NewsWire

Crisis Atmosphere in Redistricting Case
Anxiety replaced the U.S. Supreme Court’s normally staid atmosphere during Monday’s oral arguments over Texas’ most recent legislative redistricting, observes Carl Cecere of the Dallas appellate law firm Hankinson LLP. The Court must determine what set of redistricting maps Texas will use in the 2012 election season – one drawn by the Texas Legislature, or another drawn by a panel of federal judges in Texas. And the justices know time is of the essence, he says. “The Court knows that things must move quickly, or else the presidential primary, which already has been rescheduled once, may have to be moved again,” says Cecere. But during arguments, no clear path emerged. “The justices seemed dissatisfied with both of the available options. By statute, the Legislature’s maps cannot go into effect until they have received ‘preclearance’ in a separate court proceeding, but at the same time the Texas court may have gone too far in drawing its own maps.” For more information, contact Dave Moore at 800-559-4534 or dave@androvett.com.

Disclosing the Risk Factors of Fracking
As environmentalists and regulators raise concerns over the potential hazards associated with shale drilling, energy companies should anticipate pressure to disclose the risks and potential costs of their fracking activities. “It makes sense to enhance disclosure about the use of hydraulic fracturing and any related environmental, regulatory and litigation risks, particularly as companies enter their annual reporting phase,” says Harry Beaudry of the Houston office of Thompson & Knight. While fracking is mostly state-regulated, the EPA is drafting new regulations to protect water supplies and the SEC has requested information from several public companies. “The SEC wants assurances that investors are being adequately informed about any lawsuits or compliance costs that companies may be facing. Companies can request that the SEC keep some information confidential, but analyzing risk factors and making appropriate public disclosures may limit real or perceived problems down the line.” For more information, contact Barry Pound at 800-559-4534 or barry@androvett.com.

New IRS Program Offers Clean Slate for Businesses
In recent years, state and federal agencies have vigorously investigated and penalized companies that improperly classify workers as consultants or independent contractors rather than employees in an effort to avoid mandates such as unemployment, worker's compensation and overtime. Now the IRS has launched the Voluntary Classification Settlement Program, allowing employers to re-classify some workers as employees in exchange for significantly reduced tax liability. “The program provides partial relief for eligible companies in allowing them to pay only 10 percent of the employment tax liability that would otherwise have been due in prior years,” says Todd Lowther of the Houston office of Thompson & Knight. “This essentially means that a business can ‘turn itself in’ to the IRS before being audited and eliminate the risk of IRS penalties for misclassifying employees.” Lowther notes that companies need to consider any potential liability under state employment law before pursuing coverage under the federal program. For more information, contact Barry Pound at 800-559-4534 or barry@androvett.com.

Severance Package Can Help Avoid Litigation
The best way for companies to avoid litigation after terminating executives is to offer a severance package that not only puts executives in a good financial position, but also helps them to land new employment, says executive employment lawyer Joe Ahmad of Houston's Ahmad, Zavitsanos, Anaipakos, Alavi & Mensing P.C. If an employer doesn’t typically offer severance, executives should ask for one anyway, he says. “If you’re already out of a job, what’s the worst they can do?” Ahmad asks. “Executives should suggest a dollar figure based on expected months of unemployment, as well as a release of any non-compete obligations and a good reference.” Also on the table: accelerated vesting of stock and stock options, COBRA payment reimbursement, and unused sick/vacation time. Some executives may be asked to sign a release as part of a severance. “That’s understandable, since litigation avoidance is probably the reason for the severance,” Ahmad says. “But have a lawyer review it before signing.” For more information, contact Mary Flood at 800-559-4534 or mary@androvett.com.

Rose•Walker Expanding with New California Office
The national trial law firm Rose•Walker LLP, is expanding into California with the opening of a new office in the Los Angeles area. “It’s just natural that we would move into California,” says Rose•Walker founder Martin Rose, a member of the State Bar of California and graduate of both the University of California at Los Angeles and Los Angeles’ Southwestern Law School. “Our firm has always worked in California, and we are familiar with the business climate and the courts there. This move gives us a ‘boots-on-the-ground’ component that we didn’t have before, and that’s good for our clients.” Heading up the California office is attorney Michael J. Terhar, whose practice focuses on aviation, product liability, and commercial and general litigation cases. The office is located at 2 N. Lake Ave., Pasadena, CA 91101. For more information, contact Mark Annick at 800-559-4534 or mark@androvett.com.

Gardere MLK Competition Marks 20th Year
Speaking on the theme “As a Student of Dr. King’s Life, What Message of Hope Do You Think He Would Have for the World Today?” elementary students from Dallas and Houston will participate in the Annual Gardere MLK Jr. Oratory Competition this Friday, Jan. 13. This marks the 20^th year for the firm’s Dallas office to host the competition, which celebrates the life and teachings of Dr. King. The inaugural Houston event was held in 1997. "Gardere is proud to be able to celebrate and champion efforts such as these competitions to unite our country, and to teach our children the vital human traits of compassion and justice," says Dwight Francis, Co-Chair of Gardere’s Diversity Committee. The Dallas competition, co-presented by Dallas ISD, will be at The Majestic Theatre. The 16^th annual Houston competition will be at Antioch Missionary Baptist Church. Earlier this week, Gardere assisted the Austin Area Heritage Council with the oratory competition in Austin.