Posts on ‘December 19th, 2008’

Amid talk of a merger or possible dissolution, Thacher Proffitt & Wood’s litigation head has quietly decamped to DLA Piper. Richard Hans, who joined Thacher two years ago from DLA Piper and became head of litigation in January, declined to say whether others would follow him. Hans’ return to DLA Piper comes as chatter swirls about the possible collapse of Thacher Proffitt, a heavy hitter in securitization that saw profits fall and partners leave with the collapse of the real estate and credit markets.

Smith Gambrell & Russell has opened a seven-lawyer New York office at a time when many firms in Manhattan offices are finding the legal market there a treacherous place. Chairman Stephen M. Forte said the fallout in the New York market from the Wall Street financial crisis presents opportunities to a midsize firm from Atlanta. Forte acknowledged that expanding into New York may seem rash in the current economic climate, but he added, “We feel it is a very good investment for the future.”

Would-be heroes were warned by the California Supreme Court on Thursday that they could be liable for damages if they inadvertently injure a person while attempting a rescue. In a 4-3 ruling, the high court held that a state statute immunizing rescuers from liability applies only if the individual is providing medical care in an emergency situation. The case arose after a woman pulled her friend from a wrecked car. Left a paraplegic, the passenger sued her would-be rescuer for negligence.

A Florida appellate judge will be disciplined for what he wrote in a court opinion — an implication that a colleague was out to “snooker” the public. The Florida Supreme Court ordered Judge Michael Allen to appear for a scolding for criticizing another judge in a concurring opinion. The justices wrote that appellate judges “are free to write almost anything” but not “inappropriately personally attack another appellate judge by accusing him of a crime.”

A federal judge gave preliminary approval Thursday to a $900 million-plus settlement resolving a stock option backdating lawsuit pitting UnitedHealth Group shareholders against the insurer. UnitedHealth has agreed to pay $895 million to settle the class action case. Former Chairman and Chief Executive William McGuire also agreed to pay $30 million, and retired general counsel David J. Lubben is to pay $500,000 under the settlement. The backdating scandal forced McGuire to step down from both roles in 2006.

Gunderson Dettmer Stough Villeneuve Franklin & Hachigian laid off at least half of the newest class of associates in its biggest office Monday, the latest in a string of firms to announce associate layoffs. The firm had about 90 associates in its four offices before the layoffs. Partners said the decision was in response to a slowdown in work that would stretch into 2009, according to associates. Most of the first-years had summered at the firm in 2007 and only started in October.

With an emergency hearing in the Dreier firm’s bankruptcy set for this afternoon, attorneys on Thursday asked the court’s permission to use the firm’s assets to pay past due wages to staff, keep the firm’s professional liability policy afloat and foot other administrative expenses. According to a motion filed Thursday, the firm owes some $97,000 in salaries and compensation to 17 “necessary employees.”

Sullivan & Cromwell has told its associates to expect year-end bonuses worth about half of last year’s. But, in memos distributed late Thursday afternoon, Sullivan’s chairman and vice chairman said the firm intends to issue all associates another check in April, based on the firm’s overall financial performance. Sullivan associates have also been told that their salaries will go up in 2009.

Lawsuits are flying in the aftermath of Bernard Madoff’s alleged $50 billion investment fraud, but legal experts don’t expect to see investors recovering large amounts of their lost funds. “There are going to be claims, but it’s not going to be billion-dollar litigation,” said John C. Coffee, a Columbia Law School professor. “This is medium-sized litigation that will probably go to relatively small firms. I don’t think there are enough assets left. It’s a lean and starved corpse.”