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Jenner & Block Files Lawsuit Against Pinnacle Group on Behalf of Community Organization and Tenants with Support of Elected Officials in New York
West Harlem community residents recently filed a lawsuit against the apartment management company Pinnacle Group and its founder and owner Joel Wiener, claiming they fraudulently inflate rents, fail to make needed repairs and groundlessly harass tenants ¡V all as part of a coordinated business strategy to boost profits and drive middle-income tenants from their apartments. Pinnacle Group and Wiener own and operate more than 420 apartment buildings that contain more than 21,000 apartment units and approximately 60,000 tenants in New York City.

The lawsuit, filed on a pro bono basis by Jenner & Block on July 11, constitutes a new fight against corporate slumlording and comes at a time when rising property and rental prices have made it increasingly difficult for middle class families to find affordable housing in the city.

The nine individual tenants from West Harlem and the community group Buyers and Renters United to Save Harlem (BRUSH) claim that Pinnacle¡¦s pattern of deceptive consumer-oriented acts and practices violate the New York State Consumer Protection Act. Additionally, Pinnacle's ongoing pattern of fraudulent practices is alleged to violate the Federal Racketeering Influenced and Corrupt Organizations Act (RICO), which makes it unlawful to conduct affairs through a pattern of racketeering activity.

Public Advocate for the City of New York Betsy Gotbaum and Manhattan Borough President Scott Stringer joined to support the community's efforts to seek, among other forms of relief, payments for overcharged rents, immediate injunctive relief to restrain unlawful behavior and the creation of an independent body to ensure lawful management of buildings. Pinnacle and Wiener are financed in part by a six-billion-dollar real estate investment firm, the Praedium Group, to undertake a self-described "value enhancement" business strategy, an apparent policy of harassing tenants to the point of eliminating rent-regulated units. Included among the list of harassing techniques allegedly used by Pinnacle and Wiener are:

* Seeking to collect illegal rents based on fraudulent claims of individual apartment improvements and major capital improvements
* Failing to make necessary and reasonable repairs to address housing maintenance code violations
* Commencing unfounded court proceedings to challenge tenants' succession rights
* Unjustifiably refusing to accept tenants' rent checks and then claiming non-payment
* Directing and encouraging superintendents of its buildings to make unacceptable and shoddy repairs or make false promises to conduct repairs

In fact, regarding the shoddy repairs, the City's Department of Housing Preservation and Development (HPD) website currently lists multiple apartments under Pinnacle management with a slew of long uncorrected violations, including multiple "impairing" rent and hazardous violations such as inadequate fire exits, lead-based paint, and lack of heat and hot water. Many of these hazardous "Class C" violations have not been addressed for years, despite the fact that the Housing Maintenance Code requires owners to correct Class C violations within 24 hours.

Ms. Wright, a 74-year-old woman who has lived in a Pinnacle-owned rent-controlled apartment for almost thirty years, had an electrical fire in her apartment in November 2006. The fire damaged her apartment to the extent that she was forced to move into a shelter, where she remained until March 2007. While she was at the shelter, the property manager told her that the repairs had begun. When she returned to her apartment, paint and rubbish had been left throughout the rooms and soot from the fire was still concentrated in various areas.

Kim Powell, President of BRUSH, said, "The Pinnacle Group is a parasite, profiting from tenants without giving anything back to the community. They have amassed thousands of affordable, rent-controlled units in New York City, victimizing tenants by illegally inflating rents while reducing the quality of repairs and services. It's obvious in the contrast between the inferior quality of work and materials used in older, occupied apartments and the newly-renovated units. BRUSH was formed by Pinnacle tenants to fight back against these kinds of tactics by landlords, and we intend to hold The Pinnacle Group accountable for their actions."

Partner Richard F. Levy, who led the Firm's team on this matter, said "Slumlording, and the attack on affordable housing in New York city are not new. But the sheer size of the Pinnacle and Wiener assault on rent regulated units, financed and supported by the $6 billion Praedium Group and its publicly announced "value enhancement program" that focuses "on underperforming assets" provides a serious threat to many of Pinnacle's tenants in particular, and affordable housing in New York City in general. We have undertaken this huge effort to do something about that."

Public Advocate Gotbaum said, "Unscrupulous landlords mistreating tenants is nothing new. But we now believe there is a coordinated practice of harassment and neglect from corporate slumlords across thousands of apartments in the city. This major lawsuit opens a new front in the battle to protect tenants. Tenants and families need to know that they are not alone, and that we will do everything we can to protect them."

Manhattan Borough President Scott Stringer said, "The actions alleged by this lawsuit are a direct attack on affordable housing. Middle and low-income residents of Northern Manhattan are among many others throughout the city who believe that illegal tactics are being used to drive them out. For all those New Yorkers, whether dealing with Pinnacle or with some other landlord, this lawsuit is an important show of resistance, for which BRUSH and Kim Powell should be applauded."

The city clearly faces some challenges when it comes to cracking down on deadbeat landlords. As of June 2006, HPD had fewer than 40 attorneys in its Housing Litigation Division to deal with the nearly 13,000 cases it initiated in 2005. Some instances linger for months or years, meaning that New Yorkers have to go on living with unsanitary and dangerous conditions, such as leaky ceilings and apartments overrun with vermin.

In addition to Mr. Levy, the Jenner & Block legal team includes Partners Andrew A. Jacobson, Kenyanna M. Scott, Ronald M. Daignault, Katya Jestin, and Susan J. Kohlmann and Associates Chinh Q. Le, Carletta F. Higginson and Elizabeth Valentina.

According to Mr. Levy, Jenner & Block lawyers and professionals have spent more than 1,500 hours without charge during the past year investigating the Pinnacle Group and Joel Wiener, interviewing tenants and preparing the complaint that was filed in federal court.

07-16-2007

Prominent Real Estate Attorney Ronald B. Grais Joins Jenner & Block as Partner
Commercial real estate attorney Ronald B. Grais has joined Jenner & Block’s Chicago Office as a Partner in the Firm’s Real Estate and Climate and Clean Technology Practices. Mr. Grais has had a distinguished career in all aspects of real estate development and finance with particular expertise in sophisticated mixed use projects in both urban and suburban settings, including the recently completed Center on Halsted and the redevelopment of downtown Des Plaines.

“We are delighted that Ron is joining Jenner & Block,” said Partner Donald I. Resnick, Chair of the Firm’s Real Estate Practice. “He is an astute and creative problem solver whose experience and reputation in the real estate industry will be an asset to our growing practice.”

Mr. Grais is known for his active leadership in the not-for-profit community and has been recognized nationally for his efforts on behalf of people with disabilities and affordable housing.

From 1982-1990, Mr. Grais was President of the Grais Company, a real estate development, operating and management company which was responsible for 16 successful projects including award winning historic rehabilitation and the development of shopping centers, office buildings, multi-family residential projects and parking garages, such as the “Rolls-Royce of parking garages” at 50 East Lake and One Grand Place at Clark and Grand, both in Chicago, and the Oak Leaves Building in Oak Park.

Before joining Jenner & Block, Mr. Grais was a Principal in Schwartz Cooper Chartered’s Real Estate Development, Acquisitions & Dispositions Practice as well as their Construction Law Practice.

Mr. Grais earned his law degree from the University of Chicago in 1968, where he was associate editor of the University of Chicago Law Review. He earned his B.A. from Cornell University in 1965.

07-16-2007

Cooley Godward Kronish Expands to Boston
Cooley Godward Kronish LLP, a national leader in representing technology and life sciences companies and litigating high-stakes commercial and intellectual property disputes, announced today it has opened an office in Boston. With the arrival of 10 Boston-based partners from several national firms with Boston offices, Cooley will establish a significant New England presence with market-leading expertise in emerging and public companies, life sciences, venture and private equity fund representation, mergers and acquisitions, intellectual property and commercial litigation. The Firm anticipates additional attorneys joining in the coming weeks.

“Boston is one of the leading technology and life science centers in the world and, given Cooley’s strength and leadership in these sectors, this is a natural market for the Firm’s expansion,” said Stephen C. Neal, chairman and CEO of Cooley. “A Boston office has long been part of Cooley’s strategic plan and our knowledge of the marketplace gained over years of substantial activity here enabled us to identify and recruit a group of first-class attorneys. We could not be in a better position to hit the ground running.”

John Hession and Lester J. Fagen, two well-recognized corporate attorneys with a combined 50 years of practice in Boston, will lead the new office. Hession, who will serve as the partner in charge, is one of the leading emerging companies and venture capital attorneys in the country and joins Cooley from the Boston office of McDermott Will & Emery. Fagen, a seasoned private equity and venture capital attorney with a diverse corporate and investor client base, will lead Cooley’s business and technology practice in Boston and its private equity practice firmwide. He joins Cooley from the Boston office of Goulston & Storrs.

In addition to Hession and Fagen in the corporate practice, Alfred L. Browne, III joins from Sullivan & Worcester where he was chair of the venture capital/emerging companies group; Miguel J. Vega, also from Sullivan & Worcester, where he was a co-director of the corporate department; Patrick J. Mitchell, a director at Goulston & Storrs, who focuses on private equity and venture capital; and Marc Recht a partner in the corporate department at McDermott Will & Emery.

The intellectual property practice includes Thomas C. Meyers, who was chair of the intellectual property department at Sullivan & Worcester’s Boston office and recently general counsel of Helicos BioSciences Corporation, and Robert J. Tosti, who was a partner in Edwards Angell Palmer & Dodge’s intellectual property practice group.

The Boston office’s litigation group will include Richard S. Sanders, joining from Sullivan & Worcester, where he was chair of the technology litigation practice, and Robert B. Lovett, a partner in the securities and financial litigation group at Seyfarth Shaw.

Cooley's new Boston team all were at one point in their careers with Testa, Hurwitz & Thibeault, LLP, Boston’s leading technology and life sciences firm until its dissolution in 2005. The partners have a wealth of experience representing companies in financings, initial public offerings, merger and acquisition transactions, and major litigations, representing clients in some of the most significant matters in the region collectively valued in the multiple billions of dollars.

Commented Hession, “By virtue of its national reputation and strategic focus on technology and life sciences, Cooley will fill a gap in the Boston legal market. To become a part of this great firm, and to be joining with former colleagues I profoundly admire both as friends and practitioners, is an incredible opportunity.”

“New England is not a ‘new’ market for Cooley,” said Barbara Kosacz, head of the Firm’s life sciences practice. “We have had an active presence here for many years through our work with market-leading life science companies and venture funds, and last year Cooley was ranked second in the Eastern U.S. for our representation of venture-backed companies.”

The opening of a Boston office marks Cooley’s continued expansion on the East Coast. Last fall, Cooley merged with premier New York firm Kronish Lieb Weiner & Hellman, establishing a full-service office in Manhattan which offers clients substantial capabilities across critical practice areas including financial transactions, mergers and acquisitions, high-profile litigation, bankruptcy, tax and real estate. Cooley opened an office in Washington, DC in September 2005 and currently has more than 30 attorneys there, including leading attorneys in corporate law, government contracts and intellectual property litigation. As a result of robust growth in that market, the Firm will move to expanded office space this September.

Cooley’s Boston office occupies the 46th floor of The Prudential Tower, located in Boston’s Back Bay.

07-16-2007

Cooley Godward Kronish Named to "Defense Hot List" by National Law Journal
Cooley Godward Kronish LLP's Litigation practice has been recognized in the National Law Journal's (NLJ) third annual "Defense Hot List." The firm was one of ten firms chosen and was praised for its handling of numerous high-stakes disputes for a roster of high-profile clients throughout the U.S.

To compile their list, the NLJ sought nominees that managed at least one significant defense bench or jury verdict since July 1, 2006. The "Hot List" winners also needed an impressive overall track record.

Two of the firm's noteworthy cases, including a complex business dispute and a mission-critical IP/patent dispute, are highlighted in the NLJ's "Hot List":

Monolithic Power Systems Inc. v. O2 Micro International Ltd., No. 04-cv-02000 (N.D. Calif. 2007). Trial counsel Thomas Friel, Jim Brogan, Matthew Brigham and Brian Mitchell. With $500 million at stake, Cooley defended a semiconductor manufacturer against patent infringement claims. Cooley won a jury verdict invalidating the plaintiff's patent, which juries had sustained in litigation defended by other firms.

Capital Trading Co. v. Litvack, No. CIV 459751 (San Mateo Co., Calif., Super. Ct. 2007). Trial counsel John Dwyer, Gordon Atkinson and Martin Schenker, with Conor Medsystems Inc. Associate General Counsel Heather Turner. Johnson & Johnson's $1.4 billion acquisition of Conor Medsystems was at risk when unhappy shareholders alleged that the target firm had withheld material facts from its proxy statement. A state trial judge ruled that none of the matters was material to the deal.

07-16-2007

Robert S. Frenchman Joins New York Office
Bracewell & Giuliani LLP announced today that Robert S. Frenchman has joined the firm as a partner in its New York office, where he will work in the Corporate & Securities Section.

Mr. Frenchman has significant experience representing broker-dealer and other financial services clients in enforcement proceedings before the Securities and Exchange Commission, New York Stock Exchange, NASD, and other securities regulators. Over the years, he has played an important role in major regulatory investigations involving, among other things, allocations in initial public offerings, specialist trading, OTC market-making, securities lending, margin, gifts and gratuities, and research.

Mr. Frenchman also has significant experience drafting and negotiating agreements for broker-dealer clients, drafting policies and procedures for broker-dealer clients, acting as regulatory counsel in broker-dealer acquisitions, and advising broker-dealer clients on securities law matters. Mr. Frenchman has developed particular expertise with broker-dealer outsourcing, an emerging area that has received significant regulatory attention in recent years.

“Bob’s breadth of experience and knowledge make him a valued addition to our Corporate & Securities practice,” said New York Managing Partner Daniel S. Connolly, “We are delighted to welcome him to the Bracewell team.” Before joining Bracewell, Mr. Frenchman was an associate at Milbank, Tweed, Hadley & McCLoy LLP.

"Bracewell unites an extraordinary culture with a level of sophistication in practice of which I am pleased to be a part. I am very excited about the opportunity to work with such a talented group of lawyers," said Mr. Frenchman. "It is a great privilege to be joining the Bracewell team."

Bracewell opened its New York office in April 2005 after former New York City mayor Rudolph W. Giuliani joined as a name partner. Since then, the firm's New York office has quickly grown to more than 40 attorneys.

07-16-2007

Derrick Mitchell Joins Public Law Practice
Bracewell & Giuliani LLP announced today that Derrick Mitchell, a lawyer with substantial expertise in corporate transactions and public finance, has been named a partner in the Public Law Section of its Houston office, effective July 16, 2007.

Mr. Mitchell has extensive experience serving as bond counsel, disclosure counsel, and underwriter’s counsel for a variety of entities, including national and regional investment banking firms, and several city, county and state agencies. He focuses his practice on general obligation and revenue bonds, including transportation revenue, industrial revenue, higher education, mortgage revenue, pollution control, and non-profit hospital bonds.

Mr. Mitchell currently serves on the Leadership Advisory Council of the United Negro College Fund (Houston office), the Houston Chapter’s Executive Committee of the National Black MBA Association, the Board of Directors of the Midtown Redevelopment Authority, and is the Policy Council Chair of the American Heart Association.

Mr. Mitchell is a 1999 graduate of the University of Houston Law Center and is currently a member of the State Bar of Texas, the Houston Bar Association, the National Association of Bond Lawyers, the Houston Young Lawyers Association, and the Houston Lawyers Association. Prior to joining Bracewell, Mr. Mitchell was a shareholder at Winstead PC in Houston.

07-16-2007

Michelle F. Altieri Receives Edwin P. Rome Pro Bono Achievement Award
"Blank Rome is pleased to announce Michelle Altieri is the recipient of the 2007 Edwin P. Rome Pro Bono Achievement Award, recognizing her dedication and accomplishments to pro bono service. Blank Rome will contribute $1,000 to Ms. Altieri’s organization of choice, the Domestic Violence Clinic at Rutgers University School of Law in Camden, New Jersey, a legal clinic dedicated to raising awareness about domestic violence in the state.

The Edwin P. Rome Pro Bono Achievement Award recognizes one Blank Rome attorney each year for his or her commitment to pro bono service and the pursuit of equal justice for all. Ms. Altieri was recognized for her pro bono efforts in representing a domestic violence victim who suffered from physical and emotional abuse and had been threatened by her husband with an illegal AR15 assault rifle. Ms. Altieri worked with local and state police departments to locate witnesses and confiscate the assault rifle. Through Ms. Altieri’s efforts, a Final Restraining Order was entered for the client and the court awarded the client sole legal and physical custody of her son.

“Blank Rome’s tradition of pro bono service dates back to Edwin P. Rome, one of the Firm’s founding partners,” said Kathy Ochroch, Blank Rome partner and director of pro bono services. “We are pleased to recognize Michelle’s steadfast commitment to pro bono work, which further supports the Firm’s long history of making a positive impact in the communities where we live and do business.”

“I am pleased that I was able to ensure that my client and her son received the protections afforded by New Jersey’s domestic violence laws, and it’s an honor to be recognized for my work by this award,” said Michelle Altieri, associate in Blank Rome’s matrimonial group. “With our knowledge and skills as attorneys, it is our responsibility to help those who are unable to help themselves. I am proud to be part of a firm that recognizes that responsibility and supports pro bono and community service at every level of the organization. In addition to performing pro bono legal services, Blank Rome provided me with the opportunity to contribute to the Domestic Violence Clinic at Rutgers, which provides essential services for victims of domestic violence in our community. I am glad that we are able to support its work in this way.”

Blank Rome actively encourages and supports pro bono service across the Firm, through training, mentoring, and a culture that recognizes the importance of ensuring that everyone has equal access to legal representation. The Firm has an active pro bono committee and has adopted a formal pro bono policy that encourages attorneys and paralegals to undertake at least 60 hours of pro bono service every year. The roster of names on the pro bono Honor Roll each year attests to the number of attorneys who volunteer far in excess of 60 pro bono hours.

Based in Blank Rome’s Cherry Hill office, Ms. Altieri is an associate in the Firm’s matrimonial group, handling numerous cases involving divorce, child custody issues, and domestic violence matters. She clerked for the New Jersey Superior Court, Chancery Division, General Equity Part.

Ms. Altieri received her law degree from Widener University School of Law, cum laude, where she was the recipient of the Josiah Oliver Wolcott Fellowship, and her bachelor of arts degree, cum laude, from Rowan University."

07-16-2007

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