Law, disrupted

William T. Reid IV, Senior Founding Partner at Reid Collins & Tsai LLP and author of Fighting Bullies, advocates for a career in plaintiff's law. He discusses how law schools funnel students into BigLaw too early, limiting their options and passion. Bill argues that plaintiffs' work brings personal satisfaction and fulfillment by holding wrongdoers accountable. He emphasizes the importance of choosing a career that aligns with values and warns against succumbing to early OCI pressures. Additionally, they explore how AI might reshape law firm dynamics.

John is joined by Bethany W. Kristovich, Partner and Co-Chair of the Professional Liability Defense Group at Munger, Tolles & Olson, LLP.  They discuss some of the unique aspects of legal malpractice cases, including how often they arise from collection cases, how a plaintiff must prove not only malpractice but that without the malpractice, the case would have had a different result, the importance of expert testimony in malpractice cases, and the difficulty of mastering damages theories from both the underlying case and the malpractice action.  Bethany explains some of the worst things that can happen in a malpractice case, including the lawyer criticizing the former client so much it provokes a backlash by the jury, internal emails in which lawyers on the same team criticize each other’s work, and lawyers who appear arrogant because they don’t know their own rates.  Finally, Bethany explains several ways lawyers can protect themselves from malpractice claims, including making sure the client is worthy of the firm before taking their case, getting a retainer and staying current on billing and collections, creating short agendas for telephone conversations to document the topics being discussed, and including the client in all decisions about the case.Podcast Link: Law-disrupted.fmHost: John B. Quinn Producer: Alexis HydeMusic and Editing by: Alexander Rossi

John is joined by Hidetaka Mihara, Senior Counsel at Tokyo International Law Office.  They discuss three major legal developments in Japan: (1) the criminal and civil litigation arising from the 2011 Fukushima nuclear disaster, (2) the rise of shareholder activism, and (3) Nippon Steel’s acquisition of U.S. Steel.On March 11, 2011, a massive earthquake and ensuing tsunami triggered the Fukushima nuclear disaster.  Executives at the company that ran the nuclear power plant had been warned of tsunami risks years before the event, but did not report the risk to the government until days before the earthquake.  The trial court found the executives not guilty of criminal negligence reasoning that tsunamis of this size were so rare and the cost of addressing the risk, cutting off electricity to the region while repairs were made, was so high that the company’s delayed report did not amount to negligence.  Related civil claims against the government and management were also dismissed, with courts holding that neither breached their obligations under Japanese law.  Despite some public criticism, most Japanese have moved on from the tragedy, focusing on rebuilding rather than retribution.The recent rise of shareholder activism in Japan is a notable shift in a culture traditionally averse to corporate confrontation.  This rise follows reforms in Tokyo Stock Exchange rules, greater emphasis on corporate governance, and changes in ownership thresholds that empower minority shareholders to propose changes.  One example is the Seven & i Holdings case, in which activists pushed for a corporate restructuring.  While their proposal failed, their recommendations for improving the company were eventually adopted by management.  Although shareholder litigation remains rare in Japan, shareholder proposals and negotiations have become increasingly effective, aided by the gradual unwinding of entrenched cross-shareholding relationships.Finally, Nippon Steel’s acquisition of U.S. Steel which has been politically controversial in the U.S., is widely seen in Japan as a strategic and mutually beneficial partnership.  Japan views the acquisition as a way to strengthen both nations’ competitiveness against Chinese and Indian steelmakers.  Ultimately, the U.S. government approved the acquisition based, in part, on obtaining “golden share” rights, including the right to block certain potential managerial changes at the company.  The conversation reflects how Japan’s legal and corporate culture is gradually adapting to global norms while maintaining its distinct approach to risk, accountability, and trust.Podcast Link: Law-disrupted.fmHost: John B. Quinn Producer: Alexis HydeMusic and Editing by: Alexander Rossi

Avichal Garg, a venture capitalist and Chairman of the Crypto Council for Innovation, teams up with Emily Kapur, a partner specializing in blockchain litigation at Quinn Emanuel. They delve into the evolving legal landscape of cryptocurrency, focusing on challenges like jurisdiction and liability. The discussion highlights the unique role of stablecoins in bolstering U.S. economic influence, alongside the complexities of decentralized autonomous organizations. Their insights illuminate the urgent need for legal systems to keep pace with rapid technological advancements.

John is joined by Andrew Berdon, partner in Quinn Emanuel’s New York Office, and Joe Paunovich, partner in Quinn Emanuel’s Salt Lake City office.  They discuss the $300 million victory Andrew and Joe’s team recently won in Delaware Chancery Court in an earnout dispute arising from a pharmaceutical merger.  The dispute involved the acquisition of Syntimmune, a biotech company founded around a promising antibody drug—Alexion 1830—designed to treat rare autoimmune diseases by reducing levels of IgG.  The drug was initially developed from academic research at Harvard and advanced by a venture-backed startup that invested over $75 million before selling the company to Alexion, now a division of AstraZeneca.The acquisition included an upfront payment of $400 million, plus up to $800 million in earnout payments tied to eight developmental milestones, most of which were based on progress during pre-approval clinical trials.  The dispute arose when Alexion, shortly after the acquisition, deprioritized and ultimately terminated the drug’s development, citing safety concerns and a perceived loss of first-mover advantage.  No earnout payments were made.The court found that Alexion breached its obligation to use "commercially reasonable efforts"—defined in the agreement as those a similarly situated biotech company would use—to develop the drug.  Evidence at trial showed Alexion made no attempt to benchmark its efforts against peer companies developing similar drugs.  Instead, internal shifts in corporate priorities and the subsequent acquisition by AstraZeneca led to the program’s quiet abandonment, despite a highly promising therapeutic profile and a still viable market opportunity.The episode concludes with reflections on the broader pharmaceutical industry, the strategic use (and misuse) of earnout structures, and the importance of precisely drafted effort clauses to protect sellers when control shifts post-acquisition.Podcast Link: Law-disrupted.fmHost: John B. Quinn Producer: Alexis HydeMusic and Editing by: Alexander Rossi

Mark Wu, a Harvard Law School professor and international trade expert, joins to explore the legal intricacies of U.S. tariff policies under President Trump. They delve into Trump's belief that foreign powers exploit the post-1970s trade regime, while discussing statutory tools like Section 232 and the IEEPA that support these tariffs. Wu analyzes the ongoing legal battles from importers and states, the implications for global trade relationships, and the economic uncertainty surrounding U.S.-China relations. It's a fascinating look at trade law's impact on the economy and geopolitics.

Join John Quinn as he chats with Mohammed Rashik, Founder and CEO of Rain Intelligence and former attorney. Discover how Mohammed’s frustrations as a new lawyer inspired the creation of a data-driven tool that helps identify emerging legal needs. He shares fascinating insights about how real-world events can predict legal issues and explains Rain's innovative approach to delivering personalized daily reports to lawyers. Mohammed also discusses the importance of marrying diverse data sources to uncover hidden legal opportunities.

John is joined by Renny Hwang, Deputy General Counsel and Head of Litigation at OpenAI and former Head of Litigation at Google. They discuss the legal issues surrounding AI technology. Renny explains that he believes that existing law is well equipped to deal with copyright, fair use and product liability issues raised by AI, but the challenge the industry faces is that most people do not understand how AI works. He also explains that he believes other legal issues, such as corporate transparency and governance, might require new regulations. John and Renny discuss the likely impact of patent and trade secret law on the AI industry in light of the industry’s tendency to publish significant research and findings. They also discuss the effect of the absence of comprehensive federal AI regulation, including the difficulty companies have in to implementing different compliance regimes for different jurisdictions and the possibility that the European AI Act will become the de facto default standard for AI regulation globally. Finally, Renny explains that OpenAI is a mission-driven company focused on building safe and beneficial AI and that commitment is reflected in OpenAI’s Board-level Safety Committee.Podcast Link: Law-disrupted.fmHost: John B. Quinn Producer: Alexis HydeMusic and Editing by: Alexander Rossi

John is joined by Brad Karp, Chairman of Paul, Weiss, Rifkind, Wharton & Garrison LLP.  Brad explains how he led Paul Weiss to diversify its business beginning in the financial crisis of 2008, when its core business of litigation was still highly profitable, to become a global leader in private equity transactions, mergers and acquisitions and financial restructuring as well.  He describes how he approached leading lawyers in these fields and convinced them to join the firm by emphasizing the firm’s profitability, reputation, culture, and client base and how each individual would fit into the firm’s existing business.  Brad also explains the firm’s dramatic expansion in London in the summer of 2023 and why he does not foresee further significant international expansion in the future.  John and Brad then discuss the recent trends in large law firms towards recruiting highly paid superstar lawyers and the growth of salaried or nonequity partners.  They also discuss the major trends they expect to see in the future, including the increasing use of AI within the legal industry, the dramatic rise of litigation and regulatory investigations over the use of AI and the influence of climate change on every area of law practice.  Finally, Brad describes his firm’s longtime commitment to actively taking on social justice and pro bono representations and the challenges of handling these engagements in today’s increasingly politicized environment.Podcast Link: Law-disrupted.fmHost: John B. Quinn Producer: Alexis HydeMusic and Editing by: Alexander Rossi

John is joined by Andrew Frank, Founder and President of KARV.  They discuss the evolving role of strategic communications in legal and other public relations “crisis” situations. KARV focuses on strategic advisory services, particularly in high-stakes litigation, crisis response, and public policy matters.  Roughly half of the firm's work involves law-related matters, including disputes, investigations, and regulatory issues.  KARV operates internationally, with offices in major U.S. cities and partnerships around the globe.Early engagement is crucial in crisis communication planning.  Ideally, engagement begins before a crisis breaks.  However, most companies fail to prepare for crises in advance, and communications professionals are typically brought in after legal action has begun.  Once engaged, the primary goal of KARV is to support the legal team while minimizing risk.  This support includes preparing official statements, crafting consistent messaging, and developing media strategies aligned with legal objectives.  The legal and communications teams must collaborate closely to avoid missteps and ensure a unified public-facing narrative.Clients need to understand the mechanics of media engagement, including the distinctions between on-the-record, off-the-record, and background communications.  In crisis situations, clients must also understand the expectations of different media outlets, along with the challenges of working with internal PR teams that may lack experience in crisis or litigation matters.  Common mistakes include saying too much, failing to coordinate messaging, and ignoring broader reputational concerns.Finally, Andrew explains how artificial intelligence is affecting the communications landscape.  On the one hand, AI offers useful tools for drafting and analysis.  However, AI also raises new challenges by accelerating the spread of misinformation.  For example, a news broadcast may be assembled by an AI aggregator and delivered to the audience through an AI generated avatar without any of the content being confirmed as true.  Social media posts now appear and receive more than a thousand comments in 15 minutes;  that many comments must be generated by AI and both the comments and the original post may be fake.  The need to correct such misinformation means that human judgment and experience in managing complex communications environments will remain central, especially in high-stakes legal disputes.Podcast Link: Law-disrupted.fmHost: John B. Quinn Producer: Alexis HydeMusic and Editing by: Alexander Rossi