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Companies looking to waive class action rights of employees may instead be waving goodbye to provisions in their employment contracts, warns David Heck in Proskauer Rose’s Minding Your Business blog.

He discusses two recent decisions in California — one administrative and one in the 9th Circuit — that recently found that class action waivers in employment contracts were unenforceable as a matter of law and public policy, resulting in the removal of entire or partial contractual provisions.

“Together, these rulings make clear that class action waivers in employment agreements are subject to a high level of scrutiny, even if such waivers are not explicit and signing of the agreement was voluntary,” Heck writes.

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When dealing with contracts, new relationships, or even old ones a little extra scrutiny upfront can save significant amounts of money in the long-run, warns Jennifer McKevitt, writing for Supply Chain Dive.

“While some contract disputes can be settled easily, others erupt once bankruptcy enters the picture. Such was the case between GM and Clark-Cutler-McDermott (CCM), a longtime supplier of GM parts including acoustic insulation and interior trim,” she explains.

She discusses the case, in which CCM claimed to be losing $30,000 per day as a result of damaging contracts initiated by GM.

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Yahoo’s top lawyer, Ronald S. Bell, has resigned, and its chief executive, Marissa Mayer, lost her 2016 bonus after a board investigation of the 2014 theft of information on more than 500 million user accounts, reports The New York Times.

“Senior executives, company lawyers and information security staff were aware of the hack in 2014 and also knew about subsequent attempts to break into the affected accounts in 2015 and 2016, but failed to ‘properly comprehend or investigate’ the situation, the company’s board of directors said in a securities filing on Wednesday,” writes reporter Vindu Goel.

Yahoo’s GC is bearing much of the blame for the company’s security failures, including the hack that left up to 32 million Yahoo accounts vulnerable. The company now faces 43 consumer class-action suits related to breaches, as well as a stockholder class-action suit, the report says.

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Kenneth Freeling, of counsel at Covington & Burling and former Dewey & LeBoeuf litigation partner, died in a fall from his ninth-floor New York apartment Thursday, according to reports.

The New York Post quoted police reports saying Freeling, 59, had a history of mental illness and reported that Freeling had jumped to his death. He lived on the ninth floor of the building and landed on a second-floor terrace in view of witnesses in the building’s gym.

Above the Law reports that Freeling’s son, Samuel, committed suicide in 2013.

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Bloomberg BNA is reporting that a package of far-reaching bills to overhaul the civil litigation process, long cherished by business and derided by consumer groups, is likely to win approval from President Trump if it reaches his desk.

Republicans are moving a batch of business-friendly bills through the House. An example is legislation calling for business-backed litigation measures, colloquially known as “tort reform.” Sherman “Tiger” Joyce, president of the American Tort Reform Association, told Bloomberg BNA that prospects for enactment fo the legislation are “certainly better than they’ve been since 2008.”

But backers of such legislation caution against reading too much into Trump’s comments on the bills, writes reporter Bruce Kaufman.

Read the Bloomberg article.

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Gardere labor and employment attorneys Cristina Portela Solomon and Rachel Powitzky Steely, and litigation attorneys Mary Elizondo Frazier and Mike Seely, have been elected to membership in the Fellows of the Texas Bar Foundation. Fellows of the Foundation are selected for their professional achievements and demonstrated commitment to the justice system throughout the state of Texas.

Selection as a Fellow of the Texas Bar Foundation is restricted to members of the State Bar of Texas. Each year, only one-third of 1 percent of State Bar members are invited to become Fellows. Once nominees are selected, they must be approved by the Texas Bar Foundation Board of Trustees. Membership has grown from an initial 255 charter members in 1965 to more than 9,000 Fellows throughout Texas today.

Founded in 1965 by lawyers determined to assist the public and improve the profession of law, the Texas Bar Foundation has maintained its mission of using the financial contributions of its membership to build a strong justice system for all Texans. To date, the Texas Bar Foundation has distributed more than $17 million throughout Texas to assist nonprofit organizations with a wide range of justice-related programs and services. More information about the Texas Bar Foundation can be accessed here.

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Peter C. Vilmos of Burr Forman writes in an article published by JDSupra Business Advisor that contractors have several reasons to require that their high-level employees (e.g., C-Level) enter non-compete agreements.

“Non-compete agreements, or non-competition agreements, are contracts into which an employer and an employee enter that restricts the work the employee can perform for another company when the employee’s tenure at the employer company ends,” Vilmos explains. “Typically, it’s illegal to intentionally restrain trade; however, some states allow employers and employees to voluntarily enter into agreements with future employment restrictions.”

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Worker’s rights opinions written by Judge Neil Gorsuch, President Donald Trump’s pick for the Supreme Court, are often sympathetic but coldly pragmatic, and they’re usually in the employer’s favor, according to a review conducted by the Associated Press.

“A review of dozens of employment cases he heard in his decade on the U.S. 10th Circuit Court of Appeals reveals a focus on texts and a fondness for scrutinizing definitions of words in legislation and the Constitution. Conservatives herald his strict approach. Many liberals say it too often results in workers losing out,” write AP reporters Denise Lavoie and Michael Tarm.

The federal appeals court judge has sided with employers 21 out of 23 times in disputes over the U.S. pensions and benefits law, the Employee Retirement Income Security Act, or ERISA. He sided with the majorty in all 21 cases.

Read the AP article.

A new JPMorgan Chase & Co. a learning machine  called COIN, for Contract Intelligence, is parsing financial deals that once kept legal teams busy for thousands of hours, according to a Bloomberg report.

The company uses the technology to interpret commercial-loan agreements that formerly consumed 360,000 hours of work each year by lawyers and loan officers. The software reviews documents in seconds, is less error-prone and never asks for vacation, writes Hugh Son.

“Made possible by investments in machine learning and a new private cloud network, COIN is just the start for the biggest U.S. bank,” Son explains. “The firm recently set up technology hubs for teams specializing in big data, robotics and cloud infrastructure to find new sources of revenue, while reducing expenses and risks.”

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Eolas Technologies, which has been called a “patent troll,” has continued to file against big companies, even after losing a landmark 2012 trial. But following an appeals court order, Eolas will have to pursue its lawsuits in California — not its preferred patent hotspot of East Texas, reports Ars Technica.

Joe Mullin writes that the move could reduce Eolas’ chances of winning a settlement or verdict when the case is heard in a court outside the plaintiff-friendly East Texas system.

Eolas claims rights to a patent on features related to the interactive Web, including online video, user-manipulated images on shopping websites, and suggestions that pop up in search bars. Google defeated the claim in trial. Yet, Eolas lawyers were able to continue to get more patents granted as “continuations” of that original patent, even after a jury invalidated it.

Read the Ars Technica article.

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Farrell Fritz announces that Jed Albert has been named a 2017 “Top Legal Eagle” in Estates & Trusts by Long Island Pulse Magazine. He will be honored at a reception on Thursday, April 6, 2017 at The Ritz-Carlton Residences in North Hills.

Albert, a Melville, NY resident, represents individuals and fiduciaries with respect to complex estate planning, charitable giving, business succession planning and trust and estate administration. He earned his J.D. degree from Rutgers School of Law and his B.A. degree from Queens College.

Pulse Magazine’s “Legal Eagles” has been recognizing Long Island’s top attorneys for 10 years.

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The national law firm of Quarles & Brady LLP announced that Jennifer Sucher has joined the firm’s Chicago office in its Bankruptcy, Restructuring, and Creditor’s Rights Practice Group.

Sucher’s practice focuses on secured lending and leasing transactions, restructuring, bankruptcy and creditor’s rights. She has advised clients on a wide variety of issues involving healthcare finance, cash flow and asset based lending, franchise finance and commercial real estate. She spent 19 years working in-house as Executive Counsel at GE Capital and as Legal Operational Risk Manager at Heller Financial.

She received her law degree from Loyola University Chicago School of Law and her bachelor’s degree from Loyola University Chicago.

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Arent Fox LLP announces the addition of commercial litigator John S. Purcell as a partner in the firm’s Los Angeles office. Purcell joins the firm’s Complex Litigation practice and focuses on class actions, intellectual property, media, and commercial litigation. His intellectual property practice includes litigation involving copyright, patent, trademark, idea theft, and unfair competition. He also has experience in construction, real estate, and environmental nuisance matters.

“We are thrilled to welcome John to the firm,” said Los Angeles Managing Partner Aaron H. Jacoby. “He will add to our deep bench of litigators who counsel clients strategically and efficiently, with an eye on ensuring we meet their business objectives. John’s diverse skillset and valuable courtroom experience is a great addition to our national litigation team.”

Previously a senior partner at Quinn Emanuel Urquhart & Sullivan, LLP, Mr. Purcell has experience in federal and state courts on behalf of large commercial clients in the consumer electronics, telecommunications, and technology industries.

In a news release, the firm said the addition of Purcell is the most recent step in Arent Fox’s West Coast expansion, which prioritizes the growth of core practice areas that the firm boasts national and international capabilities in. The firm’s California offices recently added commercial litigator Brian P. Maschler in San Francisco and corporate finance attorney Samuel J. Miller in Los Angeles.

Purcell is a member of the California Bar. He earned his bachelor’s degree from University of Illinois, and his law degree from New York University School of Law, where he served as the Associate Editor of the NYU Review of Law and Social Change.

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Freeborn & Peters LLP announces that it is combining with the New York City firm of Hargraves, McConnell & Costigan P.C. The development, which establishes Freeborn’s first office in New York, represents a further geographic expansion for the Chicago-headquartered Freeborn, which last year combined with the Richmond, Va.-based Brenner, Evans & Millman P.C.

“A common client of the two firms urged the combination. We are always pleased when clients’ needs result in continuing strategic growth for the firm and for our internationally acclaimed insurance/reinsurance practice,” said Joseph T. McCullough IV, Leader of the Insurance/Reinsurance Practice Group and member of the Freeborn Executive Committee. “With the firm’s growing emphasis on international arbitration and litigation for other industries, New York is an ideal location in which to offer our sophisticated litigation capabilities. A presence in New York enables us to better serve our international, as well as domestic, clients.”

In a news release, the firm said:

The combination with Hargraves, McConnell & Costigan P.C. advances Freeborn’s strategy of geographically expanding its strongest practice areas when faced with demonstrable client demand. This objective is fulfilled through Hargraves’ strong reputation in the insurance and reinsurance industries in litigating and arbitrating disputes arising out of both domestic and international contracts. The combination also serves Hargraves by extending the scope, reach and depth of its practice.

“In seeking a partner for growth, there were very few other firms that had the same depth of knowledge and experience in insurance/reinsurance as Joe McCullough and his large team at Freeborn & Peters,” said Daniel Hargraves, Founder of Hargraves, McConnell & Costigan P.C. “We look forward to this combination and to collaborating with our new colleagues to the benefit of all our clients.”

Hargraves and his team in New York have extensive experience in complex commercial litigation and arbitrations across many industries, including reinsurance. He also has the unique distinction of being admitted to practice across three continents: before the Courts of the State of New York, U.S. Court of Appeals (Second and Third Circuits), and U.S. District Court for the Southern District of New York; High Court of Justice of England and Wales; and Supreme Court of Queensland, High Court of Australia and Federal Courts of Australia.

According to Freeborn’s Co-Managing Partner Michael A. Moynihan, Freeborn has been able to maintain its independence and stature in a rapidly evolving profession by focusing on its strengths and expanding opportunistically from its legacy offices in Illinois. This is a testament to the firm’s dedication to its cultural identity, which enables it to attract well-credentialed attorneys with similar values.

“Our combination with Hargraves is a great example of our philosophy on growth,” Moynihan said. “We believe that practicing together with attorneys who share similar values produces superior legal results and best serves our clients. We anticipate additional expansion in other key markets for the firm.”

Freeborn plans to expand the New York office’s practice areas to include real estate, where the firm will draw on its existing national footprint to serve investors and developers in the multistate region in and around New York, and corporate law, where Freeborn will leverage its considerable experience with buyers and sellers of varying sizes to service clients with merger and acquisition needs in this region.

The combination will be complete on March 1, 2017. At that time, Freeborn will have four offices: Chicago; Springfield, Ill.; Richmond, Va.; and New York.

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Fitch, Even, Tabin & Flannery LLP will present a free one-hour webinar, “Fueling Your Business Strategy with Patents,” featuring Fitch Even attorneys Allen E. Hoover and George N. Dandalides.

The webinar will take place on Wednesday, March 15, 2017, at 9:00 am PST / 10:00 am MST / 11:00 am CST / 12:00 noon EST.

In its invitation, Fitch Even asks: Do you know why your competitors are obtaining all those patents? What value does a patent bring, and how do you leverage it? Patents can provide a wide range of potential benefits, from market protection to licensing to defensive value—as well as other key benefits you may not be aware of. Geared toward IP practitioners as well as business owners, our webinar will cover the following topics and more:

• What a patent is, and why, when, and how to get one
• The many potential benefits of patent protection
• Why and how to enforce a patent, and what to expect
• Timetable and costs

CLE credit has been approved for California and Illinois and is pending in Nebraska. Other states may also award CLE credit upon attendee request.

Following the live event, a recording of the webinar will be available to view for one year at www.fitcheven.com.

Register for the webinar.

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The National Association of Corporate Directors has published the 2017 edition of the NACD Director’s Handbook on Cyber-Risk Oversight and made it available for free downloading.

The book is constructed around five core principles designed to enhance the cyber literacy and cyber-risk oversight capabilities of directors of organizations of all sizes and in all industries, according to NACD.

This handbook provides

• foundational principles for board-level cyber-risk oversight;
• insight into management of cyber-risk oversight responsibilities; and
• tools to improve and enhance boardroom practices.

Download the handbook.

Kim Technologies will present a seminar titled “Digital Disruption – Impacts for Corporate Legal Departments” on March 21, 2017 for corporate counsel and executives.

The complimentary event will be at Columbia University’s main campus in New York City, beginning with a buffet breakfast at 8:30 a.m. The main program will be from 9 a.m. to 12:30 p.m.

Dr. Art Langer, director of Columbia University’s Center for Technology Management, will discuss digital disruption in the 21st Century.

Bjarne Tellman, SVP and general counsel of Fortune 100 company Pearson PLC, will discuss the vision for a transformed legal service.

Karl Chapman, CEO of Riverview Law, will talk about moving from a technology-enabled to technology-led legal service delivery model.

And Susan Hackett, LEL, former SVP and GC of Association of Corporate Counsel (ACC), will host a moderated discussion involving in-house counsel.

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Bio-Rad Laboratories has agreed to pay $3.5 million in legal fees for the team that represented former general counsel Sanford Wadler during a whistleblower retaliation lawsuit Wadler brought against his former employer, reports MassDevice.com.

The agreement came after a federal jury in California awarded Wadler $11 million in the lawsuit he brought against Bio-Rad. The jury awarded Wadler $2.9 million in back pay and stocks and $5 million in punitive damages, with the back pay award slated to be doubled, bringing the total award to $10.8 million, reports Sarah Faulkner.

“Wadler, who was fired in 2013, alleged that he was let go right before the company was planning to present findings from a bribery investigation in Russia, Thailand and Vietnam. Wadler accused the company of stonewalling his efforts to uncover evidence of similar bribery in China,” Faulkner writes.

Writing about the case on the website of Baker Donelson, shareholder Robert E. Hauberg Jr. explains that the court had ruled Wadler could use as evidence otherwise privileged materials, because the Sarbanes-Oxley Act’s protection of whistleblowers pre-empted the attorney-client privilege. (See “Whistleblower General Counsel Prevails Through Use Of Attorney-Client Privileged Information.”)

Read the MassDevice.com article.

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Textron Systems will present a webinar demonstrating how remote sensing and geospatial mapping products can be employed to quickly respond to an evolving oil spill.

The event will be on Thursday, March 16. 2017, beginning at 1 p.m. EST.

“Remote sensing and geospatial data play a pivotal role in disaster management allowing responders to analyze the overall situation on a large scale and continually monitor events using satellite imagery and real-time ground truth,” Textron says on its website. “In the case of the Gulf Oil Spill, remote sensing played a critical role in tracking the movement of the oil slick on the ocean surface and its eventual penetration into sensitive coastal areas. This presentation will demonstrate how remote sensing and geospatial mapping products can be employed to quickly respond to an evolving crisis situation.”

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Determine Inc. has posted a complimentary on-demand webinar titled “Getting Global in Your View of Contracts.”

The webinar features Tim Cummins, CEO of the International Association for Contract & Commercial Management. Other speakers are Kal Patel, senior director CLM Professional Services of Determine, and Constantine Limberakis, vice president of product marketing with Determine.

On its website, Determine says the webinar discusses what impacts the coming year will have, including how best-in-class companies use contract management to prepare for the increased volatility of an ever-changing global business environment.

The webinar covers:

• Changes impacting contract management and improving collaboration
• Addressing what organizations have done to pave the path for change
• The role technology plays in managing uncertainty

Watch the on-demand webinar.

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