Ohio Cannot Discipline D.C. Lawyer Who Has Bankruptcy Practice in Ohio
Oct. 7 –The Ohio Supreme Court Sept. 26 held that its disciplinary authority does not extend to a lawyer who is licensed in another jurisdiction but practices in federal bankruptcy courts in Ohio and has represented Ohio residents in other matters ( Disciplinary Counsel v. Harris, Ohio, No. 2012-1698, 9/26/13).
Insurers Push for Delay in Effective Dates For Tax Treatment of Mixed Straddles
Oct. 4 –Insurers asked the Internal Revenue Service to delay the effective dates for temporary rules on the tax treatment of identified mixed straddle (IMS) transactions.
The industry needs more time to implement plans for recognizing capital gains before the significant capital losses they incurred in the 2008 and 2009 financial crisis expire, PricewaterhouseCoopers LLP and the American Council of Life Insurers said.
Securities Markets Make Contingency Plans in Case of U.S. Default on Debt
Financial markets are preparing for the worst as Capitol Hill remains unable and unwilling to forge a debt limit deal, threatening a first-ever U.S. default.
The Securities Industry and Financial Markets Association (SIFMA) said Oct. 4 that their members have planned, in the case the debt limit is breached, a series of conference calls for the day before a scheduled Treasury security reaches maturity, which could go unpaid.
Bankruptcy Court Must Determine Whether Creditor Acted in Bad Faith for Sanctions
Oct. 4 –The U.S. District Court for the Eastern District of New York Sept. 17 declined to enter a sanctions award against a creditor because the bankruptcy court needs to determine whether the creditor acted in bad faith in violating an order the debtor and creditor entered into regarding the demolition of the debtor’s building or erection of a fence surrounding the debtor’s building (MA Salazar, Inc. v. Inc. Vill. of Atlantic Beach, E.D.N.Y., No. 2:12-cv-03458-ADS, 9/17/13).
Shoe Salesman May Advance ADEA Claims, Court Rules, Citing Pretext and Agency Issues
Oct. 4 –A Connecticut shoe salesman fired in his 60s who was told management wanted a younger sales force and was replaced by a 29-year-old woman can proceed to trial with ADEA and state law age and sex discrimination claims, the U.S. District Court for the District of Connecticut ruled Sept. 30 (Tremalio v. Demand Shoes, LLC, D. Conn., No. 3:12-CV-00357, 9/30/13).
Current, Former Members Call For Sweeping Review of SEC’s Reg NMS
Securities and Exchange Commissioner Daniel Gallagher and former SEC member Paul Atkins Oct. 3 called for a comprehensive re-examination of the commission’s Regulation NMS–National Market System–a set of market structure rules adopted in 2005.
“I think it’s a prime candidate for retrospective review,” Gallagher told an industry gathering. The SEC should look at the regulation “holistically,” and use empirical data to determine its impact and whether changes are necessary.
Cert Petition in $593M Patent Case Faults Federal Circuit Claim Construction
A petition for writ of certiorari was filed in Saffran v. Johnson & Johnson ( U.S., No. 13-405, review sought 10/1/13), appealing a claim construction reversal by the U.S. Court of Appeals for the Federal Circuit that overturned a $593 million award for stent patent infringement. Saffran v. Johnson & Johnson, 712 F.3d 549, 2013 BL 92083, 106 U.S.P.Q.2d 1274 (Fed. Cir. 2013) .
Hanmi Can Launch 505(b)(2) Nexium Product While Appeal Proceeds, Federal Circuit Says
In a loss for AstraZeneca AB, a federal appeals court Sept. 30 vacated a temporary injunction order that barred Hamni USA Inc. from entering the market with a version of AstraZeneca’s popular heartburn treatment Nexium (AstraZeneca AB v. Hanmi USA, Inc., Fed. Cir., No. 2013-1490, 9/30/13).
In a Sept. 30 nonprecedential order, the U.S. Court of Appeals for the Federal Circuit said Hanmi could launch its esomeprazole strontium pharmaceutical product while AstraZeneca pursues its appeal.
Businesses Need More IT Integration Of Tax, Finance Departments, Practitioners Say
Companies seeking to streamline operations due to budget constraints or preparing to implement new tax regulations, such as the recently issued final tangible property rules, should strive for greater technological integration between tax and finance departments, practitioners said recently.
“The tax department cannot be off to the side and separated” from a company’s finance and information technology departments, Michael Burak, U.S. and Global Industrial Products Tax leader at PricewaterhouseCoopers LLP, told Bloomberg BNA Oct. 2.
Federal Workers Would Receive Back Pay For Shutdown Period Under New Measure
About 800,000 federal civilian employees who have been told not to report to work because of the partial government shutdown that began Oct. 1 would receive retroactive pay for the duration of the shutdown under legislation introduced in the House Sept. 30 and the Senate Oct. 1.
Detroit Emergency Manager Proposes Pension Freeze, Defined Contribution Plan
City of Detroit employees with fewer than 10 years on the job would have their pension benefits frozen and be moved to a defined-contribution plan effective Jan. 1, 2014, under a proposal made Sept. 26 by Kevyn Orr, the city’s emergency manager.
Workers vested in the General Retirement System of the City of Detroit — those who have worked for Detroit for 10 years or more — would have their benefits frozen at levels based on years of benefit service and average final compensation as of Dec. 31, when the plans would be frozen. New employees would go directly into the new plan.
Ex-KPMG Partner Agrees to SEC Bar
Former KPMG LLP audit partner Scott London, who pleaded guilty earlier this year to insider trading charges, agreed Sept. 27 to be barred from practicing as an accountant before the Securities and Exchange Commission (In re London, SEC, Admin. Proc. File No. 3-15530, 9/27/13).
CFTC Issues Final Order On Operations During Shutdown
The Commodity Futures Trading Commission issued a final order Sept. 30 stating that it will continue to process, review and act on certain filing obligations in the event of a government shutdown Oct. 1.
Those filings include financial reports of futures commission merchants, introducing brokers and retail foreign exchange dealers, risk-assessment reports; reports of accountants; capital requirements filings; current books and records filings; clearinghouse reports and emergency rule certifications.
Bankruptcy Court Has Jurisdiction to Reopen Ch. 11 to Consider Plan’s Tax Consequences
The U.S. Court of Appeals for the Ninth Circuit Sept. 10 held that a bankruptcy court had jurisdiction to reopen a Chapter 11 bankruptcy proceeding to consider the tax consequences of the reorganization (Wilshire Courtyard v. Cal. Franchise Tax Bd. (In re Wilshire Courtyard), 9th Cir., No. 11-60065, 9/10/13).
Reversing the judgment of the Bankruptcy Appellate Panel for the Ninth Circuit, Judge Richard A. Paez remanded the case to the BAP to determine in the first instance whether the bankruptcy court’s answer to the question of the character of the core transaction gave due consideration to the “economic realities” of the transaction as structured under the Chapter 11 plan and confirmation order.
United Airlines Reaches Tentative Accord With IAM for 28,000 Represented Employees
United Airlines and the International Association of Machinists have reached three tentative agreements promising labor peace for 28,000 airline employees through the start of 2018, company and union sources announced Sept. 26.
The three agreements, reached with the assistance of federal mediators, would establish wage and benefits terms for United employees in the classifications of fleet service, public contact/passenger service and storekeeper. The agreements would cover all company employees in those categories working for United and its Continental Airlines, Continental Micronesia and MileagePlus subsidiaries.
IRS Taking on Smaller Criminal Employment Tax Cases, DOJ Official, Practitioners Say
The Internal Revenue Service is increasingly taking on smaller criminal employment tax cases, tax practitioners and a Department of Justice official said during a panel discussion at the American Bar Association Sections of Taxation and Real Property Fall CLE Meeting in San Francisco.
“We are seeing these cases in some of the smaller dollar amounts lately, and I think part of the reason why is that that’s where you sometimes have some of the more egregious conduct with these small business owners, as opposed to larger entities who for the most part are maybe going to make more of an effort to do things right,” Sarah Wirskye of Meadows Collier Reed Cousins Crouch& Ungerman, LLP said at the panel discussion Sept. 21.
No Inequitable Conduct Using Standard PTO Form for Late Patent Maintenance Payment
Applying Therasense inequitable conduct standards to the question of a failure to pay patent maintenance fees led to a divided decision Sept. 24 by the U.S. Court of Appeals for the Federal Circuit (Network Signatures, Inc. v. State Farm Mut. Auto. Ins. Co., Fed. Cir., No. 2012-1492, 9/24/13).
Reversing summary judgment of unenforceability, the majority held that using a standard form supplied by the Patent and Trademark Office without explanation for why the payment was late was adequate to negate the requirements for meeting the high materiality and intent thresholds. It effectively left “matters unrelated to the substantive criteria of patentability” to the discretion of the PTO.
JPMorgan to Pay Fine, Refund Customers In $389 Million Credit Card Settlement
JPMorgan Chase & Co. will pay $80 million in penalties and set aside an estimated $309 million for refunds to credit card customers who were unfairly billed for card “add-on-products” they did not receive, federal banking regulators said Sept. 19.
The Office of the Comptroller of the Currency (OCC) and the Consumer Financial Protection Bureau (CFPB) issued separate but related consent orders with Chase Bank USA, N.A. and JPMorgan Chase Bank, N.A., over the marketing and sale of identity-theft protection and fraud protection services between 2005 and 2012.
Court Says Lack of Comparator Evidence Sinks Nurse’s Pregnancy, Sex Bias Claims
A part-time worker at a Miami hospital whose hours decreased in the months following her return from pregnancy leave and who was mistakenly fired based on a clerical error failed to present comparator or other evidence showing that the actions were discriminatory, a federal district court in Florida ruled Sept. 23 (Claude-Morency v. Univ. of Miami, S.D. Fla., No. 1:12-cv-21967, 9/23/13).
Marie Claude-Morency failed to show that other per diem workers at the University of Miami Hospital’s behavioral health department didn’t also have their hours cut over the three-month period in which a supposed “slow down” left her working only two shifts, the U.S. District Court for the Southern District of Florida found.
Applying Del. Law, Cal. Court Affirms Dismissal of Jacobs ‘Say-on-Pay’ Suit
Sept. 19 –The California Court of Appeal Sept. 17 affirmed the dismissal of a consolidated shareholder derivative lawsuit alleging that Jacobs Engineering Group Inc.’s(JEC) board violated its fiduciary duties by improperly increasing executive compensation in the face of poor company performance, and without shareholders’ consent (Charter Twp. of Clinton Police & Fire Ret. Sys. v. Martin , 2013 [...]