Keep your finger on the legal world's pulse

A study by the American Bar Association (ABA) has concluded that white law students are more likely to receive full scholarships compared to their non-white classmates. The data shows that white students were awarded 70% of full-tuition scholarships, even though they make up about 61% of the national pool of full-time law students. In contrast, students of color, who comprise nearly 32% of full-time law students, received fewer than 23% of full-tuition scholarships. The ABA's data highlights racial disparities in scholarship distribution and raises concerns about lower socioeconomic groups subsidizing the tuition of wealthier classmates. Aaron Taylor, executive director of the AccessLex Center for Legal Education Excellence, called for law schools to assess their scholarship awarding practices to ensure equity. The study also found disparities based on Law School Admission Test scores, with white and Asian students more likely to receive full-tuition scholarships compared to Black and Hispanic students. Asian law students, despite comparable median LSAT scores to white students, were significantly less likely to receive full-tuition scholarships. The study emphasizes the need for fair and equitable scholarship practices in law schools.

 

Reuters

In the realm of global child labor disputes, law firms play a critical role, often representing multinational corporations accused of complicity in exploitative supply chains. This involvement places these firms at the center of cases that examine the murky paths from raw materials to consumer products, such as the journey of cocoa beans from West African farms to the chocolate bars on supermarket shelves. The employment of children in these chains, often undocumented, forms the crux of numerous lawsuits targeting major manufacturers for alleged child labor violations. Prominent among the legal actions is a lawsuit filed by Terry Collingsworth of International Rights Advocates, targeting giants like Cargill, Mars, and Mondelēz. This legal battle, emblematic of the broader struggle against forced child labor in supply chains, charges these corporations with severe human rights violations against children in Ghana. Similar cases have also been filed against other major players like Nestlé and Hershey, accusing them of benefiting from child labor in their chocolate production processes.

 

Law

At the International Council for Commercial Arbitration (ICCA) Congress in Hong Kong, discussions highlighted the indispensable role of human judgment in international arbitration, despite the rise of artificial intelligence (AI.) The event, themed "International arbitration: a human endeavour," focused on the importance of maintaining a human-centered approach in dispute resolution. Speakers emphasized that while AI presents new opportunities for efficiency and data management, the nuances of human interaction, empathy, and ethical considerations remain crucial. The congress underscored the need for arbitrators to understand and communicate effectively with diverse parties involved, ensuring that all feel heard and fairly treated. Key insights included the challenges of cultural biases and the necessity for diverse arbitration panels to avoid homogeneous decision-making risks. The event also addressed the technological advancements in arbitration and how they might complement, but not replace, the human elements of mediation and negotiation. As AI continues to be integrated into legal practices, ICCA leaders advocated for balancing technological innovations with the irreplaceable value of human insight and interpersonal communication in arbitration processes.

 

CDR

Law students are increasingly interested in law firms' political and moral positions. According to a recent report, law students are showing a growing interest in the political and moral stances of law firms. The report highlights the importance of law firms' positions on various issues, including social justice and human rights. One law student stated, "It is crucial for me to work for a law firm that aligns with my values and beliefs." This trend reflects the changing priorities of law students, who are seeking not only a successful career but also a sense of purpose and impact. The report suggests that law firms need to be more transparent about their political and moral positions to attract top talent. It also emphasizes the need for law schools to incorporate ethics and social responsibility into their curriculum. Overall, this shift in interest among law students signals a broader societal shift towards a more values-driven approach to legal practice.

 

The American Lawyer

Hence Technologies is set to release an artificial intelligence (AI) software package designed to assist law firms and in-house legal departments in navigating and forecasting geopolitical risks that could impact legal operations. Amid heightened U.S.-China tensions affecting the legal sector, this tool aims to map geopolitical events and translate them into potential legal challenges, thereby enabling proactive management of political impacts on legal matters. The innovative software, which capitalizes on AI's capability to process extensive global information and historical data, marks a strategic development for adapting legal practices to complex international dynamics.

 

Law

Perkins Coie is opening an office in London, led by Ian Bagshaw, with a focus on serving tech start-ups in Europe. The firm aims to bring its expertise in privacy and technology transactions, including M&A, to the European market. The London office will initially focus on corporate services but may expand into intellectual property and litigation. Perkins Coie plans to leverage its tech-sector depth in the US to gain a competitive advantage in London. The office will target local and European venture capital, private equity, and start-up clients. The move marks Perkins Coie's first office outside of the US and Asia.

 

Bloomberg Law

The Global Legal Post

Reuters

A Delaware law professor has accused Tesla of threatening to dismiss one of its longtime law firms if he filed a friend-of-the-court brief opposing the company's quest to reinstate CEO Elon Musk's $56bn pay package. Retired professor Charles Elson claimed that Holland & Knight, for which he has worked as a consultant for nearly three decades, informed him that Tesla threatened to cancel its affiliation with the law firm unless Elson abandoned preparations to submit his brief. Elson resigned from his consulting arrangement to protect the firm from retaliation while upholding the important principle of academic freedom. Holland & Knight denied being pressured by Tesla and stated that Elson's proposed course of action was inconsistent with the firm's obligations to its client. Elson, a corporate governance expert, submitted a previous friend-of-the-court brief that was cited several times in the Delaware Chancery Court that voided Musk's pay package. Elson's proposed second brief argues that Delaware law does not permit the unprecedented maneuver of undoing a Chancery Court judgment through a shareholder vote.

 

Reuters

The Maryland Office of the Attorney General is seeking authorization to hire five law firms to assist in the legal fight following the collapse of the Francis Scott Key Bridge. Attorney General Anthony Brown has requested approval for a "contingent fee provision," meaning that the firms would be paid out of money recovered from the bridge litigation. The firms include Kelley Drye & Warren LLP, Liskow & Lewis APLC, Downs Ward Bender Herzog & Kintigh P.A., the Lanier Law Firm, and Partridge LLC. The attorney general's office plans to seek financial recovery for the damages suffered by the state of Maryland in the crash. The firms would be paid on a sliding scale depending on the amount of money recovered and the duration of the litigation. Building a new Key Bridge could cost up to £1.9bn, and insurance claims are expected to exceed £1bn. President Joe Biden has pledged federal government support for replacing the bridge.

 

The Baltimore Sun

The Securities and Exchange Commission (SEC) has won a landmark enforcement action against a former executive at Medivation Inc., who was found guilty of insider trading by buying options in Incyte Corp. The Department of Justice (DOJ) may follow suit and pursue shadow trading cases, but criminal prosecution would present challenges in proving criminal intent. The SEC's victory in this case highlights the need for companies to update compliance programs and employee training. The DOJ would need to prove beyond a reasonable doubt that information about one company was material to another, that the defendant knew it was material, and that the defendant intended to use inside information in a prohibited way. Companies should ensure that their compliance and training programs address this new enforcement risk. The duty not to trade extends to companies covered by confidentiality or nondisclosure agreements. The case is Securities and Exchange Commission v. Panuwat.

 

Bloomberg Law

Opponents of the Consumer Financial Protection Bureau (CFPB) rules are celebrating a Texas judge's decision to freeze caps on credit-card late fees. The ruling gives lenders a reprieve before the regulations were set to take effect this week. Companies such as JPMorgan Chase, Synchrony Financial, and Macy's, have been fighting against the rules, which would have limited late payment surcharges to $8. The U.S. Chamber of Commerce, American Bankers Association, Consumer Bankers Association, and three local Texas industry groups sued to block the rule, which could have cost credit-card lenders around $10bn in annual revenue. The ruling is seen as a positive sign for opponents of the regulations, who hope for a complete overturn in court. The Supreme Court is currently considering a challenge to the CFPB's funding. While the ruling is a win for critics, the outcome of the case remains uncertain, and the CFPB plans to defend its rule. The pause in the implementation of the rule is also significant in light of the upcoming U.S. election, as a potential Trump administration could reverse the plan. Regardless of the Supreme Court's decision on the CFPB's funding, the late fee rule faces challenges in the Texas courtroom.

 

Bloomberg