Supreme Court Justices Consider Courts’ Role in Arbitration | National Law Journal

The U.S. Supreme Court’s pro-arbitration trend appears intact after oral arguments Monday in a key case asking whether it should be courts or arbitrators themselves who rule on the enforceability of an arbitration agreement.

Consumer groups say the outcome of the case, Rent-A-Center, West v. Jackson, could determine whether courts have any role in overseeing arbitration clauses in labor agreements, which they see as biased toward employers. Business groups, for their part, don’t want courts second-guessing what they see as validly agreed-upon arbitration agreements.

“If companies win, this really will be a watershed case,” said Deepak Gupta, an attorney for Public Citizen, which asserts that arbitrators rule against consumers 94 percent of the time.

During the past two decades, the high court has generally ruled to strengthen the enforceability of arbitration agreements. On Monday, few justices appeared eager to change that trend, though several seemed to believe that courts should play some role in checking especially egregious agreements. Dallas lawyer Robert Friedman of Littler Mendelson, representing the business side of the case, urged the Court to continue its practice of “sending very, very complicated matters to the arbitrator” rather than the courts

via Law.com – Supreme Court Justices Consider Courts’ Role in Arbitration.

ICC announces revision of arbitration costs

The International Chamber of Commerce has announced a revision of its current arbitration costs and fees. The change will become effective on 1 May 2010 and apply to all arbitrations commenced on and after that date.

The revision does not change ICC’s traditional method of calculating administrative costs and arbitrators’ fees on the basis of the amount in dispute. However, the rates applicable to each ‘slice’ of the amount in dispute have been adjusted. An increase averaging 0.14 of a percentage point has been applied to most slices. At the top end of the scale, a new slice has been added to distinguish between cases valued at US$ 100–500 million and those over US$ 500 million. In the latter cases, a flat rate of US$ 113,215 will be charged for administrative expenses and arbitrators’ fees will be calculated using rates that are the same, or slightly less, than before. The initial payment required when filing a request for arbitration has been raised from US$ 2,500—the level at which it has been held since 1998—to US$ 3,000.

ICC Arbitration costs were last revised in January 2008. Since then, the global economy has suffered a period of exceptional and unforeseen instability. The volatility of the financial markets has created a situation of great unpredictability, not least for the ICC Court. The Court’s revenue is in US dollars, but most of its expenditure is in euros. The increase in the levels of its administrative expenses will allow the Court better to withstand the impact of these developments and to maintain the quality of service for which it is recognized worldwide.

via Arbitration.

International Litigation: How to File a Lawsuit Against a Foreign Investment Advisor : International Business Law Advisor

I was recently contacted by a client who lost several million US dollars due to negligent investment advice. Because the firm is based overseas, the client did not know what to do. Unfortunately, this scenario has become all too common in the wake of the global financial crisis.

Whether your claim is against an institution based in the U.S., the EU or elsewhere, you have a number of options. I will very generally touch on them below.

Many wealthy investors rely on foreign investment advisers who are typically employed by international financial institutions.

Unfortunately, as a result of the global financial crisis many investments advisers understated the risks involved with – for example in structured products linked to stock market indices.

Almost all legal systems have a concept of negligence, which would make a financial adviser potentially liable if the quality of their advice fell below that to be reasonably expected, causing loss to a client.

Your adviser is also very likely to be subject to local financial regulation and supervision that might include compensation schemes. But where these options are not available locally, or have proved unsatisfactory, your only option might be to sue.

[continued] International Litigation: How to File a Lawsuit Against a Foreign Investment Advisor : International Business Law Advisor.

China Litigation And Arbitration. Maybe. – China Law Blog: a blog about Chinese law and the legal issues of doing business in China.

People far too often focus on the law or the choice of law, when so often it is not the law so much that determines the best place to proceed with a lawsuit, but the intangibles. The reality is that most breaches of contract in the United States also constitute a breach of contract in China, in Russia, in the Sudan, or wherever else. Buying a product and then not paying for it is, as far as I know, a breach of contract everywhere in the world. Similarly, getting drunk and running someone over with your car gives rise to a cause of action probably everywhere in the world as well. I am not saying the choice of law is not important, but I am saying it is wrong to assume it is the most important.

Take negligence. Getting run over by a drunk driver is probably pretty much the same cause of action in both China and the United States and the laws for that cause of action will probably be pretty much the same. But let's get real here and ask where would you rather have that lawsuit if you are the plaintiff? In the United States where you could put your friends and relatives on the witness stand to testify in front of a jury on how you have never been the same since the accident and where multi-million dollar verdicts are commonplace, or in China where your only evidence may end up being a written doctor’s report and where you will be lucking to get $30,000?

Or take a breach of contract where you purchase a defective part to go into a piece of equipment you make and sell for a million dollars. In the United States you would have a good chance of collecting the profits you lost by not being able to sell your million dollar equipment, whereas in China your chances of getting those lost profits would be minuscule.

via China Litigation And Arbitration. Maybe. – China Law Blog: a blog about Chinese law and the legal issues of doing business in China..

Trial Court Abused Discretion in Ordering Forensic Examination Absent Pending Request for Production or Motion to Compel and in Appointing Special Master : Electronic Discovery Law

In re Art Harris, 2010 WL 1612205 (Tex. App. Apr. 22, 2010)

In this case, the appellate court granted petitioner’s writ of mandamus and ordered the withdrawal of three underlying discovery orders upon finding that the trial court abused its discretion when it ordered the production of petitioner’s hard drives for forensic examination and when it appointed a special master to conduct that examination.

While the facts are somewhat complicated, it suffices to say that in the course of discovery, petitioner Art Harris was ordered to turn over relevant “electronic media” for forensic investigation despite the fact that there was no pending request for production of such media, no pending request for production of any kind with which he had not complied, and no pending motion to compel.  The order compelling production was, instead, the unlikely result of a motion to compel such production from a different defendant.  Despite initially indicating that Harris could produce only non-privileged responsive data, the court’s order compelling production of electronic storage media nonetheless included Harris.  The court also ordered the appointment of a special master to conduct the forensic examinations.

In addition to compelling Harris’s production of relevant electronic storage media, the court also failed to address Harris’s motion for a protective order and claims of privilege.

Following entry of its order, the court denied Harris’s motions for clarification and reconsideration. Accordingly Harris filed a petition for writ of mandamus.

The appellate court relied heavily on the Texas Supreme Court’s analysis in the recent case, In re Weekley Homes, L.P., 295 S.W.3d 309 (Tex. 2009), which confirmed that pursuant to Tex. R. Civ. P. 196.4, electronic information is subject to discovery only upon a specific request for its production.  Additionally, the Supreme Court recognized that “‘[p]roviding access to the information by ordering examination of a party’s electronic storage device is particularly intrusive and should be generally discouraged, just as permitting open access to a party’s file cabinets for general perusal would be.’”

via Trial Court Abused Discretion in Ordering Forensic Examination Absent Pending Request for Production or Motion to Compel and in Appointing Special Master : Electronic Discovery Law.

Windows XP Still Less Secure than Win 7 and Vista | PC World

Microsoft has released a new Security Incident Report–the eighth volume of Microsoft’s quarterly overview of computer and network security trends. The report illustrates once again that security can be greatly improved by upgrading to the latest software, and through user education.

The Key Findings Summary points out some of the more relevant data discovered over the past three months. Here are some of the highlights:

• The 64-bit versions of Windows 7 and Windows Vista SP2 had lower infection rates than any other operating system configuration in 2H09, although the 32-bit versions both had infection rates that were less than half of Windows XP with its most up-to-date service pack, SP3.

• Domain-joined computers were much more likely to encounter worms than non-domain computers, primarily because of the way worms propagate. Worms typically spread most effectively via unsecured file shares and removable storage volumes, both of which are often plentiful in enterprise environments and less common in homes.

• In Windows XP, Microsoft vulnerabilities account for 55.3 percent of all attacks in the studied sample. (comparing targets of browser-based exploits)

• In Windows Vista and Windows 7, the proportion of Microsoft vulnerabilities is significantly smaller, accounting for just 24.6 percent of attacks in the studied sample. (comparing targets of browser-based exploits)

via Windows XP Still Less Secure than Win 7 and Vista – PCWorld Business Center.

Protecting Intellectual Property | USDOJ: Justice Blog

Today the Department of Justice is recognizing  the 10th annual World Intellectual Property Day. Intellectual property refers to creations of the mind –music, literature, film, artistic works, and inventions. Intellectual property is one of America’s greatest assets. Its protection is central to our economic prosperity and security as well the public’s health and safety. Aggressive intellectual property law enforcement is crucial to our continued success and safety, and is a top priority of the Department of Justice.

Earlier this year, Attorney General Eric Holder announced the creation of the Task Force on Intellectual Property. The Task Force strengthens efforts to combat intellectual property crimes through close coordination with state and local law enforcement partners as well as our international counterparts.

Today, that Task Force got even stronger. Acting Deputy Attorney General Gary  G. Grindler, who serves as the Chair of the Task Force, announced the appointment of 15 new Assistant U.S. Attorney positions and 20 FBI Special Agents to be dedicated to combating domestic and international IP crimes.

via Protecting Intellectual Property « USDOJ: Justice Blog.

Aggressive IP enforcement is a must | Deputy AG Gary G. Grindles | National Law Journal

Businesses that create and rely upon intellectual property, from large entertainment conglomerates to small biotech firms, make up among the fastest-growing sectors of the U.S. economy. These industries also represent a significant portion of U.S. exports, with intellectual property now comprising a significant — and growing — share of the value of world trade. The proliferation of worldwide Internet access and advances in traditional distribution methods, such as transportation and shipping, now allow American businesses of all sizes to market their intellectual property throughout the world. Digital content, whether embodied in software, books, games, movies or music, can be transmitted from one corner of the world to another almost instantly.

But these unprecedented opportunities for American businesses and entrepreneurs are put at risk by criminals and criminal organizations that seek unlawfully to profit by stealing from the hard work of American artists, authors and inventors. For every new technological advancement by American business, there is, unfortunately, a criminal who would seek to misuse it for his own illicit purposes. Criminals are responding to American innovation with their own creative methods of committing intellectual property crimes — from widespread online piracy to well-funded corporate espionage to increased trade in counterfeit pharmaceuticals and other goods.

When we fail to enforce intellectual property rights aggressively, we fail to protect some of our nation's most important and valuable resources. The theft of even a single trade secret can completely destroy a burgeoning small business. When criminals sell counterfeit drugs and medical devices to consumers, our nation's public health is compromised. And when illicit products such as counterfeit airplane parts or pirated electronic components make their way into the marketplace, they place our public safety at risk.

In light of these threats, it is imperative that the government act, and act aggressively. And that is exactly what we at the Department of Justice are doing. In cooperation with our partners across the federal government, the Department of Justice has redoubled its commitment to protecting American innovation and technology through aggressive criminal and civil enforcement of our nation's intellectual property laws.

via Aggressive IP enforcement is a must.

World Intellectual Property Day | The White House

In recognition of World Intellectual Property Day, the US government is engaging in activities all over the world to highlight the importance of intellectual property and our commitment to protecting it.

Our law enforcement agencies, the Department of Justice and the Department of Homeland Security, announced today the formation of a national network of law enforcement personnel.

The Department of Justice announced that the FBI is increasing its manpower that focuses of IP significantly, by creating regional IP squads in major cities around the nation and adding an additional 20 new agents to those squads.

In addition, the DOJ announced that it will be adding 15 new prosecutors throughout the country to add to its current force of 200 prosecutors specially trained to handle IP enforcement.

In collaboration, the Department of Homeland Security announced that its multi-agency IPR Center is creating partnerships with 70 federal, state and local law enforcement in 22 cities to collaborate on IP enforcement actions.

And ICE announced the efforts of a major sweep – Operation Spring cleaning – that resulted so far in 45 arrests, the seizure of 701,384 counterfeit items valued at $44 million.

Many other agencies that also work on IP enforcement are joining this united effort.  Secretary Clinton and Secretary Locke and Ambassador Ron Kirk are issuing statements highlighting the importance of intellectual property. There are also a numbers of events taking place today where senior government officials are speaking on intellectual property, including Ambassador Miriam Sapiro of USTR at the National Press Club, Under Secretary of State Robert Hormats at the US Chamber of Commerce. I will be speaking at an event with the Chairman of the House Judiciary Committee John Conyers, the head of USTR, Ambassador Ron Kirk, the head of our US Patent and Trademark Office David Kappos and other senior Commerce officials, including Under Secretary Francisco Sanchez.  And embassies throughout the world are reaffirming those same sentiments in statements issued by their ambassadors and in a number of educational programs they are holding.

The President has made clear that strong enforcement of America’s intellectual property is a critical part of our plan to promote exports and create jobs.  I look forward to continuing our dialogue and utilizing the expertise out there to harness and protect what has always been one of America’s greatest strengths – the diversity of great ideas.

via World Intellectual Property Day | The White House.

Dukes v Wal-Mart Stores | Ninth Circuit Court of Appeals Opinion| Judge Michael D. Hawkins

http://www.ca9.uscourts.gov/datastore/opinions/2010/04/26/04-16688.pdf