Lawyer: Hedge Funds Must Heed Foreign Corrupt Practices Act | FINalternatives

What is the Foreign Corrupt Practices act and why should you be concerned about it?  Matthew Reinhard of the Washington, D.C.-based law firm Miller & Chevalier, says FCPA penalties have increased “exponentially” over the past decade and could pose a significant economic risk to investment managers. Reinhard would know—he focuses his practice on white collar crime, internal investigations and complex civil litigation and has conducted internal investigations into allegations of FCPA violations. He spoke to FINalternatives’ recently about the implications of the FCPA for private equity and hedge fund managers.

via Lawyer: Hedge Funds Must Heed Foreign Corrupt Practices Act | FINalternatives.

Employee’s Use of a Work Computer to Communicate with Attorney “Akin to Consulting her Lawyer in her Employer’s Conference Room, in a Loud Voice, with the Door Open…” : Electronic Discovery Law

Holmes v. Petrovich Dev. Co., LLC, 2011 WL 117230 (Cal. Ct. App. Jan. 13, 2011)

Where plaintiff used her company’s computer to communicate with her attorney despite knowledge of policies prohibiting such use and establishing that employees had no right of privacy as to such materials, the court found that the emails “did not constitute ‘confidential communication between client and lawyer’ within the meaning of Evidence Code section 952” and thus were not privileged and affirmed the holdings of the trial court.

Plaintiff worked as an executive assistant.  Upon her hire, plaintiff read and signed the company’s policies related to use of technology resources.  Those policies prohibited personal use, informed employees that they had no right of privacy with respect to any personal information created or maintained on company computers, and warned that all such information was subject to inspection and monitoring.

The time came that plaintiff felt that she was being discriminated against at work and used her company’s computer to communicate with an attorney.  Soon thereafter, the plaintiff quit her job and sued her former employer.  In the course of litigation, the emails between her and her attorney were brought up in deposition and then attached to defendants’ motion for summary judgment.  Despite plaintiff’s protests that the emails were privileged, they were not excluded from evidence at trial.  Rather, the trial court ruled that the emails “were not protected … because they were not private.”  In the end, plaintiff did not prevail on any of her claims.  On appeal, plaintiff claimed the court erred in failing to exclude the emails.

via Employee’s Use of a Work Computer to Communicate with Attorney “Akin to Consulting her Lawyer in her Employer’s Conference Room, in a Loud Voice, with the Door Open…” : Electronic Discovery Law.

Shearman plans a radical strategy rethink to boost litigation revenue | Features | The Lawyer http://bit.ly/brTL1d #ediscovery

Shearman plans a radical strategy rethink to boost litigation revenue | Features | The Lawyer http://bit.ly/brTL1d #ediscovery

And the Largest Law Firm in the World is . . . * – Law Blog – WSJ

A simple question: Which law firm is the largest in the world?

* Of course, the answer depends on the metrics used. But in regard to gross revenue, in 2010, there’s a new name on top: Baker & McKenzie.

The news comes courtesy of the American Lawyer’s “Global 100″ issue, which ranks the largest firms by gross revenue. (The Global 100, which typically runs in the magazine’s October issue, isn’t to be confused with the “AmLaw 100,” which runs in the May issue and ranks the largest firms in the U.S., by revenue.)

Baker & McKenzie tops the pack, with gross revenues in 2009 of $2.104 billion. The firm edged out Skadden, which took home $2.100 billion in 2009. (Skadden, it might be noted, has twice the revenue per lawyer of Baker.)

The rest of the top 10: 3) Clifford Chance ($1.875 billion); 4) Linklaters ($1.853 billion); 5) Latham & Watkins ($1.821 billion); 6) Freshfields ($1.787 billion); 7) Allen & Overy ($1.645 billion); 8) Jones Day ($1.520 billion); 9) Kirkland & Ellis ($1.428 billion); 10) Sidley Austin ($1.357 billion).

via And the Largest Law Firm in the World is . . . * – Law Blog – WSJ.

Legal Privilege Still Elusive for EU’s In-House Lawyers | Corporate Counsel

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In-house lawyers in Europe will have to keep fighting for legal privilege, according to a recent opinion (pdf) by a legal adviser at the European Union‘s highest court. Advocate-General Juliane Kokott of the European Union’s Court of Justice said on April 29 that attorney-client privilege should not apply to in-house corporate lawyers because they are not independent.

“A salaried in-house lawyer, notwithstanding any membership of a Bar of Law Society, does not enjoy the same degree of independence from his employer as a lawyer working in an external law firm does in relation to his client,” Kokott wrote in her opinion. “There is a structural risk that an enrolled in-house lawyer will encounter a conflict of interests between his professional obligations and the aims and wishes of his company.”

In-house corporate lawyers in Europe have been trying to overturn a 1982 ruling that says attorney-client privilege in the EU only applies to communications with outside counsel. Only a few EU member states apply privilege to in-house lawyers: the United Kingdom, Ireland and the Netherlands.

via Legal Privilege Still Elusive for EU’s In-House Lawyers.

The iPad set to solve ‘mega-litigation’ problem – The New Lawyer

Image representing Apple as depicted in CrunchBase
Image via CrunchBase

THE MacBook sat despondent while the latest zeit geist technology, the iPad, became one litigator’s primary resource in a recent four-day court case.

A litigation lawyer and blogger, who aptly calls himself Maclitigator, has completed what may be the first jury trial using the iPad as the primary means of getting information to the jury.

The lawyer said: “Apple has created a product which facilitates presentation of evidence without getting in the way and does so in a completely unassuming fashion.”

The iPad, which sits low and befits a place next to a legal pad or other notes at the podium, allows the trial material to appear to the jury as not “overly flashy”. Nor is it “a complete headache and a distraction to the attorney”, he said.

The lawyer used Keynote to upload all documents to be admitted. Blankslides provided a tabbed divider set up, separating photos of the scene, x-rays, medical records, tables and summaries into their respective categories.

As lawyers can use such technology in court, the question may be asked whether this will be the end of the “mega-litigation” described in cases such as the C7 judgement in Australia.

While the number of pages left to be read by judges and litigators, may not change, the format in which they are presented could be overhauled and condensed.

Justice Ronald Sackville described the C7 case, for example, as requiring a “Herculean effort” to go through the pages.

“The pleadings occupied 1,028 pages. The trial occupied 120 sitting days. The transcript of the trial is 9,530 pages in length. The statements of the witnesses’ evidence in chief totalled 3,654 pages, of which 2,041 pages were those of the expert witnesses. 12,849 documents totalling 115,586 pages were tendered by way of evidence. The applicants’ written closing submissions in chief totalled 1,556 pages. The respondents between them generated 2,594 pages of written closing submissions. The applicants’ submissions in reply totalled 812 pages,” it was said of the case.

The iPad solved this problem of multiple pages to a small extent. Photos were grouped as a single exhibit in the case, and all content to be admitted was contained in a single Keynote presentation.

In terms of the hardware setup, Maclitigator said it required a good high lumen projector, a long, high quality VGA cable, a VGA video adapter cable for the iPad, and a silicon case for the iPad just because it gets a bit slipper in nervous litigators’ “sweaty palms’ in trial.

Maclitigator saw victory in the case, as well as in using his iPad.

via The iPad set to solve ‘mega-litigation’ problem – The New Lawyer.

The 2010 Am Law 100 – The American Lawyer

It could have been worse. That,s the best that can be said for the performance last year of The Am Law 100, the top-grossing law firms in the nation. Three of the four key categories we,ve measured for 25 years–gross revenue, head count, and revenue per lawyer–fell, while profits per equity partner (PPP) barely increased by 0.3 percent, or $3,463, to $1.26 million.

But on average, even the bad results weren’t nearly as dire as many firms had feared just a year ago.

THE CHARTS

Gross Revenue

For the first Time since 1994, Baker & McKenzie surpassed Skadden, Arps, Slate, Meagher & Flom for the number one position on our gross revenue chart.

Revenue Per Lawyer

The downward trend continued for Am Law 100 firms in 2009 as more than half posted drops in revenue per lawyer (RPL), our best measure of a firm,s financial health.

Profits Per Partner (Top Ten)

Sixteen Am law 100 firms had profits per partner (PPP) of $2 million or more in 2009, the same number as in 2008.

Compensation – All Partners (Top Ten)

The average pay for a firm’s entire partnership, both equity and nonequity; in 2009, 42 Am Law 100 firms posted declines in CAP.

Value Per Lawyer (Top Ten)

Value Per Lawyer ranks firms by how efficiently they generate profits. For the fifth year in a row, Wachtell, Lipton, Rosen & Katz tops our list.

via The Am Law 100 2010.

‘They Can Sue You’: Navigating the Foreign e-Discovery Mine Field | Corporate Counsel

Handling electronic discovery in a foreign country means navigating a mine field of competing legal interests, in-house lawyer Alexander Shapiro told a group of in-house and outside counsel last week.

Shapiro, managing director and senior managing counsel at The Bank of New York Mellon Corporation, spoke at the 2010 spring meeting of the American Bar Association Section of International Law in New York. Prior to joining BNY Mellon, he spent 10 years as a government lawyer, including as an assistant U.S. attorney in New York.

“Private communications in the workplace are a fundamental freedom in Europe,” Shapiro warned. “You have a duty of privacy to your customers in the foreign jurisdiction, and to your employees. They can sue you if you violate it. And some of these foreign laws have criminal provisions.”

One unidentified lawyer in the audience pointed out that in Europe both a company’s in-house lawyer and outside counsel can be charged for violating those laws, as well as the corporation itself.

In addition, Shapiro said some countries have a blocking statute that bars a bank from sending documents out of country for a pretrial proceeding.

So what if you have a U.S. judge demanding discovery of bank documents in Germany? “Your job is to navigate the competing pressures,” Shapiro said. He advised talking to all parties and judges involved, and trying to obtain privacy waivers from employees in a form consistent with local law.

via ‘They Can Sue You’: Navigating the Foreign e-Discovery Mine Field.

U.K. Court Allows Extradition in KBR Bribery Case (Update1) – BusinessWeek

Jeffrey Tesler, a British lawyer wanted by Houston prosecutors over allegations he helped bribe Nigerian officials to win contracts in a $6 billion natural gas project, can be extradited to the U.S., a London judge ruled today.

District Judge Caroline Tubbs ruled that the case is appropriate for extradition. Tesler’s lawyers had said he shouldn’t be extradited because the case has “strong links” to the U.K., and British prosecutors are carrying out their own investigation.

Tesler and another U.K. citizen were indicted on Feb. 17 last year by a federal grand jury in Houston, accused of violating the Foreign Corrupt Practices Act. If convicted of all charges, each faces a maximum prison sentence of 55 years.

via U.K. Court Allows Extradition in KBR Bribery Case (Update1) – BusinessWeek.

Lehman Report Shows Ex-GC’s Fight to the Bitter End | Law.com

Thomas Russo knows a thing or two about shepherding struggling financial companies through chaotic times. The former top lawyer for Lehman Brothers Holdings Inc. took on the unenviable task of becoming general counsel for embattled American International Group Inc. in February.

Now Russo’s old life as head lawyer of the collapsed Lehman Brothers is in the news again with the release of a 2,200-page bankruptcy examiners’ report. The New York Times called it the “Wall Street equivalent of a coroner’s report” because it lays out in minute detail how Lehman Brothers used accounting gimmicks to hide the bad investments that led to its demise.

Russo and Lehman’s legal department weren't blamed for the accounting chicanery, according to the report. But it shows that they were involved in negotiations with other financial institutions as the bank fought for its survival.

Russo relayed information between bank officials who were struggling in vain to obtain loans that would prop up the struggling 158-year-old company. Meanwhile, the report said another in-house lawyer drafted agreements with clearing banks that attempted to limit the financial impact of their demands for collateral. Russo declined to comment for this story.

And even as Lehman’s financial situation continued to unravel, Russo wanted to delay planning and preparing for bankruptcy, the report said. That’s because he believed as late as mid-September 2008 that the Federal Reserve would rescue the company.

That never happened. Lehman Brothers filed the biggest bankruptcy in U.S. history that same month. And the report laid much of the blame on devastating losses in mortgage-backed securities, along with demands for collateral against much-needed loans by Citigroup Inc. and JPMorgan Chase & Co.

The report by examiner Anton R. Valukas also cited the “materially misleading” accounting maneuvers that Lehman Brothers used to hide its precarious financial situation. The report said that one such move involved including collateral paid to clearing banks such as JPMorgan as part of its liquidity pool, so that the bank appeared to have more money on hand than it actually did.

via Law.com – Lehman Report Shows Ex-GC’s Fight to the Bitter End.