The BLT: The Blog of Legal Times

McGuireWoods Posts Growth in Gross Revenue in 2012

McGuireWoods saw another year of steady growth, posting around a 5 percent increase in gross revenue and profits per partner in 2012, according to our reporting.

The firm's gross revenue grew 5.6 percent, from $567.5 million in 2011 to $599.5 million in 2012. Profits per partner increased by five percent, from $900,000 in 2011 to $945,000 last year. Managing partner Thomas Cabaniss said the growth was evenly distributed firm-wide.

"We've had a pretty good track record of increasing our revenue and we really do focus on that in all areas," Cabaniss said. "It's not one case, it's not one department, it's not one thing. It requires focus across the board."

Former Congressman Jesse Jackson Jr. Pleads Guilty in Corruption Case

Updated 4:36 p.m.

Former Illinois congressman Jesse Jackson Jr. pleaded guilty in Washington today to misusing campaign funds for personal use, telling a judge that he misled the American people. Now, for his lawyers, the big fight begins: minimizing the punishment.

Jackson is represented by Steptoe & Johnson LLP litigation partners Reid Weingarten and Brian Heberlig, who leads the firm's white-collar criminal defense practice. In a crowded courtroom today in downtown Washington, Jackson, who occasionally dabbed at his eyes, accepted responsibility for a scheme that prosecutors said involved the misuse of $750,000 in campaign funds. "I did those things," he said.

Jackson, an Illinois Democrat who spent 17 years in Congress before resigning last year, faces a sentencing guideline range of between 46 and 57 months in prison. The trial judge, Richard Wilkins, a former Venable partner who was appointed to the bench by President Barack Obama, isn't bound by that range. Weingarten told Wilkins today the defense plans a "very substantial presentation to the court." Sentencing is scheduled for June 28.

"There is reason for optimism," Weingarten told a throng of reporters outside the courthouse after the plea hearing. "We're hopeful, and we expect, that there will be fairness in the process. A person who has contributed so much to his community, and so much to so many people, will and should get credit for it."

D.C. Attorney General Defends Payments to Outside Counsel

The District of Columbia attorney general's office today defended the city's compensation of private lawyers in a wrongful arrest case against the city, responding to a request for an investigation lodged earlier this week by the local police union.

In a letter (PDF) sent today to the D.C. Office of the Inspector General, Attorney General Irvin Nathan said that fees paid in the past were appropriate and accused Fraternal Order of Police Chairman Kristopher Baumann of making "incorrect or misleading statements" in his January 28 letter to the inspector general's office.

Nathan wrote that contrary to Baumann's claims that the proceedings had involved potentially criminal issues in recent years – a federal magistrate judge is investigating allegations of evidence mishandling – the case has always been a civil matter. As a result, the fees paid to private lawyers for police officials involved were proper, Nathan said.

Alston & Bird Registers as Adviser to Russian Federation

Alston & Bird notified the U.S. Department of Justice this week that the firm was hired to act as an adviser to the Russian Federation on "issues which affect the bilateral US-Russian Relationship."

Alston will be gathering information on a broad range of U.S. foreign policy matters, including trade, energy and military issues that might affect relations between the two countries, according to registration paperwork (PDF) the firm filed on Monday with the Justice Department.

The firm was hired by public relations company Ketchum Inc. Alston served as an adviser to the Russian government through a similar arrangement with Ketchum in 2009, according to Justice Department records.

D.C. Police Union Questions Payments to Attorneys in Mass Arrest Case

As a D.C. federal magistrate judge continues his investigation into the alleged mishandling of evidence in a decade-old mass arrest case, the head of Washington's police union is raising questions about the city's reimbursement of legal fees for city officials involved.

In a letter (PDF) sent yesterday to the D.C. Office of the Inspector General, Fraternal Order of Police Chairman Kristopher Baumann asked for an investigation into public compensation of private lawyers for defendants and other officials, now that U.S. District Magistrate Judge John Facciola's investigation has raised the specter of possible criminal activity.

Under the D.C. Code, the city can pay "reasonable" attorney fees for Metropolitan Police Department members facing a civil lawsuit for wrongful arrest. In an interview today, Baumann said that while the underlying matter is a civil case, Facciola's investigation is veering into issues such as whether police and other city officials committed perjury or submitted false information to the court.

D.C. Lawyer Pleads Guilty to Stealing $109K

Updated at 12:52 p.m.

A now-disbarred Washington lawyer and former D.C. Council candidate, Deairich Hunter, pleaded guilty this week in federal court to stealing more than $109,000 in funds intended for his clients.

At a plea hearing January 23 before U.S. District Judge Beryl Howell, Hunter, a former solo practitioner, admitted to keeping thousands of dollars in settlements for clients in disability and personal injury cases. In at least one instance cited in court filings, he stole funds that he was supposed to use to pay the medical bills of a client injured in a car accident.

Hunter is scheduled for sentencing before Howell on April 26. He was released on personal recognizance until the hearing, and was ordered to stay in the Washington area and surrender his passport.

D.C. Appeals Court Hears Dispute Between K&L Gates and Ex-Partner

The District of Columbia Court of Appeals heard arguments this morning in a dispute between K&L Gates and a former longtime partner at the firm, Robert Ted Parker, who sued the firm for wrongful termination.

The appeals court is weighing whether to uphold a ruling ordering the parties to arbitration. Parker filed his initial lawsuit in a California state court, but the firm filed a motion to compel arbitration in Washington, citing provisions in its partnership agreement.

Arguments today before an appellate panel came down to two issues – first, whether the partnership agreement was clear about which state's law to apply in determining whether a dispute should go to arbitration, and second, whether the D.C. court had jurisdiction to hear the appeal at all.

The Morning Wrap

Withdrawn: U.N. Ambassador Susan Rice yesterday withdrew her name from consideration for Secretary of State amid fierce opposition from Republican leaders on Capitol Hill, The Wall Street Journal reports. Rice penned this piece in The Washington Post about her decision to step aside. From The New York Times today: "Rice's Blunt Style Endeared Her to President, but Not All."

Close to the finish line: The New York Times reports UBS is in final negotiation with American, British and Swiss authorities to resolve interest rate manipulation allegations. The bank's Japanese unit is expected to plead guilty to a criminal charge. The Wall Street Journal has coverage here.

Unprotected: Prosecutors were allowed to use email communication between a former Virginia politician and his wife in a bribery case, the U.S. Court of Appeals for the Fourth Circuit ruled. The appeals court said Phillip Hamilton took no steps to keep the communication confidential, The National Law Journal reports.

Higher salaries, lower bonuses: From Corporate Counsel today: "General counsel at major corporations saw their base salaries climb, even as cash bonus awards fell in the last year, according to the latest compensation benchmarking figures from the Association of Corporate Counsel."

D.C. Firm Says Whistleblower's Malpractice Allegations 'Vindictive and Baseless'

The bad blood deepened last week between Washington-based Schertler & Onorato and its former client, UBS AG whistleblower Bradley Birkenfeld, with the firm filing a 47-page motion to dismiss calling Birkenfeld's legal malpractice allegations "vindictive and baseless."

The firm represented Birkenfeld, a former UBS banker, from mid-2006 through the summer of 2008. Birkenfeld cooperated with a federal investigation into allegations that UBS helped clients evade taxes and was given a $104 million whistleblower award from the U.S. Internal Revenue Service in August.

Birkenfeld sued Schertler for legal malpractice in District of Columbia Superior Court in late October, his third lawsuit against the firm since August 2011, claiming that they mishandled the whistleblower process and cost him a potentially larger award. The firm has fought back, saying that the claims are meritless and part of Birkenfeld's attempt to avoid paying fees owed to the firm.

Jones Day Sues Former Client Vizio for $6 Million in Fees

Updated 12/10/12 at 10:55 a.m.

Jones Day is suing former client Vizio Inc. in Washington federal court, claiming that the consumer electronics corporation owes the firm more than $6 million in attorney fees.

According to a complaint (PDF) filed yesterday in U.S. District Court for the District of Columbia, Jones Day did intellectual property work for Vizio from May 2008 to October 2012. The firm alleged that Vizio, purportedly unhappy with how a patent prosecution had played out, refused to pay invoices from June through November of this year.

Jones Day is seeking $6,725,981 in fees, plus interest. According to the complaint, about $1.7 million of those fees were for work unrelated to the patent matters.