Posts on ‘February 26th, 2009’

A three-judge panel of the 9th U.S. Circuit Court of Appeals held on Wednesday that the state of Montana went too far in requiring an East Helena church to publicly disclose its financial involvement in a 2004 initiative campaign to ban same-sex marriage in California. The panel found that the church’s in-kind contributions were so small that forcing its leaders to file campaign disclosure forms amounted to an unfair abridgement of the assembly’s First Amendment rights.

Federal authorities brought charges in two major securities fraud investigations Wednesday, saying one scheme fell apart because of publicity about the Bernard Madoff scandal. In that case, New Jersey fund manager James Nicholson was accused of defrauding investors of as much as $900 million since 2004. In the second case, Paul Greenwood and Stephen Walsh were charged with conspiracy, securities fraud and wire fraud.

A Florida couple plan to file a federal lawsuit against National Gypsum over allegedly flawed toxic drywall, and another possible class action is in the works against Chicago-based USG. Homeowners with the drywall have reported a foul odor similar to rotten eggs, a problem also found with faulty drywall manufactured in China. The problem is fallout from Florida’s boom-to-bust housing market, though an attorney notes that homeowners in other states will also be part of the legal action.

A New York judicial conduct commission has recommended a Family Court judge be censured for repeatedly requiring her secretary to perform personal chores, including baby-sitting her children and typing documents and correspondence for her husband. Judge Dandrea L. Ruhlmann’s misconduct took place in 2004, her first year on the bench. The judge told the panel that, at the time, she did not realize the assignments were improper. Her ignorance of the rule did not affect the commission’s decision.

A Long Island, N.Y., surgeon’s bid to seek $1.5 million for the kidney he donated to his estranged wife “not only runs afoul” of public policy, but may expose him to criminal prosecution, a Nassau County, N.Y., court referee ruled Wednesday. The divorce case between vascular surgeon Richard J. Batista Jr. and his wife gained worldwide notoriety when the doctor and his attorney held a press conference announcing their intentions to seek compensation for the organ.

Less than two weeks after laying off 19 associates and counsel in its U.S. offices, Dechert laid off 10 staff attorneys on Wednesday for economic reasons. Staff attorneys are generally nonpartner-track attorneys who earn less than their partner-track counterparts. Whether they are easy targets for layoffs isn’t a black-and-white issue, says one recruiter. Dechert also made cuts in 2008, mostly of staff, with 72 positions cut in the firm’s U.S. offices and another 15 in London.

According to a recent client satisfaction report, in-house counsel felt
neglected by their law firms in favor of more lucrative bank deals. And
now that such work has dried up, many companies may be less than
receptive to firms’ renewed advances. One consultant says that after
firms have “gone off with the bigger and bustier blonde, you’ve got to
expect the redhead to be a bit iffy when you come back with your tail
between your legs.” In-house counsel also complain of too much arrogance
and too little trust.