Oklahoma City hires private law firm for union talks
Legal Topics | 2010/02/25 17:17

Oklahoma City Council members hired a private law firm Tuesday to lead upcoming contract negotiations with the city’s police and firefighter unions.

The firm, McAfee and Taft, was hired in part because negotiations with the unions have gone poorly in recent years.

"It’s just broken,” Ward 4 Councilman Pete White said of recent negotiations with the public safety unions.

Two of the firm’s labor attorneys will be paid $225 an hour each to lead negotiations with the unions for the next fiscal year, according to a contract council members unanimously approved Tuesday.

City officials hope the arrangement helps improve a damaged relationship with the public safety unions.

"It’s just to put a new face on it,” White said. "The people that do the hardest jobs we have in this city are the police department and fire. For the relationship to be this acrimonious ... is not acceptable.”

City attorneys handled past negotiations and will assist with the upcoming negotiations.



Obama nominates Berkeley prof to appeals court
Headline Legal News | 2010/02/25 17:16

Goodwin Liu, 39, the son of Taiwanese immigrants, learned English in kindergarten and later became an honors graduate at Stanford and a Rhodes Scholar. He has taught at Berkeley since 2003 and was named associate dean of the law school in 2008.

He also worked as a law clerk to Supreme Court Justice Ruth Bader Ginsburg and as a special assistant to the deputy secretary of the U.S. Department of Education.

Liu is one of two Asian Americans nominated by Obama to the federal appeals courts, which now have no active Asian American judges. The Ninth Circuit handles federal cases from California and eight other Western states and has three vacancies among its 29 authorized judgeships.

"Goodwin Liu is an outstanding teacher, a brilliant scholar and an exceptional public servant," said the law school's dean, Christopher Edley.

The nomination also won praise from Sen. Barbara Boxer, D-Calif., and from Tom Campbell, a UC Berkeley business professor and former congressman who is seeking the Republican nomination to run against Boxer.

Campbell said Liu would bring "scholarly distinction and a strong reputation for integrity, fair-mindedness and collegiality to the Ninth Circuit."

But Senate confirmation may not be routine. Some of Liu's positions could draw conservative opposition, which has held up other judicial nominees.

Liu testified in January 2006 against President George W. Bush's nomination of Samuel Alito to the Supreme Court, saying Alito's judicial opinions were well-reasoned but indicated a tilt in favor of prosecutors and the government. He did not testify against Chief Justice John Roberts but told a reporter before the 2005 confirmation hearing that he thought Roberts would move the court to the right.



Failed mobile phone dealer ran law firm, say staff
Areas of Focus | 2010/02/22 18:13

The former owner of two failed companies was the person in “de facto” charge of Cheadle-based law firm Wolstenholmes prior to its collapse in December, Crain's has discovered.

Ex-staff who spoke on condition of anonymity said that Wasim Saddique, who was brought in by former managing partner Nasser Ilyas as consultant to advise the firm, was effectively running it. Saddique is also said to have brought in his own people to head key functions in the firm, such as accounts and IT.

Saddique and another consultant, Mario Cardinali, conducted interviews with potential new recruits and instructed money to be transferred from client accounts to the office account. It is not clear whether the firm carried out background checks on either of them.



State won't pay legal fees for computer lawsuit
Headline Legal News | 2010/02/22 18:12

The state Finance Department has refused to pay the legal fees of a Montgomery law firm that was hired by a legislative oversight committee to stop the state from proceeding with an unbid $13 million computer contract.

State Comptroller Thomas White has written to House Clerk Greg Pappas saying the committee didn't have the authority to hire the firm of Thomas, Means, Gillis & Seay. White said the state can't pay the $26,740 bill submitted by the law firm

The Legislature's Contract Review Committee hired the firm to represent the panel in a lawsuit seeking to stop the unbid contract signed by Gov. Bob Riley with Paragon Source LLC. The lawsuit was dismissed by a Jefferson County judge.



UBS Lawyer Schmid Takes Job at Swiss Law Firm
Court Watch | 2010/02/09 16:46

Bernhard Schmid, the head of UBS AG’s legal department, left Switzerland’s biggest bank by assets to become a partner at a Zurich law firm founded by a former banker.

Schmid joined Kuoni Attorneys at Law on Feb. 1 to help the company increase its work advising banks, founding partner Wolfram Kuoni said by telephone yesterday. Schmid, who is Swiss, was one of three lawyers to share former General Counsel Peter Kurer’s workload when Kurer became chairman of the bank in 2008.

UBS paid a $780 million fine and disclosed the names of 255 account holders in February 2009 to avoid criminal prosecution in the U.S. on a charge that it helped thousands of wealthy Americans evade taxes. The bank hired Markus Diethelm from Swiss Reinsurance Co. to replace Kurer as general counsel in 2008.

Schmid is “wonderful for a firm like mine to tap into the banking market. He has an outstanding track-record,” Kuoni said in a telephone interview yesterday, adding that he wants to expand the practice’s work advising banks “one tier below” UBS and Credit Suisse Group AG, Switzerland’s biggest bank by market value.



New SEC-Bank of America settlement proposal faulted
Legal Topics | 2010/02/09 16:45

A federal judge who rejected the government's first bid to settle civil charges against Bank of America Corp. showed little enthusiasm Monday for a new proposed settlement.

U.S. District Judge Jed Rakoff sharply questioned the merits of the latest proposal, which calls for the company to pay $150 million to resolve allegations that it lied to shareholders at the height of the financial crisis about its pending acquisition of brokerage Merrill Lynch.

Last fall, Rakoff threw out an initial, $33-million settlement between the company and the Securities and Exchange Commission, calling it a "contrivance designed to provide the SEC with the facade of enforcement."

At a hearing Monday on whether he should approve the new proposed deal, Rakoff asked whether the SEC had been forceful enough in the case. He noted the latest proposal, like the first one, would not punish individual Bank of America executives.

The judge referred repeatedly to a lawsuit filed last week in state court by New York Atty. Gen. Andrew Cuomo that deals with much of the same conduct.

Cuomo's case goes further than the SEC's in seeking to punish Bank of America's former chief executive, Ken Lewis, along with another executive as well as the bank itself. Although Rakoff poked fun at the angry rhetoric in Cuomo's complaint, the judge said it put forth "a great many allegations that seem far more suggestive of potential fraud than anything presented by the SEC."

"Weren't you operating from the same evidence?" Rakoff asked the SEC's lawyer.

The SEC initially accused Bank of America of lying to shareholders about its plan to pay billions of dollars in bonuses to Merrill Lynch employees after its acquisition of the brokerage was completed. More recently, the SEC also alleged that the Charlotte, N.C., banking giant did not disclose the size of Merrill's losses before a shareholder vote on the acquisition.

Cuomo last week said that his new case was working in concert with the SEC, which announced its settlement minutes before Cuomo announced his lawsuit. But rifts between Cuomo and the SEC were clear Monday, particularly regarding Cuomo's allegation that Bank of America fired a lawyer because he questioned the withholding of information from shareholders.



WaMu shareholders get their voice in bankruptcy
Legal Topics | 2010/01/31 02:23

Shareholders of Washington Mutual Inc will have a voice in the company's bankruptcy after a judge refused on Thursday to disband their committee, which Washington Mutual said would complicate the case.

The U.S. Trustee, who plays an oversight role in bankruptcy, appointed the committee earlier this month after being petitioned by 3,500 shareholders. The company immediately asked the court to disband it.

The committee will be able to speak with a unified voice and hire professionals, who would be paid by the company.

Washington Mutual has said since it filed for bankruptcy in 2008 that it is hopelessly insolvent, and therefore there is no need for an official committees of shareholders.



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