Posts from ‘April, 2009’

The American Recovery and Reinvestment Act of 2009 is an unprecedented
economic stimulus plan. ARRA contains a number of provisions designed to
assist unemployed workers and their families, including federal tax cuts
and credits, expanded unemployment benefits and federally subsidized
COBRA premiums. Attorneys Marjorie Glover and Edward Smith review the
new COBRA subsidy requirements that significantly impact employers,
insurers and health plan participants.

The Employee Free Choice Act, which was introduced on March 10 in the House and Senate, dramatically modifies the National Labor Relations Act on how employees select unions and how unions and employers negotiate collective bargaining agreements. Attorney Michael P. Maslanka predicts that some version of EFCA will be the law no later than next year at this time. His advice is to avoid ostrich-like attitudes of self-delusion and start planning now. He presents some discussion points for the smart executive.

No one at Oracle is talking about what it will do with the lawyers it
acquires when it devours Sun Microsystems like a $7.38 billion snack.
But if Oracle’s past repasts are any indication, many of them will be
looking for jobs elsewhere. Almost all of PeopleSoft’s 50-lawyer legal
department was laid off after Oracle won a drawn-out takeover battle in
2004. And of the 20 or so lawyers that worked at BEA Systems when it was
taken over by Oracle last spring, only one lawyer has a job at Oracle
now, former BEA lawyers said.

To the chagrin of corporate defense lawyers, the 2004 Crime Victims Rights Act is increasingly turning up in the government’s environmental prosecutions, with victims fighting to be heard, especially at sentencing. Defense lawyers argue that the statute is being used for unintended purposes. But victims’ rights advocates counter that people hurt in catastrophes such as explosions or chemical spills deserve a seat at the table — and a say in the punishment.

China’s enactment of a new Labor Contract Law two years ago was widely hailed as a great leap forward for workers. Few could have foreseen how quickly the law would be tested. The global economic crisis has led to lower demand for Chinese exports, and that in turn has resulted in the elimination of perhaps 20 million jobs. Companies looking to scale back in China will find that all options — including layoffs — are still on the table, but that close coordination with the government is a must.

Boards of directors and management currently face the question of whether, and how, to provide guidance in an unprecedented economic environment. Recent, rapidly changing market conditions, stock market declines and historically low business confidence levels are causing many public companies to rethink whether they can responsibly provide earnings guidance. Attorneys Lisa A. Fontenot and Brandon W. Loew summarize the considerations and recent approaches taken by some of the largest U.S. public companies.

A company’s decision to enforce its patents is greatly impacted by a cost-benefit analysis of pursuing such an action. Unfortunately, many companies find that they are unable to collect past damages for patent infringement because they failed to perform the seemingly simple task of marking their patented products with patent numbers. Attorneys Nathan Cummings and Orion Armon offer practical recommendations for an effective marking program.

The Oklahoma Supreme Court last week reinstated a nationwide class action against Ford Motor Co. and auto parts maker Williams Controls that contends that certain models of Ford Super Duty pickup trucks and Expedition SUVs contain faulty accelerator pedals. The case, which includes an estimated 300,000 to 500,000 class members, alleges breach of warranty, negligence and product liability. An attorney in the case said plaintiffs will be seeking $60 million to $100 million, depending on the final class size.

The 11th Circuit has declared that treating doctors don’t have the final say in how much nursing care the state must provide children with disabilities under Medicaid. Friday’s ruling reversed a federal district judge’s decision that had said the state must provide the amount of nursing care that a Georgia girl’s doctor said she needs. The panel said that both the state and the girl’s physician have roles in determining what is medically necessary, and that the doctor’s word is “not dispositive.”

Andrew Samuels, the Brooklyn Law School student who sued Bernard Madoff’s brother, Peter, claiming his $500,000 trust fund was drained in a massive Ponzi scheme, is among 223 individuals being targeted by the court-appointed trustee responsible for recovering $735 million from investors who unknowingly profited from the scheme. Samuels’ lawyer wrote in reply that his client “has no liability to the Trustee” and called the demands “self-serving” and “sanctionable.”