firm-approved public service or pro bono position" -- for an additional $75,000.

Skadden and Gibson Dunn Cut Staff; 11 More Skadden Attorneys Depart for New Boutique

Legal Times

Skadden Arps' Washington, D.C., office and Gibson, Dunn & Crutcher's U.S. offices confirmed layoffs last week. Due to economic reasons, Skadden's D.C. office cut 25 staff positions and Gibson Dunn laid off 36 staff members across its nine U.S. offices. Also, 11 Skadden attorneys have left for new boutique Buckley Sandler, which was co-founded this month by the former head of Skadden's consumer financial services enforcement and litigation group.

Former Covington Staff Attorney Hires New Lawyer for Discrimination Suit Against Firm

Legal Times

Former Covington & Burling staff attorney Yolanda Young has hired a new lawyer to represent her in the discrimination suit against her old firm. Latif Doman of Doman Davis, a small litigation and employment discrimination firm with offices in New York and Washington, will take the reins on the case, which has caused a stir in legal circles. Young, who is black, submitted a complaint in February accusing Covington of fostering a racially hostile work environment.

Attorney to Challenge Office Raid After Arrest in Mortgage Scam Tied to Dominatrix Club

New York Law Journal

Now that a lawyer has been arrested in connection with a bizarre real estate fraud that allegedly recruited straw buyers at a dominatrix club, he has standing to challenge the warrant that authorized a raid on his law office last month, his attorney said Thursday. On Wednesday, solo practitioner George O. Guldi was among seven people -- three of them lawyers -- charged in connection with an alleged mortgage scam that fraudulently obtained more than $50 million in mortgages on dozens of homes.

Booted Cohen Milstein Partner Wins a Round Against His Old Firm

Legal Times

Michael Hausfeld seems to have scored another victory in his ongoing battle with his old firm, Cohen Milstein Sellers & Toll. Since the law firm sent its antitrust star packing with a note taped to his office chair last November, Hausfeld has taken up arms in the way only a jilted law partner can: by going after his old firm's fees and cases. Now, he's grabbed the role of lead counsel in an antitrust case against the United States' four largest rail lines.

Law Student's Trust Fund Started by Bernard Madoff and Wife

New York Law Journal

Court records show that Bernard L. Madoff and his wife donated the seed money to a trust fund for a Brooklyn Law School student who is now suing Madoff's brother for allegedly depleting the fund by paying other investors in a massive Wall Street Ponzi scheme. According to attorney Steven Schlesinger, his client did not know the initial source of the trust until after news of the Ponzi scheme surfaced, but the suit is going forward.

Solicitor General Kagan Recuses in Supreme Court Brief

Legal Times

In one of her first official acts as solicitor general, Elena Kagan recused in a brief filed with the Supreme Court on Wednesday in Horne v. Flores, an Arizona education case with civil rights implications. Normally, the SG is the counsel of record on such briefs, but instead, Deputy Solicitor General Neal Katyal was listed as the main lawyer in the capacity of acting solicitor general. The likely reason for Kagan stepping aside may be found on the face of another brief in the case.

Fox Rothschild to Open Conn. Office With Former Dreier Attorneys

The Legal Intelligencer

Fox Rothschild is continuing its traditional growth model of picking up small groups of attorneys in new markets as it prepares to open a Stamford, Conn., office April 1 with attorneys from the Dreier firm, which declared bankruptcy in mid-December. The move is considered an acquisition of Pastore Osterberg, a firm founded by attorneys who split off from the Dreier firm as it was folding. Fox Rothschild will bring on two partners, Joe Pastore and Eric Osterberg, along with seven other attorneys.

Grisham Says Wrongful Conviction Still Haunts Him

Fulton County Daily Report

Until author John Grisham dove into the story behind the capital murder conviction, and eventual exoneration, of a minor league baseball player -- the subject of his only nonfiction work, "The Innocent Man" -- he had "never spent five minutes thinking about wrongful convictions." But after researching and writing the story of the Oklahoma murder investigation that sent Ron Williamson and a friend to death row for more than a decade, Grisham began raising money for the Innocence Project network.

Failure to Report Malpractice Leaves Lawyer Out in Cold

New Jersey Law Journal

A New Jersey lawyer has just learned the hard way that a client's seeming nonchalance over dismissal of her case due to the lawyer's error doesn't make for a license to conceal it from the malpractice insurer. A New Jersey federal judge ruled on summary judgment last week that Louis Barbone's carrier had no duty to defend or indemnify him in a malpractice suit by a former client whose sexual harassment case he botched, even though the client took the bad news well.

Juvenile Records to Be Expunged in Response to Judicial Kickback Case

The Legal Intelligencer

The Pennsylvania Supreme Court has granted a county judge the authority to expunge the records of a "substantial number" of juveniles who appeared before former Luzerne County President Judge Mark A. Ciavarella Jr. between 2003 and 2008. The government alleges that Ciavarella and fellow former Luzerne County President Judge Michael T. Conahan took more than $2.6 million in kickbacks from one of the owners and the builder of a juvenile detention center. Both former judges have agreed to serve 87 months in federal prison.

California Rules to Amend Inaccessible ESI

The Recorder

Proposed electronic discovery rules currently before the California Senate's Committee on Rules significantly alter the treatment of "inaccessible" electronically stored information. Disaster recovery backup tapes, once deemed inaccessible, may enter the realm of accessible data.

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Background Checks: How Much Is Too Much?

New York Law Journal

The current state of the economy has turned the employment arena into a "buyers' market." This means employers can set higher standards and be more selective. Background checks can greatly help with the selection of a fitting candidate. Attorney Diane Krebs explores the guidelines and limits in three main areas in which employers may seek to conduct inquiries beyond simply work experience or required degrees or certifications: criminal history, creditworthiness and general character.

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E-Mail Theft Case Sparks First-of-a-Kind Ruling

The National Law Journal

In a case involving an employer's theft of e-mails from the personal account of an employee suing for sexual harassment, the 4th U.S. Circuit Court of Appeals held that a plaintiff must prove actual damages to be eligible for statutory damages under the Stored Communications Act.

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Switching Practice Areas Shouldn't Be Taken Lightly

The National Law Journal

The decline in financial markets has caused some junior -- and even some senior -- lawyers to worry whether they might be better off in a different practice area. Attorney Steven C. Bennett warns that changing practice areas should not be a rushed decision, because it's a change in your self-image. He discusses essential elements of making a successful shift in practice areas, some of the challenges you might face, and practical suggestions once you've decided a new practice area is right for you.

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