Management Liability Update

Archive for April, 2010

Regulatory and Judicial Enforcement of “Reasonable Security”

Icon April 19, 2010 – 7:43 am

On April 12, 2010, Brokerage firm D.A. Davidson & Co. was hit by The Financial Industry Regulatory Authority (FINRA) with a $375,000 fine due to a 2007 data breach.    The breach potentially impacted 192,000 customers and involved social security numbers, dates of birth and other confidential information.  In what has been for years now a fairly  common occurrence, the firm [...]



Mayer Brown Lays Off 28 Attorneys Because No One is Leaving

Icon April 9, 2010 – 8:20 am

Despite what he saw as ”encouraging signs for 2010″, the Mayer Brown chairman, Herbert Krueger, wrote in an April 8, 2010 e-mail to all U.S. personnel that the firm would lay off 75 workers, including 28 associates and counsel.   Mr. Krueger wrote in his email, “[a]lthough most of our practices are performing well, overall demand for legal services has not [...]



CLT: Law Firms Resort to Suing Their Clients to Collect Fees

Icon April 9, 2010 – 7:08 am

According to an article in the Connecticut Law Tribune, during the past several years there has been an uptick in the instances of law firms suing to recover their fees.  O’Connell, Flaherty & Attmore based in Hartford, Connecticcut, has been suing clients since 2008, and the firm “has 29 pending cases seeking about $523,000 in unpaid [...]



NJ Supreme Court Sides with Employee on Email Privacy Case

Icon April 5, 2010 – 8:12 am

On March 30, 2010, the New Jersey Supreme Court issued its opinion in Stengart v. LovingCare Agency, Inc., 2010 WL 1189458 (N.J. March 30, 2010).  This hotly anticipated ruling was a clear win for employee privacy rights.  It was also clearly the right decision given the facts.   In its decision, the Court affirmed the Appellate Court’s ruling that an [...]