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Locke Lord Bissell & Liddell announce layoffs

The chairwoman of Locke Lord Bissell & Liddell, Jerry Clements, announced today the firm laid off associates, counsel and staff for economic reasons. She declined to give a headcount but said the layoffs affected all 13 offices. No partners were laid off, nor were any de-equitized or changed to counsel status. Clements said the hardest-hit practice areas were real estate and finance.

According to Clements, the staff layoffs are effective today and impact most levels of associates.

The firm was growing earlier this year. On Feb. 2, Locke Lord announced that 33 lawyers from New York intellectual property boutique Morgan & Finnegan, including 13 partners, joined the firm. One of those lawyers joined the San Francisco office.

Locke Lord has offices in Dallas, Houston, Austin, Atlanta, Boston, Chicago, London, Los Angeles, New Orleans, New York, Sacramento, San Francisco and Washington, D.C.

Full story at Texas Lawyer.

Witness-tampering conviction to stay against America's Sheriff

Earlier this month former Orange County Sheriff Michael Carona asked a federal judge to have his witness-tampering conviction thrown out. That bid was denied today by U.S. District Judge Andrew Guilford, who also denied two other motions aimed at undoing the jury verdict.

Carona attorney John Cline had argued that prosecutors charged the former lawman under the wrong statute, making his conviction irrelevant.

Sentencing is set for April 27.

Click these for details.

CA judges not giving up perks

In the wake of worker furloughs and slashed programs to close a $41 billion budget gap, the state of California still has more than 400 judges in Los Angeles County who each make more than the chief justice of the U.S. Supreme Court.

Los Angeles County judges get $46,000 a year from the county on top of their state salaries, giving them a total of $225,000. U.S. Supreme Court Chief Justice John Roberts makes $217,400 per year, and associate justices bring in $208,100.

Eighteen of California's 58 counties give more than 800 superior court judges about $25 million a year in extra benefits on top of their $179,000 state salaries, even as they lay off employees and reduce services amid the recession. The state picks up the tab for extras in 19 counties.

Defenders of the system say the supplemental benefits are necessary to attract and retain good lawyers, who often take a pay cut to serve in the judiciary.

Click here for the full story.

Suit demands recognition and health care for veteran "lab rats"

Six servicemen are suing the CIA and the US Army on behalf of thousands of American soldiers who underwent chemical, biological and drug tests in the 1950s-1970s during the Cold War. The servicemen say they are seeking recognition and health care, but no money.

The suit, prepared by the San Francisco-based law firm Morrison and Foerster, alleges "a chilling tale of human experimentation, covert military operations and heretofore unchecked abuses of power by our own government" and says the soldiers were used "in the same capacity as laboratory rats."

The suit was filed by the Vietnam Veterans of America in federal court in Oakland, California.  A trial date has not been set.

Click here for the full story.

Manatt Phelps lays off 17

Manatt, Phelps & Phillips, citing continued challenges caused by the recession, has laid off 17 lawyers and eight staff members, according to the law firm.

The Los Angeles firm, which has more than 400 lawyers, issued a statement on Monday: "The broad economic slowdown continues to present challenges to businesses in every industry. The quality and breadth of our national practice, as well as initiatives to improve resource utilization and reduce expenses, have positioned us to meet these challenges. Responsible stewardship, however, requires ongoing evaluation and appropriate alignment of staffing levels with client needs."

The layoffs were first reported on the blog Above the Law.

Read the full NLJ story.

First Amendment battle brews in Victorville

In a move that legal experts said is patently against the law, a local judge in Victorville ordered a Daily Press reporter on Monday not to print the name of a witness who testified in open court. 

The Daily Press says Judge Bridgid McCann gave the order to one of its reporters Monday after an alleged victim in a sexual abuse case testified in San Bernardino County Superior Court. The alleged victim, a U.S. Army soldier, wore a name badge.

The newspaper plans to file a complaint with Commission on Judicial Performance.

Click here for details.

Attorney-client privilege still an issue in Broadcom case

Federal prosecutors in the criminal stock options backdating case involving Broadcom Corp. have appealed a recent decision finding that certain statements made by William Ruehle, the former chief financial officer of the Irvine, Calif.-based technology company, are protected under the attorney-client privilege.

Ruehle and Henry Nicholas, the co-founder and former chief executive of Broadcom, were indicted last year on charges including conspiracy and securities fraud related to backdated stock options that forced the company to restate more than $2.2 billion in 2007.

Both have pleaded not guilty.

Full details at NLJ.com.

Amex beats travel insurance overcharge rap without having to travel to the courtroom

In a rare case of a national class action going to trial, American Express Co. has defeated a consumer class action in California alleging that it overcharged customers as much as $310 million for travel insurance.

The win was all the more unusual because it came at the end of the plaintiffs' 11-week trial presentation of evidence and without American Express putting on its case.

The suit alleged that American Express overbilled on travel insurance for cardholders who charged flights on their charge cards and that it allegedly used deceptive marketing of the program that misrepresented or was unclear about how the system worked.

The California trial that ended on March 26 was the second phase of the long-running dispute. This phase centered on the deception marketing allegations. Judge George Hernandez of the California Superior Court in Fremont had previously ruled in the first phase of the trial, which began in November, that the terms of the contract with customers were unambiguous under California law.

Max Folkenflik of Folkenflik & McGerity in New York, an attorney for the plaintiffs, pledged to appeal the trial court ruling.

Full story at NLJ.com.

Karatz opts for a not guilty plea

Former KB Home Chief Executive Bruce Karatz entered a not guilty plea before U.S. District Court Magistrate Judge Jeffrey W. Johnson in Los Angeles. Earlier this month Karatz was indicted on charges of manipulating stock options and concealing his actions from investors and regulators.

If convicted on all 20 felony charges, Karatz could face a maximum punishment of 415 years in prison.  Regulators say Karatz personally netted more than $7 million from the backdating of options at Westwood-based KB Home. He served as chairman and chief from 1986 to 2006, when he resigned. 

Free on $750,000 bond secured by his Bel-Air mansion, Karatz appeared in court with attorney John Keker of the San Francisco law firm of Keker & Van Nest. A trial date is scheduled for May 19.

Details at LA Times, which also links to a story that features praise for Karatz from friends and colleagues.

Financial and securities fraud cases on the rise, so are associate hires

In the midst of so many layoffs, plaintiff firms with securities class action practices are hiring associates.

Thanks to an influx of large financial and securities fraud cases, 60-lawyer Bernstein Litowitz Berger & Grossmann has added eight associates firmwide since mid-2008.  In that time, the firm also hired four counsel. San Diego partner Blair Nicholas says he's seeing more defense-side resumes lately. 

Bernstein Litowitz has recently been appointed lead or co-lead counsel in securities fraud actions involving New Century Financial, Washington Mutual and Lehman Brothers, among others.

For more on securities litigation hires, read the full story at The Recorder.