01/27/09
Reserve Sues Two Law Firms for Malpractice
Reserve Management Co. Inc., a major money-market fund company which has already been sued for fraud by the Massachusetts' secretary of the commonwealth, but the two cases seem to be unrelated. Reserve claims that while being advised by Dechert LLP, from 1997 to 2002, the firm failed to inform them of new SEC regulations that made the composition of their board invalid. Reserve claims the same for K&L Gates, who advised Reserve from 2003 to 2005. After having employed new counsel and being informed their board was outside regulations, Reserve made all necessary changes, which cost them $4 million, which they are now suing Dechert and K&L Gates for, plus damages.
Small Firms Increasing Business in Poor Economy
Though unable to find a magic reason why business is increasing in a tough economy, small firms like Gersten Savage and boutiques like Madama Griffitts O'Hara are actually increasing their business. Spokespersons for both companies were optimistic but conservative in their view of the future. Because they have no specific thing to attribute their success to, they approach future decisions with both caution and assertiveness by not spending excessively and even focusing on ''poaching'' smaller clients from larger firms through advertising campaigns. Some advice offered was to get to know your clients personally so you can help them specifically. If you offer them good help for reasonable prices, they will stay loyal to you.
Detroit's Top Lawyer Resigns for Alleged Racial Slur
Kathleen Leavey, chief of Detroit's law department, resigned for a comment made in a meeting last week with court staffers. She referred to one of the city's courts as a ''ghetto court.'' Leavey maintains she is not racist and meant nothing racial by the comment, only that people have complained about the court's slow service, long lines, and poor treatment of people. However, Chief Judge Marylin Atkins was deeply angered and called Leavey's conduct unprofessional. Leavey says she hopes to return to her former job as a law department employee and says she is ''not going down without a fight.''
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