Microsoft-Sign

Talk about leading by example.

Not only did Microsoft Corp. on Tuesday became the first Fortune 100 company to endorse legislation that would ban forced arbitration for sexual harassment cases, it also did away with the requirement for its own employees.

Microsoft believes “that people's voices need to be heard if their problems are to be addressed,” wrote President and Chief Legal Officer Brad Smith in the company blog. “Because the silencing of voices has helped perpetuate sexual harassment, the country should guarantee that people can go to court to ensure these concerns can always be heard.”

About 60 million Americans work under employment contracts that require sexual harassment claims to be arbitrated, he said.

While Microsoft has never enforced an arbitration provision relating to sexual harassment, the company does require it on paper “for a small segment of our employee population,” Smith wrote.

Not anymore.

“We concluded that if we were to advocate for legislation ending arbitration requirements for sexual harassment, we should not have a contractual requirement for our own employees that would obligate them to arbitrate sexual harassment claims,” Smith wrote. “And we should act immediately and not wait for a new law to be passed.”

For more, see Microsoft, Nodding to '#MeToo,' Says It Won't Keep Harassment Victims Out of Court

 

And the Winner Is…

In case you missed it, Jones Day took home the top honors for Litigation Department of the Year.

Why Jones Day?

Am Law editor-in-chief Gina Passarella Cipriani writes, “In the contest period, August 2015 through July 2017, Jones Day won in forums that ranged from the U.S. Supreme Court to the trenches of state court, recovered billions for companies it represented, and turned back billions more in claims against other clients.”

Read the full story here.

Congrats also to the runners up: Hogan Lovells; Wilmer Cutler Pickering Hale and Dorr; Gibson, Dunn & Crutcher; Sullivan & Cromwell; Skadden, Arps, Slate, Meagher & Flom; and Mayer Brown.

 

A BigLaw Website That Doesn't Play It Safe

Law firm websites tend to be staid, even boring—and often, that's what corporate clients want from their sage counselors.

But what if you're an aggressive, first-generation litigation shop? Why not take a few chances? After all, litigators are supposed to excel at using information to inform, persuade and tell a story.

Exhibit A: Kasowitz Benson Torres' newly-revamped website.

Entirely black and white, it's got sharp graphics reminiscent of a Nike ad and to-the-point copy. But what's most unusual is the prominent use of video.

The home page includes founder Marc Kasowitz giving a 2-minute overview of the firm. It's not exactly modest (“We're really smart and really creative and not afraid to go into court…It's hard to think of an area where we haven't had great success.”) but he's an effective pitchman.

Another video is titled “People,” and features a series of firm litigators. They come across as slightly terrifying, in a 'We-will-crush-you-in-court-and-enjoy-it' kind of way.

Each video opens with a brief rhythmic theme reminiscent of fans stamping and clapping in unison at half-time. In fact, the whole site has an elite sports-team vibe.

In an email, Kasowitz said, “Our site conveys the fundamental ethos instilled in all our lawyers:  we are creative, aggressive, and relentless.  It reflects our significant youth, experience, success, depth, and diversity.  And it shows we know how to make a case, including when it is our own.”

 

Gibson Dunn Gets Law Firm off the Hook in Derivative Suit

Credit Gibson, Dunn & Crutcher for advancing with what proved to be the winning argument in beating back a derivative suit against its law firm client by members of New York City's largest correctional officers' union.

The Correction Officers' Benevolent Association represents more than 9,000 officers, who are entitled to receive an annuity benefit from a fund administered by the union's executive board when they retire.

The union president allegedly got kickbacks from Platinum Management in exchange for investing the retirement fund money with the hedge fund's Platinum Partners Value Arbitrage Fund. He also allegedly gave board members lavish gifts so they wouldn't question his decisions.

In June of 2016, the head of the union and the president of Platinum were arrested by the federal government and charged with honest services fraud and wire fraud. The union's investment in Platinum's arbitrage fund is now worthless.

Represented by Newman Ferrara and Seelig Law Offices, a group of union members sued the executive board and the union's law firm, Koehler & Isaacs.

Gibson Dunn partner Reed Brodsky and associates Shannon E. Mader and Jonathan N. Soleiman led the effort on behalf of Koehler & Isaacs, which faced claims that it breached its fiduciary duties in conducting diligence on the investments.

The Gibson Dunn team argued that the plaintiffs lacked standing to sue on the union's behalf. Under Federal Rule of Civil Procedure 23.1, the plaintiffs had to make a pre-suit demand upon the board of directors or else sufficiently explain why it was futile to do so. That didn't happen here, the defendants argued.

U.S. District Judge J. Paul Oetken of the Southern District of New York was persuaded. On Dec. 15, he dismissed the suit against all defendants, writing, “Because plaintiffs have not adequately pleaded demand futility, their failure to make a pre-suit demand on the board leaves them without standing to bring this suit under Rule 23.1.”

Read Oetken's full order here.

Lateral Watch

Latham & Watkins has nabbed two Kirkland & Ellis litigation partners. Andrew Clubok, who joins Latham in Washington, D.C., will serve as co-chairman of the securities litigation and professional liability practice. Elizabeth Deeley will be based in Latham's San Francisco office as a member of the complex litigation group.

In a press release announcing the new hires, Latham stressed their “substantial trial experience.” The firm also provided a list of litigators who have joined the firm in the past year.

Among them: Eric Leon, Nicholas McQuaid, and Joseph Serino in New York; Steven Croley and Kevin Wheeler in Washington, D.C.; Leslie R. Caldwell and Michael Rubin in San Francisco; Terra Reynolds in Chicago; Martin Davies and Ian Felstead in London; and Joshua Hamilton and Thomas Nolan in Los Angeles.

For more, see Latham Picks Up Ex-Kirkland Litigators on Both Coasts

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Newly Amended Law Clerk Handbook Affirms Harassment Complaints Are Permitted

“Clerks are encouraged to bring such matters to the attention of an appropriate judge or other official.”