Legal Intelligencer Tag Archives — Page 7 of 10

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 ›

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 ›

Legal Intelligencer: When Noncompete Agreements Involve Competing Laws

November 8, 2018 | Edward T. Kang and Kandis Kovalsky

In the November 8, 2018 edition of The Legal Intelligencer, Edward T. Kang, Managing Member of Kang Haggerty and Kandis Kovalsky, Associate of Kang Haggerty, co-authored “When Noncompete Agreements Involve Competing Laws.”

These days, it is common for companies headquartered or principally located in one city and state to have multiple offices and employees throughout many cities and states in the country, and even the world. Companies in this position will often require their employees to sign contracts with both forum selection clauses and choice of law provisions. The forum selected is usually where the company is headquartered or principally located. Likewise, the choice of law provision often calls for application of the laws of the forum state. Companies have a strong interest in uniformity and predictability when it comes to legal disputes. Litigating matters in different courts throughout the country under different laws is not something that is desirable or productive.

In situations where employers also make their employees, or certain employees, agree to restrictive covenants, particularly noncompetes, companies expect the same uniformity and predictability regarding their enforceability as to each employee, regardless of where the employee works or lives. Employees, on the other hand, often expect (as we learned through a recent case) that even with another state’s choice of law provision, they will still be afforded the protection of the laws of their own state. This disconnect is no clearer than where non-California headquartered companies hire California residents as employees and require them to sign noncompetes governed by another state’s law. In California, noncompete agreements are generally unenforceable (with some limited exceptions). This is well-known, particularly by California residents. So, what happens in this situation if the California employee violates their noncompete? Continue reading ›

Legal Intelligencer: Why Lawyers Should Care About Emojis

October 18, 2018 | Edward T. Kang and Kandis Kovalsky

In the October 18, 2018 edition of The Legal Intelligencer, Edward Kang, Managing Member of Kang Haggerty and Kandis Kovalsky, Associate of Kang Haggerty, co-authored, “Why Lawyers Should Care About Emojis.“

Today, there are close to 3,000 emojis in the Unicode Standard. As such, people can communicate a lot more through emojis, if they choose. And, the data shows this is what people are choosing.

Although emojis have been included in smartphone operating systems for more than a decade, they are just starting to make their way into the world of litigation. While Apple’s emoji debut consisted of 54 emojis, made up primarily of different yellow smiley faces, iPhone now offers its users a broad range of hundreds of emojis, representative of different races, genders, cultures and religions. Today, there are close to 3,000 emojis in the Unicode Standard. As such, people can communicate a lot more through emojis, if they choose. And, the data shows this is what people are choosing. Over 10 billion emojis are sent each day throughout the world. Approximately 92 percent of all people who communicate online or through text messages on a smartphone use emojis, with more than one-third of them using emojis daily. Analysts have referred to the uptick in emoji use as “watching the birth of a new language.”

In 2015, emojis were mentioned in 14 federal and state court opinions. This number increased to 25 in 2016 and 33 in 2017. With the rules of the profession (Rules of Civil Procedure, Rules of Professional Conduct, Rules of Evidence) changing—slowly, albeit surely—to address the advent of social media and electronic communications, it is important to understand how emojis fit into the current legal landscape.

Kalogerakis Named to “Philadelphia’s Most Influential African Americans” List; Featured in Legal Intelligencer Q&A on Barristers’ Leadership

September 24, 2018 | Kang Haggerty LLC

Kang Haggerty associate Tianna Kalogerakis was recently named to the Philadelphia Tribune’s annual “Philadelphia’s Most Influential African Americans” list. The Tribune, the nation’s oldest and greater Philadelphia’s largest newspaper serving the African-American community, honored this year’s recipients during a reception and awards program at the Pennsylvania Convention Center.

Kalogerakis was also featured in New Phila. Barristers’ President Stresses Legacy, Community Service, in ALM’s The Legal Intelligencer. In an extensive Q&A with reporter Max Mitchell, the newly-elected Barristers’ Association of Philadelphia president discusses the balancing act between heading the 1,000-member strong bar association and transitioning from judicial clerk to litigation boutique attorney at Kang Haggerty LLC.

Legal Intelligencer: Borrowing Statute: NY’s Bar to the Unsuspecting, Out-of-State Investor

September 7, 2018 | Edward T. Kang

In the September 6, 2018 edition of The Legal Intelligencer, Edward Kang, Managing Member of Kang Haggerty, and Tianna Kalogerakis, Associate of Kang Haggerty, co-authored “Borrowing Statute: NY’s Bar to the Unsuspecting, Out-of-State Investor.”

Despite the plaintiff-friendly pleading standards for securities fraud outlined by the Supreme Court in Merck & Co. v. Reynolds, 130 S. Ct. 1784 (2010), out-of-state investors need to be particularly vigilant in pursuing fraud-related common law claims in New York, being careful not to become blocked by the borrowing statute.

New York City is home to the world’s largest stock exchange, the New York Stock Exchange, and is host to financial service providers. This concentration of wealth and financial expertise has enticed many out-of-state investors to place their money in securities with New York-based financial institutions in the prospect of riches; however, coupled with the influx of these out-of-state investments is the potential for legal action by each dissatisfied or defrauded investor. New York developed the “borrowing statute” to protect its residents and deter actions by nonresidents including out-of-state investors in securities and commodities. Despite the plaintiff-friendly pleading standards for securities fraud outlined by the Supreme Court in Merck & Co. v. Reynolds, 130 S. Ct. 1784 (2010), out-of-state investors need to be particularly vigilant in pursuing fraud-related common law claims in New York, being careful not to become blocked by the borrowing statute.

Legal Intelligencer: Should an Arbitrator Determine Arbitrability Where a Claim Is ‘Wholly Groundless’?

July 26, 2018 | Edward T. Kang and Kandis Kovalsky

In the July 26, 2018 edition of The Legal Intelligencer, Edward Kang, Managing Member of Kang Haggerty, and Kandis Kovalsky, Associate of Kang Haggerty, co-authored “Should an Arbitrator Determine Arbitrability Where a Claim Is ‘Wholly Groundless’?”

While arbitration clauses are often a topic of concern in the consumer context, they can also be a major issue in sophisticated party transactions as well—the agreements where the arbitration clause is the least of everyone’s worries.

While arbitration clauses are often a topic of concern in the consumer context, they can also be a major issue in sophisticated party transactions as well—the agreements where the arbitration clause is the least of everyone’s worries. In these transactions, whether they be in the employment context or otherwise, arbitration clauses are often treated as a throwaway for which a simple copy-and-paste will do. At that forward-looking time, arbitration seems like a sensible method of dispute resolution between two like-minded people, and it is given little emphasis. When the relationships break down later, as they often do, arbitration clauses become a major issue. Too often, one side wants to be in court while the other does not. They argue whether their dispute is subject to arbitration.

Legal Intelligencer: Self-Authentication of ESI Under Federal Rule of Evidence 902

June 27, 2018 | Edward T. Kang and Kandis Kovalsky

In the June 21, 2018 edition of The Legal Intelligencer, Edward Kang, Managing Member of Kang Haggerty, and Kandis Kovalsky, Associate of Kang Haggerty, co-authored “Self-Authentication of ESI Under Federal Rule of Evidence 902.”

In a recent annual Federal Bench Bar Conference in Philadelphia, a U.S. District Court judge warned of the perils of allowing clients to perform their own data and document collection.

In a recent annual Federal Bench Bar Conference in Philadelphia, a U.S. District Court judge warned of the perils of allowing clients to perform their own data and document collection. As the judge wisely pointed out, this can be problematic as the lawyers owe a duty to the court to represent truthfully and accurately. If, for example, a client performed the data collection without proper supervision, the lawyer could not accurately represent that all responsive documents have been collected and produced. The 2015 amendments to Federal Rule of Civil Procedure 37 provide dire consequences for failing to preserve electronically stored information (ESI), including monetary sanctions, dismissal of a claim, judgment in favor of the prejudiced party, suppression of evidence and adverse inference instructions. The recent changes to Federal Rule of Evidence 902, which addresses self-authenticating evidence, and is routinely relied on by civil trial lawyers, raises additional concerns with clients performing their own data collection.

Self-authenticating evidence under Rule 902 is evidence that requires no extrinsic evidence to prove that it is what it purports to be. Common examples of self-authenticating evidence include newspapers, periodicals, signed and sealed public documents, and official publications. While the amendments to Rule 902 were created to address the unnecessary expense and inconvenience associated with having live testimony from multiple witnesses solely to authenticate electronic evidence, they also provide guidance on ESI collection and resolving authentication issues relating to ESI before trial.