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Pro bono work costs Seattle schools plenty
Legal Business | 2007/07/11 08:43
For 200 years, Americans have built our democracy with the growth of universal public school education. Public schools are gathering places for democracy. They take in all children, from different walks of life, different families and different backgrounds. One crucial lesson that children learn in public school is that you can get along with different kids. Some may be richer, some poorer, some white, some black, some fast, some slow, some smart and some not so smart, all Americans.

In Washington, we have embraced that notion. But last month, the U.S. Supreme Court, in a 5-4 decision, set in motion the means to unravel the social compact of integrated public schools. In a case brought by one small group of Seattle parents - Parents Involved in Community Schools - the Supreme Court decided that the best way to remedy racial discrimination in public schools is to not address racial inequities. It endorses a game of pretend - if we pretend that racial discrimination isn't a historical and current fact of life in America, then it isn't!

Seattle has open choice for high schools. While the idea of choice itself resonates with parents, there has to be a formula for deciding who gets into schools that are oversubscribed. Factors for that included, first, if another sibling was already in the chosen school (sibling preference), and then race (if the school is way out of whack with district averages) and proximity to school.

Parents Involved in Community Schools did not like the schools that their kids were slated to attend. So they sued the school district. They didn't sue over sibling preference, or proximity, which they could have done. They chose to sue over the racial integration tie-breaker. This attracted support from the turn-back-the-clock crowd of people who oppose integration. The result is a whole lot more damage to racial integration across the country than the Parents Involved in Community Schools probably anticipated. But who knows - they seem to be happy about the outcome.

So does the law firm of Davis Wright Tremaine (DWT), which took this case for the Parents Involved in Community Schools as pro bono - that is, they didn't charge for their services. Now they intend to request that the Seattle School District pay the bills for their work for re-segregation. They say they will plow this back into more pro bono work, but we don't need any more of this kind of community "service" litigation.

I am surprised DWT is embracing the Supreme Court decision - the firm has a big emphasis on diversity in its partnership and mentoring new minority colleagues. Former Gov. Gary Locke, who knows a lot about discrimination, is one of the partners. DWT states, "We believe that increasing the diversity of our attorneys and staff is central to our ability to fulfill our commitments to our clients and the community. In short, diversity is critical to DWT's long-term success."

After the Supreme Court decision, DWT stated that "School districts around the country should now focus on improving how and what they teach all children." That's nice, but hard to do when you are billing the Seattle School District for over $1 million - money that could go to teaching children. DWT did make a donation of between $5,000 and $10,000 to the Alliance for Education to support the Seattle Schools. Now that appears to be just a figleaf for legal greed.

In fact, if DWT is sincere about improving education across the country, the firm would acknowledge the need for full-day kindergarten, high quality pre-kindergarten, more school days in the year, lower student-teacher ratios, and funding for music, arts and athletics, to start with. It is a lot easier to have true color-blind education when the resources are available for high quality education for all children.

So here's an idea for DWT's next pro bono venture: Lobby the Legislature to meet the constitutional paramount duty of education for all children. They could start by proposing that legal services should no longer be exempt from the sales tax. That new revenue, close to $200 million a year, could be dedicated to the public schools, improving the educational opportunities for all children. That would be true pro bono work.


Big Tort Lawyer Turns State's Evidence
Legal Business | 2007/07/10 07:07

Federal prosecutors are closing in on two titans of the class action bar, Melvyn Weiss and William Lerach, after one of their former law partners pleaded guilty to scheming to make secret payments to plaintiffs in securities lawsuits. David Bershad, 67, entered a guilty plea to one felony count of conspiracy before Judge John Walter yesterday afternoon. During the 40-minute hearing, Bershad told the judge that prosecutors were correct when they charged that the firm where he worked for nearly four decades, Milberg Weiss & Bershad, paid investors to serve as named plaintiffs. Bershad, the longtime financial chief for the firm, also implicated Messrs. Weiss and Lerach by agreeing that they were aware of and participated in the payments.

"Of course, this is the worst possible development," a law professor at New York University, Stephen Gillers, said. "It bodes ill for Partners A & B," the professor said, using the pseudonyms prosecutors have adopted to refer to Messrs. Weiss and Lerach in court proceedings. "Each of them is clearly in the prosecutors' sights," Mr. Gillers said. With Bershad's testimony, prosecutors "may now have the ability to pull the trigger" and obtain an indictment of the two men, Mr. Gillers said.

"It seems pretty damning to me," another professor who has been following the case, Larry Ribstein of the University of Illinois, said. "They are facing a trial or pretty hard time, if all this pans out."

Messrs. Weiss and Lerach have not been charged with any crime. However, in recent weeks, the pair has been in plea discussions with federal prosecutors, a lawyer involved in the case said, speaking on condition of anonymity.

Mr. Weiss's attorney, Benjamin Brafman, declined to comment on the development. Mr. Lerach's lawyer, John Keker, did not respond to a message seeking comment for this article.

Bershad could receive up to five years in prison on the conspiracy count. Prosecutors and Bershad's lawyers agreed that sentencing guidelines call for 18 months to two years in his case, though Judge Walter is not obligated to follow that recommendation. Bershad also agreed to forfeit $7.75 million of his receipts from the various lawsuits and to pay a $250,000 fine.

At yesterday's hearing, Bershad and one of his lawyers, Cristina Arguedas, stood at a lectern as a prosecutor, Richard Robinson, outlined the facts the government would seek to prove if Bershad went to trial. For 15 minutes, the prosecutor described the scheme by which Milberg Weiss used secretly paid plaintiffs to win the race to be first to file securities lawsuits.

"Generally, these individuals were promised that they would be paid approximately 10% of the net attorneys' fees that Milberg Weiss obtained," Mr. Robinson said. This gave Milberg Weiss an advantage because plaintiffs' firms that filed first were likely to be named as lead counsel and to enjoy a larger share of attorneys fees when cases were settled, he said. In 1995, Congress changed the laws related to class actions, and first-to-file status became less critical.

In one of the case's most eye-catching allegations, Mr. Robinson said Bershad kept in his office a stash of cash contributed by Milberg Weiss partners. The prosecutor said this became a "secret payment fund" used to make off-the-books distributions to plaintiffs, who were expected to take less than the customary 10% if they were paid in cash.

Mr. Robinson said Partner A, Mr. Weiss, made at least one payment from the fund, and Partner B, Mr. Lerach, sought reimbursement for a cash payment to a plaintiff. The prosecutor said Partner A also used a "phony option," which court papers indicate related to an artwork, to pay $175,000 owed to one plaintiff involved in the scheme.



California law firm repays excess fees to Nevada
Legal Business | 2007/07/09 05:21

A Sacramento, Calif., law firm accused of collecting nearly $100,000 in excess fees for advice relating to a college savings program in Nevada has repaid the money to the state. The Orrick firm sent a check for $95,862 along with a letter dated July 3 disputing the findings by Nevada legislative auditors of the College Savings Plans of Nevada. Advertisement Auditors concluded Orrick was paid $428 per hour for services in 2001-02, although a contract specified a $225 per hour limit, which resulted in nearly $96,000 in excess funds.

“We believe the Legislative Counsel Bureau (LCB) reached erroneous conclusions that could have been corrected by seeking clarification from Orrick before LCB published its audit report,” said the letter from James Houpt.

But the letter went on to say that the law firm considers Nevada to be a valuable client, and the firm's “intent is not to risk that relationship.”

State Treasurer Kate Marshall said the check already has been deposited in a state bank account.

“They respectfully disagreed with the audit, but they also felt it was the right decision for them to make the overpayment identified in the audit,” Marshall told the Las Vegas Review-Journal. “The state of Nevada is a little over $95,000 better off for it.”

As a result of the audit of the college savings program while under the review of then-Treasurer Brian Krolicki, Marshall sent a letter to the firm seeking a response.

Orrick had served as bond counsel to the state at the time the services were rendered for the program. The contract allowed the firm to provide legal services to other state agencies as well. The firm currently does not have any contract to serve as bond counsel with the state.

The treasurer's office is awaiting a response from another firm that did business with the state for the college savings program on a separate issue raised in the audit.

A Georgia consulting firm, GIF Services, was overpaid $300,000, according to the audit released in May.

The audit was sought by legislators after Marshall said in March that it appeared funds for the program were diverted for unauthorized legal expenditures and marketing costs.

The audit also raised the issue of whether Krolicki broke state law by not depositing $6 million in state-earned fees into the state treasury. The audit has been turned over to the attorney general's office for an investigation.

Krolocki, now lieutenant governor, has said he broke no laws in his management of the program during his eight years as treasurer.

The program was established by the 2001 Legislature to allow parents to invest money in mutual funds to build up college funds for their children.

None of the money that parents invested is missing or ended up in an improper account, according to the audit.



$20 Million Trial Involving Iverson Goes to Jury
Legal Business | 2007/07/07 06:27
A federal jury began deliberations Thursday in a $20 million lawsuit against Denver Nuggets guard Allen Iverson over a 2005 nightclub fight that two patrons say was sparked by Iverson's entourage. The NBA player has testified that he had no role in the brawl. A lawyer for the men suing Iverson and his bodyguard said in closing arguments Thursday that Iverson has demonstrated little concern about the case against him. He noted that Iverson only appeared in court Monday to testify for about two hours in a trial that is now into its second week.

"He doesn't respect the court. He ain't here," attorney Gregory Lattimer told the U.S. District Court jury, motioning toward an empty chair next to Iverson's lawyer at the defense table. "He doesn't respect anything that isn't Allen Iverson."

Marlin Godfrey and David Anthony Kittrell say the fight was started by Iverson's bodyguard and entourage when the pair refused to vacate a VIP section for Iverson at the Eyebar nightclub in Washington. Iverson, 32, testified that he didn't see the fight.

Godfrey and Kittrell claim the bodyguard, Jason Kane, and Terrance Williams assaulted them. They allege that Williams, a friend of Kane, was acting on Iverson's behalf.

Godfrey was badly beaten during the melee, suffering head and other injuries. Lattimer said he suffered depression and other long-term health problems from the incident.

The lawsuit says Iverson is responsible for the brawl because he failed to properly supervise Kane and Williams _ but it does not claim he took part in the fight. The suit also accuses Kane of assault and battery for allegedly beating Godfrey with items that include a bottle.

Iverson said Monday the suit was a get-rich-quick scheme by the two men, who targeted him because of his wealth and fame. Kane testified he wasn't involved in the fight and hustled Iverson out of the club when a brawl appeared imminent.

Iverson's lawyer, Alan Milstein, told jurors Thursday that Kittrell and Godfrey lied about details of the fight and who instigated it.

Iverson had no role in the melee, and wasn't responsible for Williams, who was not working for him, Milstein said. He echoed Iverson's claim that the case was an attempt to fleece the wealthy NBA star.

"The only reason Mr. Iverson is sued is because he's got the money. This whole case is about who's got it and how do we get it," Milstein said.

Iverson faces another lawsuit for another nightclub fight involving his security in Hampton, Va. That happened less than two weeks before the Washington fight.



Carbondale law firm celebrates anniversary
Legal Business | 2007/07/07 01:29

July marks the 30th anniversary for a Carbondale law firm that has technically been in existence for the last 99 years.

Feirich/Mager/Green/Ryan and Associates, 2001 W. Main St. near the Westtown Mall in Murdale, established its current banner in 1977, but the roots of the firm stretch back to 1908, when local attorneys W.W. Barr and C.E. Feirich started a practice together.

Firm partner Richard Green, one of the founders of the business' current iteration, said lasting 30 years in one form means you're doing well; lasting nearly a century in some fashion is extraordinary. Then again, the firm has always been known for beating the odds, he added.

"You think about it, in 1977 we were a six-person law firm, a size that was unheard of at that time. People said it wouldn't survive," Green said.

It did and has grown into a firm housing 15 lawyers, six paralegals and numerous other staff members.

There was a time when Southern Illinois was considered underserved with its number of attorneys, partner John Ryan said.

"There's an old saying that goes if there is one lawyer in town he'll starve to death, but if there are two, they'll do just fine," Ryan said.

Today the Jackson County Bar Association alone has more than 240 registered attorneys, Ryan said. Being an attorney is a lucrative career option, he said, because lawyers are called on quite often.

"The work is a byproduct of our society," Ryan said.



Law firm boosts cellular signal in new offices
Legal Business | 2007/07/06 07:25

Cellular signals often have difficulty penetrating massive steel high-rise buildings. But in Washington's downtown, matters are worse because of height restrictions that force builders to add multiple basement floors.

One law firm knew that a new headquarters facility near the White House might pose problems for 500 lawyers and staffers using wireless handhelds, so it commissioned a site survey before the headquarters was finished. The survey found that cellular signals would probably be poor, especially in a new law library three stories underground.

"Indoor cellular coverage is a real problem in D.C., and we're one of the few tenants to get to a solution," said Rodney Carson, director of administration for the Washington headquarters of Kirkpatrick & Lockhart Preston Gates Ellis LLP (K&L Gates). "The cellular phone companies have not been real forthcoming in solving these problems."

Indeed, two hotels operated by Marriott International at the Grand Lakes resort in Orlando had to install special indoor antennas to boost cellular signals for guests, several years after the hotels opened.

Carson's law firm started researching the indoor cellular problem in early 2006 and by April had finished installing a system to boost cellular signals for both T-Mobile USA Inc., provider of Research In Motion Ltd.'s BlackBerry service, and Verizon Wireless, the carrier that the majority of cellular voice users at the law firm rely upon, Carson said.

Carson asked Glasgow Group Inc., a Washington-based telecommunications consultancy, to recommend vendors of equipment to boost the cellular signals, and the law firm eventually chose LGC Wireless Inc. San Jose-based LGC installed a system of cables, three communications hubs and 24 remote antennas as the new 11-story high-rise building was completed.

The LGC InterReach Unison system cost K&L Gates about $80,000. The law firm also paid T-Mobile about $20,000 to install a mini base station, and it paid Verizon about $50,000 for a rooftop antenna.

At the Marriott hotels in Orlando, Mobile Access Networks Inc. in Vienna, Va., installed special distributed antennas to handle cellular and Wi-Fi, and the total of all the related costs topped $2 million. InnerWireless Inc. in Richardson, Texas, also competes in the market for in-building wireless systems, according to a spokesman for LGC.

Carson said today that the cellular signals now work well, even three stories underground in the law library, where about 60 people work. "We had all sorts of complaints about the signal at our older building, and with three floors underground, we knew we faced life safety issues, and needed some sort of solution," Carson said.

"Now we get rave reviews from users as well as clients and attorneys from other firms who can get a signal but say they can't get their phones to work at their own offices," he said.

K&L Gates also has Wi-Fi service throughout its new building, but a decision to add voice over the Wi-Fi has been delayed as IT staff consider security issues, Carson said.

Carson said he realizes that the costs for the project were much less because the work was done during construction and not afterward, as was the case at the Marriott hotels in Orlando.

Having reliable indoor cellular access is going to prove to be a sound decision, Carson added. "That's especially true because everybody has gotten more reliant on handhelds," he said.




High court misfires on desegregation
Legal Business | 2007/07/03 06:55

After 53 years of standing against racially segregated public classrooms, the Supreme Court has signaled retreat. That it came in a case partially growing from Louisville's traumatic school desegregation in 1975 was poignantly ironic. Thirty-two years can erase many memories. They heal old wounds and allow communities ripped apart by bitterness to come together again. City-county conflicts that helped fuel the 1975 protests have faded with the adoption of a metropolitan Louisville-Jefferson County government.

Still, many veterans of those days must feel a sense of betrayal. Was what we stood up for as right - and this applies to those urging obedience to the law and those protesting in the streets - all wrong?

Members of the county school board must feel that the high court has turned its back to its efforts to make classrooms' racial makeup reflect the county's.

Lost among the arguments and counterarguments was the simple fact that the case didn't have to be. Louisville had won national attention in 1956 for voluntarily desegregating its public schools in compliance with Brown vs. Board of Education. It was a token action since housing patterns dictated that neighborhood schools would remain single-race.

By the 1970s, the city's demographics had changed. Housing patterns, in part spurred by urban renewal, had shifted. Louisville's West End, once dominated by ethnic, blue-collar families, became the home for blacks fleeing the inner city and, in many cases, urban renewal's relentless bulldozers. White families moved to the suburban developments springing up across Jefferson County.

A ring of small cities surrounding Louisville blocked the city from annexing the new communities. And the county's sleepy, essentially rural school system found itself scrambling to build schools fast enough to accommodate the influx.

By the early 1970s, it was apparent the Louisville school system was close to the tipping point where the city's remaining white families would flee. The county schools, by contrast, were almost all white. There were a few historically black neighborhoods scattered across the county, most of them in one school district. Both districts became the target of desegregation suits. The Kentucky Commission on Human Rights argued that the districts should be merged.

The city school board then complicated the cases. It bowed to the reality of a shrinking tax base and the threat of white flight and went out of business. The Legislature enacted merger legislation, and the systems, which had little respect for each other, began to try to reconcile their cultures and educational philosophies. U.S. District Judge James Gordon, who was hearing the desegregation suits, gave them breathing room by finding both systems legally desegregated.

But the 6th Circuit Court of Appeals wasn't convinced. Newburg School, serving a historically black community, went through the eighth grade. All other county elementary schools stopped at the sixth grade. It was a vestige of de jure segregation that Judge Gordon acknowledged having had difficulty "writing around" in finding the schools in compliance with Brown.

The case bounced back to Judge Gordon with an order to put a desegregation plan into effect. To help in drafting it, Judge Gordon turned to two young administrators in the city system. They developed a system of school clusters, pairing inner city predominantly black schools with suburban schools. Students were to be transported among the schools according to the first letter of their last name. To achieve racial balance, white students would be bused two years; black students, 10.

Implementation of the plan marred Louisville's image across the country. The ugly pictures from protest marches and rallies showed up on the 6 p.m. news nationwide. The Courier Journal and Louisville Times building at Sixth and Broadway became a favorite target because of our calls for obedience to the law. Reporters and photographers covering the marches and rallies took an undeserved share of the abuse.

To have it end up with the almost flip statement by Chief Justice John Roberts that the "way to stop discriminating on the basis of race is to stop discriminating on the basis of race" is dismissive of centuries of discrimination. It puts down the good-faith efforts by Louisville and thousands of other communities to overcome that past.

Americans of all races deserve better of their highest court.



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Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website and help you redesign your existing law firm site to secure your place in the internet.
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