The Notice: News and Resources for Paralegals, Litigation Support & Docketing Professionals
With ILTACON 2024 just around the corner, we're excited to announce ECFX's latest product add-on: ECFX Notice + AI-Enhanced Title Extraction.? Many state court documents are poorly named, forcing attorneys and paralegals to manually review and rename each attachment to know what it is.?
With AI-Enhanced Title Extraction, ECFX Notice is able to read the document and accurately extract the title of each court notice, which it uses to name each document to your firm’s desired convention.? Visit us at Booth #226 at ILTACON 2024 in Nashville from August 11-15 to learn more, and see how ECFX Notice revolutionizes the entire ECF notice processing workflow.
In recent legal news: The recent global IT outage caused by a CrowdStrike security update underscored the critical importance of cybersecurity measures and resilience for law firms; A federal judge in California has allowed a proposed class action against Workday to proceed, claiming that its AI-powered hiring software perpetuates existing biases, potentially setting a significant legal precedent for the use of AI in employment screening; ECFX proudly announces its SOC 2 Type I compliance, highlighting their commitment to the highest standards of data security and privacy; and more!
We hope you enjoy this issue of The Notice!? ?
~The Team at ECFX
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WORKING IN LARGE LAW
CrowdStrike Chaos Emphasizes Need For Law Firm Cybersecurity Preparedness
The recent global IT outage caused by a security update from CrowdStrike has once again indicated the importance of cybersecurity measures for law firms that appeared to have been largely unaffected by the major outage.??
The outage, related to Microsoft software, disrupted operations at numerous law firms, affecting their ability to access internal documents and email systems and provides some indication of what an equally major cybersecurity attack would do, probably with even greater impact in terms of organizations’ technical infrastructure resilience.???
Several law firms encountered issues with the CrowdStrike outage with Ashurst experiencing website inaccessibility while Kirkland & Ellis has problems with their internal email system and other firms experienced similar difficulties.??
Reed Smith responded swiftly, mobilizing its US operations to mitigate the impact, and managed to restore normal operations before the start of the East Coast business day Despite these disruptions, many law firms emphasized the importance of preparedness and resilience. Reed Smith’s Chief Information Officer, Ryan McEnroe, highlighted their established protocols to handle such incidents, which facilitated a quicker recovery.??
The outage is expected to lead to numerous business interruption (BI) claims. Analysts believe that BI claims will drive the bulk of insurance industry losses from this event.? This incident is seen as a potential litmus test for cyber underwriters, particularly for companies like Beazley, a specialist insurer headquartered in the UK.? Law firms, like other businesses, have been advised to review their cyber insurance policies to determine if their losses qualify for coverage, which requires prompt notice to obtain coverage under the policies.??
The outage underscored the need for robust cybersecurity measures and operational resilience.? But what are the best steps that should be taken to enhance security and resilience??
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Big Law Bulks Up in Race to Harness the Power of the Sun
Global investment in solar photovoltaic energy production will pass $500 billion this year, predicts the International Energy Agency, an intergovernmental research agency. That’s nearly $100 billion more than the investments in generating electricity from coal, oil, natural gas, wind, and nuclear energy combined, the agency says.?
Demand for solar and other renewable projects has spiked so dramatically since the 2022 passage of the Inflation Reduction Act, which piled subsidies into the market, that many law firms feel they can’t keep up with all the work.?
“We just don’t have enough lawyers to do it all,” said Eli Katz, global vice chair of the energy and infrastructure industry group at Latham & Watkins. More than 650 lawyers at the firm globally, including around 400 in the US, work on the energy transition and routinely bill above 100% of productivity targets. The group’s headcount has grown at least fivefold in roughly the past decade, Katz said.???
Firms that haven’t developed strong energy transition practices are poaching lawyers from other firms “pretty ruthlessly,” said Anna Kimbrell, who leads Husch Blackwell’s Energy & Natural Resources team.?
“It is very niche, very boutique, and it commands very high rates,” Kimbrell said. “So every law firm wants a renewable energy group even if they don’t have one.”?
At least 90 of the country’s 200 largest law firms have hired a lawyer with a “renewable energy” specialty over the past three years, according to Leopard Solutions, which tracks law firm moves and combs law firm bios.?
The busiest firms on the hiring front, according to Leopard, have been Norton Rose Fulbright, Orrick Herrington & Sutcliffe, Husch Blackwell, and Holland & Knight. They are the four firms that have hired more than 10 lawyers in the past three years, per Leopard.?
Today, at least 140 of the 200 largest firms boast at least one lawyer with a “renewable energy” specialty, Leopard says.
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NEWS FOR 2024
Workday Must Face Novel Bias Lawsuit Over AI Screening Software??
A federal judge in California has rejected Workday's bid to dismiss a proposed class action claiming that the artificial intelligence-powered software the company uses to screen out job applicants for other businesses bakes in existing biases.??
In the first ruling of its kind, U.S. District Judge Rita Lin on Friday said that Workday could be considered an employer covered by federal laws banning workplace discrimination because it performs screening functions that its customers would normally carry out themselves.??
Lin refused to dismiss several claims in a 2023 lawsuit by Derek Mobley, who says he was passed over for more than 100 jobs at companies that contract with Workday because he is Black, older than 40 and has anxiety and depression.??
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The case is the first proposed class action to challenge the use of AI screening software, and could set important precedent on the legal implications of using AI to automate hiring and other employment functions, which most large companies are now doing.??
Lin dismissed claims that Workday intentionally discriminated based on race and age. She also ruled that the company cannot be considered an "employment agency" under anti-bias laws because unlike a staffing firm, it does not procure job opportunities for workers.??
A Workday spokesperson in a statement said the company was pleased that Lin tossed out some of the claims.??
"We're confident that the remaining allegations will be easily refuted as we move to the next phase where we’ll have an opportunity to directly challenge their accuracy," the spokesperson said.
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Amazon Defeats US Consumers' Class Action Over Whole Foods Delivery Fees
A federal judge has dismissed a proposed class action accusing e-commerce giant Amazon of misleading customers about the benefits of its subscription service Prime, causing them to pay a hidden $9.95 delivery fee for some Whole Foods purchases.??
U.S. District Judge Tana Lin in Seattle federal court ruled on Thursday that the consumer lawsuit for now failed to adequately make a claim of deceptive practices under a Washington state consumer protection law.??
The plaintiff had not shown which Amazon ads she relied on to believe there was “free delivery” from Amazon-owned Whole Foods, the judge said. Lin also said the service fee for deliveries was shown on two webpages during the checkout process.??
Amazon and attorneys for the plaintiff did not immediately respond to requests for comment on Friday.??
Lin said the plaintiff could file an amended lawsuit focused on the claim that some consumers might think free delivery from Whole Foods was guaranteed for the entirety of Prime membership.??
In a filing, Amazon told the court that the benefits of Prime membership are subject to change, and that Amazon has “sole discretion” to add or remove perks such as free delivery.
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TECHNOLOGY & LEGAL SUPPORT
ECFX Enhances Security with SOC 2 Compliance & Certification
ECFX , the leader in electronic court notice management for law firms, proudly announces its successful achievement of SOC 2 Type I compliance. This milestone underscores ECFX’s dedication to maintaining the highest standards of data security and privacy for its clients.??
ECFX Notice is a cutting-edge SaaS solution designed to streamline the downloading of court notice documents, ensure direct distribution to case teams, and securely store documents within the correct matter or client workspace in any DMS or file system. This automation significantly reduces the time spent on manual ECF notice processing and minimizes errors caused by delays or misfiled documents.??
SOC 2 (System and Organization Controls) compliance is an internationally recognized standard established by the American Institute of CPAs (AICPA). It provides a framework for managing and protecting customer data based on five "Trust Service Principles": security, availability, processing integrity, confidentiality, and privacy. Achieving SOC 2 Type I compliance demonstrates that ECFX has implemented rigorous controls and procedures to safeguard client information.??
"Achieving SOC 2 Type I compliance is a substantial milestone for ECFX, and underscores our unwavering commitment to the highest standards of data security and privacy," says Dan O’Day, Co-Founder and CEO of ECFX. "This certification assures our clients that their sensitive information is protected by rigorous security measures and industry best practices. By meeting these stringent requirements, we not only enhance the trust and confidence our clients place in us, but also ensure that we remain a reliable and secure partner for their ECF notice management needs."??
ECFX’s SOC 2 Type I compliance is a testament to the company's proactive approach to security; involving regular audits and assessments to identify and mitigate potential risks. The company continuously works to enhance its security protocols and practices; including rigorous Information Security reviews conducted by esteemed entities such as AmLaw 100 law firms and other clients, ensuring thorough vetting of security measures before product licensing.??
ECFX is the leading provider of electronic court filing notice management solutions for law firms. The company's state-of-the-art SaaS solution, ECFX Notice, automates the downloading, distribution, and storage of court documents in ECF notices for both State and Federal courts – saving time, enhancing efficiency, reducing risk, and providing valuable insights into firm ECF metrics. ECFX is dedicated to innovation and excellence, ensuring the highest standards of security and service for its clients.
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Ransomware Attack Closes All 36 Los Angeles Courthouses
Los Angeles County Superior Court closed all 36 of its courthouses Monday as it grappled with a ransomware attack first detected Friday, the court’s communications office announced Sunday night.?
The malware intrusion has shut down the court’s public-facing website, its internal case management system, an electronic filing system, its call center and the portal used by potential jurors.?
“While the court continues to move swiftly towards a restoration and recovery phase, many critical systems remain offline as of Sunday evening,” Presiding Judge Samantha Jessner said in a prepared statement. “One additional day will enable the court’s team of experts to focus exclusively on bringing our systems back online so that the court can resume operations as expeditiously, smoothly and safely as possible.”?
Jessner issued a three-page order Sunday closing the largest trial court system in the nation for one day after Chief Justice Patricia Guerrero granted the request to do so. The order declares Monday a court holiday, extending statutory deadlines in various types of cases by one day.??
Court leaders said they are working with the governor’s Office of Emergency Services and law enforcement agencies to investigate the breach. A statement issued by the court’s communications office said the closure is not expected to last more than a day.?
Los Angeles court officials first announced “system-wide connectivity issues” Friday morning that led to the cancellation of proceedings with scheduled remote appearances. The court’s problems seemed to jibe with computer problems worldwide caused by a software update glitch in CrowdStrike Falcon, a cybersecurity platform that runs on the Windows operating system. Courts around California reported similar troubles.?
It wasn’t until Friday evening that Los Angeles court leaders revealed that their IT network had been targeted by a ransomware attack that they believed was unrelated to the CrowdStrike disruptions.?
Court officials have been tight-lipped about how the attack was discovered and what, if anything, those behind the malware intrusion might have sought. Court leaders have said in statements that they don’t believe any court users’ data was compromised.