“To protect ourselves and the businesses we oversee, the way we govern absolutely must change,” says Gerald M. Czarnecki, governance expert, in the latest edition of NACD Directorship magazine, a publication of the National Association of Corporate Directors.

The current model — where the board as a whole, the audit committee, or even the risk committee has general oversight of cyber threats — is no longer adequate, he writes. Cybersecurity and technology risks require a much-higher degree of specialized focus — the same level of focus and commitment allotted to financial controls. Czarnecki proposes that a fourth standing committee devoted to data security and technology become part of every public and private company’s board structure.

NACD Directorship magazine is an exclusive benefit of membership in the National Association of Corporate Directors (NACD), but anyone may download the complimentary copy of the magazine.

Download the report.

A China-centric written contract is an effective tool for doing businesses in or with China, explains Steve Dickinson of Harris Moure in an article published on the China Law Blog.

“A first step in creating this effective tool is to carefully follow the rules for execution,” the explains. “Chinese courts are bureaucratic and formalistic. Make use of that tendency so that you can prevail. Don’t blunt the edge of your instrument with sloppy execution procedures. A casual approach to execution is neither appropriate nor effective for China. A failure to follow China contract law formalities can lead to a Chinese court not enforcing your contract.”

“Chinese courts are hyper-technical when working with written documents. If there is any surface flaw, a party will object to the authenticity of the document and then force the party offering the document to prove its authenticity,” he writes in the article.

Read the article.

Chris Brown, founder of Kansas City law firm Venture Legal, offers seven quick factors to review in every contract to help you protect your interests.

In the article published on SiliconPrairieNews.com, he starts his discussion with the importance of properly naming the parties. “The first thing you need to do is make sure the parties are identified correctly. If you are a business, then make sure you are signing the contract on behalf of the business and not yourself individually.”

He continues the discussion with the issues of naming the parties, obligations, payment terms, termination rights, intellectual property, confidentiality, and miscellaneous terms.

Read the article.

In a new article on Lexology.com, Jonathan Reich of Womble Carlyle Sandridge & Rice LLP discusses the difference between an insurance policy with a deductible compared to one with a self insured retention (“SIR”) and how that impacts business contracts.

“Deductibles and SIRs are often conflated; the differences are poorly understood by those outside of the insurance industry as well as the practical implications,” he writes. “Two policies can have a $1 million limit, with the only difference between the two policies being that one has a $100,000 deductible and the other a $100,000 SIR.”

He explains the differences, but adds that these simple distinctions have stark real-world implications.

Read the article.

The International Franchise Association (IFA) has selected Philip Zeidman of DLA Piper as the first recipient of the Dennis Wieczorek Free Enterprise Award.

In February, the IFA Board of Directors voted to reinstitute the IFA Free Enterprise Award and rename it in honor of the late Dennis Wieczorek, IFA’s former general counsel and chair of DLA Piper’s Franchise and Distribution practice. Zeidman will receive the award during the IFA Annual Convention, February 20-23, in San Antonio. He had earlier received the William Rosenberg Award for the IFA Educational Foundation, and the Burton Award for Legal Achievement (American Bar Association/Library of Congress)

“Philip Zeidman’s enormous contributions to the principles of free enterprise, through his efforts to promote and foster the franchise model in the United States and around the world, have helped to make franchising the force it is today,” said IFA chair Melanie Bergeron. “We are proud to present this award to Philip Zeidman, who also happens to have been a close friend and colleague of Dennis Wieczorek,”

In a release, the firm said:

In addition to serving as IFA’s general counsel for virtually his entire career, Zeidman has engaged in a transactional practice, testified about franchising before government bodies, participated in judicial and administrative proceedings, taught at universities and appeared before business and professional groups in 35 countries. In addition, he has testified before the Commission of the European Union as well as before numerous US congressional committees, and advised several international governmental organizations.

“We are extremely proud that Phil is the recipient of this award – especially as it honors our late friend and colleague Dennis Wieczorek,” said Rich Greenstein, chair of DLA Piper’s Franchise and Distribution practice. “Phil’s tremendous career has taken him around the globe, and his efforts honor the strong traditions Dennis helped establish.”

Zeidman’s work within the IFA community to promote education and best practices began with planning the first Legal Symposium while still in government service. He has contributed countless publications, presentations and seminars on franchising, international distribution and licensing at IFA, American Bar Association and International Bar Association events. His government service included posts as General Counsel to the Small Business Administration and Special Assistant to the Vice President of the United States.

In 2013 Who’s Who named Zeidman Global Franchise Lawyer of the Year for the ninth consecutive year, every year the award had been given, reporting that he “received more votes from clients and peers than any other individual worldwide.” Best Lawyers selected Zeidman as a 2016 ‘Best Lawyer’ in America in the franchise law category. In 2015 Franchise Times magazine named Zeidman as a Legal Eagle and Chambers Global has ranked Zeidman for his leading practice every year since franchising has been ranked by the publication.

Prominent trial lawyer Charla Aldous of Dallas’ Aldous\Walker has been named one of 22 recipients of Texas Lawyer newspaper’s 2015 Lifetime Achievement Award. The honorees are described by the legal news publication as lawyers “who have made their mark on the legal profession in the Lone Star State.”

She also was named recently to the Board of Trustees for Austin College in Sherman, where she earned a B.A. in 1982. The Board of Trustees is responsible for all operations of the college located in Sherman. Aldous is recognized among the school’s Distinguished Alumni.

“I am so honored to be able to serve Austin College, the place that set me on the path I’m on today,” she says. “And I will always be grateful.”

In addition to the Texas Lawyer and Austin College recognitions, the publishers of D CEO magazine named her as one of only six personal injury lawyers recognized in the Dallas 500, the inaugural publication devoted to the city’s top business leaders from various industries. The list was compiled by D CEO after more than a year of research that included a review of corporate rankings, input from industry experts and analysts, and a final analysis by the publication’s editors.

In a profile story, Texas Lawyer notes Aldous’ history of commitment to underdogs facing long odds. Among the clients she has championed are:

• A group of 176 North Carolina residents challenging oil giant Conoco over water contamination;
• A whistleblowing physician alleging billing fraud at Parkland Hospital;
• A Muslim physician claiming discrimination by the University of Texas Southwestern Medical School, and;
• Dallas nurse Nina Pham, one of Time magazine’s 2014 People of the Year. Ms. Pham says Texas Health Resources ignored warnings about the Ebola virus and contributed to her contracting the disease from Thomas Duncan, the first U.S. patient to die of Ebola.

“My office rarely lets me meet with new clients, because I want to represent them all,” Ms. Aldous told Texas Lawyer. “They limit me to two crusade cases at a time where we know we’re not going to make any money.”

In a release, the firm said Aldous has tried nearly 200 cases, a record that has earned her admission to the highly selective Inner Circle of Advocates. She is one of only six Texas lawyers among the 100 active members and was the fourth woman admitted.

Aldous\Walker represents clients in general civil litigation, personal injury, medical malpractice, products liability and wrongful death lawsuits.

As the year comes to a close, many software publishers and trade associations with calendar year accounting are resolving as many outstanding software audits as possible, writes Keli Johnson Swan in the Software Audit Blog on the website of Scott & Scott. Companies currently engaged in a software audit may be able to negotiate favorable resolutions to their audit matters.

The following are a few tips to reach an amicable resolution by the end of the year:

1) Finalize audit results and locate entitlement information. In many instances, smaller companies that are targets of software audits have trouble dedicating resources to quickly audit its network and obtain proof of purchase documentation. However, if a company is interested in a quick resolution, it may be advantageous to dedicate the necessary resources to finalize the audit now in order to potentially settle by the end of the year.

2) Formulate a settlement strategy. If a company is unable to locate the proof of purchase documentation for all of its software, it will likely be required to pay a penalty for any deficiencies in order to obtain a release of liability from the auditing entity. Once a company receives a settlement demand for the copyright infringement damages, it is important to formulate a strategy with the necessary officers or shareholders in order to enter into negotiations with the auditing entity. Agreeing upon a settlement strategy facilitates negotiations and streamlines the process to reach a quicker resolution.

3) Do not compromise on key issues simply to settle by December 31st. Often software publishers encourage targeted companies to reach a resolution by the end of the year, and may offer purportedly discounted settlement payments. However, it is important to look closely at the terms and the settlement payment in order to avoid agreeing to unfavorable settlement provisions. Some companies chose to forego a confidentiality provision in order to save money on the settlement payment. Often these companies are surprised and dismayed when a press release is issued by the auditing entity, disclosing the terms of settlement and naming the company.

Negotiating a settlement is an important process and it is critical to understand the terms of the agreement. If in doubt, contact an attorney experienced in software licensing and copyright infringement matters.

A contract manager’s role involves an enormous amount of relationship building as well as highly developed problem solving skills, ContractRoom says in an article on its website.

“Organizational skills are also required but advances in technology have meant that contract managers can relax a little as software can be programmed to guide them at each stage of the process. This means key deliverables can be met and all processes and procedures can be complied with without contract managers having to rely solely on their memories or manual organizational abilities,” according to the article.

The article outlines principles of relationship management, problem solving and organizational skills.

Read the article.

Kennedy Law L.L.P. opened its second Texas office in Houston on Nov. 1, 2015.

The new office is at 363 North Sam Houston Parkway E, Suite 1100, Houston, TX 77060. The Dallas office remains at 1445 Ross Avenue, Suite 4950,  Dallas, TX 75202.

The firm also announced that Robin Foret has joined the firm as a partner in the Houston office. She has 23-years’ experience in the area of employment lawyer and is board certified in labor & employment law by the Texas Board of Legal Specialization.

In addition, David Ritter has joined the Dallas office as a partner. He has 20-years’ experience representing corporate and individuals in the area of business bankruptcy and business litigation.

A contract between an executive and an employer does not always have to be in writing, writes Jason M. Knott of Zuckerman Spaeder in an article published on Lexology.com.

“Sometimes, employees can enforce oral promises,” he writes. “Agreements can also be implied based on the parties’ conduct, even when no one made a promise, either in writing or orally.”

He discusses a ruling in a Third U.S. Court of Appeals case, Steudtner v. Duane Reade, Inc., to shows that contracts that aren’t in writing can be much harder to enforce.

Read the article.

When conditions are encountered on a construction project that are contrary to the information provided to bidders, the parties’ contract should provide a roadmap for how the parties ought to proceed, writes Timothy W. Gordon, a partner in Holland & Hart, in an article published on Lexology.com. When the parties’ contract is silent on the issue, the price of contracting increases, uncertainty arises, and the likelihood of disputes increases.

His article includes sections titled:

• Why Have A Differing Site Conditions Clause?
• What If There Is No Differing Site Conditions Clause?
• What About Public Projects?
• What About Exculpatory Clauses?

Read the article.

Akerman LLP, a top 100 U.S. law firm serving clients across the Americas, announced the advent of the Akerman Data Law Center, a technology-driven, data privacy and security law service offering developed in collaboration with Thomson Reuters Legal Managed Services.

In a release, the firm said the “Akerman Data Law Center will provide tailored research, multi-jurisdictional surveys and regulatory gap analyses in a wide array of data and privacy risk areas empowering clients to quickly and cost-effectively understand and handle routine compliance matters while mitigating risks before they become crises. With Akerman’s multi-disciplinary team of regulatory compliance and data law lawyers within reach, the firm can also provide legal interpretation and day-to-day counseling specifically tailored to each client’s distinctive situation and needs.”

Read more about the service.

Culhane Meadows PLLC, one of the nation’s largest cloud-based law firms, announces expansion into Houston along with the addition of nine lateral partners to support further growth of its technology, corporate, finance, international, real estate, tax and general business law practices in Texas.

The new lateral partners are Jonathan K. Hustis, Ajay Mago, Brent R. Somers, Gordon P. Williams, Jr. (Chuck), and James L. Young (all based out of the Dallas office, with Mr. Mago also practicing out of the Chicago office), along with Alicia L. Goodrow, Michelle D. Nickel, and Cliff Simpson (opening the Houston office), and Kristen Geyer (Austin). Mr. Mago joins the firm directly from Duane Morris LLP, and the other eight partners moved over from Phillips & Reiter PLLC.

In a release, the firm said Culhane Meadows continues to attract experienced, entrepreneurial business attorneys from distinguished organizations who are drawn to the firm’s innovative business platform.

“My colleagues and I considered a number of ‘new generation’ law firms as we contemplated our options for a lateral move,” explains Alicia Goodrow. “Ultimately, Culhane Meadows made it an easy decision because all of us were immediately impressed by the genuinely collaborative environment, the cutting-edge technology platform, and the exceptional caliber of partners who are available to serve our clients.”

Started by a group of former Big Law attorneys, some of whom had worked together for more than 15 years, Culhane Meadows now has attorneys based in seven major U.S. business markets: Atlanta, Austin, Chicago, Dallas, Houston, New York, and Washington DC. Unlike traditional law firms, Culhane Meadows does not employ any associates, and every lawyer is a partner with substantial experience at large national and international law firms or in-house legal departments of respected companies. The firm also utilizes a platform that leverages modern technology and cloud-based commuting.

The release continues:

Jon Hustis identifies the firm’s use of strong technology to drive collaboration, collegiality, and efficiency as a key factor that sets the firm apart from other cloud-based legal service providers. “Culhane Meadows provides a truly collaborative partnership balanced with a business model that relies on innovation to eliminate wasteful overhead typical of many traditional firms,” Hustis explains. “The firm’s commitment to delighting clients with prompt and excellent service at a very efficient price-point, and the growing bench of experienced counsel with diverse backgrounds made it a very attractive fit.”

Brent Somers points to the warm welcome he and his colleagues have received as confirmation of their decision to join the firm, noting that “Culhane Meadows has fully delivered on its promise to provide a better way to practice law.” He adds: “Who knew the practice of law could be this gratifying and this much fun?”

Ajay Mago says his clients’ feedback says it all. “Having spent nearly decade at Jones Day and Mayer Brown, my clients recognize and appreciate Culhane Meadows as the legal industry’s response to their changing needs,” he explains. “Business clients are savvy and they are discovering how to benefit from sophisticated Big Firm expertise without the legacy overhead of expensive offices and legions of untrained associates who train on the client’s dime.”

“This has been our quickest and largest multi-attorney expansion,” says Grant Walsh, one of the founding partners. “It has been a whirlwind of excitement and hard work, but we feel incredibly honored that so many amazing and talented attorneys have decided to make Culhane Meadows their professional home.”

Three attorneys from the Texas-based family law boutique Orsinger, Nelson, Downing & Anderson, LLP, have been selected by the editors of D CEO magazine for the inaugural edition of the Dallas 500, which recognizes “the most powerful business leaders in Dallas-Fort Worth” in various professional categories.

Name partners R. Scott Downing and Keith Nelson were among the group of 12 family law attorneys selected to the list. Also honored was former state District Judge Marilea Lewis, who was selected to the list prior to joining the firm in October.

The selection of the Dallas 500 honorees was the culmination of more than a year of interviews and extensive research by D CEO editors. The publication features executives in more than 60 industries and business categories.

Downing is a litigator who has represented numerous family law clients in complex high-dollar property and custody cases. He has earned recognition in Texas Super Lawyers’; Top 100 Lawyers in Texas; D Magazine’s Best Lawyers in Dallas; and The Best Lawyers in America.

Nelson is an attorney with more than 30 years of experience in divorce and custody litigation. He also has been selected among the Best Lawyers in Dallas by D Magazine; Top 100 Lawyers in Texas by Texas Super Lawyers; and The Best Lawyers in America.

Lewis served two terms as judge of the 330^th Family District Court in Dallas from 2002 to 2010 after serving as the court’s Associate Judge from 1992 to 2002. Like Downing and Nelson, she also has earned recognition among the Best Lawyers in Dallas in D Magazine, Texas Super Lawyers and The Best Lawyers in America.

With 16 lawyers and offices in Dallas, San Antonio and Frisco, Texas, Orsinger, Nelson, Downing & Anderson, LLP, is one of the largest firms in Texas focused solely on trials and appeals in family law cases. Four partners are Top 100 Texas Super Lawyers. Every firm partner is a member of the Texas Academy of Family Law Specialists and all are Board Certified in Family Law by the Texas Board of Legal Specialization. Orsinger holds additional board certification in Civil Appellate Law.

Economic uncertainty, increased regulatory scrutiny and the rise of Big Data are just a few realities disrupting business as usual. How are innovative corporations managing the legal challenges of a new highly cost-sensitive, minutely examined and digitally connected world? According to Jason Parkman, CEO of Mitratech, the leading provider of Enterprise Legal Management (ELM) solutions, they are turning their legal departments into their organizations’ best-run business units.

In his new White Paper “10 Ways to Transform Your Legal Department,” Parkman provides the blueprint to evolve a legal department from a cost center to a revenue-generating micro-business. Parkman instructs general counsels how to take charge of corporate and legal data through analytics, integrated technology and software, strategic and global thinking, impactful training, and purposeful collaboration among business units. Parkman points out one particular game-changer his company has witnessed recently: Legal departments employing a director of legal operations focused on operational excellence and with an understanding of business, technology and law are achieving increased performance.

Parkman concludes that legal departments function best when lawyers are allowed to practice law rather than become mired in redundant tasks better left to automation.

Download the white paper.

A Dallas County jury has returned an actual damages verdict totaling more than $5.45 million in favor of local investment firms Gerritsen Beach Investments Ltd. and SSST Riviera Investments Ltd. after finding that Dallas-based Southwest Securities Inc. conspired to defraud investors and lenders out of millions of dollars between 2005 and 2010.

On Nov. 11, jurors in Judge Bonnie Lee Goldstein’s 44th Judicial District Court found that real estate developer Stephen Jemal conspired with Southwest to defraud the two Texas partnerships by misrepresenting the value of his Southwest holdings. The verdict also allows the plaintiffs to seek millions in attorneys’ fees, prejudgment interest, and costs, according to a release from the plaintiffs’ law firm.

“Mr. Jemal’s scheme relied on fake brokerage account statements that purported to show he owned tens of millions of dollars in blue chip stocks at Southwest,” says attorney Joel Reese of Dallas-based Reese Gordon Marketos LLP, who, along with partner Adam Sanderson, represented Gerritsen Beach and Riviera. “Lenders and investors, like our clients, relied on those fake statements, which were all tied to real accounts at Southwest.”

Trial evidence showed that Southwest provided easily altered brokerage statements that Jemal then used to deceive lenders and investors. Witnesses testified that Southwest assisted in the deception by lying about the value of the accounts, the firm reports.

“After five years of hard-fought litigation, our clients are pleased to finally receive justice,” says Reese. “Considering all the witness testimony and the incriminating documents, Southwest should have expected this result.”

Southwest recently was acquired by Dallas’ Hilltop Holdings Inc. and renamed as Hilltop Securities. The case is Gerritsen Beach Investments Ltd., et al. v. Southwest Securities Inc., et al., No. 10-10673.

As China’s big banks expand in the U.S., they are testing how far U.S. judges can go in demanding account records located in China, The Wall Street Journal reports.

“In a closely watched case, Kering SA’s Gucci and its other luxury brands allege that some of their most troublesome counterfeiters have accounts with Bank of China Ltd. and have issued subpoenas for information about their transactions,” report Nicole Hong and Lingling Wei.

The Bank of China has responded that turning over account records would violate Chinese law.

Read the article.

Above the Law examines a recent malpractice verdict against Andrews Kurth that carries a $200 million jolt for the Texas firm.

“The proposed order seeks an award of more than $196 million in actual damages, $20.7 million in prejudgment interest, and an additional sum, to be determined, in postjudgment interest.” David Lat reports in the blog.

The report offers a reminder to lawyers: “be careful about what you say in those internal emails. You might view them as protected by attorney-client privilege, but if your client ends up suing you, the emails could be discoverable.”

Read the article.

The Los Angeles Times examines the question of whether actor Charlie Sheen faces legal jeopardy if he did not disclose to sex partners that he was HIV-positive. He announced on Tuesday that he tested positive for HIV four years ago.

Los Angeles police told The Times that they have received no complaints against the actor.

“In California, it is against the law for a person to willfully expose others to the human immunodeficiency virus. The crime is punishable by up to eight years in prison,” the paper reports.

Few cases of this type go to trial, but it has happened, according to the report.

Read the article.

Contract terms and purchaser assent to those terms, conditions, intended use and warning information provided with a purchased product are known fertile ground for defending product claims, write Amy Alderfer and Sara Poster in Cozen O’Connor’s Products Liability Prevention & Defense blog.

The authors point out that consumers often turn to the internet to purchase products, particularly during the holiday season. The paper examines the enforceability of online contracts and corresponding reliance upon virtually provided product documentation.

By following the guidelines in the article, the authors write, “manufacturers and sellers can place themselves in a stronger position to successfully enforce the terms and conditions on their websites in court, and hold consumers accountable for having received, reviewed and accepted the warnings and product related information so diligently provided.”

Read the paper.