Posts on ‘July 8th, 2009’

In the high-stakes court battle over the constitutionality of a federal law banning all Internet gambling transactions that would be illegal in the gambler’s state, a trio of federal appeals judges appeared unlikely Tuesday to strike the law down. Instead, all three judges on the 3rd Circuit panel seemed inclined to uphold the Unlawful Internet Gambling Enforcement Act of 2006 and to reject arguments from lawyers for a gambling trade association who complained the wording of the law is so vague it cannot be understood.

The Texas Supreme Court has held, in a 5-2 opinion, that the executor of a deceased client’s estate may sue a decedent’s attorneys for alleged legal malpractice committed outside the realm of estate planning. A dissenting justice expressed concern that the decision will result in more litigation against lawyers, saying that “an endless variety of claims could be brought on the theory that the attorney’s advice resulted in a smaller estate or trust.”

California AG Jerry Brown on Monday sued a lawyer for allegedly bilking desperate homeowners with troubled mortgages out of thousands of dollars. Mitchell Roth charged at least 2,000 homeowners substantial fees in exchange for false promises that he would help them escape foreclosure and improve their credit, Brown wrote in a complaint. Also named in the suit: Paul Noe Jr., president of Nevada-based United First, a corporation that allegedly solicited homeowners facing foreclosure and referred them to Roth’s firm.

A blogger sued for her online criticism of a software company cannot invoke New Jersey’s press shield law, a judge has found in a case of first impression in the state. The ruling allows the company to seek the sources for comments the blogger posted on a Web site that proclaims itself the “Wall Street Journal of porn.” In a second novel ruling, the judge held the company can pursue damages even without a showing of pecuniary loss, based on postings accusing it of incompetence and criminal conduct.

An army of lawyers appeared during the first major probate hearing involving Michael Jackson’s estate on Monday, as everyone with a potential stake in Jackson’s assets is now being represented by an attorney. Jackson’s longtime attorney, John Branca of Ziffren Brittenham, and record executive John McClain were designated as temporary administrators of the estate and were represented themselves by Howard Weitzman of Kinsella Weitzman. Weitzman says he is working with lawyers at Greenberg Traurig and Hoffman Sabban.

Former Thelen employees have filed a proposed class action against former partners and the firms they now work for, alleging the partners paid themselves $25 million as the firm dissolved, and neglected to pay $18 million in wages owed to employees. This is the second class action brought by Thelen employees. The first was filed against the defunct firm a few weeks after it dissolved.

Cadwalader has confirmed it is asking 34 lawyers from the capital markets and real estate finance groups to accept a “one year, unrestricted sabbatical.” The move, first reported on the blog Above the Law, comes after a challenging 18 months for the firm, largely due to its flailing capital markets practice. Cadwalader lawyers will have the option of taking one-third of their salary plus medical benefits spread over the next year during which the firm will try to match them with clients and not-for-profit organizations.

The Supreme Court still belongs to Justice Anthony Kennedy. That was the consensus Monday among a panel of the country’s top Supreme Court advocates, hosted at Georgetown University Law Center by Legal Times and The National Law Journal. Chief Justice John Roberts Jr. and his fellow conservatives are “going just as far to the right, and just as fast, as Justice Kennedy will let them,” said panel member Pamela Harris, executive director of Georgetown’s Supreme Court Institute.

Corporate attorney Amy E. D’Agostino is often asked, “What is the difference between forming an LLC in New York and Delaware?” Procedures in the two states are similar, but New York has a publication requirement, which adds significant costs. D’Agostino provides practical advice regarding the formation of limited liability companies in New York and Delaware with a focus on how new publication requirements might influence the choice of a jurisdiction of formation.

Given the explosive growth of cloud computing, it should be no surprise that it presents numerous legal issues, says Rivkin Radler partner Shari Claire Lewis. Business duties to protect confidential data do not end with data transfers to third-party vendors.