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Former partner suing Dorsey & Whitney law firm
Headline News | 2008/02/28 13:08

A former partner in the New York office of Dorsey & Whitney is suing the Minneapolis-based law firm, claiming gender discrimination and violations of the whistleblower act, among other things.

Hennepin County District Court Judge Gary Larson heard an hour of arguments Tuesday on the Dorsey firm's motion to dismiss Kristan Peters' suit.

Peters began working as a Dorsey partner in January 2007 and left on June 23. At the core of the case is her handling of a trade secrets dispute on behalf of Wolters Kluwer Financial Services in New York. The matter drew media attention in trade publications, largely because of U.S. District Court Judge Harold Baer Jr.'s 129-page opinion criticizing Peters' behavior.

According to R. Scott Davies of Briggs and Morgan, who is representing Dorsey, Baier scolded Peters 22 times for her handling of the case. Davies said Peters played fast and loose with the litigation, lied to the court and misrepresented circumstances to the firm's partners.

Peters' lawyer James Kaster countered that the judge's behavior, not Peters', was unusual. The behavior Baer disliked -- such as scheduling a 7-hour deposition over two days and refusing to give bathroom breaks -- is not unusual, Kaster said.

Peters was denied her fair share of her $550,000 annual salary and an equity payment from the partnership, Kaster said. She claims the firm should indemnify her for issues stemming from the Kluwer litigation and seeks unspecified damages in excess of $50,000.

"The Dorsey law firm has a well-deserved reputation for excellence," Kaster said in court. "Frankly, I don't believe the treatment of Kristan Peters suits them."

He said Peters was let go because "she refused to fall on her sword" for Zach Carter, a "marquee partner" in the firm's New York office. She complained about his discriminatory behavior, ethical violations and violation of a court order to multiple members of Dorsey's managing team, the complaint said.

In his motion to dismiss the case, Davies said Peters made the claims when she could "see the writing on the wall" regarding her employment.

Peters' lawsuit claims that as a result of the complaints, she was told to resign or be fired and chose "resignation."

Davies said Peters' guaranteed $550,000 salary was "subject to her ethical duties as a lawyer." Peters did not act in good faith and is not entitled to indemnification, he said. He said it was unfair to criticize the judge.

Her conduct was "worse than unprofessional," Davies said. She deleted parts of an e-mail from the judge that she forwarded to a partner and ordered a copy made of disks despite a judge's order to return them to the court.

Davies contends she ordered a junior associate to alter documents so they could be classified as "work product." In filings, Peters claimed the destruction order was a "joke."

Davies also took issue with the gender bias claim, noting the firm's policy panel was led by managing partner Marianne Short from the time of Peters' hiring to her departure.

Peters did not attend Tuesday's hearing. Larson didn't say when he would rule, but asked the parties for an update on mediation within the week.



Sprint posts big loss, stops dividend
Business Law Info | 2008/02/28 13:00
Sprint has lost tends of thousands of key customers to rivals such as AT&T Inc. and Verizon Wireless, hurt by poor customer service and lackluster selection of handsets. The company recently hired a new chief executive, Dan Hesse, to fix its ailing wireless division.

Yet Hesse said Sprint is in worse shape than he thought and that the company's struggles won't end anytime soon, particularly with the U.S. economy turning south.
"I now have had two full months at the helm, and to be perfectly frank, the issues we face are more difficult than what I had expected to find," Hess said in a conference call with analysts.

In the first quarter, Sprint predicted it would lose a whopping 1.2 million postpaid customers, with the potential for a similarly steep decline in the second quarter. That's the same number of postpaid customers Sprint lost in all of 2007.


Moussaoui Challenges Court Secrecy Rules
Legal Career News | 2008/02/27 17:12
Admitted al-Qaida member Zacarias Moussaoui is asking a federal appeals court to undo his guilty plea. He says his lawyers were prohibited from discussing with him crucial evidence in his case. Moussaoui is serving a life sentence. He described himself as the so-called "20th hijacker" and says he was supposed to have flown a fifth airplane into the White House during the Sept. 11, 2001 attacks.

Lawyers are asking an appeals court in Virginia to toss out Moussaoui's guilty plea. They say the strict rules about what classified information could be discussed made it impossible for attorneys to properly advise him. They say that violated Moussaoui's constitutional rights.



Exxon Valdez runs aground at Supreme Court
Lawyer Blog News | 2008/02/27 17:06
The Supreme Court is considering whether to prevent victims of the Exxon Valdez disaster from collecting a $2.5 billion judgment, nearly 19 years after the tanker dumped 11 million gallons of oil into Alaska waters.

In the case being argued Wednesday, Exxon Mobil Corp. wants the court to erase the award of punitive damages to nearly 33,000 commercial fishermen, Native Alaskans, landowners, businesses and local governments.

The 987-foot tanker, commanded by its captain, Joseph Hazelwood, missed a turn and ran aground on a reef in Prince William Sound, causing the worst oil spill in U.S. history.

Two brothers from Cordova, Alaska, were in line in front of the Supreme Court on Wednesday morning, waiting to watch the arguments inside.

Commercial fisherman Steve Copeland, who was 41 at the time of the spill, said he cannot afford to retire because his business has never recovered from the steep decline it suffered due to the disaster.

His brother, Tom, said that Exxon "needs to get told they need to be a better corporate citizen."

A jury initially awarded $287 million to compensate for economic losses and $5 billion in punitive damages. A federal appeals court cut the punitive damages in half. The compensatory damages have been paid.

Now Exxon says it should not face any punitive damages because the company already has paid $3.4 billion in fines, penalties, cleanup costs, claims and other expenses.

It argues that long-standing maritime law and the 1970s-era Clean Water Act should bar any punitive damages, which are intended both to punish behavior and deter a repeat.

The company says it should not be held accountable for Hazelwood's reckless conduct. He left the bridge of the ship before the turn and had been drinking shortly before it left port, both in violation of Coast Guard rules and company policy.

The plaintiffs say the judgment, representing three weeks of Exxon's 2006 profit, is rational and proportionate. It takes account of Exxon's decision to allow Hazelwood to command the ship, despite knowing he had an ongoing drinking problem, the plaintiffs contend.

Justice Samuel Alito, who owns Exxon stock, is not taking part in the case. A 4-4 split would leave the damages award in place.



Court Decision Could Affect Wis. Appeal
Lawyer Blog News | 2008/02/27 13:06
An accusatory letter penned by a woman who turned up dead ultimately helped a jury convict her husband. But it also could be what gets him a new trial in the nearly 10-year-old case.

A jury convicted Mark Jensen last week of killing Julie Jensen on Dec. 3, 1998, in their Pleasant Prairie home. Some jurors cited the letter as a key piece of evidence.

Julie Jensen left the note with a neighbor to give to police if something happened to her.

"I pray that I am wrong and nothing happens, but I am suspicious of Mark's suspicious behaviors and fear for my early demise," Julie Jensen wrote in the letter. She said she refused to leave because of their two young sons.

Mark Jensen, her husband of 14 years, claimed she was depressed, committed suicide and framed him. At the time, Mark Jensen was having an affair with a woman he has since married.

He faces a mandatory penalty of life in prison during sentencing, set for Wednesday. The judge was to determine if he should ever be eligible for parole.

The U.S. Supreme Court will hear a California case with similar elements in April. Legal experts say if the court overturns that conviction, it could pave the way for Mark Jensen to get a new trial.

"It would surprise me if he didn't get a new trial based on that," said Phillip A. Koss, a University of Wisconsin-Madison adjunct professor and Walworth County district attorney.

Mark Jensen, now 48, was charged with first-degree murder in 2002, but legal wrangling over evidence delayed the trial repeatedly.

The evidence included the letter, as well as Julie Jensen's statements to police, a neighbor and her son's teacher about her suspicions.



Network Solutions sued for price fixing
Class Action News | 2008/02/26 17:56

Network Solutions is being sued for front-running internet domains. In early January, the well-known domain registrar started self-registering domains that customers search for but don't immediately buy. The company insists it's merely trying to crackdown on so-called "domain front running," but at least one customer is clever enough to realize this argument makes no sense.

Today, domain hunter Chris McElory chucked a federal class action lawsuit at Network Solutions, insisting that the Comcast of domain registrars uses "fraudulent and deceptive business practices to effectively trap consumers into paying its grossly inflated domain name registrations fees".

In the words of Brian Kabateck, one of McElory's lawyers, Network Solutions is guilty of "a very sophisticated form of price fixing". We take issue with the "very sophisticated" bit.

If you visit the Network Solutions website and show interest in a domain without actually putting your money down, the company will quickly register the address under its own name. For the next four days, you can still purchase the address from Network Solutions, but you can't purchase it from any other registrar.

Back in January, for instance, one loyal Reg reader searched the site for "network-solutions-registers-all-names-searched.com," and minutes later, he discovered that "network-solutions-registers-all-names-searched" belonged to none other than Network Solutions. Meanwhile, other readers have pulled this trick with domain names that describe the company's behavior in very different terms.

Though it won't speak to us, Networks Solutions tells others that by self-registering domains, it's protecting customers from cybersquatters on the lookout for highly marketable urls. "In response to customer concerns about Domain Name Front Running (domains being registered by someone else just after they have conducted a domain name search)," the company has said, "we have implemented a security measure to protect our customers."

So, Network Solutions is front running domains in an effort to prevent other outfits from front running. And judging from a recent ICANN study, those other outfits don't exist.

And even if they do exist, Network Solutions' little trick doesn't prevent them from front-running. It merely forces them to spend their dirty dollars with Network Solutions. Network Solutions claims that it would never sell domains to front runners, but we question its ability to identify front runners. After all, it has failed to identify itself.

The company claims that these mysterious front runners are also "domain tasters," those clever characters that temporarily register thousands of domains just to test their "marketability." And it wants the world to know that if ICANN would just prevent people from returning addresses within five days for a full refund, it will quit self-registering domains.

But this is merely stating the obvious. If ICANN removes the five-day full refund, Network Solutions couldn't self register domains without paying good money for them. And it won't pay good money for them.

As Chris McElory's suit says, Network Solutions' self-registering trick is merely an effort to make some extra dough. If customers search on a name but don't immediately buy, his complaint says, they "cannot register their domain name through any of Network Solutions' less expensive competitors because their chosen domain is unavailable through any other service - which (unbeknownst to the customer) is now held exclusively by Network Solutions - who is now offering to sell the domain to anyone willing to pay its grossly inflated registration fee."

The suit even goes so far as to say that Network Solutions isn't the only guilty party. ICANN is also named. "ICANN rules tacitly say that Network Solutions practice is acceptable," Kabateck told us. "We aren't seeking damages against ICANN. We just want a declaration from the court that its allowing this to go on."

What does Kabateck think of Network Solutions' claim that it's merely trying to destroy domain tasters? "Maybe I'm stupid, but I don't get," he says. And we can assure you he's not stupid.



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