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Legal Ethics
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November 13, 2024
What's Next For Court Reform In This New Political Climate?
Advocates are not holding out hope for bills that would firm up a code of ethics for the U.S. Supreme Court, impose term limits on justices or give judiciary employees antidiscrimination job protections, saying Republican control of the federal government will likely stall any progress that's been made with court reform efforts.
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November 13, 2024
Fla. Judge Tosses Law Firm Investor's Derivative Suit
A Florida judge dismissed a derivative lawsuit Wednesday against a law firm brought by an investor claiming two partners orchestrated a litigation funding fraud, saying the investor needs to flesh out allegations about a contractual requirement to hold a vote with firm members before bringing suit.
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November 13, 2024
Jackson Walker Must Supply Docs In Judge-Atty Affair Probe
The Texas federal court overseeing a U.S. Trustee's Office probe of a former Jackson Walker LLP partner's undisclosed relationship with a then-bankruptcy judge has given the firm until Friday to turn over its communications with public relations firms and pages from its attorney sourcebook.
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November 13, 2024
Trump Taps DOJ Critic Matt Gaetz For Attorney General
President-elect Donald Trump on Wednesday nominated Rep. Matt Gaetz to be the next U.S. attorney general, seeking to elevate a close political ally to lead a Justice Department that the Florida lawmaker has sharply criticized and that last year declined to charge him in a sex-trafficking investigation.
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November 12, 2024
DC Circ. Mulls Legality Of Gag Orders On X Corp. Subpoenas
A D.C. Circuit panel grappled Tuesday with the federal government's authority to obtain sweeping nondisclosure orders preventing social media companies from notifying users when their accounts are targeted by subpoenas, with X Corp. arguing that such gag orders are illegal.
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November 12, 2024
Catfished Ex-NBA Player Says Atty Stole Cash, Blew Film Deal
A former NBA player is suing his longtime attorney for legal malpractice in Colorado state court, claiming the attorney stole his money and failed to protect his intellectual property rights while negotiating the terms of a documentary deal about his victimization in an elaborate online catfishing scheme.
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November 12, 2024
Businessman Blames Dentons For Failed $54M Currency Swap
A Venezuelan businessman involved in a $54 million bolivar-to-dollars currency swap told a Miami jury on Tuesday that a former Dentons US LLP attorney told him several times that he needed to deposit more bolivars to meet a threshold minimum in order to receive U.S. dollars, but those promises never materialized.
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November 12, 2024
Valve Can't Speak Directly With Gamers In Antitrust Row
A Washington federal judge has rejected a bid by Valve Corp. to directly contact 624 game buyers named in its suit seeking to block them from further arbitrating antitrust claims, saying the video game seller hasn't pointed to "exceptional circumstances" warranting the clearance to reach out to the defendants outside the presence of legal counsel.
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November 12, 2024
Navajo Co. Says Paralegal Blocking Return Of Privileged Docs
A Navajo Nation natural resources company is suing a former paralegal in Colorado state court to enforce a settlement requiring the return of confidential documents that she allegedly emailed to herself, accusing the paralegal of "erecting unreasonable roadblocks" to their agreement.
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November 12, 2024
Thompson Coburn Hit With Suit Over Healthcare Data Breach
Thompson Coburn LLP was hit with a proposed class action Tuesday in Missouri federal court alleging the firm did not do enough to safeguard data provided to a healthcare provider client, resulting in a data breach that compromised individuals' personal information.
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November 12, 2024
Progressive Accused Of Giving Crash Victims' Info To Law Firm
Progressive Casualty Insurance Company and Kanner & Pintaluga PA are facing a proposed class action in Houston, where former clients accuse the two of conspiracy and Racketeer Influenced and Corrupt Organizations Act violations because the insurer allegedly shared crash victims' private information with the law firm in violation of state and federal statutes.
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November 12, 2024
Pennsylvania Atty Text Solicitation Ban Stands, For Now
A Pennsylvania federal judge on Tuesday declined to temporarily halt the state's prohibition on attorneys soliciting potential clients using text messages while litigation filed by a legal marketer over the legality of the ban plays out, reasoning that there was no threat of irreparable harm to the company.
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November 12, 2024
Teen Says Judge Not Immune After 'Scared Straight' Trial
A Michigan state judge can't claim judicial immunity from a lawsuit alleging he abused his power when he streamed a mock "Scared Straight" trial against a teen after she nodded off during a field trip to the courthouse because the judge had no jurisdiction over her with a fake proceeding, the teen and her mother argued Monday.
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November 12, 2024
Suit Demands Boston Boutique Return Escrowed $7M
A Chinese company says a Boston law firm has refused to account for or return $7 million in escrowed funds that were supposed to be used to secure a line of credit, allegedly ignoring the company's requests for months, according to a complaint filed in Massachusetts state court.
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November 12, 2024
Broker Calls 78-Month Sentence For Tax Scheme Unfair
An insurance agent convicted of conspiracy and tax crimes in a multimillion-dollar tax avoidance scheme told a North Carolina federal court ahead of his sentencing, scheduled for Wednesday, that the 78-month prison sentence recommended by prosecutors is harsher than punishments for similar offenders.
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November 12, 2024
Texas Bar Eyes Ban On Revenue Sharing With Non-Atty Cos.
A proposed ethics opinion from the State Bar of Texas says lawyers shouldn't pay revenue percentages to nonlawyer-owned businesses that provide legal support services, though attorneys may own equity interests in such companies under certain conditions.
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November 12, 2024
Trump's NY Case Paused As DA Weighs Impact Of Election
A New York state judge agreed to a joint motion to freeze the proceedings in Donald Trump's hush money case following his electoral victory last week, allowing the Manhattan district attorney time to brief the court on "appropriate steps going forward."
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November 12, 2024
Justices Won't Review Mark Meadows' Ga. Case Removal Bid
The U.S. Supreme Court on Tuesday declined former White House chief of staff Mark Meadows' petition to review an Eleventh Circuit ruling that he couldn't move his Georgia election interference case to federal court because the federal officer removal statute doesn't apply to former federal officers.
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November 08, 2024
Combs Suggests $50M Bail As He Loses Bid For Gag Order
Sean "Diddy" Combs on Friday again asked a New York federal court to release him ahead of his trial, suggesting an updated, "far more robust" $50 million bail package the same day the court rejected the hip-hop mogul's push for a gag order forbidding his sexual assault accusers from speaking out.
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November 08, 2024
Judiciary Advisers Back Development Of AI Evidence Rules
The federal judiciary's advisory panel for evidentiary issues agreed Friday to develop rules aimed at strengthening scrutiny of testimony and materials derived from artificial intelligence systems, saying AI-generated information should meet the same reliability standards that apply to expert witnesses.
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November 08, 2024
Fla. Law Firm Gunster To Pay $8.5M Over 2022 Data Breach
Florida corporate law firm Gunster has agreed to shell out $8.5 million to resolve a proposed class action alleging it failed to properly safeguard the personal information of nearly 10,000 clients, employees, and other individuals from cybercriminals, according to a motion to preliminarily approve the deal filed in Florida federal court.
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November 08, 2024
Monsanto Judge Pushes Sanction 'Distraction' To After Trial
A Washington state judge is pausing an order for eight of Monsanto's attorneys to personally pay a total of $20,000 for late disclosure of expert reports in a toxic tort lawsuit, saying he believes the issue will distract from the upcoming trial and the court can revisit the defense lawyers' reconsideration request after the jury returns a verdict.
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November 08, 2024
Sullivan & Cromwell Fees Questioned In Kidde-Fenwal Ch. 11
Sullivan & Cromwell LLP and the attorney general of California clashed in Delaware bankruptcy court over the firm's interim fee requests for its representation of debtor chemical company Kidde-Fenwal Inc., with the state alleging overbilling and Sullivan & Cromwell claiming California is seeking "payback" for the results of a recent mediation.
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November 08, 2024
Orrick Gets Final OK On $8M Deal To End Data Breach Case
A California federal judge granted final approval Friday to Orrick Herrington & Sutcliffe LLP's $8 million deal to end putative class claims over a data breach that purportedly exposed 638,000 individuals' information, praising the parties for their "efficiency" in handling the case and "good faith" approach to reaching a resolution.
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November 08, 2024
How Trump Could Turn The Government Against Jack Smith
Special counsel Jack Smith and his team of prosecutors could face politically motivated retribution by President-elect Donald Trump and his allies in the form of a congressional investigation, a U.S. Department of Justice probe and even criminal prosecution, according to experts.
Expert Analysis
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Strategic Succession Planning At Law Firms Is Crucial
Senior partners' reluctance to retire, the rise of the nonequity partner tier and generational differences in expectations are all contributing to an increasing number of departures from BigLaw, making it imperative for firms to encourage retirement among senior ranks and provide clearer leadership pathways to junior attorneys, says Laura Leopard at Leopard Solutions.
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Maximizing Law Firm Profitability In Uncertain Times
As threats of an economic downturn loom, firms can boost profits by embracing the power of bottom-line management and creating an ecosystem where strategic financial oversight and robust timekeeping practices meet evolved client relations, says Shireen Hilal at Maior Strategic Consulting.
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Alleged $636M Deal Error Highlights Ethics Considerations
Adelman v. Proskauer, a malpractice suit that allegedly arose from a cut-and-paste error resulting in potential damages of $636 million, presents an intriguing juxtaposition of facts and legal issues — and practical ethical considerations for transactions attorneys, says Richard Leisner at Trenam Law.
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5th Circ. Ruling Reminds Attys That CBP Can Search Devices
The Fifth Circuit’s recent Malik v. Department of Homeland Security decision adds to the chorus of federal courts holding that border agents don’t need a warrant to search travelers’ electronic devices, so attorneys should consider certain special precautions to secure privileged information when reentering the U.S., says Jennifer Freel at Jackson Walker.
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Alleged $636M Deal Error Shows Value Of Old-School Methods
Though Proskauer Rose has now settled claims involving a copy-paste error in deal documents that could have resulted in $636 million in damages, the debacle reminds attorneys that classic revision methods using paper copies can help avoid drafting errors and actually save time in the long run, says Richard Leisner at Trenam.
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Twitter Sanction Highlights Privacy Law's Complexity
The D.C. Circuit's recent decision to uphold a sanction against X Corp., formerly known as Twitter, for failing to produce account records in response to a subpoena highlights the importance of understanding the Stored Communications Act, particularly when deciding to produce or not produce data, says Cary Aronovitz at Holland & Knight.
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Avoiding The Ethical Pitfalls Of Crowdfunded Legal Fees
The crowdfunding of legal fees has become increasingly common, providing a new way for people to afford legal services, but attorneys who accept crowdsourced funds must remember several key ethical obligations to mitigate their risks, say Hilary Gerzhoy and Julienne Pasichow at HWG.
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What Large Language Models Mean For Document Review
Courts often subject parties using technology assisted review to greater scrutiny than parties conducting linear, manual document review, so parties using large language models for document review should expect even more attention, along with a corresponding need for quality control and validation, say attorneys at Sidley.
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Series
Participating In Living History Makes Me A Better Lawyer
My role as a baron in a living history group, and my work as volunteer corporate counsel for a book series fan association, has provided me several opportunities to practice in unexpected areas of law — opening doors to experiences that have nurtured invaluable personal and professional skills, says Matthew Parker at the Nebraska Department of Health and Human Services.
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Opinion
Private Equity Owners Can Remedy Law Firms' Agency Issues
Nonlawyer, private-equity ownership of law firms can benefit shareholders and others vulnerable to governance issues such as disparate interests, and can in turn help resolve agency problems, says Michael Di Gennaro at The Law Practice Exchange.
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How To Protect Atty-Client Privilege While Using Generative AI
When using generative artificial intelligence tools, attorneys should consider several safeguards to avoid breaches or complications in attorney-client privilege, say Antonious Sadek and Christopher Campbell at DLA Piper.
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How New Lawyers Can Leverage Feedback For Growth
Embracing constructive criticism as a tool for success can help new lawyers accelerate their professional growth and law firms build a culture of continuous improvement, says Katie Aldrich at Fringe Professional Development.
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Twitter Legal Fees Suit Offers Crash Course In Billing Ethics
X Corp.'s suit alleging that Wachtell grossly inflated its fees in the final days of Elon Musk’s Twitter acquisition provides a case study in how firms should protect their reputations by hewing to ethical billing practices and the high standards for professional conduct that govern attorney-client relationships, says Lourdes Fuentes at Karta Legal.
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ABA's Money-Laundering Resolution Is A Balancing Act
While the American Bar Association’s recently passed resolution recognizes a lawyer's duty to discontinue representation that could facilitate money laundering and other fraudulent activity, it preserves, at least for now, the delicate balance of judicial, state-based regulation of the legal profession and the sanctity of the attorney-client relationship, say attorneys at Ballard Spahr.
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Law Firm Professional Development Steps To Thrive In AI Era
As generative artificial intelligence tools rapidly evolve, professional development leaders are instrumental in preparing law firms for the paradigm shifts ahead, and should consider three strategies to help empower legal talent with the skills required to succeed in an increasingly complex technological landscape, say Steve Gluckman and Anusia Gillespie at SkillBurst Interactive.