For some time now, Teva Pharmaceutical Industries—like many other pharmas recently—has been having the occasional chat with the Justice Department about what the latter sees as some pretty wide-ranging price fixing. While this is fairly widespread in the industry, it is also illegal, and according to the Feds, Teva’s been doing a whole lot of it: On arthritis, blood clot, cholesterol, cystic fibrosis, hypertension, pain, seizure skin condition drugs. Oh yea, and brain cancer. That, too. All the tune of $350 million extra in the bank.
Morning Docket: 08.27.20
* New Jersey gyms are being allowed to reopen with restrictions for the first time since the COVID-19 pandemic began. Now people can once again gym, tan, laundry in the Garden State. [NBC News]
* A lawsuit has been filed against the Trump Administration over a policy that allegedly makes it more difficult to obtain green cards. [CNN]
* The Florida bar exam has officially been rescheduled for October 13th. [Tampa Bay Times]
* President Trump’s former lawyer Michael Cohen allegedly helped Jerry Falwell, Jr. block the release of racy photos. [CNN]
* The SEC alleges that a Florida man used investor funds to pay for his divorce lawyer. Maybe his divorce made him better able to serve clients? [Bloomberg Law]
Jordan Rothman is a partner of The Rothman Law Firm, a full-service New York and New Jersey law firm. He is also the founder of Student Debt Diaries, a website discussing how he paid off his student loans. You can reach Jordan through email at jordan@rothmanlawyer.com.
Yale Law School Suspends Professor For Sexual Harassment — See Also
Who’d Have Thunk That A Brett Kavanaugh Cheerleader Would End Up Suspended Over Sexual Harassment?: Yale Law’s Jed Rubenfeld suspended for two years after internal investigation into sexual harassment allegations.
Pay No Attention To The Arguments Behind The Curtain: Bar examiners try to muddy the issues in diploma privilege case.
Down The Hatch (Act): It’s possible that having zero people responsible for monitoring Hatch Act violations was a mistake.
Where Do We Go From Here?: ILTA>ON raises some questions that are probably less weighty than I seem to think they are.
Sperm Donors Need To Cross Their Ts And Dot Their Is, Or End Up Like This Guy
Last month, a surprising ruling came down from a New York appellate court, holding that a man who believed he had been a mere sperm donor was actually the legal father of a child conceived from his donations. The case is a cautionary tale for those thinking they might just do a solid for an ex or friend — without fully complying with state laws covering gamete donors.
States have to balance two competing interests when it comes to these family law issues. The first is that kids have a right to support from both parents. But the second is that in some cases — like when there’s a sperm donor who goes through all of the right legal processes — it doesn’t make sense to count the donor as a legal parent. So what happens when the donor clearly didn’t mean to become a father, but the prescribed legal processes weren’t followed?
In the Matter of Claudia B. v Darren M., the New York appellate Court recounts how the Petitioner (donor) and Respondent (Claudia B.) dated for a few months in 2009. After the relationship ended, “petitioner asked respondent to donate sperm so that she could conceive a child, and he agreed.” Drafts of a sperm donation agreement were exchanged between the parties. In December 2009, Petitioner donated 17 vials at a fertility clinic. Wow, 17 vials. No word on how big these vials were.
In any event, every good law school student knows that in contract law, there’s no agreement until the parties have settled on the terms. Here, however, no final agreement was ever reached by the parties, and nothing was ever signed. The donor alleges that the clinic told him that Claudia B. would not be able to use his sperm without a signed agreement. So that was that he thought. It was over, and he wouldn’t be a donor.
Except it wasn’t.
Approximately three years later, after no contact between the parties, Petitioner learned that his ex had, in fact, been able to use the sperm he deposited at that clinic, conceived, and gave birth to a child. Then, in 2017, the ex brought a paternity action against the donor.
The donor argued that the mother’s claims were barred by a legal doctrine called estoppel, which generally prevents people from asserting rights against another person who has in good faith relied on their promises or conduct. But the court was unmoved, finding that “We need not decide whether, under New York law, estoppel is available to foreclose a mother from asserting paternity as to a known sperm donor, because even if it were respondent’s claim would fail.”
The court noted that there was a process to avoid becoming a legal father when all you meant to be was a donor. But “[c]ontrary to respondent’s contention, there was no binding enforceable oral or written agreement between the parties, either before or after respondent donated his sperm. There is no dispute that a signed contract does not exist. Nor was any final oral agreement reached.” Since there was no contract that limited the donor’s role when he gave up his sperm, the donor was found to be a parent of the child, with all the financial and other obligations that come with it.
As an assisted reproductive technology attorney, it’s hard for me not to think it strange that the court’s own language repeatedly refers to the donor as a “donor,” and not as “the father,” given its ultimate conclusion. Indeed, that language would be more appropriate if there *were* an agreement between the parties, even if all the details weren’t hammered out. But that’s not enough, clearly. Under New York law, the parties’ intentions are not enough to establish the legal relationship between the gamete provider and the child.
I had a chance to speak to the donor’s attorney, Brian Esser, about the case. Esser, who did not represent the donor at the contract stage, explained that they were, of course, disappointed with the decision, but that he understood how the court reached its conclusion. Here, without a final and signed “preconception agreement,” the arrangement was not within the strict letter of the law. Esser is hopeful that the new Child-Parent Security Act (CPSA), which will take effect next year, will be more helpful for future donors and parents wishing to define their relationship and have it upheld in the Empire State. The CPSA moves away from the limited traditional genetic and adoption based parental recognitions, and focuses on the intent of those involved in assisted reproductive technology arrangements — parents, donors, and surrogates.
Amira Hasenbush, a California assisted reproductive technology and sperm donation legal expert, thought the case could have gone in a different direction under a California judge. California law, too, though would require that at least an oral argument be found to have existed between the parties. Hasenbush believed that based on the opinion, that there was pretty clear evidence there was an oral agreement that both parties intended for Darren M. to be a donor and not a parent prior to the donation. The fact that Claudia B. made an offer in writing to modify that oral agreement AFTER he made his donation, and the donor rejected it, should not negate the existence of the original oral agreement.
Makes sense to me. Too bad for the donor that the judge didn’t see it that way.
The lesson, clearly, is whether you are a Kardashian considering asking your ex for sperm, or one of us regular folk, the law in this area is important, and varies from state to state. Given that the stakes are high, with the life and support of a child at issue, it is worth taking the time and spending the money to talk to an attorney, complete a legal agreement, and make sure the intended arrangement clearly falls within state law.
Ellen Trachman is the Managing Attorney of Trachman Law Center, LLC, a Denver-based law firm specializing in assisted reproductive technology law, and co-host of the podcast I Want To Put A Baby In You. You can reach her at babies@abovethelaw.com.
H-Town’s Favorite Biglaw Firm (According To Associates)
Ed. Note: Welcome to our daily feature Trivia Question of the Day!
According to American Lawyer’s Midlevel Associate Survey, which breaks the rankings out by specific offices, which Houston office of a Biglaw firm is ranked best in midlevel associate satisfaction?
Hint: The firm got a 4.742 out of 5 in overall satisfaction for their Houston outpost, which is one of 46 offices the firm has worldwide.
See the answer on the next page.
Jim Jefferies’s Pandemic-Era Podcast, ‘I Don’t Know About That,’ Sure Beats RNC Where Nobody Knows About Anything
This week, we all have the distinct displeasure of sitting through a Republican National Convention that is just one fawning sycophant after another describing an alternate universe in which the president isn’t the worst. The whole (self-described) Republican nonplatform this year is “[t]hat the Republican Party has and will continue to enthusiastically support the President’s America-first agenda.”
When all that binds you together is being part of a cult of personality, and knowing it, and being proud of it, boy, there is not much left to talk about. Even Fox News is sick of covering more or less the same speech repeated over and over by D-list Republicans and Trump family members. I guess even if you like Donald Trump, enough is enough.
Fortunately, I’ve found the perfect thing to distract from the vapid RNC and the articles from all the poor political reporters who have to keep coming up with new ways to write the story, “These People Really, Really Like Donald Trump.” It’s comedian Jim Jefferies’s new podcast, I Don’t Know About That with Jim Jefferies!
When I wrote about Jim before, in late April of this year, I expressed hopes of going to a Jim Jefferies show once things reopened, which seemed almost a pending inevitability as of late April. Well, apparently my hopes were a bit premature. But in the meantime, Jim came through with some classic Jim Jefferies-style entertainment to help keep us motivated during this pandemic (and to make himself some money hawking manscaping products and home shipping equipment and other pandemic essentials while he’s not on the road doing standup).
The basic premise of the show is simple. The title, I Don’t Know About That, refers to a good line to say to that jackass at a party spouting a bunch of nonsense, before you casually walk away. In the opening minutes of every episode, Jim plays the titular jackass. He first tries to guess the topic of the episode based on little more than the appearance and surroundings of the invited topical expert, who is appearing on a videoconferencing screen. Then, Jim rambles off everything he purports to know about the given topic, some of it utter gibberish, a surprising amount reasonably spot-on, but all of it hilarious. Jim is graded on his recitation of knowledge, and finally the topical expert sets Jim straight on a few things in an hour-long discussion. Jim’s sidekicks Kelly Blackheart and Forrest Shaw occasional jump in to comedically lacerate him, and every now and again, assistant Jack Hackett comes to Jim’s aid. All in all, a pretty good way to spend an hour to 90 minutes.
The first episode came out on May 4, and in just under four months, Jim has covered topics ranging from the War on Drugs to bees. The breadth of the topics, and the depth of each episode, are particularly soothing antidotes to the one-trick pony that is the RNC this week. It’s also nice to listen to a show where people, you know, acknowledge both the value of expertise and the fact that they don’t know as much about a given topic as someone who has spent years studying it. Plus everyone on the show seems to be actually having a good time learning about stuff, which is, I suppose, appropriate for an entertainment podcast.
So, if you haven’t listened to I Don’t Know About That yet, now is the perfect time to catch up — the episodes are largely evergreen, you won’t have missed much by being late to the party. Do yourself a favor (and do me one while you’re at it, I really hope Jim can keep making this podcast), and give I Don’t Know About That with Jim Jefferies a try.
Jonathan Wolf is a litigation associate at a midsize, full-service Minnesota firm. He also teaches as an adjunct writing professor at Mitchell Hamline School of Law, has written for a wide variety of publications, and makes it both his business and his pleasure to be financially and scientifically literate. Any views he expresses are probably pure gold, but are nonetheless solely his own and should not be attributed to any organization with which he is affiliated. He wouldn’t want to share the credit anyway. He can be reached at jon_wolf@hotmail.com.
Adjusting The Focus: Courts Correct Course On Copyrights For Instagram Art
(Photo by Carl Court/Getty Images)
Those photographers and creatives who post their work on Instagram (read: all of them) were rightfully upset earlier this year when news of the decision in Sinclair v. Ziff Davis/Mashable.com hit the the webwaves. In that case, a Southern District of New York court ruled, in essence, that any art or photography that a creator posted to Instagram could be exploited by third parties that employed Instagram’s platform to repost the work on their own website. This conclusion resulted in the dismissal of Sinclair’s copyright case, which sought to address Mashable.com’s publication of Sinclair’s photograph entitled “Child, Bride, Mother/Child Marriage in Guatemala” after Sinclair had declined their request for a license. To be sure, it was a clear case of infringement that was dismissed on a questionable basis. And the court’s decision, which for the first time held that work posted on Instagram could be used by outside companies for their own purposes without consent, resulted in numerous creatives shuttering or limiting access to the Instagram accounts.
The initial Sinclair decision concluded that the prolix and contradictory Terms of Use to which one clicks agreement when first signing up for Instagram granted Instagram broad rights. And that those broad rights somehow allowed third parties to then exploit anything published to Instagram.
But, the court did not take into account the fact that Instagram would itself have to exercise its right to sublicense in order for third parties to exploit the works posted on Instagram. And it failed to acknowledge that elsewhere in the labyrinth of Instagram’s terms it is specifically stated that Instagram users own the rights to the work that they create and post and that third parties hoping to exploit the work must gain the creator’s consent to do so. All in all, the case was a tragedy for artists and creatives who showcased their work on the world’s largest online platform.
Luckily, though, a case with remarkably similar facts was pending in a courtroom right down the hall from the court that decided Sinclair. And that court respectfully but firmly rejected the key conclusion in Sinclair — that a creator’s posting a work to Instagram gave the rest of the world the unfettered ability to exploit that work without consent for commercial gain. (n.b., this author represents the artist in this case.)
In that case, McGucken v. Newsweek, the once-relevant but now disgraced publication had requested from McGucken a license to publish one of his striking photographs. When he declined to grant a license, Newsweek published his work anyways, alongside Newsweek advertising. When McGucken objected to this exploitation without consent, Newsweek, in an argument similar to that advanced in Sinclair, claimed via a tortuous and tortured reading of Instagram’s terms that it basically had the right to do whatever it wanted with McGucken’s work and that his feelings on the subject were irrelevant. Because, Instagram.
The court, though, rejected Newsweek’s baroque (and, some might say, broke) argument, noting that Instagram’s terms expressly state that “User Content is owned by users and not by Instagram” and that companies like Newsweek must “[c]omply with any requirements or restrictions imposed of usage of Instagram photos and videos … by their respective owners[.]” Of course, Newsweek presented no evidence that it complied with McGucken’s requirements or restrictions. To the contrary, the record reflected that Newsweek scoffed at McGucken’s restrictions and exploited his work notwithstanding his feelings.
And, crucially, the McGucken court adroitly recognized that while Instagram users may grant Instagram a license to use their work, there was a conspicuous lacuna when it came to evidence establishing that Instagram ever sublicensed McGucken’s work to Newsweek, as Newsweek claimed. The court acknowledged that while Instagram certainly had a bunch of terms, “none of them expressly grants a sublicense to those who embed publicly posted content.” As there was no evidence whatsoever in the record to establish that Instagram had authorized Newsweek to make any use of McGucken’s work, Newsweek’s argument that it could do as it pleased with McGucken’s work was rejected.
In the wake of the McGucken decision, the Sinclair court reconsidered its ruling and reinstated the artist’s case. And to put a bow on the matter, Instagram itself went public and stated without equivocation that the putative sublicenses of the type claimed by Newsweek are simply figments of imagination that do not, in fact, exist. So, at this point, all courts to consider the issue and Instagram itself has taken the position that third parties cannot exploit the work of creatives simply because the work was posted on Instagram.
Of course, the uniformity of these developments has not dissuaded Newsweek from pushing forward with its attack on artists’ rights. The company has returned to court demanding that it reconsider its ruling and instead conclude that Instagram, which has now publicly stated it does not provide sublicenses, provided Newsweek a sublicense to exploit McGucken’s work. So the saga, as it does, continues.
Scott Alan Burroughs, Esq. practices with Doniger / Burroughs, an art law firm based in Venice, California. He represents artists and content creators of all stripes and writes and speaks regularly on copyright issues. He can be reached at scott@copyrightLA.com, and you can follow his law firm on Instagram: @veniceartlaw.
Dispatches From The Liminal Zone Of The Legal Profession Under COVID
I think it’s fair to say that in both form and substance this year’s ILTA>ON conference embraces its position in the liminality of the legal industry. The schedule itself is unbounded as global participation joins at all hours. Presentations and panels teeter between analyzing long-term glacial trends and conjecture about the staying power of the knee-jerk COVID-19 accommodations of the last few month. All the talking points along the pathway to the future have scattered and the throughline of the conference seems to be making sense of it all — like adults frantically sorting through a LEGO catastrophe before company arrives in 30 minutes.
For a show dedicated to the future of the industry, this year’s installment feels to have jumped the guiderails more than ever before. Which, of course, is the fun of it. Futurism isn’t really exciting until you find yourself unmoored to conventional wisdom.
The morning keynote set this tone with Richard Punt, Managing Director, Legal Strategy & Market Development of Thomson Reuters, offering thoughts on where the industry would go once the COVID quake settled ranging from the more predictable conclusions based on the last decade, such as increased client focus on business outcomes rather than the nature of legal inputs, to more unforeseen developments tied to the pandemic, like an increased online shift of justice. It may be hard to believe that justice is moving online with all the pushback to the mere suggestion of moving trials online, but Punt doesn’t necessarily see trials moving online as much as an increased acceptance that many other stages of litigation can. That’s certainly not too hard to believe.
Where does the legal industry generally and legal technology specifically go from this juncture? Litera CEO Avaneesh Marwaha sees this as a wakeup call to industry strategizing, “What COVID did to this industry is: if you want to build a 5-7 year strategy, that plan better allow for flexibility.”
We’ve had a decade of relatively predictable progress — AI hype cycle notwithstanding. But now there’s a shared recognition that things aren’t guaranteed to go to plan. For Litera, Marwaha finds that embracing flexibility pays off with customers. “We have to be nimble in our planning to allow for shifting priorities — the big shift is that clients want to partner with providers that are nimble as well.”
Litera has its share of big news to share this show as well, unveiling Litera Litigate offering coverage of drafting, case management, and binders for litigators, and Litera Transact combining Doxly and Workshare Transact, while announcing that its Litera Desktop feature has seen 50 percent year over year growth. Now all of these solutions are available through the Litera Work ecosystem.
Tech providers have touted agility before, but there’s just more weight to those words now. Tomas Suros, Global Product Marketing Director-Legal at AbacusNext told me that their latest ILTA announcements were in the works before the pandemic, but that the virus still had an impact on the release. “We’re an agile development house, so we shifted some priorities and features included in the release… we have a long list of features planned and we accelerated some features based on this, all stuff that was either requested by clients or just made sense.”
Specifically, AbacusNext offers a new cleaner and customizable user interface, new apps including an accounting and an hours comparison app, and API provisioning. And that’s apparently not the end of updates coming out in 2020 from them.
The capper after another day roaming the threshold outpost of ILTA>ON is a round of Family Feud sponsored by iManage. It’s an ominous entry for attendees grappling with the weighty existential questions of the law’s winding technological path. Two teams — but really all of us — locked beneath the spotlight attempting to guess what a nebulous, unseen audience really desires. It doesn’t matter if it’s the most effective application of machine learning advancements to the timely provision of legal services or five things a man might buy for an anniversary gift. In either event we’re embarking upon this journey without a clear guide.
Survey says. Survey says indeed.
Joe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news. Joe also serves as a Managing Director at RPN Executive Search.
Send Steve Cohen Your Screenplays!
Margin And The Mississippi Mafia
In the late 80s, police were dispatched to investigate why thousands of VHS cassettes were scattered on highways around Jackson, Mississippi. That started a series of events that threatened the most powerful people in town and ended a mom and pop business. Without margin, small businesses — including small law firms — can’t survive.
Make sure you take advantage of the show’s Q&A feature. You can ask Mike questions about the latest episode and he’ll answer at the end of the next episode. Just submit your question in the form at the bottom of this post.
Episode Resources
The Cost of Law by Gillian Hadfield
Margin by Richard Swenson