Posts on ‘March 16th, 2009’

The Federal Circuit on Friday upheld sanctions and $4.5 million worth of attorney fees against a medical company and its lawyers for pursuing frivolous claims. A California federal judge had sanctioned ICU Medical and its lawyers at Paul Hastings in 2007 for their behavior in a patent case. The company is on the hook for the attorney fees, according to that judge’s order — but the judge wrote at the time that both the company and its counsel had violated Rule 11, which forbids pursuing frivolous claims.

Justice Ruth Bader Ginsburg told law students Friday there could be an opening on the Supreme Court soon but didn’t hint at who might be leaving. Ginsburg, speaking at New England Law in Boston, said the nine justices only take pictures together when a new member is added. “We haven’t had any of those for some time, but surely we will soon,” she said. Court watchers suggest Ginsburg, 88-year-old John Paul Stevens and 69-year-old David Souter are the most likely to retire.

Hogan & Hartson is being sued for malpractice by a client who alleges the firm used confidential attorney-client information to boost a competitor. Prestige Brands claims that lawyers at the firm breached their retainer agreement and committed legal malpractice by helping another company get a competing dental product on the market. Prestige Brands’ general counsel says he learned that Hogan was working for a competitor from the Food and Drug Administration’s Web site.

President Barack Obama’s nomination of Kansas Gov. Kathleen Sebelius as secretary of health and human services follows federal funding for several health care initiatives. Obama is also pushing for wider health care reform. Thomas Barker, former acting GC at the Department of Health and Human Services during the recent Bush administration, discusses Obama’s health care agenda, the political fights ahead for HHS and whether litigation is likely to follow any of Obama’s new initiatives.

Some law firms thrive in bad times, others suffer. But whether your firm is stable or teetering, this is a great time to pay attention to your existing case or matter management system and better exploit its capabilities to lower costs and increase your firm’s profits in tangible ways.

Laid-off workers in any industry are bound to be distressed, bitter and potentially litigious — especially when facing the current job market. But law firms have a few added reasons to proceed with caution when they part ways with attorneys and legal staffers. Law firms generally have far less experience with mass layoffs than their corporate counterparts, and attorneys are also more familiar with their legal rights. In addition, layoffs may tarnish a firm’s reputation and hurt recruitment.

Bernard Madoff’s lawyers will have a tough time convincing the 2nd Circuit to order their client released on bail until he is sentenced June 16, because the standards for post-conviction release are high and hard to meet. The lawyers will try to convince the circuit Thursday to quickly grant their motion to stay the remand order and their motion to reinstate the bail conditions that applied to Madoff before his conviction. If they’re unsuccessful, they can still appeal, albeit over a longer time period.

Dewey & LeBoeuf has confirmed that 66 partners — about one in five of
the firm’s 350 partners — have seen their compensation reduced by as
much as 80 percent over the past 15 months. The cuts mean that some
lower-tier partners are now taking home as little as $10,000 per month,
or an annual total of $120,000 — $40,000 less than the starting salary
for a 2008 incoming first-year. The reductions are meant to weed out
less productive partners, firm Chairman Steven Davis says.