Monthly Archives: May 2014

ILN Today Post

Venture Capital Investment in the United States

Stradling shareholders Joshua GeffonJeffrey EstesBenedict Kwon, and Michael Brown published in “Venture Capital Investment in the United States: Market and Regulatory Overview”, a Q&A guide to venture capital law in the United States published by PLC Practical Law.

Venture Capital Investment in the United States by Stradling More…

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Non-Competition Agreements: Are They Facing Possible Extinction?

Former employees may be out of sight, but certainly not out of mind. If a former employee of a company is hired by a competitor, the company risks losing more than its trade secrets and confidential information: its goodwill, reputation, and relationships with its customers, clients, and vendors are all at stake. As labour mobility has increased, employers in the United States have increasingly incorporated non-compete agreements into their employment contracts to prevent former employees from trading on the knowledge and relationships created during their employment. 

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White Collar and Government Compliance Alert: Who is a foreign official?

On May 16, 2014, the U.S. Court of Appeals for the 11th Circuit issued the highly anticipated opinion in United States v. Esquenazi.1 In affirming the longest sentences ever imposed under the Foreign Corrupt Practices Act (FCPA), the court held that bribe payments to a foreign state-owned business enterprise that did not perform traditional governmental functions could nonetheless be the basis for criminal liability under the FCPA. The 11th Circuit was the first federal Court of Appeals to decide this issue. The decision gives the Justice Department increased power to bring more aggressive FCPA prosecutions and sets the benchmark for all other FCPA cases going forward. 

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Mandatory Retirement for Law Firm Partners Not Discriminatory

John Michael McCormick became an equity partner at Fasken Martineau DuMoulin LLP (“Faskens”) in 1979.  In the 1980s the equity partners of Faskens voted to adopt a provision in their partnership agreement whereby equity partners were required to retire and divest their ownership shares in the partnership at the end of the year in which they turn 65.  In 2009, when he was 64, Mr. McCormick brought a claim before the British Columbia Human Rights Tribunal (“Tribunal”) alleging that the provision in the partnership agreement constituted age discrimination contrary to the British Columbia Human Rights Code (“Code”).
Faskens applied to have the claim dismissed on the grounds that the complaint was not within the jurisdiction of the Tribunal and that there was no reasonable prospect that that it would succeed.  Faskens argued that McCormick, as an equity partner, was not in the type of workplace relationship covered by the Code. 
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EB-5 Investment Boot Camp

Arnstein & Lehr Miami Partner Ronald Fieldstone spoke on May 14 at the 5th Annual EB-5 Investment Boot Camp, hosted by Mr. Brian Su, CEO Business Group, Inc., at the Hilton Los Angeles/San Gabriel. Mr. Fieldstone participated as a panelist on the topic “Structuring safe and SEC compliant offering documents.” The boot camp was a one-day event presented by Artisan Business Group and elite speakers for new and experienced immigration attorneys, project developers, regional center executives and others interested in attracting EB-5 investors from the People’s Republic of China and Chinese communities around the globe.

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"Abdicating" Trustee Found Liable For Loss of Trust Monies

The Ontario Court of Appeal has held that a trustee, who abdicated her discretion and responsibility by improperly delegating those powers to two other trustees, was jointly and severally liable with the other trustees for trust funds that were wrongfully removed from the trust.  See Penman (Litigation Guardian of) v. Penman 2014 ONCA 83
Mary Lou McGillvray, appealed from the decision of Justice L.B. Roberts of the Ontario Superior Court of Justice to the Ontario Court of Appeal.  Justice Roberts had found Ms. McGillvray jointly and severally liable, together with her two nephews, Randal Penman and Mark Penman, for the sum of $453,048.20 plus interest, on account of trust funds that were wrongfully removed from a trust created by Ms. McGillvray’s late brother and her sister-in-law for the benefit of their grandchildren.  At all relevant times, Ms. McGillvray and her nephew Mark Penman were co-trustees of the trust.  Although he was not named as a co-trustee, Randal Penman was a trustee de son tort of the trust.  Ms. McGillvray was also one of the executors of her deceased brother’s estate.
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George L. Chimento, Gary M. Feldman, Paul L. Feldman, Brian L. Gaudet, and Tamsin R. Kaplan Selected 2014 Chambers USA Leaders in their Field

Chambers USA announced that five Davis Malm attorneys, George L. Chimento (Employee Benefits and Executive Compensation), Gary M. Feldman and Tamsin R. Kaplan (Labor and Employment), Paul L. Feldman (General Commercial Litigation), and Brian L. Gaudet (Tax) have been recognized as leaders in their fields for exceptional work in their respective practice areas.

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McDonald Hopkins Government Strategies Advisory: This Week in Washington — May 23, 2014

On Thursday, the House passed the USA Freedom Act, a bill that is intended to stop the U.S. government’s mass collection of Americans’ phone records. The bill, which has the support of President Obama, passed by a wide bipartisan margin: 303 to 121.

Many privacy advocates, however, are unhappy with the bill, which underwent substantial last minute changes. Critics say the bill contains a number of loopholes and vaguely defined provisions that the government could use to maintain its current spy powers. The measure will now move to the Senate for review, where powerful lawmakers have also noted concerns about the House’s version.

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Ohio Statehouse Update: This Week in Ohio — May 23, 2014

The Senate this week approved House Bill 483, the major portion of Governor John Kasich’s Mid-Biennium Review (MBR) legislation. Prior to the full Senate vote, the Finance Committee added a 700-page omnibus amendment to the proposal that removed many of the appropriations previously included and replaced them with additional tax relief.

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ILN Today Post

Important News from India ‘MODI’FIED POLICIES – A VIBRANT INDIA

As the new Prime Minister (elect) is all set to take charge on 26th May 2014, the expectations are running high. Looking at the overwhelming mandate and a historic win, the people of India have all the right reasons to believe that “achhe din” (good days) are to follow as Mr. Modi swears in as the 14th Prime Minister with a backing of such an astonishing and strongest electoral mandate since 1984. The business confidence has run up as a stable government would surely improve the business environment in this country. The man who introduced Gujarat to the world through his biennial investors’ summit ‘Vibrant Gujarat’ now has the big responsibility to live upto the expectations of the citizens of this country who have shown faith in his potential to turn this nation to a “Vibrant India”. Investors are convinced Modi can move things. More…

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