The BLT: The Blog of Legal Times

After Privacy Fix, Law Firm's Netflix Advocacy Ends

A year after Greenberg Traurig revealed that it started lobbying for Netflix Inc., the law firm's work for the video subscription service ended.

Greenberg Traurig filed a lobbying termination report with Congress last week, saying it stopped advocating for Netflix on February 28. President Barack Obama on January 10 signed into law legislation that amended the Video Privacy Protection Act, the target of Greenberg Traurig's lobbying.

Netflix hired Greenberg Traurig to push for the amendment bill, which gave the company's U.S. members the ability to use Facebook to automatically share details about movies and television shows they watch.

The Morning Wrap

Obama's Budget: President ­Barack Obama's annual budget proposal next week will feature cuts to Medicare and Social Security, The New York Times reports. "The president has made clear that he is willing to compromise and do tough things to reduce the deficits, but only in the context of a package like this one that has balance and includes revenues from the wealthiest Americans and that is designed to promote economic growth," said a senior administration official, who declined to be identified confirming details about the coming budget.

North Korea: Some lawyers say the United States would have the legal justification to launch a pre-emptive strike against North Korea, The National Law Journal reports. "Rhetoric alone does not pose an imminent threat," said Arnold & Porter partner John Bellinger III, who served as the State Department's top lawyer from 2005 to 2009 and the National Security Council's legal adviser from 2001 to 2005. "But if the U.S. felt that North Korea did pose an imminent threat of attack, certainly U.S. government lawyers would conclude that the government has the right to act under the age-old doctrine of anticipatory self-defense."

More Mergers: More law firm mergers are expected to take place in 2013 than in each of the past two years, The Am Law Daily reports. "Unless something unforeseen happens, we'll be ahead this year," said Ward Bower, a principal at legal consultancy Altman Weil, which released a report on law firm combinations this week.

D.C. Police Issue Order Affirming Public's Right to Photograph Officers

Updated at 5:58 p.m.

To settle a lawsuit brought by a man who claimed he was wrongly detained after taking pictures of police activity, the Metropolitan Police Department has issued a new general order (PDF) spelling out the public's right to photograph and record police officers carrying out official business.

Jerome Vorus sued the city last June in U.S. District Court for the District of Columbia. His attorney, Arthur Spitzer of the American Civil Liberties Union of the Nation's Capital, filed a notice of voluntary dismissal in the case today. In an interview, Spitzer confirmed that the new general order was part of the settlement agreement.

The order, which went into effect July 19, "explicitly recognizes and instructs all the members of the police department that people have a constitutional right to video and audio record them while they're doing public business in a public place," said Spitzer, legal director of the local ACLU affiliate. "And then goes on to provide very useful, I think, detailed guidance what to do in various situations."

The Morning Wrap

Fees, Please: It costs a lot to go bankrupt if you are the biggest company to ever do so. Lehman Brothers' three-year-old Chapter 11 has been lucrative for lawyers and consultants, with $1.6 billion in fees generated so far in the case, CNNMoney reports. Lehman Brothers' primary law firm, Weil, Gotshal & Manges, is set to collect $383 million for its work.

Today is Super: It's the busiest day of the primary season -- Super Tuesday -- with 10 states holding contests to find a Republican challenger to President Barack Obama. Mitt Romney can seize command of the Republican presidential race today with big wins in states like Ohio, but his challengers hope to take a few states away from him, Reuters writes. Meanwhile, Obama plans to steal a little of the political spotlight with his first formal news conference since last year, CNN reports.

Salty Dispute: An avid moviegoer in Michigan has filed a class-action lawsuit against AMC Theaters in that state over the price of popcorn and other concessions, the L.A. Times reports. The suit will test the boundaries of Michigan's price-gouging law, and could spark similar lawsuits across the nation if successful, the lawyers say.

Supreme Court Insider: The Supreme Court newsletter launched a series Monday that examines each of the four issues the Supreme Court will consider later this month while weighing the constitutionality of the Affordable Care Act. In Monday's newsletter, we have an analysis of the threshold question of jurisdiction, as well as a profile of Covington & Burling's Robert Long, who will argue the issue March 26. The newsletter also has pro and con columns on jurisdiction by Alan Morrison of George Washington University Law School and the Cato Institute's Ilya Shapiro. Click here for a look at the newsletter and more information on subscribing.

Big Hits: NFL players and coaches could theoretically be prosecuted in the U.S. for battery as part of the New Orleans Saints "bounty" scheme, where defensive players were paid money to intentionally injure opposing players. But that's not likely for two main reasons, a Tulane University School of Law associate professor writes in a legal analysis of the scheme for NFL.com.

Federal Prosecutors Want $225K From IMAX Dinosaur Film Producer

Federal prosecutors in Washington are not giving up trying to get back the $225,000 that the government contends it mistakenly paid to the producers of an IMAX film about dinosaurs that is playing at the Smithsonian Institution.

The U.S. Attorney’s Office for the District of Columbia in April sued Comet Distribution Ltd. to recoup the alleged overpayment. But the case hit a snag. For months, according to prosecutors, the government was unable to serve the necessary court papers to let the case move forward.

The hitch now appears resolved. U.S. District Judge Beryl Howell this month was preparing to dismiss the case for the prosecutors’ failure to find Comet’s agent to serve the suit.

An assistant U.S. attorney, Judith Kidwell, said the government has now delivered the suit to Comet’s agent, Valerie Thibault, in Dade City, Fla. Kidwell said in court papers (PDF) this month that the government had trouble finding Thibault because she had moved.

A spokesman for the U.S. Attorney’s Office, William Miller, on Monday confirmed Comet has been served a copy of the suit. Miller, however, declined further comment about the status of the civil case.

Thibault was not reached for comment Monday afternoon. Carl Samson, a producer of “Dinosaurs 3D: Giants of Patagonia,” the 40-minute film that is playing at the National Museum of Natural History, did not immediately respond to an e-mail seeking comment.

In June, Samson sent Kidwell an e-mail asking for a “proposal agreement,” court records show. Samson responded to a message from Kidwell that inquired about Thibault’s whereabouts. Neither side in the dispute has filed court papers suggesting the dispute has settled. There is no attorney of record identified for Comet.

The suit against Comet alleges unjust enrichment stemming from the government’s mistaken extra payment for the licensing and exhibition of the dinosaurs film. The government claims it sent in mistake an extra $300,000 to Comet. Comet, according to the suit, returned $75,000.

The Smithsonian and Comet entered into a 50-year contract for the dinosaurs film. The Smithsonian, according to the contract, agreed to pay a one-time fee of $600,000.

The contract allowed two installments—one before March 1, 2008 and the other before October 1, 2008. Prosecutors contend the government paid an extra $300,000 in October 2008.

D.C. Superior Court Adopts New Rules on Using Electronic Devices

Hoping to stem the use of electronic devices in courtrooms, District of Columbia Superior Court Chief Judge Lee Satterfield issued a new administrative order (PDF) on Wednesday outlining an official court policy.

The court already has rules against bringing in sound or video recorders, but advances in technology that make it possible to record on nontraditional devices – phones and computers, for instance – meant that a new policy was necessary, Satterfield wrote.

People coming in to court are allowed to bring in cell phones, computers, tablets and MP3 players. Cameras or tape recorders have to be left with court security.

Using electronic devices in court may not only run afoul of rules barring broadcasting from courtroom, Satterfield wrote in the order, but also “be disruptive to court proceedings.”

According to the order, anyone entering a courtroom is required to turn off any electronic devices and put them away. The order doesn’t apply to members of the D.C. Bar or other officials in court on business. Members of the media can get an exemption from the policy from the judge.

The order formalizes rules that are already being enforced unofficially in Superior Court. Judges, court employees and U.S. Marshals will often tell court observers or members of the media to put away phones, for instance, but according to Satterfield’s new order there was no policy on the books.

Anyone caught using a device without permission can be kicked out of the courtroom or the courthouse, and also face civil or criminal contempt sanctions.

Fast-talking Lawyers Sponsoring a Screening of the Documentary Fast Talk

Next month, The Supreme Court Institute and Arnold & Porter will be screening a documentary called Fast Talk, which tracks the Northwestern University debate team in its quest for its second consecutive championship.

The Sept. 8 event, moderated by Arnold & Porter partner Lisa Blatt, will start at 4 p.m. at the Philip A. Hart Auditorium, Georgetown University Law Center, 600 New Jersey Ave., N.W., in Washington.

The film will be followed by a panel discussion about competitive debate and oral advocacy.

The documentary (trailer posted below) was directed by Debra Tolchinsky, who according to the website IMDb.com worked as as assistant editor of films such as Kindergarten Cop and Searching for Bobby Fischer. She is also an associate professor of Radio-TV-Film at Northwestern University.

In addition to Tolchinsky, panelists will include U.S. Court of Appeals for the District of Columbia Judge Brett Kavanaugh; Paul Clement, partner at Bancroft; David Frederick, partner at Kellogg, Huber, Hansen, Todd, Evans & Figel; Thomas Goldstein, parter at Goldstein, Howe & Russell; and Neal Katyal, Georgetown University Law Center professor.

The event is free, but people wishing to attend should RSVP to rsvp2@law.georgetown.edu by Sept. 1.

 

The Morning Wrap

Long Fight: Business groups are looking for rays of hope in the federal courts in challenges to the regulations adopted following the financial crisis, The Washington Post reports. A federal appeals court in Washington recently ruled against a Securities and Exchange Commission rule that would have made it easier for major shareholders to put board candidates on a ballot.

Locked Up: A former Luzerne County, Pa., judge who was a central figure in a courthouse scandal is heading off to federal prison for nearly 30 years. The Legal Intelligencer reports former Judge Mark Ciavarella Jr. was sentenced to 28 years on charges that included racketeering, money laundering and tax fraud. In a statement read in court, Ciavarella said the public and prosecutors unfairly demonized him.

Tablet Wars: Samsung Electronics Co. is heading to court later this month in Europe to challenge a ruling that banned the company from selling its Galaxy tablet computer in most of the European Union, The Wall Street Journal reports. A regional court in Düsseldorf, at the request of Apple Inc., issued a preliminary injunction against Samsung.

Absent: The New York Times spends the day in Manhattan housing court waiting for the arrival of a defendant named Faye Dunaway. Yes, the Faye Dunaway. Her landlord is seeking to evict her from her one-bedroom apartment on the Upper East Side. Dunaway did not make an appearance in court.

Typo: The U.S. Court of Appeals for the Federal Circuit said a trial judge has the authority to fix an obvious drafting error in a patent. The appeals court unanimously reversed a July 2008 summary judgment ruling that had deemed a patent invalid.

Death After Surgery: A woman in Framingham, Massachusetts, died one day after a breast augmentation procedure. The Boston Globe said the woman's family has hired a lawyer. Autopsy results are pending. "Woozy on the afternoon after the operation, she fell in her parents’ bathroom and hit her head," according to the report.

Michael Jackson's Former Manager Pleads Guilty in Tax Case

The former general manager for the late pop idol Michael Jackson pleaded guilty in Washington federal district court today to charges she failed to file federal and District income tax returns.

Raymone Bain, a resident of the District, faces a maximum of a year in prison and a $100,000 fine for the federal charge, six months in prison, and a $5,000 fine for the D.C. criminal violation, the U.S. Justice Department said. U.S. Magistrate Alan Kay scheduled sentencing for Aug. 31.

Bain of Washington’s Davis, Bain & Associates, a public relations firm, became the personal general manager for Jackson in 2006. DOJ officials said Bain was responsible for the daily operations of the Michael Jackson Company, including financial, public relations and marketing tasks. She received $30,000 monthly as general manager and president.

Bain received a law degree from Georgetown University Law Center in 1984 but was not a licensed attorney, according to court records.

Prosecutors alleged Bain did not pay income tax from 2006 to 2008. The government estimated the tax loss between $200,000 and $400,000. In 2007 and in 2008, Bain, according to court records, requested an extension to file U.S. income tax returns.

Assistant U.S. Attorney Susan Menzer and DOJ Tax Division trial attorney Karen Kelly were not immediately reached for comment this morning on the plea deal. Kelly is the assistant chief for the division’s Northern Criminal Enforcement Section.

“Bain well knew, and was fully aware that the law required she file federal tax returns and DC tax returns each year, but nevertheless failed to file,” prosecutors said in court papers. A copy of the plea agreement is here.

Bain’s attorney, Frederick Cooke Jr. of Washington’s Rubin, Winston, Diercks, Harris & Cooke, was not immediately reached for comment. Bain also was not reached for comment.

The Washington Post in 2006 wrote this profile of Bain, describing her as a "master of the care and coddling of famous folk, especially those who happen to find themselves in exceedingly hot water."

The death of Jackson in June 2009 left behind multiple lawsuits involving the pop music star. In one suit filed before Jackson's death, Bain demanded $44 million she claimed under a contract with Jackson. A trial judge in May 2010 sided with the Jackson estate. Bain's lawyers are fighting to get the judgment set aside.

DOJ Demands $225K Payment From Film Distributor

Updated 7:08 p.m.

On Oct. 15, 2008, the Smithsonian Institution wired $300,000 to a company for the licensing and exhibition of the film, "Dinosaurs: Giants of Patagonia."

The very next day, the company received a $300,000 check from the Smithsonian for the same invoice. Mistake? That's what the government maintains.

The Justice Department wants the extra money returned. Alleging unjust enrichment, prosecutors this week sued Fort Lauderdale-based Comet Distribution Ltd. in Washington federal district court to force the return of the overpayment.

DOJ lawyers said the Comet president promised to refund the government its extra money but has failed to do so. The suit (PDF) said Comet has returned $75,000 of the extra $300,000, leaving a $225,000 debt to the government.

Justice Department lawyers said in the suit that the government is seeking “a debt owed to the United States for an overpayment mistakenly paid” to Comet. The suit does not explain how the Smithsonian paid twice on the same invoice.

Comet and the Smithsonian entered into a 50-year contract (PDF) that included a $600,000 licensing fee, to be paid in two installments—one by March 2008 and the other by October 2008. The suit indicates the Smithsonian made a double-payment in October 2008.

A Comet official was not immediately reached for comment this afternoon. Court records do not show that Comet has retained counsel.

Assistant U.S. Attorney Judith Kidwell, who filed the suit on behalf of the United States, declined to comment. A Smithsonian spokesperson was not immediately reached for comment this afternoon.