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.

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.

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.

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.

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.

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?

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.

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.

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.

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.

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.

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.

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.

A court battle over rights to the names of two 1950s doo-wop groups has sparked an appeal that could have far-reaching effects in civil rights litigation. The 3rd Circuit has granted en banc rehearing to decide the proper test to determine a plaintiff's entitlement to attorney fees as the "prevailing party." The underlying battle started when New Jersey officials threatened to take action against a music promoter who was using the two groups' names in a concert series -- a position the state later reversed.

The Federal Circuit has ruled that a defendant's successor companies are liable for an $8 million default judgment in a patent infringement case. The panel rejected the district court's decision to apply South Korean law concerning successor liability, ruling that New Jersey law should apply because Daewoo Electronics' U.S. subsidiary has headquarters in New Jersey. The court cited a recent U.S. Supreme Court case that deemed that the laws of a company's "principal place of business" should apply to transactions.

The Department of Justice is stepping up its investigation into the office of controversial Arizona Sheriff Joe Arpaio, a nationally known opponent of illegal immigration. DOJ attorneys filed a complaint Thursday in federal court, alleging that Arpaio and his staff have obstructed their investigation into whether the sheriff's office is discriminating based on national origin in its police practices and jail operations. A lawyer for the sheriff's office said he has tried to cooperate with the Justice Department.

Hoskin Farina & Kampf sought out a more robust document management system that integrated deeply with Outlook, and with greater flexibility regarding document rights management and security controls. They chose Worldox. Firm administrator Tony Lozano describes the install and results.

A whopper of a late summer for M&A lawyers grew even fatter Thursday, when Burger King announced its sale to investment firm 3G Capital for $4 billion. Four Am Law 100 firms -- Skadden, Arps, Slate, Meagher & Flom; Holland & Knight; Kirkland & Ellis; and Weil, Gotshal & Manges -- landed key legal advisory roles on the deal, which will return the world's second-largest hamburger chain to the private sector.

For the first time in more than 30 years, the U.S. military has allowed an enlisted Sikh soldier to maintain his religiously mandated turban, beard and hair while serving in the Army. A team of lawyers at McDermott Will & Emery and attorneys at the Sikh Coalition also won one-time exceptions last year for two Sikh Army officers. The teams' efforts have spurred interest in Congress; in the past year, more than 50 members have written to military officials requesting that Sikhs be accepted into the U.S. Armed Forces.

A California appeals court on Thursday denied the Pacific Justice Institute's petition for a writ of mandamus to force the state's governor and attorney general to defend Proposition 8 in court, killing the latest attempt by foes of gay marriage to shore up standing for the pending appeal of Chief Judge Vaughn Walker's July ruling. A motions panel at the 9th Circuit ordered the Prop 8 proponents to "include in their opening brief a discussion of why this appeal should not be dismissed for lack of Article III standing."