JULY NEWSLETTER

Newsletter Archive

Charlie Faruki was the course planner for, and participated as a member of the faculty of, a CLE program held in Columbus on July 9 at the Ohio CLE Institute, titled Management of Litigation by In-House Counsel. The program was an intermediate/advanced level seminar presented by experienced in-house counsel and the outside counsel with whom they work, covering topics including differences between managing corporate/transactional matters and litigation matters; budgeting, billing, and creative fee arrangements; partnering/work sharing arrangements: in-house counsel as part of the counsel team; and working efficiently with outside counsel in litigation matters. Charlie Faruki was one of the speakers on these topics.

Charlie also participated as a member of the faculty in a Skills Training Workshop for younger lawyers on Direct and Cross Examination sponsored by the Ohio CLE Institute in Columbus.

FIRM PREPARED FOR YEAR 2000 LITIGATION

The year 2000 presents opportunities and challenges for every business. For companies that rely in any manner on data files with date components, the year 2000 presents specific challenges. For the user of computer technology, the year 2000 may affect marketing and sales, distribution or the operation of "smart" machinery which uses embedded chips or is otherwise controlled by software. Producers and developers of software and hardware must protect their intellectual property, trade secrets and their businesses from potential exposure. These problems may be present not only for obvious reasons, i.e., software for internal use, but also for less apparent reasons. What business operates in isolation, not depending on suppliers and third parties for support?

Businesses are thoroughly evaluating their year 2000 ("Y2K") compliance. Faruki Gilliam & Ireland P.L.L. is prepared to offer time-proven skill, creativity and persistence with Y2K litigation issues, including claims related to warranties, breach of maintenance contracts, consumer protection laws, director and officer liability, fraud, licenses, patent infringement, trademarks and other claims.

The following proactive measures may help your business to either avoid litigation or be better prepared once litigation begins:

1. Perform due diligence; evaluate and investigate thoroughly your company's preparedness for Y2K problems, which may include an audit of possible internal and external infection, and of all insurance policies and contracts. Understand that your company's reliance on computer technology may not always be apparent. In the end, you must be able to answer the following question in the affirmative: did I act in the best interest of my organization and as a reasonable person would under similar circumstances?
2. Make certain that any new contract addresses possible Y2K issues, including warranties and indemnification clauses. Often, review of such clauses by an attorney familiar with litigation can help you identify weaknesses in your contracts. Develop a standard for Y2K compliance and insist upon its inclusion in contracts.
3. Develop a plan to monitor your Y2K problems and your legal response in the event your plan fails.
4. Implement a plan to limit potential exposure and otherwise improve your businesses position in future litigation, including strict control over documents generated during your Y2K audit. Require all directors and officers to become familiar with the Y2K issues and your company's response. Closely monitor legislation related to Y2K litigation and adjust your plans accordingly.
5. Conduct and document meetings to establish that your company has responded to the Y2K problem, especially if your company is publicly-traded. Consider whether to establish a committee of directors, officers and outside advisors to supervise your legal and business plans.
6. Meticulously document your actions, including responses to Y2K-compliant inquiries, with the advice and assistance of legal counsel, always remembering that all documents may be used against you in future litigation.
7. Protect your trade secret and intellectual property; Y2K compliance may require intercompany access to sensitive information.

The above measures are only briefly described. The year 2000 will create problems unique to each business and a general list will not address all potential litigation problems faced by every business. Consultation with an individual familiar with these issues, including an attorney, can help better prepare your business for the year 2000.

For more information, contact D. Jeffrey Ireland at (937) 227-3710 or e-mail at: DJI@fgilaw.com.