Keeping Up With Keeping Up
September 01, 2005
Compliance -- dotting all the i's and crossing all the t's in a regulated business -- has always been difficult. The slightest error can lead to fines, a business shutdown or even jail time for executives.
Filtering Through Regulatory Compliance
September 01, 2005
The advantages of doing business in a digital economy -- paperless transactions, instant communication, effortless administration and reaching out across borders to far-away locations to collaborate with partners in a virtual community -- are precisely the risks of doing business in a digital economy.
Good Faith Lender Has No Fiduciary Duty to Other Creditors Or Its Borrower
August 31, 2005
The Second Circuit recently handed down a key creditors' rights decision <i>Sharp Int'l Corp. v. State Street Bank & Trust Co.</i> (<i>In re Sharp Int'l Corp. & Sharp Sales Corp.</i>), 2005 U.S. App. LEXIS 5241(2d Cir. Apr. 1, 2005). The court affirmed the lower courts' finding that a secured lender was <i>not</i> liable for aiding and abetting management's breach of fiduciary duty, and <i>not</i> liable for receiving a $12.25 million loan repayment from a closely held borrower it correctly suspected of engaging in massive fraud. The decision limits the scope of a lender's duties to its borrower and other creditors. Absent the lender's participation in its borrower's fraud, the lender should have no liability on a fraudulent transfer theory or on any other basis at least in New York, where <i>Sharp</i> arose.
The Progressive Lawyer
August 31, 2005
In March of this year, in Part One of this article, we discussed the importance of the initial pendente lite application in introducing the parties to the judge and setting the tone for the balance of the case. The mandate that we provide judges with sound, hard evidence at the <i>pendente lite</i> phase -- in order to enable the courts to deal fairly with both sides pending the submission of final proofs -- was heavily stressed.
Virtual Worlds And Digital Rights
August 30, 2005
Today's virtual worlds -- sometimes also called digital or synthetic -- evolved from text-based role-playing games such as Dungeons & Dragons. The predecessors of the "Massively Multiplayer Online Role-playing Games" (MMPORGs) of today began for the most part in the late 70s and early 80s when various individuals first engaged in the role-playing game behavior online. The online text-based commands and prompts allowed the players to act out various fantasies without the close proximity requirement that is inherent in the earlier written and oral gaming forms. As the online technology grew, so did the nature and complexity of the interactive games, including the addition of videogame graphics to the text-based game elements. In the '90s, the current state of online MMPORGs began offering a real-time socially interactive component that was not available on traditional offline console gaming. While the physical space and landscape is simulated in the virtual environment of today, the social interactions are real since virtual characters, or "avatars," in the digital world are controlled and operated by a real person and not just by strict computer code. While these games are currently used mostly as an avenue for play and social interaction, if the proliferation of online entrepreneurship continues, the games will likely be more focused on commerce, research and work or work-related activities.
Physician and Medical Device Defendants
August 30, 2005
Politics make strange bedfellows," is an election-year maxim. Sometimes, bitter rivals in primaries become allies after a convention, or forge alliances to get favored bills and "pet" proposals approved. But while politics may make strange bedfellows, it has nothing on personal injury litigation. Perhaps nowhere is this more true than in the realm of medical liability lawsuits involving doctors and medical device companies as co-defendants. The intersection of medical malpractice and product liability litigation often pulls together two distinct but interrelated entities, which can both end up as defendants in complaints incorporating allegations of medical malpractice and product defect.
Using Daubert to Defeat Causation in the Delayed Diagnosis Claim
August 30, 2005
The old maxim, "the earlier the treatment, the better the outcome" has been a longtime staple in plaintiffs' collection of so-called "expert medical opinions." Let's face it -- the notion that earlier treatment is preferable, while imprecise, seems like a logical conclusion for most of us. However, the Eleventh Circuit's recent decision in <i>McDowell v. Brown</i>, 392 F.3d 1283 (11th Cir. 2004), establishes that such general medical principles, which are typically based on no more than the expert physician's common-sense and anecdotal experience, are far too speculative to overcome an evidentiary challenge pursuant to <i>Daubert v. Merrell Dow Pharmeceuticals, Inc.</i>, 509 U.S. 579 (1993) and therefore fail to establish causation in a medical negligence case. Part One of a Two-Part Article.
Corporate Compliance And How It Relates To Litigation Data-Management
August 30, 2005
If we counted a penny for every general counsel, chief information officer or information-technology director who laments the passing of the regulatory-agency laissez faire policies of old, we'd give Donald Trump a run for his money. The simple truth is, there is no going back -- Sarbanes-Oxley, Gramm-Leach-Bliley, the Safe Harbor Protection Act and European Data Protection Directive -- they're all here to stay.
