Another Hitchcock Film Recommendation

From the great Hitchcock film, Dial M for Murder: "[P]eople don't commit murder on credit."

If you haven't seen it, I recommend you watch it. Woody Allen's 2005 film, Match Point, seems to have drawn some inspiration from this Hitchcock film. I usually like Woody Allen, but for some reason, I didn't like Match Point. Most of my friends, however, did, so don't let me stop you from seeing it.

Inspiring Speech

American Scholar, Spring 2010
Article: Solitude and Leadership
Author: William Deresiewicz

http://www.theamericanscholar.org/solitude-and-leadership/

Why is it so often that the best people are stuck in the middle and the people who are running things—the leaders—are the mediocrities? Because excellence isn’t usually what gets you up the greasy pole. What gets you up is a talent for maneuvering. Kissing up to the people above you, kicking down to the people below you. Pleasing your teachers, pleasing your superiors...

Henry David Thoreau looks alive and well in the body of William Deresiewicz.

Friday Night

Just saw Darrell Hammond at San Jose's Improv. He was good, but not great. Most of his stuff is recycled, but it's mainly impersonations, so his routine never gets old. Hammond's Arnold Schwarzenegger impression is probably one of his best, and I also enjoyed his Bill Clinton and Jesse Jackson impersonations. Hammond thanked Bill Clinton for his house during the routine, and he doesn't seem to think too highly of the South (where he's from), Panda Express, or Hillary Clinton.

Jim Breuer, also an SNL alumnus, is still the best stand-up comic I've ever seen live.

Government Workers and Pensions

In today's WSJ (April 29, 2010), Gary Shilling delivers the lowdown on government pensions:

http://online.wsj.com/article/SB10001424052748704131404575117943161614762.html

Years ago, there was an informal "social contract"—public employees generally received lower wages than private-sector workers, and in return they got earlier retirement and generous pensions, allowing them to catch up. That arrangement has long since gone by the boards. The result is a remarkable trend. State and local government employees for years have received pay increases in excess of inflation, and BLS figures show they now have wages that are 34% higher on average than in the private sector.

To me, it's even more simple. It is foolish to spend lots of money on unproductive people, because each dollar that goes to someone who isn't working is a dollar taken away from someone who wants to work or is currently working. Typically, working and non-retired people contribute more to the economy because they spend more money on purchases such as homes, cars, appliances, and miscellaneous items, including items for their children.

Also, if retired people--whether Joe the Plumber or Joe the Police Officer--continue to make large purchases, they would actually hurt younger, newer couples by raising demand and prices. For example, if a retired person has a large pension and decides to buy a second home, s/he takes the home off the market for a first-time homebuyer who now has to look elsewhere for a home or try to compete with someone who has a stable pension and who has had decades to built up assets.

In a world where products and money are not infinite, each dollar makes a difference, whether positive or negative.

Pension Promises Bankrupting California?

Interesting article (April 12, 2010, Sac Bee, Phillip Reese) on public pensions and their effect on California cities and counties:

http://www.sacbee.com/2010/04/11/2670020/pension-promises-threaten-california.html

"The old joke is that General Motors is just a health insurance company that makes cars on the side," San Luis Obispo County Supervisor Adam Hill said during a pension presentation at a recent board meeting. "My concern is that the county government is becoming a pension provider that provides government services on the side."

The legacy of Gray Davis: blackouts and unsustainable pension promises?

Economy is Linked in Strange Ways

Until this year, I had been a loyal Wall Street Journal subscriber. I usually paid less than $200 for an annual subscription, but last year, the WSJ decided to increase the price to over $300/yr. I balked. For a while, I received only the local paper. The WSJ would call me once a month--usually very early in the morning--to try to get me to renew, but the sales rep wouldn't budge on the price.

After a few months, I grew tired of the local paper and signed with the New York Times, but just its Sunday edition. Some time thereafter, the WSJ sent me a renewal request with a price I was willing to pay. Apparently, if you wait 180 days between WSJ subscriptions, the WSJ finally offers you its "old" or "original" price, which--last time I checked--is less than $200. By this time, however, I thoroughly enjoyed the New York Times, especially its "Modern Love" Sunday pieces, and was unwilling to go back to the WSJ.

Why should anyone care about my newspaper habits? Because even small consumer habits, in the aggregate, create ripple effects. When I was receiving the weekday WSJ, I would go to Panera Bread (PNRA) for coffee and a cobblestone pastry every weekday. But once I stopped receiving the weekday paper, I skipped my Panera Bread morning outing. That eliminates over a thousand dollars from Panera's annual revenue, and they did nothing to lose my business--the Dow Jones & Company (NWSA), owner of the WSJ, caused me to change my morning habits with its strange marketing strategies. Now, with a much longer and more informative Sunday paper, I spend more time on the weekend at my local coffeeshop, which is usually Peet's Coffee (PEET). Dow Jones & Company basically transferred some of my money from Panera Bread to Peet's Coffee and Tea. Yet, no one at the WSJ intended Panera to lose my business and Peet's Coffee to gain it.

What is the point of this story? Basically, the economy is extremely difficult to manage because of the potential for unintended results. When the government tries to fix the economy, it, too, creates unintended consequences. Right now, we don't know the exact nature of those consequences, but at some point, we will be able to study how the stimulus package created unintended winners and losers. I agree that Congress should limit leverage on Wall Street. At the same time, Americans are losing sight of the big picture when it comes to federal spending. For example, the portion of the federal budget dedicated to defense spending continues to increase. It is now 23% of the entire federal budget. TARP, which many Americans bitterly protested, was only 4% of the 2009 federal budget. The ever-increasing defense budget has more than just financial consequences. Over 4,200 American soldiers have died in Iraq. Over 30,000 American soldiers have been injured in Iraq. Yet, many Americans, encouraged by mass media, pay more attention to "tea parties," golfer Tiger Woods' personal life, sports, and reality television. And so it goes.

Excessive Government Pay?

The best part is the S.F. deputy police chief saying he's helped reduce the deficit because of the taxes he paid on his half million dollars salary. (Rachel Gordon, April 26, 2010, SF Chronicle)

http://www.sfgate.com/cgi-bin/article/article?f=/c/a/2010/04/25/MNC51CLUBN.DTL

Oh, the arrogance and self-dealing.

Usain Bolt

[Update: link no longer works. Sigh.] 

Usain Bolt will never cease to amaze me: http://highschool.rivals.com/content.asp?CID=1078141 4x100 relay. Guess which runner he is.

Fun Tips

Here is a list of good commencement speeches and funny films:

Commencement Speeches

1. Will Ferrell's 2003 Harvard commencement speech. See if you can spot Al Franken in the audience.

2. Steve Jobs' 2005 commencement speech at Stanford University.

3. Ellen DeGeneres' 2009 commencement speech at Tulane University.

I was too lazy to add all the links, but you can find the speeches on YouTube.

Funny Films and Shows

1. The I.T. Crowd, Seasons 1 and 2

2. Adam's Apples, a Danish film

3. Wedding Crashers

4. My Cousin Vinny

Cary Grant and Grace Kelly

Just saw To Catch a Thief. Not one of Hitchcock's usual suspense films--it was very funny and had wonderfully comedic banter:

Francie: Money handles most people.

John: Do you honestly believe that?

Francie: I've proved it.

John: You're a singular girl.

Francie: Is that good or bad?

John: Oh, it's good, it's quite good. You know what you want. You go out after it and nothing stops you from getting it.

Francie: You make it sound corny.

John: Oh no, you're a jackpot of admirable character traits.

Francie: I already knew that.

John: Yes, I will say you do things with dispatch. No wasted preliminaries. Not only did I enjoy that kiss last night, I was awed by the efficiency behind it.

Francie: Well, I'm a great believer of getting down to essentials.

It's much better in the spoken word than on paper.

The Average Lawyer's Creed?

Isaiah 59:4 "No one calls for justice; no one pleads his case with integrity. They rely on empty arguments and speak lies; they conceive trouble and give birth to evil."

Update: a friend says that the above quote should apply to politicians, not lawyers.

Gender Gap

From NYT, April 18, 2010, Sunday Business, page 8:

Women account for just 6 percent of the chief executives of the top 100 tech companies, and 22 percent of the software engineers at tech companies over all, according to the National Center for Women and Information Technology. And among venture capitalists, the population of financiers who control the purse strings for a majority of tech start-ups, just 14 percent are women.

Interesting.

Malanga on California's Government Unions

Steven Malanga on California's government unions, including the teachers' union:

http://city-journal.org/2010/20_2_california-unions.html (City Journal, Spring 2010, "The Beholden State")

You wouldn't think that a public school teacher could possibly be an enemy of private enterprise and fiscal responsibility, but the rank-and-file don't usually dictate policy to their union bosses. Also, political discourse has become so hostile, no large entity seems to be fighting over the middle ground, where common sense resides.

Shameless Self-Promotion

Recently, I was featured in some publications. I wanted to put the links in one place, and this blog seemed like a good place. So, without further ado, if you are interested in SCU lawyers and what it's like to coach youth basketball, you might like the following links:

http://law.scu.edu/sclaw/spring-2010-private-practice.cfm

http://www.scribd.com/doc/27008818/Daily-Journal

http://ucdavismagazine.ucdavis.edu/issues/sp10/letters.html#letter_9

http://proxyexchange.org/barrister_program [current as of 1/2011]

Describing himself as philosophically Jeffersonian, Matthew [Rafat] is passionate about economics. It is not the theories or the personalities that draw him. It is the issues: "What concerns me now is that so many people in the U.S. seem to have lost their capacity for long term planning, delayed gratification, and sacrifice for future generations. At the end of the day, capitalistic systems rely on a fragile balance of supply and demand; thus, they only work if most people are honest, reasonable, and prudent, and they work best when economic transactions are transparent."

Ferrari Sighting in Downtown SJ

San Jose's Tea Party

San Jose had a Tea Party rally yesterday. There were many interesting signs from adherents and opponents. One teenager carried a sign stating, "Future Tax Slave." Someone else carried a sign proclaiming that "a village in Kenya is missing an idiot." Another interesting one-liner: "Save trees--stop printing money."

Meanwhile, Tea Party opponents mocked all the sign-carrying with (what else?) their own signs: "THIS IS A SIGN"; "THREE LETTER SIGN"; and "Don't Spread on Me," with a picture of a sliced bagel.

I did not see anyone carrying any guns. Everyone I noticed was polite, and many people were arguing respectfully with each other.

Civilian Courts Successfully Handle Terrorists

Next time someone tries to tell you that giving terrorists due process of law isn't feasible, remind him or her that "U.S. courts have, in fact, handled hundreds of terrorism-related cases since 9/11. Of the 828 defendants indicted in the United States on terrorism-related charges, 593 have been processed through the civilian court system, according to NYU Law's Highlights From the Terrorist Trial Report Card... Of the 593 defendants, 523 have been imprisoned...an 88.2 percent conviction rate." (Bob Kemper, Washington Lawyer, March 2010)

Brocade Shareholder Meeting (2010)

I attended Brocade's shareholder meeting on April 12, 2010. The company offered shareholders coffee, tea, water, and some of the best chocolate chip cookies I've ever tasted. 

At the front of the room were Tyler Wall, Dave House, Mike Klayko, and Richard Deranleau. This year, more Board members appeared in person, so the meeting seemed more fully attended. CEO Klayko delivered an oral presentation accompanied by a slideshow. Below are the main points from his presentation: 

• Network traffic continues to increase. 

• The amount of digital data is already massive--if printed in hard copy, it would form a line from Earth to Pluto and back twenty times. 

• There are over 8,000 laws on data regulation, which is an excellent situation for storage and storage area networking companies. For example, by law, financial companies need to maintain several copies of all emails sent. 

• People are afraid of the word, "delete," and will err on the side of keeping everything. 

• By 2015, consumers are expected to own 15+ billion networking devices. 

• Qzone is the Facebook of China and reaches more users than Facebook. [More consumers will be storing, publishing, and accessing information online not just in the United States, but worldwide.] 

• Cloud computing appears to be a sustainable trend. Salesforce.com (CRM) is a good fit for Brocade, and CRM also uses Brocade technology. 

• 60 to 70% of business costs typically revolve around employees, which is why corporations laid off so many employees last year; however, the workload continues to grow, and at some point, companies must re-hire employees to keep up with demand. 

• Brocade offers "unmatched simplicity, investment protection, non-stop networking, and optimization." 

After the presentation, it occurred to me that Brocade had delivered an excellent presentation about the overall marketplace but not about its own company. For example, there was no information showing how Brocade would be able to effectively compete with larger players such as Cisco (CSCO). The presentation didn't have information about Brocade's market share; specifics about Brocade's competitive advantages; new products; new streams of revenue; cost reductions, or anything else that would impact earnings per share. 

I remarked that I thought the presentation was great, and I felt like running out and buying shares in the major players in the data business--such as IBM, HP, and Cisco. In short, I didn't see why I should buy Brocade over Cisco or other technology companies that handle data. I also compared Brocade to the independent coffeeshop on the corner with Starbucks/Cisco opening franchises left and right. How did Brocade plan on competing with Cisco? 

CEO Klayko said that such comments had been made to him for the past ten years. He said that Cisco has been a "ten year conversation," and "we're still here." He then generally mentioned Brocade's "expanding product portfolio," and then briefly differentiated Brocade from Cisco by saying that Cisco believes in "vertical integration" while Brocade believes in "horizontal integration." 

Another shareholder asked about Foundry Networks, a previous Brocade acquisition. He said that Brocade had a good product line, but sales and marketing needed improvements. He appeared to have information about sales in Europe, and he indicated that Cisco was hammering Brocade overseas. "Nobody knows about you," he remarked. CEO Klayko responded by saying that he agreed that Brocade needed better branding, and part of the failure was because Brocade was a Business-to-Business (BtoB) company, not a consumer company. He agreed that Brocade needed to build on sales, but also said that half of Brocade's business already comes from outside the United States. 

And just like that, the meeting was over. I introduced myself to the shareholder who mentioned European sales, and he told me that Brocade dominated the storage area networking space. Brocade apparently has 75% market share compared to Cisco's 17%. Somehow, this gentleman realized how to sell Brocade more adeptly than the company's CEO. 

Brocade seems to have positioned itself as the alternative to Cisco, which is a horrible sales pitch. Pepsi doesn't walk around saying, "Try us when you're tired of Coke." And if someone ever told Pepsi's CEO that she should market Pepsi as a cheaper, more simple version of Coke, she would probably open a Montgomery Burns style trapdoor while hissing, "Release the hounds." 

Incredibly, Brocade's marketing strategy seems to be based on the idea that Cisco ought to have a competitor, so why shouldn't it be Brocade? Brocade's management and Board of Directors really ought to talk to RedHat and other Linux-based operating systems purveyors. Ask them how that type of sales pitch worked against the Cisco of software, Microsoft (MSFT). 

How could a company be so clueless when it comes to basic marketing strategy, especially in an increasingly global environment? Well, I lost interest in Brocade stock after last year's annual meeting. (You can read my long-winded rationale HERE if you're interested.) I sold my shares, thinking that a potential buyout wasn't enough justification for holding onto Brocade shares. Now, it's quite possible that someone will eventually buy Brocade. About two years ago, Brocade removed its "poison pill" provision, basically alerting the world that it was open to a takeover. (Also, maybe Carl Icahn will show up. He did make some money on Yahoo, didn't he?) 

Also, I like CEO Klayko--he's down-to-earth, diligent, not arrogant, and clearly a good guy. Yet, despite all of its good points, Brocade must realize that Wall Street will never give it any respect until it tries to position itself as a leader in the industry. No one wants to buy products from a company that positions itself as Cisco-lite and talks about its major competitor in respectful, almost hushed, tones. (Contrast Brocade's comments about Cisco with Salesforce.com's CEO's comments about its competitor, Oracle. Slight difference, no?) 

If Brocade wants its stock price to increase, it needs to grow some cojones and improve diversity in the upper ranks. Right now, Brocade runs like a company that doesn't mind being in second place. Absent some major changes, Brocade will continue to be the nerd at the high school while Cisco struts around as the cool kid. Thus, Brocade can talk all it wants about how much better its products are from a techie standpoint, but at the end of the day, it's Cisco--with its massive cash, effective marketing, more aggressive management, and better management diversity--that will get the beautiful fans. If I had to give Brocade's CEO a pep talk, here's what I would tell him: 

I don't want you to be the guy in the PG-13 movie everyone's really hoping makes it happen. I want you to be like the guy in the rated R movie, you know, the guy you're not sure whether or not you like yet. You're not sure where he's coming from, okay? You're a bad man. You're a bad man, Mikey. You're a bad man. You're a bad man. 

Mr. Klayko: I'm really hoping you can make Brocade into the bad man on the block. You're so money, but you don't even know it. 

Disclosure: I bought more BRCD shares after the meeting, but only because I expect IBM to buy out Brocade at some point.

Congrats to My Friends and their Newborn Son

Finally, a Good Lawyer Joke

From the awesome show, Community, comparing being a doctor to being a lawyer:

Well, anybody could be a lawyer. You can even represent yourself. You can't do surgery on yourself. It's illegal. You'd get arrested. And then you'd get a free lawyer.

A great show, but Hulu only has two episodes posted. Bonus: Chevy Chase is fantastic on the show.

Wealth Distribution

From UC Santa Cruz Professor G. William Domhoff:

http://sociology.ucsc.edu/whorulesamerica/power/wealth.html

Wealth Concentration: As of 2007, the top 1% of households (the upper class) owned 34.6% of all privately held wealth, and the next 19% (the managerial, professional, and small business stratum) had 50.5%, which means that just 20% of the people owned a remarkable 85%, leaving only 15% of the wealth for the bottom 80% (wage and salary workers)

Estate Tax: Figures on inheritance tell much the same story. According to a study published by the Federal Reserve Bank of Cleveland, only 1.6% of Americans receive $100,000 or more in inheritance. Another 1.1% receive $50,000 to $100,000. On the other hand, 91.9% receive nothing (Kotlikoff & Gokhale, 2000). Thus, the attempt by ultra-conservatives to eliminate inheritance taxes -- which they always call "death taxes" for P.R. reasons -- would take a bite out of government revenues for the benefit of less than 1% of the population.

You should read the entire article (click on link above). The charts are especially fascinating.

Update: per the Federal Reserve Bulletin (September 2014, Vol 100, No 4) aka the 2013 Tri-Annual Survey of Consumer Finances from 2010 to 2013, about 1 in 5 American families earns over 100,000 USD each year.

As of 2013, if you are between 18 to 35 years old and your net worth is more than 10,400 USD, you are better off than half of all American families in your age group.  

Free Book on Investing

I don't know how long the offer will last, but you can click on THIS LINK for a free book by Burton Malkiel: The Elements of Investing.

Back in the day, Mr. Malkiel's book, A Random Walk Down Wall Street, heavily influenced my financial education (even though I disagreed with his central thesis on EFM). Apparently, this new book is for beginners, but if Mr. Malkiel is involved, it should be fun to read for everyone.

Stranger than Fiction

[Published March 11, 2014]

"Let no young man choosing the law for a calling for a moment yield to the vague popular belief that lawyers are necessarily dishonest. Resolve to be honest in all events; and if, in your own judgment, you cannot be an honest lawyer, resolve to be honest without being a lawyer. Choose some other occupation." -- Abraham Lincoln, from another era. 

I can talk generally about an academia-governmental complex forming, not just with student loans (which the government profits from), but the idea that schools no longer teach practical skills and therefore rely on their ability to make connections, many of whom are governmental, therefore rendering schools less likely to criticize government overreach.  

I can talk generally about the public’s mistaken assumption that all judges are worthy of being trusted merely because a politician gave them a title. (Riddle me this: people hate politicians and lawyers, but respect judges, who are just former lawyers. Speaking of which, forgive me this soapbox moment: stop electing D.A.s to the bench and look instead at public defenders and private civil law practitioners, especially at smaller law firms. You’re far more likely to see a judge on a civil case than a criminal case if you’re a law-abiding resident, and you want your judge to have experience with different areas of civil law. Finally, when you elect a D.A., you’re often electing someone who is beholden to the police union. Yet, the point of having a separate judicial branch is to create independent oversight, especially over the police.) 

I can talk about the lack of diversity on the local bench—18 out of 89 judges are people of color, in a county where about 37% of the population (including myself) are immigrants. 

But I'll talk about the American public's failure to understand two crucial elements of America's success: first is immigration. On 9/11, some people think of burning buildings, Bradley/Chelsea Manning, Iraq, or Bush, but me, I think of a poem:  "I've promised myself, even if I'm the last snowman, that I'll ride into spring on their melting shoulders." As I wrote, “[The poem] represents the immigrant experience and persevering through difficulty to ensure that previous generations…did not toil in vain.”  In other words, we’re all immigrants here in America, though some of us are thrice-removed, trying to find springtime.  Corny, yes.  I stand by it.  As far as I’m concerned, America is successful because of our openness to immigration.  That iPhone?  Steve Jobs’s biological father was from the Middle East.  eBay?  Persian guy from France. And so on. 

Second is the principle that public and private spheres are different and must remain so. The failure to understand this concept has caused many government employees to misunderstand their role--namely, to serve the public and, in higher positions of discretion, to have integrity. We seem a long way from the 1970s bumper stickers of "Question Authority." We are going in the wrong direction.

I’ll close with one of my favorite legal quotes from then-law-student (later Supreme Court Justice) Louis Brandeis:

That the individual shall have full protection in person and in property is a principle as old as the common law; but it has been found necessary from time to time to define anew the exact nature and extent of such protection. Political, social, and economic changes entail the recognition of new rights, and the common law, in its eternal youth, grows to meet the new demands of society. Thus, in very early times, the law gave a remedy only for physical interference with life and property, for trespasses vi et armis. Then the ‘right to life’ served only to protect the subject from battery in its various forms; liberty meant freedom from actual restraint; and the right to property secured to the individual his lands and his cattle. Later, there came a recognition of man's spiritual nature, of his feelings and his intellect. Gradually the scope of these legal rights broadened; and now the right to life has come to mean the right to enjoy life, -- the right to be let alone [by the government]; the right to liberty secures the exercise of extensive civil privileges; and the term "property" has grown to comprise every form of possession -- intangible, as well as tangible.

           -- “The Right to Privacy,” Harvard Law Review, Warren and Louis Brandeis, 1890.

Update: though Brandeis was speaking of government in relation to people, nothing in his comments disallows stringent regulation against groups, nonprofits, and corporations. 

Law: Juries, Verdict Forms, and Keyser Soze

Rule #1 as a plaintiff. Strike all the engineers from the jury pool.

Jurors should remember: you don't have all the information in a trial, and you don't know how the legal process works. Just because a lawyer doesn't spend time trashing the other side, it doesn't mean the other side is angelic. Sometimes, we cannot introduce evidence about how bad the other side is, even if he's bashing our side. Sometimes, judges rule that one side can say certain things, and we can't respond in kind. That means if we mention certain things, the judge can declare a mistrial, and we have to do the whole trial over again.

Don't make any assumptions. Just look at the evidence. Don't assume that you're smarter than everyone else, and you're able to see something that isn't actually in front of you in the form of testimony or a document.

Also, if you do rule against a plaintiff, it usually means s/he has to pay the other side's costs. Sometimes, if you're not sure about who's right, the best thing to do is to rule for the plaintiff and give him or her one dollar.

For lawyers: don't assume that a plaintiff will always benefit from a general verdict form instead of a special verdict form. (A special verdict form forces the jury to think hard about each element of the case, while a general verdict form basically asks, "Is he liable for fraud? yes/no.") By giving the jury a simplified general verdict form instead of a special verdict form, jurors were able to avoid thinking hard about the case.

Also, a simplified form allows the foreperson to advance her/his own ideas about the law, even if s/he is completely wrong. Here, we thought the case was already complicated enough, so all of us agreed on a general verdict form to make things easier on the jury. Unfortunately, the general verdict form allowed the jury to bypass thinking analytically about the case and to decide based on their general feelings and the foreperson's own ideas about the law. For example, after the trial, one juror (the foreperson) said, "The other side's conduct wasn't flagrant enough." I was thinking, "Dude, that's not the law. There's no law that says, 'Only flagrant conduct is illegal,' or "The conduct must be flagrant to be illegal.'"

More advice for lawyers: don't always take the high road. If the other side is bashing your client and name-calling, try to find some way of countering without causing a mistrial. Jurors will choose sides based on whom they think is the good guy or the bad guy, regardless of the law. For example, if the other side hasn't bifurcated punitive damages, bring up the value of his home or another large asset if he keeps saying he's judgment-proof. Or bring up his unpaid debts. Or his or her massive wealth. You need something to make the jurors think they're dealing with someone who can handle a judgment or who deserves a judgment.

On the other hand, consider dropping punitive damages if you don't have a slam dunk situation. You won't be able to bring in any evidence of the defendant's net worth or financial information, but the punitive damages portion will probably get bifurcated anyway (thereby preventing you from talking about the other side's financial situation, bad debts, massive wealth, etc.). The upside is that you won't have to prove malice or oppression. If you try to show malice or oppression, jurors may get confused about the burden of proof on the original claim. For example, they may think that negligence requires malice (it doesn't). Lawyers may want to tell a jury in closing argument whether a specific claim requires specific intent.

I am going to need some time to get over this one. I will not be posting for a while.

P.S. Note to judges: if you allow the other side to bring up stuff about atomic bombs or to equate a foreign government's actions with an individual, no matter what the result, one party will think the process was tainted. Telling someone the remedy for any resulting prejudice is a mistrial--where a party and his lawyer have to come back and do everything all over again--is fair but somewhat impractical when one side is pro se and essentially unemployed, and the other side is paying for a lawyer and expert witnesses. I don't want to focus too much on the national origin issue now, but I might write about it later. At the end of the day, I feel the jury treated my client, an educated U.S. citizen of Middle Eastern descent, as not fully American. Why would they do that? Why would they side with the lawyer who had misrepresented facts all week? Could all the talk about atomic bombs and religion have something to do with it? Was it something else? Was it a combination of different factors, some permissible and some impermissible?

(And yes, I did ask the court to exclude testimony and comments about foreign governments and international affairs. The court wasn't sympathetic to my argument that mentioning the Iranian government and current events would result in prejudice. I argued that allowing such comments and testimony would be unduly prejudicial when the media is currently hyping an Iranian nuclear threat and when the primary images of Iranians in the mainstream media are of the much-hated Iranian president. The court wasn't swayed by my argument. The court did exclude evidence of my client's international travels, but the defendant still mentioned it during the trial. The judge stopped the trial, called us over for a sidebar, and warned the defendant that he was in contempt and should not mention excluded evidence again. The defendant went back to calling my client a "professional plaintiff," which was somewhat hilarious to hear from a plaintiff's lawyer. Also, I don't know if this should make me feel better or worse, but I believe the judge was sincerely fair. I still believe we were very lucky to get an excellent judge.)

Update: I forgot to add one more interesting tidbit. After the trial, a judge can ask the jurors how they voted if requested by a party. This is calling "polling" the jurors. According to the one juror who voted in our favor, someone switched her vote during polling. So one juror decided one thing in the jury room and another thing in public. Why would someone switch her vote?

Keep in mind, other than the defendant's/lawyer's own testimony, no other evidence was offered to prove my client had a bad motive for bringing his current lawsuit. The defendant even said at one point, "You're slicing baloney," when I asked him about the alleged conversations between himself and my client. Two other lawyers who were in the room and heard defendant's allegations found them to be totally baseless and indicated the defendant was not believable. Under cross-examination, the defendant testified that he and my client had a 2 to 3 hours conversation about my client's ex-wife, my client's search for an Iranian wife, and Middle Eastern politics. Later, the defendant suddenly added that my client had discussed the Holocaust during this conversation. I asked about the percentage of the conversation dedicated to personal issues, Middle Eastern politics, and the Holocaust. He answered, "50/50." I asked him how three different topics could be "50/50," which spurred his "slicing baloney" comment. During this part of his testimony, the defendant mentioned Iran's conference against the Holocaust and said the Holocaust is called the "Hollow Holocaust" in Iran. No one in the jury appeared fazed at all, perhaps because by that point, they were tired and had been desensitized by the earlier comments about nuclear bombs and government actions. My client is a clean-shaven U.S. citizen who has been living in America since 1978.

Furthermore, the defendant once accused a sitting judge of being anti-Semitic, a claim that was rejected. Defendant's allegation of judicial anti-Semitism occurred in a separate case, and I didn't want to risk a mistrial/contempt by mentioning it after the judge ruled that we could not discuss unrelated cases.

The one juror who voted in our favor on the legal malpractice claim? A retired ex-Air-Force sergeant. Post-trial, when the jurors learned more information about the defendant, they appeared shocked. The retired ex-Air-Force sergeant even angrily exclaimed, "I told you so," to one of the other jurors.

Union Influence

Scott Herhold, on San Jose's public safety unions and the financial strain they cause:

[What kind of city is San Jose?] Is it the one that gave police a series of nice little pay boosts after 9/11, bumps that take the average wage to more than $114,000 after five years on the job?

Is it the one that, thanks to an arbitration system it agreed to in the 1980s, is paying cops and firefighters 90 percent of their salary as a pension after 30 years?

In the past nine years, driven by public safety, the city's employee costs — wages and benefits — have increased by 64 percent. That's roughly 7 percent a year. I know I haven't done as well.

Wow. Interesting article.

Who's Running the Show?

From SJ Merc, Internal Affairs column, March 14, 2010:

A new report from the Fair Political Practices Commission — California's elections watchdog — mines years of campaign and lobbyist reports and turns up this nugget:

Over the past decade, 15 special-interest groups have spent more than $1 billion in an all-out bid to influence the state's affairs. They spent that money to sink ballot initiatives and boost candidates. They fed it directly to political parties' war chests. (Democrats came out slightly ahead of Republicans.) And they spent hundreds of millions wining and dining lawmakers and other state officials.

Almost a fifth of the cash came from one group: the politically powerful California Teachers Association ($211.8 million). The teachers union was followed by an affiliate of the Service Employees Union International ($107.5 million), a pharmaceutical industry group ($104.9 million) and two deep-pocketed Indian tribes ($83.6 million and $69.3 million). Rounding out the top 15 are some other big names, such as Pacific Gas & Electric, Chevron, AT&T and Philip Morris. (For the full report, go to www.fppc.ca.gov/reports/Report38104.pdf.)

So when we talk about special interests influencing state governments, remember: it's the teachers and other unions who have provided the most grease to Sacramento. Is it any wonder Sacramento provides teachers and unions with special benefits unavailable to most private sector workers? I'll end with this gem from the article:

"The conclusion is inescapable," reads the report's executive summary. "A handful of special interests have a disproportionate amount of influence on California elections and public policy."

Youth Basketball Season Over

Today is the last day of the youth basketball season. I hope my team wins, but they're up against a good team. After today, I'm not sure what I'm going to do with my 2010 Saturdays.

Update: my team lost, but all of them had fun. As usual, I had one parent who expected me to be overly tough with his son, even though his son just didn't have the physical development necessary to do certain things. Boys tend to develop in quick spurts, whereas girls seem to have a more steady physical progression. On any given team, one boy could be miles ahead of the other boys in terms of athleticism, while another boy could have major difficulty learning to pivot or even to dribble. In any case, I'm not going to bother a kid on the last day of the season if he's doing something unconventional. He can always refresh his skills the next year, right? Sigh.

On the bright side, two parents left me nice messages thanking me for coaching.