December 16th, 2009

NY Appellate Bench Rips Cardozo in Law Journal Letter


In a stunning rebuke to NYC’s top lawyer, Michael Cardozo, 18 of the 20 justices that sit in the Appellate Division, First Department have taken him to the woodshed with a letter in the New York Law Journal coming out tomorrow (12/17/09). The response comes due to Cardozo’s attack on the state’s judiciary last week. Cardozo is now starting his third term as the city’s Corporation Counsel.

The appellate court judges are responding to Cardozo’s December 7th column on improving efficiency in the courts, a subject I wrote about a few days ago when both bench and bar came down on him hard in NYC’s Top Lawyer Gets Reamed For Inefficiency (By Both Bench and Bar).

But now it is not simply one panel of judges ripping the city for its own inefficiency, or lawyers writing letters to the paper. Now the vast majority of the appellate bench that hears NYC cases has called Carozo’s “imperious outpouring of advice” “insulting.” They went on to write, led by Presiding Justice Luis Gonzalez (pictured), that:

“We feel compelled to respond to his misguided assertions, his misplaced blame and his attacks on the state trial judges…”

The First Department hears cases from the Manhattan and Bronx courts. And the Second Department, which sanctioned the city just last week in Byam v. City of New York for a decade of delay in providing discovery, handles Queens, Brooklyn and Staten Island (as well as other downstate counties).

You could almost see the smoke pouring off the keyboards of the judges as they wrote of Cardozo regarding changes in the use of 60-day reports that judges make to track cases:

In large measure, his facile proposals amount to an echo of reforms that are under way or have already been adopted by our former and current chief judges… Every one of these items has already been implemented by the Office of Court Administration, which on a constant basis compiles and circulates large amounts of information regarding judges’ job performance.

The idea that current reports are being inaccurate implied, to the court, that some dishonesty was going on. The letter stated:

The idea that complaints must be filed with the Judicial Conduct Commission in order to ensure accuracy in 60-day reporting requirements baselessly implies that there is actually a problem with inaccuracy, an implication for which Mr. Cardozo provides no support.

After defending the trial judges against Cardozo’s charges, the appellate judges lowered the hammer on him, placing the blame for much delay and inefficiency squarely at his feet (just as this letter Helene Blank and Marc Dittenhoefer did the other day):

In fact, it is ironic that the Corporation Counsel blames the courts for a failure to deal appropriately with litigation delays, since it is the office of Corporation Counsel of the City of New York that plays a significant role in causing those undue delays. For one thing, there is always a backlog of ready city cases in the dedicated city parts, and, with each part being assigned only two city attorneys, neither plaintiffs’ attorneys nor the trial judges have the means to ensure that ready cases can proceed immediately to trial; the city alone wields that authority.

A vast amount of inefficiency impeding the resolution of litigation is also created by the city’s oft-demonstrated cavalier attitude toward its discovery obligations. The city’s almost routine failure to timely and fully cooperate with its discovery obligations, even in the face of repeated court orders, is regularly confronted by city part judges attempting to solve the city’s intransigence (see e.g., Lewis v. City of New York, 17 Misc. 3d 559 [2007]).

What followed then was a litany of First Department cases in which the sanction of attorneys fees was imposed on the city as a result of its “inexcusably lax” responses to discovery orders.

And then a concession about city cases that all the personal injury attorneys in this town already knew, but had always been simply implied by the courts:

[A]s a rule, our courts give far more leeway to the city than we typically do to other defendants in civil actions.

Cardozo isn’t having a very good holiday season. In fact, having so many judges angry at him, I’m thinking this will be his last holiday season in his office.

It’s worth noting, however, that in an interview with the Law Journal that accompanied the letter (can’t find link), Justice Gonzalez said the First Department’s “track record of evenhandedness in our treatment of Mr. Cardozo’s client, New York City,” would continue despite the judges’ criticism. He went on to say, “The bottom line is our judges are always mindful of our ethical responsibilities and our members have always dealt with Mr. Cardozo’s client in a fair and even-handed manner and we will continue to do so.”

The Corporation Counsel has 650 attorneys working for it, and handles a wide range of legal issues on behalf of the city. Background here on Cardozo as he prepared to start his third term.

 

December 16th, 2009

Martindale-Hubbell Fires Spam Company; Explains Comment Spam Episode; Problems Remain (Updated)


Martindale-Hubbell previously reported that it suspended a company that sent comment spam to blogs, of which mine was one. They also offered a full accounting of the episode.

Today they confirm that the spammer has not just been suspended, but that they “have subsequently stopped working with them.” At my invitation, they have now given an accounting of the incident.

What follows is an email from Derek Benton, Director of International Operations at Martindale Hubbell International on the subject. My comments follow his email:
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“In late September, the UK Martindale-Hubbell team hired an agency to help us drive traffic back up on our co.uk. site. SEO was a core component of this program as a new directory structure for the site had caused significant issues with our organic rankings. It was our understanding that we would get to approve everything the agency did on our behalf, however unfortunately in this instance that did not take place. The agency we worked with, or an agent acting on their behalf, unfortunately posted some garbage comments without our knowledge.

We do not condone spamming under any circumstances, and once we discovered that these generic posts had gone out we immediately instructed the agency to halt all work on our behalf, and have subsequently stopped working with them. As we mentioned, we have also requested that the agency provide us with a list of all blogs affected so that they can be contacted individually.

Bottom line: we take this as seriously as you do. There’s absolutely NO long term benefit to us from spamming sites. One way or another it’s going to fail you in the end. We’re here for the long haul, and are fully aware that there are no legitimate short cuts. We’ve learnt an important (and somewhat painful) lesson about working with 3rd parties, but we’re confident that it’s one that will help us in the long run, even if it stings a little right now.”
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There are two interesting things about this episode. First, that Martindale-Hubbell says it is common practice to outsource attorney marketing to others, and second, that MH seems frantic after having been knocked off its #1 perch by upstart Avvo.com.

First to the outsourcing: In the Q&A that I did with Benton was this exchange about outsourcing their own work to British company called Conscious:

ET: After MH outsourced to Gilroy’s company [Conscious], did Gilroy outsource it elsewhere?

DB: Yes he did. Outsourcing is a common practice to help reduce labour costs.

As I’ve intoned before, attorney ethics and marketing are deeply connected. So when marketing gets outsourced, so do ethics. But the acknowledgement by MH that it is “common practice” for the attorney search services to, in turn, subcontract out the marketing they were hired to do, means that attorneys hiring a marketing company essentially run the “common” risk of their ethics being outsourced to low-cost mystery marketers.

Is that where you want your ethics to go, to the lowest bidder in the SEO marketing world? Because that appears to me to be part of the “common practice.”

It’s also worth noting that the “experts” in the attorney marketing world include disbarred or inexperienced attorneys.

Who, exactly, can you trust, when even the largest of attorney search companies feels it’s OK to send your ethics to the low bidder?

The second thing worth noting is the desperation of MH to reclaim its top spot in the attorney search arena as they worry about becoming an endangered species. Because there are beaucoup bucks to be mined from people that will — notwithstanding the risks of outsourcing their ethics to strangers hired on the cheap — ask others to advertise for them without understanding the ramifications.

If you hadn’t noticed, Avvo appears to have surpassed MH’s lawyers.com in the number of unique visitors they get each month. One of those two companies isn’t happy about that.

Of course, if you look at Avvo’s site, you’ll see that it is missing the “attorney advertising” mark that New York says is mandatory for attorney web sites.

It’s like the wild west out there.
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Addendum 12/18/09 from Denton via email:

Eric – Thank you for giving us the opportunity to tell our side of the story. Unfortunately, in your accompanying commentary you asserted that “Martindale-Hubbell says it is common practice to outsource attorney marketing to others.” That is not at all what we’ve said or done. The agency we hired was engaged to provide SEO services to our co.uk. site — not to fulfill any marketing services for lawyers.

My response: SEO and attorney marketing are interrelated.

Links to this post:

8 Predictions for Lawyers in 2010  
As we look forward into 2010, I see the pace of change for the legal world accelerating driven by the economy, technological improvements and lawyers becoming more entrepreneurial in response. My list below may sound very self-serving,
posted by Conrad Saam, Sr. Marketing Manager @ January 04, 2010 2:55 PM

 

December 15th, 2009

Judicial Hellholes

Over at the PopTort comes this humdinger of a letter they sent to the American Tort Reform Association, of which I give you but a snippet:

Your courageous “Judicial Hellholes” report at long last draws attention to the many injustices corporations have to face day in and day out. You have finally given a voice to the “mom and pop” tobacco companies, gasoline conglomerates, and insurance providers. Frankly, it gives me goose bumps.

And my commentary from last year:


Every year like clockwork they put out one of these “reports” and every year like clockwork the media reports on it as if it were something other than propaganda.


 

December 14th, 2009

Turkewitz v. Yahoo! (Part 1: Meet My Lawyer, Ted Frank)

I’ve hired a lawyer because I’m objecting to the settlement of a Yahoo! class action regarding click-fraud. And I’d like you to meet that lawyer, though many of my regular readers already know something about him. His name is Ted Frank, a man the Wall Street Journal once called a “leading tort-reform advocate.” He has promoted ideas that, I think, would close the courthouse for many. He is a frequent contributor to Overlawyered, a member of the conservative Federalist Society, and was, until recently, a fellow at the conservative American Enterprise Institute where big corporations seem to get a lot more favor than Joe Sixpack.

So why’s a guy like me, that does personal injury litigation for plaintiffs, consorting with the likes of Ted, who often rails against trial lawyers? Well as it happens, Ted is also one of the nation’s most knowledgeable people in the country in a niche of a niche. He doesn’t just know about class actions, but knows first hand how to object to a settlement if it fails to actually protect the class of people that are supposed benefit from the action.

Class actions can be a beautiful thing. Started pursuant to Federal Rule of Procedure 23, they allow large numbers of people with similar claims to bring an action together. Since without class status the suits wouldn’t be economical to bring, the suits tend to hold large wrong-doing companies accountable for conduct they might otherwise have gotten away with. Big companies hate class actions.

But if the settlement doesn’t seem fair, members of the class get to object. That might happen if the lawyers get a big fee relative to the financial benefits to the class victims. And Ted has a history of having done just that with a class suit regarding the video game Grand Theft Auto. He objected on his own time and his own dime, and it landed him in the New York Times, among many other places (Above the Law; Heritage Foundation; National Law Journal). Forbes later called him “a lawyer who tries to block class action settlements.”

Flush with the fame and fortune of his Grand Theft Auto objection, or at least the fame part, he left the American Enterprise Institute to start up the Center for Class Action Fairness, devoted to knocking down some of the settlements that don’t really benefit the class. Ted, in his own quirky way, had become a plaintiff’s lawyer, standing up for the little guy. He had, as Scott Greenfield aptly put it, found his groove. And that groove is the place between the class lawyers and the victims, and the conflict of interest that can occur.

So after Yahoo’s notice of settlement of the class action regarding pay-per-click fraud arrived in my mailbox — and having read it and realized I’d gotten the shaft — I knew who to call. I had received that notice because I had used Yahoo’s pay per click service from 2001 to 2005. I dumped the company in late 2005 when I strongly suspected click-fraud and the company did nothing about it. Over the years I spent about $5,000 per year on these ads, about $22,000 in total. I imagine that makes me a typical small business owner in the world of pay-per-click advertising.

There was just one bitty problem with the settlement that I took issue with. While the lawyers were asking for over four million dollars in legal fees, I got nothing. As in nada. Zip. Bupkus. And not just me, but if this settlement is approved the vast majority of the class will come away with checks for a similar amount: Zero.

Now the Rules governing class action are supposed to prevent this from happening. Federal Rule 23(a)(4), asserts that “the representative parties will fairly and adequately protect the interests of the class” and Rule 23(g)(1)(B) provides that “An attorney appointed to serve as class counsel must fairly and adequately represent the interests of the class.”

Here’s how they are trying to settle this case: The proposed click-fraud class settlement chopped up the thousands of paying customers into these three categories:

a. Those who still advertise with Yahoo!;
b. Those whose companies failed; and
c. Those whose companies are going concerns and no longer advertise with Yahoo!

Then they decided to “settle” the case by paying a whole 20 bucks to those people and companies that formerly used Yahoo! but their business failed. The rest got stiffed. No, this didn’t make sense to me either. Until I realized that this group of defunct businesses is the least likely to fill out paper work and make a claim. So the payment isn’t just measly beer money to a few, but beer money that even fewer will try to collect.

Another aspect of the “settlement” is that Yahoo! will improve its service. Well jolly good for them. They’ve been destroyed by Google, so trying to figure out a better way to treat your customers makes sense. But don’t try to sell that as part of a settlement. Yahoo! does that for its own survival, and no other reason.

So I spent money on Yahoo! for the ads, yet I got nothing back in this settlement. I have, quite literally, nothing to lose by objecting to this settlement. From where I sit, the Rules were clearly violated in that the class representatives and the lawyers didn’t “fairly and adequately protect” my interests. I look forward to the response to my objection where the attorneys get to state in open court that my interests were protected by giving me nothing. That should be a fun hearing.

And that’s why I contacted Ted. Sometimes strange alliances form in life. Ted Olson and David Boies, who fought opposing sides of Bush v. Gore, are now working together on the California gay marriage issue. Left wing political strategist James Carville married right wing political strategist Mary Matalin. And now, Turkewitz and Frank, together at last. Not quite Bogey and Bacall but you get the idea.

One thing I learned early on as a lawyer was not to pick personal fights. I watched my father try a case once, and he and the other lawyer would knock heads in the courtroom, then go out for coffee. Personal animus is not helpful in any way for winning a case. But it can hurt you if you need to talk to the other side about anything from adjournments, to witness schedules to settlement. So I try not to do it in life, and I don’t generally do it here.

The differences Ted and I have are those of ideas, so it was easy for me to contact him. In fact, we often agree that certain cases are dumb and frivolous, but we differ on whether those anecdotes support changes in policies.

For this case, it was a no-brainer that Ted Frank should be my lawyer. And so he is.

Stay tuned…
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License plate of Ted Frank’s car, via Byron Stier @ MassTorts

Links to this post:

Former Yahoo Advertisers Objecting To Class Action Settlement
We’ve discussed in the past how the class action lawsuit process if often abused mercilessly. While the concept of a class action lawsuit can make a lot of sense, as you look at the details of many of the lawsuits, they do little to

posted by Mike Masnick @ December 16, 2009 8:59 PM

Class action objection
Eric Turkewitz, noted plaintiff’s-lawyer blogger, teams up with Ted Frank, noted Overlawyered.com blogger, to object to a Yahoo! class action settlement. Tags: class action settlements, legal blogs, Ted Frank
posted by Walter Olson @ December 15, 2009 8:50 AM

 

December 11th, 2009

NYC’s Top Lawyer Gets Reamed For Inefficiency (By Both Bench and Bar)

You just don’t often see a city’s top lawyer get shot down so hard and so fast as we did here in New York this week. Shortly after writing a column for the New York Law Journal on inefficiencies in the court system, an appellate court struck the city’s answer in a case they were defending. The court’s extraordinary action was taken due to a decade of delay by the city’s law department in furnishing documents to the plaintiff. This was followed by a blistering letter in the paper from two of this town’s top personal injury attorneys regarding more inefficiencies by the city.

It started Monday, December 7th, when city Corporation Counsel Michael Cardozo published his version of a “Top 10” list related to court reform. The column focused its attention on our underpaid judiciary, lambasting them with a screed focusing on a lack of efficiency from the bench with respect to motions and trials. He suggested performance goals for the judges, focused on delayed decision making, more status reports from the judges, more evaluations of judges and moving judges to understaffed parts.

Response was swift, perhaps swifter than he ever imagined, and is an instant classic with respect to throwing stones from a glass house.

Just one day later, the Appellate Division Second Department decided Byam v. City of New York, lambasting  Cardozo’s office in a false arrest and malicious prosecution case for failing to produce records that were first requested in 1997. The court, in reviewing the numerous attempts to get the documents, finally struck the answer of the city as all other sanctions would have been insufficient, saying that their “willful and contumacious conduct can be inferred from their repeated failures, over an extended period of time, to comply with the discovery orders, together with the inadequate, inconsistent, and unsupported excuses for those failures to disclose.”

And Cardozo was trying to call the judiciary inefficient?

That  was followed yesterday, December 10th,  with a letter in the New York Law Journal that eviscerated Cardozo and his office. The letter, by Marc Dittenhoefer and Helene Blank (both well-known and well-respected among bench and bar) is reprinted here with their permission, in its entirety.

While one may believe that Dittenhofer and Blank have taken great risks by having this letter published, given the substantial amount of work they do where the city is the defendant and the risk of pay-back from that office, I agree with them that such inefficiencies must be disclosed. The idea of the city’s top lawyer throwing stones at the judiciary while he can’t clean up his own house is one that can not be ignored.
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As attorneys practicing in the courts for over 30 years, we were eager to read what Michael Cardozo, our three-term Corporation Counsel had to say about the courts because, after all, one of the biggest problems we encounter on a regular basis is dealing with the Corporation Counsel’s office on almost every case in which the city is involved. We are not alone in our experiences. The court system and all litigants — plaintiffs or defendants, petitioners or respondents — have to regularly deal with the inefficient office. That is not to say that many of the women and men who toil there are not doing an excellent job, but the bureaucracy of the office
is designed to hamper, delay, sidetrack and stop the smooth and efficient progress of any lawsuit in which the city is involved. Instead, what we read was no less than a thinly veiled assault on our hard working judges and another plea for “merit selection” over election.

Mr. Cardozo would prefer that his boss have the ability to appoint all the members of the bench who will then preside over the cases that he litigates. Fortunately, that is unlikely to happen. The U.S. Supreme Court has spoken and no matter how imperfect our system is, it is in our minds preferable to one person selecting the man or woman who will ultimately decide a client’s fate.

We have seen both the good and bad in both systems and no one who practices daily in our courts believes that merit selection is only done on the merits. We were disappointed that Mr. Cardozo didn’t take the time to inform the bench and the bar of what changes he is going to make in his third term to improve his own house. Because no matter how he views Office of Court Administration, at the beginning and end of the day the elected judges are accountable to the people who elected them, but his office is accountable directly to him. We speak from experience as plaintiff’s attorneys, defendant’s attorneys and court appointed fiduciaries. Ask any judge how easy it is to get the city to comply with a court order.

While without question there have been great strides at the city’s law department to operate more efficiently, it is still impossible to obtain even the most prosaic information from the city’s counsel in the course of legitimate litigation including the names of city contractors who are responsible to both the plaintiff and the city, due to the deliberate, arcane and byzantine methods it uses to catalogue same, apparently designed to frustrate identification and retrieval.

The inordinate delay caused by the city’s presence in a case prompts plaintiff’s counsel to do anything to avoid having to sue the city, which might very well have been the plan in the first instance. Yet, however satisfying such a misdirection might be to the winning hand, such is hardly the proper way for a city to treat its citizenry. And this is not yet to mention the eve of trial witness revelations that happen constantly.

Perhaps Mr. Cardozo, who in his article talks about removing matters from the courts, can explain why the city will not participate as a litigant in mediation let alone arbitration. Is there a 60-day reporting system for his attorneys? Are they being held accountable for failing to comply with court orders and for the repercussions that follow? Are his attorneys being evaluated on their performances? Or does he just accept as we are told to accept that the volume of cases, lack of sufficient staffing and budgetary constraints make it impossible to be better than they are?

We were offended by Mr. Cardozo’s article, offended for the judges who confront unmanageable caseloads, insufficient staffing, unreal expectations from OCA and Mr. Cardozo, and who suffer from low morale because they haven’t had a pay increase in more than a decade.

We were also offended because the article was written by the three-term Corporation Counsel whose own house needs serious re-ordering. Since Mr. Cardozo has the ability to impact the way his office operates, we sincerely hope his third term is spent getting his own office better prepared. Perhaps if that’s done, just once, when a litigant asks for the information to which s/he is entitled, they can get it so they might avoid litigation and not have to sue the city to keep the statute of limitations from running out. That would be a great thing to accomplish indeed.

Helene E. Blank
Marc M. Dittenhoefer
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Full disclosure: I know both Blank and Dittenhoefer and frequently litigate against the city’s Corporation Counsel.