A lawyer for Sam and Dee Wyly said Thursday that the tax evasion and tax fraud case brought by the Internal Revenue Service in the Northern District of Texas is nothing more than “a bunch of sound bites” and allegations that are not based in federal tax law, reports The Dallas Morning News.

“The IRS’ lawyer countered that the evidence presented during the past four weeks of an unprecedented billion-dollar bankruptcy trial shows that the Wylys ‘never intended to pay taxes’ on the hundreds of millions of dollars they kept in offshore trusts on the Isle of Man,” the report continues.

The bankruptcy judge hearing the case is expected to take several weeks to rule in the complex bankruptcy trial in which the IRS accused Sam Wyly and Charles Wyly’s widow, Dee Wyly, of tax evasion and fraud and is seeking $2.2 billion in back taxes, fees and penalties.

Read the story.

Stephen Diaco, one of three lawyers accused of setting up a rival’s DUI arrest, was permanently disbarred Thursday by the Florida Supreme Court, reports The Tampa Tribune.

The case began with a civil lawsuit in which Diaco and two other lawyers represented a radio personality who was the defendant in a slander suit. “But during the trial, [the plaintiff’s] lawyer, C. Phillip Campbell, was arrested for DUI. The state bar accused the Diaco firm of orchestrating the arrest by having a paralegal ply Campbell with liquor and then trick him into moving her car when a friend on the Tampa Police Department was waiting to catch him,” The Tribune reports.

The two other lawyers remain temporarily suspended.

Read the article.

A federal jury in New Hampshire ordered Wal-Mart Stores Inc. to pay $31.22 million to a pharmacist who claimed she was fired because of her gender and in retaliation for complaining about safety conditions, Reuters reports.

Maureen McPadden claimed that Wal-Mart used her loss of a pharmacy key as a pretext for firing her in November 2012, when she was 47, after more than 13 years at the retailer.

“McPadden said she was fired in retaliation for her raising concerns that customers at the Wal-Mart store in Seabrook, New Hampshire, where she worked were getting prescriptions filled improperly because of inadequate staff training,” Reuters reports.

Read the article.

As the dreaded packet arrives in the mail from a Bankruptcy Court, many mineral owners are being introduced to the third “B” of the oil business — Boom, Bust, Bankruptcy. Wade Caldwell and Zach Fanucchi of Barton, East & Caldwell in San Antonio offer a quick primer, published on EagleFordForum.com, for mineral owners faced with this situation.

The authors say a mineral owner should usually look at bankruptcy issues in the following order:

• What kind of bankruptcy has been filed?
• What kind of legal relationship do I have with the bankrupt company?
• What can I do in response to the bankruptcy filing?
• How does this affect the royalties I am owed, or that will become due?
• How does this affect my lease?

They explain the different types of bankruptcy, tell mineral owners what they can do in response, describe the complete process, tell how long it can take, and explain how the process can affect a lease and royalties.

Read the article.

Mitratech will present its software solution called “GettingContractsDone” (GCD) in a webinar Feb. 10 at 1 p.m. CST. The company says GCD was designed specifically for busy departments of all sizes seeking to manage contract creation, processing and execution with a powerful, yet easy-to-use and implement, contract management solution.

Organizations that typically select GCD as their contract management solution are:

• Small groups that need a seamless way to receive and work on contracts from any number of business stakeholders
• Legal teams that only need a system for their transactional (non-litigation) matters
• Organizations that require a single system of record to store historical contracts and generate reminders around milestones and renewal dates
• Contract teams that want a way to easily collaborate using a hosted solution

Register for the webinar.

A California lawyer charged with stealing $400,000 from a client —and later suing his client after she complained to state bar authorities — has been sentenced to 30 days in jail after pleading no contest to two felony theft charges, reports The Contra Costa Times.

“On Oct. 27, 2008, Janet Stites’ mother died and left her an inheritance of more than $400,000,” according to the report. “Stites, who is blind, hired an attorney, but on the advice of her friend Richard Stickney, she fired that attorney and hired 56-year-old Concord lawyer Timothy Darden to set up two trusts for her. Within a year, Darden had allegedly swindled $438,000 from Stites and $33,500 from Stickney, and days after they complained to the State Bar of California, he turned around and sued them for fraud.”

Read the article.

Exterro has made available for download the results of a 2016 survey of federal judges and e-discovery lawyers on how judges and attorneys respond to the same e-discovery questions.

“Based on the complexity of today’s “Digital Age,” being undereducated and underprepared is no longer an option,” Exterro says on its website. “However, an expectation gap still exists between what judges expect related to the process of e-discovery and what attorneys think is appropriate. The results from this year’s Federal Judges Survey will give legal professionals an inside look on how judges and attorneys respond to the same e-discovery questions, along with information to improve their pre-trial litigation practices in 2016.”

Survey results cover such topics as the effectiveness of new Federal Rules of Civil Procedure (FRCP), general e-discovery competency in the legal market, and the effects of emerging technology trends on litigation practices.

Download the survey results.

A decade-old oil leak that could last for another century was caused by an “act of God” during a hurricane in the Gulf of Mexico, the president of the company responsible said Wednesday, according to an Associated Press report.

“This event hits home for us,” said Taylor Energy President William Pecue, the last remaining full-time employee at the New Orleans-based company. “This is our community. We live here and it is very special to us.”

The AP said the public meeting at an LSU research center is a requirement of a court settlement that Taylor Energy reached in September with environmental groups, which accused the company of withholding information about the leak.

Read the article.

Buchalter Nemer has created a new Japan Practice Group to provide legal, corporate and transactional advice to businesses and individuals conducting business in Japan as well as Japanese businesses conducting business in the United States. The establishment of the practice coincides with the arrival of Sabina A. Helton and Steven M. Nakasone in the firm’s Los Angeles office. They formerly were with Parker Milliken. Helton will serve as the Group’s Chair.

“Sabina and Steve have provided advice on Japanese legal protocols and business acumen for over three decades and have a deep understanding of Japanese culture and practices,” said Adam J. Bass, President and Chief Executive Officer of Buchalter Nemer. “I’m thrilled to welcome these long-time colleagues to the firm and to see how their expertise enhances our existing client relationships along with forming new ones.”

Helton specializes in commercial litigation, transactional and corporate matters. In her litigation work, she has represented every level of company from start-up to Fortune 100 in a wide range of matters including breach of contract, products liability, employment and others. Her transactional work includes negotiating and drafting various business agreements, including joint venture, manufacturing, sales, purchase, independent contractor, non-disclosure and employment.

In addition to her practice, Helton is the incoming President of the Japanese American Bar Association. Helton served as President Elect in 2015 and has been a Governor since 2003. She is also Co-Chair of the United States Merchant Marine Academy Southern California Parents’ Association.

She earned her J.D. at Hastings College of Law and her Bachelors of Arts in Legal Studies from the University of California, Berkeley.

Nakasone focuses his practice on general corporate and business transactions. With more than 30 years of experience, Nakasone handles transactions involving product distribution, branding, licensing, advertising and promotion. He works in a number of industries including automotive, chemical products, computer hardware and software, robotics, pharmaceuticals, food and restaurants, real estate, machinery and apparel and character merchandise.

Nakasone previously managed the Tokyo office of a major, international law firm. Prior to entering private practice, Nakasone served as the Director of Business and Legal Affairs for The Walt Disney Company Japan.

He earned his J.D. cum laude at Loyola University School of Law and his B.S. in Electrical Engineering and Computer Science at the University of California, Berkeley.

“Our attorneys in this group have extensive experience both living and working in Japan, which helps us provide practical and effective advice while enjoying a highly-respected reputation in the Japanese markets,” Helton said. “The credentials of some of our members –– will be an immense value-add for clients across a number of industries. I look forward to leading this dynamic group in the years to come.”

Even though the number of Foreign Corrupt Practices Act (FCPA) enforcement actions dropped during 2015, there were several significant lessons for the compliance practitioner not only to learn but also to put in place in any corporate anti-corruption compliance regime, writes Thomas Fox in FCPAComplianceReport.com.

He discusses some significant events that occurred last year that he believes portend some of the greatest changes not only to compliance but to FCPA enforcement going forward.

Those events are discussed under these headings: The Yates Memo, DOJ Compliance Counsel, First British DP, FIFA Corruption Scandal, and Volkswagen and the Zeitgeist of Compliance.

Read the article.

National law firm Wilson Elser announces that Jim Perras has joined the firm’s Hartford, CT, office as of counsel.

Perras joins Wilson Elser with more than 18 years of experience working at high levels in the legislative and executive branches in the Connecticut state government.

Perras has advised top legislative leaders and commissioners, first as a senior executive adviser to a former president pro tempore of the Senate and most recently as a legislative and administrative adviser to the commissioner of the Insurance Department. He has worked closely with industry experts, associations, consumer advocacy groups and others to promote the successful passage of transformative insurance legislation.

“Jim is a welcome addition to our growing Government Affairs and Insurance Regulatory practices in Connecticut,” said Brian Del Gatto, regional managing partner of the Connecticut offices. “His keen ability to help our clients achieve their goals by understanding their businesses, the legislative process and key players in Connecticut politics, make him a tremendous asset to the firm and to the organizations we serve.”

Perras served on the House of Delegates for the Connecticut Bar Association and as a board member of the Town of Manchester Redevelopment Agency.

Perras earned his J.D. degree from Western New England School of Law (2010) and a B.A. degree from the University of Connecticut (1997).

Global business advisory firm FTI Consulting, Inc. has announced the launch of Radiance, a new visual analytics software platform designed to enable organizations to dynamically investigate and understand their enterprise data. Developed by FTI Consulting’s Technology segment, Radiance is now available either as a cloud-based service or as a rapid deployment mobile option.

“Mission-critical information resides across disparate systems, from legacy applications inside the corporate firewall to third-party cloud software, and this data can make or break an investigation or legal matter,” said Eddie O’Brien, Senior Managing Director in the Technology segment at FTI Consulting and primary inventor of Radiance. “Organizations need an easy-to-use, scalable platform that connects with their data and enables users to iteratively investigate and quickly act upon the information. Radiance delivers against this need with speed and visual analytics that help users rapidly identify key custodians, date ranges and document types during early case assessment (“ECA”) or an investigation to determine the social network, communication pattern and information shared by key custodians.”

Read more about Radiance.

In a scathing ruling issued Friday, a state judge in Lubbock declared that prominent Dallas trial lawyer Bill Brewer committed misconduct when he used so-called push polling to improperly influence potential jurors in a West Texas wrongful death and products liability case, reports The Dallas Morning News.

“State District Judge Ruben Reyes described Brewer’s conduct as ‘unprofessional’ and ‘unethical’ — findings that Brewer adamantly denies — and ordered the hard-charging trial lawyer to pay more than $133,000 in sanctions and take 10 hours of legal ethics courses,” according to the report.

Brewer and his law firm conducted a push poll with questions and statements “designed to influence or alter the opinion or attitude of the person being polled,” the judge ruled.

Read the article.

A class-action suit has been filed in federal court in Portland against two daily fantasy sports sites, FanDuel and DraftKings, alleging both businesses are operating illegal online sports betting, reports The Oregonian.

“Brandon Peck, a resident of Polk County, brought the suit on behalf of himself and more than 100 other Oregon players who lost money in the past three years while placing wagers online through the two sites, Draftkings.com and FanDuel.com,” according to the report.

The plaintiff is asking the court to halt the companies’ operations and have each business pay players back double the amount they’ve “wrongfully lost,” seeking more than $5 million.

Read the article.

Irving, Texas-based Nexstar Broadcasting Group Inc. finally won a contentious and long-running bid Wednesday to become one of the nation’s largest media players, according to a report in The Dallas Morning News.

Nexstar announced plans to merge with Media General, edging out publisher Meredith to consummate a deal valued at $4.6 billion.

“Nexstar will acquire all outstanding shares of Media General for $10.55 a share in cash and 0.1249 of a share of Nexstar Class A common stock for each Media General share,” The Morning News reports. “Media General shareholders also are entitled to proceeds received from the sale of Media General’s spectrum in an incentive auction set to be held by the Federal Communication Commission.”

Read the story.

As National Slavery and Human Trafficking Prevention Month, January 2016 offers the opportunity for federal contractors to reflect on the significant regulatory changes to the Federal Acquisition Regulation (FAR) that occurred in 2015 as part of the fight to end human trafficking in federal contracts, according to an article published by Venable LLP.

“For instance, contractors should take this opportunity to evaluate the effectiveness of the internal mechanisms established to comply with the new regulations. Contractors should pay particular importance to the effectiveness of their policies because noncompliance can lead to criminal, civil, and/or administrative consequences, as well as the declination to exercise options, contract termination, suspension of contract payments, and/or loss of award fee,” the article says.

Authors of the article are Paul A. Debolt, Dismas Locaria, Melanie Jones Totman and Michael T. Francel.

Read the article.

Gardere Wynne Sewell LLP announced that partners Joyce Mazero and Leonard H. (Len) MacPhee will lead the firm’s Global Supply Network Industry Team from its Dallas and new Denver offices. Mazero and MacPhee were most recently partners with Perkins Coie LLP, where they led its Supply Chain and Franchise & Distribution Practice Groups.

Mazero has significant experience as lead project partner, assisting clients in developing strategy, structuring, negotiating, implementing and resolving disputes for product and service-based domestic and international franchise, distribution, manufacturing and logistics businesses. She has worked with structuring and negotiating group purchasing cooperatives and arrangements for global contract manufacturing and sourcing, international franchise systems, special venue licensing, dedicated transportation and outsourced logistics management.

“Joyce’s well-recognized international reputation as a strong advocate and trusted, strategic business advisor for her clients in the supply chain, food service, restaurant and retail industries reflects an important benchmark showcasing our commitment to ‘best in class’ legal services targeting these industries,” says Gardere Chair Holland N. O’Neil. “The continued growth of our international trade and supply chain expertise is greatly enhanced with the addition of Joyce.”

Mazero has served on the boards of the National Restaurant Association Educational Foundation, International Franchise Association, Women’s Foodservice Forum and the American Bar Association’s Forum on Franchising. Mazero currently serves on the NRA’s Executive Supply Chain Advisory Council and as a trustee for the College of Merchandising, Hospitality and Tourism at the University of North Texas. She has received numerous awards for her work, including the Women’s Foodservice Forum Leadership Award, International Franchise Association Bonnie Levine Award and the Dallas Business Journal Women in Business Award. Mazero has consistently received the highest national ranking awarded by Chambers USA as one of the nation’s leading franchise attorneys, and she is recognized as a leading franchise attorney in Chambers Global, The Best Lawyers in America©, U.S. News & World Report, International Who’s Who of Franchise Lawyers and Franchise Times. She is routinely named a Texas Super Lawyer and among D Magazine’s Best Lawyers in Dallas, in addition to serving as a member of Franchise Times’ Legal Eagles Hall of Fame.

MacPhee will be opening and managing the Firm’s new Denver office. His work includes analyzing and advising clients on significant supply network matters, including pre-litigation work, structuring business strategies and negotiating contracts for the rollout, wind down and transition of product distribution networks across multiple supply chains. He frequently litigates business disputes and issues relating to supply network and distribution matters, as well as disputes involving contracts, business torts, trade secrets, trade dress, covenants not to compete, and enforcement of intellectual property rights before state and federal trial and appellate courts, including arbitration panels.

“Len brings a wealth of experience in supply chain and distribution matters, including franchise and commercial litigation,” says O’Neil. “Adding a well-established national practice with high-caliber Denver-based attorneys, led by Len, is the ideal way for Gardere to expand its footprint into Colorado, and we look forward to growing in that market.”

MacPhee is recognized as one of America’s leading franchise lawyers by Chambers USA, The Best Lawyers in America® and Colorado Super Lawyers. In 2014, he was named Franchise Law “Lawyer of the Year” by Best Lawyers® Denver. Mr. MacPhee received his J.D. from The Dickinson School of Law at Pennsylvania State University. He serves on International Franchise Association committees for the IFA Legal Symposium and IFA Annual Convention, and as a host of Denver’s Franchise Business Network.

Joining Mazero and MacPhee are partner Jess A. Dance and associate Sarah A. Walters.

Dance focuses his practice on franchise, distribution and supply chain matters, as well as complex commercial litigation. He frequently represents clients in litigation and arbitration, and on a pre-litigation basis relating to supply network, distribution, trade secrets, trade dress, covenants not to compete, and enforcement of contract and trademark rights. He also advises clients in supply and distribution contract drafting and negotiation. Dance previously served as an assistant attorney general with the Colorado Attorney General’s Office, representing state agencies in state and federal court in a variety of constitutional cases. He graduated with honors from the Georgetown University Law Center and has been recognized as a Colorado Rising Star by Super Lawyers. Dance has authored multiple articles for Law 360 and the International Law Office’s Franchising Newsletter – USA, and has presented at the IFA Legal Symposium and Denver Franchise Business Network events. In 2012, he was co-recipient of the Colorado Lawyer Committee’s “Team of the Year” award for his work on a pro bono case involving public school funding.

Walters focuses her practice on supply chain, franchise, distribution and logistics matters, counseling and coordinating projects for national and global clients for transactional, regulatory, governance and dispute resolution projects. This includes negotiation of a wide range of franchise and supply chain contracts on a domestic and international basis. Walters served as general counsel for a national franchisor, where she was responsible for the company’s franchise transactions, regulatory and corporate governance matters, and supply and distribution transactions. She is the host of Dallas’ Franchise Business Network and served as chair of the Dallas Bar Association Franchise Law Section in 2015.

Gardere Wynne Sewell LLP, an Am Law 200 firm founded in 1909 and one of the Southwest’s largest full-service law firms, has offices in Austin, Dallas, Houston, Denver and Mexico City. Gardere provides legal services to private and public companies and individuals in the areas of corporate, energy, environmental, financial restructuring and reorganization, financial services, government affairs, hospitality, insurance, intellectual property, international, labor and employment, litigation, private equity, real estate and tax.

eSignLive is offering a free ebook that provides an introduction to electronic signature laws around the world.

Electronic signatures are in use across the globe, the company says. The widespread adoption of e-signatures has been supported by electronic signature laws around the world, including the Americas, Europe, Middle East, Africa and Asia-Pacific. Many of these are based on a model law enacted by the United Nations Commission on International Trade Law – Model Law on Electronic Signatures (2001).

Today more than 75 countries that recognize the legal validity of e-signatures. This eBook covers:

• The three forms of electronic signatures – Basic, Advanced and Certificate/Qualified E-Signatures;
• A list of e-signature types allowed by each country;
• Links to resources such as the Database of Electronic Signature Legislation;
• Information about data residency and privacy laws.

Download the ebook.

Bradley D. Coburn has joined Dykema’s Intellectual Property Department as a member of the firm’s Austin office, the firm announced. Prior to joining Dykema, Coburn practiced at Denko Coburn Lauff LLP and Fish and Richardson PC.

Coburn litigates intellectual property cases involving patent infringement, trademark infringement, copyright infringement, theft of trade secrets and unfair competition. He also counsels clients on IP licensing, trademark protection and prosecution, and employment issues related to protecting intellectual property.

“Bradley’s addition bolsters the firm’s presence and enhances its bench strength in Texas,” said Allan Gabriel, Director of Dykema’s Intellectual Property and Intellectual Property Litigation Department. “There is no doubt that his experience and proficiency in IP law will benefit our clients a great deal.”

Coburn received a J.D. from the University of Texas Law School and a B.S. in Economics from the Wharton School of the University of Pennsylvania. After law school, he served as a law clerk to the Honorable James. R. Nowlin at the United States District Court for the Western District of Texas. He has been recognized as a Texas Super Lawyer and is a former president of the Austin chapter of the Federal Bar Association.

By Stephen Pinson
Scott & Scott, LLP

Software and service contracts come with many potential risks, and businesses should be mindful when initiating a new contract or a renewal. It’s considered a best business practice to negotiate the terms in a software or service contract before agreeing to the initial terms a vendor provides in the contract. There are many contract provisions that can be negotiated, but the major risk provisions found in most contracts are the following: (1) Limitation of Liability, (2) Indemnification, and (3) Warranty. These contract provisions must be considered in conjunction with one another because they cannot be effectively negotiated without determining how they affect each other.

Limitation of Liability ranks as one of the top contract provisions negotiated in a software contract. The limitation of liability limits each party’s liability for breach of contract or list of damages for all sorts of harm. A software publisher’s liability is usually limited to the amount of fees paid to the vendor or a fraction thereof. The risk in not negotiating these terms is that the licensee is capped at the amount of damages. This cap may not equate to the actual amount of harm. The best way to negotiate these contract provisions is to write the provision in such a way as to: (1) increase the damage cap, (2) negotiate insurance coverage, or (3) negotiate a limitation carve-out that excludes certain type of claims from the limitation of liability.

An indemnity clause requires one party to bear the monetary and defense costs, either directly or by reimbursement, for losses incurred by a second party. It shifts potential costs from one party to another. One potential claim is an intellectual property (“IP”) infringement claim. The licensee may seek reimbursement for costs incurred in defending a claim by a third party that the licensed software infringes on the third party’s IP rights. For this reason, licensees should be careful to negotiate appropriate protections for third-party claims.

The best way to negotiate this contract provision is to include indemnification provisions that the software or service provider will be responsible if the licensed software infringes the IP of a third party by requiring the software or service provider to do the following: (1) purchase a license to the infringing code in order to be able to legitimately provide it to you; (2) modify the infringing code so that it no longer infringes the third party’s IP rights; (3) replace the infringing code with code that does not infringe the third party’s IP; or, if none of the above solutions are possible, (4) the software vendor will refund the license fees (but be careful, the license fee rarely will be enough to compensate for losses suffered if the software vendor has infringed a third party’s intellectual property). There are also indemnification provisions that can be negotiated for harm that is suffered from a service provider that provides services on business property, such as bodily injury, death, or damage to real or tangible, personal property resulting from the negligent or willful acts or omissions. These also need to be carefully negotiated to avoid any potential risk.

A warranty in a software or service contract is (1) a formal promise by a vendor that the product is defect free or that the service will be performed in a workmanlike manner, and that if it fails to do so, (2) how the vendor will go about rectifying the defects in the product or service. The best way to negotiate this contract provision is to include warranties that promise to protect the licensee from failures of warranty. The warranty section should include some of the following warranties: (1) the software or service provider has necessary equipment and trained personnel to perform the services consistent with industry standards, (2) the services will be performed in workmanlike manner (3) the software or service provider will comply with all applicable laws (4) the software or service provider warrants that it maintains an information security process with physical safeguards appropriate for the sensitivity of customer information (5) warrants that the software will perform its functions and (6) warrant the software shall be free of material or hidden defects.

Remember, it is always important to seek advice from experienced counsel in order to understand all the risks involved when negotiating software and service contracts.