Keep your finger on the legal world's pulse

Major law firms and boutique practices are earning substantial fees from the Democratic and Republican presidential campaigns and national party committees as the 2024 election approaches. Covington & Burling and Dhillon Law Group are the top-paid legal counsel for the Biden-Harris and Trump campaigns, respectively. Covington has received over $2.2m from the Biden-Harris campaign and the DNC, while Dhillon Law Group has been paid more than $2.6m by Trump's campaign. The DNC has also paid significant fees to WilmerHale and Perkins Coie, while the RNC has disbursed millions to Consovoy McCarthy, McGuireWoods, and Baker Hostetler. The legal battles and compliance issues surrounding the campaigns have driven this high demand for legal services, with both parties preparing for intense legal scrutiny and potential challenges. Notably, former Attorney General Eric Holder and his firm Covington have been enlisted to vet potential running mates for Kamala Harris, highlighting the crucial role of top legal advisors in shaping the upcoming election strategies.

 

The National Law Journal

The American Bar Association (ABA) has released an ethics opinion addressing the challenges and risks associated with billing and fees for artificial intelligence (AI)-supported legal work. The opinion highlights the complexities of determining appropriate billing for tasks completed using generative AI, emphasizing the need for transparency and accuracy in client billing. Lawyers should charge only for the time spent entering information and reviewing AI-generated work, not for learning to use the AI tool. The opinion suggests that law firms may need to adopt alternative fee arrangements to reflect the efficiencies gained from AI, moving away from traditional hourly billing. This shift underscores the importance of ethical billing practices as AI becomes more integrated into legal workflows. The ABA's guidance also touches on the ethics of AI in communications, lawyer competence, and client confidentiality, reinforcing the need for informed consent and thorough review of AI-generated work.  

 

The American Lawyer

The growing demand for intellectual property (IP) services in California, driven by its tech industry, has led numerous Am Law 200 firms to expand their IP offerings in the state. Nixon Peabody, for instance, has recently added several IP-focused lawyers, including partners from Maynard Nexsen and a former general counsel to the Korean Trade-Investment Promotion Agency. Other firms such as Greenberg Traurig and Lewis Roca Rothgerber Christie are also bolstering their IP teams. This surge in demand is fueled by increased online infringement, the need for trademark enforcement, and cross-border IP transactions. Firms are responding by hiring experienced litigators and expanding their services to meet the sophisticated needs of clients.

 

The Recorder

Mid-sized law firms using online payment systems are getting paid more than twice as fast as those not using such systems, according to the 2024 Legal Trends for Mid-Sized Law Firms report. The report highlights the importance of leveraging technology and improving payment processes to enhance the performance and efficiency of mid-sized law firms. It suggests implementing online payment systems, automating billing and reminders, using legal practice management software, establishing clear billing policies, offering flexible payment options, focusing on invoice accuracy and transparency, implementing a systematic collections process, monitoring key metrics, and communicating effectively with clients. By following these strategies, mid-sized law firms can significantly improve their payment collection rates, maintain healthier cash flow, and compete more effectively in the legal market. "Mid-sized firms have significant opportunities for growth and efficiency through new systems and technologies," the report concludes.

 

LawFuel

The 2024 ABA Annual Meeting will highlight defending democracy and protecting the rule of law, just months before the next U.S. presidential election. The weeklong conference, from July 31 to August 6 in Chicago, will feature the first-ever Democracy Summit. National leaders, including former U.S. Secretary of Homeland Security Jeh Johnson and former federal Judge J. Michael Luttig, will discuss election trust, civics promotion, and reducing political contempt. ABA President Mary Smith will present the Unsung Heroes of Democracy Award to 22 individuals and organizations. U.S. Deputy Attorney General Lisa Monaco will address challenges to the rule of law in a keynote speech, and Emmet Bondurant will receive the ABA Medal for his commitment to democratic values and indigent defense. Other notable events include a Reception Honoring the Judiciary, the President’s Reception, and the presentation of the Silver Gavel Awards, the Thurgood Marshall Award, and the Margaret Brent Women Lawyers of Achievement Awards. The meeting will also feature various programs, panel discussions, and social gatherings, focusing on critical legal topics.

 

ABA Journal

The Class of 2023 law graduates has achieved unprecedented success in the job market, with record-high employment rates and salaries. However, the National Association for Law Placement (NALP) warns that future graduating classes may not experience the same favorable conditions. Law firms have already reduced their recruitment of new associates, signaling a cooling market for legal talent. NALP Executive Director Nikia Gray predicts that the Class of 2023 will be the last to benefit from the intense competition for talent. While the employment statistics for the Class of 2023 are positive, with 92.6% finding employment within 10 months of graduation, future classes may face increased competition and potentially lower employment rates. The national median salary for new law graduates in 2023 was $90,000, with those working in private practice earning a median salary of $165,000. These figures highlight the challenges that future law graduates may face in a more competitive job market.

 

LawFuel

Dentons partners Shari L. Klevens and Alanna Clair discuss the obligations and best practices for law firm associates moving between firms. They emphasize the importance of resolving conflicts of interest, adhering to ethical walls, and maintaining client confidentiality. Associates must disclose all past and present client work to avoid potential disqualifications. Before leaving, associates should review and comply with their current firm’s policies, ensure a smooth transition for their clients, and refrain from taking client files without proper authorization. By following these guidelines, associates can ensure their transition is ethical and seamless.

 

Daily Report

A federal judge in Alabama on Tuesday refused to block the Biden administration from enforcing new anti-discrimination protections for LGBTQ students in four Republican-led states, breaking with six other judges who have said the rules are invalid. Judge Annemarie Carney Axon said the Alabama, Georgia, Florida and South Carolina attorneys general challenging the Education Department standard, which includes sexual orientation and gender identity in the list of characteristics protected under sex discrimination regulations, failed to show a substantial likelihood of success in their lawsuit. In a 122-page ruling Axon, an appointee of former President Donald Trump, said the claims by the states and several conservative groups were conclusory and not backed by court precedent adding: "Although Plaintiffs may dislike the Department’s rules, they have failed to show a substantial likelihood of success in proving the Department’s rulemaking was unreasonable or not reasonably explained." She said nothing in Title IX limits the definition of sex to biological sex, and that the Education Department's interpretation of the law was reasonable in light of the 2020 Supreme Court decision in Bostock v. Clayton County, which held that a ban against workplace sex discrimination contained in Title VII of the Civil Rights Act of 1964 covered gay and transgender workers, applied to Title IX. The case is Alabama v. Cardona, U.S. District Court for the Northern District of Alabama, No. 7:24-cv-00533. 

 

Bloomberg Law

Reuters

Litigation over allegedly toxic infant formula is intensifying across the U.S., with a St. Louis jury recently awarding a $495m verdict. In Philadelphia, a cluster of related cases is advancing toward trial dates, taking a different approach by including hospital defendants. These cases add medical malpractice claims against hospitals to the products liability claims against manufacturers. This strategy allowed plaintiffs to avoid coordination into the multidistrict litigation in Illinois and resist mass tort coordination in Philadelphia. The cases have been grouped by hospital defendants before Judge Linda Carpenter in Philadelphia's major jury program, with the first trial expected in May 2025. Plaintiffs argue that cow’s milk-based infant formula from Mead Johnson and Abbott Laboratories can cause necrotizing enterocolitis in premature babies. The recent substantial verdicts in similar cases have boosted the plaintiffs' optimism. 

 

The Legal Intelligencer

Two organizations and eight individuals have filed a lawsuit in Albany County seeking to permanently stop New York State from using public funds for cannabis dispensaries. Represented by Tabner, Ryan & Keniry, the plaintiffs include the Cannabis Impact Prevention Coalition, Cannabis Industry Victims Seeking Justice, and several taxpayers. The lawsuit argues that no other industry receives such preferential state funding and cites concerns over the high potency of modern cannabis leading to mental health issues and addiction. The suit also claims that New York is violating federal law by funding activities that remain illegal federally. Defendants named in the case include officials from the Office of Cannabis Management and other state agencies. 

 

Law

Wells Fargo has been ordered to face a lawsuit which claims the San Francisco-based bank defrauded investors by proclaiming a commitment to hiring diversity at a time when it was conducting fake job interviews of non-white and female applicants that it had no plans to hire. U.S. District Judge Trina Thompson in San Francisco, who dismissed a version of the lawsuit in August last year, on Monday found direct and indirect evidence that the bank intended to defraud shareholders about its hiring practices. Thompson rejected arguments that there was insufficient proof that the sham interviews were widespread, or that top officials including Wells Fargo CEO Charles Scharf knew about the practice. Shareholders who challenged several bank statements about the alleged success of its diversity policy cited interviews with former employees, an internal whistleblower email, and the sudden retirement of a senior wealth manager who it is claimed pressured the whistleblower into conducting sham interviews. "The employee-submitted complaints, the peculiar timing of [the manager's] departure, and defendants' demonstrated focus on diversity issues supports a strong inference of [fraudulent intent] that is cogent and at least as compelling as an opposing inference that defendants remained oblivious," Thompson wrote.

 

Reuters

Paul Weiss, Hogan Lovells, and Simpson Thacher & Bartlett have guided Sixth Street's $5.1bn acquisition of Enstar, taking the insurance company private. Former U.S. Treasury Secretary Steven Mnuchin's Liberty Strategic Capital and J.C. Flowers & Co. are also participating in the deal. The Paul Weiss team is led by corporate partners Krishna Veeraraghavan and Benjamin Goodchild. The Simpson Thacher team is led by partners Katherine Krause, Elizabeth Cooper, and Louis Argentieri. Debevoise insurance M&A partner Marilyn Lion leads the firm's group working on the deal. Cleary's team is led by partners Mike James, Liza Lenas, John Kupiec, and Susanna Parker.

 

Bloomberg Law