Keep your finger on the legal world's pulse
22nd October 2024
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THE HOT STORY
SCOTUS rejects Michael Cohen’s appeal in civil rights case against Trump
The U.S. Supreme Court declined to hear an appeal from former attorney Michael Cohen, who sought to revive a civil rights lawsuit against former President Donald Trump and Trump administration officials. Cohen alleged that his civil rights were violated when his release from prison was conditioned on not speaking to the media during his promotion of a tell-all book about his time working for Trump. The lawsuit claims Trump’s administration tried to silence Cohen as a form of retaliation. Cohen, who was sentenced to three years in prison for campaign-finance violations, tax evasion, and lying to Congress, argued that his return to prison violated his First Amendment rights. The U.S. Court of Appeals for the Second Circuit previously dismissed the case, and Cohen petitioned the Supreme Court to create a new cause of action under the 1971 Bivens ruling, which recognized an implied cause of action for Fourth Amendment violations. Trump's legal team opposed the appeal, warning it could undermine Presidential immunity and set a dangerous precedent. 
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INDUSTRY
Navigating the new truck accident landscape
Truck accident litigation has significantly evolved due to technological advancements, regulatory changes, and a growing awareness of personal injury claims. With the rise in truck accidents, victims must understand their rights and the legal processes involved. As noted, "personal injury firms using ELD data to verify driver compliance can use ELD information as evidence against negligence." The Lawyer Monthly highlights the importance of technology such as dash cams and accident reconstruction software in establishing liability. Additionally, it discusses the impact of stricter regulations on trucking safety and the increasing scrutiny of insurance claims. Personal injury firms are adapting by employing innovative legal strategies, including the use of expert witnesses and social media evidence. Furthermore, there is a growing recognition of mental health considerations in claims. As the litigation process evolves, alternative dispute resolution methods are becoming more popular, offering quicker and less costly resolutions. Overall, personal injury firms play a crucial role in advocating for victims' rights and navigating the complexities of truck accident litigation.
Appealing trial court decisions: It's possible
Jonathan Mann, a senior associate at Schwartz Sladkus Reich Greenberg Atlas, explains how trial court decisions often fall under the judge’s discretion but are not always immune to appeal. While the "abuse of discretion" standard presents a hurdle, it is not insurmountable. Mann emphasizes the importance of analyzing trial court rulings closely, identifying procedural or factual shortcomings, and advocating for the correct standard of review. He highlights a recent successful appeal in which his client challenged the trial court’s valuation of a marital home, illustrating that discretion does not mean decisions are beyond scrutiny. 
WIPL Conference highlights solutions to gender gap
At the Women, Influence and Power in Law (WIPL) Conference, women legal leaders offered insights on tackling gender disparities in the legal profession. Honorees, including Citigroup's Jo-Anne Kelly and Morrison & Foerster's Lisa Phelan, emphasized the importance of family-friendly firm policies, flexible work options, and creative solutions to avoid forcing women to choose between family and career advancement. Flynn Group's Jacqueline Lee urged male colleagues to share in traditionally female-dominated tasks, while Fisher Phillips’ Shanon Stevenson highlighted succession planning as key to promoting diverse leadership in law firms and legal departments.
FIRMS
Law firms face profitability questions
U.K. law firm partners are now charging clients over £1,000 ($1,300) per hour—a 40% increase since 2019—due to inflation and fierce competition with U.S. firms, according to PwC's 2024 law firm survey. Despite the surge, elite U.S. firms still lead, billing over $2,000 per hour. The average hourly rate for U.K. partners has risen to £449, reflecting growing demand in M&A and litigation. Costs are also climbing, with newly qualified lawyers at U.S. firms in London earning up to £180,000. Cybersecurity and artificial intelligence are top concerns for U.K. firms as they navigate evolving risks.

 
Law
Skadden joins wave of law firm cuts
Skadden Arps Slate Meagher & Flom is closing its Shanghai office and laying off around 70% of its China corporate team, affecting two recently promoted partners, associates, and compliance officers. The cuts come amid a broader slowdown in the Chinese legal market, where other global law firms have also reduced their presence. While elite rivals like Kirkland & Ellis and Latham & Watkins show little interest in hiring corporate lawyers, opportunities for displaced Skadden staff may lie in Chinese law firms offering more flexible compensation models.

 
Law
Goodwin Procter quashes layoff rumours
Goodwin Procter has firmly denied ongoing layoff rumours, with Konstantin Shishkin, the firm's chief marketing and communications officer, stating: “any talk about continued layoffs or stealth layoffs at Goodwin is both misinformed and untrue.” Despite previous reductions in force, the firm has experienced growth, welcoming nearly 200 new associates soon. Shishkin's proactive communication on platforms like Reddit and Fishbowl marks a significant move in addressing speculation directly. He confirmed that no associates from the classes of 2022 and 2023 have been asked to leave in the past 24 days, reinforcing the message that Goodwin is not conducting layoffs at this time.
TECHNOLOGY
AI revolution poised to reshape law firm operations and economic models
Mike Suchsland, an investor and legal tech expert, highlights the transformative impact of artificial intelligence (AI) on the legal industry. Beyond enhancing efficiencies, AI is set to redefine law firm operations and economic models, challenging traditional practices like the billable hour. AI's ability to perform complex legal tasks at unprecedented speeds demands a shift toward activity-based billing models and greater technological proficiency among lawyers. Law firms must navigate generational conflicts, adapt their business models, and manage the transition to AI-driven operations to remain competitive and profitable in the evolving legal landscape. 
CASES
OpenAI seeks to block rival's access
OpenAI Inc. has requested a judge to prevent Dr. Ricardo Baeza-Yates, a consultant for eight newspapers involved in a copyright lawsuit against the company, from accessing sensitive training data. Dr. Baeza-Yates, who is also the chief scientific officer of Theodora AI, a competing firm, raises concerns about potential conflicts of interest. OpenAI's attorneys filed this request on October 18 in the US District Court for the Southern District of New York, highlighting the competitive nature of the AI industry. The case underscores the ongoing tensions between tech companies and traditional media regarding copyright issues.
Ozempic plaintiffs push for marketing discovery despite court-imposed limits
Plaintiffs in the Ozempic multidistrict litigation (MDL) are pushing back against a court ruling that limited discovery into the marketing campaigns of pharmaceutical companies Eli Lilly and Novo Nordisk. The plaintiffs argue that some marketing discovery, particularly related to the promotion of the drugs to the medical community, is essential to address key legal issues such as preemption and the adequacy of product warnings. U.S. District Judge Karen Marston had previously restricted early discovery to focus on diagnosing gastroparesis and the failure-to-warn claims, excluding marketing. The defendants contend that allowing marketing discovery at this stage would undermine the efficiency of resolving core legal issues. A ruling on the matter is expected soon, with over 1,000 cases already filed.
Microsoft settles gamer lawsuit over deal
Microsoft Corp. has settled a lawsuit initiated by a group of gamers aiming to block its $69bn acquisition of Activision Blizzard. The lawsuit, filed in 2022, claimed that the merger would harm consumers by reducing product releases and increasing prices. However, the judge dismissed the initial case due to a lack of evidence. Joseph Saveri, the lawyer for the gamers, expressed concerns, commenting: "As time passes, Microsoft continues to increase its market power, prices have increased, games continue to be cancelled." Ultimately, both parties agreed to drop the lawsuit on October 14, with each side covering its own expenses. Activision Blizzard, based in Santa Monica, California, remains a leading video game holding company.
SUSTAINABILITY
SCOTUS backs Biden's climate rules
The U.S. Supreme Court has declined to block Biden administration regulations aimed at reducing greenhouse gas emissions from power plants, marking a significant victory for climate action. The decision comes amidst challenges from a coalition of Republican-led states and businesses concerned about compliance costs. Justice Clarence Thomas dissented, advocating for a pause on the regulations, while Justices Brett Kavanaugh and Neil Gorsuch expressed potential sympathy for the challengers' case after the D.C. Circuit's ruling. Kavanaugh noted that the plaintiffs “are unlikely to suffer irreparable harm before the Court of Appeals for the D. C. Circuit decides the merits.” This ruling contrasts with the Court's previous stance on EPA litigation, where it had temporarily blocked the "Good Neighbor Plan" last summer.
INTERNATIONAL
Ireland's legal landscape transformed
Ireland has made a significant change in its legal framework by allowing barristers to form partnerships with solicitors within law firms, a move that follows the introduction of legal partnerships (LPs). This reform aims to modernize the legal services market, nearly a decade after the Legal Services Regulation Act 2015. A survey by Ipsos B&A for the Legal Services Regulatory Authority (LSRA) indicated that 60% of solicitors support LPs, with many believing they will provide younger barristers with “a more stable income.” However, concerns persist regarding the potential impact on smaller law firms and competition. Dr. Brian Doherty, chief executive of the LSRA, stated: “Legal partnerships will help modernize the delivery of legal services, benefiting both clients and practitioners.” While optimism exists about the benefits of LPs, questions remain about their effect on access to justice and market competition.

 

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