In This Issue:

New Corporate Disclosure Act Includes Rules of Professional Responsibility for Attorneys
On July 30, 2002, President Bush signed into law the Sarbanes-Oxley Act of 2002, the purpose of which is to "protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws."

ABA Approves Task Force Report on Corporate Responsibility Issues
The ABA Task Force on Corporate Responsibility issued its preliminary report on July 16, 2002.

ABA Approves New Rules Governing Multi-jurisdictional Practice
On August 12, 2002, the ABA House of Delegates approved the final report of the Commission on Multijurisdictional Practice regarding the legal work of a lawyer that should be permitted in a jurisdiction in which the lawyer is not admitted to practice law.

Ohio Restricts Some Depositions by Out-of-State Lawyers
The Ohio Supreme Court Board of Commissioners on Grievances and Discipline, Op. 2002-4, (June 14, 2002). The Ohio Supreme Court's ethics board issued an advisory opinion on June 14, 2002, stating that a lawyer not licensed in Ohio may enter the state to take a deposition if it is incidental to litigation occurring elsewhere, but if the litigation is or will be in Ohio, the lawyer must be admitted pro hac vice in order to take the deposition.

Law Firm Disqualified From Representing Case Against Sister Corporation of Existing Client
Discotrade Ltd. v. Wyeth-Ayerst International Inc., 200 F.Supp.2d 355 (S.S.N.Y. 2002). A federal district court has disqualified a law firm from representing Discotrade Ltd. in litigation against Wyeth-Ayerst International, Inc. because the firm concurrently represented Wyeth Pharmaceuticals and its division, Wyeth Research, a corporate affiliate of Wyeth-Ayerst, in unrelated matters.

Privilege Not Waived by Disclosure to Employees and Outside Consultants
Federal Trade Comm'n v. GlaxoSmithKline, D.C. Cir., No. 01-5391, July 2, 2002, (2002 WL 1407199). The Federal Trade Commission (FTC) petitioned for enforcement of subpoena duces tecum issued in aid of its unfair competition investigation against a prescription drug manufacturer.

Communication with Former Employee Employed by Affiliate Does Not Result in Disqualification When No Confidential Information Disclosed
Allstate Insurance Company v. Browne, 817 So.2d 994 (Fla.App. 4 Dist., 2002). In a claim by a former employee of Allstate Insurance Company contending that she was terminated on account of age and other impermissible reasons, shortly after the lawsuit was filed, plaintiff's attorney communicated with a former managerial level employee of Allstate who was then employed - at least nominally - by an entity called Allstate Financial Services.

Law Firm Could Not be Adverse to Subsidiary
JPMorgan Chase Bank v. Liberty Mutual Insurance Co., 189 F.Supp.2d 20 (S.D.N.Y.2002). Davis Polk & Wardwell incorporated The Chubb Corporation, whose primary holding was Federal Insurance Company.

Prior Representation of Parent and Affiliate Results in Disqualification
Colorpix Systems of America v. Braun Mfg. Co. Inc., 131 F.Supp.2d 331 (D.Conn.2001). A Connecticut law firm undertook to sue Broan Manufacturing for fire damage caused by an allegedly defective bathroom exhaust fan.

This newsletter has been prepared by Hinshaw & Culbertson LLP to provide information on recent legal developments of interest to our readers. It is not intended to provide legal advice for a specific situation or to create an attorney-client relationship.