Atlanta law firm King & Spalding LLP has won a $700 million judgment for Chevron Corp. in an arbitration between the energy giant and the government of Ecuador.

An international tribunal ruled that Ecuador must pay damages for delaying court rulings on commercial disputes with Chevron subsidiary Texaco Petroleum Co. for more than a decade.

The ruling by the Permanent Court of Arbitration in The Hague resolves some Texaco claims against the Ecuador government dating as far back as 1991.

The court determined that by refusing to rule on Texaco's claims, Ecuador violated international law by breaching an investment treaty with the United States.

The $700 million in damages includes principal and interest dating to Dec. 22, 2006, when Chevron and Texaco initially filed the arbitration. Further hearings will determine whether Ecuador owes more for taxes, interest and costs.

Chevron and other energy companies have additional arbitration actions pending against the Ecuador government. 

Before a federal judge, Justice Department prosecutors will lay out the dirty laundry of the company best known for its elegant Mercedes-Benz autos: a pattern of bribery that for many decades has helped fuel the company's sales and illicitly added millions of dollars to its profits. As a result, the company has agreed to pay $185 million in fines.

According to court papers filed March 24, the company's board 11 years ago adopted an integrity code with anti-bribery provisions. The problem is, Daimler failed to enforce it; many Daimler executives actively resisted it, and improper payments continued until 2008.

The court papers provide a case study of how executives at one of the world's blue chip companies responded when governments said "no" to bribery.

Of course, Daimler, through its subsidiaries, is hardly the first corporate giant to be caught paying off foreign officials to get contracts.

In December 2008, for example, engineering company Siemens AG agreed to pay more than $1 billion in fines in Germany and the U.S. after being accused of bribing officials with suitcases stuffed with money.

Ten years earlier, Germany ratified an international anti-bribery agreement; an implementing law took effect in early 1999.

Russell B. Hill has joined the Orange County office of Sheppard, Mullin, Richter & Hampton LLP as a partner in the firm's Intellectual Property practice group.  Hill most recently practiced at Howrey in Irvine. 

Hill specializes in patent litigation and trials.  He has tried patent cases before the International Trade Commission and in federal district courts, and has conducted several successful appeals to the Federal Circuit.  Hill's technical expertise lies in electronic systems and controls.  He gained this expertise as an aviation radar and RF communication systems chief in the Marines.  Hill has also taught undergraduate mathematics and electronics courses as an adjunct professor.  Hill also has extensive transactional and general counseling experience.  He has successfully formed joint ventures, and negotiated and structured a wide range of domestic and international deals. 

"Russ joins us with an impressive practical and academic background.  His practice is firmly rooted in electrical engineering and the electronic arts, though he also represents clients in a variety of biotechnology, software and mechanical process patent disputes and licensing campaigns.  With Russ, our patent litigation team continues to expand to adeptly handle high-stakes technology matters across a variety of technical disciplines," said Guy Halgren, chairman of the firm. 

"I look forward to joining Sheppard Mullin, a top-notch full service firm with a strong footprint in Orange County, and a solid nationwide presence and reputation," Hill commented.  "I am impressed with the firm's IP practice, the group's successful growth in recent years and firm management's dedication to growing it even further.  I'm excited to be part of a partnership that is transparent and open, which fosters both a collegial culture and an entrepreneurial spirit." 

"Russ is a great fit for us.  He is obviously a well respected patent litigator, but also a quality person.  Russ adds significantly to our patent litigation team and brings a formidable expertise in electrical engineering.  His background complements our patent litigation expertise in Orange County, and supplements our existing EE expertise firmwide," said Carlo Van den Bosch, co-chair of the firm's Intellectual Property practice group. 

Hill’s clients include Electronics for Imaging, Lenovo, Magnecomp and TDK.  Hill received a J.D., Order of the Coif, from University of California, Berkeley, School of Law (Boalt Hall) in 1997, a M.A. from Baylor University, a B.A. summa cum laude, from Chapman University, and a B.S. in Electronics Engineering Technology from Grantham University. 

Sheppard Mullin has 60 attorneys based in its Orange County office.  The firm's Intellectual Property practice group includes 70 attorneys firmwide. 

The Supreme Court ruled on Wednesday that lawyers for people thinking of pleading guilty to a crime must advise their clients who are not citizens about the possibility that they will be deported.

Likening deportation to the punishments of banishment and exile, Justice John Paul Stevens, writing for five justices, said the Constitution guaranteed competent legal advice on at least some collateral consequences of guilty pleas.

“It is our responsibility under the Constitution to ensure that no criminal defendant — whether a citizen or not — is left to the mercies of incompetent counsel,” Justice Stevens wrote.

The vote was 7 to 2, though two justices in the majority would have required only that criminal defense lawyers not say anything false and tell their clients to consult an immigration lawyer if they had questions.

The case involved Jose Padilla, a native of Honduras who has lived in the United States for 40 years, served in the Vietnam War and is a legal permanent resident. Mr. Padilla, a commercial truck driver, was arrested in 2001 after the authorities in Kentucky found more than 1,000 pounds of marijuana in his truck.

Mr. Padilla pleaded guilty to marijuana trafficking, a felony, and received a five-year sentence. He later said he had agreed to the plea based on his lawyer’s incorrect advice that it would not affect his immigration status. In fact, the plea made it all but certain that Mr. Padilla would be deported once he served his time.

The question in the case, Padilla v. Kentucky, No. 08-651, was whether bad legal advice about a collateral consequence of a guilty plea could amount to ineffective assistance of counsel under the Sixth Amendment.

A federal appeals court denied on Thursday Microsoft Corp's request that a full panel of judges rehear arguments in its long-running patent dispute with a small Canadian technology company.

The decision is a blow to the world's largest software maker, which has been embroiled in a dispute with Toronto-based i4i Ltd over a feature in Microsoft's Word application for more than three years.

Microsoft could yet take the case to the U.S. Supreme Court, or make a new request to the appeals court. The company is considering its options, according to a spokesman.

A federal jury awarded i4i $290 million last August after finding that Microsoft had infringed a patent belonging to i4i relating to text manipulation software in the 2003 and 2007 versions of Word, Microsoft's word processing application.

The Lovells law firm plans to close its Chicago office by the end of October, sending 22 lawyers and 25 other employees scrambling to find work.

The London firm is set to merge with Washington-based Hogan & Hartson on May 1, creating one of the world's largest law firms with $1.8 billion in revenue and 2,500 lawyers in 40 offices. But the new firm, to be called Hogan Lovells, will not have a presence in Chicago.
Lovells said it decided to exit the city after 15 years because the performance of the Chicago office has declined in recent years.

In a statement Tuesday, David Harris, Lovells managing partner, said: "[The reinsurance market] is an area which has seen changes in work patterns and the office has been affected by a number of significant conflict situations. Despite the best efforts of partners in Chicago and elsewhere, this has had an impact on the office's overall performance in recent years and the position is not expected to change."

Conflicts and deteriorating performance had contributed to departures from the Chicago office in recent months. The office used to have more than 30 lawyers.

Yet, legal observers in Chicago said they thought the merger with Hogan would save the office. The decision to shut down was made independent of the merger, Harris said.

But the just-enacted health care overhaul law contains a provision that changed the federal False Claims Act in a way that would appear to allow new, similar lawsuits to go forward.

The court voted 7-2 to hold that a technical, though important aspect, of the federal whistleblower law applies to local governments. One section of the law prohibits whistleblower lawsuits when public disclosure of the alleged fraud occurs through a court hearing, a news report or congressional or administrative audit.

In an opinion by Justice John Paul Stevens, the court ruled that the language on administrative audits refers to a report prepared by any government, not just a federal government document. The question had divided federal appeals courts.

Justice Sotomayor dissented, saying her colleagues "misread the statutory text" to limit whistleblower claims. Justice Stephen Breyer joined the dissenting opinion.

But, in any event, the health care legislation signed by President Barack Obama last week changed the false claims law so that it now refers specifically to federal reports. Stevens noted the change in a footnote to his opinion, but said it did not affect pending lawsuits.