Trade Secrets Take Center Stage, and Contracts Play a Lead Role

Trade secretWith increasing attention on trade secrets and a developing body of case law around Defend Trade Secrets Act claims, an emphasis on contracts also is growing, point out Douglas R. Nemec and P. Anthony Sammi in a post for Skadden, Arps, Slate, Meagher & Flom.

“Breach-of-contract claims frequently have appeared alongside trade secret claims in lawsuits over the years and often materially impacted the results,” they write. “But a contract should not be viewed as a mere alternative to trade secret protection. Properly crafted, and if necessary properly litigated, a contract can both strengthen and expand the reach of a trade secret claim.”

Their article covers defining confidential information, term limitations and their risks, and maintaining confidentiality.

Read the article.

 

 




Knowledge Qualifiers in IP Representations and Warranties

In most transactions involving the sale or license of intellectual property, a buyer or licensee will request that a seller or licensor represent and warrant that such intellectual property does not infringe or misappropriate the intellectual property rights of a third party.

In a post on the Morgan Lewis website, Rahul Kapoor and Shokoh H. Yaghoubi explain that this representation and warranty is often heavily negotiated in a license or purchase agreement. That’s because the seller or licensor wants to limit its obligations for breach of this representation to limit its liability under the agreement, whereas the buyer or licensee wants to keep this provision as broad as possible to ensure that it receives appropriate protection from third-party claims for the intellectual property it licenses or buys.

Their article offers some advice on structuring this type of contract clause.

Read the article.

 

 




How General Counsel can Successfully Collaborate with Outside Attorneys

Three senior in-house attorneys discussed best practices for collaborating with outside counsel during a panel discussion at Ward and Smith’s 2018 In-House Counsel Seminar, with a focus on leveraging technology, controlling legal spend, and managing succession.

A report on the discussion is posted on the Ward and Smith website.

Ward and Smith attorney Paul Fanning moderated a panel featuring Brian Holland, General Counsel for Global Knowledge, Kelly Clay, Global eDiscovery Counsel and Head of Data Governance at GlaxoSmithKline, and Ken Hammer, Senior Vice President and Chief Legal Officer at Toshiba Global Commerce Solutions.

Read the article.

 

 




Judge in Yahoo Data Breach Case Criticizes ‘Unreasonably High’ Attorney Fees

A federal judge in San Jose, California, refused to approve a class action settlement in litigation over a series of Yahoo data breaches, citing a lack of transparency and the possibility of “unreasonably high” attorney fees, according to the ABA Journal.

The plaintiffs had proposed a $50 million settlement fund, but the proposed notice to class members did not disclose the costs of creditor monitoring services or costs for class notice and settlement administration, U.S. District Judge Lucy Koh said.

She also found problems with the plaintiffs’ lawyers’ fees:

“Specifically, the court finds that class counsel prepared limited legal filings with numerous overlapping issues, and that class counsel completed limited discovery relative to the scope of the alleged claims. Moreover, class counsel fails to explain why it took 32 law firms to do the work in this case.”

Read the ABA Journal article.

 

 




Attorney Suspended for 3.5 Years After Offering Legal Advice for Go Fund Me Money

A Charleston, WV attorney’s law license has been suspended for three and one-half years after attempting to raise funds via Go Fund Me in exchange for legal advice, reports the The West Virginia Record.

As treasurer of the Kanawha Valley Soccer League, lawyer Mark Allen Glover allegedly transferred money from the league’s checking account to his personal checking account, writes the Record‘s Kyla Asbury. The newspaper reported finding documents showing that Glover diverted approximately $12,000.

He lost his job after the diversion was discovered. Glover then set up a Go Fund Me fundraiser, seeking funds to help in his attempt to transition to being a solo practitioner. He offered free legal advice to those who donated to him. The state Supreme Court suspended his license for 42 months.

Read the WV Record article.

 

 




Bionpharma Fails to Get Rival’s GC Disqualified in Supply Spat

Bloomberg Law reports that Generic drug distributor P&L Development LLC’s general counsel and an outside firm may continue to represent P&L in its breach-of-contract and fraud suit against Bionpharma Inc., a federal court in North Carolina ruled.

Bionpharma wanted to disqualify Charles Cain, P&L’s general counsel. P&L is suing Bion for breach of supply agreements that Cain approved when he was general counsel at a defunct predecessor of Bion’s, explains Bloomberg’s Martina Barash.

But any confidential information about the predecessor’s capabilities that Cain acquired during the agreements’ drafting wouldn’t help P&L in this suit, the court said.

Read the Bloomberg Law article.

 

 




5 Security Best Practices for Contract Management

CybersecurityA new post from Contract Logix offers some advice on how to avoid landing in a nightmare business situation: Imagine if a disgruntled employee or ambitious hacker accessed the details of your most important and sensitive contractual agreements and did something malicious with the information. Just think about the potential legal, financial, and brand liability.

Security breaches like this can result in the most severe and highest profile consequences for your business, especially in today’s hyper-connected world of social media. Unfortunately, the contracts at many organizations are scattered throughout the company in file cabinets, on individuals’ hard drives, or in shared folders – exposing the business to significant risk.

Below are 5 security-focused best practices you can implement to better protect your contracts:

1. Centralize all your contracts in a secure electronic repository.

It’s not uncommon for organizations to store contracts in shared folders across multiple locations and formats. However, centralizing your agreements in a password protected and cloud-based repository is the most important step towards secure contract management. Not only will it keep your agreements organized, it greatly reduces the risk of them being accessed by the wrong individuals and stores them in a safe place. It also allows you to securely access any document at anytime from anywhere on any device.

2. Implement role-based security to your contracts and related information.

Another challenge with storing contracts in multiple places is that it’s impossible to govern tiers of access to them. Once you’ve centralized your contracts online, you’ll be able to set role-based permissions for enhanced security. This allows someone to read or write certain document or contract types but denies them access to others that would be inappropriate to edit. It also prevents unauthorized users from seeing or editing contract details.

3. Ensure all your contract data is encrypted in transit and at rest.

An important best practice to protect your contracts from unauthorized users is to encrypt all your document data. You’ll want to encrypt information both at rest and in transit using the latest AES 256-bit encryption and TLS 1.2 standards. Data at rest refers to any data that is stored within your contract management system. Data in transit refers to any data that is being sent externally to or from your contract management system to a user or another application.

4. Leverage E-signature capabilities.

The most time-consuming part of any contract process is getting approvals, especially for those chasing down paper-based signatures. E-signatures are a best practice to get documents signed faster. More importantly, however, is that e-signatures are more secure than paper ones. They have been legally binding for over 15 years thanks to the ESIGN Act of 2002. E-signatures carry a digital record about who, when, and where a document was signed to ensure authentication and help with audit trails. Be sure to fully capitalize on the benefits E-signatures offer your organization.

5. Intake your contract data through secure forms.

Many organizations still rely on email to request contracts and capture required data to create them. This often leads to incomplete or incorrect information which adds time and creates risk. Email attachments are also the most common way hackers infiltrate corporate networks with malicious software. With pre-defined and encrypted intake forms, team members can quickly and accurately submit an existing contract, request the creation of a contract, or if they have the authority, instantly create a contract. This ensures the integrity and security of data captured for your contracts, eliminates the need for double data entry or chasing down missing data, and minimizes mistakes.

Takeaway

The number of security breaches and malicious hacks continues to skyrocket. Given that contracts are the backbone of your business, you can increase the security of them by implementing these five best practices. Not only will you have greater piece of mind, you’ll also avoid potential financial, legal, and brand risks.

 

 




Seventh Circuit: Class Arbitration is for Courts to Decide, Not Arbitrators

A post on the Carlton Fields website updates the latest ruling in a class action alleging violation of the Fair Labor Standards Act and breach of contract.

A U.S. district court had compelled arbitration pursuant to an agreement between the plaintiff and defendant, but it struck as unlawful a waiver clause that appeared to forbid class or collective arbitration of her claims, reasoning that the plaintiff could not waive her right to bring a class action under the National Labor Relations Act.

On appeal, the Seventh Circuit was faced with reconciling the district court’s decision with a subsequently-decided U.S. Supreme Court case, writes Gail E. Jankowski.

Read the article.

 

 




CFIUS National Security Partner Dave Hanke Joins Arent Fox

Arent Fox LLP announced the expansion of its International Trade and National Security practices with the addition of partner David R. Hanke.

Following his service as a Professional Staff Member on the US Senate Select Committee on Intelligence and a lead policy advisor to Senator John Cornyn (R-TX), Hanke will practice in the firm’s Washington, DC office and counsel domestic and foreign clients on the implementation of the Foreign Investment Risk Review Modernization Act (FIRRMA) — the most sweeping overhaul of CFIUS in 40 years, the firm said in a release.

“As an intellectual architect and driving force behind FIRRMA, Dave is one of the most knowledgeable lawyers in the country about CFIUS, whether M&A, joint venture, and finance transactions must now be filed, and how to handle the new CFIUS review process,” said International Trade leader Kay C. Georgi. “While serving at the Senate Intelligence Committee, Dave collaborated with key officials at the Treasury Department and other CFIUS member agencies as FIRMMA was developed. He also has unique insight into what emerging and foundational technologies may be controlled in the future by the Department of Commerce Bureau of Industry and Security. Dave’s experience and his excellent legal skills will be a great resource to our national security and international trade clients.”

In the release, the firm said Hanke’s work at the Senate Intelligence Committee and for then-Senate Majority Whip John Cornyn exposed him to some of the country’s most complicated and multifaceted national security issues and technology-related challenges. His work included serving as the principal advisor to Sen. Cornyn on all intelligence, CFIUS, and related issues; devising, developing, and drafting FIRMMA and also two bills regarding foreign theft of US intellectual property; reviewing all classified CFIUS National Security Threat Assessments written by the Intelligence Community; and formulating policy to maximize security for 5G mobile communications.

At Arent Fox, Hanke will advise clients at the intersection of national security and business on matters involving CFIUS, export controls, Defense Security Service issues, and national security-related investigations.

Prior to joining the Senate Intelligence Committee, Hanke served as Counsel for National Security Affairs to Sen. Cornyn and held various staff positions on several committees in the House of Representatives, including International Relations, Ways and Means, and House Administration. From 2004-2007, he served on active duty as a Judge Advocate in the US Army, during which time he was a lead prosecutor and principal attorney for commanders at various levels and deployed to Iraq for 11 months with the 101st Airborne Division (Air Assault).

 

 




Webinar: RFPs – Best Practices & Obstacles to Avoid

RFP Advisory Group will present a complimentary webinar where attendees will learn best practices and obstacles to avoid when issuing a request for proposal (RFP) to law firms.

The webinar will be Wednesday, Feb. 16, 2019, beginning at 1 p.m. EST.

RFP Advisory Group says that RFPs can allow a legal department to:

* Identify how many, and which law firms are the best fit for your business goals
* Incorporate the latest technology and innovations into your legal strategy
* Negotiate rates that will ensure that you are getting the most value for your dollar
* Convert your billing structures to alternative fee arrangements (“AFAs”)
* Increase diversity of the lawyers working on your companies matters
* Create a consistent set of outside counsel guidelines

However, RFPs can be labor intensive and a disaster to manage when done incorrectly, especially when done by general counsel with no legal operations or procurement staff to support the process, the RFP Advisory Group says. This webinar is ideal for general counsel who have been considering issuing an RFP but need to learn more about the latest trends and best practices.

Register for the webinar.

 

 




Record Multimillion-Dollar Settlement Reached for Susman Godfrey Partner’s Traumatic Brain Injury

Seattle and its insurers have agreed to pay $65.75 million to the family of Brooke Taylor, an amount representing the largest individual personal injury settlement in the city’s history, likely the largest in Washington state and among the largest ever in the country, reports Crosscut.

“The enormous sum is the result of a confluence of circumstances,” explains Crosscut’s David Kroman. “Taylor was 38 at the time of the crash and in the early part of what was an already decorated career with the law firm Susman Godfrey as an intellectual property litigation attorney. When she was still working, she was being showered with praise, and several industry publications had counted her among the country’s best lawyers.”

Taylor has a full-time medical attendant and currently lives in an assisted-care facility near her family’s home.

Read the Crosscut article.

 

 




Lawyer Sues Apple, Says FaceTime Bug Allowed Secret Recording of Deposition, Caused Emotional Trauma

AppleCourthouse News Service reports that an attorney in Houston filed a lawsuit claiming he was conducting a deposition with a client when he encountered Apple’s latest bug that allowed others to access his iPhone’s microphone without him answering a FaceTime call.

The New York Times explains how the bug worked:

“By adding a second person to a group FaceTime call, you can capture the audio and video of the first person called before that person answers the phone, or even if the person never answers.”

The Houston lawyer, Larry D. Williams II, seeks punitive damages against Apple and unknown parties for claims of product liability, negligence, warranty and fraudulent misrepresentation.

CNBC reports that Williams claimed the experience caused “sustained permanent and continuous injuries, pain and suffering and emotional trauma that will continue into the future” and that Williams “lost ability to earn a living and will continued to be so in the future.”

Read the Courthouse News Service article.

 

 

 




170 Top In-House Lawyers Warn They Will Direct Their Dollars to Law Firms Promoting Diversity

DiscriminationGeneral counsels and chief legal officers at more than 170 companies have signed an open letter telling law firms they expect their lawyers to “reflect the diversity of the legal community and the companies and the customers we serve,” reports the ABA Journal.

“The letter was drafted after an online photo of 12 new partners at Paul, Weiss, Rifkind, Wharton & Garrison drew attention because it appeared to show 11 white men and just one woman,” writes the Journal‘s Debra Cassens Weiss. “The firm later said the partnership class also includes one Latino and one LGBTQ partner.”

New York Times article on the subject said that more than 20 women and people of color described obstacles to achieving diversity at Paul, Weiss, with many saying that opportunities to be groomed for partner are harder to come by for women and minorities.

Read the Journal article.

 

 

 




Orsinger, Nelson, Downing & Anderson Attorney Taylor Mohr Earns Family Law Board Certification

Taylor Mohr, an associate at Texas family law boutique Orsinger, Nelson, Downing & Anderson, has earned Board Certification in Family Law by the Texas Board of Legal Specialization.

Mohr becomes the firm’s 14th attorney to earn Board Certification in Family Law, a distinction that has been earned by less than 1 percent of eligible Texas attorneys, the firm said in a release. Additionally, two of the firm’s partners hold Board Certification in a second area of practice.

“Having 14 attorneys board certified in Family Law is a great testament to the talent at our firm,” says firm name partner Keith Nelson. “We are extremely proud of Taylor for earning this recognition and for the work she does on behalf of her clients.”

Mohr joined ONDA in June 2018. Her practice involves divorce, modifications, enforcements and child custody. She also has experience in estate planning and elder law issues, the firm said.

“I’m passionate about family law and helping people who are facing one of the most difficult times in their lives,” says Mohr. “My desire to do my best and to be the best for my clients drove me to achieve this level of distinction in Family Law.”

Recognized in the 2017 and 2018 Texas Rising Stars listing by Super Lawyers magazine, Mohr also has been selected among the National Academy of Family Law Attorneys’ Top 10 Under 40 in Texas and the American Institute of Family Law Attorneys’ Top 10 Best Female Attorneys.

A graduate of Baylor University and Baylor Law School, Mohr is a member of the State Bar of Texas Family Law section and the Texas Bar College.

 

 




Clay James Named Hogan Lovells Office Managing Partner in San Francisco

Hogan Lovells announced that Clay James has been named office managing partner for the firm’s San Francisco office.

A member of the firm’s board, James is a litigator and trial lawyer who tackles high-stakes intellectual property disputes, class actions, privacy and data security cases, and complex commercial litigation, with a focus on technology-related matters, the firm said in a release.

He joined Hogan Lovells Denver office in 2009 from Sun Microsystems where he served as chief litigation counsel for seven years.

 

 




Perkins Coie Adds M&A Lawyer Tom Stromberg as Partner in Los Angeles

G. Thomas Stromberg has joined Perkins Coie’s M&A practice as a partner in Los Angeles.

In a release, the firm said Stromberg has experience representing investors in the acquisition and financing of private companies. He represents promoters and investors in the structuring of private companies and debt and equity investors supporting them. He regularly works on middle-market M&A transactions, private financings, joint ventures and other matters with technology clients, specifically those in the life sciences, software and cryptocurrency industries. Many of the matters he handles are cross-border transactions with Asian clients or counterparties. He previously practiced in Tokyo and speaks Japanese.

“Tom has worked with an array of industries in North America, in Asia and around the world – and he’ll be a nice addition to Perkins Coie and our M&A team,” said Jeff Beuche, Chair of Perkins Coie’s Mergers & Acquisitions practice. “In addition to his ties to Japan, Tom is well known in Silicon Valley, and he’s been at the forefront of the legal and regulatory issues surrounding crypto assets and other emerging technologies.”

Stromberg joins from Jenner & Block, where he was a partner and co-head of that firm’s media and technology group. He has represented a variety of private and public investment funds as well as private and family-owned businesses in domestic and cross-border transactions. He previously founded and managed a Palo Alto office for a New York-based law firm.

“Tom is a highly regarded M&A lawyer who counsels clients of all sizes, with an emphasis on those in the tech space,” said Jon G. Daryanani, Managing Partner for the Los Angeles office. “He is another important addition to our growing presence in Southern California, following the arrival last year of well-known privacy lawyer Dominique Shelton Leipzig.”

Stromberg received his J.D. from the University of Utah and his B.A., with honors, from Harvard College.

 

 




Blank Rome Adds Commercial Litigation and Class Action Defense Partner in Pittsburgh

Roy W. Arnold has joined Blank Rome LLP’s Pittsburgh office as partner in the Commercial Litigation group and Co-Chair of the National Class Action Defense team. Arnold focuses his practice on the defense of corporate litigation, class actions, and claims under Title III of the Americans with Disabilities Act (“ADA”).

He joins from Reed Smith LLP where he led the firm’s Class Action Defense Team.

“We are thrilled to welcome Roy, one of the country’s top class action litigators, to our Firm,” said Grant S. Palmer, Blank Rome’s Managing Partner and CEO. “Roy’s significant courtroom experience and legal talent strengthens our Firm’s formidable class action defense team and corporate litigation capabilities and, coupled with his complementary experience in ADA Title III cases, further diversifies our Firm’s offerings across numerous industries and advances our robust growth strategy in 2019.”

“Roy’s courtroom skills and advocacy are exceptional, and we could not be more excited to welcome him to our Firm,” added James J. Barnes, Partner and Chair of Blank Rome’s Pittsburgh office. “His commitment and determination to achieve a favorable result for his clients are relentless, yet he is practical and bottom-line oriented when he needs to be. He will be a terrific addition to our commercial litigation practice and class action defense team, and further strengthen our growing Pittsburgh office’s service offerings and talent.”

In a release, the firm said Arnold has represented clients faced with alleged class action and shareholder derivative lawsuits, as well as other complex litigation throughout the United States. He has successfully defended and resolved a variety of major cases brought against banks and other financial services companies, retailers, hotels/resorts, real estate companies, and energy or natural resources companies. He has worked on the defense of claims arising from mergers and acquisitions, corporate governance and fiduciary duties, residential mortgage lending, auto finance, loan servicing, consumer finance, securities, and secondary market issues. As a result, he has defended well over 250 class action lawsuits, the firm said.

Through a string of high-profile engagements in Western Pennsylvania and elsewhere, he has successfully represented a number of Fortune 500 corporations and their boards of directors in shareholder transaction-related litigation seeking to enjoin mergers valued in the billions of dollars, the firm said.

“Roy’s strong litigation experience will be a great complement to our group,” said Jason A. Snyderman, Co-Chair of Blank Rome’s Commercial Litigation group. “His background in class action defense as well as his exemplary track record of success for financial services companies and other clients faced with significant claims is extensive. He brings a complete repertoire of skills and experience having handled class action litigation effectively via motions practice, defeating class certification, trying the case to verdict, or winning on appeal.”

“It is an honor to join Blank Rome, a firm focused on delivering the highest-quality representation of clients while remaining resolute in achieving their business objectives,” stated Arnold. “In the commercial litigation practice, and across the Firm, you find accomplished lawyers committed to client service and developing strong, lasting relationships built on trust and mutual respect.”

Arnold earned his B.A., with honors, from the University of Pennsylvania and his J.D., with honors, from the University of Pittsburgh School of Law where he was elected to Order of the Coif and served as lead executive editor of the University of Pittsburgh Law Review.

Arnold sits on the board of directors for the Pittsburgh International Children’s Theatre, which presents award-winning professional theater for young audiences. He also devotes time to pro bono causes, primarily representing children and families in the adoption setting and protecting women from abusive situations.

 

 




Sidley Adds Litigation Partner Lisa Gilford in Los Angeles

Lisa Gilford has joined Sidley Austin LLP in Los Angeles as a partner in its global Litigation group. Gilford, a civil litigator, joins from Skadden, Arps, Slate, Meagher & Flom LLP.

In a release, the firm said Gilford focuses her practice on complex commercial litigation, including class actions, products liability law, regulatory and enforcement matters, and jury trials.

The firm said she has represented major companies in the automotive, pharmaceutical, entertainment, higher education, communications, oil and gas, aerospace and chemical manufacturing industries.

“Lisa is an exceptional first-chair trial lawyer who complements the capabilities of our talented trial team in Greater Los Angeles and globally,” said Dan Clivner, managing partner of the Greater Los Angeles offices and a member of Sidley’s Executive Committee. “We have seen Lisa in action and are very pleased to call her a Sidley lawyer.”

“Lisa is an outstanding litigator with proven success in assisting clients across industries in high-stakes litigation matters,” said Yvette Ostolaza, a global practice leader of Sidley’s firmwide Litigation group and a member of Sidley’s Management and Executive Committees. “She shares our outcome-oriented approach to litigation and will be an excellent addition to our strong team of more than 600 litigators worldwide.”

Prior to entering private practice, Gilford taught at Georgetown University Law Center. She is a frequent lecturer on topics including consumer protection and unfair competition claims, successful defense of class actions, best practices for outside counsel, and professional development for women lawyers and other diversity issues.

 

 




Law Schools Where Too Many Graduates Fail the Bar Exam May Face Tougher Sanctions

The American Bar Association this week will take up the issue of poor performing law schools, considering a controversial proposal that would toughen the bar-pass standard for law schools.

“The proposal is likely to be vigorously debated and comes after criticism that the accrediting body has allowed schools to admit too many lower-achieving students who struggle to pass the bar,” predicts an in-depth article on the subject published by USA Today.

“Here’s what could change: Law schools have five years to show 75% of their graduates who take the bar exam have passed. The proposal would narrow that to two years,” the authors explain.

Some critics say the five-year rule has allowed schools to continue operating even with dismal bar-passage rates. “It’s virtually impossible to fail,” says Kyle McEntee, executive director of Law School Transparency, “although some schools are managing to come close.”

Read the USA Today article.

 

 




Biglaw Associate With ALS is in Race Against Time to Find a Cure

It was just a year ago when Brian Wallach, then an assistant U.S. attorney, received confirmation of a diagnosis of ALS.

Above the Law introduces the story:

“Just three months later, Wallach returned to Skadden Arps, the firm where he started his career, and he was welcomed back by the firm with open arms, despite his diagnosis. Although the average life expectancy for ALS is about two to five years, Wallach is doing more than simply tending to his own medical ailments. He and his wife, Sandra Abrevaya, recently launched I Am ALS, and they hope to raise $100 million of new funding to find a cure within three years.”

Read the Above the Law article.