ATTORNEY BLOG: An unfortunate trend – Immigration-related cases make up the largest category of federal crimes

By: Francis D. Wymard, Esq.

About 36% of all criminal cases filed in federal district courts in late 2009 and early 2010 involved immigration-related offenses, the Administrative Office of the U.S. Courts reported in March. Of 78,013 criminal cases filed in the twelve months ending September 30, 2010, 28,046 (35.9%) involved an immigration crime. This is an 8.7% increase from the prior year. Immigration-related offenses constitute the single largest category of federal crime lodged by prosecutors (drug offenses came in second with 15,785). This data is consistent with a recent U.S. Sentencing Commission report stating that immigration offenses resulting in a sentence in 2009 are now the largest category of federal crime (32.2%) – the first in the Commission’s 20 years of data gathering for which this is true.

Click here to read the Administrative Office of the U.S. Courts report.

Click here to read the U.S. Sentencing Commission report.

If you have a question for Francis or would like to make a comment on the issues discussed in this update, please email SocialMedia@burnswhite.com.

LEGAL UPDATE: Supreme Court expands scope of employee discrimination cases

By: Dean F. Falavolito, Esq.

Last week, the Supreme Court issued its ruling in Staub v. Proctor Hospital, a much-anticipated decision that will greatly expand the scope of employee discrimination cases. The case was decided under the Uniformed Services Employment and Reemployment Rights Act (USERRA), but because USERRA uses the same discrimination standard as Title VII and the Age Discrimination in Employment Act (ADEA), this decision could potentially have far-reaching consequences in all discrimination cases.

The issue at hand was whether an employee could state a case for discrimination if the person with the discriminatory motive was not the person who actually made the adverse employment decision against the employee (this is sometimes referred to as a “cat’s paw” case). Specifically, the employee was able to prove that his immediate supervisors were hostile towards him as a result of his military service. The employee was later terminated, but by a superior higher up the corporate ladder who (admittedly) had not been hostile or discriminatory toward the plaintiff because of the plaintiff’s military service.

The Supreme Court held that even if the decision-maker did not have any discriminatory motives toward the employee, the employee can sustain a discrimination claim if the decision maker was even slightly motivated by or relied on any information from the discriminating supervisor. This decision has a far reaching effect on employers, as it potentially makes the employers more likely to be liable for “mid-level” managers’ conduct and makes it far more difficult for an employer to defend a case by claiming that a discriminating employee played no role in the plaintiff’s termination.

Burns White spotlighted in extensive Pittsburgh Post-Gazette feature story

Pittsburgh, March 7, 2011 – A feature story on Burns White that originally appeared in the March 1, 2011, edition of The Legal Intelligencer was republished in the March 7 Pittsburgh Post-Gazette as part of a news sharing agreement between the two organizations. The piece features numerous quotes from Founding Member David B. White and chronicles the Firm’s changes throughout 2010, as well as the growth of the Employment, Environmental, Financial Services Litigation, Immigration, Oil & Gas and White Collar Criminal Defense Practice Groups.

Click here to read the full article.

Film co-written by Burns White client wins two Academy Awards

Pittsburgh, March 1, 2011 – Congratulations to Burns White client Keith Dorrington, whose film “The Fighter” won Oscars for Best Supporting Actor (Christian Bale) and Best Supporting Actress (Melissa Leo) at the 83rd Academy Awards on Feb. 27.

Mr. Dorrington himself had received an Oscar nomination for Best Original Screenplay.

Inspired by the true story of brothers Micky Ward and Dicky Eklund, “The Fighter” received four additional nominations, including Best Picture, Best Director, Best Supporting Actress (Amy Adams was also nominated in this category) and Best Editing.

Congratulations again to Keith Dorrington and everyone associated with “The Fighter.”

LEGAL UPDATE: NLRB settles case regarding employee Facebook post

By: Dean F. Falavolito, Esq.

When the National Labor Relations Board (NLRB) filed suit against an employer in November of 2010 for terminating an employee as a result of her complaints about the employer on Facebook, other employers around the country took notice. The NLRB’s position was that her comments were “protected concerted activity,” which(under the National Labor Relations Act) allows employees to discuss the terms and conditions of their employment with co-workers and others.

Therefore, this firing had the potential to affect all employers, whether or not they had unions in the workplace. The fact that this case quickly settled without leading to any binding precedent can be seen as a positive for employers, but it still serves as a word of caution to any employer considering taking action against an employee for postings on social media.

Click here for the Feb. 8 Wall Street Journal article detailing the settlement.

If you have a question for Dean or would like to make a comment on the issues discussed in this update, please email SocialMedia@burnswhite.com.

ATTORNEY BLOG: Validating our support of alternative billing arrangements

By: David B. White, Esq.

When our firm was founded in 1987, we sought to bring a progressive, pro-active approach to representing our clients, with the goal of creating innovative solutions while maintaining the highest legal standards.

Our attorneys were to see themselves as advisors who worked to understand our clients’ businesses and anticipate their needs. We understood then – as we do now – that clients and potential clients regarded return on investment as a leading criterion in choosing their legal counsel. History has demonstrated that we haven’t forgotten these core values, especially in regard to our decision to explore alternative billing arrangements with clients right from day one.

Several recent measurements, including The American Lawyer’s 2010 Survey of Leaders of America’s 200 largest law firms, have validated this strategy. According to the survey, 91 percent of respondents said their firm used a flat fee for entire matters in 2010, up 9 percent in just one year, and nearly 93 percent used a flat fee for at least some stages of matters, up 25 percent from 2009.

Those of us with corporate clients should also take note of the results from a survey of 453 corporate chief legal officers and general counsel conducted by the American Association for Corporate Counsel (ACC) and The American Lawyer. A total of 53 percent of general counsel polled revealed that they used flat fee billing for an entire matter, an increase of 5 percent from 2009. The 128 general counsel polled from companies with revenues of $1 billion or more used alternative billing arrangements more than 62 percent of the time and only 13 percent said they didn’t use alternative billing arrangements at all.

Even more revealing are the actual words of general counsel about their experiences with alternative billing arrangements. Their candor (albeit anonymous) as documented in the December 2010 edition of Corporate Counsel Magazine online should serve as a shot across the bow to those firms that are – as-of-yet – unwilling to buy in to a more modern way of partnering with their clients.

“Virtually all firms are willing to talk about alternative fee arrangements, but few are actually willing to commit,” said one law department leader.

“The firms all seem to think ‘alternative’ means an alternative path to the same high fee,” said another.

“Law firms need to adapt to the new marketplace or lose our business,” concluded a general counsel, in what appears to be a startling ultimatum.

Amid the backdrop of the added pressure on law firms to make alternative billing arrangements with their clients, it’s again important to point out that Burns White has been a pioneer in this type of agreement since our inception, when we immediately entered into such an accord with our largest client. During the last 20-plus years, we’ve initiated various, creatively structured flat fee arrangements and monthly fixed retainer fees with clients that allow for adjustments in their payments on a monthly, semi-annual or annual basis, depending upon what is mutually agreeable between the firm and those we represent.

Surveys and feedback such as those documented above serve to support not just our decision regarding alternative billing arrangements, but also our firm’s overall philosophy regarding client representation: We strive to offer higher levels of productivity and cost efficiency to help you enhance your bottom line.

Burns White Founding Member appointed e-discovery Special Master

Pittsburgh, Feb. 9, 2011 – Burns White Founding Member David B. White has been appointed an e-discovery Special Master by the Board of Judges for the United States District Court for the Western District of Pennsylvania. In this capacity, he will be selected by a Federal Court Judge to resolve e-discovery disputes in certain federal cases. On November 16, 2010, the Board of Judges approved the establishment of a list of attorneys with expertise in electronic discovery to serve as Special Masters upon appointment by the Court.

Click here to learn more about David B. White.

ATTORNEY BLOG: U.S. financial crisis – the lost story?

By: Lyle Washowich, Esq.

Arguably the “lost” story during the U.S. financial crisis is (and has been) the profound impact of this crisis on the private mortgage insurance industry. Unlike the spotlight placed on the “too big to fail” banks and other major financial institutions – many of whom received U.S. taxpayer financed “TARP” funds – the private mortgage insurance industry has been turned upside down with little fanfare and virtually no public financial support. Nevertheless, the impact of the financial crisis on the private mortgage industry could well be more profound than the impact felt by the major financial institutions.

Indeed, according to the Mortgage Bankers Association, the “survival to date by all but one of the private MI’s is something to be duly recognized.” See “Private MI: The Last Man Standing,” Robert Stowe England, Mortgage Banking, January 2011. Acknowledging that the remaining six private MI’s have lost substantial monetary sums during the crisis, David Katkov, Executive VP and Chief Business Officer of The PMI Group, Inc., noted that “the industry as a whole experienced some of the toughest issues facing the housing finance system, because we’re structured to be in that first-loss position on low-down-payment loans.” Id. Indeed, given the losses to date and the remaining challenges, the survival of the remaining private MI’s is no guarantee.

In short, the private MI’s serve a market that (under the Federal Housing Enterprises Financial Safety and Soundness Act of 1992) requires loans purchased by Fannie Mae and Freddie Mac to carry mortgage insurance to cover potential losses for loan balances above 80 percent of loan-to-value (LTV). While Standard & Poor’s remains worried about some of the MI’s that exist below investment grade today, both S&P and Moody’s cite as a positive sign that a new company is entering the market — Essent Guaranty Inc., from Radnor, Pennsylvania. To stay alive, S&P has calculated that more than $3.34 billion was raised in 2010 by the MI’s. As cash-burn issues are now prevalent, historically going back to 1990, roughly 20% of all mortgages in the country were higher than 80% LTV – which represents “the insurable marketplace,” according to Mike Zimmerman, Director of Investor Relations at MGIC. Within this slice, the private MI’s have typically insured about 2/3 of the business while the federal government has insured the rest. Id.

Any perceived, and certainly real, recovery by the MI’s will signal the dawn of yet another new day in the residential mortgage finance industry. Stay tuned this year and next year to see how these players rebound. Their trajectory will be a sign of the direction of the industry as a whole.

If you have a question for Lyle or would like to make a comment on the issues discussed in this Blog, please email SocialMedia@burnswhite.com.

Burns White attorneys author article for Legal Intelligencer supplement

Pittsburgh, Jan. 26, 2011 – Burns White Member William Mundy and Associate John Skrocki have authored an article that appeared in The Legal Intelligencer’s Jan. 25 litigation supplement focusing on Medical Malpractice.

The piece focuses on the impact the July 15, 2010, Superior Court opinion in Scampone v. Grane could potentially have on nursing home litigation.

Click here to read the article.

Click here to learn more about William.

Click here to learn more about John Skrocki.

Burns White client nominated for Best Original Screenplay Academy Award

Pittsburgh, Jan. 25, 2011 – Congratulations to Burns White client Keith Dorrington, who received an Oscar nomination today for Best Original Screenplay for “The Fighter.”

Inspired by the true story of brothers Micky Ward and Dicky Eklund, “The Fighter” received a total of seven nominations, including Best Picture, Best Director, Best Supporting Actor, Best Supporting Actress (two separate actresses from the film were nominated in this category) and Best Editing.

Dorrington shared the nomination with Scott Silver, Paul Tamasy and Eric Johnson. He first started chronicling the lives of Ward and Eklund in 1999. Budgeted at just $22 million, the movie was a real comeback story itself, getting knocked around Hollywood for nearly 12 years before finally making it to the big screen. The wait was worth it, as “The Fighter” has grossed more than $73 million to date and also picked up two Golden Globe Awards earlier this month for Best Supporting Actor and Best Supporting Actress.

The 83rd Academy Awards will be broadcast live on Feb. 27.

Congratulations again to Keith Dorrington.

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