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 -----Original Message-----
From: 	"BNA Highlights" <bhighlig@bna.com>@ENRON  
Sent:	Monday, November 26, 2001 11:32 PM
To:	BNA Highlights
Subject:	Nov. 27 -- U.S. Law Week's Legal News

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THE U.S. LAW WEEK'S LEGAL NEWS
Highlights & Table of Contents
November 27, 2001
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ISSN 1522-4317

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HIGHLIGHTS
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THIRD CIRCUIT TASK FORCE URGES ONLY LIMITED USE OF AUCTIONS
TO PICK CLASS COUNSEL; JUDGES CRITICAL OF REPORT'S
NEGATIVITY

Judicially controlled auctions for the selection of counsel
in class actions should be used only in "certain limited
circumstances," according to a draft report issued by the
Third Circuit Task Force on Selection of Class Counsel. An
auction might be appropriate for a case in which the
defendant's liability appears clear, damages appear to be
both very large and collectible, and the lead plaintiff is
not a sophisticated litigant that has already retained
counsel of its choice through a reasonable, arm's-length
process, the task force suggests.

Several judges criticize the report as being too hostile
toward the innovative idea of competitive bidding for
selecting class counsel. The judges, participating in a
panel discussion at the 2001 Third Circuit Judicial
Conference, say the report is "too restrictive." For
instance, the task force should encourage more
experimentation with the process of setting fees at the
outset of litigation rather than waiting until the end, one
judge suggests. But others, who agree with the tenor of the
report, say bidding is overrated as a means of keeping
counsel fees reasonable. . . . Page s 2326,  . . . Page 2318

http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y4v7f3_

http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y5h8x8_


NEW YORK BAR PROPOSES AMENDING ABA MODEL RULES TO ALLOW
CAREFULLY REGULATED MULTIDISCIPLINARY ALLIANCES

The New York State Bar Association files a proposal with the
American Bar Association recommending amendment of the Model
Rules of Professional Conduct to allow limited and carefully
regulated "contractual relationships" and other affiliations
between lawyers and nonlawyers who want to offer their
clients integrated multidisciplinary services.

Foremost among the safeguards being advocated by the New
York bar are measures that would prohibit nonlawyers from
holding any ownership or managerial interest in law firms;
sharing legal fees with lawyers; directing or regulating the
professional judgment of lawyers; or compromising in any
other way a lawyer's duty to safeguard client interests. The
proposal is patterned on recent amendments to the New York
Code of Professional Responsibility allowing such
affiliations. . . . Page 2315

http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y7t2u6_


INS ADOPTS INTERIM PROCEDURES FOR ADJUDICATING CASES OF
UNREMOVABLE ALIENS SEEKING RELEASE FROM DETENTION

The Immigration and Naturalization Service issues an interim
rule governing detention of aliens who are subject to final
orders of removal but cannot likely be removed in the
foreseeable future because no country will accept them. The
rule responds to the U.S. Supreme Court's recent "Zadvydas"
decision, which held that, absent special circumstances, the
attorney general lacks authority to detain such aliens
indefinitely.

The rule specifies procedures for aliens who have been
detained beyond the statutory 90-day removal period to
demonstrate that their removal is unlikely in the reasonably
foreseeable future. Aliens seeking relief must make a
threshold showing that they have cooperated with the INS's
efforts to effect their removal. Aliens who prevail on such
claims must be released, subject to conditions of
supervision, unless "special circumstances" would render
release dangerous. . . . Page 2321

http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y5e1v0_


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IN THIS ISSUE
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A complete topical index of Legal News.

ATTORNEYS: The ABA ethic's committee says it is not
unethical for a former in-house corporate counsel to pursue
a wrongful discharge action against her ex-employer so long
as the lawyer does not reveal more client information than
reasonably necessary to establish the claim. . . . Page 2315

http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x5z9h9_

ATTORNEYS: The New York bar proposes amending the ABA Model
Rules to allow regulated multidisciplinary alliances. . . .
Page 2315

http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y7t2u6_

BANKING: The Treasury Department issues interim guidelines
to help financial institutions comply with provisions of the
new money laundering law relating to correspondent bank
accounts that take effect next month. . . . Page 2317

http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y7t2j0_

BANKRUPTCY: Congress may, separately from long-pending
comprehensive bankruptcy reform legislation, address banks'
use of financial derivatives, as well the possible permanent
extension of Chapter 12 of the Bankruptcy Code. . . . Page
2317

http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y7t2f5_

CIVIL PROCEDURE: The Third Circuit Task Force on Selection
of Class Counsel issues a draft report suggesting only
limited use of auctions to pick class counsel. . . . Page
2326

But several judges say the report reflects an overly adverse
view of competitive bidding as a selection tool. . . . Page
2318

http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y4v7f3_

http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y5h8x8_

EMPLOYEE BENEFITS: The House passes legislation to allow
financial institutions that administer qualified
employer-sponsored defined contribution retirement plans to
provide investment advice to plan participants without
employers being liable for specific advice. . . . Page 2319

http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y4u2y5_

EMPLOYMENT DISCRIMINATION: The Equal Employment Opportunity
Commission advises its district directors to continue
processing and investigating disability discrimination
charges against state government employers, despite a U.S.
Supreme Court ruling that individuals can no longer sue
those employers for monetary relief under the Americans with
Disabilities Act. . . . Page 2320

http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y6r9m0_

IMMIGRATION: The Immigration and Naturalization Service
issues an interim rule establishing procedures for
adjudicating the release of aliens who are subject to final
orders of removal but cannot likely be removed in the
foreseeable future because no country will accept them. . .
. Page 2321

http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y5e1v0_

JUDGES: Legal professionals attending a national symposium
on the reform of judicial elections say the election process
is becoming "nastier, noisier and costlier," but that the
options for reforming the election process carry their own
problems and may not even be constitutional. . . . Page 2322

http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y3d6a0_

OCCUPATIONAL SAFETY: The Occupational Safety and Health
Administration reaches an agreement with the National
Association of Manufacturers that will settle NAM's lawsuit
over the safety agency's revised recordkeeping rule. Under
the agreement, OSHA, during the first 120 days the
regulation is in effect, will refrain from enforcing the
regulation and instead focus on compliance assistance. . . .
Page 2323

http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y6q2f4_

OCCUPATIONAL SAFETY: The Department of Labor issues
guidelines for employers to use when responding to anthrax
exposure. The guidance document, which creates no new
requirements, is intended to help employers determine
appropriate equipment and work practices. . . . Page 2323

http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y5t1w7_

SECURITIES: An American Bar Association task force will
submit to the Securities and Exchange Commission a letter
recommending significant changes to the controversial
Regulation FD, the fair disclosure rule requiring public
companies, in disclosing material information, to announce
such information to the public at large rather than to
select groups, such as analysts. . . . Page 2324

http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y7a7k7_

TAXATION: The Senate votes to extend the Internet tax
moratorium by two years, but declines to address online
sales tax concerns, leaving it up to the states to develop a
more streamlined system for the collection and distribution
of sales and uses taxes stemming from online sales. The
legislation, already approved by the House, will almost
certainly be signed by the president. . . . Page 2324

http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y7a7p8_


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