• Community Gatepath Names New Center for Niall P. McCarthy
  Community Gatepath of Northern California, a non-profit organization that enables children and adults with disabilities to achieve their full potential in health and work, has named its newest facility the Niall P. McCarthy Center for Children and Families. McCarthy, a Gatepath board member since 2002 and chair of the board since 2005, was recognized for his instrumental role in helping the center become a reality. The Burlingame, California-based Gatepath was founded in 1917 and today serves more than 3,200 persons in various programs and services a year. The McCarthy Center focuses on early intervention and preschool services. For example, the newly remodeled center building, among other things, allows Gatepath to expand its children services to include Learning Links, an inclusive preschool where children ages 3 to 5 with and without disabilities learn and thrive together. McCarthy was recognized along with Tom and Lynn Kiley and the estate of Mrs. Richard Heimann at 2007 opening ceremonies.
   
• CP&M Honored by Lawyers’ Committee for Civil Rights
  Cotchett, Pitre & McCarthy was awarded the "Living the Dream Partner Award" by the Lawyers’ Committee for Civil Rights of the San Francisco Bay Area. The award, which honors those who have made extraordinary contributions to the group, was presented at the 19th Annual Dr. Martin Luther King Jr. Luncheon. The Lawyers' Committee is dedicated to supporting the rights of minority and low-income individuals by offering free legal assistance in civil matters and by litigating cases that have the potential of improving the lives of people often ignored by the legal system.
   
• Cotchett Receives Prestigious Consumer Advocate Award
  Joseph W. Cotchett received the prestigious Edward I. Pollock Award from the Consumer Attorneys of California (CAOC) in November 2007 at the group’s 46th annual convention in San Francisco. Established in 1982, the award is the oldest one given by the CAOC and is named after the former CAOC president and renowned consumer advocate. Cotchett was cited for his years of dedication on behalf of the causes and ideals of the CAOC. Also in November 2007, Cotchett was presented the annual Clarence Darrow Award of the Mass Torts Made Perfect group at a seminar in Las Vegas.
     
• Pitre Inducted Into the International Academy of Trial Lawyers
  Frank M. Pitre was inducted into the International Academy of Trial Lawyers at the group’s annual meeting in Chicago in April 2007. Pitre joins fellow CP&M partner Joseph W. Cotchett as a Fellow in the prestigious IATL. Recommended by their peers and judges, Fellows must have achieved a career of excellence through demonstrated skill and ability in jury trials, trials before the court, and appellate practices. Chartered in 1954, membership in the IATL is limited to 500 Fellows from the United States and 30 International Fellows. The IATL’s mission is to cultivate the science of jurisprudence, protect the jury system and the independence of the judiciary, facilitate the administration of justice, promote the Rule of Law internationally and elevate the standards of integrity, honor and courtesy in the legal profession.
   
• Cotchett Named to Blue Ribbon Panel on Foster Care
  Joseph W. Cotchett has been appointed to the newly-formed California Blue Ribbon Commission on Children in Foster Care to examine and improve the courts' critical role in foster care. The appointment was made by Ronald M. George, Chief Justice of the California Supreme Court and Chair of the Judicial Council of California. In announcing the appointment, Chief Justice George said the two-year commission was formed "to develop and implement innovative policy solutions to improve conditions for our state's most vulnerable children and youth." In California, more than 500,000 children -- six percent of the state's population under the age of 18 -- become involved each year in the public child welfare system. Of those, 92,000 live in foster homes, relatives' homes and residential care facilities. Other commission appointments include Associate Supreme Court Justice Carlos R. Moreno as chair; Los Angeles County Supervisor Michael D. Antonovich, Assemblywoman Karen Bass, former State Senator John Burton, Justice Kathryn Doi Todd, Judge Terry B. Friedman, Justice Richard D. Huffman, Judge Susan D. Huguenor, Judge Michael Nash, and Assemblyman Todd Spitzer, among others.
   
• CP&M Presented The Guardians of Justice Award
  The Legal Aid Society of San Mateo County presented Cotchett, Pitre & McCarthy its top award for 2007 at the society’s 10th annual awards banquet. Senior partner Joseph W. Cotchett accepted the The Guardian of Justice Award on behalf of the firm. The award is given each year in recognition of those whose commitment to Legal Aid is steeped in a commitment to justice for all the children, families and seniors in San Mateo County. In recognizing the firm, the society said, "On behalf of low income residents in need of basic civil legal services, CP&M lawyers and support staff volunteer at Legal Aid in many ways: serving as pro bono attorneys, trusted advisors, and members of the Board of Directors" among other things. Other awards included:
   
  Dr. Dana L. Weintraub of the Lucile Packard Children’s Hospital at Stanford was presented the Natalie Lanam Achievement Award. This award is named for Natalie Lanam, a lay leader whose efforts on behalf of Legal Aid were inspired by her commitment to Justice.
   
  Ronald F. Garrity of Simpson, Garrity & Innes was presented the Dorothy M. Wolfe Award. This award is in memory of Dorothy M. Wolfe, one of the earliest champions of Legal Aid.
   
• San Francisco Bar Association Cites CP&M for Cy Pres Awards
  San Francisco Attorney, the Bar Association of San Francisco’s official publication, featured three CP&M partners on the cover of its Spring 2007 edition, recognizing the firm for its historic commitment to obtaining cy pres awards for community organizations. The cover featured Joseph W. Cotchett, Nancy L. Fineman and Steven N. Williams, who, the magazine said, "enjoy making a difference for organizations who are recipients of cy pres funds from class action cases they handle." The magazine specifically cited CP&M for obtaining major funding for the San Francisco Bar’s Volunteer Legal Services Program. Founded by the bar association in 1977, the program is a nonprofit provider of free legal and social services to low income individuals and families. Cy pres, or the "next best use" doctrine, allows unclaimed funding from class actions to go to worthy causes.
   
• Fineman elected to San Mateo County Bar Association Board
  Nancy L. Fineman of CP&M currently is serving a three-year term on the San Mateo County Bar Association's prestigious Board of Directors. The 1,200-member Bar Association, which is celebrating its 90th anniversary, is overseen by the 14-member board. The Bar Association plays a vital role in San Mateo County, providing services to lawyers and the community. The Board of Directors oversees the operations of the only Private Defender Program in the State the mission of which is to represent indigent criminal defendants; the Lawyer Referral Service; the different sections and committees to the bar; and outreach to the community.
   
• Leading Attorneys in California
  For the 10th straight year, Joseph W. Cotchett was named one of the top 100 leading attorneys in California in 2007 by the San Francisco / Los Angeles Daily Journal. “Cotchett has a knack for filing lawsuits that address hot-button issues, from stock option backdating to the public exposure of an undercover CIA agent,” the Journal said. “As a result, he often winds up at odds with those in powerful places.” The legal newspaper also said Cotchett was one of only a few attorneys who have been named to the top 100 list every year since it began in 1998. Earlier, in a separate list compiled by California Law Business magazine, Cotchett was named as one of the top 10 of the 100 most influential attorneys in California. The magazine described the Burlingame litigator as “a fixture on any list of movers and shakers.”
   
• Top 10 Litigation Practices in Northern California
  Cotchett, Pitre & McCarthy has been named one of the top 10 leading litigation firms in Northern California in 2008 by the San Francisco / Los Angeles Daily Journal. According to the legal newspaper, "This 25-lawyer class-action shop keeps it collective fingers on the pulse of all types of cases." For example, the firm brokered a $200 million settlement with British Airways and Virgin Atlantic Airways on behalf of consumers accusing the airlines of price fixing and "the case is only one of several antitrust class actions that challenge the way airlines pass on rising costs of jet fuel to their customers." The firm also was cited for its lawsuits against natural gas companies for price manipulation and financial firms involved in subprime lending.
   
• CP&M Named One of the Top 25 Firms in Nation
  The National Law Journal again named Cotchett, Pitre & McCarthy one of the top 25 plaintiffs' law firms in the nation. The Journal announced its "Plaintiffs' Hot List" with "twenty-five go-to teams for when the going gets tough." The journal said it based its selections on interviews with attorneys across the country on both the plaintiffs' and defense sides, asking for the names of firms they use and recommend. The process also was based on a "hotness" quotient regarding recent verdicts and settlements, and overall track records.
   
• Nisimura Membership on Judicial Nominee Evaluation Commission
  Nanci E. Nishimura, a principal at CP&M, currently is serving her third term on the prestigious California Commission on Judicial Nominees Evaluation, or JNE Commission, for the 2005-07 term. The JNE Commission is the California State Bar agency that evaluates all candidates who are under consideration for a judicial appointment by the governor. The volunteer commission, the members of which are appointed by the State Bar's Board of Governors, investigates California's judicial candidates and rates for the governor's office for appointment to either the trial bench, Superior Court or the Appellate Court. Three other CP&M principals have over the years served on the commission, Hon. Susan Illston, Hon. Marie S. Weiner and Nancy L. Fineman.
   
• Federal Judge Selection Process in California
  Joseph W. Cotchett continues to serve on the Federal Judicial Advisory Committee, a bipartisan group that submits federal judicial nominations in California to President Bush. The committee was set up by the Republican Bush administration and California's two Democratic senators, Dianne Feinstein and Barbara Boxer, to process judicial nominations while giving each political party significant ability to veto potential judges. The committee has subcommittees in each of the state's four federal judicial districts. These subcommittees are composed of three Democratic and three Republican members. A judicial nomination will be forwarded to the White House only if it gets at least four committee votes. Cotchett was named as one of three Democratic members of the Los Angeles-based Central District of California committee.
   
• National Rebuilding Day (formerly Christmas in April)
  Organized and directed for the past six years by CP&M partner Frank M. Pitre, CP&M staffers have dedicated a special Saturday in April to revitalizing the houses of low-income homeowners, particularly the elderly, who otherwise could not afford such work. As part of the nationwide program National Rebuilding Day, formerly Christmas in April, dozens of CP&M lawyers, secretaries and legal assistants give up a Saturday in April each year to participate in painting, repairing, rebuilding and landscaping the home of a deserving member of the community. "National Rebuilding Day is a special way for us to give back to our community, to fulfill a vital need in our community for limited income seniors and others," said Pitre. "And it is always a very rewarding experience."
   
• Santa Clara University School of Law Honors Cotchett
  The Santa Clara University School of Law has named Joseph W. Cotchett as Distinguished Advocate for 2007. Cotchett is the 15th Distinguished Advocate recognized by the school. His appearance on campus on April 19, 2007 was sponsored by the Heafey Center for Trial and Appellate Advocacy and its director, Professor of Law Gerald F. Uelmen. Cotchett spoke on “The Ethics Gap in our Profession” before being honored at a reception attended by several hundred persons. Other Distinguished Advocates include Johnnie L. Cochran Jr., Thomas V. Girardi, Richard Haynes, Shirley M. Hufstedler and John W. Keker.
   
• Fineman Elected President of Community Outreach Group
  Nancy L. Fineman of CP&M has been elected the 2008 president of The Christian Action Life Line ("CALL") Primrose Center, an emergency referral and food bank facility in Burlingame. Fineman has been associated with the group as a volunteer and Council member for more than eight years. The center is a joint venture of the First Presbyterian Church and the United Methodist Church, both of Burlingame, and is supported by the San Mateo County community. Launched in 1983 as a telephone information and referral service, the center became a drop-in location in 1984. Since then, thousands of people in need have visited the non-profit center.
   
• Nishimura Serves as State Science Center Trustee
  Nanci E. Nishimura of CP&M was elected to the Board of Trustees of the prestigious California Science Center Foundation. The California Science Center was formed by the State in 1987, as a joint public-private enterprise to promote science and math education. The Science Center complex in Los Angeles offers science workshops for young scientists and awards scholarships. The Trustees raise funds to develop exhibits and promote educational programs in California and nationally through traveling exhibits. Ms. Nishimura previously served as the president of the Board of Directors of The MUSES of the California Science Center Foundation, which raises scholarship funds and is a sponsor of the annual State Science Fair for junior and senior high school students.
   
• Cotchett Appointed to Statewide Court Commission
  California Supreme Court Chief Justice Ronald M. George has appointed Joseph W. Cotchett to the newly-formed Commission for Impartial Courts, a statewide panel charged with recommending ways to ensure judicial impartiality and accountability in the state’s court system. Cotchett was named to the 18-member Commission Steering Committee chaired by State Supreme Court Associate Justice Ming W. Chin. He was only one of two attorneys named, the other being Patricia P. White, a member of the State Bar of California Board of Governors. The other members include justices and judges, court executive officers, government and business officials and members of the public. The Steering Committee will oversee and coordinate the work of four task forces and present its overall recommendations to the Judicial Council of California, the policy-making body of the California courts, the largest court system in the nation. “We are forming the Commission for Impartial Courts in response to developments in other states that have changed the tone, tenor, and cost of judicial elections,” Chief Justice George said. “It is essential that we make every effort to avoid politicizing the judiciary so that public confidence in the quality, impartiality, and accountability of judges is protected and maintained.” Cotchett’s 24-month term will end in 2009.

 

• Global Settlement on airline ticket price fixing – $200 million
  British Airways and Virgin Atlantic have agreed to a more than $200 million settlement of a class action lawsuit accusing the airlines of price fixing on long-haul passenger flights by inflating fuel surcharges. "Unfortunately, millions of air passengers were over charged because of the price fixing activity of the airlines," said Joseph W. Cotchett of CP&M, co-lead counsel in the case. "However, this settlement will serve as a wake up call to all members of the worldwide transportation industry that they cannot use inflated fuel or other surcharges to illegally overcharge consumers and enhance their profits." The February 2008 settlement calls for British Airways to pay $136 million, of which $47 million will go to resolve the claims of United States consumers and $89 million to resolve analogous claims of United Kingdom consumers. Virgin Atlantic will pay $67 million, of which $12 million will go to resolve the claims of U.S. consumers and $55 million to resolve U.K. consumer claims. The complaint alleged the airlines "acted in concert and conspired to artificially inflate the prices of passenger air transportation by fixing the prices of surcharges" during the period from August 11, 2004 to March 23, 2006. The airlines were sued by CP&M in U.S. District Court in San Francisco in June 2006. The total sum of the settlement goes to the airlines passengers. No attorney fees or other costs will be deducted as they will be paid separately by the defendant airlines. CP&M served as co-lead counsel in the case along with Cohen Milstein Hausfeld & Toll of Washington, D.C. For information on the settlement, see www.passengerrefund.com
   
• Jury Verdict Against Credit Card Collection Agency
  In a rare trial against a credit card collection agency, a San Francisco jury ruled in favor of a young woman who was the victim of a highly abusive campaign to force her to repay a debt she never incurred. Anne Marie Murphy and Justin T. Berger of Cotchett, Pitre & McCarthy represented Anastasiya Komarova, who was awarded $340,081 in damages from National Credit Acceptance following a two-week trial that ended in January 2008. Komarova had been subjected to nearly a year of hostile telephone calls to her work place and a spurious arbitration proceeding, all over a bogus $7,000 credit card debt and despite the fact that she repeatedly told the agency she never had an account with the credit card company in question. “Unfortunately, it is rare that a case like this finally goes to trial because of the barriers, including arbitration, erected by the credit card collection industry to protect itself from public scrutiny,” said Murphy. “It is unfortunate in that this case is only the tip of the iceberg when it comes to collection practice abuses.” The San Francisco Superior Court jury awarded Komarova $265,810 in compensatory damages and $75,000 in punitive damages. In issuing its verdict, the jury described National Credit Acceptance’s conduct as “outrageous.” The verdict is believed to be one of the largest verdicts in the country by a sole plaintiff alleging credit abuse.
   
  
• Apple Option Cases Consolidated
  Cotchett, Pitre & McCarthy has been appointed by the federal court to be the liaison and one of four law firms to handle the nationwide derivative lawsuit against Apple Computer for the backdating of options. CP&M filed the derivative suit in U.S. District Court in San Jose against Apple executives and directors. In a derivative action, a shareholder or shareholders assert claims on behalf of the company alleging the company sustained injury at the hands of its officers or directors. The suit, filed by CP&M partner and lead counsel Mark Molumphy, was consolidated with 10 other shareholder suits against the Cupertino, California company. The suit alleges Apple improperly granted options worth millions of dollars between 1997 and 2002. According to the suit, Apple engaged in widespread manipulation of option grants to allow executives to buy shares at low prices. The options were “spring-loaded” in advance of good news and “backdated” to days when the stock traded at low prices to create an automatic paper profit, the suit said. Following the filing of the suit, Apple said a three-month internal investigation of its option practices absolved CEO Steve Jobs of wrongdoing. However, the company later acknowledged 6,428 instances of improperly dating option grants over a six-year period and that Jobs approved or recommended some of the dates.
   
• "Bait and Switch" Lawsuit Against Ameriquest Settled
  Orange County-based Ameriquest Mortgage Co. will pay up to $50 million as part of a settlement of a class action lawsuit accusing the mortgage lender of inflating annual percentage rates after initially promising lower rates to borrowers. The suit was filed in San Mateo County Superior Court in Redwood City, California by Niall P. McCarthy of CP&M. "This was a straight-up case of bait and switch," McCarthy said. The settlement covers thousands of Ameriquest customers in California, Texas, Alabama and Alaska. Ameriquest and its affiliates are the nation's largest mortgage lenders in the so-called sub-prime market which serves homeowners who have heavy debts or bad credit. The settlement was approved by the San Mateo County Superior Court.
   
• Intellectual Property
  Intellectual property law is designed to protect the property created by intellect, or the mind. These creations include designs used in commerce, such as inventions, images, patents, copyright, and trade dress. They also include artistic works and literary works. The intellect that is the possession of a group or individual is considered intellectual property. In recent years, with the development of new electronic technology, advanced and specialized computer programs and Internet commerce, the definition of intellectual property and how to protect the rights of such property has created very complicated and complex business issues. CP&M has handled a number of intellectual property cases and its continuous investigations into various aspects of this emerging field of law has kept it on the cutting edge. Over the years, CP&M has successfully prosecuted and defended individuals and corporations in the area of intellectual property. Its cases range from one of the first lawsuits ever filed for Internet copyright infringement in 1998, to its successful defense in trial of mp3.com, to the successful prosecution of a complex business case involving WaveWare Communications of San Diego and its groundbreaking Code Division Multiple Access (CDMA) digital wireless technology.
   
• Bank Agrees to Credit Card Processing Settlement
  Wells Fargo & Co. has agreed to pay up to $34 million to settle a lawsuit alleging it imposed improper credit card processing charges on California businesses from 1999 to 2005. The lawsuit, filed in Los Angeles County Superior Court, named four small businesses as plaintiffs but was certified as a class action that applied to about 96,000 California business customers of Wells Fargo. Co-lead counsel Niall P. McCarthy of Cotchett, Pitre & McCarthy, alleged in the complaint that the improper charges were "junk fees" that were never properly disclosed beforehand nor when merchants questioned them. The settlement was approved by Judge Anthony Mohr.
   
• Settlement in Trust Account Fees Case
  Northern Trust Bank of California has agreed to pay the beneficiaries of trust accounts about $15,000 each on average as part of a $21 million settlement of a class action lawsuit alleging that it charged excessive management fees to individuals, charities and others with trust accounts. The suit, filed in Los Angeles County Superior Court, said that Northern Trust held and managed investments on behalf of beneficiaries, collecting fees based on a percentage of the assets. The trusts should have been charged annual fees of less than 1%, but were illegally ratcheted up to about 1.4% a year, the suit said. Co-lead counsel Niall P. McCarthy of CP&M said the overcharges began in 1981 and continued until 2003. The settlement was approved in Los Angeles Superior Court.
   
• Predatory Lending National Class Settlements
  CP&M, acting as co-lead counsel, has won major settlements in four predatory lending class action lawsuits. In the latest case, Wells Fargo Financial Inc., the consumer finance subsidiary of Wells Fargo & Company, agreed in April, 2007 to a $10 million settlement over its subprime mortgage lending practices in California. The firm also agreed to continue for three years improvements it had already put into practice to benefit its customers and implement other such practices. In another case, Fairbanks Capital Corp. was accused of engaging in a variety of unfair, deceptive and illegal practices in the servicing of subprime mortgage loans. The lawsuit resulted in a $55 million settlement in U.S. District Court in Boston. "We worked jointly with the Federal Trade Commission to obtain significant monetary relief for the victims of Fairbanks' predatory loan tactics and to set up new business practices to prevent future abuses," said Niall P. McCarthy, who handled the case for CP&M as national co-lead counsel. McCarthy also served as national co-lead counsel in a predatory lending suit against Household International, Inc. that resulted in a $150 million settlement. CP&M prosecuted the class action suit against Household in U.S. District Court in Oakland, California. McCarthy and Joseph W. Cotchett served as national co-lead counsel in fourth predatory lending lawsuit against Citigroup and its affiliates that resulted in a $240 million settlement. CP&M filed a class action suit against Citigroup in Los Angeles County Superior Court. Citigroup agreed to settle the suit as part of an agreement with the Federal Trade Commission. The FTC had accused Citigroup of manipulating consumers into buying overpriced mortgages and credit insurance.
   
• CalSTRS Securities Fraud Settlements
  The California State Teachers' Retirement System (CalSTRS) reached securities fraud settlements totaling $151.5 million with AOL Time Warner and Qwest Communications
   
  The settlement with AOL was $105 million and with Qwest $46.5 million. Cotchett, Pitre & McCarthy had filed separate suits on behalf of CalSTRS against AOL and Qwest in California state court after opting out of federal class action suits. The suits charged that AOL and Qwest artificially inflated their stock prices in 2000 and 2001 resulting in billions of dollars of shareholder losses. "By opting out of the federal actions, CalSTRS was able to pursue California state law claims in Superior Court, resulting in timely and much bigger recoveries," said Steven N. Williams of CP&M, lead counsel in the case.