Lessons from the First Vioxx Verdict
What do you get when you cross Court TV with the Food Channel? One answer: a recipe for a multi-million dollar jury verdict! Drug giant Merck will not see such blended TV programming, but it may have seen stars after getting hit with a $253 million jury award on Aug. 19, 2005. The first product liability trial against its Cox-2 inhibitor drug Vioxx in Angleton, TX, in August, 2005 produced a quarter-billion dollar award, $229 million of which was for punitive damages. Merck plans a vigorous appeal on multiple grounds. (Reportedly, grounds for appeal include: 1) letting in testimony from unqualified experts; 2) letting in testimony not based on reliable scientific evidence; 3) allowing irrelevant but prejudicial evidence in against Merck; and 4) letting in an undisclosed "surprise" witness against Merck.) Even pro-plaintiff observers concede that the award will likely drop to "only" $26 million due to recent Texas tort reform caps on punitive damages. (Merck fared better in its second and third Vioxx trials, which ended with a defense verdict and hung jury, respectively. Three Vioxx cases down -- only about 5998 to go!)
Planning For The Inevitable
People who negotiate tech deals and draft contracts for legal or other services ' such as partnerships and the instruments that monitor them and give them teeth ' must remember one constant in today's ever-changing world: The technology we depend on every day often does not work. <br>As a result, the traditional wisdom, "failing to plan is planning to fail," has been transformed into a rule of thumb for the tech sector: "plan for failure." Firms that do not explicitly anticipate systems failure run the risk of being unprepared for a catastrophe
Compensation Decision Aids: How Better Guidance Evolved
When I began consulting 18 years ago, compensation advisory services focused primarily on benchmarking. We would look at market data, find comparables, refine study data to adjust for timing differences, and determine appropriate compensation ranges. This latter focus was partly due to the nationwide run-up in associate starting salaries and law firms' attempts to deal with those market forces and the system-wide compression they created.
Reducing Client Costs For Investigative Services
In a perfect world, firms could employ private investigators who are as skilled as pseudo-bumbling television police detective Columbo, Dallas lawyer William Brewer III says. <br>That's rarely the case when Brewer contracts with private investigation companies to help with litigation at 35-lawyer Bickel & Brewer, so the firm launched its own investigative unit in January. It's staffed by three former agents and a former training instructor with the Federal Bureau of Investigation.
Avoiding Boilerplate Traps in Commercial Leases
Boilerplate in a commercial lease ' notably in the Miscellaneous section ' is not nearly as uniform and standard as one might think. Boilerplate provisions therefore merit careful review by each party to the lease, and sometimes vigorous negotiation. Law firms are often tenants but sometimes also landlords; the authors provide advice for protecting both interests.
An Uncivil Code in the EU?
In the wake of the tidal wave of franchise regulation that has hit Europe, in France, Spain, Italy, Belgium, Lithuania and Estonia, there is another tidal swell rapidly approaching. Over the last 3 years, a privately financed group of European academics, working under the title, "The Study Group on a European Civil Code," have been developing a model European Civil Code. One of the Study Group's subgroups (the "Amsterdam Team") has drafted a chapter on Commercial Agency, Franchise and Distribution Contracts, the latest draft of which is dated January 2005.
Law Firm Bankruptcies
With globalization and the increasing number of mergers; with the opening of more branch offices by the national firms; and with record number of lawyers leaving law firms, competition in the legal profession has become more intense and cutthroat. As a result, are there more law firm bankruptcies on the horizon? If so, what are the ramifications? What procedures must be followed? The goal of this article is to provide an overview of the basic issues likely to surface in a law firm bankruptcy case.
When Technology Doesn't Work
The traditional wisdom, "failing to plan is planning to fail," has been transformed into a rule of thumb for the tech sector: "plan for failure." Firms that do not explicitly anticipate systems failure run the risk of being unprepared for a catastrophe, just as Floridians must plan for hurricanes in August ' and New Orleans must now be prepared for potential dike breaches.
Associate Break-Even: A Matter of Perspective
In my role as a consultant, I work with clients who wish to make critical business decisions but sometimes suspect the reliability of their internally generated numbers. Last month, Ed Wesemann wrote about just such a situation, when he referred to the common belief that associates do not make money in their first 3 years. Intuitively, this does not make sense to many law firm managers, yet their reports often support this contention.
