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Chicago law firms expand in Charlotte
Legal Business | 2008/01/10 05:04
In 1998, Chicago law firm Mayer Brown established an office in Charlotte to be close to that city's bankers. A decade later, its local rivals are trying to muscle in on what has become a lucrative financial-services center.

Winston & Strawn became the latest to jump into the heated Charlotte legal market, announcing Wednesday that it hired away six partners from one of the city's leading firms, Kennedy Covington Lobdell & Hickman. The Chicago-based law firm anticipates that it will add up to a dozen more lawyers from Kennedy Covington, said Thomas Fitzgerald, Winston & Strawn's managing partner.

Charlotte's banking giants, Bank of America Corp. and Wachovia Corp., have turned this drowsy Sunbelt city into a financial powerhouse second only to New York. Chicago once competed for such financial stature when it was home to two of the nation's biggest banks, Continental and First Chicago.

But pro-small-bank laws in Illinois placed so many restrictions on big institutions that expansion became difficult and resulted in today's fragmented Chicago banking market. Consolidation may be on its way, though, after Bank of America acquired LaSalle Bank last year.

In fact, Bank of America's growing presence in Chicago was one of the factors that led Winston & Strawn to target Charlotte for expansion, Fitzgerald said. The firm counts both Charlotte banks as clients in its corporate finance and lending practice but wanted to deepen those ties.

"We believe that our existing relationship with those clients will be enhanced with these individuals," Fitzgerald said. "This was an opportunity to bring additional depth and strength to our lending practice."

To build a stronger business relationship with the Charlotte banks, it helps to have lawyers in the city, said Jay Monge, a partner at Mayer Brown, who relocated to Charlotte from New York in 1999. The year before, Mayer Brown had acquired a boutique tax practice in Charlotte that did a lot of work for Bank of America's predecessor, NationsBank. (In 1998, NationsBank acquired San Francisco's BankAmerica, which had earlier purchased Continental.)

Katten Muchin Rosenman followed Mayer Brown to Charlotte, opening an office in 1999. There was little expansion to Charlotte after that, as Chicago firms looked overseas at the beginning of the decade. Some firms are also reluctant to move to Charlotte because the lawyers there generally charge lower rates than those in Chicago.

But the growth of the Charlotte banks has powered the city's economy, spurring demand for legal services in other areas such as real estate and litigation. Other financial institutions also have sprung up to service the banks, further diversifying Charlotte's financial-services industry.

"For multioffice firms that aspire to have a significant financial practice, Charlotte is a critical element," Monge said.

Indeed, last year three national law firms, including Chicago's Sonnenschein Nath & Rosenthal, opened offices in Charlotte. The others were Atlanta's King & Spalding and New York-based Dewey Ballantine, now Dewey & LeBoeuf.

"It's been a very good legal market for us," said Elliott Portnoy, chairman of Sonnenschein, which recently added a group of litigators in Charlotte.

Winston & Strawn becomes the second national firm to move into Charlotte in 2008, following Atlanta's Powell Goldstein. The moves send a strong signal that the demand for financial-services lawyers in Charlotte has not abated, even with the cloudier outlook for the financial-services industry brought on by the meltdown in the subprime mortgage market.

"This short-term turbulence is not going to affect our ability to build a long-term office," Fitzgerald said.

The more firms that move to Charlotte, the more it helps dispel any lingering notion among lawyers of Charlotte as a sleepy backwater, Monge said. To any naysayers, he likes to boast that Charlotte, unlike Chicago, has a Dean & DeLuca gourmet food store. More than one.


Banks Targeted by Italy's First Class-Action Suit
Class Action | 2008/01/10 03:56
Consumer group Adusbef plans to fight Italian banks' use of a certain type of compound interest on loans, in what could lead to Italy's first class-action lawsuit, a statement from the group said.

A recently enacted law will allow class-action lawsuits -- commonplace in the countries such as the United States -- to be filed in Italy starting July 2008.

Adusbef, which focuses on financial services matters, wants to take aim at the so-called practice of anatocism, where compound interest is calculated on the initial loan plus interest that is accumulated each time the money comes due.

"We want to start from the most hated banking practice, this form of usury that is known as anatocism," Adusbef said.

That is opposed to using simple interest, in which only the interest on the original money borrowed is added.

Although banned by the Italian civil law code, Italian banks have been using compound interest for over 50 years, Adusbef said. No-one at Italian banking association ABI was immediately available for comment.



2 Lawyers Quit High-Profile Bribery Case
Law Center | 2008/01/10 02:07
Two members of a law firm that was searched by federal agents last month have resigned as defense attorneys in the high-profile bribery case involving wealthy lawyer Richard "Dickie" Scruggs. Now a third lawyer in the case is asking to do the same.

U.S. District Judge Neal Biggers on Tuesday granted the request by Joey Langston and Billy Quin of the Langston Law Firm to withdraw as attorneys for Scruggs, according to court records filed Tuesday in federal court in Oxford.

Scruggs, his son Zach and three others were indicted Nov. 28 on charges they conspired to bribe a judge in a case involving disputed fees related to lawsuits from Hurricane Katrina.

On Wednesday, Anthony Farese, an attorney for Zach Scruggs, also asked to withdraw from the case. He said in court papers that Zach Scruggs has "terminated his services" and intends to hire a new lawyer.

Biggers declined the request because the younger Scruggs has not yet named a replacement for Farese.

The elder Scruggs, a brother-in-law of former Sen. Trent Lott, is best known for making millions from tobacco litigation.

One of Langston's former law partners, Timothy Balducci, pleaded guilty Dec. 4 to conspiracy in the bribery case and is helping investigators. He had been one of those indicted along with Scruggs and his son.

On Dec. 10, the FBI searched the Langston Law Firm. FBI officials would not say what they were looking for, but Farese said at the time that they took records from cases that Balducci had worked on before he left the firm.

Quin and Langston did not respond to several messages left Tuesday by The Associated Press. John Keker, another attorney for the elder Scruggs, would not comment on why the two would no longer be working on the case.

In a separate case, a judge ruled Wednesday that an insurance company can question Richard and Zach Scruggs about their handling of leaked documents in a Hurricane Katrina insurance case.

Richard Scruggs wore "two hats" as the employer and lawyer for two key witnesses in that case, U.S. District Judge L.T. Senter Jr. ruled.

After Hurricane Katrina, Scruggs announced that sisters Cori and Kerri Rigsby, former employees of a State Farm contractor, were helping him build cases against insurance companies over their handling of storm claims. The sisters gave him thousands of internal State Farm records.

Scruggs hired the Rigsby sisters as consultants for $150,000 a year and served as their lawyer. State Farm wants to know more about those relationships.

Scruggs has said the leaked records proved that State Farm fraudulently denied the claim of policyholders Thomas and Pamela McIntosh, whose Biloxi home was destroyed by the storm on Aug. 29, 2005.

Also on Wednesday, attorney Kenneth Coghlan notified Biggers that he intended to represent Richard Scruggs in the bribery case.

Biggers refused to allow Coghlan, however, because the attorney represented another defendant in the case — former state auditor Steven Patterson — before withdrawing last month.

Allowing Coghlan to represent Scruggs could be a conflict of interest if one defendant testifies against the other, Biggers said.



De Beers Diamonds Settles Class Action Lawsuit
Class Action | 2008/01/10 01:57

If you bought diamonds over the last decade, you might be entitled to some money back.

The mining company De Beers is settling a $295 million class action lawsuit.

De Beers was accused of fixing diamond prices and monopolizing the market. The case involves diamonds bought from 1994 through March of 2006.

The amount of money you can get depends on how much you paid an the quality of the diamonds.

https://www.diamondsclassaction.com



Supreme Court to hear Indiana voter ID law
Breaking Legal News | 2008/01/09 07:47
Democrats and Republicans square off before the Supreme Court Wednesday over a law that requires voters to produce photo identification before they can cast a ballot. The strictest voter ID law in the nation was passed by Indiana's Republican-led legislature on party-line votes and signed by its Republican governor in 2005 as a way to deter voter fraud. The Bush administration supports Indiana's law.

Democrats who are challenging the law say it uses prevention of fraud as a pretext to discourage elderly, poor and minority voters — those most likely to lack proper ID and who tend to vote for Democrats.

Opponents say there have been no Indiana prosecutions of in-person voter fraud — the kind the law is supposed to prevent.

A federal judge who upheld the voter ID law pointed out that opponents were unable to produce evidence of a single, individual Indiana resident who had been barred from voting because of the law.

Courts have upheld voter ID laws in Arizona, Georgia and Michigan, but struck down Missouri's. Wednesday's case should be decided by late June, in time for the November 2008 elections.

The justices could use the case to instruct courts on how to weigh claims of voter fraud versus those of disenfranchisement.

The Supreme Court was bitterly divided, 5-4, in 2000 in Bush v. Gore, the case that clinched the presidential election for George W. Bush.

The consolidated cases are Crawford v. Marion County Election Board, 07-21, and Indiana Democratic Party v. Rokita, 07-25.



Guilty plea in Middletown fatal shooting case
Court Watch | 2008/01/09 06:50
A 28-year-old Hartford man has accepted a plea deal in a fatal shooting outside a Middletown barbershop in 2006.

Angel DeThomas was one of four people in a car found speeding from the crime scene after Anthony Hall was shot and killed.

Last year he rejected a judge's offer of 40 years in prison if he pleaded guilty to the fatal shooting. DeThomas changed his mind Tuesday as the first day of jury selection in his trial came to a close.

The plea deal means DeThomas will likely receive 34 years in prison when he is sentenced March 4th.

Police say the shooting was in retaliation for the robbery and assault of DeThomas' brother hours earlier.


Craig Continues Minnesota Legal Appeal
Law Center | 2008/01/09 06:47
Seeking to have his guilty plea in a bathroom sex sting erased, the attorneys for Sen. Larry Craig of Idaho argue in a new court filing that the underlying act wasn't criminal because it didn't involve multiple victims.

An appeals brief filed Tuesday contends that Minnesota's disorderly conduct law "requires that the conduct at issue have a tendency to alarm or anger 'others'" — underscoring the plural nature of the term.

Craig's brief goes on to cite other convictions that were overturned because the multiple-victim test wasn't met. His lawyers apply the same logic to his case.

The Republican senator pleaded guilty in August after his arrest two months earlier at the Minneapolis airport. It was part of a broader undercover push targeting men soliciting sex in public restrooms.

Craig was arrested June 11 by an undercover officer, Sgt. Dave Karsnia, who said Craig tapped his feet and swiped his hand under a stall divider in a way that signaled he wanted sex. Craig has denied that, saying his actions were misconstrued.

"Appellant's alleged conduct in this case affected only a single individual — Sergeant Karsnia," the Craig brief says. "It did not — and could not affect 'others' as the disorderly conduct statute requires, and therefore, does not satisfy that element of the statute."

The brief also argues that Karsnia himself could not have been offended by the alleged conduct because "he invited it." The alleged conduct, Craig's lawyers added, doesn't rise to the level of being "offensive, obscene, abusive, boisterous or noisy."

Craig's earlier attempt to withdraw his plea was turned down by a district court judge, and the case is now before the Minnesota Court of Appeals.

Besides attacking the law he was prosecuted under, Craig's legal team argues that the hand signal allegedly used to communicate a desire to engage in sexual conduct would be constitutionally protected speech. They also say the plea is technically flawed because it lacked a judicial signature.

Patrick Hogan, a spokesman for the Metropolitan Airports Commission, which oversees the Minneapolis airport and which brought the charges, said he was confident the guilty plea will stand.

"Facts are resilient, and Sen. Craig's continued, transparent efforts to escape them don't change the truth of his behavior in an airport restroom or the fact that he admitted guilt last August," Hogan said.

Prosecutors have 45 days to respond, and then the case will be scheduled for oral arguments. Once heard, a ruling is required within 90 days.

Craig has said he will finish his term, which ends in January 2009.



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Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website, lawyer website templates and help you redesign your existing law firm site to secure your place in the internet.
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