The BLT: The Blog of Legal Times

Restaurant Dreams

It seems that a lot of lawyers these days are dreaming, not about winning cases, but opening a restaurant -- or at least investing in one. One D.C. lawyer, McKee Nelson tax lawyer Mark Kuller, is acting on his dream; In June he'll open Proof, a wine-centric restaurant at the corner of 8th & G Sts. NW, near the Verizon Center.

In an interview here with Legal Times, Kuller talks about the wine passion that drove him to step back from a lucrative partnership (he is still of counsel) to take a gamble on a restaurant he is having built from scratch. "Take the three most complicated deals you've ever done as a lawyer and square it. That's the level of complexity here," Kuller says, but he's loving it. "If I'm not successful, at least I took a shot," he adds. "But honestly, I don't see myself failing."

Softening the Sanctions

U.S. lawmakers are visiting Cuba this week to attend a trade fair that could lead to the sale of $150 million worth of U.S. goods to the island nation, despite the current U.S. trade embargo. Under a 2000 law, agricultural and food products are exempt from the decades-old embargo, and some U.S. companies and legislators are intrigued by the possible business opportunities under this exemption.

Rep. Rosa DeLauro (D-Conn.) headed the bipartisan group's venture to Cuba this week when Cuba's import agency, Alimport, was holding a trade fair. A spokeswoman in DeLauro's office tells Legal Times that the delegation planned to meet with Cuban government officials and clergy members. "They're there to speak with different folk to have a dialogue about the embargo, the trade restrictions, and what the future between the two countries could be," says DeLauro's spokeswoman Adriana Surfas.

DeLauro is one of several lawmakers who support easing U.S. sanctions against Cuba. She wants to give Cuban Americans living in the United States "family rights," which would let them visit family members in Cuba without first getting permission from the U.S. government.

Expanding Probe

The Justice Department's Office of Inspector General is expanding its probe into the U.S. Attorney scandal, according to a letter sent to Congress today.

The investigation is looking into whether political or other undue considerations played into hiring decisions for nonpartisan jobs at the Justice Department. The probe has centered on Monica Goodling's role in hiring and personnel decisions.

According to the letter, sent to Reps. John Conyers Jr. and Lamar Smith, the key areas of interest also include allegations concerning hiring for the Honors Program and Summer Law Intern Program as well as for the Civil Rights division.

No mention yet, however, on the hiring of immigration judges.

Sunken Treasure for Edwards?

Odyssey Marine Exploration went to the depths of the seas to salvage a centuries-old shipwreck from the bottom of the Atlantic Ocean earlier this month. Now the Tampa-based company will have to climb a legal mountain to determine who gets the bounty – and a presidential candidate is involved.

The biggest shareholder in Odyssey is New York-based Fortress Investments, a private equity and hedge fund manager. The group’s major investor is presidential candidate John Edwards. Last year Edwards received a salary of $479,000, according to financial disclosure forms, while acting as a senior consultant.

But if Edwards wants the bullion, he may have to put some lawyering skills to work.

James Goold, of counsel at Covington & Burling, filed suit in U.S. District Court for the Middle District of Florida yesterday on behalf of his client, the Kingdom of Spain. The suit lays Spanish claim to what may be the richest shipwreck treasure in history. The ship, code-named Black Swan, has an assortment of silver coins thought to be worth $500 million.

Goold says that Odyssey’s refusal to identify the ship, its cargo, or its location has prevented Spain from determining whether it owned the vessel.

“When you conduct salvage without consent you are acting entirely at your own risk,” says Goold. “But all of the information thus far suggests the bullion was Spanish.”

Which means Edwards may also have to start flexing those foreign policy muscles.

Pfizer Faces Criminal Charges in Nigeria

Nigerian officials are claiming pharmaceutical giant Pfizer Inc.'s used an unapproved drug on hundreds of children there during a 1996 clinical trial that lead to severe complications and death. The Nigerian state of Kano filed charges earlier this month on counts of criminal conspiracy and is seeking more than $2 billion from Pfizer.

The Washington Post reports that Nigerian officials are alleging that Pfizer conducted clinical trials on about 200 children and infants at a makeshift camp in Kano. The case claims that half of the children were given an untested antibiotic called Trovan and the other half received a low dose of a comparison drug. It also alleges that the tests killed several of the children and left others paralyzed, deaf, brain-damaged or blind. Pfizer contends that it did nothing wrong.

Pfizer, considered one of the biggest players in the drug industry, spent more than $12 million last year lobbying Congress. This year, the drug company is lobbying on issues including international drug testing.

Tough on Bureaucrats

Public officials in the United States have their complaints. The pay is often lower than in the private sector, the press is watching (sorry, it's our job), and there are all those annoying forms to fill out.

But that's nothing compared with what happened to one Chinese food and drug regulator who tried to supplement his government salary. Zheng Xiaoyu, the country's former top drug regulator, was convicted of taking bribes worth more than $832,000, reports this Associated Press story, apparently to allow drugs to bypass approval standards.

Yesterday, Zheng was sentenced to death. The court said that his actions "had a very negative social impact." The sentence was unusually strict, even for China, but when asked about the case, a Foreign Ministry spokeswoman said, "The Chinese government attaches great importance to the safety and security of food."

On the Move

Foley Hoag’s D.C. office raided Winston & Strawn of Ronald Goodman today. Goodman, former co-head of Winston & Strawn’s global international practice group, is joined by Winston & Strawn associate Geraldine Rischer. Goodman will focus on helping build out Foley’s global and international arbitration practice. He was a member of legal team of the Iran-U.S. Claims Tribunal in the Hague. Rischer previously worked in the office of the chief counsel for international commerce in the Commerce Department.

Morning Wrap

New World Bank Order: President Bush is poised to announce today the man who will replace controversial Paul Wolfowitz, who resigned amid an ethics controversy, as head of the World Bank. The Washington Post reports that Bush is to tap former deputy secretary of state and Bush cabinet member Robert Zoellick as president of the World Bank.

Friends or Foes?: The idea of granting amnesty to illegal aliens is causing some tension between President Bush and his fellow Republicans. The immigration debate has gotton so heated that Bush is now on the offensive and is starting to point fingers at Republicans, saying they are stalling his immigration legislation.

Chinese Stock Plunge: A sharp decline in Chinese stocks could reverberate around the globe, potentially hitting the U.S. financial market as early as today, according to CNN. Alan Greenspan warned Wall Street that it was only a matter of time before the plunge would occur.

New Contender?: Fred Thompson, former Tennessee senator and "Law and Order" star is slated to throw his hat in the presidential ring this summer. According to the Politico, Thompson has already raised several million dollars for his campaign and already has some strong Republican backing.

Founding CBC Member Dies: Parren Mitchell, who helped found the Congressional Black Caucus, was the first black member of Congress from Maryland and the first black to head the House Small Business Committee, died on Memorial Day at the age of 85. Mitchell was known for his civil rights work and his efforts to help minority-owned businesses.

Legal Tender: 401(k) Suits

Litigation alleging excessive fees in retirement plans is heating up, says The National Law Journal (subscription required), a sister ALM publication. A claim for excessive fees in 401(k) plans is reportedly "like the newest toy in the toy box" for the plaintiff's bar.

I've previously written about these lawsuits and suggested that the federal government's Thrift Savings Plan could provide a good model for companies seeking a suit-resistant retirement plan. When it comes to low fees, the TSP, with its selection of inexpensive index funds, is hard to beat.

The Politics of Immigration Judges

Among the noteworthy tidbits Monica Goodling dropped during her testimony before the House Judiciary Committee last week was an internal Justice Department controversy over the appointment of immigration judges.

Legal Times takes a look at the back story behind the controversy: the development of the direct-hiring by the attorney general that allowed for political hires (which, for the record, went back to John Ashcroft's tenure) as well as the lawsuit that challenged this practice and which ultimately led to a freeze and reversal of agency policies.