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Texas Supreme Court Breaks New Ground in Limiting Jury Awards of Attorneys' Fees
Court applies "presumptive harm" rule to attorneys' fees for first time.

Houston, TX - The Texas Supreme Court has issued an important decision regarding recovery of attorneys' fees, ruling for the first time that legal principles previously used to limit or overturn jury damage awards can also be used to rein in legal fees. The December 1 decision came in a case involving a dispute over the distribution of proceeds from the sale of bull semen by Brushy Creek Custom Sires in Taylor, Texas.

Attorney Brett Busby of Mayer, Brown, Rowe & Maw LLP in Houston argued successfully that because the original jury award of compensatory damages against his client was significantly reduced on appeal, a new trial on attorneys' fees was required.

"We are pleased that the court realized that when damage awards are dramatically reduced on appeal, the sensible thing to do is give the jury an opportunity to reconsider the amount of attorneys' fees in light of that reduction," said Busby, who represented Emzy and Ava Barker, owners and operators of Brushy Creek Custom Sires, a business that boarded and provided other services for Brahman bulls.

Dr. Walter Eckman claimed that Brushy Creek had breached its agreement with him by failing to account for sales proceeds.

Houston's First Court of Appeals reduced the jury's original award of $112,000 in compensatory damages to $16,000 based on the statute of limitations. While the damage award was reduced, the $244,000 award of attorneys' fees was not.

The court of appeals reviewed the amount of fees in light of the original damages and concluded that it was supported by sufficient evidence. The supreme court held, however, that the Barkers were entitled to a review of the fee evidence in light of the reduced damages. Because the court of appeals could not perform such a review without substituting its judgment for the jury, the supreme court ordered a new trial on attorneys' fees.

This is the first time that the Texas Supreme Court has applied the "presumptive harm" rule of the Casteel line of cases to attorneys' fees. It reasoned that reversal was required unless it could be reasonably certain that the jury's fee award was not significantly influenced by the erroneous amount of damages it considered. Given the magnitude of the change in damages, the court held that the error war harmful.

The Court also applied the Saenz rule, which states a defendant is entitled to a meaningful evidentiary review of a jury's determination, to attorneys' fees. This use of Saenz, which involved non-economic damages, shows the Court's willingness to put meaningful limits on attorneys' fees.

"In recent years, windfall awards of damages have been scrutinized by lawmakers, courts, and community groups across the state. The supreme court has taken a significant step in extending this trend of reform to attorneys' fee awards that are disproportionate to the results achieved in the case," said Busby.

The Houston office of Mayer, Brown, Rowe and Maw has had another busy and successful year in the Texas appellate courts, including victories in Miga v. Jensen, Alpert v. Gerstner, and COC Services v. Grupo Carso. The appellate group is also handling an appeal of a $1 billion judgment to the Beaumont Court of Appeals. Busby argued his first case in the United States Supreme Court, Day v. McDonough, in February.

The depth of appellate experience in Mayer, Brown, Rowe & Maw's Houston office is unmatched in Texas. The group boasts native Texans who served as former U.S. Supreme Court clerks, including Busby who clerked for Associate Justice Byron R. White (Ret.) and Associate Justice John Paul Stevens. Jeremy Gaston clerked for Associate Justice Sandra Day O'Connor, and new associate Jeff Oldham clerked for Chief Justice William H. Rehnquist. In addition, associate Lee Kovarsky clerked for Judge Jerry Smith of the U.S. Court of Appeals for the Fifth Circuit. Veteran appellate partner Claudia Frost, who heads the Houston appellate group, has specialized in Texas appeals and litigation for 24 years.

12-05-2006

Mayer, Brown, Rowe & Maw's Insurance & Reinsurance Group Relocates to The Gherkin
Mayer, Brown, Rowe & Maw LLP's Insurance & Reinsurance Group will relocate from its current offices in the Lloyd's Building to the 31st Level of 30 St Mary Axe, commonly referred to as The Gherkin, with effect from 11 December 2006. The firm's main London office will remain at 11 Pilgrim Street, London EC4.

The move comes in response to considerable growth within the firm's Insurance & Reinsurance Group and the anticipation of significant further expansion over the coming years. Over the last three years the group has been strengthened by the addition of reinsurance partner Ian McKenna, the promotion of financial institutions partner Jane Childs and the recent arrival of insurance/reinsurance partner Peter Schwartz and the Group is exploring further exciting opportunities.

The global practice advises insurance and reinsurance companies on corporate and commercial issues including mergers and acquisitions, securitisation, competition/anti-trust, tax, outsourcing, employment and regulatory matters. The Group advises the London and international insurance and reinsurance markets on all matters affecting the insurance industry including the handling of high value claims, reinsurance issues and restructuring and insolvency issues.

Sean Connolly, Head of the firm's Insurance & Reinsurance Group, commented, "Our move to one of London's iconic office buildings in the heart of the insurance and reinsurance community reinforces our commitment to this important sector of our client base and will enable us to continue our growth in this area of our business.

12-05-2006

Ten at Lane Powell Named Rising Stars
Ten attorneys from Lane Powell were recently selected by their peers as "Rising Stars" for a 2007 survey published by Washington Law and Politics Magazine. The Seattle lawyers and their practice areas include: Brett Anderson, Commercial Litigation; Brian DeFoe, Corporate Finance and Securities; Gregory Fox, Banking and Creditor’s Rights; Susan Jahnke, Banking and Bankruptcy; Steve Jensen, Commercial Litigation; William Krause, Corporate Finance and Business; Brian Meenaghan, Business Litigation; Gwendolyn Payton, Intellectual Property Litigation; Mary Schug, Business Litigation; and David Young, Securities Litigation.

Only 2.5 percent of Washington attorneys are given this honor. The 2007 Washington Rising Stars appears in a special section in the December 2006/January 2007 issue of Washington Law & Politics. The selection procedure includes peer nominations (ballots mailed to Washington Super Lawyers) and independent research on candidates. Rising Stars names the top young lawyers in Washington as chosen by Washington Law & Politics Magazine and through independent research by the publishers of Law & Politics Magazine. All Washington Rising Stars are 40 or younger, or have been in practice for 10 years or less.

12-05-2006

Norling Certified as LEED® Professional
Lane Powell shareholder Jonathan M. Norling completed the U.S. Green Building Council’s Leadership in Energy and Environmental Design (“LEED”) certification program and is an Accredited LEED® Professional, one of the few attorneys in the United States with this designation. Seeking out and utilizing the input of a LEED® professional has advantages at every phase of a project’s development, from site selection and team formation to construction administration and project closeout. As a LEED® accredited attorney concentrating his legal practice on regulatory and transactional matters involving both electric and telecommunications utilities, Norling can provide valuable insight into how sustainable building strategies and the LEED® certification process in particular can be effectively integrated into the design and construction process, while also providing a better understanding when litigation revolves around a green design and building performance.

The LEED Green Building Rating System™ is nationally accepted as a benchmark for the design, construction and operation of high performance green buildings, and provides building owners and operators the tools necessary to have an immediate and measurable impact on their building’s performance. The program promotes a whole-building approach to sustainability by recognizing performance in five key areas of human and environmental health: sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality. This system is used by architects, real estate professionals, facility managers, engineers, interior designers, landscape architects, construction managers, lenders, government officials, among many others.

The U.S. Green Building Council is the nation’s foremost coalition of leaders from every sector of the building industry working to promote buildings that are environmentally responsible, profitable and healthy places to live and work. Its core purpose is to transform the way buildings and communities are designed, built and operated, enabling an environmentally and socially responsible, healthy and prosperous environment that improves the quality of life.

12-05-2006

Ex-Pelosi Aide Attracts Big Business
King & Spalding's Senior Government Relations Advisor George Crawford is profiled in this article from The Hill. He also provides some insight into how the Democratic shift may effect big business.

12-05-2006

Katten Partner and AIDS Foundation Co-Founder Michael Hirschberg Visits Tanzania for AIDS Clinic Dedication
For Katten Muchin Rosenman LLP’s Michael Hirschberg, last month’s 8,000 mile trip to Tanzania was more than two years in the making. Hirschberg, a New York-based partner in the Firm’s Corporate Practice and co-founder of the Foundation for Treatment of Children with AIDS, traveled to the East African nation to see his organization’s $1.6 million donation put into action with the dedication of a clinic being built to treat HIV-infected children. In 2004, Hirschberg’s foundation had provided a $1.6 million grant for the clinic’s construction, staffing, outfitting and operation. Katten serves as general counsel to the Foundation.

The grant was made to the Dartmouth Medical School, which is helping to fund the clinic as part of the DARDAR project, a collaboration between Dartmouth Medical School and the Muhimbili University College of Health Sciences in Dar Es Salaam. The Foundation’s grant will also assist in the endowment of a permanent position at Dartmouth for the director of the Infectious Disease and International Health program.

12-05-2006

2007 Law and the Media Seminar
The Law and Media Committee of the Houston Bar Association will host the Law and the Media 2007 seminar on January 27th. The seminar will be held at the South Texas College of Law from 8:30 a.m. - 12:30 p.m. The first session is entitled "From Front Lines to Bylines: The Legal Fallout of Military and Wartime News Coverage," and the second session is "To Shield or Not to Shield: Where is Texas Law?" Jackson Walker Partner, John K. Edwards, and Associate, Zola-Mari W. Salako, are members of the Law and the Media Committee.

12-05-2006

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