Author: Bailey Glasser

Four Legal Services Agencies Designated Cy Pres Award Recipients in Mortgage Class Action Settlement

Bailey & Glasser, LLP is pleased to announce that four legal service organizations across Pennsylvania have been designated recipients of $21,228.93 each in cy pres awards from the mortgage class action settlement in Dutcher v. Shellpoint. The organizations, the Community Legal Services of Philadelphia, MidPenn Legal Services, Legal Aid of Southeastern Pennsylvania, and the North Penn Legal Services, all assist indigent Pennsylvanians facing housing insecurity.

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Bailey & Glasser, LLP is pleased to announce that four legal service organizations across Pennsylvania have been designated recipients of $21,228.93 each in cy pres awards from the mortgage class action settlement in Dutcher v. Shellpoint. The organizations, the Community Legal Services of Philadelphia, MidPenn Legal Services, Legal Aid of Southeastern Pennsylvania, and the North Penn Legal Services, all assist indigent Pennsylvanians facing housing insecurity.

Cy pres awards allow for the distribution of leftover funds from a lawsuit settlement to be disbursed to charitable organizations whose missions generally align with the purpose of the lawsuit. Attorney Larry Lederer is “delighted that the court approved the distribution of unclaimed money from the settlement to these legal aid organizations, each of which has helped thousands of families with critical legal issues such as avoiding evictions and foreclosures or gaining access to SNAP and disability benefits. These services are vital to the public and an important aspect of the legal community.”

Debby Freedman, Executive Director of the CLS, expressed their gratitude for the award. “Because of your commitment to justice, CLS can continue to help struggling Philadelphians when they face urgent crises that threaten their homes, jobs, and families. Your strong support has fueled this work and allowed us to respond to new challenges for our clients and communities.”

Bailey & Glasser, LLP Adds Lawyer Mark A. Rota to its Corporate Practice Group in Washington, D.C.

July 10, 2023: Bailey & Glasser, LLP has added lawyer Mark A. Rota to its national Corporate Practice Group in the firm’s Washington, D.C. office, the firm announced today.

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July 10, 2023: Bailey & Glasser, LLP has added lawyer Mark A. Rota to its national Corporate Practice Group in the firm’s Washington, D.C. office, the firm announced today.

“We warmly welcome Mark Rota to Bailey Glasser,” said Jonathan Deem, the Corporate Practice Group Leader. “His experience and energy are welcomed to the team, and the combination of his corporate and government experience will be a wonderful asset to our clients.”

As part of Bailey Glasser’s Corporate Practice Group, Mark will assist clients on matters representing the full spectrum of business interests and industries, from solo entrepreneurs to multi-national corporations, from energy companies to government agencies and entertainment companies. Mark joins a dynamic corporate department that regularly represents corporations across the country in multi-million-dollar transactions, mergers and acquisitions, commercial contracting, business reorganization, and equity and debt financing.

Mark’s experience spans multiple industries including international dispute resolution, government administration, and political consulting. Prior to joining Bailey Glasser, Mark worked as in-house counsel for a large international biopharmaceutical company. He also has experience in international financial transactions, regulations in the equities and sovereign wealth markets, cross-border business negotiations, and corporate legal advising. Mark possesses a strong understanding of the political system, having worked in both local and federal government, and in government relations.

Mark is admitted to the bars of New Jersey, Pennsylvania, and Washington, D.C. He holds a dual J.D./Master of Arts in International Relations and Affairs from the American University, Washington College of Law, with a focus on international finance, business negotiations, and alternate dispute resolution. Mark also possesses a bachelor’s degree in sociology with a minor in finance from the University of Colorado.

For more about Mark, please visit here.

Bailey Glasser’s Precedential Appellate Victory Against “Sandbagging, Disbarred Attorney” Profiled in Law360

Law360 profiles a win by Bailey & Glasser, LLP before the United States Court of Appeals for the Fourth Circuit. The article, “‘Sandbagging’ Sinks Disbarred Atty’s Appeal Of Sanctions” details the case and appeal, which affirmed an $828,000 default judgment as sanctions against a disbarred attorney-turned-telemarketing defendant and his cohorts who concealed key discovery and disobeyed court orders.

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Law360 profiles a win by Bailey & Glasser, LLP before the United States Court of Appeals for the Fourth Circuit. The article, “‘Sandbagging’ Sinks Disbarred Atty’s Appeal Of Sanctions” details the case and appeal, which affirmed an $828,000 default judgment as sanctions against a disbarred attorney-turned-telemarketing defendant and his cohorts who concealed key discovery and disobeyed court orders.

Bailey Glasser partner Sharon Iskra originally filed the lawsuit on behalf of Diana Mey in 2019 in the Northern District of West Virginia after Ms. Mey received a flood of unwanted telemarketing phone calls concerning debt relief. The suit alleged violations of the Telephone Consumer Protection Act (TCPA) and West Virginia Consumer Credit and Protection Act (WVCCPA) for illegally contacting Ms. Mey despite her registration on the national “Do Not Call” phone list and her repeated requests that the calls stop.

During the three years of ensuing litigation, Iskra uncovered that the defendants not only evaded discovery concerning their joint enterprise but had actively concealed over 15 shared companies, some of which had been formed while discovery was in progress. The district court agreed that the defendants had engaged in a “pattern of concealing discoverable material” and repeatedly balked at orders, resulting in the court sanctioning them with the default judgment in April 2022.

Bailey Glasser attorney Benjamin Hogan skillfully defended the award before the Fourth Circuit. In a unanimous, published opinion, the three-judge panel affirmed default judgment as an appropriate sanction for Defendants’ “relentless sandbagging and failure to disclose discoverable materials.”

Read the full Law360 article here, and to learn more about this case and read the opinion visit our website.

Fourth Circuit Affirms Bailey Glasser’s $828K Default Judgment Win, Sanctioning Defendants Who “Sandbagged” Discovery

The U.S. Fourth Circuit Court of Appeals has affirmed Bailey & Glasser, LLP’s $828,000 default judgment win as sanctions against a group of telemarketing defendants who concealed their joint enterprise from discovery and disobeyed orders of a lower court compelling full disclosures. The BG team led by partner Sharon Iskra requested the sanction against the companies for persistently “sandbagging” discovery necessary to their client’s case.

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The U.S. Fourth Circuit Court of Appeals has affirmed Bailey & Glasser, LLP’s $828,000 default judgment win as sanctions against a group of telemarketing defendants who concealed their joint enterprise from discovery and disobeyed orders of a lower court compelling full disclosures. The BG team led by partner Sharon Iskra requested the sanction against the companies for persistently “sandbagging” discovery necessary to their client’s case.

Over several years of litigation, Bailey Glasser’s team uncovered that Defendants evaded discovery and actively concealed over 15 shared companies. The district court judge found that Defendants acted in bad faith, warranting one of the most severe sanctions to deter future misconduct: granting Bailey Glasser’s request for default judgment for the full amount of statutory penalties available under telemarketing laws pled in her Complaint.

On appeal, the Fourth Circuit affirmed this decision in its entirety. In the scathing 39-page precedential opinion, the court noted the “[a]ppellants’ relentless sandbagging and failure to disclose discoverable materials, including the existence of business entities founded during the course of this case, demonstrate a continued pattern of discovery abuse.” Bailey Glasser lawyer Ben Hogan wrote the winning appellate brief and skillfully argued before the Fourth Circuit.

“Severe discovery abuses warrant severe sanctions. We are glad to see the Federal Rules of Civil Procedure still have teeth and that the district judges’ decisions to enforce them are upheld,” said Sharon Iskra. “We are especially pleased to have a published opinion that resonates to curtail future discovery abuses that cause delays and prejudice to litigants everywhere.”

Learn more and read the opinion here.

Client Alert: Friend or Foe? Legal Risks Arising From ChatGPT and Other Generative AI Software

Recent breakthroughs in generative artificial intelligence (AI) have captured significant media attention. Developers argue that the technology, which learns from data to produce new text, visual, or audio content based on a user’s prompt, will turbocharge productivity and revolutionize business. Organizations in sectors ranging from banking to health care to journalism are already exploring integrating tools like OpenAI’s ChatGPT chatbot and DALL-E image generator into their workplaces.

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Introduction

Recent breakthroughs in generative artificial intelligence (AI) have captured significant media attention. Developers argue that the technology, which learns from data to produce new text, visual, or audio content based on a user’s prompt, will turbocharge productivity and revolutionize business. Organizations in sectors ranging from banking to health care to journalism are already exploring integrating tools like OpenAI’s ChatGPT chatbot and DALL-E image generator into their workplaces.

These new tools should be approached with a great deal of caution as introducing generative AI into your business could create a complex minefield of legal risks. The technology raises significant dangers related to breaches of confidentiality and data privacy, intellectual property infringement, obligations to consumers, and liabilities for negligence, defamation, or discrimination related to the use of false or biased information.

Earlier in June, a Manhattan lawyer faced sanctions in federal court for filing a legal brief generated by ChatGPT which included several citations to nonexistent cases. After being scolded by the judge for relying on “legal gibberish” generated by AI, the attorney admitted that he had no idea that ChatGPT could fabricate cases. At a recent United States Senate hearing on the dangers of AI and potential regulatory safeguards, OpenAI’s CEO, Sam Altman, practically begged lawmakers to create a new AI regulatory agency that would license, test, and screen AI models. This is an unprecedented act by a tech leader. Around the world, authorities are eager to tighten regulations related to AI and changes may be on the horizon.

In this article, legal dangers related to the use of generative AI will be discussed in five specific areas: confidentiality and data privacy, intellectual property, obligations to consumers, false information, and bias and discrimination.

Generative AI and Gibberish

Artificial intelligence generally refers to technology that utilizes data to perform tasks typically done by humans, such as analysis, pattern-recognition, and prediction. One particular subset of AI technology—generative AI—is responsible for the current cultural and corporate metamorphosis. Of the fleet of emerging generative AI products, ChatGPT has grabbed the greatest share of headlines. AI developer OpenAI released the online chatbot in November 2022, with bankrolling from Microsoft. The company launched an update, GPT-4, in March 2023.

ChatGPT has impressed—and even stunned—with its ability to create unique content that sounds convincingly human. OpenAI’s system and rival tools from Google and Bing are what AI developers call “large language models” (LLMs). Using a huge library of text data that includes books, articles, research papers, blogs, and social media posts, LLMs are “trained” to decode, analyze, and produce language.These AI applications can process and respond to a user’s prompts in an instant. They’re capable of handling requests that are far more sophisticated than simple web searches.

For instance, ChatGPT will eagerly respond to an essay question on the Roman Empire, craft a Shakespearean sonnet about any subject, suggest improvements to computer code, or devise a reply to your mother-in-law’s email. Other popular generative AI models can design graphic art, replicate voices, produce songs, or even put together a rudimentary sitcom episode. Many of these new tools are widely available online and at no charge, or with a relatively modest subscription fee.

An Overview of Select Legal Risks

The power of generative AI technology is already transforming the workforce, and in ways we never could have imagined just a year ago. LLMs like ChatGPT are now instantly finishing certain research, analysis, writing, or administrative tasks that would take hours for a human employee to complete. However, the risks associated with implementing generative AI tools are extensive and demand careful consideration. We are continuing to monitor developing elements of these risks as they unfold.

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