{"id":190225,"date":"2025-04-18T05:10:30","date_gmt":"2025-04-18T05:10:30","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/legal\/risk-reading-another-judicial-romance-conflict-called-out-litigation-funder-conflict-executive-action-updates-reputational-risk-more\/"},"modified":"2025-04-18T05:10:30","modified_gmt":"2025-04-18T05:10:30","slug":"risk-reading-another-judicial-romance-conflict-called-out-litigation-funder-conflict-executive-action-updates-reputational-risk-more","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=190225","title":{"rendered":"Risk Reading \u2014 (Another) Judicial Romance Conflict Called Out, Litigation Funder Conflict, Executive Action Updates, Reputational Risk &#038; More"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"post-8962\">\n<p>\t<!-- .entry-header --><\/p>\n<div class=\"entry-content\">\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-8985\" src=\"https:\/\/bresslerriskblog.com\/wp_bresslerriskblog\/wp-content\/uploads\/2025\/04\/2025_vader.jpg\" alt=\"\" width=\"480\" height=\"273\" srcset=\"https:\/\/bresslerriskblog.com\/wp_bresslerriskblog\/wp-content\/uploads\/2025\/04\/2025_vader.jpg 480w, https:\/\/bresslerriskblog.com\/wp_bresslerriskblog\/wp-content\/uploads\/2025\/04\/2025_vader-230x131.jpg 230w, https:\/\/bresslerriskblog.com\/wp_bresslerriskblog\/wp-content\/uploads\/2025\/04\/2025_vader-350x199.jpg 350w\" sizes=\"(max-width: 480px) 100vw, 480px\"\/><\/p>\n<p>David Kluft, Assistant Bar Counsel at Massachusetts Office of Bar Counsel, notes: \u201c<a href=\"https:\/\/law.justia.com\/cases\/federal\/district-courts\/new-jersey\/njdce\/2:2021cv11088\/472594\/179\/\"><strong>Tidbit: Can I represent both the litigant and the third party paying for the litigation?<\/strong><\/a>\u201d \u2014<\/p>\n<ul>\n<li>\u201cTwo individual defendants assigned an allergy skin test patent to a company, and the company agreed to indemnify them against lawsuits by the alleged inventor. The inventor sued the individuals (not the company), and the company paid for defense counsel.\u201d<\/li>\n<li>\u201cThe Court disqualified defense counsel for violation of 1.8(f) (conflicts of interest created by third party payor), because the same lawyers also had attorney client relationships with the company; because there was some evidence the third party was directing the litigation; because the conflict waivers had been inadequate; and because the indemnity agreement had a cap which would allow the company to stop paying, which did not satisfy the conditions for third party payors under NJ law.\u201d<\/li>\n<\/ul>\n<p>\u201c<a href=\"https:\/\/nysfocus.com\/2025\/04\/09\/ny-court-ethics-judge-kelly-zayas\"><strong>Top New York Judge\u2019s Son, and His Boss, At Center of Ethics Dispute<\/strong><\/a>\u201d \u2014<\/p>\n<ul>\n<li>\u201d A top judge failed to disclose that his key legal advisor was romantically involved with an attorney arguing cases in his courtroom. The apparent conflict of interest extends to the highest levels of New York\u2019s court system, as the law clerk\u2019s father is the state\u2019s chief administrative judge \u2014 who recently gave appointments to both the judge (his son\u2019s boss) and the attorney (his son\u2019s girlfriend).\u201d<\/li>\n<li>\u201cThe case is the latest example of alleged favoritism in New York\u2019s courts, particularly in Surrogate\u2019s Courts that handle inheritance disputes worth millions of dollars.\u201d<\/li>\n<li>\u201cThe young man had a key to unlock the suburban Nassau County home. That much was clear to the private investigator watching outside. The key soon unlocked something else: a secret. It was exactly the kind of evidence the investigator\u2019s client, Shannon Hynes, was looking for.\u201d<\/li>\n<li>\u201cHynes felt something was amiss in Queens Surrogate\u2019s Court, where she was locked in an inheritance dispute with her brother. The judge overseeing her case kept taking actions that Shannon \u2014 a seasoned trial lawyer by trade \u2014 considered unusual. So she hired the investigator, who that day discovered the \u2018smoking gun.&#8217;\u201d<\/li>\n<li>\u201cThe young man with the key was Zachary Zayas, principal law clerk to Judge Peter Kelly \u2014 the same judge overseeing Shannon\u2019s case. And the key opened a house owned by Cheryl Katz \u2014 the attorney representing Shannon\u2019s brother in the inheritance dispute.\u201d<\/li>\n<li>\u201cKatz and Zayas were dating and living together. Neither the judge, nor the law clerk, nor the attorney disclosed this to Shannon.\u201d<\/li>\n<li>\u201cKelly, who\u2019d run the court for 14 years, had known for at least five months that his law clerk was dating Katz, according to comments Kelly made last year. And during that time, he issued several rulings favoring Katz\u2019s client, while keeping Shannon in the dark about the relationship.\u201d<\/li>\n<li>\u201cThis was a clear violation of ethics rules governing state attorneys and judges, according to Cynthia Godsoe, a professor at Brooklyn Law School who specializes in both family law and professional ethics.\u201d<\/li>\n<li>\u201c\u2018There absolutely should have been disclosure by Katz and the judge,\u2019 Godsoe said. \u2018It couldn\u2019t be clearer. I\u2019m just sort of astonished.&#8217;\u201d<\/li>\n<\/ul>\n<p>\u201c<a href=\"https:\/\/abovethelaw.com\/2025\/04\/paul-weiss-pro-bono-leader-would-rather-quit-his-job-than-do-work-for-trump\/\"><strong>Paul Weiss Pro Bono Leader Would Rather Quit His Job Than Do Work For Trump<\/strong><\/a>\u201d \u2014<\/p>\n<ul>\n<li>\u201c\u2018This has been weighing on me since the November election. At this historical moment, I know that I belong back on the front lines fighting for the things that I have believed in since I first walked in the door of The Legal Aid Society as a staff attorney in 1981.&#8217;\u201d<\/li>\n<li>\u201c\u2014 Steven Banks, special counsel at Paul Weiss, in a statement noted by the New York Times, concerning his decision to leave the firm in the wake of its $40 million pro bono payola deal with Donald Trump to do away with an executive order.\u201d<\/li>\n<li>\u201cBanks, 68, who leads the Paul Weiss pro bono practice, told Reuters that he felt his \u2018time to make a difference as a lawyer is narrowing.\u2019 Moving forward, he will representing the Coalition for the Homeless with the Legal Aid Society, where he worked for three decades before joining Paul Weiss. A spokesperson for the firm thanked Banks for his years of service, noting, \u2018We remain committed to providing impactful pro bono legal assistance to individuals and organizations in need.&#8217;\u201d<\/li>\n<\/ul>\n<p>\u201c<a href=\"https:\/\/masslawyersweekly.com\/2025\/04\/11\/lawlessness-and-trumps-lawyers\/\"><strong>Lawlessness and Trump\u2019s lawyers<\/strong><\/a>\u201d \u2014<\/p>\n<ul>\n<li>\u201cPresident Donald Trump has sought retribution against law firms that previously opposed him or represented the Democratic National Committee. He has called for the impeachment of federal judges who issued orders against him, labeling one of them a \u2018radical left judge\u2019 and a \u2018lunatic.\u2019 He has commenced an investigation into law firms that engage in diversity, equity and inclusion initiatives.\u201d<\/li>\n<li>\u201cTrump has not acted alone in any of these extraordinary endeavors; in each instance, he has been enabled by federal lawyers working as White House counsel, in the Department of Justice, at the Department of Homeland Security, or at the Equal Employment Opportunity Commission.\u201d<\/li>\n<li>\u201cEven nonpartisans among us should perceive Trump\u2019s statements and actions as a serious threat to the role of lawyers in the United States. Robust advocacy allows judges and juries to make informed decisions based on a fully developed factual record.\u201d<\/li>\n<li>\u201cThe current spate of government lawyers who counsel Trump would be wise to take note of the fates of those lawyers who advised him during his first administration. Rudolph Giuliani was disbarred for filing frivolous legal complaints alleging fraud in the 2020 election. John Eastman was disbarred for assisting Trump with the fraudulent elector scheme.\u201d<\/li>\n<li>\u201cTrump does not hold a law license, nor does he seem to care about the fate of his advisors who do. But Trump\u2019s lawyers should care deeply. Federal government attorneys hold their law licenses at the state level, and they can be disciplined by that state even if their conduct occurs out of state.\u201d<\/li>\n<li>\u201cIf federal lawyers perceive their \u2018client\u2019 as the president \u2014 a proposition that might fairly be questioned even by those who believe in the theory of a unitary executive \u2014 they still owe duties to the court system, to their adversary, and to the public. Under attorney rules of professional conduct, sometimes those duties take precedence over duties to a client.\u201d<\/li>\n<\/ul>\n<p>\u201c\u2018<a href=\"https:\/\/abovethelaw.com\/2025\/04\/pray-i-dont-alter-it-any-further-what-darth-vader-should-teach-law-firms-about-settling-with-trump\/\"><strong>Pray I Don\u2019t Alter It Any Further\u2019: What Darth Vader Should Teach Law Firms About Settling With Trump<\/strong><\/a>\u201d \u2014<\/p>\n<ul>\n<li>\u201c\u2018I\u2019ve just made a deal that\u2019ll keep the Empire out of here forever,\u2019 Lando Calrissian explained in The Empire Strikes Back. We soon realize his deal involved allowing Darth Vader to ensnare the Han and Leia as bait to lure Luke Skywalker. Once Vader had Luke, everyone could go their separate ways. Then Vader decided to hand Han Solo to Boba Fett and require Leia and Chewbacca to remain under arrest in Cloud City, while Lando grumbled, \u2018This deal is getting worse all the time!\u2019 A few beats later, Vader he\u2019d put Han on ice and ordered Leia and Chewy taken to his ship.\u201d<\/li>\n<li>\u201c\u2018You said they\u2019d be left at the city under my supervision!\u2019 Lando exclaimed.\u201d<\/li>\n<li>\u201cSorry for the spoilers on a 45-year-old movie. With that, every Gen Xer and elder Millennial Star Wars fan learned that if you make a deal under duress with a retaliatory government official to save your business, you are a hopeless chump and will get systematically rolled. It was a raw demonstration of what happens when you negotiate with someone who doesn\u2019t believe in the concept of negotiation.\u201d<\/li>\n<li>\u201cBiglaw firms striking deals with the Trump administration to \u2014 theoretically \u2014 \u2018protect\u2019 their firm or their clients from government interference, missed this lesson. These firms \u2014 Paul Weiss, Willkie, Skadden, Milbank (and potentially more to come) \u2014 now enter their Lando Era, watching the administration heap daily humiliation upon them while continually altering the deal to the firms\u2019 detriment.\u201d<\/li>\n<li>\u201cBut the important thing each of these firms want you to know is that this was a professional deal among very serious people conducted at a very serious boardroom table and not, in fact, the legal equivalent of getting choked out mid-sentence. And that it\u2019s patently unfair that radical agitators \u2014 like, well, Above the Law \u2014 characterize these deals as \u2018surrender\u2019 or \u2018bending the knee.\u2019 No one seriously involved in these deals would say something like that!\u201d<\/li>\n<li>\u201cNo matter how much these firms want to posture as though they made narrowly tailored, professionally negotiated agreements, the counterparty is using mainstream media time to dunk on them about how they renamed all the managing partners Reek and keep them locked in the White House basement.\u201d<\/li>\n<li>\u201cIf the administration had only set fire to the crucially important \u2018we\u2019re innocent\u2026 this was just to avoid a distraction for our clients\u2019 claim it would be bad enough. But now he\u2019s moving Leia to his ship.\u201d<\/li>\n<li>\u201cIn defending their deals, the firms have nurtured a press narrative that really all they committed to do is perform a lot of pro bono work for veterans \u2014 something that appeals to conservatives and liberals alike \u2014 in order to claim that this deal isn\u2019t all that radical.\u201d<\/li>\n<li>\u201c<a href=\"http:\/\/pic.twitter.com\/FqwnhqUvQT\"><strong>Trump<\/strong><\/a>: \u2018We have plenty of law firms. These are great law firms that we signed with. And I think part of the way I\u2019ll spend of the money we\u2019re getting from the law firms in terms of their legal time will be using these great law firms to represent us with regard to the many\u2026 \u201c<\/li>\n<li>\u201c\u2018Part of the way I\u2019ll spend some of the money we\u2019re getting from the law firms\u2026.\u2019 That doesn\u2019t sound like the firms are going to just do $100 million in veteran health claims.\u201d<\/li>\n<li>\u201cSo far the law firms aren\u2019t acknowledging these alterations to the deal. But the White House remains very clear:\u201d<\/li>\n<li>\u201cTrump says he will assign the law firms which cut deals with him to coal regulation cases. We asked the firms. None responded. But the White House did\u2026 \u2018[Trump] looks forward to putting their pro bono legal concessions toward implementing his America First agenda\u2019\u2026\u201d<\/li>\n<li>\u201cAnd what are the firms gonna do about it? Other than privately mumble that \u2018This deal is getting worse all the time!\u2019 they\u2019re going to go along with it because they\u2019re already pot committed at this point. Reversing course now doesn\u2019t get them anything but an even harsher executive order that they\u2019ve already told the whole market they don\u2019t have the courage to fight.\u201d<\/li>\n<li>\u201cThese firms thought they were buying peace. What they bought was a public admission that they could be shaken down. And at every stage from here on, the terms will change. Because bullies don\u2019t honor deals. They escalate. You give them access to a tibanna gas mine, and next thing you know, they\u2019re freezing your friends in carbonite and conscripting you as the shadow Justice Department.\u201d<\/li>\n<li>\u201cThe deal was always going to end like this. From the first deal, we\u2019ve been saying it would end like this. Because we watched Empire Strikes Back and as a kindergartner we understood what happens if you\u2019re stupid enough to make a deal like this.\u201d<\/li>\n<li>\u201cNow all those firms have left is to pray Trump doesn\u2019t alter it any further.\u201d<\/li>\n<li>\u201cAnother spoiler for you: he will.\u201d<\/li>\n<\/ul>\n<p>\u201c<a href=\"https:\/\/abovethelaw.com\/2025\/04\/five-top-biglaw-firms-pledge-their-allegiance-to-trump-promising-to-provide-legal-services-beyond-his-time-in-the-white-house\/\"><strong>Five Top Biglaw Firms Pledge Their Allegiance To Trump, Promising To Provide Legal Services \u2018Beyond\u2019 His Time In The White House<\/strong><\/a>\u201d \u2014<\/p>\n<ul>\n<li>\u201cWe now know that Kirkland &amp; Ellis, Latham &amp; Watkins, A&amp;O Shearman, Simpson Thacher, and Cadwalader have all inked deals with Trump \u2014 and they\u2019re far worse than the already bad deals other Biglaw firms like Skadden, Milbank, Willkie, and Paul Weiss got.\u201d<\/li>\n<li>\u201cKirkland, Latham, Simpson, and A&amp;O Shearman were among the Biglaw firms threatened with EEOC investigations concerning their DEI practices; with their pro bono payola deals, those menacing EEOC claims have now disappeared. The American Lawyer has the <a href=\"https:\/\/www.law.com\/americanlawyer\/2025\/04\/11\/kirkland-latham-ao-shearman-and-simpson-make-deal-with-trump\/\"><strong>details<\/strong> <\/a>on those poorly negotiated agreements.\u201d<\/li>\n<\/ul>\n<p>Interesting to see law firms commenting publicly on their peers\u2019 activity. Here\u2019s some of that.<\/p>\n<p>Tony Schoenberg, Partner at Farella Braun &amp; Martel LLP, <a href=\"https:\/\/www.linkedin.com\/posts\/tony-schoenberg-24183b_farella-filed-an-amicus-brief-in-two-parallel-activity-7316583173138567168-5Jty\"><strong>wrote<\/strong><\/a>:<\/p>\n<ul>\n<li>\u201cAnother day, another BigLaw firm (or five) shows us what cowardice looks like. Meanwhile, over here we were busy filing the attached amicus brief on behalf of 253 members of Congress in support of two high ranking federal officials who were illegally fired by President Trump. I\u2019m proud to work at a firm that is unequivocal about its commitment to the rule of law and the Constitution.\u201d<\/li>\n<\/ul>\n<p>Laura Belmont, General Counsel at Civis Analytics, <a href=\"https:\/\/www.linkedin.com\/posts\/activity-7316440705613139968-DBUF\"><strong>wrote<\/strong><\/a>:<\/p>\n<ul>\n<li>\u201cWhen I joined Latham &amp; Watkins\u2019 summer associate class in 2008, I didn\u2019t know much about Big Law. What stood out to me about Latham? Pro bono hours counted toward billables.\u201d<\/li>\n<li>\u201cWhile at Latham, I worked pro bono with the Washington Lawyers\u2019 Committee for Civil Rights and Urban Affairs on some of the most meaningful cases of my career. After two years, we secured a settlement affirming the right of a Muslim client in federal prison to observe his daily prayers. We brought a class action against the BOP challenging conditions where men with serious mental illness were cut off from medication, denied counseling, locked in cells 24 hours a day, and handed crossword puzzles instead.\u201d<\/li>\n<li>\u201cNow, reports suggest Latham may preemptively cut a deal with the Administration and offer a staggering $100M in \u201cpro bono\u201d services in areas of the Administration\u2019s liking, including mining, tariffs, and border control.\u201d<\/li>\n<li>\u201cTo Latham attorneys: I hope that you continue to have the privilege of doing the work that matters. If you need an ear, feel free to message me.\u201d<\/li>\n<\/ul>\n<p>\u201c<a href=\"https:\/\/news.bloomberglaw.com\/business-and-practice\/simpson-thacher-lawyer-quits-after-firm-capitulates-to-trump\"><strong>Simpson Thacher Lawyer Quits as Firm \u2018Capitulates\u2019 to Trump<\/strong><\/a>\u201d \u2014<\/p>\n<ul>\n<li>\u201cSiunik Moradian fired off an email to colleagues on Friday, resigning moments after the firm announced the agreement. Simpson Thacher, along with several others, pledged pro bono or free legal services for Trump-aligned causes.\u201d<\/li>\n<li>\u201c\u2018By capitulating today, Simpson Thacher joins several other historic, powerful, influential and well-resourced law firms in bending the knee and kissing the ring of authoritarianism,\u2019 Moradian said in the email, viewed by Bloomberg Law.\u201d<\/li>\n<li>\u201c\u2018Simpson Thacher\u2019s decision today fundamentally changes \u2018who we are as a Firm,\u2019 Moradian said, referencing an internal email sent by Simpson Thacher chair Alden Millard. \u2018I make a different choice. I will not sleepwalk toward authoritarianism,\u2019 Moradian.\u201d<\/li>\n<\/ul>\n<p>Above the Law writes: \u201c<a href=\"https:\/\/abovethelaw.com\/2025\/04\/skadden-posts-dream-job-for-anyone-who-hates-themselves\/\"><strong>Skadden Posts Dream Job For Anyone Who Hates Themselves<\/strong><\/a>\u201d \u2014<\/p>\n<ul>\n<li>\u201cWould you like to defend the indefensible? Biglaw has a job for you!\u201d<\/li>\n<li>\u201cA week after folding to the Trump administration\u2019s demands like a damp cocktail napkin, Skadden posted a job that perfectly captures this moment in the life of a law firm flinging its reputation over a cliff:\u201d<\/li>\n<li>\u201cFinally, a career opportunity for the rare communications professional who wakes up each morning craving existential despair.\u201d<br \/>The job, listed on LinkedIn (hat tip to Daniel Barnes who posted it on Twitter), is exactly what you\u2019d expect: coordinate \u2018various public relations initiatives, monitors media for trends and topics of interest, identifies publishing opportunities for attorney-authored articles and client alerts, and searches for and circulates practice-specific media coverage.\u2019 This listing is focused on the regulatory practice and the DC office, but since those are key areas likely to get repeatedly kicked in the face by the firm\u2019s new liege, this won\u2019t be any fun.\u201d<\/li>\n<li>\u201cThe firm made a deal last week under the pretense of \u2018supporting veterans,\u2019 but \u2014 as we\u2019ve seen play out in real time \u2014 Trump immediately interpreted this as blanket approval to draft Biglaw attorneys into his latest fever dream policies. From tariffs to coal to probably helping the IRS sue Sesame Street for ideological noncompliance, Skadden\u2019s time is now fair game for the administration.\u201d<\/li>\n<li>\u201cSo if you\u2019re a seasoned PR expert who thrives in high-stakes environments, or just someone ready to go full Joker, Skadden\u2019s got the gig for you.\u201d<\/li>\n<li>\u201cHonestly, $135K seems a little low for this job. Does it include hazard pay? Or a therapist on retainer? Because it probably should.\u201d<\/li>\n<\/ul><\/div>\n<p><!-- .entry-content --><\/p>\n<p>\t<!-- .entry-footer --><\/p>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>David Kluft, Assistant Bar Counsel at Massachusetts Office of Bar Counsel, notes: \u201cTidbit: Can I represent both the litigant and the third party paying for the litigation?\u201d \u2014 \u201cTwo individual defendants assigned an allergy skin test patent to a company, and the company agreed to indemnify them against lawsuits by the alleged inventor. The inventor [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":190226,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[97],"tags":[6336,39179,5475,5285,74247,13232,22414,3646,74248,11115,3762,12572],"dealstore":[],"offerexpiration":[],"class_list":["post-190225","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal","tag-action","tag-called","tag-conflict","tag-executive","tag-funder","tag-judicial","tag-litigation","tag-reading","tag-reputational","tag-risk","tag-romance","tag-updates"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Risk Reading \u2014 (Another) Judicial Romance Conflict Called Out, Litigation Funder Conflict, Executive Action Updates, Reputational Risk &amp; More - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=190225\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Risk Reading \u2014 (Another) Judicial Romance Conflict Called Out, Litigation Funder Conflict, Executive Action Updates, Reputational Risk &amp; More - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"David Kluft, Assistant Bar Counsel at Massachusetts Office of Bar Counsel, notes: \u201cTidbit: Can I represent both the litigant and the third party paying for the litigation?\u201d \u2014 \u201cTwo individual defendants assigned an allergy skin test patent to a company, and the company agreed to indemnify them against lawsuits by the alleged inventor. 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