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May 15, 2007

Dechert weighs in

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Speaking of lawyers' salaries: Bloomberg News this morning is reporting from London that Philadelphia-based Dechert LLP paid its top-earning partner in London the equivalent of $4.1 million in 2005. The information comes from U.K. corporate filings, which can be found here ($). Bloomberg's Caroline Byrne writes:
"Dechert’s unidentified partner made almost five times more than the average 451,000 pounds earned by its 38 U.K. partners and more than any of its competitors at U.S. firms in London that revealed their top partner’s earnings in 2005 and fiscal 2006.
Byrne reports that the top five firms in terms of European partner compensation are: Dechert, McDermott Will & Emery LLP, DLA Piper LLP, Mayer Brown Rowe & Maw LLP and O’Melveny & Myers LLP. They each paid at least one of their European lawyers more than 1 million pounds in the midst of a mergers and acquisitions boom.

May 24, 2007

Beware of those receipts

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Perhaps we should have seen this one coming: Gerald D. Wells Jr. of Bucks County and Jennifer Ehrheart of Lawrence County have filed a lawsuit in U.S. District Court in Philadelphia accusing the owner of Carrabba’s Italian Grill, a Florida-based chain, of printing too many numbers from their credit card on the receipt for their restaurant tab. That allegedly exposed the Pennsylvania diners to losses from “dumpster divers” and “identity thieves," in violation of the federal Fair and Accurate Credit Transactions Act, which is designed to protect consumers against identity theft. (Download the complaint). The chain owner, OSI Restaurant Partners Inc. of Tampa, which also owns Outback Steakhouse, disclosed the lawsuit in an SEC filing today in conjunction with a $3.18 billion offer from equity firms to take the company private. The lawsuit filed in April seeks unspecified damages and class-action status. There's no reference to actual losses, only to exposure to potential losses or theft. It says Wells and Ehrheart dined at Carrabba's Italian Grills (not clear if they dined together at the same place, or separately at different spots). After they paid with a credit card, they got back a receipt containing more than the last five digits of their cards and the expiration date. That could make them vulnerable to potential identity theft if the printouts are found, the suit claims:
"Many identity thieves, commonly known as 'carders', further their stealthy trade by gleaning information from lost, discarded or stolen credit/debit receipts, including credit card numbers and expiration dates. Some theives, commonly known as 'dumpster divers', sift through trash in search of discarded receipts."

No comment from OSI. The judge is Thomas N. O'Neill Jr. The plaintiff attorneys are listed as Gary F. Lynch of New Castle, Del., and Edward W. Ciolko, Joseph Meltzer and Joseph Weeden of Schiffin Barroway Topas & Kessler LLP in Radnor, Pa.

-- Jonathan Berr and Thomas Ginsberg

May 25, 2007

Next Vioxx?

Two items make us wonder about the road ahead for Avandia, GlaxoSmithKline's diabetes medicine now facing new safety questions. First, firms that organize legal strategy sessions for plaintiff lawyers have snapped into action on Avandia. These meetings offer advice and strategy for suing GSK and, perhaps more importantly, create a forum for big firms to get referrals from little ones. Second, a think tank that opposes excessive litigation against drug companies (among other things) is sounding an alarm about Avandia lawsuits, although it cites mainly a single Reuters story as evidence. To be clear, the question is not whether GSK will get sued, but how it responds and whether the lawsuits will constitute a trickle or a tsunami, as Merck & Co. Inc. faces over Vioxx. Merck has disclosed spending more than $1 billion just on lawyers so far. Should GSK put aside a similar reserve? - Thomas Ginsberg

June 11, 2007

Up in the sky, it's a collateral-debt deal

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Pepper Hamilton LLP says it has hired financial-services specialist Joseph F. Voyticky in New York to help it, among things, handle its growing practice in collateral-debt deals and aircraft financing. The Philly-based firm of 450 attorneys says Voyticky, a senior associate with Allen & Overy LLP, specializes in structured finance, global loans and leveraged finance, and has represented hedge funds, investment banks and commercial banks. Voyticky is a graduate of Ursinus College and Harvard Law. Richard Eckman, chairman of Pepper’s financial services practice group, said the firm looks to Voyticky to beef up its work in ``collateral debt offering transactions, a growing part of our practice, as well as aircraft financings. ...’’ - Chris Mondics


July 24, 2007

You say hack, I say cache

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Bless his heart, Judge Robert F. Kelly Jr. of the Eastern District of Pennsylvania has ruled that rummaging through somebody's private files that had been posted, then taken down from, the Internet without privacy protection is perfectly legal. Not that we were worried, or even knew there was question about it.

But it turns out that Healthcare Advocates Inc. of Philadelphia, which likens itself to "an auto club for health care," had sued the Valley Forge law firm of Harding Earley Follmer & Frailey, alleging that one or some of the firm's lawyers (not clear who) had violated the U.S. Digital Millennium Copyright Act and the U.S. Computer Fraud and Abuse Act by fetching the healthcare company's protected pages using the "Wayback Machine," one of our favorite sites, run by Internet Archive of San Francisco.

(There's a summary of the case and ruling from the The New Jersey Law Journal on Law.com today. We spotted it at McKee's Small Business Blog.)

According to Michael Booth at the Law Journal, Healthcare Advocates had sued Internet Archive and a rival health company with a very similar name to its own, Health Advocate Inc. of Plymouth Meeting, accusing them of stealing trade secrets and failing to properly protect Web pages that Healthcare Advocates no longer wanted to be available for public view. It also sued the rival's law firm, Harding Earley. In 2005 Kelly granted summary judgment in favor of Health Advocate in 2005. But he allowed the claims to proceed separately against the law firm. Internet Archive settled separately last year, terms undisclosed.

Finally last week, Kelly ruled on the charge against Harding Earley, finding that it had been viewing Web pages that "were publicly accessible -- even if mistakenly so -- and that there were no copyright violations," according to Booth. Specifically, Kelly ruled that the law firm could not be held liable for the failure or absence of a special protective file (robot.txt) provided by Internet Archive for firms like Healthcare Advocates seeking to keep their files from being archived.

Interestingly, the Law Journal quotes Healthcare Advocates' lawyer, Scott Christie of Newark's McCarter & English, as being "pleased" that Kelly at least upheld the validity of protective coding like robot.txt. He also hints there will be an appeal to the Third U.S. Circuit Court of Appeals in Philly.

So stay tuned. And until something happens, check out the Wayback Machine.


- Thomas Ginsberg

August 3, 2007

Bill it, and they will come

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Philadelphia has its share of mega law firms with high salaries, international reach and plenty of interesting legal work. So why do recruiters for local law firms face high hurdles in persuading top young graduates to forsake Washington, New York or Los Angeles for Center City?

"So many law students are looking at Washington or New York. New York has a huge draw with its salary levels. We’re sandwiched between Washington and New York,’’ says Sarah Davies, the hiring partner at Cozen O’Connor.

Davies and other recruiters and hiring partners say that once they get young law students to interview in Philadelphia, the odds improve because the students are then able to sample Philadelphia’s thriving nightlife and cultural scene.

Paul Lantieri, who helps supervise the summer internship program at Ballard Spahr Andrews & Ingersoll LLP, says Center City’s revival is persuading more young law students to come here. As a consequence, he says Ballard’s crop of summer interns is geographically more and more diverse.

- Chris Mondics

August 15, 2007

Where are our women?

wonderwoman.JPG We couldn't help but notice that just one Philadelphia law firm made Working Mother Magazine's 2007 list of 50 best law firms. It was Duane Morris LLP. What's with that? Does it takes a certain kind of woman to be a real 'Philadelphia Lawyer'?

- Thomas Ginsberg

September 14, 2007

Villanova's new digs

Sometimes it pays to have local alumni. Philadelphia-based law firm Duane Morris LLP and Villanova Law School alumni at the firm say they will donate more than $530,000 toward construction of a new educational and research building at the law school. The new 174,000-square-foot building will also be used for clinical and pro bono work. The firm says about 30 of its attorneys (out of 600 in the firm) had attended Villanova School of Law. Villanova Law School Dean Mark A. Sargent said the gift would help the school reach its fundraising goal for the building and ``encourage other firms and donors to emulate Duane Morris’ example.’’

- Chris Mondics

September 21, 2007

Biswanger's tale of politics and (alleged) sexism at Cozen

Patricia Biswanger, a lawyer, has filed a lawsuit against Steven Cozen and Patrick O'Connor, her former bosses, that reads like a Scott Turow tale of politics, sexism and egos. (Download the 23-page complaint.) We have no opinion or knowledge of who is right or wrong, correct or incorrect, in the case, which was filed in federal court on Tuesday. There's a long history (scroll down for Gil Spencer item) about the disputes. Still, it's well worth reading just for a hint of the local drama.

In the lawsuit, Biswanger, an accomplished and politically active attorney who formerly worked at the politically influential Philadelphia firm Cozen O'Connor, is accusing the firm of sexual discrimination and retaliatory firing in 2005 stemming from their political activism in Haverford.

Her lawyers write that she was one "among a minority of the firm's lawyers who voluntarily and regularly responded to founding shareholders Steve Cozen's and Pat O'Connor's requests for contributions to the firm's political action committees and designated charities." At the same time, the suit says she has been "heavily involved in politics in Haverford Township for about twenty years. Politics in Haverford is historically contentious."

Indeed, some of the contentiousness has resulted in bribery and theft charges involving others. The lawsuit claims Kenneth A. Clouse, then-President Judge of the Court of Common Pleas for Delaware County, took issue with Biswanger's "activism" and says:

18. In or about the early Spring of 2004, Judge Clouse unsuccessfully attempted to contact Steven Cozen for the purpose of complaining about Plaintiff and demanding that the Firm terminate her. Plaintiff learned about Judge Clouse's plans from a mutual acquaintance and informed Mr. Cozen, then Chairman of the firm, who assured her that she had nothing to worry about, and that if Judge Clouse wanted to "play politics" with him, he would "welcome the challenge." Upon information and belief, Judge Clouse and Mr. Cozen ultimately did not speak about the matter.

19. Later in the spring of 2004, Judge Clouse retained Richard A. Sprague, Esquire, for the purpose of bringing suit against Plaintiff and Andy Lewis, Plaintiff's friend and political ally, to allege that they had defamed him in the course of objecting to his political activities.

20. Mr. Sprague contacted Patrick O'Connor to complain about Plaintiff's political activities, and, upon information and belief, told Mr. O'Connor that if Plaintiff were not fired, he would include the Firm in the suit.

21. Mr. O'Connor instead told Plaintiff that she was henceforward prohibited from using any "Firm resources" in connection with her political activities.

Later, it says Biswanger "thought of the 'preservation of evidence' letter as a prudent litigation move, not a political activity." And it then levels this accusation:

Upon information and belief, Mr. Cozen, Mr. O'Connor and Mr. Berry perceived politically active women as aggressive, overbearing, and unattractive, and therefore a detriment to the Firm. Further, upon information and belief and observation, Mr. Cozen, Mr. O'Connor and Mr. Berry prefer and promote women who fit traditional female stereotypes of being attractive, compliant, and mild-mannered, a standard that is not applied to male attorneys.

33. In contrast, Mr. Cozen, Mr. O'Connor, and Mr. Berry had no objection to the widespread, aggressive, controversial and continuing and/or deepening political involvement of numerous male attorneys at the Firm. To the contrary, they supported the political involvement of the Firm's male attorneys, financially and otherwise, whether the involvement was in local, state or national politics.

It goes on. We've put a call in to Cozen O'Connor, which has not yet filed its response in court.

- Thomas Ginsberg

Biswanger vs. Cozen, Part II

More on Biswanger's lawsuit. Bloomberg News has this response from Cozen O'Connor's lawyer, Abraham Reich, at Fox Rothschild:

"The firm has always followed a fair and objective process for the advancement of all of its lawyers, regardless of gender."

The Legal Intelligencer lays out more of the story here. The short Philadelphia Business Journal story is here.

October 5, 2007

Girard-diCarlo goes. Long live Girard-diCarlo!

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Who's that with Girard-diCarlo?
   
David Girard-diCarlo says he will be stepping down as chairman of Blank Rome LLP by the end of next year. He has been a leader of the city's legal establishment and a major fundraiser for Republican candidates both locally and nationally. Not clear how his move will affect his status and activity. His departure also comes a time when the firm is extending its reach nationally and internationally and targeting higher-end corporate and transactional work.

- Thomas Ginsberg

November 3, 2007

Wyeth's nag

This may be oddest tale yet from the long and already scandalous fen-phen diet drug litigation relentlessly dogging the local drug giant Wyeth (NYSE: WYE) : Hundreds of Kentucky plaintiffs got a $200 million settlment from Wyeth. But their lawyers Shirley Cunningham Jr. and William Gallion allegedly pocketed too much of the money. The plaintiffs sued the lawyers, won and were awarded, among other things, the lawyers' 20 percent stake in champion race-horse Curlin, winner of the Breeders' Cup Classic. Now Curlin is up for sale. So Wyeth's fen-phen users may get their payday, or at least some of it. Can't make this stuff up.

- Thomas Ginsberg

December 11, 2007

Blank 5, Saul 0 in Princeton

Blank Rome L.L.P. has declared it wants to expand its legal services worldwide and open offices to serve major global markets. Evidently that includes Princeton. The Philadelphia-based firm said yesterday it has enticed five lawyers to defect from Saul Ewing L.L.P.'s Princeton office and open a new Blank Rome office there.

Blank Rome says partners John Pribish, Seth Lapidow, Michael Conlan, Adrienne Rogove and Virginia White will focus on general-commercial, environmental, real estate and civil litigation. (Those are all archived links at the Wayback Machine. Saul Ewing already has erased the attorneys from its current live site.)

In its statement, Blank Rome quotes Pribish, the most senior of the group, as saying: "We are excited to be joining Blank Rome at a time when the Firm is in an exciting phase of growth and expansion. We believe that the Firm's expanding national and international platform will enable us to provide greater service to and opportunities for our clients." Not clear which clients the five might be taking with them to Blank Rome.

- Chris Mondics

January 3, 2008

Changing Lanes

Philadelphia commercial real estate lawyer Robert D. Lane Jr. has joined fast-growing Stevens & Lee P.C. to "help build the firm's real estate and project finance practice" around Philadelphia. Lane will reprise his earlier role building similar practices at Morgan Lewis (1998-2005) and Pepper Hamilton (1989-97) before detouring to join onetime Philadelphia GOP mayoral candidate Sam Katz in an attempt to build a Chinese infrastructure development company. The partners had set up deals in Fuzhou and Tianjin, but were unable to convert them into paying propositions, especially after a 2006 Chinese law restricted international joint ventures. Lane said the partners did develop "relationships with major global real estate companies and equity funds," which Lane expects will prove useful in representing corporate tenants in "diverse transactions." Lane's past clients include Albert Einstein Healthcare, Amoco, Forest City, IBM, McDonald's, and Towers Perrin, among others.

- Joseph N. DiStefano

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