Kang Haggerty News

Legal Intelligencer: IT Security and Policy: Why All Lawyers Must Care About It

March 15, 2019 | Edward T. Kang

In the March 21, 2019 edition of The Legal Intelligencer, Edward Kang, Managing Member of Kang Haggerty wrote “IT Security and Policy: Why All Lawyers Must Care About It.”

Several years ago, my insurance broker suggested I get cybersecurity insurance for my firm. It seemed a cybersecurity insurance policy was unnecessary, not much different from having an undercoating for a new car. That was then. Now, the benefits of having a cybersecurity insurance policy are not reasonably in dispute these days. In addition to having the security of insurance, another (and more important) benefit of getting a cybersecurity insurance policy was the requirement that I have an IT security and breach policy that deals with how to prevent a security breach and what to do if there is a security breach. While getting a cybersecurity insurance policy may still remain an option for many, having an IT security policy describing detailed procedures to protect against a cybersecurity attack (and what to do when the system is breached) is a must.

Need for Cybersecurity Measures

Social Media and the SEC: Elon Musk is Still Tweeting

March 1, 2019 | Jacklyn Fetbroyt

32891617344_251b416fd3_o-1024x512-1 Social media continues to grow as the powerhouse of information flow in modern times, and while it often seems no one is policing the content and fact and fiction are often indistinguishable, the SEC is policing the statements of at least one social media influencer, Elon Musk. After Musk tweeted in August of 2018 that he had secured financing to take Tesla private at $420 per share, the SEC filed a complaint alleging that his tweets comprised a series of “false and misleading statements” to his millions of followers. The resulting court-approved settlement, reached in October, stipulated that Musk had to seek pre-approval of any written communications – including social media posts – that contained or reasonably could contain information material to Tesla or its shareholders. In connection with the settlement, Tesla and Musk were each required to pay $20 million to the SEC.

Just days ago, Musk was back under scrutiny, having tweeted, “Tesla made 0 cars in 2011, but will make around 500k in 2019” without pre-approval from his counsel and for that, the SEC filed an enforcement motion seeking to have Musk held in contempt. Continue reading ›

Kang Haggerty Sponsors Voorhees Business Association Bowling Fundraiser

February 27, 2019 | Kang Haggerty LLC

Member Jackie Fetbroyt sits on the board of the Voorhees Business Association and chairs the Bowling Fundraising Event Committee. Kang Haggerty is a proud “Spare” sponsor, and looks forward to the event on April 5, 2019 at The Big Event in Cherry Hill, NJ. Learn more about the event and the VBA’s philanthropic activities in this video.

Legal Intelligencer: The Erosion of Due Process for Public Figures in the #MeToo Era

February 13, 2019 | Kandis Kovalsky

By the YL Editorial Board

Legal Intelligencer: US Supreme Court Settles the ‘Wholly Groundless’ Exception. Or Has It?

January 24, 2019 | Edward T. Kang

In the January 24, 2019 edition of The Legal Intelligencer, Edward Kang, Managing Member of Kang Haggerty wrote “US Supreme Court Settles the ‘Wholly Groundless’ Exception. Or Has It?”

In a recent article I co-authored, I discussed the “wholly groundless” exception to delegation clauses under the Federal Arbitration Act, “Should an Arbitrator Determine Arbitrability Where a Claim Is ‘Wholly Groundless’?” The Legal Intelligencer (July 26, 2018). There, I discussed the circuit split on this issue and that the U.S. Supreme Court would soon decide this issue for good. And the court has.

On Jan. 8, writing for a unanimous court in his first written opinion, Justice Brett Kavanaugh held that the wholly groundless exception to arbitrability is inconsistent with the FAA and, therefore, no such exception exists, see Henry Schein v. Archer & White Sales, ___ S.Ct. ___, 2019 WL 122164 (Jan. 8, 2019). The court held “when the parties’ contract delegates the arbitrability question to an arbitrator, a court may not override the contract, even if the court thinks that the arbitrability claim is wholly groundless.” In concluding this, the court stated, “the act contains no ‘wholly groundless’ exception, and we may not engraft our own exceptions onto the statutory text.”

Legal Intelligencer: Defending Officers and Directors From a Lawsuit by the Company

January 7, 2019 | Edward T. Kang

In the January 3, 2019 edition of The Legal Intelligencer, Edward Kang, Managing Member of Kang Haggerty wrote “Defending Officers and Directors From a Lawsuit by the Company.”

When a corporate director or officer is sued by a third party for alleged misconduct carried out in her capacity as director/officer, the company generally indemnifies the director/officer by defending her against the lawsuit. The company’s duty of indemnification arises from both the law and governing corporate documents (e.g., articles of incorporation, bylaws or employment agreement). While there are limited exceptions to the company’s duty of indemnification—e.g., the director/officer acted in her personal capacity or that she acted in bad faith against the interest of the company—the duty of indemnification is broad. The company must defend the director/officer, at least until the court determines otherwise. What protection does a corporate director/officer have, however, if the person suing her is the company itself?

A company sues its officer or director more frequently than many people think. The company could bring a direct lawsuit against an officer or director for a breach of fiduciary duty (e.g., alleged self-dealing). Sometimes, a shareholder could bring a derivative lawsuit under the company’s name against the officer or director. Continue reading ›

#KHFOnEmojisandtheLaw

January 4, 2019 | Kang Haggerty LLC

Emoji overload? Billions of emojis are sent each day by family, friends, colleagues, co-workers and companies. With nearly 3,000 emojis in the Unicode Standard, it is difficult to stay fluent in emoji, which some experts have described as “the birth of a new language.” Edward T. Kang, Managing Member of Kang Haggerty LLC (“Kang Haggerty”) and Kandis L. Kovalsky, Associate at Kang Haggerty are working to shed light on the significance of emojis in business and in law.

At the end of September, Edward, Kandis and Jacklyn Fetbroyt, Member of Kang Haggerty, joined hundreds of other lawyers at the 2018 Annual Meeting of the National Association of Minority and Women Owned Law Firms (“NAMWOLF”) to promote diversity in the legal profession through meetings, sessions and CLEs. Kang Haggerty presented a hit CLE to a full room titled “Emojis Speaking Louder Than Words? The Import of Emojis, Emoticons and Hashtags as Evidence at Trial and Beyond #😊.” Joined by five other panelists and a moderator, Edward discussed evidentiary and ethical issues involving emojis, social media and technology and why lawyers should care about emojis and hashtags.

By explaining how emojis can be used as critical evidence at trial, Edward and the other panelists helped practicing lawyers from all over the country understand that emojis are in more than a millennial’s social media feed. Emojis have found their way into courts through a variety of suits. Continue reading ›

Legal Intelligencer: Pa. Law Firms Must Learn From the Past to Improve Diversity in the Future

December 12, 2018 | Kang Haggerty LLC

In the December 11, 2018 edition of The Legal Intelligencer, Tianna K. Kalogerakis, Associate of Kang Haggerty authored “Pa. Law Firms Must Learn From the Past to Improve Diversity in the Future.”

After nearly 175 years, there is still much progress to be made in law firm diversity. The Philadelphia legal community should not underestimate the impact changing institutions has on creating opportunity for individuals.

A mere four years after The Legal Intelligencer’s founding in 1843, the story of blacks seeking admission to the legal profession in Pennsylvania began. Despite nearly 175 years of black Pennsylvania lawyers overcoming obstacles to entry of the legal profession, institutional barriers persist, leaving blacks and other minorities in the state still in search of meaningful access in the legal profession. In 2018, law firms that are not intentional about cultivating diversity may be unintentionally discriminating against diverse candidates.

To tell the story of diversity in the legal profession—specifically when discussing the black lawyer—one must first acknowledge the role of slavery in America. People of color were held in bondage for decades against their will and the ownership of humans by other humans was sanctioned by the laws of this country. Enslavement and discrimination of individuals based on their skin color was codified into our federal and state systems of government and dictated the daily interactions of individuals. These codifications and the resulting caste system became the foundations of the institutional barriers minorities continue to face today. Continue reading ›

Beth Hurley and Mika Kapnoutzi Join Kang Haggerty

December 5, 2018 | Kang Haggerty LLC

Philadelphia, PA (December 5, 2018): Kang Haggerty LLC, a business litigation boutique with offices in Philadelphia, PA and Marlton, NJ is pleased to announce the additions of associate Beth A. Hurley and law clerk Mika Kapnoutzi.

Beth Hurley, Left and Mika Kapnoutzi, Right

Beth Hurley concentrates her practice in Business Litigation, Class Action and Commercial Litigation. She earned her J.D. from the Fordham University School of Law in 2004 after graduating with a B.A. from the University of Pittsburgh. Prior to joining Kang Haggerty, Beth gained extensive litigation experience, serving as an Assistant District Attorney in Bucks County, PA, and Brooklyn, NY. In addition, she worked as an investigative attorney for the Brooklyn District Attorney’s Office, and prosecuted cases involving economic crimes, enterprise corruption, organized crime and environmental crimes. She is admitted to the practice of law in Pennsylvania and New York.

Have the Courts Made Room for Inevitability Under the Defend Trade Secrets Act?

November 29, 2018 | Edward T. Kang and Kandis Kovalsky

In the November 29, 2018 edition of The Legal Intelligencer Edward Kang, Managing Member of Kang Haggerty and Kandis Kovalsky, Associate of Kang Haggerty, co-authored “Have the Courts Made Room for Inevitability Under the Defend Trade Secrets Act?”

The Defend Trade Secrets Act (DTSA), 18 U.S.C. Section 1836, et seq., which was enacted on May 11, 2016, after a Senate vote of 87-0, is the first federal law to protect trade secrets. The rare unanimous vote was unsurprising given the stunning report by the Commission on the Theft of American Intellectual Property that outlined how theft of intellectual property costs U.S. businesses more than $300 billion a year.

The DTSA highlighted Congress’ goal of aligning the federal law closely with the Uniform Trade Secrets Act (UTSA), which has been adopted in some form in almost every state. Just as the Lanham Act, which coexists with state trademark law, the DTSA coexists with state trade secret law. As such, it is important to understand this interplay and what it is likely to look like going forward. Continue reading ›

Firm News

Need for Cybersecurity Measures

After nearly 175 years, there is still much progress to be made in law firm diversity. The Philadelphia legal community should not underestimate the impact changing institutions has on creating opportunity for individuals.