Cozen O’Connor Attorney Lynnette Espy-Williams Elected Co-Chair of Firm’s Diversity Committee

Press Release - Labor & Employment

Lynette will join current committee co-chair Kimya Johnson to spearhead the firm’s efforts to promote diversity and inclusion.

Potential Liability Arising from the Absence of Fire Sprinklers in Commercial and Residential Structures [Subrogation and Recovery Alert]

Publication - Subrogation & Recovery - Insurance

It may be surprising to learn that currently there is no federal law requiring the installation of fire sprinklers in residential structures. Despite most states and municipalities requiring fire sprinkler systems in commercial structures, few states or municipalities have tried to implement this requirement in residential structures. In 2011, U.S. fire departments responded to 370,000 home structure fires causing $6.9 billion in direct damage. According to the 2009 American Housing Survey, 4.6 percent of occupied homes (including multi-unit) had sprinklers, up from 3.9 percent in 2007.

The Material Impact of the Amgen Decision on D&O Insurance [Professional Liability Alert]

Publication - Insurance Coverage, Professional Liability Insurance Coverage - Insurance

In Amgen, Inc. v. Connecticut Retirement Plans and Trust Funds, No. 11-1085 (Slip Op. Feb. 27, 2013), the U.S. Supreme Court, in a 6-3 majority opinion (Ginsburg, J.), affirmed the U.S. Court of Appeals for the 9th Circuit’s ruling that a securities class action plaintiff need not prove materiality of alleged misrepresentations or misleading omissions as a prerequisite to class certification under Fed. R. Civ. P. 23. Justices Kennedy, Scalia, and Thomas dissented. Justice Alito concurred with the majority but added a separate and important note (discussed below). The Court’s decision lowers the bar for investors seeking to obtain class certification, which has significant implications for D&O insurers, companies, their Directors and Officers (Ds and Os), and securities fraud plaintiffs alike. The Court’s ruling in Amgen also settles a split among the 2nd, 3rd, 7th, and 9th Circuits. Although the ruling is clearly favorable to securities fraud class action plaintiffs, the four concurring and dissenting justices appear willing to entertain arguments over the continued validity of the fraud-on-the-market presumption, which could drastically alter the landscape for securities class actions.

Texas Supreme Court Revises New Rules for Expedited Trials and Dismissal of Baseless Claims Following End of Public Comment Period [Global Insurance Alert]

Publication - Insurance Coverage - Insurance

Following considerable public comment, the Texas Supreme Court revised and issued final approval of new rules providing for expedited trials and dismissal of baseless claims. Despite pleas from various factions, however, the new rules maintain their mandatory nature. The revisions do, however, contain material changes to the Alternative Dispute Resolution provision of new Rule 169 of the Texas Rules of Civil Procedure.

Highlights of the Omnibus HIPAA/HITECH Final Rule [Cozen O'Connor Whitepaper]

Publication - Health Care & Life Sciences, Technology, Privacy & Data Security - Health Care & Life Sciences

On January 25, 2013, the Office of Civil Rights (OCR) of the Department of Health & Human Services (HHS) published the long-awaited omnibus final regulation governing health data privacy, security and enforcement (Omnibus Rule). The Omnibus Rule is a group of regulations that finalizes four sets of proposed or interim final rules, including changes to the Health Insurance Portability and Accountability Act (HIPAA) Privacy and Security Rules mandated by the Health Information Technology for Economic and Clinical Health (HITECH) Act and proposed in 2010; changes to the interim final breach notification rule; modifications to the interim final enforcement rule; and implementation of changes to the Genetic Information Nondiscrimination Act of 2008 (GINA). The Omnibus Rule goes into effect on March 26, 2013, and compliance is required by September 23, 2013. As expected, the Omnibus Rule did not finalize the May 31, 2011 proposed regulation regarding accounting for disclosures.

Cozen O’Connor’s Health Care and Public Strategies Groups Featured in Legal Bisnow

News - Government Relations - Cozen O'Connor Public Strategies, Health Care & Life Sciences

Attorneys Mark Alderman, Mark Gallant, Colin Roskey and Howard Schweitzer are highlighted in this article on Cozen O'Connor's growth in the Health Law and Public Strategies Groups.

Pennsylvania Makes Its Mark on National Chinese Drywall Coverage Dispute with 'One Occurrence' Decision [Global Insurance Alert]

Publication - Insurance Coverage - Insurance

On February 15, 2013 a Pennsylvania federal district court held that the shipment of defective drywall from China to the United States constituted one “occurrence” for purposes of insurance coverage, and the occurrence took place when the damage caused by the drywall manifested itself in the residences or buildings of the underlying plaintiffs. With this ruling, Pennsylvania joins Virginia as one of the few states to opine regarding the number of occurrences in the Chinese drywall context.

IP: Protecting your brands against online counterfeit sellers [Inside Counsel]

Publication - Intellectual Property, Trademark & Copyright

Brand owners should use a multi-pronged strategy to combat knock-off goods. Although counterfeiting is often perceived as a victimless crime, it has significant economic and reputational costs for brand owners. In 2012, U.S. Customs and Border Protection seized counterfeit goods worth $1.26 billion and shut down 697 websites involved in trafficking counterfeit goods.

OFCCP Rescinds Its 2006 Compensation Standards in Favor of More Flexible Approach to Pay Discrimination Compliance Evaluations [Labor and Employment Alert]

Publication - Employment Litigation, Labor & Employment

Effective February 28, 2013, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) rescinded its much criticized 2006 Compensation Standards and Voluntary Guidelines (Compensation Standards) utilized in pay discrimination compliance evaluations of federal contractors. The Compensation Standards essentially had applied one analytic approach to pay discrimination, regardless of industry, job type or other data specific to the federal contractor’s pay practices. Not surprisingly, the OFCCP claims that the narrowly defined "cookie cutter" compliance evaluation procedures imposed by the Compensation Standards impeded the OFCCP’s investigation efforts.

FERC Approval of Columbia Gas Transmission Settlement Puts Focus on Recovery of and Return on Pipeline Safety Expenditures [Utility, Environmental & Energy Alert]

Publication - Business

On January 24, the Federal Energy Regulatory Commission (FERC) approved a significant settlement addressing the base rate treatment for planned actions to overhaul the aging Columbia Gas Transmission, LLC (Columbia) pipeline system. While by its own terms the settlement is not considered precedential, FERC’s approval of the settlement is noteworthy for operators of older natural gas transmission and distribution pipelines and hazardous liquids pipelines systems. These pipeline systems may contain bare steel or cast iron, may have inadequate cathodic protection, may be subject to settling or other environmental conditions that have placed significant stress on pipe, may not be “piggable,” or otherwise may be at risk of reduced operating pressure in the face of potentially heightened requirements for establishing maximum allowable operating pressure. As increased focus on pipeline integrity management drives capital expenditures and operating and maintenance priorities, these transmission and distribution pipeline operators (representing a majority of pipeline mileage in the United States) must engage in thoughtful planning for pipeline facility repairs, upgrades and replacements and identify cost recovery mechanisms that work best for their specific circumstances.

Cologne Compendium on Air Law in Europe [Carl Heymanns Verlag]

Publication - Aviation, Transportation & Trade - Aviation

David Heffernan of the Transportation & Logistics Department, co-edited the Cologne Compendium on Air Law in Europe. The book is the collective work of 80 collaborators who are active in private legal practice, universities and government administrations as well as in the various sectors of the aviation industry such as airlines and airports.

Camille Miller Named a Client Choice 2013 Winner

Press Release - Intellectual Property

Miller, co-chair of Cozen O’Connor’s Intellectual Property Practice Group and the Intellectual Property Litigation Practice Group, was named a Client Choice 2013 winner on February 27, 2013 at a gala dinner held in London.

Mexico International Law Digest [International Digest]

Publication - Subrogation & Recovery

Department of Labor Issues Final Rule Amending FMLA Regulations in Accordance with 2010 Military Leave Amendments [Labor & Employment Alert]

Publication - Labor & Employment

On February 6, 2013, the Department of Labor (DOL), Wage and Hour Division, published a Final Rule amending the regulations for the Family and Medical Leave Act of 1993 (FMLA). The 2013 Final Rule sets forth new regulations implementing amendments made to the FMLA by the National Defense Authorization Act for Fiscal Year 2010 (NDAA FY 2010).

U.S. Appellate Court Expands Reach of Anti-Bribery Statute [The Legal Intelligencer]

Publication - Appellate

Last month, the U.S. Court of Appeals for the D.C. Circuit in United States v. Ring, upheld a conviction for bribery under the public sector honest-services fraud statute, expanding the definitions of

Cozen O’Connor Announces Vice-Chairs of the Global Insurance Group Members Deborah Minkoff and Eric Freed Appointed New Leaders

Press Release - Insurance Coverage - Insurance

Minkoff will serve as vice chair of administration for the group, which comprises more than 100 attorneys across all of the firm’s 21 offices. Freed will serve as vice chair of strategic planning and trial team management for the group.

Bankruptcy Court for District of Delaware Approves Use of Post-Petition Lock-Up Agreements and Permits Release of Non-debtor Parties by Non-voting Creditors [Bankruptcy, Insolvency and Restructuring Alert]

Publication - Bankruptcy, Insolvency & Restructuring, Business

The Delaware Bankruptcy Court recently issued an opinion in the Indianapolis Downs Chapter 11 case that is worth reading in its entirety for its impact on numerous plan confirmation issues. This article will address the court's endorsement of post-petition lock-up agreements and, secondarily, the court's approval of a plan's third-party release provision that provides for the deemed consent of non-voting creditors.

Click On The Dotted Line [Digital Photo Pro]

Publication

Samuel Lewis discusses the legal evolution of digital signatures and the implications for contracts.

Utilities Sector To Be a Focus of Executive Order Directing Development of Critical Infrastructure Cybersecurity Framework [Energy, Environmental and Utilities Alert]

Publication - Business, Technology, Privacy & Data Security

Little more than a week after reports of cyber attacks targeted at the Department of Energy, The New York Times and The Wall Street Journal, President Obama declared in his State of the Union address that these forms of attacks on the nation’s critical infrastructure are rapidly growing and present “real threats to our security and our economy.”

IP: 5 practice tips from the recent Rambus rulings [Inside Counsel]

Publication - Intellectual Property, Patents

Four recent decisions shine some light on document retention policies. Case law has not been particularly precise as to when inside counsel should advise clients to begin the tedious—and costly—task of preserving documents for patent litigation. However, the twin 2011 rulings by the Federal Circuit (Micron II and Hynix II) followed by their respective 2013 remand decisions provide a solid primer. Together, these four decisions highlight a proper path for document preservation and the fatal consequences of failing to comply.Inside counsel should take note because document retention (and its converse cousin, spoliation) can negatively impact the enforceability of a company’s intellectual property while establishing a core defense for the accused infringers. This article examines the recent Rambus rulings, particularly the sanctions meted out for document retention violations and spoliation.