Legal Tech: Capital Infusion At Software Company iCONECT Means…

(Image via iCONECT)

As a software company in the eDiscovery and information governance space for two decades, one might think there is little need to push the envelope. You can coast, right? Not true. Innovation waits for no one, and if all you do is sit around, then all you’ll be doing is sitting around.

iCONECT, the global software company and producer of the award-winning XERA eDiscovery platform, has announced that they are partnering with Newfield Capital Partners, a private investment firm, to provide strategic capital that will fund continued growth and innovation for the company. The terms of the arrangement are not public, but sources say it is a multimillion-dollar deal.

Ian Campbell, CEO of iCONECT, who’s been running the company for 20 years, gave me a few minutes of his time.

Asked what iCONECT is looking to accomplish with this infusion of capital, Ian told me that they are focused on innovative developments in the platform and on growing their market presence through sales and promotion. “We’ve known for a while that we have a better mousetrap,” Campbell says. “We’ve been focused on development for years. Now, we going to focus on expanded marketing and communications.”

iCONECT has been on the fringe of development in the GDPR space, and they have completed development of an auto-redaction tool that enables users to automatically identify and anonymize PII and PHI. They are also doing some cool things in video management for law enforcement, using the XERA platform to grant multi-party access to video evidence.

And they are planning a new software release that embeds some unique AI innovations into the platform.

What does this mean, I asked Campbell. “It finally means that AI will be transparent to the end user,” he says. iCONECT is working to integrate a continuous active learning technology that will make AI/machine learning seamless to the end user. According to Campbell, “People are looking for AI tools to be more interactive; to be similar to how they interact with other platforms, like Amazon or Spotify. We’re going to make our AI offering more intuitive and expand the self-serve capabilities within the iCONECT platform.”

Meanwhile, existing customers and partners of iCONECT are surely wondering what this arrangement means for them. Well, surely it means additional technology resources in the long run. Campbell tells me that nothing will change for existing users. There’s no change in ownership, no change in equity, and no change in personnel.

Customers will likely see an increase in brand presence in the market, but basically Campbell says they are still the same company looking to disrupt the eDiscovery market with their unique brand of innovation.

“We’ve been sitting on the sidelines for a number of years. eDiscovery software companies have come and gone over the course of 20 years. Our goal now is to confirm for everyone who backed the iCONECT horse that they made the smart decision.”

For their part, Louisville-based Newfield Capital Partners appears to have been monitoring growth in the eDiscovery space for years. Rob Bush, a partner at the firm, commented in a joint press release that “with the emerging opportunity in this space and a strong and experienced management team, we are confident that the impact on partners and end users will be very positive, resulting in significant growth for iCONECT.”

Disruption, consolidation, and innovation in the legal technology space is nothing new. There’s been a lot of movement in the past couple years. It’s good to see a little less disruption and the infusion of strategic capital into a product that’s got a vision and mission for the future. So many products have just disappeared. Clearly, it seems we have yet to see the best iCONECT has to offer.


Mike Quartararo

Mike Quartararo is the managing director of eDPM Advisory Services, a consulting firm providing e-discovery, project management and legal technology advisory and training services to the legal industry. He is also the author of the 2016 book Project Management in Electronic Discovery. Mike has many years of experience delivering e-discovery, project management, and legal technology solutions to law firms and Fortune 500 corporations across the globe and is widely considered an expert on project management, e-discovery and legal matter management. You can reach him via email at mquartararo@edpmadvisory.com. Follow him on Twitter @edpmadvisory.

Another One Bites The Dust

No matter how you’ve been doing, chances are you’ve been doing better in the past two weeks than LeClairRyan. The blows have been coming for the Am Law 200 firm at a break-neck pace. Gary LeClair, the first named partner, announced he was leaving for regional firm William Mullen. Other partners, associates, and staff have been jumping ship in droves, including entire practice groups. The landlord of a shuttered satellite office has sued for hundreds of thousands in overdue rent and promissory note payments. Every day has brought more bad news for the firm.

So it was no surprise that LeClairRyan officially announced it was forming a wind-down committee on July 31 and is in the process of dissolving. A firm with over 270 attorneys and $120 million in annual revenue will soon be no more. How in the living heck does that happen?

Why Do Law Firms Fail?

Two caveats: (1) I do not have any insider information on what happened at LeClair beyond what’s been publicly reported; and (2) I have deep sympathy for the staff and attorneys who are in the midst of this professional upheaval. That said, and with all due respect to the people living this chaos, I would be derelict in my duty as a law firm managing partner if I didn’t try to glean some lessons from LeClairRyan’s meltdown. They’re far from the only firm that’s failed publicly in the past few years, and I doubt they’ll be the last. The segment of the market we occupy is facing unique challenges in the legal market, and complacency today might mean shutters tomorrow.

The silver lining of the spate of recent firm failures is that we have some data to analyze. I’ve spoken to many lawyers who have gone through firm dissolutions, and a number of themes continue to recur in those conversations.

Coasting instead of growing. When things are going well, it’s easy to get comfortable and assume things will always remain good. This mindset is comforting to lawyers, who are trained to love the predictable and status quo, but it can be death to a business. Someone’s always coming for your market share. If you’re not taking active steps to expand your current book to keep pace with potential client attrition, then you’re just biding time until that book slips through your fingers.

Not addressing underproductive lawyers. Lawyers who don’t appear to be pulling their weight can be poisonous to a firm’s morale and cohesion. The high performers carrying an unfair share of the load feel dissatisfied. The low performers stress further, feeling simultaneously like everyone knows they’re dragging the firm down while also feeling like they’re waiting to be unmasked as unsuccessful frauds. I’m an advocate for attorneys treating each other, and themselves, with kindness and compassion. But compassion doesn’t mean inaction, and too many in firm management are unwilling or unable to address chronically underperforming attorneys. Firms need to be proactive and direct in these situations. Compensation cuts aren’t a substitute for substantive planning and discussion. It’s not pleasant to have tough conversations, put people on strict performance plans, or ultimately cut headcount, but doing so helps everyone in a firm feel more at ease. When the firm trusts management to actively handle internal disputes, its members can focus outward on building their practices instead of inward, defending their piece of the firm’s pie.

Diluting the equity pool. At a recent Hugh Simon lecture, he pointed out that if you adjust for inflation, Am Law 200 firms’ current revenue-per-lawyer stats are about where they were in 2008, but profits-per-equity partner have gone up over time. The market has shifted in the past decade toward constricting the equity pool, raising the compensation of the rainmakers who are keeping firms afloat in these leaner times, while cutting the comp of lower-performing or service partners. Whether we like it or not, this shift in the market price of rainmaking means firms that aren’t willing to pay to keep their biggest books happy are at risk of losing them to their competitors.

Letting expenses devour profit. Lawyers love the trappings of our practice, but too often lose sight of the costs we’re incurring until we’ve already begun to feel the bite. We lock our firms into expensive leases in swanky buildings, only to see our prices undercut by virtual firms and less flashy boutiques. We spend money on decorations and perks that look impressive, but probably don’t generate much new business. We get excited by high-revenue practices without considering how much expense those practices incur to bring that money in. Firms that don’t manage their costs often don’t realize they’ve slipped into unprofitability until it’s already too late.

Over-democratizing the firm. Lawyers are used to studying law. They don’t, usually, study market forces, business trends, or the emerging best practices of business management and accounting. Yet that has rarely prevented partners from developing passionate, vehement opinions about the management of their firm. Owners undoubtedly deserve a voice in the management of what they own, but firms that spread their agency too thin find themselves stuck in gridlock, unable to respond quickly to new challenges. Businesses need agility, precision, and clear delegations of power. Management teams that delegate all their power to committees, or that aren’t granted any real power to begin with, might as well be trying to paddle a canoe with a toothpick. They can make a big show and expend a lot of effort, but they’re not going to have much say over where they end up.

An Opportunity for Growth

LeClairRyan’s implosion is just one chapter in the much larger story of the sea change our industry is continuing to experience. We’ll learn more in the coming weeks what precisely brought this firm down, but the major strokes of the larger story are already well understood. We owe it to ourselves not to let this opportunity for learning and growth pass us by. We can pay attention to the forces around us, or let them drag us down as well. The choice, as always, is ours.


James Goodnow

James Goodnow is an attorneycommentator, and Above the Law columnist. He is a graduate of Harvard Law School and is the managing partner of NLJ 250 firm Fennemore Craig. He is the co-author of Motivating Millennials, which hit number one on Amazon in the business management new release category. As a practitioner, he and his colleagues created a tech-based plaintiffs’ practice and business model. You can connect with James on Twitter (@JamesGoodnow) or by emailing him at James@JamesGoodnow.com.

How Successful Small Law Firms Get Ahead Of The Game

For small law practices, the risks of failing to embrace available technology include everything from a lack of mobility to a loss of financial opportunity. Think about the amount of time you spend doing things that focus on the business of law, rather than the practice of law. From invoicing to submitting expenses to tracking time, all of these tedious tasks are taking hours away from your ability to improve your firm.

Don’t you wish there was a better way to capture greater value for your hard work?

A smooth, automated, data-driven technology toolset can optimize your life. It will create an opportunity for a better work/life balance, and perhaps most importantly, give you the ability to spend more of your time at work doing what you love: practicing the law.

Click here to join TC Whittaker, leader of PwC’s Law Firm Solutions, and preeminent legal technology journalist Bob Ambrogi on Wednesday, August 21, at 1 p.m. EST for an invaluable look at how your small law practice can succeed in this digital era.

Public Consultations on the Freedom of Information Bill – The Zimbabwean

PARLIAMENTARY COMMITTEES SERIES 31/2019

Public Consultations on the Freedom of Information Bill

Parliament has in notices published today announced that the National Assembly’s Portfolio Committee on Information, Media and Broadcasting Services will hold public consultations on the Freedom of Information Bill (H.B. 6, 2019) from 19th August 2019 to 30th August 2019.

The Committee will cover various areas as follows:

Date Place Venue Time of Public Hearing
Monday
19 August
Harare

Bindura

New Ambassador Hotel

Hala Africa Kimberly Hotel

0900 hrs

1400 hrs

Tuesday
20 August
Marondera Mbuya Nehanda Hall 0800 hrs
Wednesday
21 August
Penhalonga/Tsvingwe Methodist Church Hall 0900 hrs
Thursday
22 August
Masvingo Civic Centre 0900 hrs
Tuesday
27 August
Plumtree

Bulawayo

Dingumuzi

Bulawayo City Hall

1000 hrs

1430 hrs

Wednesday
28 August
Tsholotsho St. Joseph’s The Worker Mission 1000 hrs
Thursday
29 August
Kwekwe

Kadoma

Mbizo Youth Centre

Rimuka Hall

1100 hrs

1430 hrs

 

Attendance

The public, interested groups and organizations are invited to attend these consultations.

But all those wearing military uniforms, signs of ranks, flags or badges and political party regalia will not have access to the public hearing.

Written submissions

Written submissions and correspondences are welcome and should be addressed to:

The Clerk of Parliament

Attention: Portfolio Committee on Information, Media and Broadcasting Services

P.O. Box CY 298

Causeway

Harare

Submissions can also be made by email through email address [email protected]

Queries

Telephone: (024) 2700181-8, 2252936-50

Maria Hlasera (Committee Clerk) Ext. 2062

  1. Njovana (Public Relations Officer) Ext. 2236

Fax: (024) 2252935

About the Freedom of Information Bill

Soft copies of the Bill are available on the Veritas website [link].  Also available on the website is our e-bulletin Bill Watch 40/2019 [link] which contains comments on the Bill.

Veritas makes every effort to ensure reliable information, but cannot take legal responsibility for information supplied.

Eskom begins 400MW power supply to Zimbabwe

Post published in: Featured

Eskom begins 400MW power supply to Zimbabwe – The Zimbabwean

9.8.2019 14:36

Eskom began exports of 400 megawatts into Zimbabwe on Friday, easing a protracted power crisis characterized by daily outages lasting up to 18 hours.

State-owned Zesa Holdings expects less electricity demand and sees the amount of time without electricity “definitely” falling, spokesman Fullard Gwasira said by phone from the capital, Harare.

“We are currently receiving 400 megawatts from Eskom, most of our power stations are also running and the temperatures are also beginning to pick up and so some of the winter gadgets are beginning to be switched off,” Gwasira said.

Zimbabwe owes Eskom $23m in unpaid bills and its Treasury has committed to weekly payments of $890 000 to clear the debt. Officials from the South African company didn’t immediately respond to queries on the power supply.

Public Consultations on the Freedom of Information Bill
Zimbabwean tourism minister sacked

Post published in: Business

RBC Capital Markets Rumored To Be Hard Passing On 70% Of Its Summer Associates

We sense a trend, you guys.

Prominent Bar Association Sued Over Pregnancy Discrimination

On Wednesday, a lawsuit was filed against the New York County Lawyers Association by a former employee alleging she was subjected to discrimination once she became pregnant. Heidi Leibowitz was a fee dispute program administrator for the bar association who was hired in 2005, but she says she experienced discriminatory behavior — including being taunted by coworkers, being unable to freely use the restroom, and being given additional strenuous tasks — when she became pregnant in 2013.

As reported by Law.com, the complaint alleges during her first pregnancy Leibowitz was asked to move boxes, a task that she wasn’t previously assigned, was only given 15 minutes to pump in a bathroom when she returned to work, and her superiors made derogatory comments about her pregnancy:

The first time she became pregnant, Leibowitz alleged, she was assigned arduous tasks that she wasn’t assigned before, such as retrieving boxes from a basement. After giving birth, she said, she could initially only pump breast milk in the bathroom and was only given 15 minutes to do so. After complaining, she was given access to a conference room, but it was rarely available for use, she said.

“Both defendants’ managing director and director repeatedly [asked] plaintiff whether she planned on having any more kids and ‘how many babies do you people have!,’ among numerous other snide and degrading remarks,” her suit claims.

The complaint alleges the poor treatment continued during Leibowitz’s second pregnancy when she was also allegedly told to stop taking so many bathroom breaks despite repeatedly needing to throw up during that time.
Plaintiff’s attorney, Christopher Van De Water of the Van De Water Law Firm, provided this comment about the litigation, “Discrimination in the present culture shouldn’t be tolerated under any circumstances, especially in the context of a woman’s pregnancy.” NYCLA has not yet commented on the matter.


headshotKathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).

North Carolina Court Says Retaliatory Arrests Over Protected Speech Are Cool And Legal

Hey, SCOTUS says it’s OK so it must be OK. Via Greg Doucette comes another WTF decision[PDF] — one that gives North Carolina cops the green light to engage in retaliatory arrests over protected speech.

It’s not like there’s no case law to work with. The Eighth Circuit Appeals Court denied immunity to an officer who arrested someone for shouting “Fuck you!” at him as they drove by. Other federal courts have come to the same conclusion: flipping the bird/dropping f-bombs in the direction of police officers is protected speech and cannot form the basis for traffic stops or arrests.

In the state court of appeals, North Carolina judges have come to pretty much the same conclusion our nation’s top court did: so long as an officer can imagine a crime has been committed, they’re allowed to detain and arrest people who have offended them with their words and/or hand gestures.

And what a glorious hand gesture it must have been. Even the court’s dry recounting of the event manages to paint a vivid picture of the event that kicked off this debacle.

The trooper was assisting a stalled motorist on the side of U.S. Highway 52 in Albemarle County. While assisting the motorist, the trooper noticed a group of passing vehicles, including an SUV. The trooper observed Defendant stick his arm out of the passenger window of the SUV and make a hand-waving gesture in the trooper’s general direction. The trooper then observed Defendant change the gesture to an up-and-down pumping motion with his middle finger extended. The trooper was unsure at whom Defendant was gesturing. In any event, the trooper returned to his patrol car, pursued the SUV, and pulled the SUV over.

If the trooper initiated a pursuit over a hand gesture, chances are the trooper felt very strongly the Defendant was hand gesturing at him. After some back-and-forth and background checks, the trooper decided to arrest the passenger of the vehicle for resisting, delaying and/or obstructing a public officer during a traffic stop. That’s what the court records say. In reality, it was a “contempt of cop” arrest predicated by a contemptuous — but protected — hand gesture.

The court doesn’t even discuss the fact that the trooper’s stated reason for the arrest — the passenger’s refusal to provide ID to the trooper — isn’t even a criminal act. Vehicle passengers in North Carolina are under no obligation to provide ID during traffic stops.

[I]f you are operating a motor vehicle and are stopped by a police officer, you are required to produce your driver’s name/license/identification upon request. North Carolina General Statutes 20-90. Failure to do so is punished as a Class 2 misdemeanor, which carries a maximum penalty of up to 60 days in jail. Additionally, in some cases, if you do not produce identification, you may be charged with resisting an officer, which is a Class 2 misdemeanor, which carries a maximum penalty of up to 60 days in jail. This law applies to drivers of vehicles. It does not apply to passengers. Unless other circumstances exist, officers typically cannot require a passenger to produce identification during a traffic stop.

It doesn’t appear there were any “other circumstances” during this retaliatory stop.

The trooper approached the SUV and observed Defendant and his wife, who was in the driver’s seat, take out their cell phones to record the traffic stop. The trooper knocked on Defendant’s window, whereupon Defendant partially rolled it down. The trooper asked Defendant and his wife for their identification. Defendant and his wife, however, asked the trooper why they had been stopped and stated that the trooper had no right to stop them. Eventually, Defendant’s wife gave the trooper her license, but Defendant refused to comply.

The trooper requested that Defendant step out of the vehicle, and Defendant eventually stepped out onto the side of the road. The trooper then handcuffed Defendant and placed him into his patrol car. While in the patrol car, Defendant gave the officer his name. The trooper ran warrants checks and obtained no results for Defendant nor his wife. The trooper then issued Defendant a citation for resisting, delaying, and obstructing an officer and allowed Defendant and his wife to leave.

All of this is fine with the state appeals court, which overlooks the lack of a criminal act in favor of giving the state’s law enforcement an easier way to punish people for offending them. Reasonable suspicion — at least in this court’s hands — has nothing to do with reasonableness. If the word “reasonable” is supposed to be pronounced “idiotic,” then the following paragraph makes a lot more sense.

Here, without having to determine whether Defendant’s conduct of extending his middle finger, in itself, constituted a crime, we conclude that the trooper had reasonable suspicion to initiate the stop of Defendant. The trooper saw Defendant make rude, distracting gestures while traveling on a highway in a moving vehicle in the vicinity of other moving vehicles. A reasonable, objective officer having viewed Defendant’s behavior could believe that a crime had been or was in the process of being committed. For instance, the crime of disorderly conduct in North Carolina is committed where a person “makes or uses any . . . gesture . . . intended and plainly likely to provoke violent retaliation and thereby cause a breach of the peace.” N.C. Gen. Stat. § 14-288.4(a)(2) (2017). Defendant’s actions, both his waving and middle finger taken together, aimed at an unknown target could alert an objective officer to an impending breach of the peace.

This is quite a judicial stretch. Anyone extending a middle finger at anyone/anything within eye-shot of a cop could be on the verge of “disturbing the peace” and should probably be arrested… before the peace is actually disturbed?

When the standard for “reasonable suspicion” is “literally anything,” litigants have almost zero chance of prevailing when suing over retaliatory arrests. At least the Supreme Court demanded the higher standard of “probable cause,” which isn’t quite as flexible as “reasonable suspicion.”

The court made this determination despite the state offering up an even stupider legal rationale to excuse this bullshit arrest. The court doesn’t like it, but the state isn’t the one appealing so its meritless argument ultimately has no effect on the outcome. But here it is, along with the court’s response:

We note that the State made no argument on appeal that the trooper’s stop was justified by the presence of “reasonable suspicion.” Specifically, in its brief and during oral argument, the State essentially contends only that the trooper’s traffic stop was justified under the “community caretaking” exception, which allows an officer to initiate a stop even without the presence of reasonable suspicion of criminal conduct. State v. Sawyers, ___ N.C. App. ___, ___,786 S.E.2d 753, 758 (2016). But it is hard for us to fathom why the trooper would have believed that Defendant and his wife were in need of care at the point that Defendant refused to provide his identification. Indeed, the middle finger is, universally, not a sign of distress. And even if there was some basis to make the initial stop based on some concern for Defendant’s or his wife’s safety, any such concern rapidly dissipated when the officer observed their filming and protesting the stop as he approached the SUV, well before he asked Defendant for his identification.

That’s stupid, but the court’s findings in this case aren’t that much smarter. There is a dissenting opinion, for what it’s worth. Judge Arrowood says there’s nothing reasonable about the court’s take on “reasonable suspicion.” Nothing about a drive-by bird flip adds up to a potential disturbing of the peace.

In the case sub judice, the adult defendant was in a moving car at midday, and there was no danger of a gathering crowd creating a public disturbance. There is also no testimony or indication that anyone other than the trooper, the person to whom the obscene gesture was directed, saw it. There was also no indication that the vehicle was creating any danger to other motorists on the road.

[…]

I do not believe that this action was sufficient to justify the trooper in becoming alert “to a potential, future breach of the peace,” because he did not see any evidence of aggressive driving or other interactions between the vehicles on the road that would suggest road rage. If that was truly his concern he could have followed the vehicle further to see if there was evidence of some road rage toward other vehicles. He did not do so, nor did he testify that he saw any improper driving. He chose not to take any actions to determine if road rage was occurring. Instead, he initiated an improper search and seizure to engage in an improper fishing expedition to find a crime with which to charge the defendant who had directed an obscene gesture to him moments earlier.

Too bad it’s just a dissent. The majority should have arrived at the same conclusion, rather than give officers another way to abuse the citizens they serve.

NYPD, Prosecutors Illegally Using Expunged Criminal Records To Perform Investigations, Ask For Longer Sentences
Ring Is Teaching Cops How To Obtain Doorbell Camera Footage Without A Warrant
North Carolina Court Says Retaliatory Arrests Over Protected Speech Are Cool And Legal
Another Day, Another Company Leaving Sensitive User Data Exposed Publicly On The Amazon Cloud

Morning Docket: 08.09.19

Photo by Pete Marovich/Getty Images

* Have we not yet talked about Andrew McCabe? I guess we have people who don’t get how news works. [NPR]

* This isn’t about the law it’s just about racism. [Esquire]

* Everybody’s got friends we’re not proud of. [American Lawyer]

* Grandma’s got this on lockdown. [Law360]

* We got a Perry Mason series coming? [Daily Breeze]

* Waiting on Agents of SHIELD to fix discrepancies. [CBR]

Zimbabwean tourism minister sacked – The Zimbabwean

Emmerson Mnangagwa, Zimbabwe’s president

Prisca Mupfumira is facing seven corruption charges linked to $94 million missing from the country’s pension fund.

She was “removed … from the office of cabinet minister and minister of government with immediate effect”, the statement said, without giving further details.

Mupfumira was arrested by the Zimbabwe Anti-Corruption Commission in July, becoming the first sitting minister of the ruling Zanu-PF party to be jailed for graft under Mnangagwa’s new administration.

Mupfumira was sacked as social welfare minister by ex-president Robert Mugabe weeks before a military-led coup that toppled the long-time ruler in November 2017.

After the putsch she was re-appointed with a new portfolio .

Mnangagwa has identified endemic corruption as a major contributor to the country’s economic woes and vowed to root it out.

Zimbaweans face 182% hike in mobile call tariffs

Post published in: Business