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FDIC's New Power to Dissolve Companies Raises Concerns The Federal Deposit Insurance Corp.'s new power to take over and liquidate nonbank companies whose failure would jeopardize the financial system is intended as a "third way" between bankruptcy and bailout. But the prospect of a new regime for dissolving megacompanies -- one with almost no judicial oversight and in which creditors' rights are few -- is sending shockwaves through the bankruptcy bar. The FDIC is tackling nearly 40 major rulemakings to flesh out the details of the law, and Wall Street is waiting anxiously.

Legal Sector Gained 1,000 Jobs in August The Bureau of Labor Statistics' monthly employment report for August was released Friday and the news was still a bit glum overall -- the U.S. economy lost a total of 54,000 jobs. But the news for lawyers and legal industry employees was a bit brighter. The legal sector handed out 1,000 jobs last month, marking the second straight month of improved numbers for the industry. The country's overall unemployment rate inched up, from 9.5 percent to 9.6 percent.

Hodgson Russ Partners Sued Over Fla. Office Closure Claiming breach of contract and other charges, five former partners from the defunct Boca Raton, Fla., office of Hodgson Russ are suing top partners of the Buffalo, N.Y.-based law firm. The former Boca Raton partners insist they were blindsided by the firm's decision last year to close the office, which they claim violated their rights under the firm's partnership agreement. The shutdown came in the midst of mass layoffs at law firms nationally as the recession took its toll on client demand and legal fee collections.

Associate Tech Survey 2010: Less Tech Lowers Morale In a recession, should firms reduce tech investments to conserve cash or increase them to win a competitive advantage when the economy turns around? If your firm's goal is to boost tech-savvy associate morale, the results of the 2010 Associate Tech Survey say ramp it up.

Colonial Bancgroup Defeats FDIC Attempt to Assert $905 Million Priority Claim In a ruling that could have a significant impact on proceedings involving failed banks, the Federal Deposit Insurance Corp. has been rebuffed in its attempt to assert a $905 million priority claim against the holding company of the failed Colonial Bank. A federal bankruptcy judge in Alabama has ruled that the bank's bankrupt holding company, Colonial Bancgroup, could not be held liable for the shortfall in the bank's assets.

Kagan Indicates She'll Recuse in a 12th Pending Case When she was up for confirmation, Supreme Court Justice Elena Kagan provided the Senate with a list of 11 pending cases in which she would recuse because of her participation as solicitor general. In a routine order list issued Friday, Kagan indicated she was not participating in an additional case -- the vaccine liability case of Bruesewitz v. Wyeth, set for argument Oct. 12. But the government's brief in the case is signed by Acting Solicitor General Neal Katyal, so why would Kagan have recused?

Lawyer Accused of Impersonating Client's Dead Wife An Arizona attorney may face disciplinary action after an investigation found that she told a client she was channeling his dead wife, then lied about it during an unrelated disciplinary proceeding. The client testified that Charna Johnson pressured him to have a sexual relationship, although she told the investigator that the references to sex were coming from the deceased wife, not herself. The investigator's report recommends that Johnson be suspended for six months.

Coca-Cola Sued Over Vitaminwater Claims A federal suit has been filed under Florida's Deceptive and Unfair Trade Practices Act stating that Vitaminwater claims by Coca-Cola and a subsidiary are bunk. "Vitaminwater has been marketed as a 'nutrient-enhanced water beverage' that proclaims 'vitamins+water=all you need,'" the 15-page complaint reads. "In truth, Vitaminwater contains 33 grams of sugar." The lawsuit, which claims that Vitaminwater violates the FDA's "jellybean rule," is part of a burgeoning field attacking popular beverages' marketing and labeling.

Bid Fails for Class Certification in Subprime Securities Case A financial services company has defeated class certification in a New York federal lawsuit involving subprime securities. The defendant, First American subsidiary eAppraiseIT, conducted home appraisals in connection with Washington Mutual mortgage loans. First American shareholders, led by the Berks County, Pa., Employees' Retirement Fund, alleged that eAppraiseIT routinely overvalued homes so WaMu could close mortgage deals.

Judge Apologizes for Courtroom Rant, Says He Meant Well A New Jersey judge who subjected a pro se litigant to a tirade that an ethics tribunal calls "disrespectful and insulting" has apologized, but says he acted out of "desire to do justice to children." The judge was hearing cross-complaints by a woman and her husband for restraining orders. According to the tribunal, when the woman expressed concern about a temporary visitation schedule set for the husband and their child, the judge became irate, screamed at her, called her a bad parent and threatened incarceration.

Barring Hunters From Jury Panel Violates 'Batson,' N.Y. Judge Finds Batson v. Kentucky, the U.S. Supreme Court precedent that bars discrimination against potential jurors due to their race, gender or ethnic background, can also be used to protect the right of hunters to serve on juries, a New York judge has suggested. The judge called a halt to the trial of a hunter charged with assault for shooting another hunter after the defense attorney issued peremptory challenges to six of 35 potential jurors who had identified themselves as hunters.

What Good Is Remorse? Redemption through a showing of remorse is a common path in society -- but, ask Joel Cohen and Katherine A. Helm, what role does remorse play in a court of law? Can people get a second chance at being repatriated into the community if they are remorseful about their actions, after they've been caught and even convicted? Helm and Cohen examine a recent 2nd Circuit ruling that sheds some light on the issue.

A Key Question to Ask Law Firm Interviewers When it comes to Big Law jobs, Steven Harper has been on both sides of the interviewing table. Harper, an adjunct professor at Northwestern University and a retired Kirkland & Ellis partner, reveals the question he would ask today if he were a law student interviewing for a job, and why.