Mitigating Liability from Employee Use of Technology
June 28, 2007
Employee abuse of employer-provided equipment has always created a potential for liability, but the advent of the computer and the Internet has significantly altered the landscape. What is new about today's electronic tools, and what increases the level of employer exposure, is the fact that these devices enable employees to have instantaneous access to the outside world. The difference between giving an employee a telephone or a computer with Internet access is like the difference between giving a hunter a pea shooter or an AK47. The likelihood of success is much greater with the AK47, but so is the risk of a significant mishap.
Supreme Court Establishes New Standards for Buying Practices
June 28, 2007
Since the 2003-2004 term, the Supreme Court has heard a surprising number of antitrust cases ' nine in all ' reflecting its increasing interest in, and willingness to address, questions that significantly impact the business community. Equally remarkable is the array of issues the Court has addressed in these cases. In the past three years, the Court has heard cases concerning issues ranging from a unilateral refusal to deal with rivals, to pricing decisions by joint ventures to claims of tying involving a patented product. one opinion has been issued so far ' the unanimous decision in <i>Weyerhaeuser Co. v. Ross-Simmons Hardwood Lumber Co.</i>, 127 S. Ct. 1069 (2007). This article discusses that opinion.
The Calm Before the Litigation Storm
June 28, 2007
Lawyers representing enterprises with complex information systems generating and storing vast amounts of data are familiar with the perils of e-Discovery. If this familiarity did not arise before Dec. 1, 2006, it certainly arrived with the e-discovery clarifications and codifications to the Federal Rules of Civil Procedure ('FRCP') that took effect on Dec. 1, 2006. Given the implications of these rules for compliance, it is imperative that businesses accelerate and elevate their planning for how to address every phase of electronic discovery ' identification and preservation, collection, processing, analysis and production. Unfortunately, dealing with these issues is not as simple as shopping for software packages or asking a consultant to apply industry best practices to the company's electronically stored information ('ESI') procedures. This article spells out a rational, comprehensive plan for achieving e-discovery preparation.
Navigating the Fair Credit Reporting Act
June 28, 2007
Employers of all sizes use third-party consumer reporting agencies to conduct background investigations such as credit, criminal, education and employment background checks. Such investigations are labor-intensive, costly and require specialized knowledge (especially if the employer has a multi-state presence). Therefore, a third-party vendor is the natural choice for outsourcing such a task. However, employers should beware that outsourcing the background check process does not automatically insulate the employer from liability when it relies on the information in a report. Using such third party reports places the employer squarely within the myriad of requirements under the Fair Credit Reporting Act ('FCRA'). 15 U.S.C. ' 1681.
Quarterly State Compliance Review
June 28, 2007
This edition of the Quarterly State Compliance Review looks at some amendments to state business entity laws that went into effect during the last three months. It also reviews a recent Delaware Supreme Court decision dealing with the right of public stockholders to bring a direct suit, and a recent Delaware Chancery Court decision dealing with the court's jurisdiction over an LLC member's derivative claim for ejectment.
Compliance Lesson from the Chiquita Case
June 28, 2007
In March of this year, Chiquita Brands agreed to pay a $25 million criminal fine for payments it made to a paramilitary group in Colombia. The payments were made by the Colombian subsidiary of Chiquita in order to protect the company's employees from threatened violence. Unfavorable press coverage emphasized payments by Chiquita to a 'terrorist group' and downplayed the threats made to Chiquita, which prompted it to make the payments in the first place.
Corporate Exposure Under the Alien Tort Claims Act
May 29, 2007
Despite the U.S. Supreme Court's effort to restrict and clarify the Alien Tort Claims Act ('ATCA'), the divergence between judicial interpretations of the law, and the number of ATCA lawsuits continues to grow. Some courts have construed the ATCA narrowly, as the Supreme Court urged, limiting the cases that can be brought. Others have interpreted the Act broadly, recognizing novel claims and theories of liability. Emblematic of that schism are two cases decided last year, one filed in New York involving an energy company's role in oil development in Sudan, and one in California involving Papua New Guinea mining operations. These ATCA cases and others like them are part of a rising wave of high-stakes litigation against corporations and their executive officers, and necessitate especially careful attention by in-house counsel regarding overseas operations.
The Employee Freedom of Choice Act
May 29, 2007
After years of lobbying, the Employee Free Choice Act was introduced in 2003, but did not advance. Similar legislation was proposed again in 2005, co-sponsored by Sen. Edward Kennedy (D-MA) and Rep. George Miller (D-CA). While it did not pass either the House or Senate, it attracted widespread notice by gaining the support of 44 Senators and 215 Representatives (only three short of the 218 House votes required for passage). Predictably, in early February 2007, with the new Democratic Congress now in power, Rep. Miller, in his role as Chairman of the House Education and Labor Committee, reintroduced this proposed legislation (H.R. 800) containing all three items on the labor movement's wish list.
Whistleblowing with a French Twist
May 29, 2007
Last month, we discussed the fact that whistleblowing in France is a rather unwelcome legal obligation. France's total opposition to whistleblowing has softened over time and has been accompanied by a greater understanding and appreciation of its implications. Nevertheless, strong pervasive principles of French law continue to govern this domain. We referred our readers to a recent report on Whistleblowing and Ethical Charters, which was commissioned by the French Minister of State for Employment and Professional Insertion. The Antonmatt'i-Vivien report was aimed at encouraging the analysis and clarification of this grey area of French law. We continue this month with a look at how whistleblowing is implemented in France.
The 2007 Proxy Season
May 29, 2007
On July 26, 2006, the Securities and Exchange Commission ('SEC') formally adopted new executive compensation disclosure requirements under Item 402 of Regulations S-K ('Item 402'). With the ink barely dry, the SEC on Dec. 22, 2006, modified the reporting requirements related to stock options and stock awards on the Summary Compensation Table, the Director Compensation Table and the Grants of Plan Based Award Table (the 'Item 402 Amendment'). The new rules significantly increase the required disclosure for the 2007 proxy season and ensure that there will be plenty of interesting reading for shareholders, executives and regulators.
