Source: http://news.feedzilla.com/en_us/stories/law/video/350417829?client_source=feed&format=rss
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The US Supreme Court held this morning that the Civil Service Reform Act (CSRA) precludes district court jurisdiction over Elgin's claim that his removal from federal service was based on an unconstitutional statute. The procedural route prescribed by the CSRA is by appeal to the Merit Systems Protection Board (MSPB) and, if dissatisfied with the result, appeal to the Federal Circuit, whose decisions in turn are reviewable by the Supreme Court.
Elgin v. Dept of Treasury (US Supreme Ct 06/11/2012)
A federal statute bars employment in the executive branch of male citizens who failed to register for the draft. Elgin, who had been discharged from his job, first challenged the decision before the MSPB - arguing that the statutory bar was unconstitutional - but an ALJ dismissed his case on the ground that the MSPB lacked authority to review the constitutionality of a federal statute. Rather than appealing from that decision, Elgin sued in federal district court.
The US Supreme Court held that the district court lacked jurisdiction because it is "fairly discernable" from the CSRA's text, structure, and purpose that Congress precluded district court jurisdiction over Elgin's claims. Based on CSRA's text and structure, there is no exception for constitutional challenges to federal statutes. If the MSPB lacks power to hear such claims, they can be meaningfully addressed by the Federal Circuit.
The DISSENT argued that Elgin's "constitutional claims are a far cry from the type of claim that Congress intended to channel through the [MSPB]."
Source: http://www.lawmemo.com/blog/2012/06/no_district_cou.html
Source: http://jurist.org/paperchase/2013/12/syria-iraq-egypt-deadliest-nations-for-journalists.php
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Source: http://legaltalknetwork.com/podcasts/tech-experts/2013/08/third-party-risk-spotlight-anti-corruption
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The Wall Street Journal carried a column on November 11, 2013, “Big Law Mergers Questioned," that contained two blinding glimpses of the obvious – one explicit, one implicit. The explicit one was straightforward, yet seemed to elude the understanding of the writer: that in pursuing mergers to create ever-bigger organizations, law firms are simply following the paths of their clients. We saw this in the 1930s and 1940s and later when unions became larger in order to do battle with management. Today law firms are combining in order to be more respected, better received, and perceived as players in the corporate world. Small law firms supposedly can’t play in the same ballpark as a very large customer (corporate America).
Does merging law firms to make them bigger actually make them better? The answer is “yes” only when the parties have thought through what they want to accomplish and what synergies exist between them. One has to be old enough to recall that corporate America once thought that “bigger was better” when viewing itself. Then these conglomerates seemed to collapse of their own weight. The phrase, “getting back to core competencies,” became the watchword and large enterprises began breaking up into smaller units.
That’s where we get the second “blinding glimpse” – the smallest unit in a law firm is the lawyer. And corporate client after corporate client in the Journal article said that the individual lawyer is most important to them. “We hire lawyers, not law firms,” the GC of Hewlett Packard said flatly. There is some disagreement over this assertion.
Theoretically teams institutionalize the work done for a given client as they involve other firm lawyers in the delivery of legal services, even if one lawyer remains the client’s primary contact. But in a megafirm of thousands of lawyers, team members are interchangeable.
When you have a problem with your car, do you contact GM or Toyota headquarters, or the friendly mechanic at your neighborhood garage? Even neighborhood garages grow, but their size is infinitesimal compared to GM or Toyota. There is a limit to "bigger is better" beyond which "core competencies" begin to falter. Firms are kidding themselves if they think bigger by itself makes them better. And clients, often wanting to be close to the center of the law firm, will still engage a smaller, but yet large (regional) law firm.
Source: http://feeds.lexblog.com/~r/LawBizBlog/~3/hX1Kjo68DP0/
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Linda Popky, marketing consultant of Leverage2Market, writes her Top of Mind piece this week about a serious marketing blunder, as follows:
“.... (T)he local Orchard Supply Hardware (OSH) store featured a great buy on a tabletop propane heater....There was only one problem. A propane heater naturally requires propane to work. And even though OSH carries small portable propane tanks, they didn't have the ones in the proper configuration to fit the heater. Whoops.
“So making this (purchase) work required an additional trip to ... Home Depot (to get the correct propane tank) ... Driving your customers to visit your competition to complete their product experience with you (is) not the best way to keep the flames of loyalty burning bright.”
As Linda suggests, make it easy to do business with you, not hard. Examples include answering phone calls quickly (as on the first ring) and messages returned promptly (no later than the next day. Being astute in The Business of Law® will create loyal clients.
Source: http://feeds.lexblog.com/~r/LawBizBlog/~3/8rObHq0Twzk/
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In Trezziova v. Kohn (In re Herald, Primeo & Thema Sec. Litig.), No. 12-156-cv, 2013 U.S. App. LEXIS 19132 (2d Cir. Sept. 16, 2013), the United States Court of Appeals for the Second Circuit affirmed the dismissal of state law class action claims alleging, among other claims, that defendants had aided and abetted Bernard Madoff Investment Securities’ (“BMIS”) Ponzi scheme. Plaintiffs were investors in the defendant investment companies and funds, which had, in turn, invested large sums of money in BMIS. The Court held the claims were precluded by the Securities Litigation Uniform Standards Act of 1998 (“SLUSA”), 15 U.S.C. § 78bb(f), even though plaintiffs did not actually purchase any “covered securities” under SLUSA and did not style their claims as securities fraud allegations. The fact that plaintiffs’ allegations centered on purported sales of covered securities by BMIS was sufficient to trigger SLUSA.
Plaintiffs brought various state law claims against defendants JPMorgan Chase & Co. and Bank of New York Mellon, both of which had provided banking services to BMIS. Plaintiffs alleged that the banks had known about BMIS’ securities fraud, chosen not to report the fraud, and instead assisted BMIS in the commission of the fraud. The claims, which included claims for civil conspiracy, aiding and abetting, conversion, breaches of fiduciary duty and unjust enrichment, were all purported state law claims. Defendants moved to dismiss.
The United States District Court for the Southern District of New York granted the motion to dismiss, holding that the claims were precluded by SLUSA. SLUSA generally bars plaintiffs from bringing actions based on state common or statutory law on behalf of more than fifty people “in connection with the purchase or sale of a covered security.” SLUSA adopts the definition of “covered security” in the Securities Act of 1933 as one that is “listed, or authorized for listing, on [the national exchanges]” or one that is “issued by an investment company that is registered . . . under the Investment Company Act of 1940.” Though plaintiffs’ claims sprung from their investments in what were actually “foreign feeder funds” and not “covered securities,” the court held that SLUSA nevertheless applied because BMIS’ investment strategy involved the purported purchase and sale of “covered securities.” Since plaintiffs’ claims were “integrally tied” to BMIS’ fraud, the district court held they were precluded under SLUSA.
The Second Circuit affirmed, agreeing with the district court on two key issues. First, the Court affirmed the district court’s holding that the fact that BMIS had only pretended to execute trades of covered securities, and had actually invested plaintiffs’ money in foreign feeder funds, did not prevent plaintiffs’ claims from being precluded by SLUSA. Defendants’ potential liability, the Court observed, hinged not on the investment in the feeder funds, but on defendants’ alleged assistance of BMIS’ Ponzi scheme, which involved purported investments in “covered securities.” Next, the Court affirmed that plaintiffs’ allegations were precluded by SLUSA even though plaintiffs had not framed their allegations as securities fraud claims. The Court noted that SLUSA requires it to look past the pleadings to the realities of the underlying claims. SLUSA does not allow plaintiffs to avoid preclusion merely by omitting references to federal securities laws. Because the complaints essentially alleged defendants were complicit in BMIS’ securities fraud, and were thus integrally tied to that securities fraud, the allegations were “more than sufficient” to trigger SLUSA preclusion.
The Second Circuit’s decision here clarifies the scope of actions that fall within the ambit of, and may be precluded by, SLUSA. Plaintiffs attempting to bring securities fraud class actions will not be able to avoid SLUSA preclusion by alleging only state law claims. This decision brings courts closer to effectuating the purpose of SLUSA, and requiring plaintiffs bringing securities fraud class actions to comply with the heightened pleading requirements of the Private Securities Litigation Reform Act of 1995.
For further information, please contact John Stigi at (310) 228-3717 or Robin Achen at (213) 617-5579.
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Source: http://legaltalknetwork.com/podcasts/paralegal-voice/2013/08/paralegal-proofreading-tips/
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Ed discusses what does and doesn't change about the business model for lawyers.
Source: http://feeds.lexblog.com/~r/LawBizBlog/~3/67BLZng94eQ/
Federal agencies are proposing new rules for handling gun buyers' background checks, in changes the White House says will "keep guns out of potentially dangerous hands." The changes include a clarification of rules barring firearm possession due to mental health problems.
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The Juice has blogged about people stealing entire ATMs before. But this? As reported by thebrooklynpaper.com:
A lowlife swiped thousands in cash from a Third Avenue money machine on Dec. 27 — then doused the dollar dispenser in chlorine, cops reported.
Security cameras caught the villain breaking open the automatic teller between 79th and 80th streets at 3 am and taking $8,000 from inside — before pouring bleach all over the machine, cops said.
Who knew? Looks like at least one ATM manufacturer has some retooling to do!
Source: http://rss.justia.com/~r/LegalJuiceCom/~3/EHmw9ydAOEw/sd-4.html
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Source: http://www.law.com/jsp/nlj/PubArticleNLJ.jsp?id=1202631180028&rss=rss_nlj
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Source: http://legaltalknetwork.com/podcasts/2013/04/nourishing-creativity-with-constraints
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Source: http://legaltalknetwork.com/podcasts/legal-toolkit/2012/10/choosing-a-law-firm-entity-structure/
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The Justice Department will answer a challenge to a provision in the law requiring most employers that offer health insurance to include birth control at no cost. A group of Catholic nuns objects to the provision, and they won a temporary reprieve from Supreme Court Justice Sonia Sotomayor.
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Retail sales of recreational marijuana are now legal in Colorado. Host Michel Martin looks at the highs, and possible lows of the new law with Dana Coffield of The Denver Post, and The Sacramento Bee's Peter Hecht, author of Weed Land.
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Source: http://www.npr.org/2014/01/02/259120109/colorados-pot-law-fires-up-this-week?ft=1&f=1070
In 2005, Lynn Stewart was convicted of helping blind Egyptian cleric Sheik Omar Abdel Rahman communicate with followers while he was serving a life sentence for plotting to blow up New York City landmarks.
It was an easy day at the office for the police officers assigned to this caper. As reported by The Daily Mail:
It was an early festive gift for John Dacre who had called in ‘special branch’ after the [Christmas] trees and dozens of holly wreaths and festive decorations went missing from his nursery in Spenborough, West Yorkshire.
The thieves had even stolen two of his trollies to cart off their loot.
You were given a hint as to how they were caught…
… once Mr Dacre had spotted the incriminating pine needles on the ground the police were soon on the case.
Together they followed the trail along the Spen Valley Ringway and across fields, stopping at a house in Firthcliffe where the officers found the trees [dumped in a garden].
Ironically, the stolen trees were “supposed to be “low needle drop” trees which don’t shed so easily.” Mr. Dacre was clearly thrilled with the outcome.
‘The police were absolutely brilliant. We walked together following this trail through the pouring rain and I joked to them that all we needed was a big magnifying glass and then we’d be real supersleuths!’
The thieves, not so much. See, the police didn’t just find the stolen items at the house.
‘As an extra present, officers also found a cannabis farm at the address.’
Hmm. Perhaps the owners sampled the crop earlier that day? Here’s the source.
Source: http://rss.justia.com/~r/LegalJuiceCom/~3/H2_Cxv1OZvI/s-14.html
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Source: http://legaltalknetwork.com/podcasts/kennedy-mighell-report/2012/08/technology-enhanced-television/
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Source: http://legaltalknetwork.com/podcasts/ringler-radio/2012/12/the-fiscal-cliff-impact/
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Source: http://legaltalknetwork.com/podcasts/un-billable-hour/2012/08/the-ipad-practice/
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Source: http://legaltalknetwork.com/podcasts/kennedy-mighell-report/2013/02/digital-cameras-in-law/
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On Friday October 3, 2013, Governor Brown signed into law AB 1412, which provides full relief for individuals affected by the decision in Cutler v. Franchise Tax Board, where the California Court of Appeal held that the California tax incentives relating to the sale of qualified small business stock discriminated against interstate commerce and were therefore unconstitutional.
Under the new legislation, which is retroactive in application, all shareholders selling qualified small business stock (QSBS) will qualify for the gain deferral and 50% exclusion incentives, regardless of the percentage of the corporation’s assets used in the conduct of business in California or the percentage of corporation’s California payroll.
The Franchise Tax Board had previously taken the position, expressed in FTB Notice 2012-03, that the court’s decision in Cutler made California’s entire QSBS statute invalid and unenforceable, and, as a result, all QSBS gain exclusions and deferrals previously allowed under California law became invalid. Taxpayers who previously took advantage of California’s treatment of QSBS in years still open for assessment under the 4-year statute of limitations rule (generally 2008 and later) were therefore required to recompute their taxable income for each affected year and file amended returns without excluding or deferring gains from the disposition of QSBS. With the enactment of AB 1412, there is now full (retroactive) relief for individuals affected by the Cutler decision.
For taxpayers who filed their 2008 – 2012 tax returns and were contacted by the FTB regarding their QSBS election, the FTB will notify them of the following:
Taxpayers who filed their 2008–2012 tax returns and did not claim the QSBS election may now do so. However, the FTB’s position is that the QSBS must have met the 80% California payroll requirement at the time of acquisition to claim the 50% gain exclusion or deferral in order to file an amended return (claim for refund) if the statute of limitations is open.
Information from the FTB can be found here.
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Source: http://legaltalknetwork.com/podcasts/un-billable-hour/2012/08/the-ipad-practice/
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Source: http://legaltalknetwork.com/podcasts/law-technology-now/2013/04/2013s-trade-show-tech-trends-2/
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Source: http://blog.simplejustice.us/2013/07/12/i-spoke-too-soon.aspx?ref=rss
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