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ethics

An attorney for a Pennsylvania Supreme Court Justice denies that there was anything improper about personal injury referral fees paid to the judge’s wife, who has also served as his chief aide over much of his time on the bench. Eight law firms are reported to have paid the judge’s wife referral fees; although most of the amounts have not been disclosed, one that was disclosed amounted to $821,000. Legal ethics expert Geoffrey Hazard said the judge “should not have participated in any case involving a firm that had been a source of referral fees for his wife. However, Bruce Ledewitz, professor of law at Duquesne University, said he did not think McCaffery was under an obligation to tell litigants about the referral fees.” An attorney for the judge “said the newspaper had engaged in a ‘slanderous campaign’ to pry into ‘Ms. Rapaport’s legitimate and proper legal business relationships with her colleagues.’” and said the law firm responsible for the large fee noted above had not had a case before the court. [Philadelphia Inquirer via Milan Markovic, Legal Ethics Forum; PhillyMag]

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Ethics roundup

by Walter Olson on June 10, 2013

  • FBI looks at allegations Dallas DA filed fraud suit as favor to donor [Free Beacon]
  • “Suing ex-client for $500K in divorce fees led to disbarment ruling for former bar president” [Virginia; former "titan" of D.C. matrimonial bar, ABA Journal]
  • “Appeals court cuts ‘unconscionable’ estate legal bill from $44M to perhaps $3M” [ABA Journal on Graubard Miller / Alice Lawrence case, earlier]
  • Empirical puzzler: advent of lawyer advertising doesn’t seem to have had the expected fee-reducing effect [Nora Freeman Engstrom, SSRN via LEF] Law firm marketers were all over the Metro-North crash case [Eric Turkewitz]
  • “DOJ Inspector General’s report: US Attorney unlawfully leaked to discredit critic” [of "Fast and Furious" operation; John Steele]
  • “Lawyer accused of bilking real estate investors through false claims of criminal probes takes plea” [New Jersey; ABA Journal]
  • Claim: disciplinary decisions to reinstate errant lawyers should be more guided by experts [Bruce Green and Jane Moriarity, SSRN via LEF]
  • If you find it hard to believe opponents would gin up flimsy “speech-gave-offense” charges against Fifth Circuit Judge Edith Jones, recall the earlier ginned-up (and now mostly forgotten) charges against distinguished appellate judges Dennis Jacobs and Alex Kozinski.

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Lawyer in Apple’s law firm turns out to have been secretly advising and investing in patent-holding entity (repped by Hagens Berman) preparing a legal onslaught against Apple. “Why didn’t Morgan Lewis … see an ethical problem in letting one of its partners invest in a patent troll, especially one specially designed to target one of the firm’s big clients? And how many other big-firm lawyers are entwined with ‘start-ups’ that are actually holding companies, created to attack the very corporations they are supposed to be defending?” [Joe Mullin, Ars Technica via @tedfrank]

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Writing at Capital Research Center’s Labor Watch:

A shocking change in American labor relations is brewing at the U.S. Department of Labor, which is expected sometime soon to alter a major regulation. The change involves a new interpretation of the “advice exemption” of the Labor Management Reporting and Disclosure Act. Specifically, businesses would have to disclose the names of, and fees paid to, attorneys and consultants who advise them on union-organizing activities. In turn, attorneys and consultants providing such advice would be required to disclose their client lists and the fees they receive.

If that sounds like a road map for retaliation and strong-arming, with dangers for traditional attorney-client confidentiality, well, you’re getting the idea. Furchtgott-Roth says the department has evaded regulatory review by low-balling the proposal’s billions of dollars in costs. “The change has no basis in existing law or precedent.”

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Ethics roundup

by Walter Olson on May 22, 2013

  • “Robo-litigation”: ethical issues of the mass-foreclosure mess [Dustin Zachs, SSRN, via Legal Ethics Forum]
  • Roger Parloff on Chevron counterclaims against Patton Boggs [Fortune] “Judge Grudgingly Lets Donziger’s Lawyers Out Of Chevron Case” [Daniel Fisher; Reuters]
  • Should Australia dilute or abolish the “cab rank” rule? [John Flood via LEF]
  • “Ethical Limits on Civil Litigation Advocacy: A Historical Perspective” [Carol Andrews (Alabama), SSRN; Legal Ethics Forum]
  • “When Is a Demand Letter (Arguably) Extortion?” [John Steele, more, ABA Journal (Martin Singer demand letter threatening to expose target's sexual indiscretions]
  • Fifth Circuit denies Dickie Scruggs’s latest appeal [YallPolitics]
  • When crowdfunding meets litigation finance, watch out world [Richard Painter]
  • “Judge Orders Prenda Law Group Beamed Out Into Space” [Lowering the Bar, TechDirt]

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Lawyers roundup

by Walter Olson on March 4, 2013

  • Feds investigating prominent Texas attorney and many-time Overlawyered mentionee Mikal Watts [MySanAntonio via PoL]
  • Florida high court: lawyers not privileged to defame parties during informal witness questioning [Delmonico v. Traynor]
  • Client’s story: not only did attorney try to kill me, he also gave me bad advice [Lowering the Bar]
  • Some lawyers for city of Cleveland seek union representation, following municipal attorneys in S.F., D.C. and Houston [Cleveland Plain Dealer]
  • Watch what you say about lawyers, part CLXXVI [NYLJ, "shakedown"]
  • Former ATLA president Barry Nace fights disciplinary proceeding in W.V. [Chamber-backed WV Record]
  • Minnesota lawyer who billed client for time he spent having sex with her won’t be allowed to practice for more than a year [TheLawNet, earlier on this candidate for "ultimate Overlawyered story"]
  • Should she take the job offer from an apparently unethical attorney? If she has to ask… [Elie Mystal, Above the Law]

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The ultimate Overlawyered story? Minnesota: “An Eagan lawyer is suspended indefinitely after having an affair with a client whom he represented in a divorce, then billing her for time they spent having sex. … At various points, Lowe billed the woman for legal services on the dates of their sexual encounters, coding the time as meetings or drafting memos. … [He] won’t have a chance for reinstatement for at least a year and three months after the decision… by the Minnesota Supreme Court.” [St. Paul Pioneer-Press]

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“A Brooklyn attorney was disbarred Wednesday for a range of misconduct, from fabricating court orders to making misrepresentations to secure third-party litigation funding. … ‘The severe and gross violations committed by the respondent fully merit the special referee’s conclusion that the respondent is “morally corrupt and intellectually bankrupt,”‘ the appellate court wrote in a per curiam opinion.” [Reuters; Mr. Tanella's happier, award-winning days]

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The idea of Interest on Lawyers’ Trust Accounts (IOLTA) programs in California and elsewhere is to skim off tiny sums from clients’ accounts, too small to be worth arguing about (isn’t that what class action theorists are always claiming defendants get away with?) to finance legal representation, sometimes for indigent clients, other times for “cause” litigation, the latter of which results in “a lot of unsuspecting clients funding things they may or may not have believed in.” With interest rates at prolonged lows, however, the sums raised by IOLTA have drooped, and California bar authorities have responded by burying new line items in dues renewals for voluntary levies — which have not, it seems, resulted in the hoped-for flood of lawyer contributions. [Charlotte Allen, L.A. Times](& Legal Ethics Forum)

According to a press release from Feld Entertainment, which owns the Ringling Bros.-Barnum & Bailey circus, the American Society for the Prevention of Cruelty to Animals (ASPCA) has agreed to pay $9.3 million to settle racketeering and other charges arising from alleged litigation abuse in lawsuits beginning in 2000 over elephant welfare. Feld says ASPCA and others paid a plaintiff and fact witness in the case whose testimony a judge described as not credible. It says it intends to continue suing other animal-welfare groups that it has named in connection with the episode, including the Humane Society of the United States, and Fund for Animals, as well as attorneys. [more on circus's side of dispute; earlier here, here, here, here] More: John Steele, Legal Ethics Forum.

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Better sort out the ethical issues first [Edward Siedle, Forbes]

Monroe Freedman lines up Angela Corey’s press conference — in which she spoke of “our precious victims,” talked of having prayed with the Martin family, and suggested that her investigators had established “the facts” and “the truth” regarding the guilt of George Zimmerman — against the code of ethics. Earlier on the prosecution affidavit here [expanded and retitled 8:30 a.m. Apr. 16].

“….except in situations when an honest and straightforward approach will not be effective.” [David Hricik (citing not endorsing), Legal Ethics Forum]

Macaulay on legal ethics

by Walter Olson on December 2, 2011

h/t Sub Specie AEternitatis:

We will not at present inquire whether the doctrine which is held on this subject by English lawyers be or be not agreeable to reason and morality; whether it be right that a man should, with a wig on his head, and a band round his neck, do for a guinea what, without those appendages, he would think it wicked and infamous to do for an empire; whether it be right that, not merely believing but knowing a statement to be true, he should do all that can be done by sophistry, by rhetoric, by solemn asseveration, by indignant exclamation, by gesture, by play of features, by terrifying one honest witness, by perplexing another, to cause a jury to think that statement false.

—Thomas Babington Macaulay, Essay on Francis Bacon

The court said the conflicts between law firm Leeds Morelli and its clients’ interests in the employment case were so “enormous” that they could not be waived by the clients. Ethicist Stephen Gillers calls the ruling a “must read for the legal ethics crowd with jaw dropping allegations“. [ABA Journal, opinions, more documents, earlier coverage] More: Daniel Fisher, Forbes.

…consider this cautionary tale [Brian Tannebaum].

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The St. Petersburg Times explores the ethical issues raised by the practice of a Florida lawyer who “flies his six-seat Piper Malibu around Florida championing the cause of the little guy. His target: the big, bad banks.” The plan: charging upfront fees of up to $5,000, plus a contingency, for the privilege of enrolling in “mass joinder” suits demanding foreclosure relief.

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Paulie unsaturated

by Ron Coleman on July 4, 2011

What better way to pick up that slow DJ business than to hitch a press release to a preposterous trademark infringement claim?  Hint:  It involves an utterly phenomenal battle between intellectual property and journalism in the the New York Post, which no one but the publicity-seeking plaintiff wins.

But first, our story:

“Jersey Shore” star Paul “Pauly D” DelVecchio was slapped with a $4 million trademark infringement lawsuit Thursday from a Connecticut DJ who claimed his business has been ruined by comparisons to the MTV personality.

Paul Lis of South Windsor, Conn., said he spent 40 years building up a reputation as the region’s “DJ Paulie” before DelVecchio began calling himself “DJ Pauly D” on television. . . .

“He formally trademarked [sic] the name ‘DJ Paulie’ and then came the ‘Jersey Shore’ which basically wiped him off the face of the map,” attorney Jose M. Rojas told NewsCore.

The lawsuit alleges that MTV itself flooded the internet with so much “Jersey Shore” content that it was virtually impossible to find Lis’ information or advertise on [sic] his website.

Sounds like rough going all around here — but believe me, it gets worse.  And how much worse can it get?  After all, how can you “ruin” someone who starts out as a “Connecticut DJ”?  What exactly is the up side on that?  Oh, $4 million you say?  Who knew?

Of course, if you were to run a Google search for DJ PAULIE CONNECTICUT — or go crazy and use PAULY — right now… you’d have one heck of an easy time finding him, now that he’s got, not only two turntables and a microphone, but his own lawsuit!

All of which means proving damages should be a snap, right?  Because this year, what with all the search-engine saturation his court filing has got him, Paulie will demonstrate that, best-case scenario, the DJ Paulie gig is a $4M proposition.  And why should MTV deprive DJ Paulie of his best case?  Trademark infringement-wise.

Or is it the other way around?  Because now that sounds like all that infringerating is making things better, not worse.  (Someone write this down:  ”File lawsuit; enhance Google search results.”)  Okay, we’ll let the jury sort that one out.

Well, how about the Post’s explanation of the theory of damages in the first place here?  ”[I]t was virtually impossible to find Lis’ information or advertise on his website.”  That makes it sound as if MTV was even flooding Lis’s website — to the point where you couldn’t even, um, advertise “on it.”

Typo, right?  Well, the fine state of intellectual property journalism in New York is finally hammered home with this beaut later in the article:

Meanwhile, DelVecchio applied for a slew of US patents attempting to copyright his own moniker.

Whoa!  Trademark… copyright … patents … monikers?

If indeed the test for a trademark infringement is a likelihood of confusion — and I’ve always been partial to the argument that it was — then there is definitely a trademark infringement here.  Because after reading this article I, for one, am completely confused.

What a train wreck.  Here the newspaper story about the lawsuit may be even worse than what reads like one pretty bad lawsuit.  Good thing professional journalism is keeping that edge and saving society from that blogging stuff.

The biggest irony?  The article doesn’t even mention the right of publicity — publicity being the the only thing DJ Paulie’s lawsuit definitely got right.

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