.

Dealing with Hostile Adversaries in Contentious Litigation

July 29, 2024

by Kent J. Schmidt, Jennifer R. Coates, and Ashley Repp

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Litigation is an inherently adversarial process. At times the contentiousness and acrimony become a challenge for the parties to address. Hostility increases the costs of litigation as well as the stress levels of all participants. For those reasons alone, counsel must be able to deal with aggressive and unreasonable adverse parties and continually develop these skills. In this episode, Kent Schmidt interviews Jennifer Coates and Ashley Repp on how to handle hostile adversaries in litigation, what courts are doing about a lack of civility and secrets to keeping a level head and maintaining mental health during the battle.

This podcast is not legal advice and does not establish an attorney-client relationship or create any duty of Dorsey & Whitney LLP or those appearing in this podcast to anyone. Although we try to assure that the content of this podcast is accurate, comprehensive, and reflects current legal developments, we do not warrant or guarantee those things. The opinions expressed in this podcast are the opinions of those appearing in the podcast only and not those of Dorsey & Whitney. This podcast is considered attorney advertising under the applicable rules of certain states.

Transcript

Voiceover

Welcome to another episode of the SharkCast on litigation risks management where we explore why businesses are so frequently sued, and how to mitigate and navigate the dangers lurking in these risky waters.  Join us now as we welcome our host Kent Schmidt, Litigation Partner at the law firm of Dorsey & Whitney.

Schmidt

Welcome again to another episode of SharkCast.  You know, if there’s one thing that I love about the legal profession, it is that it involves a lifetime of learning.  Once you decide to become a lawyer, you’re essentially signed up to keep learning your entire practice and beyond, and it’s not just the new developments that we often talk about on SharkCast, like new technology, new regulations and trends, and of course artificial intelligence, which is the buzz right now, but it’s learning about some of the basic things that we can always improve on, particularly as practitioners, including litigators.  And one of the reasons I enjoy doing SharkCast is that I’m always learning, including from my guests, including on these topics, and today I’m sure will be no exception.  I was told a few months ago by one of my partners that one of our two guests today, Jennifer Coates, has many skills and attributes as a lawyer and a trial attorney, but one of her outstanding skills is her ability to handle difficult opposing counsel.  And when I heard that, I thought I could always learn a little bit more from how to do this effectively.  There are times I feel at a loss on how to handle very uncivil, uncooperative, opposing counsel.  I’m sure this episode’s gonna have a number of those types of adjectives in it.  And so I thought what better way to learn than by interviewing Jennifer.  And Jennifer and I, who invited another one of our colleagues, Ashley Repp, who also has some interesting experiences to share and some insights.  And I think this will be a great opportunity to share some of our experiences.  Maybe while we were going through those experiences is very difficult and we didn’t think we’d ever be able to have a lighthearted conversation about those, but with most things you go through in life, as time goes on, you can learn and you can perhaps even chuckle about how ridiculous the other side was.  So let’s dive in.  Welcome to SharkCast both Jennifer and Ashley.  Both are attorneys in our Minneapolis office, and why don’t I just open it up and see if you have any sort of opening general thoughts on the topic of lawyer civility before we jump into a number of questions and subtopics.

Coates

Thank you so much for having us.  This is a wonderful opportunity I think to connect across practices and actually just to talk to people with different styles, frankly.  I think that when we talk about opposing counsel, I think in my career as a litigator, as a trial attorney, I just run across a lot of people that think talent is the same as being abstinent and difficult.  And it’s not.  The more difficult the counsel tends to be, the more I question, you really know what you’re doing?  Because, you know, and you really have a handle on your case and the law, and that kind of thing, because I just don’t find it necessary to be difficult.  Direct, yes, to the point, yes, but difficult, I don’t know.  So for me it’s been an interesting exploration of, you know, who I am and who I wanna be as a practitioner, and how I wanna be seen by the other side, but also, and by my counsel at large out among the bar, but also, you know, understanding that where that difficulty comes from, why people want to be difficult.

Schmidt

Ashley, any thoughts you’d like to share before we dive into some specific questions?

Repp

Yeah.  So I’d actually like to echo what Jennifer said.  I think I’ve noticed when people become difficult, don’t want to share evidence, start becoming challenging, you know that they’re missing something in their case and they might not necessarily understand what their end game is, or what that end game should be.  So I do find it interesting and it always gives me some pause when I meet someone that just wants to be difficult for the sake of being challenging in a case.  I think additionally for me my integrity really is all I have at the end of the day.  Who I am and who I hold myself out to be, that is what people will know me by when I’m not here anymore.  And so to that end, I try to make sure that I’m conducting myself in a way in this practice that I can feel proud of and know that I did the right thing, and I adhered to the rules, and I try to be a good person while being a zealous advocate for my client, because that’s what I’ve got.

Schmidt

Absolutely.  Well, those are some great opening thoughts.  I think it also would be helpful to get a judicial perspective.  And I mentioned earlier that this conversation with one of my partners is what prompted this conversation with Jennifer, and which we’ve invited Ashley to join us.  But it was also confirmed by a recent California Court of Appeal decision, which came down just a few weeks ago, and I’m not going to name, I’m not gonna give the name of the case because it has the name of the law firm in it and it’s a solo practitioner and I think this lawyer’s probably already been chastised enough by having a reported decision with his name that’s forever gonna be part of the California Appellate reports.  So I’m not gonna give you the name, someone really wants to get the name of the case they can e-mail me.  This lawyer brought down the wrath of our Court of Appeal with some antics that are not that uncommon in the profession.  He served some boilerplate discovery responses, and then there was a dispute before discovery referee, in which he tried to interject some materials to infect and prejudice the discovery referee about the other side.  And then he sent some rather nasty emails.  I mean, they’re not the worst emails I’ve ever seen.  The subject line was, are you joking?  And then he talked about his adversary’s position being the stupidest thing he’s ever heard of in 30 years of practice.  Very condescending.  And he concluded by saying that opposing counsel should knock it off and get a life.  So, you know, not the worst, but still very unprofessional.  And here’s what the court had to say.  The court has in the past had occasion to deplore the lack of civility that has flourished in the legal profession in recent decades.  Our profession is rife with cynicism, awash in incivility, lawyers and judges of our generation spent a great deal of time lamenting the loss of a golden age when lawyers treated each other with respect and courtesy.  More recently, another court has echoed this sentiment in upholding a severe reduction in attorney fee request.  Excellent lawyers deserve higher fees and excellent lawyers are civil.  Sound logic and bitter experience support these points.  Civility is an ethical component of professionalism.  Civility is desirable in litigation, not only because it is ethically required for its own sake, but because it is socially advantageous.  It lowers the cost of dispute resolution.  The American legal profession exists to help people resolve disputes cheaply, swiftly, fairly, and justly.  Incivility between counsel is sand in the gears.  Incivility can rankle relations and thereby increase the friction, extent and cost of litigation.  Calling opposing counsel a liar, for instance, can invite destructive reciprocity and generate needless controversy.  Seasoning a disagreement with avoidable irritants can turn a minor conflict into a costly and protracted war.  All of those human hours, which could’ve put, been put to socially productive uses, instead are devoted to the unnecessary war and are lost forever, all sides lose, as does the justice system, which must supervise the hostilities.  And then the Court went on to say that this opposing counsel, quote, didn’t get the memo on this, notwithstanding the fact that he bragged about his 30 years of practice.  So quite a chastisement from the Court of Appeal, and I’m sure that courts around the country would reflect that.  Jennifer, you’ve been in practice a long time, so maybe I’ll get your perspective over time.  Do you think the lack of civility is increasing in recent years compared to when you started practicing?

Coates

I do.  I think that not only is it the lack of civility increasing, but I sometimes worry that it’s celebrated by clients or shown as something that’s positive, and therefore people try to be less civil because that somehow says that you’re a zealous advocate.  I think part of it though has to do with the position I’m now in, as opposed to where I started.  So you know, I started as an associate, I went into government practice, then I came back out and I’m a partner in a private practice.  And obviously as a partner, you deal with opposing counsel, whoever the lead counsel is for that side, there’s a different dynamic.  And so sometimes people will be uncivil to me, but kind and polite to the associates or my team members that are reporting through me.  And actually, I don’t mind that.  I don’t mind if people are uncivil to me.

Schmidt

You’ll take the brunt, huh?

Coates

Right, absolutely.  But calling it one of my associates and sending an e-mail that says, you know, you’re an idiot, or how did you get that job, that is going to bring out the bear in me because that’s totally inappropriate because, and I think Ashley and I worked on a case together where somebody actually did this.  And I think my response to opposing counsel was I’m the person that makes the strategic decisions for this case, and so if you have a problem with the strategy, then call, come talk to the person with the strategy, who’s setting the strategy.  And sometimes people will talk to you, sometimes they won’t.  Sometimes I think there’s a cowardice to it.  You know, I’d rather pick on somebody that has less power on the team.  But that’s a long way of saying yes.  I think there is more incivility, and if I can just say this part too, which is often when I bump into people who say my daughters or my son is gonna go to law school, they love to argue about everything.  And I think you started off this podcast with the right phraseology, which is when you sign up to be a lawyer, particularly a trial attorney, a civil litigator, you’re signing up to keep learning.  How do seeds work?  Why is broccoli grown in certain regions and it’s not?  You know, how does, how do the markets work?  In whatever it is that’s the subject of our case, we have to learn fresh so that we can teach it to a jury.  And so when people say, you know, my kid argues a lot, that’s why they should be a lawyer, there’s this perception that that’s what makes a good lawyer.  And I think that it’s the opposite.  What makes a great lawyer as a trial lawyer or civil litigator on the other side, is somebody that can learn and knows their case and the law.  And so, you know, those are the things that are valuable.  That’s a little bit of my tangent and my high horse.

Schmidt

Yeah, Ashley, as a lawyer that is near the beginning of the career than Jennifer or I am, have you experienced that, you know, someone that’s 10, 15, 20 years senior to you in terms of years of practice, just pulling out the condensation card and playing that like you don’t know what you’re talking about because you’re only a few years out of law school?

Repp

I have been practicing now for seven years and I do think that it’s not just because I’m younger.  I think it’s also because I’m a woman.  And I do find that especially men that are opposing counsel are more likely to be condescending to me, or difficult or unnecessarily obstinate for the sake of it versus other women.  And so I find that frequently the most difficult opposing counsel that I have to work with are male opposing counsel.  I have been called sweetheart, I have been disregarded in a setting in which there’s other attorneys, I’ve gotten a lot of the puffery of I know my case, I know that this sort of case always has X sort of outcome, you don’t know what you’re talking about.  And I think as a younger woman, I frequently will panic for a second and gut check myself when I’m confronted with this incivility and be like wow, maybe am I wrong?  I think it’s a little bit of gaslighting.  I think I’ve gotten more confident and comfortable over the years as I’ve had successful outcomes in cases to trust myself a little bit and recognize that a lot of that is puffery.

Schmidt

And it’s, I’m sure it’s always difficult to know, is this an equal opportunity jerk, or is this someone who’s biased, which is a significant concern and issue in the profession, is manifesting through how they’re treating you?  And it’s there, and we deal with it, and we all take training to make ourselves more sensitive to it and become aware, and the more you focus on it, the more you realize there’s a lot of that out there, even in today’s legal profession.  Let’s talk about some of the varieties of what I’ll call the problem kids that we deal with.  We’re sort of lumping these all together and we’ve identified some of the things condescending, of course.  How about just super angry, aggressive, no courtesies, you know, extensions?  Jennifer, what are some of the ways you deal with that stripe or variety of difficult opposing counsel?

Coates

I think when you deal with someone that doesn’t want to extend courtesies such as extensions, or respond to correspondence, what you’re dealing with is somebody who feels that they hold your feet to the fire, that you’ll work on their schedule.  And I think it’s really important in those instances to set your own pace and to say, you know, look, I will respond to you within the rules.  So the rules tell me this.  So I’ll respond to you in the rules and not allow yourself to get swept up in their timing of the case.  So I think that’s hard to do when you first start practicing because you don’t have the confidence or the experience yet to set your own pace, but it’s really important that you do that.  For people that are angry, I find that the best defense to angry people is to just be sweet as sugar.  And just, you know, if they, if somebody sends me an e-mail that says Jen, you know, no courtesy, no greeting, no pleasantries, my response to that is, Dear Mr. Hunt, that’s not a real person.  I am so glad, thank you for your response to my e-mail.  And part of that for me is remembering who I am and how I want to be viewed.  I think for people who are just starting to practice, it’s important to remember that every communication you have, including voicemails you leave, will be attached to a motion at some point.  You need to think about it that way.  You know, is this going to be attached to a motion to compel?  And whereas your client, who maybe has litigation, high stakes litigation once every what five years, your client doesn’t care how you’re responding, but you work more than once every five years.  So that means if I send an e-mail that’s discourteous, rude, bigoted, unreasonable, whatever it is, that the court knows it, and I have to get in front of this court again.  So that’s one problem.  And then you have opposing counsel knows it, and you may face opposing counsel again.  So I think it’s really important to remember to be as sweet, as nice as possible is how I respond to it.  Getting down into the mud usually is not a good solution.

Schmidt

You know a moment ago we talked about condescending counsel.  But there’s something that is kind of the opposite of condescending that I’ve also experienced, which is sometimes a solo practitioner or someone from a small firm will do the oh, you’re a big, huge law firm and little old me.  It’s just where this false sense of like, I’m not sure exactly how to put it, but trying to make you feel like you’re in a bad position just because you happen to be part of a larger organization.  Sometimes that’s manifested when you’re trying to schedule something and they say I looked up and Dorsey has X number of lawyers and certainly a big, huge firm like you ought to be able to fend for yourself on this and have someone else cover.  Either of you ever experienced that?

Repp

I sure have.  Lots of people believe that attorneys are fungible and we’re not.  We are not interchangeable amongst ourselves and I think I encountered that much more frequently in my past life as a legal aid and public defense attorney.  As a public defender, you would frequently see someone making an appearance, or their PD was late, or something was going on because you have a crazy docket of people you need to attend to as a public defender.  And without fail once hearing, one of the prosecutors would say, well, couldn’t Miss Repp, or Miss whoever, or Mr. whoever step in and just cover.  And you pause because it seems so ludicrous that someone would think you should step in on this homicide you know nothing about and help this person make a high stakes decision about their life when you have nothing to genuinely assist them, aside from having an Esq at the end of your name.  We are not fungible.  We learn our client’s stories and their cases and to that end, we need to be the ones that are present in assisting them, not somebody else.  An emergency, fine.  But it should not be a standard operating procedure that we sub in for one another.

Schmidt

So that’s just one of the many varieties of unreasonable positions that opposing counsel take sometimes when they’re dealing with a large law firm.  Jennifer, what are your thoughts?  You’ve talked about sometimes just reducing the tension by compensating, by being extra courteous and kind.  What are the ways in which you’ve approached a decision on fighting fire with fire, not getting down into the mud, but oh, is this the way we’re going to be?  We’re not gonna do it?  You’re not gonna grant us extensions, so we’re gonna have to respond in kind, because we have to keep things even in terms of how aggressive we treat these deadlines going forward, and also if you could touch on at what point do you raise the issue with the judge or the arbitrator or the discovery referee?  So I guess I’m asking beyond the being extra courteous to a rather rude communication, what are some other ways that you handle these specific types of issues?

Coates

Well, first of all, I absolutely will call in the judge.  I’m not afraid to call a judge, call a CMC, or bring a motion.  I think that some attorneys have that fear, or your client has that fear that, you know, we don’t want to keep raising our hand.  Well, in Minnesota, where I practice, our state court has all these kinds of tools you can use before you have to file a motion.  We have something called a 11504 D conference, where it’s an informal conference with the court, you can send in a letter that says before I bring a motion, Your Honor, I just wanna tell you this is what’s going on.  And I’m, if we can’t solve this right now, we’re gonna have to bring a motion.  And usually those things kind of go away ‘cause you get, you know, the judge will tip their hand, as to, you know, which way they’re gonna go on this motion.  That gives me more information to advise my client.  So I think the first thing is, you know, don’t be afraid to use the tools that you have at your disposal.  I think the other part that you should not be afraid to do, is just say no and then just sit in silence.  What you mean no?  I mean no.  And then you look in the camera and you wait for counsel to respond to that.  You have put me in a position where I’m not gonna be able to advocate for my client.  So the other part is when you are representing someone as an advocate, you have to remember that you’re representing someone.  And so I have clients that come to me because of my style, how I represent counsel, how I interact with people, and you really do want to be mindful of that.  So if you have a client that’s a scorched earth client, generally I find they hire scorched earth attorneys.  If you have a client that’s you know most of my clients are clients that want to get to the right result, those clients can be talked off ledges, that kind of thing.  But you cannot adopt your client’s version of reality.

Schmidt

Yeah, that’s so important.  Well, I really echo that Jennifer, because, and you talked about this and made this point a couple of different ways.  You’re dealing with opposing counsel, but you also have to take direction from your account, from your client, and some clients get it and they recognize what that Court of Appeal that I read from earlier said, which is scorched earth increases cost.  And so most clients are concerned about the bottom line of litigation.  But some clients don’t get that connection and will push back against you for not being the junkyard dog is a phrase I hear, and so there are a lot of moving parts here, a lot of participants, the judge, opposing counsel, your client, and trying to navigate all of that.  And there’s a fair amount of diplomacy this calls for isn’t there?

Coates

There is, and you know, not all clients should be represented by all lawyers.  I think Ashley said that, you know, we’re not all fungible, and that’s true.  You know, sometimes you and your client are not gonna see eye to eye.  I want you to go after them and do this and do that.  And it’s like listen, I worked very hard for my law license.  I am not throwing it away for you.  And I’ve had that conversation with people.  You’re, you, this is not worth me throwing away my law license for.  Right?  Okay, maybe you need another lawyer.  I might not be the right lawyer for you.  And that’s a conversation that can be had.  But if you’re dealing with the other side and they’re saying, you know, you and your client are aligned and the other side wants to say okay, well, we’re not gonna do this, and we’re gonna go to the court, and let me call the court.  That’s when you pull out the phone number in the middle of the deposition and you say you know what?  That’s a great idea, let’s do that.  Let’s call the judge, and nine times out of ten when I had said that counsel backs down.  We don’t really have to call the court.  You don’t have to be this way.  Grumble, grumble, grumble, grumble.  And you’re like okay, well, I don’t know what you want me to say, because particularly when they’re in front of their clients, these types of lawyers, they’ve put on this persona.  So sometimes it’s even necessary to pull them away from their client and then you’ll get a different lawyer as well.  You know, it’s just a matter of figuring out so much of being a trial attorney, so much of being a litigator is about understanding human beings and people, and how they’re gonna react in certain circumstances.  And you have to pivot and adjust accordingly.  So, but I think that you and Ashley both have said it, which is what is my limit?  Where’s my line and am I willing to cross it?  And I have yet to see the opportunity where I’m willing to cross that line just to score points on my opponent.  There’s other ways to score points, one of them is to win.  Winning can take all kinds of forms, including the court and an informal conference saying to the other side are you kidding me, right now?  You’ve interrupted my day, my golf game, whatever it is the court was doing to referee this foolishness.

Schmidt

Ashley, there’s a lot of discussion in the profession about mental health and well‑being of lawyers, and certainly one of the great challenges for our own mental health is being in the middle of one of these difficult cases, with difficult opposing counsel.  Ashley, how have you been able to deal with the stresses that seem to inevitably come when you’re dealing with opposing counsel and whatever is happening in the proceedings, and whatever is gonna happen with this dispute over deposition schedule be able to unwind and not let it get the best of you mentally and psychologically?

Repp

Well, Kent, I’m gonna be candid with you.  I don’t know if I’m the right person to ask that question.  But no.  So Jennifer’s actually a mentor of mine, so she knows my story pretty intimately.  But one of the reasons I’m at Dorsey is because I was not good at tabling the mental health piece that came along with being a public defender.  I am not someone who easily lets go of the human story or the human element in cases.  And for me, I had case after case, I was on the felony team where people were, their lives were going to be ruined forever, and not just their lives, their family’s lives, alleged victim’s lives.  I mean, there was just a whole ripple effect of lives being devastated with many of the cases that I was dealing with.  And I think the final week for me where I knew I needed to step out and step away was I had very difficult opposing counsel on a very challenging case where an infant had shot and killed himself with a parent’s gun that was left on a table.  And there was possible Brady evidence that was being withheld.  There was challenging people, challenging factors, media involvement.  It was a really, really hard case.  And shortly thereafter, that same week, I had a client who had done really well and was getting out of treatment and starting his life over, and he was the victim of a homicide.  And so I kind of came to terms with, I had to come to Jesus with myself in that moment and I said I need to find a different place that still allows me to litigate because there’s something that I thrive being in the courtroom, and I thrive when I can develop strategy and figure out what my end game is.  But I need some distance from some of these human stories, and I think it’s a little bit easier working on some of these cases now at Dorsey, where at the end of the day, no one’s dying and no one’s going to prison.  We have to be creative and we have to honor our client’s goals and interests.  But I think at the end of the day, we’re able to take a pause and truly disentangle ourselves from the work that we’re doing.

Schmidt

Jennifer, anything that you’d like to add on keeping your own mental health in check while you’re going through very contentious litigation with difficult opposing counsel?

Coates

It’s very hard not to internalize somebody else’s anger.  I find it really hard when somebody is just being cruel, or mean, or difficult.  I find it really hard to say, well, it’s not personal, and just kind of goes off my back like water on a duck’s back.  I think when that happens, that’s why I’ve adapted the strategy I have, which is I will pull in other tools.  Why should I be the most unhappy person in this conversation when I deal with opposing counsel?  If I’m gonna be unhappy, so are you.  So that means that it’s not fighting fire with fire necessarily, but it’s saying, okay, what are the tools available to me so that I am not taking all of this fire onto myself?  So that’s one thing is using the tools that are available.  The second is, it is not weakness to take on the stress of litigation.  Our clients hire us for a lot of reasons, but one of the reasons they hire us, is they don’t feel like dealing with it.  They don’t want to deal with the conflict.  It’s not that they can’t do it, that they don’t want to do it.

Schmidt

They want you on the front lines.

Coates

That’s exactly right.  They’d rather have you on the front lines than them.  And so when you understand that that’s your role in the litigation, you do have to take extra care to make sure that you are protecting your own private world.  And so that takes a lot of forms.  Some of it is, I might make opposing counsel sit for a response.  Not ‘cause I’m so angry, but just because you don’t deserve my attention at this time.

Schmidt

Yeah, the timing and pace of the back and forth, you know we talked about like the pace of the basketball game, slowing the pace down.  Pace is very important in dealing with these.

Coates

It’s not always a fast break, and sometimes you do have to just say, I’m taking a time out.  You send an e-mail that says look, your tone is not appreciated and call people out on it.

Schmidt

And sometimes that helps them to calm down, slowing things down, particularly the emails are going back and forth at a rapid pace into the evening.  Everyone should be enjoying dinner with their families, and it’s just a rapid fire back and forth.  Maybe everyone should just pause and regroup tomorrow.

Coates

Oh, you’re so right, you’re so right.  I think, you know, often what we do need to do is just say to ourselves not everything requires a response.  Not everything requires, I’m gonna take you to court and I’m gonna do this.  Okay.  I’m gonna do that.  Okay.  You know, again, you guys set the pace of your own race, because otherwise this profession will eat you up.

Schmidt

That’s for sure.  And on this issue of mental health, one of the things helps me a lot is to think about where all this might be coming from their perspective, and whatever else they have going on in life.  You just never know.  I mean, like, if you if someone cuts you off on the freeway, you don’t immediately think oh, maybe they’re having a bad day because they’re going through some horrible family issue or they’ve got a sick parent or whatever, and they’re just frustrated with life, and so they’re laying on the horn at me.  But sometimes it’s good to stop and think that.  Cut someone else some slack because what you may be experiencing in terms of a nasty gram e-mail or a real reaction may just be their life, and their insecurity, and their fears, and their frustrations.  This is like the last straw for them.  And sometimes as a case goes on you get to know opposing counsel and you learn like, they’ve got some tough things they’re dealing with.  And perhaps what happened a few months ago was just a manifestation of that.  And sometimes you never know.  And so you just perhaps give them the benefit of the doubt and try to rise above the fray.

Coates

You’re absolutely right.  I think grace is so important.  To give other people grace and to understand you don’t know anything about people.  You don’t, you just, you don’t know what people are going through.  You don’t know if their child just got put into a mental health institution for a while.  You don’t know if they deal with drug addiction.  You don’t know, you don’t know if their lights got cut off this week ‘cause they own their own firm and the money’s not coming in and, you know, they had to let go of their, and you just, you don’t know anything about people about what they’re going through.  And so sometimes it’s best just to say, you know what, I, you know, I’m gonna give you a pass today.  I’m gonna give you some grace.  And then when they do come you do occasionally have a lawyer that’s just a, you know, they’re just kind of a nasty, that’s just what they do, that’s their practice, that’s how, that’s their style.  But most often I have people through, you know, two or three-year litigation, they’re different people.  It just depends on, you know when they, when you catch them.  You catch them on a good day or you catch them after their divorce is finalized or, you know, whatever it is.  You catch them and now they’re ready to be civil human beings.  And I think it’s that time where you just you kind of just have to keep it moving and not hold a grudge.  That’s really hard to do, to not hold a grudge.

Schmidt

That’s for sure, ‘cause we’re all human at the end of the day.  Well, I think we’ve reached the end of our time to talk about civility in the legal profession.  At this point in our SharkCast episode, we like to take a few minutes to learn a little bit more about the lives and background, and facts about our guests.  And so we call this the Deeper Dive.  I’d like to ask you both a question to start off with.  If you weren’t a lawyer today, what profession do you think you would most likely be pursuing right now?  Ashley, you want to go first?

Repp

I don’t know I, I knew I wanted to be a lawyer from the time I was pretty little.  You know, I’m gonna say I would want to be pursuing becoming an ambassador.

Schmidt

And when you say an ambassador, this is civil service appointed by the President of the United States to a foreign country.  And can you tell us a little bit more about your interest in foreign relations and ambassadorship?  Do you have a specific country in mind?

Repp

No, I don’t have a specific country in mind.  I mean, it really was because I just had to think of something and, but I have my masters degree in international relations.  And for a very long time I thought I would do something that kind of integrated my legal education with my international, I guess relations, education in general and kind of find that intersect, maybe doing some law of armed conflict, maybe doing some humanitarian or human rights law.  But I think that’s where I’d probably end up, yeah.

Schmidt

Well, that’s a very interesting…

Repp

It’s lofty, Kent, it’s lofty.

Schmidt

Very lofty, yes.  But you know what?  Many ambassadors are chosen as a sort of second or third chapter of someone’s career later on.  So who knows?  Maybe at some point in time that might be on your horizon.  It’s always fun to keep those types of dreams alive.  I’ll say though that wasn’t the answer I was expecting.

Repp

Oh, no.  What were you expecting, Kent?

Schmidt

Well, just something that’s adjacent to law.  I suppose it’s somewhat adjacent, but that’s a very interesting answer.  Jennifer, how about you?

Coates

I have to tell you Kent, I, every time I walk in this office, I’m shocked that I’m a partner in a law firm.  It just is not what I expected to do with my life.  Frankly, I would love to own a breakfast restaurant and read during the afternoons.  That’s what I would love to do.  If I wasn’t a lawyer, I would be a serial entrepreneur and then just do different business things.  I have to say, I have a lot more confidence now in my life than I did when I was choosing my professional track.  With the confidence that I have and the understanding of who I am now, there are things that I’m good at, I assumed everybody was good at, but they’re not, everybody’s not good at.  And so I think that I would embrace those parts of myself.  Like I think I would be a good business school fit.  One of the reasons I didn’t go to business school is I don’t like group work.  I do really understand leadership, and I’m very good at leadership, and so I think that that could have been something that I was interested in.  The four walls of a corporation just shock me every day that I walk in here and I’m part of that.  So I would probably do something that did not have four walls like this.

Schmidt

Well, that’s very interesting as well.  And as I said with Ashley, maybe that will be a later chapter in your life where you open a coffee shop and who knows, before my life is over, I may be visiting Ashley at an ambassador residence in some far-flung location, and enjoying a nice meal at Jennifer’s restaurant or coffee shop, or who knows where else our paths may cross again.  Well, this has been an enjoyable conversation.  I think I’ve, I certainly have learned a lot from this dialogue back and forth, and that’s what makes this profession extraordinary, and SharkCast a real pleasure and delight for me.  You both have been terrific guests.  Thanks for being on and appreciate your participation.

Coates

Thank you, Kent, for having me.

Repp

Thank you for inviting me.

Schmidt

As always, I’m indebted to the extraordinary team at Dorsey for making this podcast and episode possible.  For more resources on this and other litigation matters, go to litigationrisks.com where more information can be found, including a book on managing litigation written by yours truly.  Until next time, my friends, this is yet another reminder that there are a lot of sharks swimming out there in the murky waters, so swim safely.

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Proposed CMS Rule Ramps Up Potential Medicare Fraud Administrative Remedies

On July 6, 2026, the Centers for Medicare & Medicaid Services (“CMS”) proposed a rule that would expand its administrative remedies to combat potential fraud. The proposed rule is the latest in a round of administrative actions that signal CMS’s intent to aggressively pursue allegations of Medicare and Medicaid fraud and heighten the risk of fraud enforcement against even well-intentioned Medicare and Medicaid providers and suppliers. The proposed rule includes several changes to regulations that govern Medicare billing privileges. Providers and suppliers should be aware that these changes dramatically expand the flexibility afforded to CMS in enrollment and revocation actions, potentially leading to harsh consequences for ministerial and administrative errors. If finalized, moreover, the proposed rule could have material implications for providers and suppliers facing threatened revocation, including heightened risk of overpayment liability and increased hurdles to challenging revocations and denials of enrollment. Added Flexibility to Existing Revocation Grounds CMS has proposed to remove a number of factors that the regulations list as relevant to a determination of whether a provider has engaged in “abuse of billing privileges.” While acknowledging that the inclusion of these factors in the regulations was permissive (requiring consideration only where “as appropriate or applicable”), CMS stated that it must be afforded “the maximum flexibility to address all possible . . . scenarios without the rigid constraints of our existing factors.” CMS provided little guidance as to the outer bounds of what conduct could constitute an “abuse of privileges” that merits revocation of Medicare billing privileges. Instead, CMS noted that a “pattern of practice” of abuse of billing privileges might be established “by a simple finding that several of a provider’s claims do not meet Medicare requirements.” Similarly, CMS has proposed to expand the regulatory provision that permits revocation of enrollment if a provider certifies as “true” false or misleading information in Medicare enrollment application or renewal forms to include any scenario in which a provider submits “false or misleading information on or associated with any CMS Medicare enrollment-related form,” including materials submitted to Medicare contractors. CMS stated that it interprets this expanded rule to include anything related to Medicare enrollment, and not only those submissions that are “intended to gain or maintain Medicare enrollment.” If finalized, the proposed rule would add significant flexibility to CMS’s ability to pursue revocation of a provider’s enrollment. While CMS has assured providers that it would “invoke [the revised regulations]. . . only when legitimately warranted under the facts and circumstances and not as a matter of course,” such expanded flexibility threatens unpredictability in the event of even administrative or ministerial errors in submissions and claims. These changes would, moreover, make it more difficult for providers to challenge a revocation action. Expanded Revocation Grounds In addition to adding flexibility to existing grounds for revocation, CMS’s proposed rule adds to and expands CMS’s already broad authority to revoke provider and supplier enrollment. Such proposed changes include adding the following grounds for revocation: Denial of Enrollment Application. Where CMS could previously revoke a provider’s other enrollments if one enrollment is revoked, CMS would also be able to revoke a provider’s existing enrollments if an application for enrollment submitted by the provider is denied. High-Risk Enrollments. CMS would be able to revoke enrollment if it determines the provider or supplier (including owning/managing employees or organizations) poses a high risk of fraud, waste, or abuse due to “. . . an affiliation under [42 C.F.R.] § 424.519” or “the provider’s or supplier’s location within a limited geographic area that has an excessive number of providers and suppliers.” Certain Misdemeanor Convictions. CMS would be able to revoke enrollment if a provider or supplier—or its owners, managing employees, managing organizations, officers, or directors—are convicted of a “misdemeanor related to sexual assault or financial misconduct within the past 10 years that CMS deems detrimental to the best interests of the Medicare program and its beneficiaries.” Ownership Changes (HHA, Hospice, DMEPOS). CMS would have broad authority to revoke enrollment of home health agencies, hospices, and DMEPOS suppliers who do not comply with the regulations governing provider changes of ownership. These proposed, expanded grounds for revocation are notably broad, and CMS provides only limited guidance as to what conduct might result in revocation under these grounds. As with the proposed expansion of existing grounds for revocation, the open-ended nature of these proposed grounds for revocation may make it more difficult for providers and suppliers to challenge revocation actions. Expanded Grounds to Deny Medicare Enrollment As with revocations, CMS proposes to expand the grounds under which a provider’s application to enroll in Medicare can be denied. These expanded and additional grounds include many of the grounds added for revocations, but also include: Medicare Debt or Payment Suspension. CMS proposes expanding the ground to deny enrollment based on Medicare debt or payment suspension to include a provider or supplier’s “managing employee, managing organization, or individual or entity with any other form of business or financial relationship with the provider or supplier[.]” Significantly, this expansive definition (called an “associated party” under the proposed regulation) currently contains no material limitations, meaning almost any person or entity with whom an applicant does business could create denial liability. Sharing Locations with Denied/Revoked Providers or Suppliers. CMS would have authority to deny applications where a “provider’s or supplier’s practice location is in the same suite or office as another provider or supplier whose Medicare enrollment has been revoked or denied.” Hospices with Distant Medical Directors or Administrators. CMS would have discretion to deny hospice applications if the hospice’s medical director or administrator serves “multiple other hospices” or practices/is located “at such a distance (for example, in a different state) from the enrolling hospice that the medical director cannot realistically perform all medical director functions,” with a similar provision for administrators. In addition, CMS proposes applications denied for “other program termination or suspension,” may be applied to the provider or supplier in its own name or NPI or that of its owners, managing employees, or managing organization regardless of whether any appeals are pending. Retroactive Revocation CMS proposed to restructure and expand the regulatory grounds for retroactive revocation of billing privileges. Currently, Medicare regulations provide that revocations are, by default, prospective in nature: effective 30 days after CMS or the CMS contractor mails notice to the provider. Under certain circumstances, the regulations provide for revocations to be retroactive, such as when a provider is convicted of a felony, the date a professional license is suspended, revoked, or surrendered, or when a provider submits a false certification in their enrollment application. CMS has proposed to reframe the rule so as to default to retroactive revocation of billing privileges. CMS expressed concern that providers may collect payment from Medicare while remaining so non-compliant with enrollment requirements as to merit revocation. To address this concern, CMS proposed that all revocations be retroactive to the date of determined non-compliance.[1] As a result, providers suspected of misconduct or non-compliance are likely to face claims of retroactive overpayments in addition to the immediate concern no longer receiving Medicare payments while their enrollment is revoked. Reapplication Bar CMS’s proposed rule expands the grounds from which a provider may be prohibited from seeking reapplication as a Medicare provider. Under current regulations, CMS may prohibit prospective providers from enrolling in Medicare for up to 10 years if its enrollment application is denied because the applicant submitted false or misleading information in its application. Under the proposed rule, CMS will have the discretion to prohibit a provider from enrolling in Medicare if their enrollment application is denied for any reason. Conclusion As a part of the federal government’s increasingly aggressive push to combat real or perceived healthcare fraud, the proposed rule both broadens CMS’s authority to revoke and deny Medicare enrollment and raises the stakes for revocation and denial. What the proposed rule does not share is how CMS plans to exercise this expanded discretion: as a result, the proposed rule, if enacted, increases the unpredictability and potential ramifications of even technical noncompliance with CMS rules. As a result, Medicare providers should keep a close eye on potential revisions to these rules and their potential implementation and consider proactively evaluating their compliance under CMS standards. [1] In the proposed rule, CMS identifies, with respect to each ground for revocation, what it will consider to be the effective date of revocation.

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Litigation Privilege Does Not Automatically Protect Communications with Funders: The Commercial Court Clarifies the Limits of Privilege in the Context of Litigation Funding

In Uber London Ltd & Ors v Garry White & Ors; Mishcon de Reya LLP [2026] EWHC 1610 (Comm), the Commercial Court held that documents created to help a funder decide whether to invest in a claim will not ordinarily attract litigation privilege. This means that information a firm gathers while acting for a funder can later fall within the control of the claimants it goes on to represent in the same matter. Background The Claimants (a claim group of over 10,000 individual London black cab drivers and the assignee of two former minicab operators) alleged that the Defendants (three companies in the Uber group) obtained and retained their private hire operator's licence through an unlawful means conspiracy alleged to involve fraud. Because the claims were issued outside the ordinary six-year limitation period, the Claimants relied on section 32 of the Limitation Act 1980, contending they could not, with reasonable diligence, have discovered the fraud before June 2018. A preliminary issue trial was listed to determine the question of whether the Claimants discovered, or could have discovered with reasonable diligence, the alleged fraud and/or deliberate concealment only after June 2018. The Claimants were represented by Mishcon de Reya ("MdR"). However, before MdR’s engagement with the individual drivers had begun, in late 2017 it was engaged by the litigation funder Harbour to investigate the merits and value of the potential claim. During that stage, MdR corresponded extensively with Harbour and with the Licensed Taxi Drivers' Association ("LTDA"), a black cab drivers' trade association. MdR was not formally engaged by the Claimants until October 2018 onwards. Once the proceedings had started, the Defendants sought disclosure of communications exchanged between MdR and Harbour before the engagement of MdR by the Claimants (the "Harbour Communications"). This included correspondence between MdR and Harbour, communications with the LTDA, and documents held on MdR's file opened in Harbour's name in connection with the potential claim. The Claimants resisted disclosure on four grounds: (i) that the documents were not relevant; (ii) on the grounds of litigation privilege; (iii) that the documents were outside their control; and (iv) that disclosure occurring so close to trial would be disproportionate. Judgment (i) Were the Harbour Communications relevant to the preliminary issue? The Court held that the Harbour Communications were likely to contain relevant material, on two bases. First, where the Claimants or the LTDA had communicated directly with MdR, that material could shed light on individual Claimants' actual knowledge of the alleged facts. Secondly, what MdR and Harbour had discovered during their investigation could inform the question of what a Claimant could reasonably have discovered at the time (even though the Defendants accepted that MdR's knowledge could not simply be imputed to the Claimants). (ii) Were the Harbour Communications protected by litigation privilege? As set out in the classic cases of Three Rivers (No. 6) [2005] 1 AC 610 and WH Holding Ltd v E20 Stadium LLP [2018] EWCA Civ 2652, communications between parties or their solicitors and third parties for the purpose of obtaining information or advice in connection with existing or contemplated litigation are privileged when the following conditions are satisfied: Litigation must be in progress or in reasonable contemplation. The communications must have been made for the sole or dominant purpose of conducting litigation. The litigation must be adversarial, not investigative or inquisitorial. The Court rejected the Claimant’s claim to be able to withhold the Harbour Communications on the basis of litigation privilege. The Court confirmed that litigation privilege protects only communications created for the dominant purpose of conducting litigation. The Court found that Harbour had instructed MdR so that Harbour could decide whether to fund the proceedings. As such, the dominant purpose of the communications was in relation to funding, not the conduct of litigation. This was distinguished from the situation where an individual litigant who takes its own funding decision. In that situation, the decision whether to fund and the decision whether to litigate are one and the same, made by the person who will actually be the claimant, and so it forms a part of that person's conduct of their own litigation. In contrast, a third-party funder's commercial decision whether to fund someone else's claim is not necessarily part of conducting that litigation. The fact that litigation privilege can, in principle, be claimed by a non-party funder (as recognised in the case of Al Sadeq v Dechert [2024] EWCA 28) did not assist Harbour, since there was no evidence it intended to play any role in the litigation itself beyond funding it. Communications between Harbour and MdR did remain capable of attracting another kind of privilege: legal advice privilege, because of the solicitor-client relationship between Harbour and MdR. But communications with third parties such as the LTDA were not automatically protected in the same way. (iii) Were the Harbour Communications within the Claimants' control? The Court also rejected the argument that the Harbour Communications sat outside the Claimants' control because they belonged to Harbour and not the Claimants. The Court’s reasoning was that once the individual Claimant drivers became MdR's clients, MdR also owed them a duty to disclose material information. That included information that MdR had originally acquired while acting for Harbour. As held in the case of Hilton v Barker Booth & Eastwood (a firm) [2005] 1 WLR 567, a solicitor owing duties to two clients cannot simply prefer one over the other, and it was unrealistic to suppose MdR would investigate the same claims for Harbour, then represent the Claimants, while disregarding everything it had already learned. The obvious commercial expectation was that this earlier work would be used to advance the Claimants' case. MdR sought to rely on a confidentiality clause in a 2024 retainer agreement between it and RGL Management Ltd (a claims management company acting on behalf of the Claimants) to argue that it was relieved of any duty to disclose information obtained while acting for other clients. The provision stated that MdR may "have acted for persons in the same or similar sector as yours and by agreeing to the terms of this letter you agree that will have no duty to disclose to you any confidential information that we have obtained, or might in the future obtain, from acting for such persons or which is derived from any other source". The Court rejected this on several grounds. Claimants who had already become MdR's clients had an existing right to information in the Harbour Communications where it was relevant to their claims before the 2024 retainer agreement. If they were to surrender that right, it would have required their informed consent (also required under the SRA Code of Conduct). The Court found no evidence that such informed consent had been given. The terms had simply been made available to the Claimants through a portal, with no indication that Claimants understood they were giving up existing rights to relevant information. The Court found that even if the terms had been contractually binding, that would not have amounted to informed consent. In addition, the wording of the clause was not sufficiently clear to show that the Claimants had agreed to waive access to this information. (iv) Was disclosure reasonable, proportionate, and necessary at this stage? The Claimants argued that it was neither reasonable nor proportionate for disclosure to be given at such a late stage (approximately two weeks before the start of the preliminary issue trial) and that it was not necessary for the just disposal of the proceedings. The Court rejected this, but it drew a distinction between two categories of documents within the Harbour Communications: Documents bearing on the actual knowledge of the individual drivers, including communications with the LTDA, were not privileged, likely straightforward to review, and directly relevant to the preliminary issue. Their disclosure was ordered as reasonable, proportionate, and necessary. Documents reflecting only MdR's or Harbour's own assessment of the merits were of more marginal, indirect relevance and largely likely to fall under legal advice privilege. A review to isolate the smaller pool of non-privileged material in this category would be time-consuming for limited benefit, so this was excluded from the order. Key Points to Note The judgment is an important reminder of several practical points: However closely a funder is involved in evaluating a claim's merits, litigation privilege will only apply to communications where the sole or dominant purpose of the communication is the conduct of litigation, not the funder's own decision on whether to finance it. Unless that communication separately attracts legal advice privilege, it may need to be disclosed. The same considerations apply to other communications. For example, in RBS Rights Litigation [2017] 1 WLR 3539 the argument that an After the Event (ATE) policy was subject to litigation privilege was rejected on a similar basis. Whilst in this case, there was no dispute as to whether litigation was in contemplation, it is important to note that litigation privilege will not automatically apply to the investigative stages of a claim, i.e. before litigation is in contemplation. Even where litigation is reasonably contemplated, the dominant purpose test must still be satisfied. Material created primarily for fact-finding, risk assessment, or other investigative purposes will not attract litigation privilege unless those activities are actually undertaken for the dominant purpose of conducting the litigation. (See The Director of the Serious Fraud Office v Eurasian Natural Resources Corporation Ltd [2017] EWHC 1017 (QB)). When engaging a law firm, clients should ensure that they understand whether the firm has previously obtained information about their claim while acting for another party (for example, a funder or another interested party) and how that information will be handled. Any restrictions on the firm’s ability to share relevant information with the client should be explained clearly at the outset, including what information may be withheld and why. If this decision raises questions about your own funding arrangements, disclosure strategy, or privilege position, please get in touch with our Commercial Litigation team.

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37 Dorsey Attorneys Named 2026 Top Lawyers by Minnesota Monthly

Minnesota Monthly has recognized 37 Dorsey attorneys across 27 practice areas as 2026 Top Lawyers in Minnesota. Honorees are selected through a peer nomination process and a curated survey of practicing attorneys in Minnesota, who identify leading lawyers across a range of practice areas. Administrative / Regulatory Law Jennifer Coates Antitrust Law Michael Lindsay Banking & Financial Service Law Peter Nelson Copyright Law  Jeffrey Cadwell Corporate Law  Robert Hensley Robert Rosenbaum Criminal Defense: White-Collar  Beth Forsythe Edward Magarian RJ Zayed Health Care Law  Claire Topp Immigration Law  J. Mike Sevilla Insurance Law  Daniel Brown Intellectual Property and Patent Law  Stuart Hemphill International Trade Law  Jonathan Van Horn Labor and Employment Law  Edward Magarian Ryan Mick Melissa Raphan Land Use & Zoning  Jay Lindgren Marcus Mollison Litigation – Antitrust  Michael Lindsay F. Matthew Ralph Jaime Stilson Litigation – Commercial  Michael Lindsay Litigation – Construction  Eric Ruzicka Litigation – Intellectual Property  Peter Lancaster RJ Zayed Litigation – Labor Employment Benefits  Ryan Mick Melissa Raphan Litigation – Trusts and Estates  William J. Berens Theresa Bevilacqua Bridget Logstrom Koci Mass Tort Litigation / Class Actions  James K. Langdon Mergers & Acquisitions Law  Keith Ahlgren Rachel Benedict Brian Burke Morgan Helme John Jorgenson Brian Moore Robert Rosenbaum Jonathan Van Horn Bri Whiting Municipal Law Jay Lindgren Nonprofit/Charities Law Claire Topp Securities / Capital Markets Law Cam Hoang Robert Rosenbaum Securities Regulation Theresa Bevilacqua James K. Langdon Tax Law William J. Berens Trusts and Estates Jennifer Ede Bridget Logstrom Koci Sonny Miller Kiley Petty Henry

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The Long-Awaited Public Infrastructure Financing Solution for Development in Arizona

Every developer who has taken raw Arizona ground to a finished project knows the largest upfront cost other than the land price is almost always the cost to install the public infrastructure. Water, sewer, stormwater, streets, dry utilities, and the fiber backbone all have to be in the ground before a single lot closes or a building opens. That capital is deployed early and generates no return for years. For decades the standard workaround has been the Community Facilities District (CFD). That tool has grown materially harder to use, for reasons cited below, and House Bill 2999, signed in June 2026 and now codified as Chapter 40 of Title 48, is Arizona's response. Some Background I have spent a good part of my career on the other side of this problem. In the 1990s and early 2000s I served as general counsel of SunCor Development Company, one of Arizona's most active master-planned community developers, where we used Community Facilities Districts to finance hundreds of millions of dollars of major infrastructure across Arizona in cities such as Goodyear, Phoenix, Tempe, Litchfield Park, and Prescott Valley. For its time the CFD was an effective structure, and a great deal of what is now on the ground in those communities was financed with this tool. Unfortunately, CFDs have over time become considerably harder to use. Successive legislative amendments have layered on tax-rate ceilings, homebuyer disclosure obligations, and added procedural steps. Another drag on the use of CFDs is that formation of them runs through the municipality, where approval can turn as much on local politics as on the merits of a project. Developers now routinely are asked to absorb delay and uncertainty that a project's economics cannot support, which is a large part of why Arizona has fallen behind Colorado, Texas, and Utah in getting infrastructure financed. A better tool was needed, and Chapter 40 is it. How a SAID Improves on a CFD A State Affordability Infrastructure District (SAID) keeps what worked about the CFD: tax-exempt, property-secured, non-recourse infrastructure financing — while shedding much of what made the CFD cumbersome. Its principal advantages over a traditional CFD: Administrative formation. A SAID is formed by the Arizona Finance Authority against fixed statutory criteria, through a yes-or-no compliance review on a sixty-day clock, rather than through the discretionary approval of a city council or a board of supervisors. Insulation from municipal politics. Because formation is a state-level compliance determination, a meritorious project is far less exposed to local political headwinds than it is under the CFD process. Landowner control of the board. A SAID is governed by a board of the landowners — appointed at formation, then elected on an acreage basis. In a typical municipal CFD, the city council sits as the district board; here, the developer controls governance. Advance funding of impact fees. A SAID can use bond proceeds to advance-pay municipal development impact fees, unlike CFDs, removing one of the largest upfront cash burdens in a project. A uniform, statewide process. The criteria are the same regardless of jurisdiction, replacing the municipality-by-municipality variation that has made CFD outcomes hard to predict. Flexible boundaries. A district may include noncontiguous parcels in the same county within five miles of one another, which fits phased and multi-tract development. Capped cost and a fixed timeline. Authority fees to form a district are capped at $15,000, and a complete petition must be acted on within sixty days. The full range of bonds. A SAID may issue general obligation, special assessment, revenue, and refunding bonds, secured solely by district property and creating no obligation for any other taxpayer. What is a SAID A SAID is a special taxing district that the owners of a development form to finance public infrastructure with tax-exempt bonds: general obligation bonds, special assessment bonds, and revenue bonds. The bonds are secured only by the property inside the district and are repaid over the long term, with terms up to 30 years. They do not affect the credit of the city, the county, or the State, and they create no obligation for any taxpayer outside the district. In practical terms, a SAID lets you finance horizontal infrastructure over the life of the asset instead of writing the check at the front end. The maximum ad valorem rate securing general obligation bonds is capped by statute at $5.00 per $100 of net assessed limited property valuation, with a limited step-up to cover a debt-service shortfall. SAIDs Work for Commercial as Well as Residential Development The SAID bill drew most of its press as a housing-affordability measure, and it appears to be a strong one. It is the first Arizona district statute to let bond proceeds advance-fund municipal development impact fees, which pulls one of the largest upfront cash burdens off a homebuilder's pro forma. But the statute's eligible infrastructure categories apply with equal force to commercial, industrial, and mixed-use projects. An industrial or logistics project can finance roads, rail crossings, sidings, and grade separations. A life-sciences or technology campus can finance its water, sewer, roads, and broadband the same way a subdivision can. Read Chapter 40 as a general-purpose infrastructure finance platform, not a subdivision-only device. How Formation Works A SAID is formed administratively by the Arizona Finance Authority. The Authority reviews the petition for compliance with the statute; it is a yes-or-no review against fixed criteria, not a discretionary negotiation with a city council or a board of supervisors, and it runs on a sixty-day clock once a complete petition is filed. Formation requires the written consent of 100% of the landowners in the proposed district and an engineer's certification that public infrastructure costs will exceed $5 million. The district may include noncontiguous parcels so long as they lie in the same county and within five miles of the district's other property, which accommodates phased and multi-tract development; if any part of the district sits inside a municipality, the whole district must stay within that municipality's limits or planning area. The Authority's fees to form a district are capped at $15,000. Issuing bonds requires a district election. Governance Simplified A SAID is run by a three-member board. The initial directors are named in the petition; after that, directors are elected by the landowners on an acreage basis as ownership diversifies. Board service runs with ownership; a director must either hold fee title inside the district or be an individual designated by a fee-title owner; and corporations, partnerships, and other entities may hold that ownership, vote as owners, and designate the individual who serves. A district has no power of eminent domain and no zoning authority, and directors may not be officials or employees of the municipality in which the district sits. What a SAID Does Not Do It finances; it does not entitle. Zoning, platting, rezonings, use permits, and the specialized approvals a manufacturing or life-sciences facility may need all remain with the local jurisdiction and proceed on their own track. The financing and entitlement timelines should be coordinated with formation of the SAID, but they are separate processes. Two substantive limits are worth flagging at the planning stage. First, electric power is largely outside the tool: the statutory definition of public infrastructure does not reach power generation or transmission, and broader energy infrastructure was removed from the bill during the Senate amendments. A power-intensive user should not assume a SAID will carry its electrical load. Second, where water, sewer, or wastewater facilities fall within a regulated utility's certificated service territory, the district cannot build or own them without the utility's written consent and must convey them to the utility upon completion. Our Take For most master-planned residential work, and for a wide range of commercial and industrial development, a SAID will be the most efficient infrastructure-financing structure Arizona has offered. The right time to evaluate it is early in the acquisition and pre-development process, while the capital stack, the development agreement, and the entitlement strategy are still being set. Once the district's boundaries, general plan, and financing parameters are set, it is cumbersome at best to bring those into conformance later. Our Dorsey team has begun advising our developer clients on SAID formation on residential, commercial, and industrial projects statewide. If you would like us to assess whether a SAID fits a project you are working on, please reach out.

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Real Estate Attorney Alexis Olsen Joins Dorsey in Phoenix

Attorney Alexis Olsen has joined Dorsey & Whitney LLP as Of Counsel in the Real Estate group in Phoenix, the law firm announced today. Alexis focuses her practice on large-scale residential, mixed-use, and multi-asset development projects as well as multi-state commercial leasing transactions. She guides clients through sophisticated acquisitions, dispositions, leasing, entity structuring, investment strategies, and due diligence matters. She has structured co-investment arrangements that drive capital deployment into housing subdivisions nationwide and has represented both landlords and tenants in commercial leasing transactions involving office, retail, industrial, and specialty-use properties, including cannabis dispensaries. Alexis received her J.D. from Sandra Day O’Connor College of Law and her B.A. from the University of Arizona. Alexis comes to Dorsey from Squire Patton Boggs. “Alexis strengthens Dorsey’s real estate capabilities at a time when Phoenix remains one of the fastest-growing and most dynamic real estate markets in the country,” said Scott Jenkins, Dorsey’s Phoenix office head. “Her addition further enhances our deep bench of 12 real estate attorneys in Phoenix and reflects our continued investment in serving clients throughout Arizona and supporting their real estate transactions and objectives across the country. We are thrilled to welcome Alexis to Dorsey.” “Joining a firm with such a deep bench of experienced attorneys in the Phoenix office, especially in the Real Estate group, presents an exciting opportunity not just for my own professional growth, but for the clients we service,” said Alexis Olsen. “I look forward to building on this strong foundation, growing our national practice, and delivering top-tier service to our clients.”

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Patent Partners Al Araiza and Lena Petrovic Join Dorsey in Palo Alto

Patent partners Al Araiza and Lena Petrovic have joined Dorsey & Whitney LLP in Palo Alto, the international law firm announced today. Al Araiza works with clients to develop and implement patent strategies that align with corporate objectives, supporting growth initiatives, financing efforts, and successful exits, including initial public offerings and acquisitions. He advises on building, managing, and optimizing patent portfolios across a broad range of emerging and frontier technologies, with depth in wireless communications, artificial intelligence, and energy innovation. Before practicing law, Al gained engineering experience in the defense industry, working on energy system modeling and communications circuitry design. He also conducted biomedical research, with findings published in peer-reviewed journals. He has been recognized in the IAM Patent 1000 for his work advising clients on patent strategy and portfolio development. Al received his J.D. from Duke University School of Law, his M.E. in Biomedical Engineering from Tulane University, and his B.S. in Electrical Engineering from UCLA. Lena Petrovic works across the software and hardware industries to develop clear, well-supported patent applications. She guides clients through the prosecution process and advises on global trademark and copyright matters, including licensing and portfolio management. Lena regularly supports clients developing technologies such as artificial intelligence and machine learning, fintech, cryptography, interactive and immersive experiences, and digital media, and works with companies in entertainment, gaming, and sports. Before practicing law, Lena spent a decade at Pixar, where she contributed to major films including The Incredibles, Ratatouille, WALL‑E, and Brave. Lena received her J.D. from Santa Clara University School of Law, her M.S. in Computer Science from Princeton University, and her B.S. from California Institute of Technology. “Al and Lena bring a practical, technical, and business-focused approach informed by extensive experience working with technology companies, startups, and investors,” said Gina Cornelio, Patent Practice Group Co-Leader. “We are thrilled to welcome them to the Patent team and our growing Palo Alto office.” “Dorsey’s Patent practice is dedicated to understanding each client's business deeply, tailoring patent strategies that directly advance their goals,” said Al Araiza. “We are proud to join this outstanding team and look forward to driving success for our clients.”

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Dorsey Partner Melissa Raphan Elected a Fellow of the College of Labor & Employment Lawyers

International law firm Dorsey & Whitney LLP is pleased to announce that Partner Melissa Raphan has been elected a Fellow of the College of Labor & Employment Lawyers (CLEL) as part of its 2026 class. “Melissa’s election to this prestigious fellowship comes as no surprise to those of us who have had the privilege of working with her,” says Peter Nelson, Dorsey’s Managing Partner.  “She is an exceptional employment lawyer, a trusted advisor, and a leader whose impact extends far beyond her matters. Clients rely on her deep knowledge, strategic counsel, and ability to navigate complex workplace disputes and sensitive employment matters with both confidence and compassion. She has helped shape our firm, strengthen our profession, and opened doors for countless others through her commitment to mentorship and diversity. We are incredibly proud of her accomplishments and delighted to see her receive this recognition.” CLEL is a nonprofit professional association that honors the nation’s leading attorneys in the field of labor and employment law. Originally established to recognize excellence in the profession, CLEL has evolved into a respected intellectual and practical resource for the legal community and its many audiences. Its mission centers on recognizing individuals who have made significant contributions to the field, fostering the exchange of knowledge and delivering value to academia, government, the judiciary, and the broader public. Election as a fellow represents the highest level of peer acknowledgment, reflecting sustained achievement, integrity, and a commitment to advancing the profession. Melissa’s career reflects CLEL’s mission. She has been recognized both regionally and nationally for her advocacy, leadership, and achievements both inside and outside of the courtroom. Her employment litigation experience spans class actions, collective actions, and high-stakes individual disputes in state and federal courts, as well as arbitration forums including the American Arbitration Association and the Financial Industry Regulatory Authority (FINRA). She is also a trusted advisor on a full range of workplace issues, from hiring and performance management to sensitive terminations and organizational change. She brings decades of experience representing clients across the financial services, healthcare, food and agriculture, and energy sectors. Melissa will be formally inducted during CLEL’s installation ceremony held in conjunction with the American Bar Association’s Labor & Employment Law Conference in Washington, D.C., on November 7.

Insights

Alaska HB 126: What Changes for Alaska Native Corporations, Proxy Filings, and Annual Reports

Alaska House Bill 126 (HB 126), sponsored by Representative Neal Foster and passed by the 34th Alaska Legislature, is now law. The bill changes which Alaska Native Corporations (ANCs) must file proxy and annual report materials with the State of Alaska, and makes it easier to reinstate certain dissolved Village Corporations. For many smaller Village Corporations, the practical result is less public disclosure. For shareholders, advisors, and the public, it means some financial information that used to be available through the State will no longer be readily obtained. This eUpdate explains what HB 126 does in plain terms, walks through the practical trade-offs, and answers common questions. 1. What HB 126 Changes The old rule Under prior law (Alaska Statutes Sec. 45.55.139), an Alaska Native Corporation had to file its annual report, proxies, and proxy statements with the Alaska Division of Banking and Securities (the Division) if it had more than $1 million in assets and 500 or more shareholders on its current rolls. A filing ANC was also required to follow the Division’s proxy rules (3 AAC 08.305 through .365), which require specific disclosures such as top 5 executive compensation, and related-party transactions. Because these filings are treated as public records, they gave non-shareholders, including the public and the press, visibility into ANC financial information that is not filed with the SEC. The new rule HB 126 changes how the 500-shareholder test is measured. Now, the asset test is removed, and the shareholder count is based on how many shareholders the corporation originally enrolled when it was formed under the Alaska Native Claims Settlement Act (ANCSA), not how many it has today. As shares have passed down through families over the decades, some Village Corporations that started with fewer than 500 shareholders now have more than 500 recordholders. Under the old current-count test, when those corporations had crossed the threshold, they had to file. Under the new original-enrollment test, they do not. Who is affected Village Corporations that originally enrolled fewer than 500 shareholders are the main beneficiaries. They no longer have to file proxy and annual report materials with the Division or follow the Division’s proxy regulations at 3 AAC 08.305 through .365. Two groups must continue to file as before: all twelve ANCSA Regional Corporations, each of which enrolled more than 500 shareholders at creation, and all Village Corporations that originally enrolled 500 or more shareholders. As reported by the Alaska Beacon, when the bill was under consideration, the Division identified 59 corporations then filing, expected at least seven village corporations to become exempt, and was reviewing roughly 30 more. 2. Practical Analysis HB 126 reduces a real compliance burden for smaller Village Corporations, which now need not spend time and money on State filings. In coming years, the exempt Village Corporations may experience benefits associated with less public disclosure and less regulation. But at the same time, less public disclosure carries trade-offs. Benchmarking will become harder Publicly-filed proxy statements and annual reports have long served as a reference set. Shareholders, corporations, advisors, and counsel use them to compare governance practices, compensation, and financial results across similarly-situated ANCs. Since fewer of these materials will be filed publicly, there will be fewer comparable documents available, which will make benchmarking and market-checking more difficult for like-sized ANCs over time. Executive compensation transparency may be reduced The Division’s proxy rules require disclosure of the compensation of ANC’s top five most highly compensated individuals (3 AAC 08.345(b)(2)), related-party transactions above $20,000 (3 AAC 08.345(b)(3)), and audited financial statements and management’s discussion and analysis (3 AAC 08.365). When a corporation is no longer required to file these disclosures publicly, it becomes harder for shareholders and others to obtain the information, to understand how compensation is set for their corporate leadership, and how it compares across corporations of similar size and complexity. Transparency may matter more as ANCs grow Some ANCs have grown into large, complex enterprises with substantial revenue and many subsidiaries, even with fewer than 500 shareholders. For an ANC with a broad and dispersed shareholder base, public materials can be an important way for shareholders and other stakeholders to understand governance, compensation, and performance across ANCs. Reduced disclosure may carry more practical weight in those settings than for a small corporation whose shareholders are closely connected to the business. The ANCSA annual report obligation continues It is important not to overstate what HB 126 does. HB 126 changes the state filing proxy requirements. It does not remove the separate obligation under ANCSA itself. That obligation comes from ANCSA at 43 U.S.C. Sec. 1625(c), which requires a Native Corporation that would otherwise be subject to the Securities Exchange Act of 1934 to prepare and transmit to its shareholders an annual report containing substantially the information a company subject to that Act would include. Similarly, ANCs that solicit proxies for an annual meeting are still required to furnish shareholders with those proxy materials under general Alaska corporate law. However, ANCs are now no longer required to transmit proxy statements to the State. ANCs’ reporting obligations to their shareholders are unaffected by HB 126. Any corporation newly exempt from state filing still owes its shareholders a detailed annual report and a proxy statement, even though that report is no longer routed through the State and made public. Reinstatement of dissolved Village Corporations Separately, HB 126 amends AS 10.06.960(k) to remove the prior deadline (previously December 31, 2020) for reinstating an involuntarily dissolved Native Village Corporation. A dissolved Village Corporation may now apply to be reinstated under AS 10.06.633(e) at any time. Reinstatement still runs through the commissioner under AS 10.06.633(e). In general, that means the ANC must apply, cure the neglect or delinquency that led to dissolution, and pay the amounts owed, and the corporation’s name must be available or be changed to one that is. Once reinstated, the corporation and its shareholders are restored to the rights, privileges, liabilities, and obligations they would have had as if the dissolution had never occurred, and corporate and shareholder actions taken during the dissolution are treated as valid. If the previously-used corporate name is no longer available, the board alone may amend the articles to adopt a new name (without the necessity for shareholder approval). 3. Frequently Asked Questions What does HB 126 do? It changes how Alaska measures the 500-shareholder test that decides which ANCs must file proxy and annual report materials with the state. It removes the asset test, and it counts shareholders based on original enrollment rather than the current rolls. It also removes the deadline for reinstating an involuntarily dissolved Native Village Corporation. Which ANCs are affected? Village Corporations that originally enrolled fewer than 500 shareholders, because they may no longer need to file with the Division. Regional Corporations and Village Corporations that originally enrolled 500 or more shareholders must continue to file as before. Does HB 126 eliminate all reporting obligations? No. It changes the state filing requirement under AS 45.55.139, but it does not remove the separate ANCSA obligation (43 U.S.C. Sec. 1625(c)) to provide shareholders with an annual report, and general corporate law still calls for a proxy statement when the ANC solicits proxies. Corporations that remain subject to state filing requirements must also continue to comply with the Division's rules. We think we are now exempt. What should our ANC board and management consider? Confirm your ANC’s original enrollment number and whether your corporation falls below the new threshold. Watch for communications from the State on this topic as they proceed with their research. If your ANC is now exempt, decide how your corporation will meet its continuing ANCSA obligation to shareholders, review proxy and annual meeting materials and timelines, and consider what to communicate to shareholders about any change in how they will receive information. It is worth documenting the basis for any exemption. What should ANC shareholders watch for? Shareholders should watch for how and when they will continue to receive annual report and proxy statement information directly from their ANC, since some material that used to be available through the State’s online website will no longer be publicly filed. If something is unclear, shareholders can ask their ANC how it intends to meet its ANCSA reporting obligations. How Dorsey Can Help HB 126 lightens the State filing load for smaller Village Corporations, but it also raises practical questions: confirming who is exempt, meeting continuing ANCSA obligations to shareholders, keeping proxy and annual meeting processes on track, and maintaining benchmarking when public materials become less available. These are exactly the kinds of judgment calls that benefit from early planning. Dorsey’s attorneys work closely with Alaska Native Corporations and related stakeholders. If you have questions about HB 126, ANC governance, proxy filings, annual reports, disclosure obligations, or shareholder communications, please contact your Dorsey attorney, including the authors of this eUpdate.

Insights

State Affordability Infrastructure Districts (SAIDs) — A Financing Tool for Taiwanese Investment in Arizona Science and Technology Parks

If you have developed a facility inside one of Taiwan's science or technology parks, you are accustomed to the one-stop-shop of government planning the park and delivering the roads, water, power, and other infrastructure before your building is even constructed. In the United States, including Arizona, land development generally does not work that way. In Arizona, the cost of infrastructure such as water, sewer, stormwater, roads, power, and the digital backbone, typically falls on the private landowner and is incurred up front before operations generate revenue to offset that cost. For a company entering the Arizona market, this is often the largest and earliest capital burden of the entire project. Arizona recently created a tool that provides a more cost-effective way for landowners and developer to finance some of that infrastructure. House Bill 2999, signed into law June 2026 and codified at Chapter 40 of Title 48 of the Arizona Revised Statutes, establishes the creation of a State Affordability Infrastructure District (SAID). How a SAID Works Landowners are now able to use a SAID to finance public infrastructure such as water, sewer, stormwater, roads, parking, lighting, communications, rail sidings and signalization, and similar improvements, through tax-exempt bonds. The bonds are repaid over up to 30 years and secured solely by the property within the SAID. No city, county, or state credit is pledged, and no obligation falls on other taxpayers, and therefore no city, county, or state approval other than from the Arizona Finance Authority (AFA). In effect, a SAID lets you spread the cost of horizontal infrastructure over the life of the asset instead of funding it entirely at the outset. And tax-exempt bonds often offer a lower interest rate than taxable or other types of financing. How a SAID is Formed A SAID is formed upon the filing of a petition with the AFA. The petition must include the finance plan, general plan, estimated costs, maximum tax rate, appraisal, bond counsel certificate, consultant list, petitioner experience, legal description, title report, and other materials. While the landowner is required to provide notice to the local governing jurisdiction, local governing jurisdiction does not have the right to approve or deny. The petition is reviewed administratively by the AFA through a standards-based process. For an inbound investor without long-standing local relationships, an objective, criteria-driven process is a meaningful advantage to the overt political process associated with other financing districts in Arizona. Formation requirements. A SAID requires consent from 100% of landowners within the proposed district; public infrastructure costs must exceed $5 million (easily met at any real scale); the district property must all be in the same county and need not be contiguous provided that noncontiguous property is located within five miles of the district's other property; and the board is initially appointed by the forming owners of the SAID district, later transitioning to election as ownership diversifies. Actual bond issuance requires an election of the SAID property owners. Ownership and corporate structure. Consent rights and board seats run with title. If you hold the Arizona land through a U.S. blocker beneath your Taiwan parent, the standard model for Taiwanese/Arizona real estate and operating investment, the U.S. property-holding entity, rather than it’s corporate parent, is the landowner of record for the district. Before formation, our Dorsey team will confirm that you have the proper corporate structure and board mechanics to be compliant.  Board composition has no citizenship or residency requirement. This is a common concern for foreign investors, and the statute answers it cleanly. Under A.R.S. § 48-7004, a director must either hold fee title to real property in the district or be an individual designated or appointed by a fee-title owner. Corporations, partnerships, and other business entities are expressly permitted to be those owners, to vote as owners, and to designate an individual to serve. There is no requirement that a director be a U.S. citizen or resident. So your U.S. property-holding entity, as landowner of record, can appoint whichever of your principals you choose, including a Taiwan-based individual, as the three-member board.  Power infrastructure limitation. The enacted definition of "public infrastructure" in A.R.S. § 48-7001 does not include electrical power generation or transmission. The reference to electrical facilities appears only as components of lighting and traffic-control systems, and the Legislature removed broader energy infrastructure from the definition during the Senate amendments. A SAID will likely not finance the high-load power infrastructure required for semiconductor fabrication, data storage, or heavy manufacturing.  Water infrastructure within a current utility CC&N. Where water, sewer, or wastewater facilities fall within a regulated utility's certificated service territory, the SAID cannot build or own them without the utility's written consent and must convey them to the utility on completion. Entitlements and zoning: The determination of entitlements, zoning, and other land use permitting, as well as construction permitting for a technology or manufacturing facilities remain with the local jurisdiction and run on a separate track. Our Dorsey team will help you coordinate the financing and entitlement timelines together. Our Dorsey team works regularly with Taiwanese and other Asia-Pacific companies entering the Arizona market. If a SAID fits your project, we can structure it for your cross-border ownership.