NewsWire

Romney Returns Intensify Debate
This week's release of Mitt Romney's tax returns has put an increased focus on both the arcane world of federal income taxes and the ongoing debate over classifying carried interest in partnerships. Dallas attorney Dan Baucum of Shackelford Melton & McKinley says he expects that the review of Romney's returns will add momentum to the growing demand for carried interest to be taxed as ordinary income rather than the current capital gains model. "If that change is made, it will be the biggest modification to partnership taxation in 50 years," says Baucum, a former Special Assistant to the IRS Associate Chief Counsel. "It would also catch many small businesses and family partnerships in its wake, adding to an already unfavorable regulatory climate." He also notes that Romney's "offshore" investments are part of a growing trend where investors seek investments that are globally diversified or not available in the U.S. because of regulatory restrictions. For more information, contact Rhonda Reddick at 800-559-4534 or rhonda@androvett.com.

Family Sues Hospitals in Patient Death
The mother of a Dallas man who died while being treated at Parkland Memorial Hospital has filed a civil rights lawsuit against the hospital and the University of Texas Southwestern Medical Center. George Cornell had a history of heart trouble and schizophrenia when he was admitted to Parkland in February 2011. The lawsuit charges that rather than properly treating Cornell and monitoring his progress, the staff provided powerful medications, used improper force to restrain him, and left Cornell alone in the room where he died. "This is a lawsuit about holding medical facilities responsible to that most basic requirement of medical care – the one that says, ‘First, do no harm,'" says attorney Charla Aldous, who represents Cornell's family. Government investigations have shown that Cornell's care violated basic requirements for hospitals treating Medicare and Medicaid patients. For more information, contact Mark Annick at 800-559-4534 or mark@androvett.com.

FCC Case Adds to Packed SCOTUS Term
If the U.S. Supreme Court's term wasn't jam-packed enough with cases that will shape American health care for decades and could influence the outcome of November's elections, another blockbuster case is in the offing. On Jan. 10, the Court heard arguments in FCC v. Fox Television Stations, in which the justices must determine whether the First Amendment prohibits FCC regulations banning certain offensive language and nudity on network television. "The court has not heard a major broadcast indecency case since 1978, and the justices realized that a lot has changed since then," says Carl Cecere, attorney at the Dallas appellate law firm Hankinson LLP. "Several seemed to wonder whether it was still fair to single out network broadcasters when so many people now have access to cable TV and the Internet, where providers are able to show and say whatever they wish." For more information, contact Dave Moore at 800-559-4534 or dave@androvett.com.

U.S. Supreme Court Arguments Require Flexibility
The high-profile cases currently pending before the U.S. Supreme Court will be presented by some of the country's very best attorneys, but with so much at stake, being the "best" requires flexibility – not a "canned argument," says Houston's Richard O. Faulk, Litigation Chair at Gardere Wynne Sewell LLP. "One of the biggest mistakes is thinking you are so prepared that you know exactly what you're going to say. But once you're there, it is not your argument anymore. It's theirs," says Faulk, who has presented oral arguments before the Court. "You're engaged in a conversation with people who are even more prepared than you are – because it's their court and they are going to make the decision. You can't be inflexible. You must engage them in an active dialogue." Faulk recently participated in mock U.S. Supreme Court arguments on climate change tort liability hosted by the Environment, Energy & Natural Resource Center at the University of Houston Law Center. For more information, contact Rhonda Reddick at 800-559-4534 or rhonda@androvett.com.

Employee Anti-Poaching Agreements Illegal
Corporate executives from various industries are closely watching an ongoing federal lawsuit in San Jose, Calif., where Apple Inc., Google Inc., Intel Corp. and other tech companies have been accused of agreeing not to hire or poach the other companies' workers. Employees say the tech employers participated in a conspiracy to cut job competition and keep salaries low. "It is illegal. Essentially it is a presumptive antitrust violation and will lead to both civil lawsuits and a Justice Department investigation," says exectutive employment lawyer Joe Ahmad of Houston's Ahmad, Zavitsanos, Anaipakos, Alavi & Mensing P.C. "The effect and clear purpose of this conduct is to reduce competition and restrict wages for skilled employees. The key is when two or more competitors make this agreement rather than simply deciding not to poach unilaterally. That scenario creates an illegal agreement to reduce competition and limit wages." For more information, contact Mary Flood at 800-559-4534 or mary@androvett.com.

Fracking Comes to Europe
Poland, Germany and the United Kingdom are beginning to embrace an energy alternative pioneered in America: natural gas from shale deposits. Despite stiff challenges, major energy companies are gaining concessions to explore European shale reserves and use the controversial process of hydrological fracturing, or fracking. "Europe has little history or culture that supports onshore drilling, the geology is not as favorable, and there is no established oilfield services sector," says attorney Scott Schwind from the Houston office of Thompson & Knight. So while Poland has awarded some 90 licenses for shale exploration, Bulgaria recently banned the fracking process within the country's borders. But because of higher energy prices on the European market and geopolitical incentives, there are opportunities for companies to leverage their shale expertise and experience. "It's too early to say if the opportunities will translate economically, but shale development in Europe does not need to be a bonanza in order to be successful." For more information, contact Barry Pound at 800-559-4534 or barry@androvett.com.

Texas Swims Against the Alimony Tide
Many states, including Massachusetts, Florida and New Jersey, are working to create stricter alimony laws that would provide less support to ex-spouses. Texas, however, is going in the opposite direction, says Brad LaMorgese, a partner in the Family Law firm of McCurley Orsinger McCurley Nelson & Downing L.L.P. "In the last legislative session, Texas substantially increased the availability and amounts of alimony available after divorce," he says. "By national standards, though, Texas still offers less alimony than other states. It seems like the national consensus is moving toward a more fair number for both spouses post-divorce, with the lower states coming up and the higher states coming down." For more information, contact Rhonda Reddick at 800-559-4534 or rhonda@androvett.com.