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	<title>Philadelphia Business Litigation Blog</title>
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		<copyright>2006-2007 </copyright>
		<managingEditor>mark@markjakubik.com (Philadelphia Business Litigation Blog)</managingEditor>
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		<category>posts</category>
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			<itunes:name>Philadelphia Business Litigation Blog</itunes:name>
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		<item>
		<title>Supreme Court to Hear Skilling Appeal</title>
		<link>http://markjakubik.com/2009/10/13/supreme-court-to-hear-skilling-appeal/</link>
		<comments>http://markjakubik.com/2009/10/13/supreme-court-to-hear-skilling-appeal/#comments</comments>
		<pubDate>Tue, 13 Oct 2009 14:54:09 +0000</pubDate>
		<dc:creator>Mark</dc:creator>
				<category><![CDATA[Appellate issues]]></category>
		<category><![CDATA[Supreme Court]]></category>

		<guid isPermaLink="false">http://markjakubik.com/?p=316</guid>
		<description><![CDATA[The Wall Street Journal reports that the US Supreme Court has agreed to hear former Enron CEO Jeff Skilling&#8217;s appeal. Now we&#8217;ll see if there is any prospect that reason and fairness will prevail in the Enron witch hunt.
]]></description>
			<content:encoded><![CDATA[<p>The Wall Street Journal <a href="http://online.wsj.com/article/SB125544222770882429.html?mod=djemalertNEWS">reports</a> that the US Supreme Court has agreed to hear former Enron CEO Jeff Skilling&#8217;s appeal. Now we&#8217;ll see if there is any prospect that reason and fairness will prevail in the Enron witch hunt.</p>
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		<title>Congratulations, Vice Chancellor Laster</title>
		<link>http://markjakubik.com/2009/10/09/congratulations-vice-chancellor-laster/</link>
		<comments>http://markjakubik.com/2009/10/09/congratulations-vice-chancellor-laster/#comments</comments>
		<pubDate>Sat, 10 Oct 2009 02:14:18 +0000</pubDate>
		<dc:creator>Mark</dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[Corporate law]]></category>
		<category><![CDATA[Court of Chancery]]></category>
		<category><![CDATA[Delaware]]></category>
		<category><![CDATA[Judges]]></category>

		<guid isPermaLink="false">http://markjakubik.com/?p=311</guid>
		<description><![CDATA[I&#8217;d like to take this opportunity to congratulate my good friend, Travis Laster, on becoming the newest member of the Delaware Court of Chancery. Travis was sworn in today, and replaces retired Vice Chancellor Lamb on the nation&#8217;s premier business law court. Travis is an exceptionally talented lawyer, and a good man. I have every [...]]]></description>
			<content:encoded><![CDATA[<p>I&#8217;d like to take this opportunity to congratulate my good friend, Travis Laster, on becoming the newest member of the Delaware Court of Chancery. Travis was sworn in today, and replaces retired Vice Chancellor Lamb on the nation&#8217;s premier business law court. Travis is an exceptionally talented lawyer, and a good man. I have every confidence that he will be an excellent judge. Congratulations, Vice Chancellor, and good luck!</p>
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		<title>Episcopal Church Takes a Kick in the Teeth in South Carolina Property Case</title>
		<link>http://markjakubik.com/2009/09/23/episcopal-church-takes-a-kick-in-the-teeth-in-south-carolina-property-case/</link>
		<comments>http://markjakubik.com/2009/09/23/episcopal-church-takes-a-kick-in-the-teeth-in-south-carolina-property-case/#comments</comments>
		<pubDate>Wed, 23 Sep 2009 23:27:14 +0000</pubDate>
		<dc:creator>Mark</dc:creator>
				<category><![CDATA[Appellate issues]]></category>
		<category><![CDATA[Church property]]></category>

		<guid isPermaLink="false">http://markjakubik.com/?p=301</guid>
		<description><![CDATA[The South Carolina Supreme Court gave the national Episcopal Church (&#8220;TEC&#8217;) a good kick in the teeth last week when it ruled that one of the former parishes in the Episcopal Diocese of South Carolina, All Saints Church on Pawley&#8217;s Island, is the rightful owner of its church buildings and other real property. All Saints, which [...]]]></description>
			<content:encoded><![CDATA[<p>The South Carolina Supreme Court gave the national Episcopal Church (&#8220;TEC&#8217;) a good kick in the teeth last week when it <a href="http://markjakubik.com/wp-content/uploads/2009/09/AllSaints1.pdf">ruled</a> that one of the former parishes in the Episcopal Diocese of South Carolina, All Saints Church on Pawley&#8217;s Island, is the rightful owner of its church buildings and other real property. All Saints, which left TEC and the Diocese of South Carolina in 2000, is one of dozens of parish churches that has seceded from TEC over the years. TEC, and its constiuent dioceses, claims that it is the rightful owener of the property of such seceding parishes as a consequence of a provision in its canons that purports to establish a trust in favor of TEC over such property.</p>
<p>Numerous parish churches have challenged the validity of the trust provision without success. The South Carolina Supreme Court, however, categorically rejected the trust theory, holding that a party cannot unilaterally declare a trust over property to which it did not hold legal title. As such the TEC property canon, in South Carolina at least, is unenforceable as a matter of law. And so All Saints &#8211; and any other parish in the Diocese of South Carolina that wants to leave &#8211; is free.</p>
<p>There has been much buzz on the internet &#8211; at least in some of the arcane quarters that I frequent &#8211; as to what the impact of this decision will be. Specifically, folks are wondering whether the dozen or so parishes involved in litigation in other states now have a better chance of defeating TEC&#8217;s claims to their property, and whether the US Supreme Court is now more likely to hear the appeal of St. James Church in Newport Beach, California, which saw a trial court decision in its favor on the question of property ownership overturned by the California appellate courts. Happy as I am for the members of All Saints, I must regrettably conclude that the hope of its supporters that this court decision will have a wide and dramatic impact on future church property litigation are misplaced. I&#8217;ll explain why after the jump.<span id="more-301"></span>As to the first issue, whether this decision will have an impact on cases pending in other states, its important to bear in mind (and I am astonished at how many people commenting on this case have failed to grasp this fact) that this decision was issued by a South Carolina court, applying South Carolina law to a particular set of facts. No court outside of South Carolina is bound by this decision. Courts in other states may &#8211; or maynot &#8211; find the opinion persuasive. But those courts are bound to decide the cases before them based upon the law of their own states and the facts of the particular case before them. Much as I wish it were otherwise, the South Carolina decision does not necessarily suggest that there will be a sudden wave of decisions favorable to parish churches and unfavorable to TEC any more than TEC&#8217;s heretofore perfect record in church property litigation was a harbinger of a pro-TEC ruling in South Carolina.</p>
<p>As for whether the US Supreme Court is now more likely to take up the California case or some other case because there is a split of authority between South Carolina and all of the states in which the appellate courts have upheld TEC&#8217;s property canon. The answer to that question, in my view, is even clearer, and is also no. The Supreme Court has no interest in seeing that there is uniformity in state trust or property law. Indeed, there are many areas in which the law varies from state to state, and where the answer to a legal question will depend solely upon which state&#8217;s law applies. This is an unavoidable byproduct of our federalist system and, so long as there are no questions of federal law involved, of no interest to the US Supreme Court. The likelihood that the SCOTUS will take one of these cases is, in my view, extremely limited, unless some First Amendment issue is implicated, which to me seems unlikely.</p>
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		<title>Scrap the SEC</title>
		<link>http://markjakubik.com/2009/09/08/scrap-the-sec/</link>
		<comments>http://markjakubik.com/2009/09/08/scrap-the-sec/#comments</comments>
		<pubDate>Tue, 08 Sep 2009 23:44:47 +0000</pubDate>
		<dc:creator>Mark</dc:creator>
				<category><![CDATA[Securities law]]></category>
		<category><![CDATA[SEC]]></category>
		<category><![CDATA[Securities]]></category>

		<guid isPermaLink="false">http://markjakubik.com/?p=297</guid>
		<description><![CDATA[That&#8217;s basically the position that Professor Larry Ribstein takes. Market forces (including the media) are more effective in ferreting out and punishing wrongdoing than the folks who somehow missed the Bernie Madoff scam. As usual, I agree with Ribstein
]]></description>
			<content:encoded><![CDATA[<p>That&#8217;s basically the position that Professor Larry Ribstein <a href="http://busmovie.typepad.com/ideoblog/2009/09/is-the-sec-necessary.html#trackback">takes</a>. Market forces (including the media) are more effective in ferreting out and punishing wrongdoing than the folks who somehow missed the Bernie Madoff scam. As usual, I agree with Ribstein</p>
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		<title>Cuomo Tries to Steamroll Bank of America</title>
		<link>http://markjakubik.com/2009/09/08/cuomo-tries-to-steamroll-bank-of-america/</link>
		<comments>http://markjakubik.com/2009/09/08/cuomo-tries-to-steamroll-bank-of-america/#comments</comments>
		<pubDate>Tue, 08 Sep 2009 23:24:30 +0000</pubDate>
		<dc:creator>Mark</dc:creator>
				<category><![CDATA[Prosecutorial misconduct]]></category>
		<category><![CDATA[Attorney-client Privilege]]></category>
		<category><![CDATA[Bank of America]]></category>
		<category><![CDATA[Cuomo]]></category>

		<guid isPermaLink="false">http://markjakubik.com/?p=294</guid>
		<description><![CDATA[New York Attorney General apparently does not have much respect for the rule of law or the rights of the individuals and institutions that his office investigates. According to this post in the New York Times blog Dealbreaker, Cuomo recently wrote to Bank of America&#8217;s outside counsel regarding the status of his office&#8217;s investigation into [...]]]></description>
			<content:encoded><![CDATA[<p>New York Attorney General apparently does not have much respect for the rule of law or the rights of the individuals and institutions that his office investigates. According to this <a href="http://dealbook.blogs.nytimes.com/2009/09/08/cuomo-takes-aim-at-bank-of-americas-lawyers/?ref=business">post</a> in the New York Times blog Dealbreaker, Cuomo recently wrote to Bank of America&#8217;s outside counsel regarding the status of his office&#8217;s investigation into BofA&#8217;s acquisition of Merrill Lynch. Evidently, Cuomo is nonplussed by BofA&#8217;s invocation of the attorney-client privilege, and whined to BofA&#8217;s counsel that his office&#8217;s investigation was being impeded by the invocation. The implication, of course, is that BofA should waive the privilege so as to make life easier for Cuomo the Lesser. For now it looks as if Bofa is standing irm and not buckling to Prince Andrew&#8217;s pressure tactics. For the sake of the rights of ALL defendants and the rule of law, let&#8217;s hope that it continues to stand firm.</p>
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		<title>Kudos to Overlawyered</title>
		<link>http://markjakubik.com/2009/07/02/kudos-to-overlawyered/</link>
		<comments>http://markjakubik.com/2009/07/02/kudos-to-overlawyered/#comments</comments>
		<pubDate>Fri, 03 Jul 2009 02:38:29 +0000</pubDate>
		<dc:creator>Mark</dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[Blogging]]></category>
		<category><![CDATA[Blogs]]></category>

		<guid isPermaLink="false">http://markjakubik.com/?p=292</guid>
		<description><![CDATA[I&#8217;d like to extend my belated congratulaions to Walter Olson and the crew at Overlawyered on their 1oth anniversary which, I understand, was yesterday. Overlawtered is generally acknowledged as the first legal blog ( or blawg, as some misguided souls insist). After 10 years its still must reading, thanks in large part to Walter Olson, [...]]]></description>
			<content:encoded><![CDATA[<p>I&#8217;d like to extend my belated congratulaions to <a href="http://walterolson.com/">Walter Olson</a> and the crew at <a href="http://overlawyered.com/">Overlawyered</a> on their 1oth anniversary which, I understand, was yesterday. Overlawtered is generally acknowledged as the first legal blog ( or blawg, as some misguided souls insist). After 10 years its still must reading, thanks in large part to Walter Olson, its driving force. Congratulaions, friends!</p>
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		<title>Fumo Guilty</title>
		<link>http://markjakubik.com/2009/03/17/fumo-guilty/</link>
		<comments>http://markjakubik.com/2009/03/17/fumo-guilty/#comments</comments>
		<pubDate>Tue, 17 Mar 2009 14:01:25 +0000</pubDate>
		<dc:creator>Mark</dc:creator>
				<category><![CDATA[Philadelphia]]></category>
		<category><![CDATA[Political cases]]></category>
		<category><![CDATA[White collar defense]]></category>

		<guid isPermaLink="false">http://markjakubik.com/?p=285</guid>
		<description><![CDATA[Former Pennsylvania State Senator Vince Fumo was convicted yesterday on all 137 corruption related charges in which he had been indicted. The Philadelphia Inquirer has a lengthy story regarding the verdict that can be found here. I am not surpised that umo was convicted, although I am slightly surprised that he was convicted on ALL [...]]]></description>
			<content:encoded><![CDATA[<p>Former Pennsylvania State Senator Vince Fumo was convicted yesterday on all 137 corruption related charges in which he had been indicted. The Philadelphia Inquirer has a lengthy story regarding the verdict that can be found <a href="http://www.philly.com/philly/hp/news_update/20090317_Ex-lawmaker_faces_10_years_or_more.html">here</a>. I am not surpised that umo was convicted, although I am slightly surprised that he was convicted on ALL counts. While Fumo appears to have some viable appellate issues, I would be stunned if his motion for a new trial were to granted, and even more stunned if the Third Circuit were to overturn the conviction. Bottom line is that Vince will almost certainly end up doing prison time. The Inquirer story indicates that prosecutors are expected to seek a sentence in the range o 10 years. I haven&#8217;t done the math, but I expect that 10 years might be a little below the guidelines range. Nonetheless, I would anticipate that the judge would impose a sentence of something less than that. More to come on this one.</p>
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		<title>Killing The Billable Hour: Cravath And Me</title>
		<link>http://markjakubik.com/2009/01/08/killing-the-billable-hour-cravath-and-me/</link>
		<comments>http://markjakubik.com/2009/01/08/killing-the-billable-hour-cravath-and-me/#comments</comments>
		<pubDate>Thu, 08 Jan 2009 13:49:43 +0000</pubDate>
		<dc:creator>Mark</dc:creator>
				<category><![CDATA[Legal fees]]></category>

		<guid isPermaLink="false">http://markjakubik.com/?p=281</guid>
		<description><![CDATA[Evidently the chairman of America&#8217;s most august law firm agrees with me. In an essay published in the December 25, 2008 issue of Forbes, Evan Chesler, the managing partner at Cravath Swain &#38; Moore, essentially calls for the end of hourly billing. While I find certain particular points in Mr. Chesler&#8217;s piece either silly (such [...]]]></description>
			<content:encoded><![CDATA[<p>Evidently the chairman of America&#8217;s most august law firm agrees with me. In an <a href="http://www.forbes.com/opinions/forbes/2009/0112/026.html">essay</a> published in the December 25, 2008 issue of Forbes, Evan Chesler, the managing partner at Cravath Swain &amp; Moore, essentially calls for the end of hourly billing. While I find certain particular points in Mr. Chesler&#8217;s piece either silly (such as his referring to himself as a &#8220;trial lawyer&#8221;) or disputable (its not clear to me, for instance, that the billing regimen that Mr. Chesler endorses is really all that radical a departure from the hourly billing), I appluad his willingness to embrace new ways of thinking about fees. As I have said previously, hourly billing is pernicious in that it creates incentives for lawyers that are in direct conflict with their clients&#8217; interests, i.e., the cost efficient resolution of their problems. Alternative fee arrangements, including contingent or partial contingent fees, flat fees with success premiums and the like, bring the lawyers&#8217; incentive structure more into line with the client&#8217;s interests.</p>
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		<title>Who Is More Dangerous?</title>
		<link>http://markjakubik.com/2008/08/12/who-is-more-dangerous/</link>
		<comments>http://markjakubik.com/2008/08/12/who-is-more-dangerous/#comments</comments>
		<pubDate>Wed, 13 Aug 2008 03:44:17 +0000</pubDate>
		<dc:creator>Mark</dc:creator>
				<category><![CDATA[Sentencing]]></category>
		<category><![CDATA[White collar defense]]></category>
		<category><![CDATA[Jamie Olis]]></category>
		<category><![CDATA[White Collar Crime]]></category>

		<guid isPermaLink="false">http://markjakubik.com/?p=278</guid>
		<description><![CDATA[
The man on the right is Salim Ahmed Hamdan. He was Osama bin Laden&#8217;s driver. He was convicted of materially aiding terrorists. He was sentenced to 5 1/2 years in prison. The man on the left is Jamie Olis. He was an accountant for Dynergy Corp., and was convicted of materially aiding activities that were [...]]]></description>
			<content:encoded><![CDATA[<p><img src="http://blog.kir.com/archives/Jamie%20Olis3.jpg" alt="" width="188" height="281" /><img src="http://cache.daylife.com/imageserve/09gF9B29AY5xZ/340x.jpg" alt="" width="193" height="281" /></p>
<p>The man on the right is Salim Ahmed Hamdan. He was Osama bin Laden&#8217;s driver. He was convicted of materially aiding terrorists. He was sentenced to 5 1/2 years in prison. The man on the left is Jamie Olis. He was an accountant for Dynergy Corp., and was convicted of materially aiding activities that were later determined to be &#8220;fraudulent tax planning.&#8221; He was sentenced to more than 24 years in prison (reduced to 6 years &#8211; still 6 months more than bin Laden&#8217;s driver &#8211; after appeal). Tell me, who is more dangerous. And what do these two sentences tell us about the priorities of our justice system and our political classes. Free Jamie Olis!</p>
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		<title>Bad News For Fumo</title>
		<link>http://markjakubik.com/2008/08/07/bad-news-for-fumo/</link>
		<comments>http://markjakubik.com/2008/08/07/bad-news-for-fumo/#comments</comments>
		<pubDate>Thu, 07 Aug 2008 23:43:09 +0000</pubDate>
		<dc:creator>Mark</dc:creator>
				<category><![CDATA[Philadelphia]]></category>
		<category><![CDATA[Political cases]]></category>
		<category><![CDATA[White collar defense]]></category>
		<category><![CDATA[Corruption]]></category>
		<category><![CDATA[Fumo]]></category>

		<guid isPermaLink="false">http://markjakubik.com/?p=277</guid>
		<description><![CDATA[Another of State Senator Vice Fumo&#8217;s former aide&#8217;s has agreed to plead guilty and testify against their former boss. Looks like the rats are deserting the ship &#8211; with emphasis on the word rat. The Philly.com has the story:
In another blow to State Sen. Vincent J. Fumo, a computer technician who prosecutors said carried out [...]]]></description>
			<content:encoded><![CDATA[<p>Another of State Senator Vice Fumo&#8217;s former aide&#8217;s has agreed to plead guilty and testify against their former boss. Looks like the rats are deserting the ship &#8211; with emphasis on the word rat. The Philly.com has the story:</p>
<blockquote><p>In another blow to State Sen. Vincent J. Fumo, a computer technician who prosecutors said carried out an electronic cover-up for Fumo has agreed to plead guilty and is expected to testify against his former boss.</p>
<p>Leonard P. Luchko, 51, who worked in Fumo&#8217;s South Philadelphia office, is scheduled to plead guilty on Monday before a federal judge, according to a document filed yesterday in U.S. District Court.</p>
<p>Luchko and another computer technician are charged with systematically deleting e-mails and other potential evidence from computers used by Fumo and Fumo aides as well as by staffers at a key nonprofit organization that figured in the federal investigation.</p>
<p>The cleansing of the computers was allegedly done at Fumo&#8217;s behest and for the sole purpose of thwarting the federal investigation into Fumo&#8217;s activities.</p>
<p>Fumo, 65, a Philadelphia Democrat who has been a political powerhouse for decades in Harrisburg, is to stand trial in a sweeping corruption case starting next month.</p>
<p>He is accused of defrauding the state Senate and two nonprofit groups, misusing their employees and money for personal and political advantage. He is also charged with staging a cover-up to obstruct the FBI and IRS investigations.</p>
<p>Luchko is the second new prosecution witness to emerge in the months leading up to the trial before U.S. District Judge William H. Yohn Jr.</p>
<p>In June, political consultant Howard J. Cain, for years one of Fumo&#8217;s closest confidants, pleaded guilty to tax evasion and agreed to testify against Fumo.</p>
<p>Another computer aide in Fumo&#8217;s office, Donald Wilson, has been cooperating with federal prosecutors since before the indictment. He, too, is on the prosecution&#8217;s witness list.</p>
<p>James C. Schwartzman, a longtime friend of Fumo&#8217;s who is representing Luchko, did not respond to e-mail or phone messages. Fumo&#8217;s lead defense attorney, Dennis J. Cogan, would not comment about Luchko&#8217;s decision to plead guilty.</p>
<p>Assistant U.S. Attorneys John Pease and Robert Zauzmer also declined to comment about the scheduled guilty plea.</p>
<p>Luchko and a second computer technician, Mark C. Eister, were charged with leading an effort to cleanse computers used by Fumo, his staff, and workers at Citizens&#8217; Alliance for Better Neighborhoods, a civic nonprofit organization funded with millions of dollars through Fumo&#8217;s efforts. Eister is awaiting trial with Fumo. His lawyer, Brian P. McMonagle, could not be reached for comment.</p>
<p>According to the federal indictment, the effort began in earnest Jan. 25, 2004, after The Inquirer reported that the FBI was investigating Fumo.</p>
<p>&#8220;The FBI probe into the Senator has really set him off. . . . He wants all the Blackberries wiped,&#8221; Luchko wrote in an e-mail to Eister that evening.</p>
<p>Even as Luchko and Eister worked assiduously to clean others&#8217; computers, they failed to cleanse their own, an oversight exploited by the FBI to obtain copies of hundreds of e-mails.</p>
<p>In those messages to other staffers and Senate contractors, Luchko repeatedly cited demands from &#8220;the Boss&#8221; that potentially damaging e-mails be deleted.</p>
<p>&#8220;Mail from the Boss needs to be deleted!&#8221; Luchko wrote to one Senate contractor. &#8220;. . . You really have to clean your mailbox up this is the kind of s- that can get us in trouble.&#8221;</p>
<p>In another, Luchko boasted about his ability to outwit the FBI, saying investigators could never extract data from a particular Citizens&#8217; Alliance computer.</p>
<p>&#8220;Good Luck to them because they are going to need it,&#8221; Luchko wrote. &#8220;They aren&#8217;t getting s- off that PC.&#8221;</p>
<p>In the e-mails, Luchko portrayed Fumo as absolutely determined to have the staff&#8217;s computer cleansed.</p>
<p>&#8220;The Boss is driving us ALL nuts with this FBI madness. . . . Life just got so complicated it isn&#8217;t even funny and the killer is I can&#8217;t tell anyone about it.&#8221;</p>
<p>Now, it appears, Luchko is talking about it, to prosecutors.</p></blockquote>
<p>Might not look good for Fumo, but I still wouldn&#8217;t bet against him. Dude has more than nine lives.</p>
<p>Source: <a href="http://www.philly.com/philly/news/26370259.html">Philly.com</a></p>
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