Illegal Immigration and Education

The National Law Review is pleased to announce the winner of the Fall 2012 Law Student Legal Writing ContestLloydann A. Wade from the Barry University Dwayne O. Andreas School of Law whose article, Illegal Immigration and Education, was featured in The National Law Review:

Dwayne O. Andreas School of Law

Introduction

This paper will examine the topic of immigration and the reciprocal effects that it has on the social and educational system here in the United States. It will also examine the changing climate of illegal immigration while examining the stories of immigrants, who after being brought here at a young age were able to overcome nearly insurmountable obstacles to obtaining graduate degrees, all while attempting to legalize themselves. Finally this paper will look at a potential solution to the problem of the illegal children who have for all intents and purposes become Americans, but lack residency status.

Primary Education and Illegal Children

With election season being but a few weeks away, many topics have come to the forefront of American politics, one of the foremost of these being immigration and the other, which goes hand in hand with immigration, being education. The two, inextricably linked subjects have come to the forefront of peoples’ minds, with the steadily increasing number of college enrollments and the rising cost of education, these topics have become some of the pillars of the governmental candidates’ platforms. If the path illegal immigrants take in education is examined it is evident that the immigration system does a great injustice to illegal immigrants by not enforcing stricter guidelines with regards to correcting their resident status by the time they reach the age of majority. Though some may argue that their educational benefits should not be equal to that of legal citizens, if the sheer number of immigrant children who graduate high school and go on to seek either vocational or traditional tertiary educations are examined, it can be shown that there are a great number of both economic and social benefits to encouraging illegal immigrants to attempt to gain legal statuses’ as they reach educational milestones.

A large number of illegal immigrants enter the United States each year. According to the Department of Homeland Security the number of immigrants has remained steady, hovering around 1 million per year for the last 5 years, down from a high of approximately 1.8 million in 1991, and up from a low of approximately 645k in 1999.[i] Attorney Gerry Katzerman states “[w]e hear from them a very similar experience, where they attempt to enroll and are asked about their immigration status, are asked for documents they don’t have, and they basically disappear back into the population without having the opportunity to participate in public education…”[ii] By making the path to legalization, and thus education, more burdensome the government is thereby forcing illegal immigrants to burden the government in other ways. According to the Center for Immigration Studies “In 2009 (based on data collected in 2010), 57 percent of households headed by an immigrant (legal and illegal) with children (under 18) used at least one welfare program, compared to 39 percent for native households with children.”[iii] By blocking illegal immigrants’ paths to education for their children, two generations instead of just one then become dependent on society by increasing the poverty rate and thus placing themselves in the underclass. While immigrants’ use of welfare tends to be higher than those of their native counterparts[iv] “[a] large share of the welfare used by immigrant households with children is received on behalf of their U.S.-born children, who are American citizens. But even households with children comprised entirely of immigrants (no U.S.-born children) still had a welfare use rate of 56 percent in 2009.”[v] 
A lack of residency and education on the part of immigrants’ forces them into the same public assistance programs that opponent’s fear they will abuse. Thus the very effect that opponents of any kind of immigration reform attempt to avoid becomes the very result that is accomplished.

The number of gang members rose from 750k to 1 million in 2009, with 40% of them being under the age of 18, 47% of them being Hispanic, 31% of them being black with the number of gang related arrests nearly doubling between 2001 to 2009.[vi]When a child enters the United States legally or illegally they are legally entitled to an education,[vii] as the courts have stated “denying public education [to children] could impose a lifetime of hardship ‘on a discrete class of children not accountable for their disabling status.’”[viii] This education, which by most standards is the equivalent to that of the children’s home country begins with the issuance of an Individual Taxpayer Identification Number (ITIN) when they register for school.[ix]Though children are given the equivalent to a social security number and made to appear as though they are legal, they are for all intents and purposes not considered part of society and there is nothing secure in knowing that their immigration status is so tenuous.

According to the Juvenile Justice Bulletin published by the United States Department of Justice, Office of Juvenile Justice and Delinquency Prevention “Street gangs are an amalgam of racism, of urban underclass poverty, of minority and youth culture, of fatalism in the face of rampant deprivation, of political insensitivity, and the gross ignorance of inner-city (and inner-town) America on the part of most of us who don’t have to survive there.”[x] By ignoring the problem of legalizing children of illegal immigrants, not only are governments contributing to the increasing poverty in urban and sub-urban areas, but they are also causing a chain reaction of increased gang-memberships and increasing the poverty rates of immigrants. The sense of hopelessness and lack of opportunity among immigrants becomes localized in larger cities and sustains itself through a perpetual cycle of poverty, crime and violence.

Though this situation may seem dire and doomed to repetition, there are exceptions; take for instance the story of Adriana Sanchez, who was brought from Mexico to the U.S. at the age of 12 by her parents, who were farm workers, who had overstayed their visas. Sanchez just graduated in May with a Masters Degree in International Relations from California State University.[xi] Sanchez’s story is not unique as there are hundreds of thousands, if not more illegal immigrants who somehow find a way to pay for college (because they are not eligible for loans) despite their status. “There’s a pool of talented young people who in their hearts believe they’re American, because they’re raised and educated here, speak fluent English and have a level of education that equals or surpasses that of average Americans,” Roberto Gonzales, professor of sociology.[xii] This untapped talent pool should not have to cower in the shadows, for fear of being deported, they may well be able to fill the gaps in employment for social workers, scientists, medical professionals and in the Information Technology field. Creating a barrier between educated illegal immigrants and legitimate employment, in essence forces them to either become part of the underclass or dependent on government assistance programs like welfare, WIC and Social Security. For every one illegal immigrant who graduates there are potentially hundreds of others who are able to accomplish the same, but who because of their illegal status, never come forward with their stories.

Immigration Statutes

In an unsuccessful attempt to streamline the immigration process for illegal immigrants, several measures have been proposed to encourage their legalization, including most recently the Development, Relief, and Education for Alien Minors Act (DREAM Act).[xiii] The DREAM Act, though it never passed, was proposed to offer a path to legal residency for the children of illegal immigrants who came to the United States as minors. In order to qualify as “conditional nonimmigrant” under the DREAM Act a child must have graduated high school while being a resident of their state in addition to the requisite 2-year waiting period. In addition they would need to meet the age restrictions, showing that they are of “good moral character” by having not committed any felonies and having a maximum of three misdemeanors and undergoing a medical examination. In order to have had the DREAM Act pass the framers need to tailor the act in a way to appease the conservative voters, who viewed it as encouraging illegal immigration and placing undue financial and social burdens on society. The framers of the Act should have placed a caveat which stated that it would only apply to residents who were already in the country; or that the Act would only be valid for a limited period, to examine its overall effect on the educational and financial system.

One of the most recent versions of the DREAM Act placed a ban on in-state tuition for illegal immigrants and even though the DREAM Act may not have been ratified, many states have laws that deny illegal immigrants the right to receive in-state tuition, no matter how long they have lived in the country. Students have filed suit under the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (IIRIRA)[xiv] to be able to pay in-state tuition rates for their college education claiming that it violates the Equal Protection Clause of the 14th Amendment. The basic premise of IIRIRA was to ensure that illegal immigrants take responsibility for their unlawful migration into the United States by stating that they have to be deported and remain outside of the country before they can attempt to reenter the country legally. The act states “an alien who is not lawfully present in the United States shall not be eligible on the basis of residence within a State (or a political subdivision) for any postsecondary education benefit unless a citizen or national of the United States is eligible for such a benefit (in no less an amount, duration, and scope) without regard to whether the citizen or national is such a resident.”[xv] The act has the discriminatory effect of denying, what would, if but for their legal status, be citizens of their respective states the right to an education, or making it so cost prohibitive that they would not be able to attend. Again, adding to the number of people who would be dependent on government programs and increasing the incidence of violence in high immigration areas.

In an attempt to ensure that illegal immigrants do not benefit from social programs intended for American citizens, the federal government also enacted the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996. This act states:

“An alien who is not a qualified alien is not eligible for any Federal public benefit [including] any retirement, welfare, health, disability, public or assisted housing, postsecondary education, food assistance, unemployment benefit, or any other similar benefit for which payments or assistance are provided to an individual, household, or family eligibility unit by an agency of the United States or by appropriated funds of the United States” (8 U.S.C. §1611).[xvi]

Though the true intentions of the act are unequivocal, it can be stated with absolute certainty that it does not work. There are ways in which illegal immigrants are able to benefit from social programs, for example, since the children of illegal immigrants are eligible to receive an education, they may also qualify for reduced or free lunches from schools. Illegal immigrants also give birth to what are called “anchor babies,”[xvii] which are children born in the United States to parents who are illegal. So in the end, not only do illegal immigrants obtain healthcare for their children, but they also receive free meals and other social services. The United States government, both state and federal, enact laws, but because of our own system of checks and balances, circumvent those laws, through federal court rulings and state statutes. Again, this emphasizes the problem of illegal immigrants not only benefiting from programs designed for Americans, through education, but it also shows that however carefully worded statutes are they do not work. Illegal immigration is something that has become a fact of life and immigration reform is needed to deal with this problem effectively.

If programs such as the DREAM Act are not passed, then the government needs to find other means to make it easier for children who are brought into the United States at a young age to become legal residents. Ignoring the problem of immigration and letting illegal immigrants wallow in poverty affects the quality of life of everyone, not just the working class and the poor. If the parents of children bring them into the United States, to be indoctrinated into a culture that is foreign even to the parents themselves, and remain, in some cases for decades, with the full knowledge of the government, then how can the children be blamed for their inability to obtain legal residency. If the government has taken pains to make sure that all illegal immigrants are entitled to an education, then steps should be taken so that these children can legitimize themselves at the point when they begin this education.

Immigration And Legal Education

Two cases at the forefront of the immigration and education debate are that of 26-year-old Jose Manuel Godinez-Samperio and 35-year-old Sergio Garcia. These two gentlemen are pristine examples of why the educational and immigration systems both need to be reformed, both jointly and severally. Samperio is a law student from Florida who successfully took and passed the Florida bar, but because of his illegal status is unable to practice law, right now the Florida Supreme court has to decide if Sampiero, who is on a two year work visa and protected from deportation, should be allowed to practice. On the other hand Garcia’s case is being spearheaded by the California State Bar, where they argued that his illegal status should not bar him from practicing law, despite the fact that he has taken and passed both the character and fitness and the written bar examination. Mr. Garcia’s case was turned down and the court refused to allow him to practice.

In the case of Jose Manuel Godinez-Samperio, he came to America as an illegal immigrant, he was brought here by his parents as a young child and was able to graduate as valedictorian of his high school class, attend Florida State University Law School and even after disclosing his residency status the Florida Bar Examination Board still granted him a waiver of proof of citizenship so that he could take the bar.[xviii] What would it serve to allow an illegal alien to take the bar exam knowing that he would be unable to practice law in the state, or any other state in the United States for that matter? While it could be argued that Samperio’s case is unique, it appears that more often than not it is the norm. Children of illegal immigrants are able to obtain professional degrees and in essence do become productive members of society, they just lack the title of legitimacy because of their illegal status. Is the American dream, if accomplished by an illegal immigrant still American? Are people like Samperio not the prime examples of who the DREAM Act was created to help, someone who would, through their own efforts accomplish something that some native born Americans are unable to do. In an attempt to circumvent their illegality some immigrants, who have obtained secondary and tertiary degrees hire themselves out as independent contractors, so they do not have to answer with regards to their residency status, while being employed. It is at this point that the government should question the measures they have in place to stem the flow of illegal immigration, if an illegal immigrant is able to obtain a masters degree, juris doctor or a doctoral degree then what would be the point of denying them the ability to use those degrees in what is essentially their own country to make legitimate income.

In an attempt to use their degrees without facing the scrutiny they would normally encounter, many immigrants have sought and successfully obtained H-1B visas, which in essence allows them to work and live in the United States.[xix] Illegal immigrants are already in the country and are doing very well for themselves without government intervention, in terms of education, if the government were to intervene statistics would shift in their favor, the number of people on governmental assistance would decrease, crime would decrease and revenue would increase.

An example of immigration and education from a different perspective is the case of Cesar Vargas, a graduate student from the CUNY School of Law, he took and passed the bar exam, and again was unable to practice because of his residency status, he entered the country when he was five years old.[xx] A five year old who enters the country with his illegal parents, is educated by the Department of Education for over 15 years, makes friends, associates and forms an identity as an American and establishes himself in academia, defying the stereotypes and statistics that state he is doomed to failure and he is rewarded by the benefit of being gainfully employed, knowing for over 15 years that he was in the country illegally. This willful blindness on the part of the government shows that they first turn a blind eye to immigrant children who come into the country and obtain an education, then blame the children for their status and refuse to acknowledge that education. In some cases these children are unable to identify with their parent country because of the time that has elapsed during their absence. Children are left in an educational limbo, they are so socially and culturally indoctrinated into American culture that they are in some cases ignorant to their own ethnic culture that deportation may no longer be an option. Having now risen from the working poor to now working or middle class, through education, they are unable to identify with the people in their American communities. Becoming educated brings with it a sense of disconnect between an illegal immigrant and their home community, not only because of their elevated intellectual status, but also because of unconscious resentment of their illegality.

Finally there is the ironic case of Sergio Garcia, a 35-year-old California resident who successfully completed all of the requirements necessary to become a California attorney, but because of his illegal status he is unable to practice law. Garcia is poised to become a defender of the same constitution that denies him the rights afforded legal residents. Though Garcia applied for residency in the mid-1990’s there is no real time frame when he can expect to receive final approval. Though Garcia has many supporters, including the California State Assembly and California Attorney General, Kamala Harris, his approval to the California Bar would create a wealth of problems for other illegal immigrants who have also successfully fulfilled their state bar requirements, as immigration, being a federal issue, is something separate and distinct from the State. The state bar falls under the jurisdiction of the state, and if someone is in the country illegally then the state has to defer to federal authority with regards to their legality or lack thereof.[xxi]

One would think that if this many students are able to pay their way through graduate school that they should be rewarded with legitimacy, but it appears that this is not the case. Though immigrants should not be rewarded for entering the country illegally, their children should not be punished for the acts of their fathers.

A Forgotten Class

There is still yet another group of immigrants who are to be addressed, those who leave their countries with professional degrees and licenses, and because of their legal status are relegated to working minimum wage and factory jobs. In the case of Sampiero’s parents, they were professionals in Mexico, but decided to stay after their tourist visas ran out and were only able to work as farm and factory laborers. The government should as a matter of self-preservation, look into ways by which illegal immigrants with tertiary degrees and professional licenses could be streamlined into the working force or to obtain the same or similar licenses here in the United States. Again, there is an untapped source of both revenue and labor that the government can readily access, but for the fact of their legitimacy. With adequate safeguards in place, the government could encourage illegal immigrants with tertiary degrees in any field to go to continuing education classes and obtain licenses here in the United States. If the government were to encourage this, they would be able to generate revenue through school tuition and then later when immigrants open their own businesses or enter into the workforce. There is no effective way in place to stem the flow of illegal immigrants into the country; the government should thus attempt to placate both proponents and opponents of immigration reform by structuring the immigration laws in a way that benefits society, the economy and the immigrants themselves. What better way to encourage immigrants to become more independent, rather than dependent on the American governmental system, than to make the government work for them while making them work for the government? In the years from 1990 to 2010, the number of immigrants who were small business owners has doubled from 9% to 18%,[xxii]though the rate of immigration has remained the same this means that more immigrants are taking the initiative to become their own bosses. This number could increase exponentially if immigrants were given the ability to utilize knowledge from their own countries and their own independent spirits to create employment for themselves and members of their communities.

By deporting college educated students and their parents, the United States is exporting a very important resource, some of its educated population. If the United States were to deport just the immigrants who registered for school or who were within its grasp, it would keep the uneducated and dependent immigrants, both legal and illegal, and therefore create a crisis of epic proportions with regards to its social programs. In the case of 20-year-old Nadia Habib, a Stony Brook University student who is being faced with deportation after being brought here by her mother as a child, this is a very real threat. Habib and her mother were recently thrust into the spotlight when she was being faced with deportation after the Immigration and Customs Enforcement (ICE) denied her mother’s request for political asylum bid.[xxiii]In this case, a reorganization of the immigration system in place would have prevented something like this from happening. Had the DREAM Act or some similar form of legislation been in place, Habib would not have been able to become lost in the system for such an extended period of time. If the need for immigration reform wasn’t clear then the case of Kairi Shepherd should make it so. Shepherd was adopted by an American woman and left India when she was 3 months old. After a conviction for check fraud at the age of 17, the government initiated her deportation proceedings. Shepherd’s adoptive mother failed to file an application for residency/citizenship before her death and now Kairi is faced with deportation back to India, but the orphanage where she was adopted from was shut down and now she is in deportation limbo.[xxiv] Though Kari came to America legally, now she is being faced with deportation to a country where she does not speak the language and cannot identify with the culture, because for all intents and purposes she is now considered illegal. Would it be fair to someone like Shepherd, who has literally spent their entire live in the United States to be deported to a country that she cannot identify with its people outside of her physical resemblance to them. Not every immigrant, legal or not, who is deported would be able to survive in the country of their birth, either because of language barriers or poor health conditions or a myriad of other reasons.

A Possible Solution?

A plausible amendment for both sides to consider under the DREAM Act or some similar legislation, would be that United States Citizenship and Immigration Services (USCIS) should provide information to illegal immigrants about legitimizing their children’s status, rather than leaving their children to float in immigration uncertainty and dodging the perpetual bullet of having themselves and their parents deported. The USCIS should propose a compromise between proponents of DREAM Act and its opponents by making sure that every immigrant that signs up for a ITIN number for their children are set on a course so that when their child graduates high school they would be able to apply for or should have already applied for legal resident status. This would eliminate the fear that the children of immigrants would become a burden on society and at the same time ease any fears that illegal parents may have in regards to their children being denied the opportunity to legalize themselves. This path will not be free, as parents of these children should have benchmarks in which they should pay for any paperwork or necessary administrative costs incurred. By encouraging a fee from those who wish to register their children it would be a self-sustaining program that would encourage parents to register their children for school, thus lowering the illiteracy and poverty rates among immigrants in general, while boosting the economy through a new source of revenue. This would also have the added bonus of lowering the crime rate, because parents who know that their children would be able to sponsor them when they become legal residents would encourage their children to finish secondary school and obtain gainful employment, while continuing to be law abiding residents. This may not be an ideal solution, but it would help to streamline the immigration process for millions of illegal children, who have developed identities as Americans without the benefits of citizenship. It would also appease the conservative sense of illegal immigrants taking advantage of the system, while also keeping track of illegal immigrants in the country; on the other side of the argument this compromise would bring a sense of organization and justice to the children of immigrants, while refraining from overt discrimination to their parents.

In an attempt to stem the flow of immigrants, the United States could take an approach similar to that of many European countries. By making bilateral agreements that would weed out false claims of asylum, Italy was able, through a deal with Libya, to reduce the flow of illegal immigrants arriving on its shores from tens of thousands to hundreds.[xxv] There is evidently no way a country can completely cut off illegal immigrants without some sort of backlash. In an attempt to stem the flow of illegal immigrants, the European Union Parliament passed guidelines which stated that illegal immigrants could be held for up to 18 months before deportation, and in response Hugo Chavez claimed that he would cut off oil supplies to their countries.[xxvi] European countries that have attempted to block illegal immigration have faced staunch protests and criticisms from immigration rights advocates in their countries, even when those immigrants cause crimes or contribute to the violence in society.[xxvii] Since blocking illegal immigration would cause obstacles amongst large numbers of the United States population, as evidenced by what has occurred in Europe, it is up to the United States to take a progressive stance towards immigration and their educational policies. As long as the children of immigrants are law-abiding citizens, then the US should not place undue burdens in their paths to acquiring citizenship or education.

Conclusion

Immigrants made the United States, when it was just called the West Indies. This country was built upon the backs of immigrants. In furtherance of making this country great, there must be an unqualified acceptance that there is no real way to stem the flow of immigrants who come to America. What can be done is to approve legislation that would reward the children of illegal immigrants who accomplish, what many native Americans are unable to do, become productive members of society, who through their own legitimate had work and struggle are able contribute to the academic, social and financial growth of this country. Immigration laws as they currently stand, contradict themselves through judicial rulings and therefore are effectively ineffective. If the country were to take a more affirmative, progressive stance with regards to illegal immigration, it could effectively make the problem take care of itself, or at least ease the burden it places on the people that currently live here in the United States.


[i] http://www.dhs.gov/sites/default/files/publications/immigration-statistics/yearbook/2011/ois_yb_2011.pdf

[ii] Christine ArmarioIllegal Students Entitled To K-12 Education, Dept. of Education Reminds Schools, Associated Press, May 6,2011.

http://www.huffingtonpost.com/2011/05/09/illegal-students-education_n_859710.html

[iii] http://cis.org/node/3876#public

[iv] Id.

[v] Id.

[vi] http://www.fbi.gov/about-us/ten-years-after-the-fbi-since-9-11/just-the-facts-1/violent-gang-initiatives

[vii] Plyer v. Doe457 U.S. 202 (1982)

[viii] Supra note ii

[ix] http://www.irs.gov/taxtopics/tc857.html

[x] https://www.ncjrs.gov/pdffiles1/ojjdp/182210.pdf

[xi] Gosia Wozniacks, Illegal Immigrants Find Paths to College, Careers, Associated Press, May 26 2012.

[xii] Id.

http://usatoday30.usatoday.com/news/education/story/2012-05-26/illegal-immigrants-college-careers/55222438/1

[xiii] http://www.immigrationpolicy.org/issues/DREAM-Act

[xiv] http://www.uscis.gov/ilink/docView/PUBLAW/HTML/PUBLAW/0-0-0-10948.html

[xv] http://www.ncsl.org/issues-research/educ/undocumented-student-tuition-federal-action.aspx

[xvi] http://www.ncsl.org/issues-research/educ/undocumented-student-tuition-federal-action.aspx

[xvii]  Nathan O’Neal, ‘Anchor Baby” Phrase Has Controversial History, ABC News, July 3, 2010.

http://abcnews.go.com/Politics/anchor-baby-phrase-controversial-history/story?id=11066543#.UHspAY7A27E

[xviii] Saundra Amrhein, Florida Weighs Case of Illegal Immigrant Who Passed Bar, Oct. 3, 2012

http://www.msnbc.msn.com/id/49279168/ns/us_news/t/florida-weighs-case-illegal-immigrant-who-passed-bar-exam/#.UHZJP47A27E

[xix] Supra at xi

[xx] Claudia Torrens, Mexican Immigrant With NYC Law Degree Is In Limbo, Mar. 6, 2012.

http://online.wsj.com/article/APd1b1263700a2418590f040b2da438f7e.html

[xxi] Miranda Leitsinger, California bar: Illegal immigrant should get law license, NBC News, Jun. 19, 2012.

http://usnews.nbcnews.com/_news/2012/06/19/12298380-california-bar-illegal-immigrant-should-get-law-license?lite

[xxii]Supra note iii

[xxiii]  Meredith Hoffman, Woman Spared Deportation to Bangladesh, New York Times, Sept. 29, 2011.

http://cityroom.blogs.nytimes.com/2011/09/29/women-are-spared-deportation-to-bangladesh-for-now/

[xxiv] Tejinder Singh, ICE confirms Kairi Shepherd deportation, Indian Embassy Plays Humanitarian Angle, Times of India, May 25, 2012

http://www.indiaamericatoday.com/article/ice-confirms-kairi-shepherd-deportation-indian-embassy-plays-humanitarian-angle

[xxv]  Elaine Ganley, EU Tries to Tackle Illegal Immigration, Associated Press, Sept. 6, 2010.

http://www.msnbc.msn.com/id/39027194/ns/world_news-europe/t/eu-tries-tackle-illegal-immigration/#.UHstJo7A27E

[xxvi] Associated Press, June 19, 2008

http://www.foxnews.com/story/0,2933,369389,00.html

[xxvii] Supra note xxviii.

© Copyright 2012 Barry University Dwayne O. Andreas School of Law

ABA Winter Institutes – January 23-25 and February 14-15, 2013

The National Law Review is pleased to bring you information about the upcoming ABA Winter CLE Institutes:

ABA National Institutes

 

Learn and network at these live in-person seminars that draw lawyers from across the nation.  January National Institutes include the 2013 E-Discovery and Information Governance, January 23-25 in Tampa, FL.  February National Institutes include the 2013 Gaming Law Minefield, February 14-15 in Las Vegas, NV.

Protecting Trade Secrets Before, During and After Litigation: A Book Review

A book review of Protecting Trade Secrets Before, During and After Litigation authored by Chris Scott Graham, by S. Merchant of The National Law Review / The National Law Forum LLC was recently published in The National Law Review:

The National Law Review

Protecting Trade Secrets Before, During and After Litigation is attorney Chris Scott Graham’s insider’s guide on the inner workings of trade secrets cases stemming from his twenty-five years of practicing law and serving as chair of Dechert law firm’s trade secrets practice. With its meticulousness and straightforwardness, the book reads like a bisection between an exposé on the professional life of a litigation attorney and Trade Secrets for Dummies.  Mr. Graham takes the perspective of legal counsel when handling such a case and explores the impediments they will face, the circumstances they must take into consideration and the particularities of common trade secrets issues.

Trade secrets misappropriation, most commonly relevant in cases involving technology in a business setting, is a specialized area falling within the umbrella of intellectual property law. Yet Mr. Graham refrains from waxing technical and instead presents a narrative, starting with the initial meeting with a prospective client, the trade secret owner, to the measured steps required in litigation, to seeking post-judgment equitable relief. The guide penultimately concludes with a how-to on crafting contractual provisions advantageous to the trade secret owner and developing an auditing process to determine whether businesses are adequately protecting their trade secrets.  As a bonus, the guide culminates with an appendix containing a sample stipulated protective order for litigation involving trade secrets with helpful footnotes providing further pointers— the cherry on top indeed, particularly for new attorneys branching into this area of the law.

Most significant is how the guide blends the theory of intellectual property law with a healthy dosage of pragmatism, as Mr. Graham takes on the challenge of getting into the nitty-gritty minutia of being an attorney in this field. For instance, in the context of identifying factors that render a case unfavorable for trade secrets litigation purposes,  the guide delves into the art of composing pre-suit demand letters, including the level of detail needed, specific language to use when listing the demands and the proper tone to use so as to not risk appearing “cavalier.” Later, in an analysis about selecting a venue for litigation, the guide launches into an exhaustive list detailing over twenty determinants to take into account.

A point of emphasis in the guide is how to effectively counsel clients throughout the litigation process, and the practical aspects of the guide extend to this discussion as well. Mr. Graham remains precise in his directions of how to navigate clients, from tactfully extracting the confidential nature of their trade secret to calculating their return on investment in relation to their litigation budget.  It appears that the trade secrets practitioner must morph into educator, risk analyst, business owner, appraiser and confidant—we may have missed that course in law school on how to accomplish all this but Mr. Graham succeeds in filling in the gaps.

At thirteen chapters and a total of 310 pages, including citations and an index, the guide manages to succinctly delineate the entire litigation process in trade secrets misappropriation cases. Along with intellectual property law, the guide incorporates contract, civil procedure and tort principles in its chronicle of the litigation process. A notable and perhaps unorthodox facet of the guide is how it portrays the dynamics of being an attorney in this field with utmost realism. As Mr. Graham himself states, his work is analogous to a law firm “whiteboard session…with everyone brainstorming to identify potential pivotal points on the issues at hand.” After examining the guide, one can see that when it comes to trade secrets litigation, it’s all in the detail.

Copyright ©2012 National Law Forum, LLC

Operational and Technical Changes for FACTA Compliance – January 30 – February 1, 2013

The National Law Review is pleased to bring you information about the upcoming Global Financial Markets – Operational and Technical Changes for FACTA Compliance:

key topics

  • Assess the full implications of the finalized FATCA regulation
  • Coordinate an optimal approach to operational, infrastructural and technical changes under FATCA
  • Identify strategies to effectively manage client accounts
  • Integrate existing internal procedures with FATCA compliance
  • Understand what is expected by the IRS

key features

  • Pre-Conference Workshop on January 30, 2013 for an Additional Cost:
  • Pre-Conference Workshop: The Intergovernmental Agreements: Changing the Face of International Tax lead by JP&MF Consulting and Mopsick Tax Law LLP

event focus

FATCA is amongst the biggest topics of debate in financial institutions across the globe. The effect that it will have on these institutions cannot be underestimated and its operational impact on the existing systems is set to be both time consuming and costly. The ability to successfully align all key stakeholders, including operations, technology, risk, legal and tax, will determine the ultimate cost of FATCA compliance. Moving on from mere interpretive matters, this GFMI conference will not only address key FATCA requirements but also discuss the practical impacts of IGAs and strategies for achieving operational and infrastructural efficiency.

The Operational and Technical Changes for FATCA Compliance Conference will be a two and half day, industry focused event, specific to Senior Executives working in Banks, Insurance and Asset Management Companies. Attendees will address key FATCA requirements, while discussing the practical implications of IGAs and strategies for achieving operational and infrastructural efficiency.

Key Themes of the Operational and Technical Changes for FATCA Compliance Conference Include:

1. Challenges of FATCA regulations and prospects for the final regulation

2. Achieving operational and infrastructural efficiency

3. Coordinating existing AML/KYC procedures with FATCA compliance

4. FATCA from the FFI’s perspective 5. Beyond banking: the challenges of FATCA implementation

6. Coping with the withholding obligation under FATCA

This is not a trade show; our conference series is targeted at a focused group of senior level executives to maintain an intimate atmosphere for the delegates and speakers. Since we are not a vendor driven conference, the higher level focus allows delegates to network with their industry peers.

IRS Guidance Encourages Leave Donation Programs for Hurricane Sandy Victims

The National Law Review recently featured an article, IRS Guidance Encourages Leave Donation Programs for Hurricane Sandy Victims, written by Alexander L. ReidCelia RoadyMary B. “Handy” Hevener, and Matthew R. Elkin of Morgan, Lewis & Bockius LLP:

 

Employers wishing to provide disaster relief assistance have several tax-relief provisions available to them.

In the wake of Hurricane Sandy and the resulting destruction and devastation to the East Coast, many employers have expressed an interest in providing disaster relief assistance to their affected employees. The following describes the different tax-relief provisions that may be applicable should employers provide such assistance.

Employee Donations of Vacation and Sick Pay

One way that employers can assist affected employees is by enabling employees to donate vacation, sick, or personal leave in exchange for employer contributions to charitable organizations for the relief of disaster victims. Without guidance from the Internal Revenue Service (IRS), these leave-sharing programs would have required the employees receiving any donated leave days to pay income andFederal Insurance Contributions Act (FICA) taxes on the leave-day income. Morgan Lewis, however, assisted the American Payroll Association (APA) in obtaining payroll reduction donation relief from the IRS for Hurricane Sandy, which the IRS released on November 6, 2012, in Notice 2012-69.[1] The APA has been successful in obtaining such guidance twice previously, after both the September 11 attacks and Hurricane Katrina. When the IRS adopted these special relief provisions for 15-month periods after 9/11 and after Hurricane Katrina, some companies estimated that the provisions facilitated millions of dollars of additional donations.

The new IRS guidance permits employers to adopt leave-based donation programs under which the donating employee is not subject to income or FICA taxes on the donated leave, and the payments from charitable organizations to the recipients are also exempt from income and FICA taxes.

The APA’s request also asked the IRS to eliminate the requirement that employees designate recipient charitable organizations and allow employees to assign their leave days to disaster relief programs that employers can set up on their own (using the rules in the Internal Revenue Code discussed below, which permit employers to provide certain tax-exempt disaster relief payments to employees affected by major disasters.) The APA also proposed that the IRS might allow employees simply to assign designated amounts of their wages, rather than leave days, for Hurricane Sandy relief. We understand that the IRS may rule on these additional requests in subsequent guidance.

Qualified Disaster Relief Payments to Employees

In addition to encouraging employee donations of vacation and sick pay, employers wishing to provide assistance may utilize Section 139 of the Internal Revenue Code, which establishes a federal income and payroll tax exclusion for payments received by an individual as a qualified disaster relief payment. A “qualified disaster” includes any federally declared disaster, as well as any disaster that is determined by the Secretary of the U.S. Department of the Treasury to be catastrophic in nature. The Federal Emergency Management Agency (FEMA)has declared counties in the states of New York, New Jersey, Rhode Island, and Connecticut to be qualified disaster areas. In addition, the IRS has issued guidance confirming that Hurricane Sandy is designated as a qualified disaster for federal tax purposes, regardless of whether those affected are located in a federally declared disaster area.[2]

Employers who wish to provide payments to their affected employees should take steps to ensure that such payments meet the limitations of Section 139 and therefore will be treated as qualified disaster relief payments. Those steps include the following:

  • Make payments to employees only for reasonable and necessary personal, family, living, or funeral expenses or reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence or repair or replacement of its contents.
  • Do not make payments for any expenses compensated for by insurance or otherwise.
  • Confirm that any expenses are attributable to the qualified disaster.
  • While the employer does not have to require employees to account for actual expenses, the employer must reasonably expect the payments to be commensurate with expenses incurred. Consider having a written policy explaining how payments are intended to approximate actual losses.

Employers should also do the following:

  • Review 401(k) and retirement plan terms to determine if the payments must be treated as compensation under the plan documents.
  • Consider any state law implications.

Payments under Section 139 are an immediate and direct way employers can provide assistance to employees affected by Hurricane Sandy with little administrative cost. There are advantages, however, to providing such assistance through an employer-sponsored public charity.

Helping Through a Charitable Organization

Employer-sponsored public charities can provide a broader range of assistance to employees because payments from these organizations are not subject to the limits of Section 139 discussed above. Further, a charitable organization can respond to any type of disaster or employee hardship situation, not just “qualified disasters,” as long as the related employer does not exercise excessive control over the charitable organization.

There are three principal requirements for providing employee assistance through an employer-sponsored public charity:

  1. The class of beneficiaries must be indefinite. The relief program generally must be available to employees affected by current and future disasters and hardships.
  2. The recipients must be selected based on an objective determination of need or distress. The program must have some guidelines for determining when to provide assistance and must undertake some due diligence to ensure that the recipients are “needy or distressed.” Financial assistance cannot be provided to employees simply because they are victims of a disaster. Typically, public charities providing employee disaster or hardship relief adopt guidelines for awarding assistance and require an application form to be completed by the individual seeking assistance. The application form can then be used to make a determination that the applicant meets the “needy or distressed” requirement.
  3. The recipients must be selected by an independent selection committee. This is a critical requirement and will be met if a majority of the selection committee consists of members who are “not in a position to exercise substantial influence over the affairs of the employer.” As a practical matter, this means that the majority of the selection committee cannot consist of members of the employer’s senior management. Many organizations have retired employees or persons from the human resources department serve on the selection committee.

These employer-sponsored public charities also provide a concrete way for company employees to assist other company employees by donating to the organization. Donations from both the employer and other employees are generally tax-deductible charitable contributions, and assistance payments received by employees are excludable from gross income. Providing assistance through these charitable organizations can therefore offer increased flexibility and tax benefits.

Unlike employer-sponsored public charities, which can provide assistance under any type of disaster or employee hardship situation, employer-sponsored private foundations may only provide assistance to employees or family members affected by a qualified disaster as defined in Section 139. Employer-sponsored private foundations also must be sure to meet the safeguards listed above to ensure that such assistance is serving charitable purposes rather than the business purposes of the employer.


[1]. Read the IRS notice here.

[2]. Read the IRS announcement here.

Copyright © 2012 by Morgan, Lewis & Bockius LLP

Rainmaker Retreat: Law Firm Marketing Boot Camp

The National Law Review is pleased to bring you information about the upcoming Law Firm Marketing Boot Camp:

WHY SHOULD YOU ATTEND?

Have you ever gone to a seminar that left you feeling motivated, but you walked out with little more than a good feeling? Or taken a workshop that was great on style, but short on substance?

Ever been to an event that was nothing more than a “pitch fest” that left a bad taste in your mouth? We know exactly how you feel. We have all been to those kinds of events and we hate all those things too. Let me tell you right up front this is not a “pitch fest” where speaker after speaker gets up only trying to sell you something.

We have designed this 2 day intensive workshop to be content rich, loaded with practical content.

We are so confident you will love the Rainmaker Retreat that we offer a 100% unconditional money-back guarantee! At the end of the first day of the Rainmaker Retreat if you don’t believe you have already received your money’s worth, simply tell one of the staff, return your 70-page workbook and the CD set you received and we will issue you a 100% refund.

We understand making the decision to attend an intensive 2-day workshop is a tough decision. Not only do you have to take a day off work (all Rainmaker Retreats are offered only on a Friday-Saturday), but in many cases you have to travel to the event. As a business owner you want to be sure this is a worthwhile investment of your time and money.

WHO SHOULD ATTEND?

Partners at Small Law Firms (less than 25 attorneys) Solo Practitioners and Of Counsel attorneys who are committed to growing their firm. Benefits you will receive:

Solo practitioners who need to find more clients fast on a shoe-string budget. In addition to all the above benefits, solo attorneys will receive these massive benefits:

Law Firm Business Managers and Internal Legal Marketing Staff who are either responsible for marketing the law firm or manage the team who handles the law firm’s marketing. In addition to all the above benefits, Law Firm Business Managers and Internal Legal Marketing Staff will also receive these benefits:

Of Counsel Attorneys who are paid on an “eat what you kill” basis. In addition to all the above benefits, Of Counsel attorneys will also receive these benefits:

Associates who are either looking to grow their book of new clients in the next 6-12 months or want to launch their own private practice. In addition to all the above benefits, Associates will also receive these benefits:

Dewonkify – Electoral College

The National Law Review recently published an article by Hilary M. Hansen of Drinker Biddle & Reath LLP regarding the Electoral College:

 

The Word: Electoral College

The Meaning: The Electoral College is a body of 538 electors that determine the official outcome of the Presidential elections. Each state’s representation in the Electoral College is based on the state population (two per state, plus one for each Congressional district). Washington, DC has three electoral votes, but other U.S. territories do not have any.

After the votes are cast on Election Day, electors gather in their respective state capitols to cast votes for President and Vice President based on their state’s popular vote.  The vote is then certified.

In all states except Maine and Nebraska, which use a district-based electoral system, votes are awarded winner-take-all – a candidate just needs to receive 51% of the popular vote to receive all the state’s electoral votes. Each state decides how electors are chosen; no person holding elected or appointed federal office can serve as an elector. A candidate needs 270 electoral votes to win; if no one reaches that threshold the House of Representatives determines the President.

Used in a Sentence: “The election night drama of 2000 may be recreated this year, as experts say there is a real chance for one presidential candidate to win the popular vote but lose the presidency thanks to the Electoral College system.” (from U.S. News article “Electoral College, Popular Vote Split is Possible, Experts Say”)

What it Means: What really matters in an election is getting 270 electoral votes. Under the Electoral College system, the winner of the popular vote can lose an election – it has happened four times, in 1824, 1876, 1888, and 2000. The distribution of votes across the country is important; while the popular vote may swing in favor of one candidate, if the votes are concentrated in certain states, they may not have enough electoral votes to win.

History: The roots of the Electoral College go back to the founding fathers’ debate over the extent to which the United States would be a federal system. Virginia delegates to the 1787 Constitutional Convention proposed having Congress elect the President. Out of concerns about separation of powers and the independence of the President, the “Committee of Eleven” recommended that there be an independent group of electors, apportioned to states in equal numbers as their representation in Congress. This indirect election mechanism was then incorporated into the Constitution; Article II, Section 1 refers to a system of Presidential “electors” and lays out the framework for the Electoral College. While the Constitution describes this system and the role of these electors, the term “Electoral College” was not used until 1845. Throughout U.S. history there have been over 700 proposals to reform the Electoral College, including efforts to change to a proportional vote base rather than winner-take-all and to abolish the system completely and rely on popular vote as the sole electoral method.

©2012 Drinker Biddle & Reath LLP

Securities Fraud National Institute – November 15-16, 2012

The National Law Review is pleased to bring you information about the upcoming Securities Fraud Conference by the ABA:

This national institute is an educational and professional forum to discuss the legal and ethical issues surrounding securities fraud.

Program highlights include:

  • Panel discussions with senior officials from the U.S. Securities and Exchange Commission  and U.S. Department of Justice
  • Updates since the passage of the Dodd-Frank Act
  • Breakout sessions focused on new financial reform legislation
  • Strategies for practitioners when representing clients under investigation, indicted and during appeals

When

November 15 – 16, 2012

Where

  • Westin New Orleans Canal Place
  • 100 Rue Iberville
  • New Orleans, LA, 70130-1106
  • United States of America

Federal Government to Launch Multistate Health Insurance Plans

The National Law Review recently published an article by Nita Garg of Barnes & Thornburg LLP regarding Multi-State Health Insurance Plans:

 

 

Under multistate plans recently announced by the Obama administration, health insurance operated under contract with the federal government will be available to consumers in every state through state insurance exchanges mandated under the Affordable Care Act (ACA). While the White House has suggested that these plans will serve as a substitute for the government-run health insurance plan that was discussed, and rejected, during health care reform negotiations, existing insurers and developers of CO-OPs were taken by surprise at the announcement.

The impetus behind these plans is the belief that a government sponsored multistate plan will increase competition in health insurance markets, which tend to be geographically clustered.

In those states and regions in which a single insurer is dominant, the hope is that these plans may lead to competitive pricing where such competition would otherwise be difficult.

While proponents speak of these plans’ promise, others are concerned. The ACA provisions pertaining to these plans do not specify how these plans will comply, if at all, with requirements under various state laws. Generally, issues related to insurance regulation fall under the jurisdiction of state governments. Private insurers worry that if state laws would not apply, these multistate plans may have an unfair competitive advantage over other insurers who are subject to state-specific requirements.

While administration officials stated that for they past three months they have been reviewing rules to be issued soon (Pear, New York Times, Oct. 27, 2012), insurers have been without any regulatory guidance as of yet, and, as mentioned earlier, the ACA provisions have not provided much clarification on how these plans will operate. Given this lack of direction, insurers been unable to prepare for implementation of these plans. Speaking to Sarah Kliff of the Washington Post, John McDonough, a Harvard University School of Public Health professor who worked as a health policy adviser to Sen. Ted Kennedy, said that these plans have the potential to disrupt insurance markets, due to the rushed nature of these discussions. “It’s happened so fast, in a brief window, that there was not a lot of time for robust conversation,” he says. “The conversation was like, ‘this is a good idea, let’s cook something up.’ It was definitely not a thoughtful, nuanced conversation.”

© 2012 BARNES & THORNBURG LLP

FATCA Compliance Conference – December 4-5, 2012

The National Law Review is pleased to bring you information regarding the upcoming FATCA Compliance Conference December 4-5, 2012 in New York City:

Implementing FATCA compliance standards will come with challenges for financial institutions across the globe. It is imperative that organizations and individuals, who oversee FATCA compliance regulations adequately prepare, understand and comply with the standards of the new regulations. The marcus evans FATCA Compliance Conference, December 4-5, 2012 in New York, NY will focus on the main concerns and issues with the upcoming compliance expectations under FATCA and analyze the existing requirements and how financial organizations can adequately comply.

Join industry leading experts, including key speakers:

  • Kathleen G. Dugan, Senior Vice President, Corporate and Institutional Services at Northern Trust
  • Jason Vasquez, Senior VP, BSA/AML Officer at Provident Bank
  • Kevin V. Sullivan, Head, North American Tax Operations Vice President at BNP Paribas Corporate & Investment Banking
  • Bill Holmes, Director, International Data Management at US Internal Revenue Services
  • Michael N. Obolensky, Senior Regulatory Counsel at Lloyds Bank

Attending this premiere marcus evans conference will enable you to:

  • Discuss the fundamental challenges with FATCA compliance as it relates to clarification of terms and definitions
  • Review the advantages of leveraging current Anti-Money Laundering (AML) programs in order to implement FATCA compliance
  • Discuss FATCA’s impact on insurance companies application and implementation process
  • Evaluate the growing concern of violating privacy rules as it relates to disclosure of client information

Attendees will benefit from a dynamic peer-to-peer presentation format consisting of workshops, interactive panel discussions and case studies. Each network and interactive session will be followed by 10-15 minutes of Q&A affording all in attendance an opportunity to get the answers to questions affecting their business. Moreover, 4+ hours of networking opportunities will supply attendees with benchmarking and best practices.

For more information, please contact Michele Westergaard at 312-540-3000 ext. 6625 or Michelew@marcusevansch.com.

For a full list speakers and topics, visit http://www.marcusevans-conferences-Northamerican.com/FATCA_NLRB