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In Face of Approximately 30 Million Jury Demand, CM Convinces Jury to Award Plaintiff Only $270,084
Clausen Miller partners James M. Hoey, Thomas S. Gozdziak and Tracey A. Jordan obtained a very favorable result for client Three Rivers Insurance Company after a 3 week jury trial in the U.S. District Court for the Western District of Pennsylvania. The case involved the 2001 collapse of a large piece of machinery called a stacker/reclaimer which was used at the plaintiff's bauxite mining & shipping operation located in Guinea, West Africa. Bauxite is the raw material used to make aluminum.

Plaintiff Compagnie des Bauxites de Guinee ("CBG"), is owned by the Government of Guinea and a number of leading international aluminum producers. CBG's bauxite mining operations were insured under Alcoa's global all risk property insurance policy. The insurance policy provided that losses involving production machinery would be valued on the basis of the "cost to repair or replace new." CBG made a business decision to replace the stacker/reclaimer following the collapse, and took the position that it was entitled to reimbursement from the insurer for the entire replacement cost of the machine plus alleged business interruption losses through the time when the replacement machine became operational. Three Rivers took the position that the stacker/reclaimer was capable of being repaired to its pre-loss condition, and that valuation under the policy was thereby limited to the theoretical repair cost and business interruption losses sustained during the theoretical repair period.

On the eve of trial, we obtained favorable rulings from the court which gave Three Rivers the momentum heading into the trial. The court found the insurance policy to be clear and unambiguous. The court ruled that the determination of whether the proper basis for measuring the loss under the policy is "cost to repair" or "cost to replace new," will turn on the jury's determination of whether the machine could have been repaired to its pre-loss condition. The court rejected the plaintiff's argument that the jury should instead be asked whether it was more "commercially reasonable" to replace the machine rather than repair it.

In Phase I of the trial, the jury determined that an attempted repair of the stacker/reclaimer would have returned the machine to its pre-loss condition. As a result, plaintiff was limited to seeking damages in Phase II of the trial based upon a repair cost measure of the loss. In Phase II, CBG asked the jury for an award of $26 million new money including $16.5 million for business interruption losses. The jury awarded CBG only $270,084.

The Federal Courtroom in which the case was tried was equipped with the latest audio-visual equipment available, which was used by us in successfully presenting the case. We also utilized our in-house technology resources such as Concordance, Summation and TrialDirector software programs in marshaling the evidence.

Litigation of the case lasted over 3 years and included depositions in England, Germany, France and South Africa. At trial, we utilized the expert testimony of a metals economist, a mining engineer and an accountant to explain to the jury that the decrease in bauxite shipments experienced by CBG following the collapse was due to a downturn in the alumina market and other unrelated production problems experienced by CBG -- and not due to the absence of the stacker/reclaimer following the collapse. We also utilized the expert testimony of a South African engineer and an American engineer to establish the repairability of the machine and the reasonable estimated cost to repair.

07-11-2007

Turner B. Williams Inducted Into the Litigation Counsel of America
Birmingham, Alabama attorney Turner B. Williams, of Burr & Forman LLP, was inducted into the Litigation Counsel of America at the LCA’s Spring Conference and Induction of Fellows in New York.

Turner practices in Burr & Forman’s Litigation section, where he has significant experience in defending tractor/trailer accident cases, defending railroads in suits brought under the Federal Employers’ Liability Act, product liability matters, contractors and contractor claims, premises liability, and several other types of business and commercial litigation.

Turner received his undergraduate and law degrees from the University of Alabama. He is a member of the American Bar Association, Alabama State Bar, Jefferson County Bar Association, Birmingham Bar Association, Alabama Defense Lawyers Association, National Association of Railroad Trial Counsel, Defense Research Institute, and International Association of Defense Counsel.

Turner currently serves as a Municipal Judge for the City of Mountain Brook. He is listed in The Best Lawyers in America in the Railroad and Transportation Law categories; and is the co-author of the article “Humanizing the Corporate Defendant” for the publication The Practical Litigator.

07-11-2007

Brinks Hofer Gilson & Lione Scores Major Trial Win Defeating Billion Dollar Patent Case Against R.J. Reynolds Tobacco Company
Brinks Hofer Gilson & Lione, one of the largest intellectual property law firms in the U.S., announced a resounding victory in a major patent infringement case brought against its client, R.J. Reynolds Tobacco Company, by Star Scientific, Inc. (Star Scientific, Inc. v. R.J. Reynolds et al., Nos. MJG-01-1504 & MJG-02-2504 (D. Md.)). The defense team was led by Brinks attorneys, Richard A. Kaplan, Ralph J. Gabric, K. Shannon Mrksich and Jerold A. Jacover, all shareholders at the firm. The case involved two patents for a method of substantially preventing the formation of tobacco-specific nitrosamines.

Star had requested damages of more than a billion dollars. Brinks tried the case in Baltimore in a bench trial before the Court that focused on the defense of inequitable conduct that Brinks developed during discovery.

According to August Borschke, chief patent counsel for R.J. Reynolds, Star improperly attempted to procure patent coverage for old tobacco curing technology and, in the process, concealed that old technology from the Patent Office.

On June 26, 2007, U.S. District Court Judge Marvin J. Garbis concluded that R.J. Reynolds won the trial and issued a 47-page written opinion holding that Star's patents were unenforceable for inequitable conduct in the Patent Office. Judge Garbis also entered final judgment that Star's patents are both unenforceable and invalid. As a result, after six years of litigation, all of Star's claims against R.J. Reynolds have been dismissed.

"We applaud the thoughtful decision issued by Judge Garbis. This has been a long, hard-fought case and we are very pleased that our client, R.J. Reynolds, has been vindicated and has been found to have done nothing wrong," said Richard A. Kaplan. "From Day 1, we have said that Star's case was totally without merit. To put this decision in perspective, this is probably one of the largest defense wins in a patent case in history, since Star was seeking more than $1 billion and has now come away with nothing. As the court noted, Star made substantial, material false statements and omissions and deliberately misled the Patent Office. The patents have now been expunged. This is a monumental win. This defense has been a team effort for my firm and I want to thank all the many people that participated in achieving this victory."

The final judgment incorporates earlier January 2007 rulings by Judge Garbis granting summary judgment in favor of R.J. Reynolds. Judge Garbis deemed Star's patent claims invalid as fatally indefinite, observing that "the essential problem with the claims is that no one - certainly not one of ordinary skill in the art - reading the patents-in-suit would be able to carry out the invention."

In response to Star's statement that it will appeal, Ralph J. Gabric commented, "We are very confident that the thorough and well-reasoned decisions of Judge Garbis will be upheld on appeal and I suspect that the Federal Circuit will be as offended by Star's conduct in the Patent Office as Judge Garbis was."

R.J. Reynolds is the nation's second largest tobacco company.

07-11-2007

Wilson Sonsini Goodrich & Rosati Expands Intellectual Property Litigation Practice
Wilson Sonsini Goodrich & Rosati, the premier provider of legal services to technology, life sciences, and growth enterprises worldwide, today announced that Judge Sidney Harris has joined the firm as Of Counsel in its intellectual property litigation practice. Having served as an Administrative Law Judge at the U.S. International Trade Commission (ITC) since 1984, Judge Harris's practice will focus on intellectual property litigation, with an emphasis on cases involving the ITC.

"Understanding patent litigation in the U.S. International Trade Commission is an increasingly important challenge for both domestic and foreign companies," said partner Mike Ladra. "Given his more than two decades of experience with the ITC, Judge Harris adds unparalleled expertise and our clients will benefit from his knowledge and understanding of the agency. We are pleased to welcome him to the firm."

Prior to joining Wilson Sonsini Goodrich & Rosati, Judge Harris handled more than 120 cases while serving at the ITC. He presided over more than 50 patent trials involving a wide variety of subject matter, including various aspects of computer systems and peripherals, computer chip technology, manufacturing, and packaging. He also issued rulings in a number of significant biotechnology cases, including an early case involving a leading biotech company and the cloning of a hormone that helps the body produce red blood cells. His ruling played an influential role in changing U.S. Patent and Trademark Office policy towards patents on cloning-related substances.

Before serving at the ITC, Judge Harris was a partner at Arent, Fox, Kintner, Plotkin & Kahn in Washington, D.C., focusing on antitrust counseling and litigation. He also practiced at Obermeyer, Rebman, Maxwell & Hippel and Haight, Gardner, Poor & Havens. Earlier in his career, Judge Harris was an attorney at the Department of Justice in the antitrust and alien property divisions. He received his LL.M. and J.D. degrees from George Washington University Law School and earned a B.B.A. from the City College of New York.

Judge Harris will be based in the firm's Washington, D.C., office.

07-11-2007

Tucker Arensberg Attorney Reappointed to the Mount Lebanon Zoning Hearing Board for Another Three - Year Term
Bruce F. Rudoy, a Shareholder with the law firm Tucker Arensberg, P.C., has been reappointed to the Mount Lebanon Zoning Hearing Board for another three - year term.

The board hears and decides upon appeals to the Mt. Lebanon Zoning Ordinance, including the Zoning District Map, and requests for variances and special exceptions as conferred upon it by law.

Bruce concentrates his practice in the areas of business transactions and general corporate law, securities and corporate finance and estate and trust planning and administration law. Bruce counsels businesses from start-up through every phase of the growth of a business and its transactions, including ownership and management structures, formulation of business plans, corporate governance, contractual and employment matters, compensation and employee benefit matters, real estate matters, financing through traditional lender debt and equity, securities and tax matters, restructure and reorganization, joint ventures and mergers and acquisitions. Bruce has advised businesses in various industries including manufacturing, distribution, wholesale, retail, professional and financial services, technology, energy (oil, gas, alternative fuels), construction and real estate.

Tucker Arensberg is a 60-attorney law firm headquartered in Pittsburgh with an office in Harrisburg. The firm concentrates in general business law practice, banking, insolvency and creditors' rights, estates and trusts, health care, litigation, mergers and acquisitions, technology and intellectual property, environmental, labor and employment, real estate, workers' compensation and school and municipal law.

07-11-2007

Healthcare Group and Four Strasburger Attorneys Recognized by Chambers USA in Leading Lawyers Listing
Strasburger & Price, LLP congratulates its Healthcare group on being recognized for exceptional legal services for the second consecutive year by Chambers USA. This group, consisting of more than 40 attorneys, provides comprehensive services to hospitals, health care facilities, health systems, physicians and other organizations in the healthcare industry. These services include counseling healthcare clients on corporate structure and acquisitions, licensing and credentialing issues, reimbursement, and handling litigation matters ranging from medical malpractice to licensure and medical staff issues.
Strasburger also applauds the four individual attorneys selected as America’s Leading Lawyers for Business. This year, the distinguished list includes attorneys from three of Strasburger's offices practicing in the areas of Healthcare, Appellate and Tax.

Chambers USA launched the 2007 edition on June 15. The list of leading lawyers can currently be found on the Chambers Web site at www.chambersandpartners.com. The following four attorneys received this honor:

William Darling, Health care, Austin Partner, second recognition
Ivan Wood, Health care, Houston Partner
Michael Jung, Appellate, Dallas Partner
Crawford Moorefield, Tax, Houston Partner, third recognition

Chambers USA researches strengths and reputations of U.S. attorneys by conducting a vast range of interviews, including lawyers and their clients. Candidates are selected on the basis of legal submissions, interviews and the Chamber’s resources. This year, Chambers USA conducted 14,000 interviews in order to select America’s leading attorneys. Chambers USA takes into consideration technical legal ability, professional conduct, client service, diligence, commitment and value to the client when selecting candidates.

Chambers and Partners

Chambers and Partners has published world-famous guides for the legal profession since 1969. These legal directories have honor attorneys throughout Europe, the United Kingdom, the United States and globally. The directories provide an in-depth, unbiased look at the legal profession conducted by professional researchers each year.

07-11-2007

Chambers USA 2007 Ranks Lowndes, Drosdick, Doster, Kantor & Reed As One of State's Top Three Leading Firms In Florida Real Estate
The practices and attorneys of Lowndes, Drosdick, Doster, Kantor & Reed have once again been rated at the top of the Chambers USA directory, a London based world-wide guide to the legal profession. Named as one of only three of Florida's very top band real estate firms, and the only one named in Central Florida at this highest level, the full-service firm was praised for its experience. Stated as being "well known for its land use and zoning experience, although its credentials in terms of acquisitions, development and financing are also well documented by clients." Published quotes include, "Lawyers here ensure that every 't' is crossed and each 'i' is dotted." And the firm gains further credit, in the words of a Chambers resource, for "the innumerable times they have expertly navigated us through arduous zoning processes."

Chambers also credits Lowndes, Drosdick, Doster, Kantor & Reed by saying it "has expanded into a firm with experience in every facet of real estate law, noted especially for its work in the hospitality, leisure and retirement industries." Highly ranked individual firm lawyers (listed alphabetically) and their categories, as stated by Chambers, include: Richard Fildes, real estate; Miranda Fitzgerald, real estate (zoning/land use); Hal Kantor, real estate (zoning/land use); Joseph Lane, construction; Nicholas Pope, real estate; Michael Ryan, real estate and Terry Young, Litigation (general commercial).

07-11-2007

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