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Highland Financial Partners Files Lawsuit Against Orrick Herrington & Sutcliffe LLP

jim — Sat, 28 Jan 2012 03:20:36 +0000

A lawsuit was filed on Wednesday in the state of Texas by Highland Financial Partners LP that alleges that its former counsel, Orrick Herrington & Sutcliffe LLP, cost the firm $95 million because it failed to tell them about a provision in a collateralized debt obligation transaction that allowed Royal Bank of Scotland Group PLC to cancel it whenever it wanted to do so.

Orrick is accused of costing the investment firm and its affiliates, Highland CDO Opportunity Master Fund LP and HFP CDO Construction Corp., close to $100 million in damages after Orrick failed to tell the company that its CDO with RBS could be canceled by RBS at any time without explanation.

Orrick is alleged to have committed legal malpractice when advising Highland in the CDO transaction that took place in 2007 and in 2008. During this time period, the firm reviewed two amendments that were supposed to extend the deadline time to finish the transaction and close it.

According to the lawsuit, Orrick knew that Highland paid RBS over $65 million for extensions but Orrick did not tell the firm that the amendments did not cancel a provision from the original agreements that allowed the bank to cancel the agreement whenever it pleased. The suit then says that the firm paid tens of millions of dollars for ‘meaningless extensions.’

The lawsuit then claims that RBS prematurely ended the agreement in October of 2008 because of Orrick’s negligence and the fact that RBS wanted to take advantage of international accounting standards that would allow RBS to report a profit of $30 million when it foreclosed on the assets in November of 2008.

According to the lawsuit, Highland lost $65 million that it had to pay to RBS and also faces approximately $30 million in deficiency.

“It was well understood that Highland paid more than $65 million in exchange for an extension of the transaction that would allow the parties sufficient time to close the deal,” the suit said. “Yet, despite Highland’s express directives, Orrick’s extensive experience with Highland, and Orrick’s industry-leading knowledge of these transactions, Orrick negligently failed to advise Highland that the amendments permitted RBS to unilaterally terminate the deal at any time.”

In each of Highland’s CDO transactions dating back to the middle of the 1990s, Orrick has represented Highland from its London and Los Angeles offices. During that period, 25 CDO transactions took place in the United States and four CDO transactions took place in Europe from 1996 to 2008. William T. Reid IV, Lisa S. Tsai, Joshua J. Bruckerhoff and Craig A. Boneau from Reid Collins & Tsai LLP represent Highland in the case. The counsel for Orrick has not been announced yet. The case is titled as Highland CDO Opportunity Master Fund LP et al v. Orrick Herrington & Sutcliffe LLP et al. The lawsuit was filed in the District Court of Dallas County, Texas, the 68^th Judicial District.

Order Blocking Sharia Law Ban in Oklahoma Affirmed by Appeals Court

jim — Wed, 11 Jan 2012 20:04:06 +0000

A ruling has been upheld by a federal appeals court that blocked the implementation of an Oklahoma law that bars judges from considering international or Islamic law in their decisions.

The ruling was released on Tuesday by the United States 10^th Circuit Court of Appeals, affirming an order by a district court judge back in 2010. The ruling prevented a voter-approved state constitutional amendment from taking effect in the state. The ruling from the court of appeals also said that a certain Muslim community leader in Oklahoma City to continue his challenge of the law’s constitutionality.

The measure is called State Questions 755 and it was approved by 70 percent of the vote back in 2010. If the amendment is passed, it would bar courts from considering legal precepts of other nations or cultures in the state.

The law reads, “Specifically, the courts shall not consider international law or sharia law.”

The opinion of the appellate court points out that the proponents of the law admit to not knowing any instances where a court in Oklahoma applied sharia law or legal precepts of other countries in their rulings.

“This serves as a reminder that these anti-sharia laws are unconstitutional and that if politicians use fear-mongering and bigotry, the courts won’t allow it to last for long,” said Muneer Awad, executive director of the Council on American-Islamic Relations in the state of Oklahoma.

Awad filed a lawsuit in an effort to block the law, saying that it infringes on his and others’ First Amendment rights.

It has been argued by proponents of the law that it is intended to ban courts from considering all religious laws and that sharia was only used as an example. This was disagreed on by the appellate court.

“That argument conflicts with the amendment’s plain language, which mentions sharia law in two places,” the court opinion read.

Senator Anthony Sykes, a Republican, sponsored the measure in the state Senate. He said the goal of the law is to require judges to apply only the laws of the country and the state of Oklahoma.

“Sharia merges religion and the law. Our constitution is totally different,” he said. “I think it is something that competes with our constitution — it just doesn’t mesh.”

Sharia translates to “path” in Arabic and its intent is to guide Muslims to connect with God. It is rooted in that of mercy and compassion, according to Salam Al-Marayati, whoi is the president of the Muslim Public Affairs Council in Los Angeles, California.

It is argued by Al-Marayati that campaigns to ban sharia cause a distorted view of the Islamic Law.

“They equate it with unjust and abusive practices originated by tyrannical regimes in the Middle East,” he said. “They use misconceptions about Muslims to misinform the American public.”

News Corp. Hires Williams & Connolly Partner as Counsel

jim — Wed, 11 Jan 2012 18:05:49 +0000

A partner from Williams & Connolly has been tapped by News Corp. to serve as the company’s group general counsel. The partner, Gerson Zweifach, has experience in litigation, first amendment, media and patent law. He will hold the position of senior executive vice president of News Corp.

Zweifach is taking over for Janet Nova, who served as the interim general counsel for the previous six months. He will report directly to Chairman and CEO Rupert Murdoch.

Zweifach said that it was a tough decision to leave the firm that he worked at for close to 30 years.

“I’m part of the furniture here. It’s family,” he said of the firm. He also said that he is exited for the “unique opportunity to play an important role in this global media company at a critical time in their history.”

The biggest obstacle he will encounter is the investigation of the phone-hacking scandal by News Corp. He said that it is important for him to find out how and where the activities involved occurred and how they unfolded. He also said that he will put policies and procedures in effect to prevent this from ever happening again.

Zweifach will still work closely with his former firm, which represents News Corp.

Zweifach will be at the top of a team of attorneys that have been hired since the scandal broke back in the summer months. The legal team that has been working with News Corp. includes Joel Klein, the former head of the Justice Department’s antitrust division and Viet Dinh, from Bancroft.

The three attorneys will soon face the task of responding to criminal investigations in the United Kingdom and the United States. Lawsuits have been filed in both countries against News Corp. as well.

Zweifach developed a reputation as a seasoned attorney who handled crises for clients in and out of court while working at Williams & Connolly.

Zweifach defended former chief of the New York Stock Exchange Richard Grasso in one high-profile case. There was a lawsuit filed against Grasso by former New York State attorney general Eliot Spitzer. The suit was dismissed by the New York State Court of Appeals in 2008.

“He understands the intricacies of business situations and helps a client make good judgments outside the context of pure litigation,” Robert Barnett, a senior partner at Williams & Connolly, said. “Because of the work he’s done here, he has an extremely good understanding of how corporations work and the challenges they face, economic, regulatory, investigatory, litigation and public relations. He’s a counselor in the traditional sense, not just a litigator.”

“We worked on a lot of high profile cases where media attention is not unusual,” Steven Farina, a partner at Williams & Connolly, said. “The attention to that case was quite intense and the litigation with the AG’s office was hard fought. We are sorry to lose him, but I think he’ll be an extraordinary general counsel. If I needed a lawyer, he would be the first person I would hire.”

Rupert Murdoch added, “We are fortunate to have such a renowned attorney join our Company as we navigate the rapidly changing media landscape.”

Rising cost of healthcare leads to bankruptcy

EmploymentCrossing — Fri, 02 Sep 2011 06:57:42 +0000

Medical bills and bankruptcy are going hand in hand due to the ever rising cost of healthcare, according to 20% Americans. Also, in an effort to save money, Americans who acquire insurance pick cheaper plans with lower premiums which have high deductibles, making consumers susceptible to high costs before their insurance comes into play.

Read this article here

Medical Bills, Debt Sends Many into Bankruptcy

Morning Roundup

joshua — Fri, 04 Mar 2011 16:56:53 +0000

Good morning everyone! Today is Friday, March 4, and here’s a quick glance at yesterday’s news…

WlimerHale jumped on the spring bonus bandwagon…

Howrey lost another big batch of lawyers…

Sirhan Sirhan was denied parole…

UK firm Kennedys merged with its Portugese partner…

and pop star Prince is facing some unpleasant legal troubles…

Morning Roundup

joshua — Wed, 02 Mar 2011 11:57:02 +0000

Good morning everyone! Today is Wednesday, March 2, and this is a quick look back at this week’s news…

The partnership has approved DLA Piper’s merger with its Australian partner…

Congress has reached a deal to temporarily avoid a shutdown…

Democrats in Congress have introduced an ethics bill that would cover the Supreme Court…

Barnes & Thornburg is entering the LA market…

and Gibson Dunn had a record breaking year in 2010…

Morning Update

joshua — Thu, 24 Feb 2011 16:38:39 +0000

Good morning everyone! Today is Thursday, February 24, and here’s a look back at yesterday’s stories…

Linsday Lohan is back in court…

Rahm Emanuel is the new Mayor of Chicago…

The Justice Department will not defend DOMA in court…

and Linklaters is paying a spring bonus to US associates…

Morning Roundup

joshua — Wed, 23 Feb 2011 17:30:26 +0000

Good morning! Today is Wednesday, February 23, and here’s a quick look back at yesterday’s news…

Zuckerman Spaeder absorbed a Baltimore boutique…

Dickstein Shapiro expanded its IP practice in Southern California…

And Congress is considering suspending the Equal Access to Justice program…

Morning Update

joshua — Mon, 21 Feb 2011 16:55:57 +0000

Good morning everyone! Today is Monday, February 21. Today we celebrate the lives of George Washington and Abraham Lincolns and by extension 235 years of history. Here’s a quick look bat at Friday’s news…

DLA Piper is opening up in Miami…

UK firm Emmets is adding 100 positions…

and The California Bar Association is asking US News and World Report to add a diversity category to its law school rankings…

Morning Roundup

joshua — Fri, 18 Feb 2011 13:27:37 +0000

Good morning everyone! Today is Friday, February 18, and here’s a quick look back at yesterday’s news…

White & Case reported 2010 numbers that look a lot like 2009…

Clifford Chance is moving into Australia…

and the Howrey exodus continued…

Morning Roundup

joshua — Fri, 11 Feb 2011 10:53:30 +0000

Good morning everyone! Today is Friday, February 11, and here’s a recap of yesterday’s news…

Fiancial reports for 2010 continue to trickle in, and yesterday we talked about Reed Smith…

The 2012 election cycle is already underway and two more senators have announced their retirement plans…

Cadwalader is going to court to defend itself against a $13 million malpractice claim…

and King & Spalding picked up a 14 attorney team from an Oakland firm…

Morning Roundup

joshua — Thu, 10 Feb 2011 15:35:46 +0000

Good morning everyone! Today is Thursday, February 10, and here’s a look back at yesterday’s news…

South Carolina is debating a law to punish inmates for belonging to social networking sites…

Locke Lord’s revenues were flat in 2010…

Proft and revenues were up at DLA Piper last year…

Dewey & LeBoeuf added a large bankruptcy team from an LA Boutique…

and Pillsbury picked up a real estate team from Orrick…

Morning Roundup

joshua — Tue, 08 Feb 2011 17:40:46 +0000

Good morning everyone! Today is Tuesday, February 8, and here’s a quick look back at yesterday’s news…

Things appear to be calming down a little in Cairo…

More firms are reporting their 2010 numbers, we have information from Cadwalader and Dechert…

2010 was the slowest year for partner laterals since 2000…

and the January numbers are out from the Labor Department – the legal sector is expanding again…

Morning Roundup

joshua — Fri, 04 Feb 2011 13:46:30 +0000

Good morning everyone! Today is Friday, November 4, and as we head into Super Bowl weekend, let’s take a quick look back at yesterday’s news…

2010 was another good year at Bingham…

Edwards Angell Palmer & Dodge merged a local firm into its DC office…

Blank Rome picked up a seven attorney consumer financial services practice group…

The exodus from Howrey continued as eleven attorneys moved to Morgan Lewis…

and as civil unrest gains intensity in Egypt, major law firms are shutting down local offices for the duration…

Although not part of our normal news coverage, we have our eyes on Egypt today as the protests swell to record size and the US pressures Mubarak to step down.

Weekend Review

joshua — Mon, 31 Jan 2011 15:59:18 +0000

Good morning everyone! Today is Monday, January 31, and here’s a quick look back at the end of last week…

Greenberg Traurig terminated a partner caught up in an SEC proceeding…

Kaye Scholer added a partner from Reed Smith…

Patton Boggs increased revenues and profits in 2010…

and DLA Piper is getting set to merge with its Australian partner, DLA Phillips Fox…

Morning Roundup

joshua — Tue, 25 Jan 2011 11:34:13 +0000

Good morning everyone! Today is Tuesday, January 25, and here’s a look back at Monday’s news…

WilmerHale’s 2010 numbers show substantial growth over 2009…

Terrorists attacked Moscow’s largest airport…

and Foley & Lardner picked up a former governor…

Morning Roundup

joshua — Mon, 24 Jan 2011 18:02:36 +0000

Good morning everyone! Today is Monday, January 24, and here’s a quick look back at the headlines from the end of last week…

Anderson Kill is opening a new office in Connecticut…

Wilmer Hale recruited a senior attorney from the Air Force…

Dewey & LeBoeuf picked up Howrey’s vice-chair…

and Kent Conrad will retire from the Senate in 2012…

Morning Roundup

joshua — Wed, 19 Jan 2011 15:14:15 +0000

Good morning! Today is Wednesday, January 19, and here’s a look back at yesterday’s headlines…

Gibson Dunn scooped up four partners from Vinson & Elkins…

Dewey added seven new partners from several firms…

The FBI is looking for information related to an explosive device left along an MLK Day parade route…

and Joe Lieberman is the latest Senator to announce plans to retire…

Morning Update

joshua — Tue, 18 Jan 2011 16:24:53 +0000

Good morning everyone! Today is Tuesday, January 18, and here’s a quick look back at recent news…

Dykema added a former AG to its roster in Michigan…

Two former Senatorsare joining forces at Arent Fox…

The number of part time lawyers in large firms is climbing…

And the ABA is considering allowing schools to not require the LSAT for admissions…

Morning Roundup

joshua — Wed, 12 Jan 2011 17:47:59 +0000

Good morning everyone! Today is Wednesday, January 12, and here’s a look back at the first half of the week…

Dewey & LeBoeuf has a new vacation policy…

Winston & Strawn expanded it’s IP team…

Covington & Burling added a former Washington DC Attorney General…

and merger talks between Reed Smith and Thompson & Knight are off…

Morning Roundup

joshua — Tue, 04 Jan 2011 18:01:26 +0000

Good morning everyone! Today is Tuesday, January 4, and here’s a quick glance back at yesterday’s news…

Troutman Sanders has a new managing partner…

LeClairRyan added 16 lawyers from Nixon Peabody…

Thonpson Hine has a new head lawyer in Cleveland…

and Martin & Churchill is closing up shop for good…

Morning Roundup

joshua — Thu, 30 Dec 2010 16:46:04 +0000

Good morning everyone! Today is Wednesday, December 29, and here’s a quick glance back at yesterday’s news…

GreenbergTraurig picked up a lateral from Locke Lord in Phoenix…

Barnes & Thornburg promoted a new partner…

Jones Day is holding firm on its policy of not paying year end bonuses…

And Brownstein Hyatt has a new COO…

Holiday Roundup

joshua — Mon, 27 Dec 2010 16:15:55 +0000

Good morning everyone! Today is Monday, December 27, and here’s a look back at the pre-Christmas news…

Boies Schiller bucked the market rate for bonuses…

and Sidley Austin expanded its international arbitration practice in Switzerland…

Morning Roundup

joshua — Wed, 22 Dec 2010 15:59:34 +0000

Good morning everyone! Today is Wednesday, December 22, and after a brief hiatus we are returning to bring you a quick review of the week’s top stories.

King & Spalding is expanding its government investigations practice in California…

Jones Day has a new Partner In Charge of its Dallas office…

Fulbright & Jaworski is relocating its Austin office…

Covington & Burling picked up a former Bush appointee…

Quinn Emanuel announced its new partnership class…

And Cleary Gottlieb has a new managing partner…

Morning Roundup

joshua — Fri, 03 Dec 2010 13:54:55 +0000

Good Morning! Today is Friday, December 3, and here’s a quick look back at yesterday’s stories…

The US Senate is preparing to pass a new whistle blower law…

Cleary is moving into Hong Kong…

Collas Day and Crill Canavan are set to merge…

A new panel has been authorized to consider pay raises for New York judges…

And WilmerHale has named a new pair of managing partners…

Morning Roundup

joshua — Wed, 01 Dec 2010 18:17:11 +0000

Good morning! Today is Wednesday, December 1, and here’s a quick look back at yesterday’s news.

Miller Thomson is reportedly in merger talks…

It was another rough year for Pennsylvania law firms…

Not everyone is happy with the Hammonds and Squire Dempsey merger…

and Jones Day is opening a new office in Boston…

Morning Roundup

joshua — Tue, 16 Nov 2010 13:55:09 +0000

Good morning everyone! Today is Tuesday, November 16, and here’s a quick look back at Monday’s headlines…

Threats against social security judges have increased in both nature and scope…

The FDIC has filed a suit against Bryan Cave…

Venable picked up five attorneys from Wilmer Hale…

and Dickstein Shapiro added 12 attorneys to its M&A practice on the east coast…

Morning Roundup

joshua — Thu, 22 Jul 2010 14:56:16 +0000

Good morning! Today is Thursday, July 22, and here’s a look back at yesterday’s news…

Lindsay Lohan lost another lawyer on her way to jail…

A UC Berkley report finds that law professors lean to the left…

Merger talksbetween Townsend & Townsend and Kilpatric Stockton have broken down…

Ulmer & Berne add three lawyers in Ohio…

and summer hiring among top law first is down significantly this year…

Law 360 Recognizes Six Lawyers from Sidley Austin LLP

joshua — Thu, 22 Apr 2010 12:40:50 +0000

Law360 has recognized six partners from Sidley Austin LLP as Rising Stars Under 40.

The attorneys are Chris Abbinante, Theodore Chandler, Sharon Flanagan, Robert Hochman, Sean Keyvan and Roger Martella.

In the press release at the firm’s website, Thomas A. Cole, Chair of the firm’s Executive Committee was quoted as saying: “Each of these six partners has demonstrated legal skill, innovation and leadership within their area of practice. I am pleased to congratulate Chris, Ted, Sharon, Rob, Sean and Roger on this recognition, and I look forward to what I know will be many future successes.”

Chris Abbinante is a partner in the firm’s corporate group, Theodore Chandler a partner in the firm’s intellectual property litigation practice, Sharon Flanagan a partner in the firm’s corporate practice, Robert Hochman a partner in the firm’s appellate practice, Sean Keyvan a partner in the firm’s insurance practice, and Roger Martella a partner in the firm’s environmental practice.

Law360 distributes legal news daily via e-mail newsletters on a wide range of practice areas.

Sidley Austin LLP is one of the world’s largest full-service law firms, with approximately 1,700 lawyers practicing in 17 U.S. and international cities.

Morning Roundup

joshua — Thu, 04 Mar 2010 14:30:04 +0000

Good morning everyone! Anyone else ready for it to be Friday? Bad news, friends, it’s only Thursday, March 4. Here’s a look back at yesterday’s news…

AIG’s former GC, Anastasia Kelly, has joined DLA Piper…

A survey of Big Law shows 26% of firms are poised to expand…

And another shows that corporation are looking to save money by expanding in house counsel…

Lawyers for Civil Justice is starting an ambitious review of the FRCP…

The DOJ has filed a $300 million suit against lawyers and insurance companies involved in a PCB contamination settlement…

Baker Donelson is forming a gaming industry group…

NALP reports that summer associate offers are at a 17 year low…

and Jackson Lewis had a good year in 2009…

Morning Roundup

joshua — Thu, 25 Feb 2010 11:33:56 +0000

Good morning everyone! Today is Thursday, February 25, and here’s a quick look back at yesterday’s news…

Morrison Foerster added a lateral in New York…

A former US Attorney joined up with Locke Lord…

Marc Daniel joined Arnold & Porter in Washington DC…

Latham & Watkins added one in Hong Kong…

Revenues dipped slightly while profits stayed flat at Arent Fox…

And speaking of Arent Fox, the firm picked up a lateral from Jones Day…

Jenner Block had a good year in 2009…

Jones Day picked up another California lateral…

Covington & Burling grow in Beijing…

Three Google executives have been convicted in absentia by an Italian court for privacy violations…

And Morgan Stanley’s chief legal officer has stepped down…

Morning Roundup

joshua — Thu, 18 Feb 2010 12:25:25 +0000

Good morning! Today is Thursday, February 18, and here’s a quick look back at yesterday’s headlines…

Citizens are nearly united against the Citizens United ruling…

Kilpatrick Stockton picked up a pair of partnersfrom Winston & Strawn…

The DoJ issued indictments in two noteworthy cases…

Another study shows fewer lawyers are making partner during the recession and recovery…

Latham & Watkins saw a decline in revenue in 2010, but per partner profits were up…

A pair of Chicago firms are moving into new digs…

Allen & Overy is opening up in Qatar…

Kaye Scholer has a new co-managing partner…

Gibson Dunn increased revenue and per partner profits last year…

While things remained steady at Greenberg Traurig…

Morning Roundup

joshua — Mon, 15 Feb 2010 08:28:03 +0000

Good morning everyone! Today is Monday, February 15, and as the 3rd Monday in February it is also Presidents Day. For those of you not fortunate enough to have a three day weekend, let’s take a look at Friday’s news…

Tipsters tell us that Hawkins & Parnell is opening in Austin…

Colson Hicks is opening in Washingtonwith the help of a managing partner from Greenberg Traurig…

Sidley Austin finally told its associates what they would be paid in 2010…

So did Winston & Stawn, but it’s not good news…

Layoffs are coming in the Los Angeles courts…

The Senate confirmed a few nominees…

25 firms have formed a consortium to file a class action against Toyota…

Podhurst Orseck picked up a big lateral from Holland & Knight…

Harry Reid leveled a sharp criticism against the ABA judicial evaluation committee…

and former President Bill Clinton was released from the hospital…

Morning Roundup

joshua — Tue, 02 Feb 2010 12:22:25 +0000

Good morning everyone! Today is Tuesday, February 2, and here’s a quick peek back at yesterday’s headlines…

Ropes & Gray adds a former Assistant to the Solicitor General…

McDermott Will & Emery added one to its IP practice…

A forthcoming DoJ report will admonish but not sanction the lawyers who authored the “torture memos“…

UC San Diego is working on plans for a new law school…

DLA Piper hired Pfizer’s assistant general counsel…

Lateral moves were at a record high in 2009…

A Federal Court has ruled in favor of a blind law student trying to take the bar exam…

Jones Day has issued a memo in opposition to the NALP recruitment report…

Two more Paul Hasting lawyers moved to Haynes and Boone, bringing the total to six…

Chadbourne & Parke added one to its anti-trust practice…

Latham & Watkins added eight more from White & Case…

And Paul Weiss had record high profits in 2009…

Morning Roundup

joshua — Mon, 01 Feb 2010 12:26:05 +0000

Good morning everyone! Today is Monday, February 1, and I hope everyone had a great weekend. Let’s get the week rolling with a look back at Friday’s news…

Latham & Watkins picked up four from White & Case in London…

Goodwin & Procter’s profits and revenue were down in 2009…

Same story at Quinn Emanuel…

But Hughes Hubbard saw increases to both…

Vinson & Elkins thawed out salaries and issued bonuses…

McDonald Hopkins picked up an IP litigator from Kirkland & Ellis…

Lathrop & Gage settled a legal malpractice suit with the FDIC for $7.4 million…

A new study shows that female judges are still under represented across the country…

In California a federal judge will hear motions in a case asking for accommodations for a blind law student taking the bar exam…

And the former White House Deputy Counsel accused of attacking his wife is being sued by her…