HHR News

Hughes Hubbard Represents Fortune Tobacco in Joint Venture with Philip Morris

Hughes Hubbard represented Fortune Tobacco Corporation, the largest tobacco company in the Philippines, in a joint venture with the Philippines subsidiary of Philip Morris International. The economic interests in the new company, PMFTC, are held 50/50 by FTC and PMI. The deal closed on February 25.

The Philippines is one of the largest global cigarette markets, with an estimated 2009 volume of 85 billion cigarettes, and PMFTC is expected to benefit from the integration of manufacturing, procurement and distribution of tobacco products in the territory. The Chairman of PMFTC will be Lucio Tan, the Chairman of FTC, and PMI will manage the day-to-day operations of the venture. The deal was covered by numerous publications including The Wall Street Journal, the Financial Times and The Deal, which named the HHR attorneys involved.

FTC is one of the five largest privately owned cigarette companies in the world and is controlled by Tan. Tan is a self made billionaire and one of the captains of industry in the Philippines, with interests in tobacco, banking, real estate, airlines, hotels and other businesses.

PMI is the leading international tobacco company, with seven of the world’s top 15 brands, including Marlboro, the number one cigarette brand worldwide.

The Hughes Hubbard team representing Fortune includes Ken Lefkowitz, Avner Ben-Gera, Perla Kuhn, Steve Greene, Dan Schnapp, John Townsend, Wayne Josel, Natasha Reed, Matt Syrkin and Justin Director.

Candace K. Beinecke, Chair of Hughes Hubbard, Re-Elected Vice Chair of the Partnership for New York City

Candace K. Beinecke, Chair of Hughes Hubbard, Re-Elected Vice Chair of the Partnership for New York City; She Joins William Lauder, Rupert Murdoch and John Paulson on the Partnership Board. Read the Partnership’s full press release here.

Bear Stearns Hedge Fund Managers Not Guilty

"The verdict is a big win for Cioffi's defense lawyers at Williams & Connolly and Hughes Hubbard & Reed."  - The Am Law Daily

 

Click Here for Full Article

HHR Helps End Bahamas TV Piracy

A decade ago, the Bahamas enacted a compulsory licensing scheme enabling Cable Bahamas, a government-owned monopoly, to downlink, de-encrypt, distribute and sell satellite signals of U.S. pay television without authorization of the copyright owners of the signals’ content, such as HBO. For nine and a half years, U.S. pay television programmers from Disney to Max Prime lobbied and fought through three Washington trade associations to get the U.S. Government to stop this piracy in the Bahamas, as it was spreading elsewhere in the Caribbean and Central and South America. Nothing worked.

In March 2009, the firm’s client HBO Latin America decided to take the lead and asked Ken Lefkowitz if Hughes Hubbard could help. An introduction was made to Ken Pierce, the retention was sealed at the firm’s annual Latin America conference in Miami, and the work commenced in May. In less than five months, the Bahamas has completely capitulated and repealed the compulsory license, effective October 1, an outcome highlighted in U.S. Trade Representative (U.S.T.R.) Ambassador Ron Kirk’s September 30 speech on the Obama Administration’s decision to make IP protection a centerpiece of its trade policy.

This was a classic “inside-the-beltway” Washington project, as Pierce put it. First, Pierce and Marsha McIntyre lined up HBO Latin America’s congressional support among the Florida delegation (HBO Latin America’s headquarters and operations facilities are in Florida). Summer associate Valerie Sorenson was tasked to nail down the treaty research. Then, a routine U.S. International Trade Commission fact-finding investigation was turned into a major proceeding with the spotlight turned on the Bahamian piracy by Pierce and Victor Mroczka, timed to coincide with efforts assisted by Andres Castrillon to block pending Cable Bahamas’ transfer of control applications at the Federal Communications Commission. The Hughes Hubbard team next steered all this pressure through high-level U.S.T.R. contacts, in the guise of a standard U.S.T.R. annual report. It culminated with an August meeting in Nassau arranged by the U.S. Embassy and attended by Bahamian government ministers, president and counsel to Cable Bahamas, high level U.S.T.R. officials, congressional staff, Pierce and representatives of HBO Latin America, ESPN, and Time Warner. A forceful message was delivered that either the compulsory license would be repealed or the Bahamas would lose all of its U.S. preferential duty rates and have its application to join the WTO blocked. It also faced the prospect of a long wait for the processing of its FCC application. Within weeks the law was repealed. The firm is now working on other IP trade protection issues elsewhere in Latin America, starting with Argentina.

Ken Pierce, Victor Mroczka, Andres Castrillon, Marsha McIntyre and summer associate Valerie Sorenson handled the matter for HBO Latin America.

FDIC Win in BankUnited Case

Hughes Hubbard won a victory for the FDIC when a U.S. Bankruptcy Judge blocked the creditors’ committee of the holding company of BankUnited from investigating broad claims relating to the failure of the bank.

The firm convinced Judge Laurel Isicoff that claims related to the failure of the bank were exclusively the FDIC’s. In her decision, Isicoff stated that the holding company’s creditors’ committee could only investigate a “sliver” of claims relating to misconduct of the officers and directors of the holding company, not BankUnited.

BankUnited was put into receivership by the FDIC on May 21. It is the largest bank failure of 2009 and one of the costliest failures of the financial crisis. It is estimated it will cost the FDIC $4.9 billion. The Wall Street Journal called BankUnited a “high-profile casualty of the banking crisis,” observing in a May 22 article: “Its problems stemmed largely from its forays into risky housing loans. The bank, founded in 1984, specialized in an exotic type of mortgage made to people living outside the U.S. who wanted to buy property in Florida.”

The FDIC sold the company’s banking operations to a private-equity team headed by John Kanas, the former head of North Fork Bank.

Dennis Klein, Ross Paolino, William Sanchez, Aviva Wernick and law clerk Dania Ayoubia represented the FDIC.

Q&A with Amanda DeBusk


The September 30 edition of Law360.com features “A Q&A With Hughes Hubbard’s Amanda DeBusk,” as part of its ongoing series of interviews with practice-area chairs. The interview covers such subjects as what attracted DeBusk to International Trade, how she expects the practice to evolve and what advice she would give to a young lawyer entering the field.

 

Nortel's $915M Deal with Avaya

Hughes Hubbard represented the administrators for Nortel Networks Europe, Middle East and Africa in the liquidation and assets sale of Nortel Networks Corp.’s Enterprise Solutions business to Avaya Inc. The $915 million deal was approved at a hearing today.

Nortel, the Canadian telecommunications equipment maker operating under Chapter 11 protection, agreed to sell its enterprise network business, its second largest division, to Avaya after a three-day auction that began on Friday. The sale price was nearly double the offer Avaya initially made.

The deal includes $15 million for an employee retention program. Under the terms, Avaya, a New Jersey-based telecommunications company, will also acquire shares of Nortel Government Solutions Inc. and DiamondWare, Ltd.

Avaya, a privately held company owned by affiliates of Silver Lake and TPG Partners, makes network equipment such as routers, internet protocol phones, switches and related security products for large companies, covering the same ground as Enterprise Solutions. According to the Financial Times, one of numerous outlets to cover the transaction, Avaya “had previously made a $475m ‘stalking horse’ offer for the enterprise unit, Nortel’s second-largest by revenues.”

HHR Wins Pro Bono Award

Hughes Hubbard will receive The Legal Aid Society’s 2009 Pro Bono Publico Law Firm Award for “outstanding service to The Legal Aid Society and its clients.” The Honorable Jonathan Lippman, Chief Judge of the State of New York, will present the award — along with six others recognizing individual HHR attorneys — in a ceremony on October 26 at Skadden, Arps, Slate, Meagher & Flom.

The Award recognizes the firm’s work on the Society’s Immigration Hotline, as well as a number of other important services. It is also an acknowledgement of the firm’s longstanding support of the Society, a relationship that dates back to the tenure of Charles Evans Hughes as President of the Society and includes Chuck Scherer’s current role as a Director.

Sarah Cave, Tina Elfenbein and Heather Koffman are being honored for their work in preventing the deportation of an HIV-positive Haitian man. They successfully persuaded an Immigration Court Judge that their client was protected by both the Immigration and Nationality Act and the Convention Against Torture, backing up their claim with interviews with doctors who work with HIV patients in Haiti. The Legal Aid Society served as co-counsel on the case.

Cave and Carl Mills will be honored for their work in preventing the deportation of another client, a long time supporter of former Haitian president Jean-Bertrand Aristide, who fled his native Haiti after a brutal machete attack left him missing an ear, several fingers, and with a leg amputated above the knee. After several years in detention at the Guantanamo Bay Naval Base, where he was diagnosed with HIV, he was ordered deported to Haiti. Cave and Mills convinced an Immigration Judge that if deported their client would face almost certain torture and death due to his physical ailments and political views.

Sam McCoubrey and Parker Hutchinson, a rising associate, will be recognized for securing Social Security benefits for a 51-year-old woman from the Bronx who suffers from chronic asthma, hypertension, diabetes and other ailments. The client had been receiving disability benefits for many years when the SSA determined in 2005 that she had been capable of working for some time and discontinued her benefits. When her request that her benefits be reinstated was denied, she turned to Legal Aid, which referred her to Hughes Hubbard. On August 25, 2008, an Administrative Law Judge determined that the client was unable to perform any job in the workforce and granted her request for disability benefits.

In addition, former HHR attorneys Beatriz Biscardi, Allison Bowles and Jaime Hernandez will also be honored for their efforts in these matters.

The annual Pro Bono Publico Awards recognize the work of volunteer lawyers, law firms, corporations and other professionals who participate in the Society’s pro bono program by providing exceptional legal services to low-income New Yorkers.

$390M Continental Offering

Hughes Hubbard recently represented Continental Airlines in an approximately $390-million offering of pass-through certificates.

Proceeds from the offering will be used to finance 12 currently owned Boeing aircraft and five new Boeing aircraft from among seven Boeing aircraft scheduled to be delivered from July 2009 through September 2009. Prior to financing the aircraft, the proceeds will be held in escrow.

The pass-through certificates were issued in a single class and enhanced by a liquidity facility provided by Goldman Sachs Bank USA. The Bank of New York Mellon acted as depositary for the escrowed funds. Morgan Stanley, Goldman Sachs and Calyon acted as underwriters.

Continental Airlines is the world’s fifth largest airline and is celebrating its 75th anniversary this year. Continental, together with Continental Express and Continental Connection, has more than 2,750 daily departures throughout the Americas, Europe and Asia, serving 133 domestic and 132 international destinations. For the sixth consecutive year, FORTUNE magazine named Continental the “No. 1 World’s Most Admired Airline” on its 2009 list of World’s Most Admired Companies.

John Hoyns, Andy Braiterman, Jan Joosten, George Douvas, Kristy Chattaway and paralegal Alexandra Hernandez represented Continental.

Chambers Rankings

Thirty-two Hughes Hubbard lawyers and eight practice areas are ranked in Chambers USA 2009, which was released last week and is available online at www.chambersandpartners.co.uk. That makes nine more Hughes Hubbard attorneys and one more practice area than were included in last year’s edition.


Additionally, Chambers Europe 2009 ranks the firm’s Paris office in Dispute Resolution: International Arbitration and the attorneys Axel Baum, Marc Henry and José Rosell.


The following are excerpts from Chambers about each of Hughes Hubbard’s ranked practice areas:


Bankruptcy/Restructuring


“This firm expanded its bankruptcy and restructuring practice significantly with the acquisition of bankruptcy, creditors’ rights and finance firm Luskin, Stern & Eisler LLP in September 2008. All name partners in the New York boutique have joined the ranks of Hughes Hubbard, along with four associates.”


Corporate/M&A


The firm receives praise for “‘taking the stress out of deals by picking out the important points and not wasting time.’ The corporate group has seen particular activity in the media and publishing sectors, representing the likes of Cablevision Systems - for which it helped acquire Newsday from The Tribune - and MediaNews Group.”


International Arbitration


“This group has become a major force in international arbitration, and boasts a 20-partner U.S. offering with a substantial showing in New York and a presence in Washington, D.C., Los Angeles and Miami. The team functions as part of a larger worldwide group, and handles commercial arbitration cases in Europe and Latin America, often in the construction, energy and telecom sectors. Highlights include obtaining an award in favor of Dun & Bradstreet and Moody’s in an arbitration under AAA International Rules, which concerned the allocation of responsibility for legacy tax liabilities. The team also handles investor-state arbitration.”


Latin America


New York


“The New York office is one of the twin focal points of Hughes Hubbard & Reed’s Latin America practice group, with Miami being the other. Clients greatly benefit from this dual presence, and highlight the high quality of the lawyers. The firm recently assisted Argentinean dairy company SanCor with its $140 million debt restructuring.”


Florida


“This dynamic and compact outfit continues to make waves in the market, particularly on the high-end side of export finance, banking and M&A work in Latin America. The ‘truly outstanding’ Miami experts operate as part of a firm-wide dedicated group, working alongside their New York-based colleagues.”


Litigation: Securities


“This well-prepared and thorough group of litigators handles securities-related class actions, shareholder derivative litigation, investigations and criminal prosecutions. It acts for many clients in the accounting industry, including three of the Big Four accounting firms. The team has expanded, recently welcoming former Thacher Proffitt partner Kenneth Lee and an associate from Cravath. Its highlights include acting for French-based energy, marine and rail transportation company Alstom, along with current and former senior executives and board members, in a federal securities class action.”


Native American


“This team acts on financing, gaming and taxation matters for both tribal clients and organizations which work with tribes. It represented Merrill Lynch in a $165 million syndicated construction loan for a new Poarch Band of Creek Indians casino.”


Products Liability


“This team’s effective defense of Merck in the Vioxx litigation attracted considerable market praise…The practice continues to assist Merck in various matters, including the multidistrict Fosamax dispute and the Vytorin litigation.”


Transportation: Aviation: Finance


A strong reputation in finance and tax underpins the aviation finance team at Hughes Hubbard. The majority of mandates come from airlines such as Republic Airlines and Continental Airlines, with the team representing the latter in its $129 million loan facility to finance PDP for Boeing under its aircraft purchase agreement with Continental.


The following are excerpts from Chambers about the 35 HHR attorneys in the USA and Europe guides:


Marshall Babson…has long been recognized as one of the dons of the labor relations world. As a former member of the NLRB his experience is highly prized by clients. He has been representing CBS in ongoing collective bargaining negotiations with its news writers.”


“‘Distinguished arbitrator Axel Baum handles cases that cover a large number of industries and commercial transactions.”


Candace Krugman Beinecke heads the [firm] and provides ongoing advice to transportation and energy infrastructure company Alstom.”


“‘You definitely want Andrew Braiterman on your team, interviewees say…‘Tax law can be extremely complicated and technical, but he’s never afraid of rolling up his sleeves and getting in there to find an answer,’ sources comment.”


Charles Cohen and James Fitzpatrick’s profiles as strong products liability practitioners have risen following their involvement in the Vioxx case.”


Amanda DeBusk chairs the international trade and customs group, and is held in extremely high regard by peers for her first-class work in export controls and sanctions. Clients agree, revealing: ‘When we knew we had to get the best, we turned to her.’”


“‘One of the finest finance lawyers in town whom everyone wants to work with,’ Amy Dulin is the most visible partner in Latin American deals. She recently advised ABN AMRO, Calyon, Citi, Bank of Tokyo-Mitsubishi and WestLB as administrative agents on six separate syndicated facilities with a total value in excess of $3 billion, to be used for the corporate restructuring of Votorantim, the Brazilian industrial conglomerate.”


John Fellas is considered to be an excellent practitioner.”


Richard Friedman chairs the Los Angeles real estate department at Hughes Hubbard and receives strong client praise for his extensive experience in real estate matters, including leasing, purchase and sale agreements, financing agreements and issues involving Indian law. He specializes in work concerning hotels, casinos and shopping centers. ‘When you come to the table with Rick you always have the best hand in the pack.’”


“James Giddens is recommended as an extremely responsive and efficient lawyer who stays on top of issues.’”


“Clients ‘never cease to be amazed’ by the firm’s international practice co-chair, Steven Hammond. Serving as both counsel and arbitrator, he has the experience to manage all aspects of major disputes.’”


“The versatile Marc Henry is an expert in banking and finance and corporate matters and is praised for his talent in arbitration. ‘He’s a great fighter, but also knows when to let go,’ says an admiring commentator.”


John Hoyns has deep experience of the aviation sector, having represented banks, equity investors and airlines. Sources emphasize his impressive ability to find creative solutions to complex finance problems.”


Norman Kleinberg has a central role in the [Fosamax] matter. ‘His balanced, calm approach to disputes is especially helpful in emotive cases, sources observe.”


James Kobak is ‘the first person I call - he is exceedingly levelheaded, practical, and has a tremendous analytical ability,’ reveals one impressed client…Kobak further impresses by being able to adjust his advice based on the client’s risk. Experienced in matters relating to the pharmaceutical industry, he was part of the team advising Bristol-Myers Squibb and Merck on the FTC’s information requests regarding ‘authorized generics’ transactions.”


“The highly respected Theodore Latty is the Los Angeles practice leader and the chair of the firm's gaming law department.”


Ken Lefkowitz, who worked on the Cablevision deals, is commended by sources as a ‘tenacious lawyer, but one who knows when to compromise.’”


“Tenacious and skilled litigator Edward Little heads the white-collar crime and government investigations practice. Clients find him extremely responsive and effective. He is representing Ralph Cioffi, the former senior portfolio manager of the two Bear Stearns hedge funds that failed in the summer of 2007, in parallel federal criminal and SEC enforcement proceedings.”


Michael Luskin focuses on the litigious side of bankruptcy and insolvency work. Clients laud him as ‘a pragmatic attorney who’s not given to posturing. He is good at cutting through the issues and distilling them into simple concepts.’”


“Detail-oriented and creative, co-head of the group William Maguire is recommended for SEC investigations.”


“Sources largely attribute the [Vioxx] dispute’s successful settlement to Theodore Mayer, whose ‘critical-thinking skills translate into innovative solutions.’”


“Practice leader Steven McSloy is ‘an undisputed leader in the field.’ In addition to working for Merrill Lynch, he has acted as gaming counsel for the Navajo Nation.”


James Modlin advised MediaNews on the acquisition of News Times, the Santa Cruz Sentinel and The Daily Breeze, consolidating his reputation as a go-to attorney for complex transactions involving the newspaper industry. “


Christopher Paparella heads the firm’s construction practice and often advises on international arbitration matters involving upstream and downstream oil and gas projects.”


Ken Pierce brings “his much-praised trade remedies expertise to the team.”


Robert Reznick is co-chair of Hughes Hubbard’s pharmaceutical and healthcare industry practice group, and he also leads the firm’s antitrust practice in Washington, D.C. Reznick has principal experience of acting for brand-name pharmaceuticals and medical devices, where he often takes leadership roles in multidefendant price-fixing cases. Sources distinguish him further on account of his ‘crystal-clear judgment,’ which he utilized acting for Merck in Clayworth v. Pfizer, a case against more than a dozen major drug companies.”


José Rosell, whose ‘professionalism and top skills’ are lauded by peers, heads the Paris team. He acts as counsel for states and banks but mainly sits as arbitrator for energy, finance, telecommunications and investment-related disputes.”


Charles Samuelson is a young partner making an impact in the New York corporate world and beyond. He worked with Lefkowitz on the formation by the founder of JetBlue of a new low-cost Brazilian airline.”


Clark Siegel was a highly respected member of Irell & Manella, and his recent move to Hughes Hubbard is a major boost to the firm. An entertainment and M&A expert, his high-profile clients have included a reality TV production company.”


Richard Stern is ‘a superb transactional lawyer’ who is extraordinarily skilled at managing large bank groups with competing and conflicting interests. He is cool, calm, pragmatic and focused on getting things done without compromising standards,’ praise market sources.”


Nicolas Swerdloff is managing partner of the Miami office. According to clients he is a brilliant lawyer who always makes himself available and who ‘never wastes time but gets straight to the heart of a matter.’ He specializes in complex financial and commercial litigation.”


“Practice chair John Townsend…sits firmly among the top-ranked international arbitrators for his work as counsel and as an arbitrator. Peers regard him not only as ‘an excellent advocate and a person of great knowledge,’ but also ‘a lawyer's lawyer, who knows the law of arbitration better than virtually anyone else.’ He works on a mixture of commercial and investor treaty matters.”


Eduardo Vidal led the team on this deal and is ‘a wonderful and well-reputed expert.’”


“Based in the Miami office, William Weber is particularly well regarded in the hospitality industry for his work on transactions and financings, as well as construction and joint ventures.”

HHR Represents Ontario, Canada in Auto Bailout

Hughes Hubbard is representing the Province of Ontario, Canada, in the workouts and bankruptcies, or possible bankruptcies, of Chrysler and GM in the U.S. and Canada.

The Canadian federal government and the Province of Ontario contributed 20 percent to the U.S. Treasury’s bailout of Chrysler in the form of loans made before Chrysler’s bankruptcy filing and as a DIP loan upon Chrysler’s bankruptcy filing on May 1.

Chrysler is to be sold to a new entity to be owned by Fiat, the UAW and the U.S., Canadian and Ontario governments; a hearing to approve the sale is scheduled for the end of May. In the meantime, the three governments have been engaged in ongoing negotiations with the U.S. Treasury, GM, the unions, bondholders and other key creditors in an effort to fashion an out-of-court bailout package and to plan for bankruptcy filings in the U.S. and Canada. HHR has been assisting Ontario’s Ministry of Finance and Ministry of Economic Development & Trade with both the out-of-court negotiations and the bankruptcy planning.

Amy Dulin is heading the document comment and review process, and Michael Luskin is dealing with bankruptcy planning and the Chrysler proceedings. Richard Favata, Celeste Pozo and Dustin Smith have been assisting. The matter came to the firm through alumnus Mark Warner, a former HHR counsel who is now legal director for the Ministry of Economic Development & Trade, who contacted Jim Kobak about the work.

Platinum Buys Major Daily

The AmLaw Daily recently reported that a Hughes Hubbard team led by Ray LaSoya represented Platinum Equity in a high-profile, definitive agreement to acquire The San Diego Union-Tribune from its parent company Copley Press, Inc. “Hughes Hubbard is no stranger to high-profile media deals,” AmLaw Daily observed, referencing the firm’s Media Practice’s work in the buy-back of The New Republic and Cablevision’s acquisition of Newsday, as well as for Denver-based MediaNews Group and Knight-Ridder before it was acquired by The McClatchy Company.

PwC Win in Southern District

A U.S. District Court Judge in the Southern District of New York granted a motion by client PricewaterhouseCoopers LLP seeking sanctions against its adversary in a securities-fraud suit for violating court orders during discovery.

U.S. Magistrate Judge Henry Pitman found that plaintiff Kingsway Financial Services, Inc. violated two of his orders by repeatedly providing misleading and improper responses to PwC’s interrogatory requesting that plaintiffs identify the person employed by Kingsway “with the most knowledge regarding the amount of damages and computation thereof,” and as a result caused PwC to take an unnecessary deposition.

Kingsway’s suit alleges that PwC, along with the former president of the company that Kingsway purchased, American Country Holdings, Inc., violated SEC Rule 10b-5 and committed common law fraud by causing American Country’s stock price to be inflated prior to the acquisition.

In granting PwC’s motion, Judge Pitman ordered the plaintiff to pay PwC’s attorney’s fees and costs incurred in the taking of the deposition and the cost of the motion for sanctions.

Bill Maguire, Jeff Greilsheimer, Ken Katz, David Sanson, Allison Bowles, and Sam McCoubrey represented PwC in the matter.

MTVN's Netflix Deal

Hughes Hubbard represented MTV Networks, a division of Viacom International, Inc., in a deal with Netflix Inc. for the distribution of MTVN- owned and -controlled programming through Netflix’s online video subscription service available at Netflix.com.

Netflix’s subscription entertainment service gives users access to a variety of video content, including motion pictures, television episodes and other digital-entertainment products in multiple formats.

Netflix’s online service offers movies and television content on a commercial-free basis to be watched instantly through its “Watch It Now” feature on a user’s PC, or by utilizing an Internet connection via certain Netflix-enabled devices, including a television, set-top box, Blu-ray player and even game consoles such as X-Box 360.

Netflix will now be able to offer its end-users access to certain television episodes of MTV Networks’ most popular shows, including South Park, Sponge Bob Square Pants and Dora the Explorer. Under the terms of the Agreement, Netflix will pay MTVN over $3 million in content and brand license fees for an initial amount of content. The parties hope to make additional MTVN content available via the Netflix service as the relationship progresses.

Dan Schnapp and Hali Resnick represented MTV Networks in the transaction.

MTVN's Sling Media Deal

Hughes Hubbard represented MTV Networks, a division of Viacom International, Inc., in a deal with Sling Media for the distribution of both short- and long-form MTVN owned and controlled programming through Sling’s free, advertising-supported online video portal, Sling.com.

Sling’s video portal gives users access to a premier library of content from top TV networks, movie studios, sports leagues and websites. Sling will now be able to offer its end users free access to certain video clips and television episodes of MTV Networks’ most popular shows, including all broadcast episodes of The Daily Show and The Colbert Report, as well as some content from BET and long-form theatrical movies from Paramount (each of which are also owned/controlled by Viacom). This transaction closed simultaneously with Viacom’s deal with EchoStar (which owns Sling Media) to renew cable carriage of MTV, Comedy Central and other well-known Viacom-owned networks.

Sling aggregates television content from services like Hulu as well and other television networks, but is also aggregating video news content from sources such as Reuters and AP. Sling Media is probably best known for its first product, the award-winning Slingbox™, which turns any Internet-connected computer or smartphone into a home television. In addition, Sling.com includes a preview of its web-based Slingplayer software, which allows Slingbox owners to watch live TV directly within its website. 

MTVN will also make certain programming and content available via Sling’s “Clip+Sling” service (still in beta testing phase), which will enable users to share short segments of programming, either live or recorded, with other Slingbox customers and/or all end users via an interactive online portal. 

Dan Schnapp and Hali Resnick represented MTV Networks in the transaction.

Pro Bono Win

Hughes Hubbard has won an appeal on behalf of a pro bono client, a Washington, D.C. mother of six, with the District of Columbia Housing Authority.

The Housing Authority had issued an initial ruling in late August 2007 to terminate her participation in the D.C. Housing Choice Voucher Program, a public assistance program for low-income families. The decision was based on the arrest of one of her children for a juvenile misdemeanor drug offense. Without these benefits, the family of eight would have had to move into a shelter.

In September 2007, the firm wrote a brief appealing the decision on several grounds, including that the juvenile misdemeanor offense was an insufficient basis for termination under the Housing Authority’s own Administrative Plan, which required a felony offense. During the appeal, the client was allowed to continue drawing her benefits. Separately, the firm negotiated the dismissal of an eviction action that had been filed against the client on the same grounds.

Sixteen months after the client’s appeal was submitted (decisions are required by law to be issued within 7 working days), the firm was notified that the Housing Authority had set aside the initial decision to terminate the client’s benefits. The Housing Authority agreed with Hughes Hubbard that the juvenile misdemeanor was insufficient ground to terminate the client’s participation in the Housing Choice Voucher Program, and thus did not need to address the other arguments that had been made. 

Washington Associate Hana Carney handled the matter for the firm.

Pro Bono Win

The firm secured a victory in the New York Court of Appeals for pro bono client the Korean Presbyterian Church of Westchester. The Church was appealing a judgment by the Supreme Court in Westchester County, affirmed by the Appellate Division Second Department, ordering it to pay damages arising from the alleged breach of a land purchase contract.

The case arose from the congregation’s efforts to purchase land so that it could for the first time build a church of its own. The Church became enmeshed in a lawsuit between the owners of the land it was trying to purchase and the owners of the adjacent property. Despite the fact that the Church had never been served with a complaint and was not a party to the underlying lawsuit, the Supreme Court entered what amounted to a summary judgment against it.

The Church retained Hughes Hubbard after an initial, unsuccessful appeal to the Appellate Division. The firm first persuaded the Court of Appeals to grant permission to appeal the case, and then obtained a reversal of the judgment.

Jim Fitzpatrick argued the appeal at the Court of Appeals. George Davidson, Nathan Nahm, Scott Christensen, Lewis Zirogiannis, Carl Mills, Allison Bowles, Jillian Button and Madeleine Selwyn assisted on the briefs and in preparation.

Atari Maker Buys Cryptic

Hughes Hubbard advised videogame developer Cryptic Studios Inc. on the French-law aspects of its acquisition by Atari’s parent company, Infogrames Entertainment.

According to a story that ran in Variety, Infogrames paid $28 million in cash plus up to $48 million in bonuses for Cryptic, makers of such successful multiplayer online games as “City of Heroes” and “City of Villains.” Variety also reported that the acquisition is being financed entirely by a bond issuance.

This acquisition is a critical step in the implementation of Atari’s strategy to become a leading online game developer and publisher. It encompasses all of Cryptic’s proprietary IP—tools, technology and any work in progress. It also integrates all members of the leadership team and employees into Infogrames.

Established in 2000 and headquartered in Los Gatos, California, Cryptic has generated over $100 million in lifetime revenues and up to 180,000 peak subscribers. Cryptic’s revenues for the fiscal year ending June 30, 2008 were $17 million.

The Infogrames group, including the Atari brand, is a global producer, publisher and distributor of interactive entertainment software for all market segments and all interactive game consoles from Microsoft, Nintendo and Sony Computer Entertainment, advanced smartphones, personal computers, web and online. Its games are sold in more than 60 countries through an international distribution network and direct to consumers.

Christopher Mesnooh and Claire Guionnet-Moalic represented Cryptic Studios.

Brooklyn Museum Costume Deal

Hughes Hubbard represented the Brooklyn Museum in a high-profile agreement to transfer its acclaimed costume collection to The Metropolitan Museum of Art. 

Under the deal, the Met will integrate the collection into its own Costume Institute, where it will be known as the “Brooklyn Museum Costume Collection at the Metropolitan Museum of Art.” In addition, the Brooklyn Museum will be able to include the collection in its own exhibitions. Both museums are planning to present exhibitions in 2010 focusing on different portions of the combined collections. The two museums also plan to produce a book presenting highlights of their combined collections and to make images of the objects in the collection available online. 

The Brooklyn Museum Costume Collection dates back to 1903 and includes some 23,500 objects, including what The New York Times, in an article announcing the deal, called a “definitive collection of costumes and patterns by the British-born designer Charles James, a major force in New York fashion in the 1940s and ’50s, and one of the most comprehensive collections of American fashions dating from the mid-19th to the mid-20th century.”

Given the high costs of caring for such a delicate collection, the Brooklyn Museum seldom displayed it over the last two decades. By accessioning the collection, the Met will be able to conserve and display the objects along with those pieces in its renowned Costume Institute. The Brooklyn Museum Costume Collection is expected to greatly enrich the Met’s own collection, which is particularly strong in 20th-century European haute couture.

Dan Weiner and Francesca Lisk represented the Brooklyn Museum.

Win for Chemical Specialties, Inc.

A state court judge in Indiana granted client Chemical Specialties Inc.’s (CSI) motion to dismiss three of the four claims asserted against it.  At the same time, the judge denied the plaintiffs’ motion to amend the complaint.

The plaintiffs, Arthur and Connie McGuire, alleged that they were forced to move into a FEMA trailer because their home was contaminated by the arsenic and chromium used in the chromated copper arsenate (CCA) treated wood deck and other structures. CCA is an EPA-registered liquid wood preservative and insecticide that CSI and other CCA manufacturers sell to companies that treat wood to render it resistant from rot and decay. According to the McGuires, they suffered toxic effects from working with, and burning, CCA treated wood. In their complaint, the McGuires asserted claims for fraud, negligence, products liability and nuisance against three defendants: CSI, another wood treatment company and a lumberyard.

In CSI’s motion to dismiss, the firm argued that, by making the Indiana Products Liability Act the exclusive cause of action for all claims by a user or consumer against a manufacturer, the Indiana Legislature barred products liability claims premised on common law theories such as fraud and negligence. The firm also argued that the nuisance claim should be dismissed because it was being used as a surrogate for a product liability claim. While Indiana courts have permitted nuisance claims against gun manufacturers, courts in other jurisdictions had not done so in cases involving lead paint and asbestos. The Court agreed with the firm’s argument that these other cases were the better rule, and dismissed the nuisance claim. The court also dismissed the fraud and negligence claims because the Indiana Products Liability Act “provides the remedy the state has crafted to address [the plaintiffs’] allegations.”

Representing CSI are Nicolas Swerdloff and Lisa Pisciotta.

LinkedIn Launches in French

Hughes Hubbard represented LinkedIn Corp., the world’s largest professional networking site, in launching LinkedIn in French.

The firm worked closely with LinkedIn’s office of the General Counsel in order to prepare the necessary filings, which had to be submitted to the French Data Protection authorities. In addition, Hughes Hubbard set up a meeting with the French officials in order to present LinkedIn in person to the Data Protection authorities in Paris, and the General Counsel flew in from San Francisco to attend the meeting as well.

The French government approved the launch of the French site in record time — seven days, rather than the two-month period typical for sites that raise privacy issues such as those raised by LinkedIn.

LinkedIn Corp., which has over 30 million members worldwide, launched LinkedIn in French on November 25, 2008, during an opening ceremony in Paris with the Company’s CEO and other officers. The launch was deemed critical to helping the company succeed in France, which is the world’s sixth-largest economy, and where other sites, such as Viadeo, currently have over 2 million members. LinkedIn expects to accelerate its growth in France and other French speaking countries, in line with what the launch of the Spanish language site did for the Company in Spain and in many Latin American countries.

Christopher Mesnooh represented LinkedIn.

Citicorp Deal

Hughes Hubbard represented Citicorp USA, Inc. in refinancing a revolving credit facility as part of the workout of Citicorp loans to Andrews Sport Club, Inc. of New Jersey and one of its affiliates, A.K.K. International L.L.C.

Citicorp, which holds a first mortgage position on the property where Andrews Sport Club operates, significantly improved its secured position as a result of a substantial paydown of its loan by the refinancing lender (The CIT Group/Commercial Services, Inc.). An Intercreditor Agreement was negotiated between Citicorp and the refinancing lender, which took a junior mortgage on the real estate.

Nate Eisler, Tom Furst and Nick Milburn represented Citicorp USA.

Two Employment Wins

Hughes Hubbard scored two significant labor and employment victories. First, Alstom Signaling won an arbitration before Arbitrator Sheila Cole regarding the alleged failure to pay “signing bonuses” to certain Alstom employees in connection with the ratification of a new collective bargaining agreement earlier this year following more than five months of bargaining and a lockout that lasted six weeks.  Arbitrator Cole ruled that none of the employees on whose behalf IUE-CWA, Local 81323 filed the arbitration were entitled to the bonus. Marshall Babson and Fara Tabatabai represented Alstom Signaling.

In the second case, Federal Marine Terminals (FMT), the largest stevedoring company on the Atlantic and Gulf Coasts, successfully defeated an effort by ILA Local 1518 to set aside an arbitration victory by FMT earlier this year. In that case, the union argued that the arbitrator had exceeded his authority and had demonstrated prejudice in upholding the discharge of a union steward. In a carefully reasoned opinion, Judge Eugene P. Devine of the New York Supreme Court rejected the union’s claims and granted FMT’s counter petition to confirm the arbitration award. Michael Schept handled the arbitration and the court proceeding with guidance by Marshall Babson.

FDIC Defends IndyMac Suits

Hughes Hubbard has been retained to handle 26 lawsuits recently filed against long-time client the Federal Deposit Insurance Corporation arising out of the failure of IndyMac Bank, F.S.B. in Pasadena, California. 

On July 11, 2008, the Office of Thrift Supervision closed IndyMac Bank following a run on the bank sparked by a senior Senator’s public criticism of the manner in which federal regulators handled IndyMac Bank. At that time, IndyMac Bank was the second largest bank failure in U.S. history.

At the same time it closed IndyMac Bank, the OTS created a new institution — IndyMac Federal Bank, F.S.B. — and transferred substantially all of the insured deposit accounts and substantially all of the assets of IndyMac Bank to the new institution. The FDIC, as Conservator, is operating the new bank until a buyer may be found.

The FDIC, as Receiver for the failed bank, issued receivership certificates to depositors for their uninsured funds. The FDIC Receiver subsequently paid a dividend of 50% on the uninsured deposits because there were enough assets remaining at IndyMac Bank to cover those losses. As a result, in general, depositors lost only 50% of their uninsured deposits. The Emergency Economic Stabilization Act of 2008 temporarily increases the deposit insurance limits, but Congress did not make it retroactive.

Dissatisfied with the FDIC’s deposit insurance decisions, IndyMac Bank depositors began filing lawsuits in Los Angeles federal court. The FDIC reached out to Hughes Hubbard to manage the vast majority of cases, which allege that IndyMac Bank failed to follow depositors’ instructions before it failed. The Hughes Hubbard team has continued to monitor and identify new cases as soon as they are filed and is working to coordinate all cases.

The Hughes Hubbard team on the IndyMac Bank receivership includes Scott Christensen, Dennis Klein, Rita Haeusler, Noah Graff, and Alex Spjute.

HHR Wins $5.5M Treasury Bid

Hughes Hubbard has won a $5.5-million contract to help the U.S. Treasury Department complete contracts for equity purchases in banks as part of the Department’s $700-billion financial rescue. The firm was one of two selected for the work; the other was Cleveland-based Squire Sanders & Dempsey. The news has been widely reported in the media, including the Associated Press, Reuters, Wall Street Journal Law Blog, Dow Jones Capital Markets Report, National Law Journal, Am Law Daily and ABA Journal.

In addition, there are thousands of other banks whose stock is privately held that can also apply for government purchases of their stock. The government distributed the first $125 billion available under this program to nine of the biggest banks in the country last week.

Ron Abramson and John Hoyns worked on the bid for the contract. Chuck Samuelson will be in charge of the legal work. Samuelson will be assisted by numerous corporate associates in the coming weeks.

Rockwood Holdings Deal


Hughes Hubbard represented Advantis Technologies, Inc., a subsidiary of Rockwood Holdings, Inc., in the sale of its pool and spa treatment chemicals and water treatment chemicals business to Arch Chemicals, Inc.

Advantis’s pool and spa division produces some of the most popular pool and spa water care products on the market while the surface water division manufactures a range of products for controlling algae and nuisance aquatic vegetation in lakes, ponds, reservoirs, irrigation and drainage canals.

Rockwood Holdings is a leading global specialty chemicals and advanced materials company. Rockwood employs approximately 9,500 people and has annual net sales of approximately $3 billion.

Arch is a global Biocides company with annual sales of approximately $1.5 billion. Together with its subsidiaries, Arch employs approximately 3,000 employees.

The HHR team representing Rockwood included: Jim Modlin, Andy Braiterman, Jerry Harrison, Kristy Chattaway, Damon Rowe and Erin DeCecchis.

OctoPlus Deal


Hughes Hubbard recently represented Dutch biopharmaceutical company OctoPlus N.V. in negotiating an exclusive license and product acquisition agreement with co-development partner Biolex Therapeutics.

Under the terms of the deal, OctoPlus will license to Biolex its share of the commercial rights to its lead product, Locteron. OctoPlus will remain a partner in the process development and manufacture of Locteron, but without having to make the investments for the upcoming late-stage clinical program. OctoPlus will receive an upfront fee of $11 million, followed by milestone payments totaling $138 million over the coming years. OctoPlus will also receive royalties on future Locteron sales and an equity stake in Biolex of up to 3 percent.

Locteron is designed to be a best-in-class therapeutic for patients with chronic hepatitis C, with the potential to induce fewer side effects, improve patient compliance and provide a more convenient once-every-two-week dosing schedule compared with current therapies.

OctoPlus focuses on the development of long-acting, controlled release versions of known protein therapeutics, other drugs and vaccines. OctoPlus is also a leading provider of advanced drug formulation and clinical scale manufacturing services to the pharmaceutical and biotechnology industry.

Jan Joosten, Ron Abramson, Jim Bluck, Jim Kobak, Jim Pastore, Arinze Ike, Kathryn Taylor and Ting Chen Riess represented OctoPlus.

HHR Selected Lehman Liquidation Trustee Counsel

Hughes Hubbard partner James W. Giddens has been appointed Trustee for the liquidation of Lehman Brothers Inc., the broker-dealer, and Hughes Hubbard has been selected as counsel to the Trustee. Giddens, who is co-chair of Hughes Hubbard’s Corporate Reorganization Department, was selected by the Securities Investor Protection Corp. (SIPC) and appointed by the U.S. District Court for the Southern District of New York. SIPC maintains a reserve fund authorized by Congress to help investors at failed brokerage firms.

A reporter for the Amlaw Daily asked SIPC president Stephen Harbeck how SIPC happened to choose Giddens to handle this liquidation, which may be the largest in U.S. history. According to the publication, Harbeck was under time constraints to appoint a trustee and called Giddens, with whom he first worked in the 1970s in the case of a failed brokerage called Weiss Securities. The two have since successfully teamed up on several matters. “Once Hughes Hubbard determined it didn’t have a conflict, the firm was hired,” Harbeck said.

Brooklyn Museum Costume Deal

Hughes Hubbard recently represented the Brooklyn Museum in a high-profile agreement to transfer its acclaimed costume collection to The Metropolitan Museum of Art.

Under the deal, which is expected to close in January 2009, the Met will integrate the collection into its own Costume Institute, where it will be known as the “Brooklyn Museum Costume Collection at the Metropolitan Museum of Art.” In addition, the Brooklyn Museum will be able to include the collection in its own exhibitions. Both museums are planning to present exhibitions in 2010 focusing on different portions of the combined collections. The two museums also plan to produce a book presenting highlights of their combined collections and to make images of the objects in the collection available online.

The Brooklyn Museum Costume Collection dates back to 1903 and includes some 23,500 objects, including what The New York Times, in an article announcing the deal, called a “definitive collection of costumes and patterns by the British-born designer Charles James, a major force in New York fashion in the 1940s and ’50s, and one of the most comprehensive collections of American fashions dating from the mid-19th to the mid-20th century.”

Given the high costs of caring for such a delicate collection, the Brooklyn Museum seldom displayed it over the last two decades. By accessioning the collection, the Met will be able to conserve and display the objects along with those pieces in its renowned Costume Institute. The Brooklyn Museum Costume Collection is expected to greatly enrich the Met’s own collection, which is particularly strong in 20th-century European haute couture.

Dan Weiner and Francesca Lisk represented the Brooklyn Museum.

HHR Defends IndyMac Suits

Hughes Hubbard has been retained to handle 39 lawsuits recently filed against the Federal Deposit Insurance Corporation arising out of the failure of IndyMac Bank, F.S.B. in Pasadena, California. 
 
The Office of Thrift Supervision closed IndyMac Bank following a run on the bank that saw $100 million in deposits leave the bank every day for almost two weeks. At that time, IndyMac Bank was the second largest bank failure in U.S. history.
 
At the same time it closed IndyMac Bank, the OTS created a new institution — IndyMac Federal Bank, F.S.B. — and transferred substantially all of the insured deposit accounts and substantially all of the assets of IndyMac Bank to the new institution. The FDIC, as Conservator, is operating the new bank until a buyer may be found.
 
The FDIC, as Receiver for the failed bank, issued receivership certificates to depositors for their uninsured funds. The FDIC Receiver subsequently paid a dividend of 50% on the uninsured deposits because there were enough assets remaining at IndyMac Bank to cover those losses. As a result, in general, depositors lost only 50% of their uninsured deposits. The Emergency Economic Stabilization Act of 2008 temporarily increases the deposit insurance limits, but Congress did not make it retroactive, so it does not benefit IndyMac depositors.   
 
Dissatisfied with  their losses, IndyMac Bank depositors began filing lawsuits against IndyMac and the FDIC in Los Angeles federal court. The FDIC reached out to Hughes Hubbard to manage these cases, which  challenge the FDIC's depost insurance determinations.   After starting work on the first few cases, the Hughes Hubbard team monitored  and identified  new cases as soon as they were filed and  has worked  to coordinate all of the cases.
 
The Hughes Hubbard team on the IndyMac Bank receivership includes Scott Christensen, Dennis Klein, Rita Haeusler, Noah Graff, and Alex Spjute.

HHR Represents MTV in Transaction to Monetize UGC on Myspace

MTV Networks has signed agreements with MySpace and Auditude regarding the sale, display and distribution of advertising with user generated content posted to MySpace that contains MTV Networks’ programming. HHR’s New Media, Entertainment and Technology team represented MTV Networks.  Click here for more details.

Bear Stearns Fraud Case

The firm is representing Ralph Cioffi, the former Bear Stearns hedge fund senior portfolio manager charged as lead defendant by federal prosecutors in the Eastern District of New York in June 2008 with securities, wire and mail fraud, among other counts. The firm is also representing Cioffi in multiple companion civil suits and arbitrations.

The government touted its prosecution of Cioffi as part of its “Operation Malicious Mortgage.” The government alleges that Cioffi misled sophisticated investors concerning the health of two Bear Stearns hedge funds — the High-Grade Structured Credit Strategies Fund and the High-Grade Structured Credit Strategies Enhanced Leverage Fund — in the few months leading up to the Funds’ close. The indictment is based in large part on selected quotations from a few emails written by Cioffi and his co-defendant, Matthew Tannin, in which they expressed uncertainty. Cioffi also faces one count of insider trading for shifting a portion of his investment in one of those Funds into a third fund he managed that was engaged in a similar investment strategy, but which no Bear Stearns portfolio manager had yet supported with an investment at the time. The indictment does not specify what “inside information” Cioffi is alleged to have known at the time.

On behalf of Cioffi, Ed Little issued the following statement that was covered by several major news outlets, including The New York Times and The Wall Street Journal:

“The subprime crisis took everyone by surprise, including the Fed and Treasury, and dozens of the largest financial institutions have lost over $300 billion to date on the same investments. Ralph Cioffi’s funds lost money in exactly the same way. Because his funds were the first to lose might make him an easy target but doesn’t mean he did anything wrong. Indeed, Mr. Cioffi had no motive to do anything wrong. He did not and could not have profited by doing anything the government now claims he did.”

The team believes that Cioffi is being unfairly prosecuted based on a few partial statements, made during an extraordinarily volatile market, that the government has taken out of context and proceeded as if those statements reflect Cioffi’s overall views concerning the health of his Funds. The team is confident that, when the statements are put in context, the jury will agree that Cioffi had no criminal intent and will acquit him of all charges. The criminal case and the parallel SEC suit are both pending before Judge Frederic Block in the Eastern District of New York.

Ed Little, Marc Weinstein, Lisa Cahill, Jason Masimore, John McGoey and Kate Vogel are representing Cioffi.

Hughes Hubbard Recognized in Chambers USA 2008

Seven Hughes Hubbard practice groups and 23 Hughes Hubbard lawyers are ranked in Chambers USA 2008.  That makes one more practice area and five more lawyers than were included in last year’s editions.  Highlights for Hughes Hubbard this year include the addition of the Securities Litigation group in New York.  This year’s Chambers also includes the addition of Marshall Babson, Andrew Braiterman, Richard Friedman, James Kobak Jr. and Christopher Paparella.  The annual Chambers USA rankings are determined from interviews with clients and peer lawyers.  The results are independently audited and based on a number of criteria, including technical legal ability, professional conduct and client service.  To see the full listings, please got to Chambers’ website:  www.chambersandpartners.com.

Lillian Vernon's Chapter 11 Filing

Hughes Hubbard lawyers have been playing a leading role in the recent Chapter 11 filing in the Delaware Bankruptcy Court by Lillian Vernon Corporation and its 7 affiliated debtors. Lillian Vernon, the internet and catalog retailer, suffered a weaker than expected holiday sales season that, combined with increased shipping and other operating expenses, necessitated a Chapter 11 filing for the best interests of all of its creditors and stakeholders.

The firm represents Sun LV Catalog, LLC ("Catalog"), an affiliate of Sun Capital Partners, Inc., as 97% equity holder and subordinated, secured lender. The firm first represented Catalog in 2006 when it acquired Lillian Vernon. The Chapter 11 case has garnered media attention, in the most recent edition of the Wall Street Journal. Lillian Vernon's filing is emblematic of an increase in bankruptcies by retail companies over the past year, including the firm's representation of Rags Shops, Inc. and its 64 affiliates in a successful Chapter 11 liquidation in Brooklyn last Spring.

Hughes Hubbard lawyers Michael Weinsier, Jim Giddens, and Chris Kiplok began advising Catalog as to strategic concerns in the days and weeks prior to Lillian Vernon's bankruptcy filing, and they and others have been involved in advising Catalog on insolvency, bankruptcy, and financing issues since. The Chapter 11 process is active and ongoing, and according to the debtor may ultimately include a sale or liquidation of some or all of the company.

The firm's team includes Weinsier, Giddens, Kiplok, Jim Pastore, Jeff Margolin, and Anson Frelinghuysen.

Beinecke on Crain's "Most Influential" List

Candace Beinecke was named one of the “100 Most Influential Women in NYC Business” by Crain’s New York Business. She was one of only three lawyers on the list (the others are Sheila Birnbaum of Skadden and Faiza Saeed of Cravath), which represents the arts, finance, media, real estate and professional services fields, among others.


To compile the list, Crain’s considered professional biographies and accomplishments, as well as how many people the individuals supervise and how much revenue they generate. “They recognize the extraordinary importance of managing expectations and setting realistic goals,” wrote Jill Kaplan, Crain’s publisher, of the women on the list. “They have chosen paths that have provided them with self fulfillment in whatever way they have defined it.”


The following is the full text of Beinecke’s entry on the list:


BALANCING ACT AT TOP LAW FIRM


Candace Beinecke: Hughes Hubbard & Reed

Long before Candace Beinecke became chair of Hughes Hubbard & Reed, her mother knew that she’d become a lawyer: She argued too much as a kid.


Ms. Beinecke, 60, was a pioneer in her field. She was a corporate lawyer during the 1970s, a time when clients thought nothing of dropping a firm that put “girls” on their legal teams. She was appointed chair of Hughes Hubbard in 1999, making her the first female chair of a major New York law firm.


Throughout her career, she has earned respect from combative and sometimes outright sexist male lawyers, while maintaining her firm’s independence in an era of consolidation. It’s been a balancing act.


“I think my greatest skill is being able to do tough things without breaking a lot of glass,” she says.


During Ms. Beinecke’s tenure, Hughes Hubbard has ranked among the top law firms in the country for its corporate practices and diversity hiring, while profits per partner have increased 19% each year on average.


Ms. Beinecke also serves on a number of boards. She’s chairman of $35 billion investment fund First Eagle Funds, a director of transportation and energy firm Alstom and a vice chair of the Partnership for New York City.

Newspapers First Appellate Win

Hughes Hubbard won an appellate victory for long time client Newspapers First in a disability discrimination case in California. In a 27-page opinion, the California Court of Appeals affirmed a lower court’s grant of summary judgment to Newspapers First, a significant victory in a state known for its tough employment laws. Ned Bassen argued the case on appeal.

The case can be traced back to 2004, when Newspapers First, an association of over 40 newspapers across the country that develops newspaper advertising as a substitute for electronic media, eliminated five positions in a reduction-in-force. One of the employees filed a lawsuit in California state court, alleging discriminatory termination based on disability – in her case, lupus – as well as failure to accommodate, violations of the California Family Rights Act, retaliatory termination, harassment based on disability, breach of contract and intentional infliction of emotional distress.

Discovery was heavily contested and unearthed weaknesses and inconsistencies in the plaintiff's story, and the lack of persuasive medical evidence resonated with the lower court. After observing during oral argument, “It’s like that old burger commercial, ‘where’s the beef,’” Judge David A. Workman of Los Angeles County Superior Court ruled that plaintiff failed to present any material factual disputes and, therefore, there were no triable issues. By a unanimous decision, the California Court of Appeals agreed.
Ned Bassen, Bill Bisset, Jodi Divak and Todd Piro represented Newspapers First.

Guantánamo Amicus Brief


Hughes Hubbard filed an amicus curiae brief with the U.S. Supreme Court on behalf of a coalition of Canadian parliamentarians and law professors in consolidated appeals by military detainees at Guantánamo Bay.


The petitioners in the cases assert the right to petition for a writ of habeas corpus under the Suspension Clause of the U.S. Constitution. In particular, they challenge the constitutionality of the Military Commissions Act of 2006, which denies alien detainees the right to challenge promptly their detention before a civil court. One of the detainees affected, Omar Khadr, is a Canadian citizen who has been held at Guantánamo Bay since 2002 when he was only 15 years old. Khadr presently is in proceedings before the U.S. Military Commission.


The Canadian lawmakers and law professors who lent their names to the brief expressed a strong interest in promoting a consistent application of international law by allied nations, including the U.S., and in assuring treatment of Canadian citizens that meets internationally recognized standards. The brief argues U.S. constitutional obligations toward alien detainees should be construed in a manner consistent with international legal standards. The brief also argues that the Military Commissions Act violates international law by restricting non-citizen detainees’ meaningful access to any independent and impartial tribunal to challenge their detention.


Thirty-one parliamentarians -- including two former Ministers of Justice and Attorneys General, a former Solicitor General, and former Ministers of Foreign Affairs and National Defence -- and sixty-one professors signed on to the brief supporting the detainees’ right to challenge their confinement. As one parliamentarian noted in signing on to the brief, these cases raise “fundamental legal questions of due process, equality before the law, the application of international law to domestic law, the unfairness of the Guantánamo process, the problems of arbitrary and indefinite detention, the conditions of confinement, the status of child soldiers, and the like.” Another parliamentarian expressed “[c]ongratulations for drafting a well-reasoned document and I am proud to be associated with it.”


The brief has received significant press coverage in Canada. CBC News, the Globe and Mail, and the Toronto Star featured articles on it and quoted the academics who signed on. The CBC news radio program “The Current” began with an interview of Professor Craig Forcese, a Hughes Hubbard alum who also appeared on the brief, about the cases and arguments in the brief.


Bill Stein and Scott Christensen drafted the brief with Hughes Hubbard alum Professor Craig Forcese of the University of Ottawa. They were assisted by Sarah Cave, Kathleen Fones, Anton Skuratovskyy, and summer associate Corrine Lane.