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Bowles Rice McDavid Graff & Love Being Sued
Law Firm News |
2007/12/12 12:17
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An Oklahoma oil and gas company has filed a $16 million lawsuit against a Charleston law firm and two of its attorneys for legal malpractice and for breach of contract.
Bowles Rice McDavid Graff & Love LLP and attorneys Charles B. Dollison and Julia A. Chincheck are the defendants in the case filed by Hinkle Oil & Gas Inc., which is based in Oklahoma City. The case originally was filed in U.S. District Court for the Western District of Oklahoma, but was removed to the Western District of Virginia in October.
Hinkle claims the firm and its attorneys are responsible for them losing millions of dollars because of a collapsed deal to buy some oil and gas wells.
A representative for Bowles Rice, which primarily does defense work, dismissed Hinkle's claims.
"The firm thinks the lawsuit is without merit, entirely without merit," partner Gerry Stowers told The West Virginia Record.
According to its complaint, Hinkle buys and develops oil and gas wells across the country.
"Hinkle is a small operator that seeks out, purchases and develops small wells and properties, many of which are quite old and nearly 'played out,'" the complaint states. "Because of the history of these wells, Hinkle occupies a special niche in the market: it purchases wells that are generally smaller than those that would attract so-called 'major players,' and because of the relatively small size of the wells, the owners-sellers, and producers, Hinkle can normally obtain these properties at highly favorable rates, then redevelop these properties, and earn substantial profits in so doing."
The lawsuit stems from Hinkle and a subsidiary - Minerals Management Group Inc. - dealing with a company called Buffalo Properties LLC. Hinkle and MMG were involved in "substantial legal disputes" with Buffalo Properties. In 2004, Buffalo filed for bankruptcy in U.S. Bankruptcy Court for the Southern District of West Virginia.
In 2005, Hinkle and Buffalo began negotiations to settle their differences. In November, they reached an agreement that Hinkle would buy 17 oil and/or gas wells and 900 acres from Buffalo for $400,000.
Hinkle was being represented by Louisa, Ky., attorney Raymond Dodson. But the company needed an attorney licensed in West Virginia because Buffalo's bankruptcy was pending here.
In April 2006, Hinkle retained Bowles Rice to complete the paperwork on the Buffalo contract. Chincheck was assigned to Hinkle. Chincheck was group leader of Bowles Rice's commercial and financial services group.
"Since the underlying terms of the resolution agreement [with Buffalo] had already been agreed-to, Hinkle justifiably expected that the settlement agreement would be consummated and effected within two weeks at the most," the complaint states.
After a month, Hinkle says it contacted Chincheck, who said Buffalo's bankruptcy trustee was "difficult to get hold of" or "was not returning telephone calls."
Hinkle then states that Chincheck met with Buffalo's bankruptcy trustee on May 25, 2006. The trustee told Chincheck that Buffalo "had entered into another contract concerning the exact same subject matter as that involved in the Hinkle-Buffalo Properties resolution agreement, with an entity named Elk River Energy LLC."
The complaint says Hinkle was "flabbergasted at this development."
Between May 25 and June 2, Hinkle says it learned that Elk River Energy was formed only two weeks before the May 25 meeting and that Dollison, a partner at Bowles Rice, "was not only the organizing attorney," but "he also had a financial stake in Elk River Energy."
Had Hinkle known of what it called this "absolutely inexcusable conflict of interest," it never would have retained Bowles Rice nor would it have disclosed confidential and proprietary information consisting of the terms of the agreement with Buffalo.
On June 2, 2006, Chincheck informed Hinkle - "in a transparent attempt to excuse her culpability," according to the complaint - that she would no longer being representing the company.
Three days later -- through current counsel Hugo N. Gerstl of Monterey, Calif. - spoke with Buffalo's bankruptcy trustee, who said Elk River was trying to back out of its contract with Buffalo and trying to dissolve. Meanwhile, the trustee also moved to sell the subject property in bankruptcy court. The "Objection or Upset Bid" date was set for June 14, 2006.
Hinkle states that the contract it had with Buffalo "would have gone through promptly and with no difficulties." But because of the defendants' actions, Hinkle said it had to lodge its "upset bid" at a much higher price than it would have had to pay under the agreement. It also had to bid on all of Buffalo's properties instead of just the ones it wanted in the original deal.
Meanwhile, a new Nevada-based company called Heritage Financial Group Inc. made a bid for all of Buffalo's assets for $7 million. On Sept. 18, 2006, the bankruptcy court issued an order granting the sale to Heritage.
Hinkle claims wrongful acts by Bowles Rice, Chincheck and Dollison are responsible for the collapse of its contract with Buffalo Properties and that, as a result, it has suffered and sustained damages because of the breach of fiduciary obligations. Those damages include loss of opportunity, loss of credibility in the oil and gas industry and natural incremental increase in its asset and profit base.
It also says it has lost profits from the wells it would have purchased. Studies show that amount, Hinkle says, exceeds $16 million. Hinkle says it also lost $6.6 million in consideration. That represents the $7 million Heritage purchase price for properties Hinkle would have bought for $400,000.
Hinkle also seeks compensation for resolving litigation involving two wells in Boyd County, Ky. The company says the actions of the defendants resulted in it having to settle on terms that would have been different had its purchase gone through.
Hinkle also seeks attorney fees and court costs for trying to salvage its contract with Buffalo Properties and the fess and costs paid to Bowles Rice.
It also seeks punitive damages.
"The acts of the defendants, and each of them, constituted constructive fraud, oppression and malicem [sic] and was, at least in part, motivated by defendants' desire for profit," the complaint states. "Said acts were made with conscious disregard for plaintiff's rights.
Hinkle claims Bowles Rice, Dollison and Chincheck breached their written contract with the company and breached their implied covenant of good faith and fair dealing.
Hinkle also says the defendants are guilty of legal malpractice.
Hinkle says the defendants "assumed a duty of care to represent plaintiff's interests competently, completely and without any conflict of interest."
Stowers said Bowles Rice did nothing wrong.
"Hinkle Oil & Gas claim they had a done deal with the bankruptcy trustee for the purchase of these wells," Stowers said. "All bids are subject to court approval and upset bids. When they went through the process, there was indeed an upset bid. The suit claims we are responsible for not completing the deal with the bankruptcy trustee. We deny that unequivocally because everything is subject to court approval.
"The law firm developed a conflict, and we couldn't go forward. Hinkle engaged new counsel, and their bid didn't go through."
Bowles Rice is being represented by Gerald P. Green and Mark E. Hardin of the Oklahoma firm of Pierce Couch Hendrickson Baysinger & Green as well as Richmond, Va., attorney William D. Bayliss of the firm Williams Mullen Clark & Dobbins.
The jury trial originally was scheduled for April 22 in Roanoke before Judge Samuel G. Wilson, but has since been rescheduled for May 19-21. |
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Mathys & Schneid File Charges over Infant Death
Law Firm News |
2007/12/12 12:03
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LAW OFFICES OF MATHYS & SCHNEID today (Wednesday, December 12, 2007) filed a lawsuit (Case No. 2007 L 13860) against Jewel Food Stores, Johnson & Johnson, McNeil-PPC, Inc., Morton Grove Pharmaceuticals, Inc. and others for the death of a six (6) month old infant who died after being given prescription cough and cold medication.
The infant, six (6) month old Ashanti Webber, was recovering from pneumonia when her physician prescribed a prescription cough and cold medication, Rondec, along with an antibiotic and over the counter Infant Tylenol(R) Cold Plus. After giving the medications to her daughter for two days, Ashanti's mother, Takara Cabell found Ashanti having breathing difficulties in her crib at 5:30 a.m. on December 13, 2005. Takara called 911 and Ashanti was rushed to Rush-Copley Memorial Hospital where she later died of pseudoephedrine and dextromethorphan intoxication.
The lawsuit alleges that Jewel Food Stores, through its Jewel-Osco pharmacy, filled the prescription for Rondec with a non-generic brand called Carbaxefed DM RF, which contained three (3) active ingredients, pseudoephedrine, dextromethorphan and carbinoxamine that were never tested in infants and have been known to cause death and injury to infants in the past. The Infant Tylenol Cold Plus also contained the dangerous active ingredient, pseudoephedrine. The lawsuit alleges that Jewel-Osco, Morton Grove Pharmaceuticals (makers of Carbaxefed) and Johnson & Johnson/McNeil-PPC (makers of Tylenol) were negligent in marketing and selling infant cold medications that were never approved by the Food and Drug Administration (FDA), were never shown to actually help infants with cough and cold symptoms and contained active ingredients that were known to cause death and injury to infants in the past.
"Do not give your child under two (2) years old any prescription or over the counter cough and cold medications that contain these ingredients," said Mark W. Mathys, a partner in the law firm. "These pharmaceutical companies have been preying on parents of sick children for decades. They knew all along these medications were not shown to be effective for infants, yet they marketed and sold these medications claiming they could help a child's symptoms, even as they knew these drugs could injure or even kill the infant."
"Even more disturbing," said Mathys "is that these medications have been marketed and sold for treating infant cough and cold symptoms for years even though the drugs have never been approved by the FDA for use with infants."
This follows in the wake of another lawsuit recently filed by Law Offices of Mathys & Schneid involving the death of a two (2) month old boy, Mauricio Trujillo, just eight (8) days before Ashanti Webber's death. Mauricio was also being given Carbaxefed DM RF, dispensed by Walgreen Co.
Recently, an FDA advisory committee recommended that all over the counter (OTC) infant cough and cold medications be banned from being sold. Additionally, in June of 2006, the FDA ordered that pharmaceutical manufacturers stop making prescription cough and cold medications for infants containing unapproved carbinoxamine-containing drugs, including those with pseudoephedrine and dextromethorphan. These active ingredients have been linked to numerous infant deaths since 1983.
Contact:
Mark Mathys of Law Offices of Mathys & Schneid, +1-630-428-4040, www.mathyslaw.com. |
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Portland Firm Fires Partner for Alleged Theft
Law Firm News |
2007/12/12 11:57
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A longtime partner in one of Maine's most prominent law firms has been fired for allegedly stealing money from clients and the firm.
Portland-based Verrill Dana sent a letter of apology to clients of John Duncan and notified them that it has "severed its relationship" with him.
The letter said Duncan "misappropriated funds" from the firm and "misused client funds or billed clients improperly." The firm isn't saying how much money was allegedly involved.
Duncan, who has been with Verrill Dana for nearly 30 years, did not return phone messages seeking comment.
A report on his billing and accounting practices is being turned over to the Maine Board of Bar Overseers. State and federal prosecutors have also been alerted. |
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Law Firms Warm Up to Climate Issues
Law Firm News |
2007/12/10 10:09
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Detroit-based Miller, Canfield, Paddock and Stone P.L.C. has created an inter-disciplinary practice group to address climate change and global warming issues for its business clients, becoming one of a growing number of local law firms that are doing so.
Mark Bennett, who joined Miller Canfield as senior counsel in August, leads a team of 13 lawyers from practices in public finance, real estate, environmental, government affairs and commercial lending.
Like many law firms, Miller Canfield sees this as an opportunity to offer clients service that goes beyond strict legal work into comprehensive advice on complex issues, Bennett said.
Climate change is a critical policy area affecting not only business and industry but consumers, government and regulatory agencies, so it offers opportunities for law firms — as well as communities and companies — to make money while addressing serious problems, Bennett said.
"So often in law, we've focused on mitigating risks," Bennett said, "but in the climate change area, we're emphasizing government incentives and operating efficiencies that can create economic return on investments in energy conservation."
Other major Detroit law firms agree that lawyers need to address a changing landscape in these practice areas, and most are doing so.
"Been there, done that," said Alan S. Schwartz, CEO and chairman of Honigman Miller Schwartz and Cohn L.L.P. "That is, we've had such a group for a while."
An Investment Incentives and Tax Savings practice was established in 2004, chaired by Steven Nadeau, and Honigman recently created an alternative energy group headed by Sandy Ring. Each group has 15 lawyers.
Both practice groups work with companies whose businesses involve regulating, patenting and marketing new energy sources as well as ways to take advantage of tax breaks and federal grants while they address environmental concerns, Nadeau said.
Larry McLaughlin, who heads Honigman's real estate practice, said his firm regularly advises clients on developments such as incentives for green real estate practices.
At Detroit-based Butzel Long, Beth Gotthelf, who heads the environmental practice, said, "Environmental law practice isn't the old environmental law it used to be, focusing on pollution, Super Sites and wetlands.
"We're doing energy, climate change and global warming issues, with ethanol plants and R&Ds on alternative fuel. And on new construction, it's 'What can we do to make buildings more energy efficient and what kind of credits are there if we make them more green?' " she said.
With lawyers needed for contracts, financial deals and regulatory compliance, it makes sense for law firms to offer a total package on such issues, Gotthelf said. "We are seeing much more clearly that environmental practice touches all aspects of life and is in every discipline."
Understanding and using tax incentives is one way to assist businesses with climate change issues, Bennett said. But when the U.S. implements a carbon-regulatory scheme, it will have both economic and technological impacts beyond legal and regulatory compliance, he said.
The European Union's use for several years of climate change regulations gives a perspective on how U.S. businesses can productively incorporate such issues into commercial transactions.
For instance, assigning a price to a ton of emitted carbon dioxide impacts the value of real estate because carbon emissions caused by electricity consumption become an occupancy cost for tenant or landlord that can be built into a lease, he said. "We can address this additional risk or reward in a lease for both landlord and tenant clients," he said.
Lawyer Michael Gerrard of New York city-based Arnold & Porter L.L.P. said that municipalities are under a lot of political pressure, as sources of emission, as regulators and as buyers or sellers of credits.
He predicts that growth in climate change activity will be spurred, "if and when Congress adopts mandatory regulatory laws, which I expect to happen in 2009 and 2010 ... whether the next president is a Democrat or Republican."
Earlier this year, President Bush announced the administration's new stance on global climate change, and some segments of the public and Congress are pushing for more action.
Gov. Jennifer Granholm on Nov. 14 created a Michigan Climate Action Council to develop plans to reduce the state's energy use by 10 percent by the end of 2008 and to reduce electricity purchases by 20 percent by 2015. She also called for growth in the alternative energy industry and for the state to establish Renewable Portfolio Standards, all areas the Miller Canfield team addresses.
The Miller Canfield climate change team also will work with business, industry and government clients on sustainable development including LEED certification. LEED is the Leadership in Energy and Environmental Design green building rating system established by the Washington, D.C.-based U.S. Green Building Council to set standards for environmentally sustainable construction.
Also on the team's agenda, Bennett said, is: waste-to-energy project certification; carbon emission reduction credits; voluntary emission reductions transactions on the Chicago Climate Exchange and over-the-counter markets; public nuisance litigation alternative energy projects; and bio-refinery regulations, among other climate issues.
Team lawyers in metro Detroit, along with Bennett, are Amanda Van Dusen, Mike McGee, Ronald Hodess, Anna Maiuri, Duncan Ogilvie and Jean-Vierre Adams.
Based in Lansing are William Danhof, Harvey Messing, James Lancaster and Bree Popp Woodruff .
Trent Taylor is in Grand Rapids and Paul Durbin is in Chicago. |
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Linda Grant Williams joins Dreier LLP
Law Firm News |
2007/12/10 08:43
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Dreier LLP announced today that Linda
Grant Williams has joined the firm as a partner in the Corporate &
Securities Department. Prior to joining the firm, Ms. Grant was of counsel
to Greenberg Traurig LLP in New York, and was previously a partner at
Pillsbury Winthrop Shaw Pittman LLP.
"We are delighted and very fortunate to have Linda Grant Williams join
Dreier LLP," stated Marc S. Dreier, founder and managing partner of Dreier
LLP. "Her expertise in advising public-private partnerships complements our
current capabilities representing capital providers in the construction and
financing of major real estate holdings."
Ms. Grant Williams will continue her practice in representing banks,
pension funds and other capital providers in the construction and permanent
financing of hotels, shopping centers, office buildings, industrial
complexes, multifamily projects, cogeneration and other energy projects.
Some of her notable real estate and construction projects include the
financing of The Forum at Caesar's Palace, Two Rodeo Drive and One Colorado
Shopping Centers in Southern California and the Greenwich Office Park in
Greenwich, Connecticut.
"Joining Dreier LLP enables me to provide clients with the litigation
expertise, relationships and wide-ranging capabilities of a full service
law firm," Ms. Grant Williams stated. "I also share Marc Dreier's vision of
a cutting edge, entrepreneurial firm that applies creative thinking to
client issues."
Ms. Grant Williams was instrumental in structuring financings for the
Oakland Raiders, Golden State Warriors, and in the renovation of the Rose
Bowl in Pasadena, California. She was recognized by Sports Business Journal
as one of the country's leading sports executives and credited with the
creation of sports securitization, utilized at both the Pepsi Center in
Denver, Colorado and The Staples Center in Los Angeles, California. Most
recently, Ms. Grant Williams created a groundbreaking method for a more
cost effective method of financing U.S. airports, resulting in greater
bankruptcy protection for bondholders and dramatically lowering financing
costs for airlines. This patent-pending business method innovation has been
generally approved for use at the tri-state area airports by The Port
Authority of New York and New Jersey.
Ms. Grant Williams received a B.S. in Political Science with high
distinction from the University of Arizona in 1974 and a J.D., cum laude,
from Loyola Law School in 1979, where she was a member of the Loyola Law
Review and received the American Jurisprudence Constitutional Law Award.
Ms. Grant Williams is a member of the Bar of the States of New York and
California and was recently appointed to the Association of the Bar of the
City of New York Structured Finance Committee.
Background on Dreier LLP
Dreier LLP was founded in 1996 by Marc Dreier as a more responsive and
innovative alternative to traditional "large-firm" lawyering. Dreier LLP
represents a wide range of institutional, entrepreneurial and individual
clients in diverse sectors of financial, industrial and service-oriented
markets. The firm's principal practices are commercial litigation, real
estate, bankruptcy and corporate reorganization, employment, corporate and
securities, entertainment, intellectual property, matrimonial and tax.
Dreier LLP's Los Angeles affiliate, Dreier Stein & Kahan LLP, has its
principal practice in entertainment and commercial litigation and corporate
transactions. The firm's affiliate Schlesinger Gannon & Lazetera LLP has an
extensive practice in the area of trusts and estates law. Pitta & Dreier
LLP is an affiliate which specializes in labor law, and Pitta, Bishop, Del
Giorno & Dreier LLP specializes in government relations. In the 10 years
since its founding, Dreier LLP, with its affiliate members, has grown to
more than 200 attorneys, with its principal office at 499 Park Avenue in
Manhattan, and additional offices in Los Angeles; Santa Monica, California;
Albany, New York; and Stamford, Connecticut. |
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Kirkland & Ellis Host Literacy Event in D.C. Office
Law Firm News |
2007/12/07 09:44
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Last night at Kirkland & Ellis’ D.C. office, law firms engaged in a battle of who knows the most about nothing much in the first annual Lawyers for Literacy Trivia Night. The event, which raised funds for the children’s literacy program Everybody Wins! D.C., pitted nine firms against each other for five rounds of general interest trivia, with a heavy emphasis on, appropriately enough, children’s literature.
The nine firms—Sonnenschein Nath & Rosenthal; Morrison & Foerster; Sidley Austin; Steptoe & Johnson; White & Case; Nordhaus Law Firm; Shook, Hardy & Bacon; Wilson Sonsini Goodrich & Rosati; and Kirkland & Ellis—donated $1,500 to the literacy program for each six-person team.
Mark Young, a partner with Kirkland who knows a fair bit about Winnie the Pooh, Monopoly, and Warren Harding, has been reading to children in the Everybody Wins! D.C. Power Lunch Program for 11 years. Twelve firms around town participate in the program, and he says reading to an elementary school child for an hour once a week is easy to fit into a lawyer’s hectic schedule. “People that have become lawyers have done an awful lot of reading, and they appreciate the value of reading as a skill,” says Young.
The trivia questions ranged from popular movies and music to history. For example, what did Scout dress up as for her school pageant in Harper Lee’s To Kill a Mockingbird? Answer, a ham. And what country has outlawed resurrecting the dead? Answer, Haiti.
Occasionally the crowd got a little rowdy, forcing quiz master, Neal Racioppo, to lay down the law, so to speak. “I just assumed you all were used to the judge being right,” said Racioppo, when one of the Steptoe teams objected to his answer.
Though White & Case had an early lead followed closely by Kirkland & Ellis’ appellate team, the fourth round was especially brutal, knocking out the frontrunners. The Shook Hardy team, called Nobody Puts Baby in a Corner, played a steady game and came in to win in the last round with 51 points.
The team, which scored an impressive looking trophy for their efforts, said their secret to winning was trusting their instincts. Christopher Appel, a staff attorney at the firm, described their strategy with a quote from “The Simpsons.” “God gave us the atom. It’s up to us to make it dance,” he said.
Racioppo enjoyed the crowd, but added that in the seven years he’s been quizzing folks around Washington he’s never seen a more competitive lot. “They weren’t all about finding the answer to the question,” said Racioppo. Instead, “they looked for the loopholes around the questions.” |
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NY Law Firm Subpoenaed Over Questionable Hiring
Law Firm News |
2007/12/07 09:39
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As legislative leaders seek to award New York's thoroughbred racing franchise that's due to expire Dec. 31, a state committee has subpoenaed a firm that recently won a no-bid contract with the New York Racing Association, which holds the current franchise.
The law firm of Getnick & Getnick of Manhattan has been subpoenaed to testify before the state Commission of Investigation, Neil V. Getnick said Thursday, just as NYRA fights to keep the franchise it's held since 1955.
The subpoena apparently stems from a recent hearing by the state Senate's racing committee, in which the no-bid contract to Getnick & Getnick as integrity counsel was criticized. The contract is worth $125,000 a month.
Senators and NYRA's competitors have questioned the hiring of the law firm. The firm was appointed by a court in 2005 to oversee NYRA's finances and was instrumental in helping NYRA avoid a federal indictment for mismanagement.
"I regret that I was not afforded the opportunity to appear before the state Senate racing committee when it held its NYRA related hearing earlier this fall," Getnick said. "I would welcome the opportunity to testify before the state investigation commission. The facts are straightforward and should be heard by the public."
"We stand in full support of Neil and his firm," said Charles Hayward of NYRA. "We're thrilled to be associated with them."
Asked if he thought the subpoena was timed to hurt NYRA's chances at renewing its franchise, Hayward said: "I think the investigation is not fact based."
In 2005, Getnick & Getnick's report found that after years of mismanagement and corruption, NYRA had reformed itself enough to avoid a federal indictment and be in the running to retain its lucrative franchise. The U.S. Attorney's Office investigating NYRA then moved to dismiss the indictment against NYRA. Getnick & Getnick was paid more than $4 million for that study, funded by NYRA.
Now NYRA is competing against Empire Racing, Capital Play and Excelsior Racing Associates for what is expected to be a 30-year franchise to operate Aqueduct, Belmont and Saratoga race tracks.
Senate Majority Leader Joseph Bruno called for public negotiations with Gov. Eliot Spitzer and Assembly Speaker Sheldon Silver to form a consensus. The various options discussed in closed-door sessions include awarding the racing franchise to NYRA _ favored by Spitzer and supported initially by Silver. Bruno said he opposes Spitzer's plan, but is open to discussing various combinations that could include NYRA.
Under Spitzer's plan, a separate franchise would be awarded _ with NYRA's input _ to one of the gaming partners with the racing groups that would run video slot machines at Aqueduct and potentially at Belmont.
The Senate is scheduled to be in session next week to consider only racing, Bruno said. The Assembly will commit only if there is agreement by the leaders, spokesmen said.
The closed-door negotiations, however, have grown to include several other measures including a pay raise from lawmakers and state judges, a senior citizen tax break, and a $900 million capital budget that would be directed to projects back in lawmakers' districts as a kind of pork-barrel spending. |
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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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