Source: http://news.feedzilla.com/en_us/stories/law/video/392636052?client_source=feed&format=rss
Thursday, August 28, 2014
India supreme court rules coal mining licenses illegal
Source: http://jurist.org/paperchase/2014/08/jurist-in-2012-the-justice.php
Cull, Baby, Cull - Modern Trends in Data Collection and Analysis
In this episode of Digital Detectives, Sharon Nelson and John Simek interview e-discovery solutions expert Aaron Lawlor about what is involved with ESI and data collection, current trends in data analysis, and future advances in technology and process. Lawlor urges every litigator to become experienced with the state and federal rules involving e-discovery in order to better serve their clients. He explains the process of research and documentation of key players in the case, and then collecting, analyzing, and refining any relevant information before presenting to the counsel. In order to facilitate this process, lawyers and data collectors narrow the data set early by a process of visualizing connections and communication mapping. It is important, Lawlor says, for every lawyer to become familiar with e-discovery and data collection, since it is an increasingly important source of information.
Aaron Lawlor is the senior director of Global Legal Solutions at UnitedLex Corporation. He has spent the past decade addressing his clients' e-discovery needs, first as an attorney at Am Law 100 firm, then as the cofounder of a boutique consulting and managed document review company. His company was acquired by UnitedLex in 2013 and, in his current role, he partners with in-house and outside council to implement value-driven e-discovery solutions.
Special thanks to our sponsor, Digital WarRoom.
Location, Location, Location – No, Not Real Estate … Tweeting
Everyone has heard the old saying about real estate – location, location, location. If you didn’t think that this applies to tweeting, you will now. As reported by The Arab Times:
The Misdemeanor Court sentenced a Twitter user to two months in prison with hard labor and temporary compensation for insulting a poet. Attorney Hussein Al-Asfour, lawyer for the plaintiff, pointed out in court that the accused tweeted statements deemed offensive to the poet; especially since the tweets were about the latter’s personal life. The accused posted the offensive tweets again after the plaintiff announced his plan to contest the parliamentary elections. During investigations, the defendant refuted the allegation that he tweeted the offensive statements; claiming another person used his account. However, when the complaint was referred to the Electronic Crimes Department, it was found out the accused owns the account and he posted the insulting statements repeatedly. Taking these circumstances into consideration, Al-Asfour asked the court to impose the harshest penalty on the accused.
Yikes.
Source: http://rss.justia.com/~r/LegalJuiceCom/~3/cB_aLNBUOF0/sfadf.html
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Fla. High Court Asked to Settle Gay Marriage Question
Source: http://www.law.com/jsp/article.jsp?id=1202668234216&rss=newswire
Wednesday, August 27, 2014
LawBiz® Legal Pad: Ethical Considerations in Collecting Your Fee
Ed discusses managing a client’s fee expectations.
Source: http://feeds.lexblog.com/~r/LawBizBlog/~3/SRAhfeThnVI/
Delaware Court of Chancery Rejects Indemnification Sleight of Hand
In Branin v. Stein Roe Inv. Counsel, LLC, C.A. 8481-VCN, 2014 WL 2961084 (Del. Ch. June 30, 2014), the Delaware Court of Chancery held that a vested right to indemnification may not be rescinded by a subsequent amendment to the governing corporate document.
Francis S. Branin Jr. (“Branin”) owned and managed the investment management firm Brundage, Story & Rose, which was sold to Bessemer Trust, N.A. (“Bessemer”) in 2000. Nearly two years later, Branin left Bessemer and was hired by Stein Roe Investment Counsel LLC (“SRIC”), taking former clients with him. Bessemer proceeded to sue Branin under New York’s Mohawk Doctrine, which refers to an implied covenant imposed on the seller of a business that prevents the seller from approaching former customers and attempting to regain their patronage after the seller has purported to transfer the sold business’ goodwill to the purchaser. As a result of the legal claim by Bessemer, Branin sought indemnification under the directors and officers indemnification provisions of the operating agreement of SRIC (the “Operating Agreement”).
The Operating Agreement in effect when Branin was hired by SRIC provided that, “each member, manager or employee of [SRIC] shall be entitled to indemnification from [SRIC]for any loss, damage or claim by reason of any act or omission performed or omitted by such Person in good faith on behalf of [SRIC]” (the “Original Indemnification”). Following the lawsuit by Bessemer, SRIC adopted an amendment to the Operating Agreement to exclude from the indemnification provision claims for damages incurred as a result of a “breach of any agreement, express or implied, entered into by such Person with one or more outside parties prior to such Person’s association with the [SRIC]” (the “Amended Indemnification”). The issue before the Court hearing Branin’s claim against SRIC was which version of the Operating Agreement should govern.
Under Delaware law, limited liability companies have the ability to indemnify members and managers and have significant freedom to define, limit and amend these rights. Therefore, the issue is not whether SRIC was within its rights to amend the Original Indemnification to exclude certain types of claims, but rather when Branin’s right to indemnification (pursuant to the Original Indemnification) became a vested interest. The Court looked to the terms of the Original Indemnification, which covered a “claim” and determined that, without more, the right to indemnification would be triggered by the initial occurrence of a “claim.” The Court concluded that Branin established the right to pursue a claim for indemnification under the Original Indemnification, agreeing with the examined case law that “generally protects indemnitees and looks to the operating agreement in place when the events giving rise to the claim accrued or when the lawsuit involving the claim was filed.” (emphasis added) See Branin at page 19. The Court held that once a right to indemnification vests, it may not thereafter be rescinded by an amendment to the operating agreement. See Branin at page 18.
The Court, however, reinforced the concept that the terms of the agreement will govern and chose to not grant Branin’s motion for judgment on the pleadings, as there was a question of fact regarding whether Branin had satisfied all of the requirements of the Original Indemnification clause in the Operating Agreement. In this case, the full text of the Original Indemnification included the requirements that a potential indemnitee have acted “in good faith on behalf of [SRIC] and, as applicable, in a manner reasonably believed to be within the scope of the authority conferred on [him] by this agreement.” Therefore, Branin must still prove that he acted in good faith and within the scope of his authority in order to have a successful indemnification claim.
Although this case concerns a limited liability company and not a corporation, the concepts and reasoning behind the Court’s decision will likely be applied to claims under indemnification provisions of by-laws in the same way as it was applied to operating agreements here. For this reason, it is important for all companies to note that while the specific restrictions and carve-outs of an indemnification provision will be applied to the facts of a claim, such indemnification provision may not be amended in order to avoid liability if the right to indemnification has already vested pursuant to the terms of such indemnification provision.
For questions or additional information, please contact Ariel Yehezkel (212-634-3064), Thomas Michael (212-634-3055) or your usual Sheppard Mullin contact.
What You Should Consider When Starting A Solo Law Practice
In this episode of New Solo, Adriana Linares interviews Reba Nance and Bill Gibson, two experts in the field of law practice management, about what steps lawyers can take in the beginning of their solo practice to optimize their chance of success. Nance recommends several bank accounts with clear paper trails that are reconciled regularly, acquiring malpractice insurance even if the state does not require it, and not taking shortcuts when pressured by clients. Gibson encourages lawyers who have newly gone solo to seek help and talk to a CPA, pay taxes and automate their payroll systems, and not overlook general liability and workers comp insurance. Both practice management experts highly advise any lawyer to carefully read the professional conduct rules and ethical regulations of each state. Starting a new practice is difficult; no lawyer should be afraid to ask for help.
Reba Nance is a law practice and risk management manager of the Colorado Bar Association. In addition to being a frequent presenter on topics such as legal technology and malpractice prevention, she is the first female chair of the ABA tech show.
Bill Gibson has practiced personal injury litigation in Portland, OR since 1979. Working as a full-time neutral since 2000, he has also written several books on law practice management including one of the latest ABA books called Flying Solo.
Special thanks to our sponsor, Solo Practice University.
Source: http://legaltalknetwork.com/podcasts/new-solo/2014/07/consider-starting-solo-law-practice
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Protip: Don't Screw With Old Folks
When the unit arrived at the Macons' home, two weeks before Merien's arrest, officers had two outstanding warrants for couple's son, Derrick Macon, then 50, including one for child support. Officers insisted they be allowed into the home, William Macon said.
Because the officers did not have a search warrant, William Macon refused, he said.
William Macon, 83 years old, wasn't to be easily pushed. You gotta love tough old birds. And before anyone gets all bent out of shape about his "derelict" deadbeat son, it turns out that while the team knew all about the outstanding warrants for child support, they somehow missed the order holding that he wasn't the father of the child. But let's not have facts impair a good story.
When the deputies saw Merien drive up to the back of the home, they approached with guns drawn — one pointed at her head as she sat in the car — and pressed her about her son's whereabouts, according to the lawsuit.
"I was really surprised when they walked up with their guns," Merien Macon, a retired clerical worker, said last week. "I was scared. I was shocked. I was surprised."
Macon, who had dropped off her son earlier, told them she didn't know where he was and she did not want to answer questions, [Macon's lawyer, Elizabeth] Kaveny said.
And so the deputies, duly chastised by their overly violent conduct frightening a nice old woman, apologized profusely and left her in peace outraged by her refusal to do as they commanded, decided to teach an old woman a lesson.
At that point, Merien Macon became upset and told the officers she would not speak to them. The officers handcuffed, frisked and arrested Merien Macon on a charge of obstruction of justice.
The officers then took her to a nearby parking lot, where they gave her a phone and told her to call her son and find out where he was.
Merien's husband, William, a retired electrician, called that "a hostage situation," attempting to trade off his wife for his son. The sheriff's office claimed that was not at all the case, and they were just being thoughtful.
The sheriff's office denied attempting to pressure Macon to call her son and said she was moved to the parking lot because her husband had become upset and neighbors were starting to gather.
They didn't want to upset old William by forcing him to watch her cuffed, frisked and with guns pointed at his wife's head. A very sensitive gesture in law enforcement, likely to win a medal at some point.
The Macons sued for what was done to Merien.
Merien Macon was charged with felony obstruction of justice, leading her to file a lawsuit against Sheriff Tom Dart and the officers involved. A Cook County jury recently sided with her, awarding Macon $327,500 and agreeing with her husband that what happened that afternoon went too far.
Frankly, that's a very healthy award, give that most plaintiffs in her situation could hope for a fraction of that at best. But then, picture a jury hearing the testimony in this case, looking at the 77-year-old woman and her loving 83-year-old husband, and pondering the cuffs on her wrists, the hands on her body, the gun at her head, all over a mistaken child support warrant. It doesn't get more sympathetic than this.
"I've seen this type of thing over and over and over," William Macon said. "But when it happens to you it becomes more personal."
Truth. Unless you happen to be knowledgeable about your rights, have the guts to assert them with a gun pointed at your head and, purely by happenstance, a couple of cool codgers, chances aren't good you would end up with a verdict of this magnitude. This makes it an exceptionally good reason to both applaud the Macons, and to care a whole lot about when things like this happen "over and over and over." Because next time it could be you, and it will, without question, become "more personal."
H/T Spencer Neal
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Source: http://blog.simplejustice.us/2013/07/13/protip-dont-screw-with-old-folks.aspx?ref=rss
Thousands of Electronic Case Files Lost in Transition
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An Interesting Way To Smuggle Opiates Into Jail
Regular Juice readers know about the various ways people smuggle things into jail, many of which are NSFW. This is a new one on The Juice. As reported by the Pinellas County Sheriff’s Office (Florida):
Deputies have arrested a Trinity woman after she concealed suboxone strips behind stamps on envelopes and mailed them to two inmates at the Pinellas County. The inmates in turn distributed and sold the controlled substance to other Pinellas County Jail inmates. Since the investigation began on August 1, 2013, deputies intercepted a total of 11 pieces of mail containing the opiate.
Pretty clever. Suboxone is also known as “heroin in a breath strip.” These folks had quite a business going, what with each stamp selling for $20. You can read more, and see the mug shot of smuggler here.
Source: http://rss.justia.com/~r/LegalJuiceCom/~3/5LAGg48K9eY/dfdfg.html
Tuesday, August 26, 2014
Delaware Court of Chancery Underscores Heightened Pleading Standard Necessary to Support a Claim for Breach of Fiduciary Duty In Connection With a Merger
In Houseman v. Sagerman, C.A. No. 8898-VCG, 2014 WL 1478511 (Del. Ch. Apr. 16, 2014), the Delaware Court of Chancery (Glasscock, V.C.) granted, in part, a motion to dismiss filed by certain directors and the financial advisor of Universata, Inc. (“Universata” or the “Company”) arising out of the Company’s merger with HealthPort Technologies, LLC (“HealthPort”). The Court’s analysis serves as a reminder that a stockholder plaintiff must plead an “extreme set of facts” to support a claim for breach of fiduciary duty against a corporation’s directors arising out of allegations that the directors breached their duty of loyalty as a result of the process used to approve a strategic transaction. Although the allegations suggested that Universata’s board of directors (the “Board”) did not conduct a “perfect” process, plaintiffs did not plead facts sufficient to show that the Board “utterly failed to undertake any action to obtain the best price for stockholders.” As a result, the Court dismissed plaintiffs’ claim for breach of fiduciary duty.
Universata was a Delaware corporation focused on providing services with respect to medical records for hospitals and clinics. In 2006, plaintiffs sold a previous business known as Med-Legal, Inc. to Universata and obtained shares in the Company and put rights to those shares whereby a director of the Company, Thomas Whittington, committed to repurchase plaintiffs’ shares pursuant to the put rights.
In 2010, HealthPort approached Universata regarding a potential acquisition. In response to HealthPort’s indication of interest, the Board consulted with its legal advisors and with KeyBanc Capital Markets, Inc. (“KeyBanc”), which it hired as its financial advisor. Due to expense, the Board limited KeyBanc’s engagement to assisting in diligence and identifying additional parties with an interest in acquiring the Company. Notably, the Board did not request that KeyBanc prepare a fairness opinion on the proposed transaction.
In May 2011, the Board approved an Agreement and Plan of Merger between Universata and HealthPort. As a result of the merger, the stockholders of Universata would receive $1.02 per share. In addition the stockholders of Universata would receive stock in a new corporation known as “TechCo” created to hold a patent previously held by Universata. At the meeting approving the merger, KeyBanc advisors informally gave the opinion that the merger price was within the range of reasonableness. Because the directors who approved the merger collectively held a majority ownership interest in the Company, the Board did not solicit a stockholder vote to approve the transaction. Nevertheless, at the same time as the Board approved the merger, it amended a previous equity incentive plan to treat all outstanding stock options like outstanding shares upon a change in control. In addition, the Board voted to vest all outstanding “in the money” warrants for the purchase of shares in the Company.
Plaintiffs, who were a director of the Company and his wife, approved the letter of intent with HealthPort, but did not vote or execute a consent in favor of the merger. Two years after the merger closed, plaintiffs filed a verified complaint against certain directors of Universata and against KeyBanc asserting causes of action for (i) breach of fiduciary duty against the director defendants; (ii) an accounting against director Whittington; (iii) quasi-appraisal against Universata and the director defendants; (iv) aiding and abetting a breach of fiduciary duty against KeyBanc; and (v) for failing to obtain consideration for alleged “litigation assets.” Defendants moved to dismiss.
The Chancery Court denied defendants’ motion to dismiss the accounting claim. With respect to the other claims, the Court granted, in part, and denied, in part, defendants’ motion to dismiss.
Plaintiffs’ breach of fiduciary duty claim was premised on the allegation that the director defendants acted in bad faith by “knowingly and completely fail[ing] to undertake their responsibilities” to maximize shareholder value. Nevertheless, the Court noted that the directors satisfied their duty of loyalty by acting on the advice of legal counsel and hiring KeyBanc as their financial advisor. Moreover, the directors were entitled to decide that the expense of obtaining a fairness opinion outweighed its benefits. The allegations in the complaint showed that Board considered bids from several interested parties, negotiated with HealthPort regarding the deal terms, and ultimately obtained from HealthPort “everything that [the Board] felt [it] could get.” Plaintiffs failed to allege any facts to show that the directors had a motive to act in “bad faith.” To the contrary, the Court observed, the directors had a personal financial interest in obtaining the best deal possible, in alignment with the company’s public stockholders. Accordingly, the Court granted defendants’ motion to dismiss plaintiffs’ cause of action for breach of fiduciary duty.
The Court also dismissed the cause of action for aiding and abetting breach of fiduciary duty against KeyBanc. It found that there were no allegations that KeyBanc actively concealed information from the Board. In addition, KeyBanc did not aid or abet the Board’s alleged breach of fiduciary duty as a result of providing “limited services.” Boiled to its essence, plaintiffs were arguing that “an investment bank must provide all or none of the financial services it offers in valuing and marketing a company.” The Court disagreed and recognized that “Revlon makes clear that there is no single way to sell a company — no single financial service is required.” Accordingly, the Court dismissed plaintiffs’ aiding and abetting a breach of fiduciary duty claim.
The decision in Houseman confirms that stockholders face a high pleading burden when challenging a disinterested board’s decision to approve a strategic transaction. Although the Court recognized that the Board’s process was “less than optimal,” plaintiffs’ allegations could state a claim only for a violation of the fiduciary duty of care. The board’s decision to proceed with the transaction despite several procedural deficiencies did not amount to an “extreme set of facts” sufficient to support a claim for breach of the duty of loyalty.
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What Monkey Selfies, Elephant Art, Catchphrases and DNA Have in Common
Burwell v. Hobby Lobby: Religion, Contraception, and Regulation
Emily Martin is the Vice President and General Counsel at the National Women's Law Center, where she undertakes cross-cutting projects addressing women's health, economic security, and education and employment opportunities. Prior to joining the Center, Ms. Martin served as Deputy Director of the Women's Rights Project at the American Civil Liberties Union and served as a law clerk for Senior Judge Wilfred Feinberg of the U.S. Court of Appeals for the Second Circuit and Judge T.S. Ellis, III, of the Eastern District of Virginia. She has served as Vice President and President of the Fair Housing Justice Center, a non-profit organization in New York City.
Elizabeth Slattery is a senior legal policy analyst in The Heritage Foundation's Edwin Meese III Center for Legal and Judicial Studies. She researches a variety of issues such as the rule of law, the First Amendment, civil rights and equal protection, and the scope of constitutional provisions. Ms. Slattery also studies and writes about cases before the Supreme Court, judicial nominations, and the proper role of the courts. She manages the Meese Center's appellate advocacy programs, including moot court sessions to prepare litigators for oral argument before the Supreme Court. Ms. Slattery's analysis and commentary have appeared in The Washington Times and The Washington Examiner, as well as outlets including National Review Online, The Daily Signal, The Daily Caller and U.S. News and World Report.
Special thanks to our sponsor, Clio.
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Federal judge rules Florida same-sex marriage ban unconstitutional
LawBiz® Legal Pad: What Are Clients Looking For Anyway?
Ed talks about lawyers who provide solutions and who communicate effectively and often with their clients.
Source: http://feeds.lexblog.com/~r/LawBizBlog/~3/phF8NiBJ0pc/
LawBiz® Legal Pad: Tips for Increased Revenue
Ed offers 5 ways to increase your law firm’s revenue.
1. Emphasize collections.
2. Hire lateral lawyers to meet specific demands, a new practice area, a new need.
3. Leverage technology.
4. Create a cooperative compensation model that emphasizes the law firm as an institution.
5. Outsource functions that are better done by others. Delegate.
Source: http://feeds.lexblog.com/~r/LawBizBlog/~3/2cO-Ajtv738/