2. In optics, focus occurs where light passing through a lens converges as much
as possible to present a clear picture at the right point and time. Each focus also
has a depth of field, a spatial area in which things are seen clearly. Better depth
of field means that focus is deeper, extending clarity to a broader range of
subjects in the picture.
So it is in business. Depth without focus doesn’t yield a successful picture. Think
pre-bankruptcy General Motors, with dozens of similar models spread across
a host of brand platforms. Focus without depth is too limiting. Think Polaroid’s
instant photography, great for a market segment as long as it lasted. But, focus
with depth is powerful. Think Apple’s simple focus on intuitive, usable design
elements carefully applied to distinct product segments.
For the last several years, the outward subject of our firm’s strategic plan has
been client-centered focus. Our clients’ legal needs and issues are the lens
Clarity + Depth = Vision through which we focus our attention to find and present solutions as clearly
and efficiently as possible. We do so with a strong depth of field across various
areas of expertise. And we do our best to bolster client focus with a low-friction,
no-distraction culture of internal goodwill, collaborative purpose and supportive
accountability that we believe sets us apart from most other large law firms.
The downturn of the past few years has reduced the margin of error for all
businesses, including law firms, revealing what is really important. For us, our
continued success has turned the lens on the extraordinary quality and loyalty of
our clients, the power of professional focus to find solutions to client needs, and
the continuing rewards of community and charitable engagement. These things
are all illustrated in this report with snapshots from 2011.
If you are one of our current clients, thank you very much. We look forward to
continued service to the best of our abilities. If you are not our current client, we
hope these examples will illustrate the type of deep, crisp client-centered focus
I have described. Please consider giving us an opportunity to make your 2012
legal picture better.
Mark D. Hinderks Managing Partner
Stinson Morrison Hecker LLP 1
3. 2011 Annual Report
1
Letter from
4
Division
26
Pro Bono
28
Diversity
29
Green
30
Community
32
Attorney
Managing Highlights Initiatives & Firm
Partner Recognitions
Stinson Morrison Hecker LLP 3
4. Division highlights
Small Business Lending
B anking & Financial S erv ices Bankruptc y &
creditor S’ rights (cont.)
Bank purchases/sales Assisted
Fund Helped bank banks and bank holding companies
in the negotiation of 21 purchases
US Protect, Inc. Served as
Chapter 7 trustee in the US
holding companies sell or sales. Protect, Inc. case, which involved a
federal corruption investigation and
upwards of $65 million Failed bank resolution Represented
six buyers in a successful bid to Darrell
adversary proceedings filed against
the government, and resulted in
in preferred stock to the acquire failed banks from the FDIC in
the failed bank resolution process.
Clark
Washington, D.C.
total recovery for creditors in excess
of $20 million. The company,
4
U.S. Treasury under the which provided security guard
Small Business Lending # SNL Financial Rankings According
to SNL Financial’s 2011 U.S. M&A
Legal Adviser Rankings, Stinson
force protection and emergency
preparedness services to federal
government agencies and federal
Fund program. ranked #4 in branch deals among bank
and thrift legal advisors, and ranked
Indemnity action
contractors, ceased operations after
the secured lender refused to fund
#13 based on the number of deals a payroll. The bankruptcy became
(bank acquisitions).
Successfully settled more complex when the principals
were indicted and later convicted
Bob
Raising capital Assisted bank
holding companies in raising a multi-million dollar of federal corruption. The firm’s
experience in government contracts
Monroe
Kansas City
approximately $75 million in capital.
indemnity action for was instrumental in obtaining
payment from the government,
Coffeyville Resources allowing all employees to receive
paychecks, benefits and retirement
against J. Aron, a contributions.
Goldman Sachs Case dismissed Successful trial of
contested confirmation hearing for
affiliate, within 30 a secured creditor client involving
a debtor who attempted to cure
days after filing the
Jeff Ekbom Phoenix default and reinstate a real estate
loan on a large apartment complex
indemnity claims.
in Wichita. The Bankruptcy Court
for the U.S. District of Kansas
Bankruptcy & creditorS ’ rights
Alan rejected the debtor’s Chapter 11
Reorganize and restructure
Meda plan, resulting in the dismissal of
Phoenix the case and the appointment of a
Represented Danny’s Family Companies and 15
receiver in state court.
related entities in its Chapter 11 bankruptcy case in
the Bankruptcy Court for the U.S. District of Arizona.
Successfully confirmed Danny’s Family Companies’ plan Relief order Obtained an order for relief from stay in
of reorganization that restructured more than $75 million a bankruptcy proceeding that will permit the secured
of company debt, with three separate bank creditors creditor to proceed with a non-judicial foreclosure on the
that are owed $68 million. The confirmed plan also Sheraton St. Louis City Center Hotel and Suites located in
restructured about $150 million in debt owed personally downtown St. Louis.
by the owner of the companies. Danny’s employs nearly
1,000 workers and has 13 full-service retail locations Nationwide settlement Arranged a nationwide settlement
throughout Arizona that provide car care and maintenance for a client with the Department of Justice Executive Office
services as well as auto enhancements. for U.S. Trustees regarding “unauthorized practice of law”
issues in bankruptcy courts around the country.
4 2 0 1 1 Annual Report S tt ii n s o n M o rr rr ii s o n H e c k e rr L L P
S nson Mo son Hecke LLP 5
5. Division highlights
Significant transactional USA TODAY Collaborated with
C orporate
Inergy Propane, LLC Lead counsel USA TODAY to analyze employment Patrick
Respeliers
activity Advised clients in for Inergy Propane, LLC in connection contracts and collateral income
with its acquisition of Liberty Propane, arrangements for NCAA college Kansas City
connection with corporate L.P. for $223 million and in connection coaches and athletic directors. Portions
with its purchase of Papco, LLC for of the data collected and analyzed for
finance transactions $14 million. this project are published annually in
print and online, and serve as the seminal
source for numerous reports and articles
involving approximately prepared by USA TODAY as well as
other print, online and broadcast media.
$20 billion in value during Inergy Midstream, LLC Represented
2011, including mergers Inergy Midstream, LLC in acquiring the
Seneca Lake natural gas storage facility
and acquisitions, public Vicki Westerhaus Kansas City
in upstate New York from New York
State Electric & Gas Corporation for
and private securities Garmin Served as lead U.S. securities
$65 million.
M&A leader
offerings, private equity counsel in Garmin’s redomestication
from the Cayman Islands to Switzerland.
Missouri coalition Representing a
Missouri statewide coalition opposing Serving as corporate
and venture capital Zave Networks Advised Zave
a repeal of the state income tax.
finance counsel to
transactions, securitization
International joint venture Advised
Networks in connection with its Series
C financing and its subsequent sale to
a national sales representation company more than 35 public
transactions and other
in the structure and formation of five
Google. The sale to Google came on
the heels of Google’s announcement
new businesses to expand its core U.S.
services as well as three international
companies.
financing transactions. to bring its ultra high-speed Google
Fiber network to Zave’s home base of
joint ventures designed to import non-
perishable food products into Asia.
Mergers and acquisitions Nationally recognized
Kansas City, Kan. A
dvised clients in connection N
ationally recognized by
American Optometric Association with a number of cross-border SNL Financial during 2010
Commercial Mortgage Backed Securities DeBruce Companies Advised transactions in addition and 2011 for its MA work,
General counsel for the American
Represented many of the nation’s largest DeBruce companies in connection to domestic mergers and ranking in the top 20 in
Optometric Association, providing day-
servicers of commercial mortgage loans in 17 with a transaction in which DeBruce acquisitions and private various industry sectors.
to-day legal, operational and
CMBS securitizations, including the issuance became a wholly owned subsidiary of equity/venture capital
governance advice to AOA, a nonprofit
of more than $16 billion of CMBS. Gavilon, LLC. transactions.
tax-exempt entity. A highly respected
Venture capital financings Advised Kansas counsel for Logan’s national organization, AOA represents
venture capital funds and strategic investors Roadhouse, Inc. with respect to its approximately 36,000 doctors of
in connection with venture capital financings issuance of $355 million of senior optometry, optometric educators,
totaling more than $620 million in 2011. secured second lien notes due in 2017. optometry students, and para optometric
assistants and technicians.
6 2 0 1 1 Annual Report S tt ii n s o n M o rr rr ii s o n H e c k e rr L L P
S nson Mo son Hecke LLP 7
5
6. Division highlights
C orporate (cont. )
Raising a Glass
Northwest expansion Represented
one of the largest U.S. manufacturers
to Growth
and distributors of sign supply products Stinson represented Quality Beers
in several transactions, expanding the of Omaha, LLC in its acquisition of
company’s footprint into the Northwest. Quality Brands of Omaha, Inc. The
acquisition made our client one of
Corizon Retained by Corizon, a the largest beverage distributors
Bob provider of correctional health care in the Midwest, and one of the
Kmiecik solutions, to represent its interests in country’s top 50 family-owned
Omaha the Missouri legislature. distributorships.
Great Range Capital, LLC Lead A team of attorneys from Stinson’s
counsel to Great Range Capital, LLC in Omaha and Kansas City offices
Heartland Automotive connection with the formation of Great
Range Capital Fund, L.P. and its related
represented Quality Beers
throughout the six-month deal.
Assisted Heartland private placement of limited partnership
interests.
Stinson’s representation involved
the acquisition and a lending
Automotive in acquiring facility that includes a syndicated
term loan, a line of credit and a
B
S E R I E S
Entertainment Properties Trust
more than 50 new
secured real estate loan.
Advised Entertainment Properties Trust
in its redemption of 3.2 million shares “This deal required teamwork
stores. The transactions of outstanding Series B preferred stock
valued at more than $80 million.
and expertise in numerous
practice areas,” said Allen Blair,
exceeded more than lead attorney and co-chair of
Stinson’s Real Estate Division.
$20 million in total value. “We have represented this client
for many years and it is great to
see a business grow like it has.
This acquisition brought the next
generation of the Gillick family into
the ownership and management.”
Quality Beers of Omaha, LLC is a
subsidiary of Gillick Enterprises,
Mark Schraier St. Louis Inc., a family holding company
that previously owned the Lincoln
Whistleblower Investigation Response Team SchoolTube, Inc. Served as lead Budweiser distributorship and
Launched a Whistleblower and Investigation Response counsel to SchoolTube, Inc. in now owns the Omaha branch. It
Team, a practice group focused on assisting companies connection with its Series A financing assumed the trade name of Quality
with government compliance, national and international valued at $3 million. Brands of Omaha and continues to
investigations, employee responder training, SEC and be a supplier for Anheuser-Busch
board reporting, and litigation. Lead counsel to an early-stage Companies, Inc. and other brands.
medical device company in preferred The Gillick family operates in
stock and convertible debenture Lincoln under the name of Double
offerings totaling more than $5 million. Eagle Beverage.
Allen Blair
Kansas City
8 2 0 1 1 Annual Report Stinson Morrison Hecker LLP 9
7. Division highlights
Energy counsel Western Chemical Pumps Assisted
E nergy En v ironmental
Western Chemical Pumps in response
Carl Icahn Associates Providing
Serving as energy
to whistleblower reports about the
advice to Carl Icahn Associates on illegal burial of hazardous materials.
regulatory issues in connection with
regulatory counsel
In conjunction with the Missouri
energy industry investments, mergers Department of Natural Resources,
and transactions. Stinson filed a conducted a preliminary investigation
to Large Public successful application that enabled
Icahn Associates to acquire a controlling
that utilized ground-penetrating
radar, as well as individual interviews
Power Council, a interest in Dynegy Corporation. The
application was initially filed in support
including the whistleblower. Following
this, the state agency performed one
trade association of a hostile tender offer valued at $630
million and approved by the Federal
additional on-site investigation and
closed its files.
that represents the Energy Regulatory Commission (FERC)
following a merger agreement. American Laboratories Defended
25 largest state and City of South Daytona Represented
American Laboratories in an EPA
Clean Air Act penalty action for alleged
Edison Electric Institute
municipal utilities the City of South Daytona, Fla., in an
$8 million “stranded generation costs”
hazardous air pollutant violations and air
permit violations.
Serving as Edison Electric
in the nation. dispute regarding the formation of
a new municipal electric utility. In a Solar farm Representing clients in the Institute’s regulatory
landmark ruling, FERC agreed that the
city should not owe stranded costs
negotiation and drafting of operative
agreements (such as letters of intent, counsel on issues related
Parthy
Evans
since it will continue to purchase
wholesale power from the regional
precedent, development, offtake,
interconnection, lease, power purchase, to telecommunications and
Kansas City
utility. and operation and maintenance
agreements) for renewable energy smart grid.
projects, including a Missouri solar farm
and various biofuel projects. These
have involved landfill gas and methane Titan International Inc.
extraction from wastewater treatment Defending two Titan International Inc. companies in a $72
facilities and dairy farms. million lawsuit regarding two Superfund sites.
Colorado Springs Utilities On Cost recovery action Prosecuting a $139 million cost
behalf of Colorado Springs Utilities, recovery action against the United States on behalf of
Stacy Stotts Kansas City secured FERC approval to purchase Kansas State University, the City of Salina, the Salina
all outstanding equity interest in the Airport Authority and Unified School District 305 regarding
Kansas City Board of Public Utilities The Doe Run Company Serving as Front Range Power Corporation for a contaminated military site.
Representing the Kansas City Board of Public The Doe Run Company’s lead counsel approximately $200 million.
Utilities with three generation plants in regulatory to resolve violations alleged by the Interline Brands, Inc. Representing Interline Brands, Inc.,
matters arising under the Clean Air Act, including Environmental Protection Agency (EPA) Flint Hills Resources Alaska, LLC a national distributor of maintenance, repair and operations
Title V permit issuance, acid rain permit renewal, and the State of Missouri pursuant to Represented Flint Hills Resources products, regarding whether its 58 distribution centers
applicability determinations for New Source the Clean Air Act, the Clean Water Alaska, LLC in an investigation of a across the U.S. are in violation of Emergency Planning
Performance Standards (NSPS) and Maximum Act, the Resource Conservation crude oil pipeline rate increase filed by and Community Right-to-Know Act requirements under
Achievable Control Technology (MACT) rules, and Recovery Act, the Emergency the Golden Valley Electric Association CERCLA and similar state requirements.
reporting and record keeping. Planning and Right-To-Know Act, and before the Regulatory Commission
the Comprehensive Environmental of Alaska. A favorable settlement was
Response Compensation and Liability negotiated prior to litigation.
Act (CERCLA), involving 10 operating
facilities in Missouri.
10 2 0 1 1 Annual Report Stinson Morrison Hecker LLP 11
8. Division highlights
David
E nergy En v ironmental
( cont. )
Keeping the
D’Alessandro Lights On
Washington, D.C. Insurance coverage action
Defending an insurance coverage Under the Clean Air Act, new EPA
action for environmental claims arising regulations have the potential to
from the operation of approximately 35 dramatically affect the reliability and
concentrated hog farms. Plaintiffs are cost of electricity in Kansas.
seeking coverage of more than $100
Stinson attorneys are representing
million in nuisance and negligence
the Kansas Utilities, a coalition of
claims brought by several hundred
four Kansas electric generation
neighboring property owners and
companies, in a challenge to EPA’s
environmental enforcement actions
Cross State Air Pollution Rule at
brought by the EPA and the State of
the EPA and the federal appeals
Missouri.
court in Washington, D.C. In
December, the court granted a stay
Arizona Public
City of Hastings, Nebraska
of the rule, pending further judicial
Representing the City of Hastings,
review.
Nebraska and Hastings Utilities
Service Company in connection with numerous
environmental sites and a related $55
The issues raised include the
Represented Arizona
EPA’s failure to follow the Clean Air
million environmental coverage lawsuit Act and Administrative Procedures
against 13 insurance companies. Our Act’s requirements for notice and
Public Service representation includes successfully
negotiating a settlement with the
comment, lack of consideration
by the agency regarding the rule’s
Company in a FERC EPA for a fraction of a $32 million
CERCLA dispute regarding a former
effects on electric reliability, and
insufficient time to comply if the
investigation of manufactured gas plant. rule is finalized.
a natural gas pipeline Coal-fired electric generating
utility Representing a state-wide,
“With this rule threatening to make
sweeping changes to the manner
rate increase filed by public coal-fired electric generating
utility with three generation plants
and cost of providing electricity, it
could ultimately lead to blackouts,
the El Paso Natural in permit matters arising under the
Clean Air Act, including Title V permit
job loss and higher utility bills,”
said Dennis Lane, lead litigator on
Gas Company. The issuance, acid rain permit renewal, and this matter and Stinson partner. “A
applicability determinations for NSPS successful resolution is important
presiding judge issued and MACT, and in permitting and for all industry and business
cooling water intake matters under the sectors as well as consumers.”
a decision adopting our
Clean Water Act.
client’s position.
12 2 0 1 1 Annual Report Stinson Morrison Hecker LLP 13
#
9. Division highlights
Animal research Launching
Intellectual Property
Technology
a Macy’s
Serving as counsel Iconic brands Manage and maintain
thousands of patents and trademarks
Thanksgiving
for the University of in the U.S. and abroad for a wide
range of clients, from small startup
Day Float
Missouri in the sale of technology companies to some of the
most established and iconic brands in
The Zhu-niverse float made its
debut in the 85th Annual Macy’s
its animal research and the world, including Rawlings Sporting
Goods Company, Inc., Cepia LLC’s
Thanksgiving Day Parade. Stinson
partner Phil Kaplan represented
diagnostic laboratory ZhuZhu Pets® and Cobalt Boats, LLC. Cepia LLC, the creator of ZhuZhu
Pets® and other toys, in contract
business to IDEXX Patents and trademarks Filed negotiations with Macy’s Parade
500
approximately 100 new U.S. and Entertainment Group to secure a
Laboratories, Inc. for foreign patent applications and 400
trademark applications in 2011, and
spot in the 2011 parade.
Negotiations for the float’s creation
$43 million. provided a wide range of monitoring
and enforcement activities for clients and participation in the parade
took place a year in advance.
in this area.
In addition to the parade float,
General counsel Serving as outside the multi-award winning toy
general counsel and patent counsel phenomenon was transformed into
for the KU Center for Technology a video game and two feature-
Commercialization. length films on DVD. The company
also introduced several new toy
concepts in 2011.
Tim Feathers
“It’s fun to work with successful
Kansas City
entrepreneurs like CEO Russ
Hornsby and his team at Cepia,
especially in these tough economic
times,” Kaplan said. “These are the
types of clients and challenges I
love.”
Stinson has represented Cepia
University of Kansas Represented the Applebee’s and IHOP Representing for several years on structure
University of Kansas on collaborative public/ dineEquity, Inc. and its brands planning, contract negotiations,
private research agreements, licensing and Applebee’s and IHOP in connection patent applications, trademarks
sponsored research agreements. with protecting their trademarks and and copyrights, as well as
other intellectual property around the negotiation of its licensing
Exegy Incorporated Handled numerous globe, including prosecution (filing agreements.
technology leasing transactions for and maintenance) and enforcement
Exegy Incorporated in the market data space. (litigation). dineEquity is the largest
full-service restaurant company in the
Technology startups Representing a variety of world with more than 3,300 locations.
technology startups including Tibi.tv,
a finalist in the Google Gigabit Challenge. Cloud computing Negotiated
cloud computing and data center
agreements for Quality Technology
Services and Appistry, Inc.
14 2 0 1 1 Annual Report Stinson Morrison Hecker LLP 15
10. Division highlights
Lonnie
Williams
L abor employ ment Misclassification defense Defended
a Missouri nonprofit corporation in a Whistleblower lawsuit
Defended a home lender in
AutoNation, Inc. Representing putative collective and class action
Phoenix AutoNation, Inc. and various individual lawsuit alleging violation of state and
defendants in defense of an alleged
a whistleblower wrongful
federal overtime law by misclassifying
violation of First Amendment rights. caregivers as exempt. The putative
Plaintiff’s harassing actions were limited
termination lawsuit and obtained
class representative voluntarily
by court order and then his claims were dismissed the action prior to filing a
later dismissed with prejudice on a motion to certify a class.
motion to dismiss for legal deficiencies
of the claims. The Ninth Circuit also Chubb Group of Insurance
a defense jury verdict. Retained
rejected the plaintiff’s appeal finding it
to be frivolous.
Companies Representation of Chubb
insureds including local companies and
for appeal and re-trial after the
Service Corporation Civil rights Defending an American
large, national employers in a variety of
matters from charges of discrimination
original adverse jury verdict.
International
direct broadcast satellite service to single and multi-plaintiff lawsuits.
provider in two related breach of The insureds we defend cover a wide
Defending SCI, a
contract and civil rights claims. range of industries, including health
care, education, manufacturing and
Racial discrimination Obtained
cemetery, cremation
professional services.
summary judgment for a local sports
franchise and a major U.S. airline in International airline manufacturer
and funeral home cases alleging racial discrimination
when hiring.
Successfully defended the world’s
largest manufacturer of general aviation
conglomerate, in airplanes for more than 10 years
against employment administrative
FLSA and wage/hour charges, litigation matters and appeals,
including summary judgment in a race
claims in various discrimination and retaliation case in
federal district court.
Rochelle Stringer
Huhtamaki
Sara Welch
Stinson
Amy Peterson
Huhtamaki
multistate and federal Huhtamaki Continued representation of long-time client
jurisdictions. After three Stephanie Scheck Wichita
Huhtamaki, one of the world’s largest packing companies.
Current representation includes the defense of a nationwide
years of litigation, the Health care staffing agency
collective action under the Fair Labor Standards Act (FLSA)
in the U.S. District Court for the District of Kansas.
class action that was
7
Represented a health care staffing
agency in prosecution of a trade
conditionally certified
secret and employee embezzlement
lawsuit, and in defense of a trademark Tom Brous Kansas City
$ Retirement plans Counseled and advised public and
privately held corporations, partnerships and LLCs on the
creation and operation of retirement plans. These included
was decertified and
infringement case. Obtained favorable pension, profit sharing, 401(K) and employee stock
settlement of both employee and Employee benefits Advised clients on ownership plans (ESOPs) with total net assets exceeding
billion
trademark infringement lawsuits.
the only remaining
benefits issues in mergers, acquisitions $7 billion.
and corporate transactions.
Federal and state agency matters
aspects of the case are
Physician visas Arranged visa status for numerous
Represented clients before the Labor law Advised clients on labor international physicians to practice in designated Health
Internal Revenue Service (IRS), law issues, including maintaining a
individual claims.
Profession Shortage Areas.
U.S. Department of Labor, Pension union-free workplace, handling union
Benefit Guaranty Corporation and negotiations, arbitrations, petitions and
corresponding state agencies. unfair labor practice charges before the
National Labor Relations Board.
16 2 0 1 1 Annual Report Stinson Morrison Hecker LLP 17
5
11. Division highlights
Playtex Products State of South Dakota Represented
L itigation
the State of South Dakota against John
Playtex Products, LLC Munich
Successfully
claims that it had not adequately
Plaintiffs alleged that Playtex failed funded its public schools nor educated St. Louis
to make adequate disclosures about
represented Playtex
its students. The Supreme Court of
certain baby bottles and sippy the State of South Dakota upheld
cups. Stinson’s attorneys convinced a trial court’s 2009 opinion, which
Products, LLC in the Judicial Panel on Multidistrict
Litigation to consolidate the cases
found in the state’s favor on all counts
and rejected plaintiffs’ claims that
more than 40 putative in the District Court for the Western
District of Missouri. Following scores of
the existing funding formula was
unconstitutional. The court also held
consumer class actions depositions and hundreds of pages of
briefing, Playtex convinced the court to
that plaintiffs had failed to link spending
and achievement.
filed in more than 10 deny plaintiffs’ request to certify multi-
state classes. The court also denied Cortez Pipeline Company Obtained
state and federal courts. requests to certify a nationwide issues
class and a statewide Missouri class.
favorable settlement for Cortez Pipeline
Company, co-defendants with Kinder
City of St. Louis Represented the City of St. Louis and the Land Clearance for
Redevelopment Authority in a dispute with Pinnacle Entertainment. Plaintiffs alleged
Morgan CO2 Company, L.P. and Mobil the city breached a $500 million redevelopment agreement relating to Pinnacle’s
Electronic Fund Transfer Act Producing Texas and New Mexico, development and operation of the Lumiere Place Casino and hotel properties. After
class action lawsuits Obtained Inc., in a class action arbitration the trial court denied Pinnacle’s motion for preliminary injunction, Pinnacle appealed
favorable results for several banks
Heather over an alleged underpayment of to the Eighth Circuit Court of Appeals but later voluntarily dismissed its appeal.
named as defendants in class action
Woodson royalties and overriding royalties in
lawsuits for alleged violations of the which the plaintiff class challenged SEC investigation Represented a public technology company in directors and
Kansas City
Electronic Fund Transfer Act. the deductions of certain pipeline officers (DO) liability insurance issues resulting from an SEC investigation and
expenses. The arbitration panel ruled derivative action based on the CEO’s alleged personal use of corporate assets.
that those charges were proper. When
the plaintiff class again challenged the Angelica Textile Services, Inc. Successfully represented Angelica Textile
deductions, Stinson attorneys showed Services, Inc. in a bid protest involving matters of first impression on a Department
that not only was there no excess of Veterans Affairs contract. The department appealed the decision to the U.S.
revenue, there was actually a shortfall. Court of Appeals for the Federal Circuit, but withdrew its appeal after oral argument.
The arbitration panel-approved
settlement permitted our client to Breach of contract Successfully represented a bank in a breach of contract
recover an additional $90 million. lawsuit in which the bank committed to selling property in a “commercially
Jeff Goulder Phoenix reasonable manner.” After a four-day bench trial, the judged ruled that the bank’s
American Samoa Power Authority sale was fair and complied with the agreement. The case centered on whether
PostRock Midcontinent Production, LLC Legends Bank Successfully Representing American Samoa Power a bank has an obligation to hold repossessed property until market conditions
Representing PostRock Midcontinent Production, represented Legends Bank in a state Authority in an insurance dispute improve.
LLC in defense of a royalty owner class action court lawsuit challenging Missouri’s arising from a series of earthquakes
over the deduction of post-production expenses campaign finance law by asserting a and catastrophic tsunami waves in University of Central Missouri Representing the University of Central Missouri
involving approximately 2,500 oil and gas leases Hammerschmidt challenge. After a trial September 2009. ASPA suffered more over the PGA’s denial of accreditation of the school’s professional golf management
in the southeast Kansas Cherokee Basin. During court victory, the Missouri Supreme than $50 million in damages. ASPA program, which included overcoming three defense-filed motions to dismiss the
a lengthy mediation process, Stinson’s attorneys Court issued a unanimous decision was insured for much of that damage, lawsuit. The case is scheduled to be tried before a jury at the end of 2012.
negotiated a settlement that resolved the claims for striking most of the bill because it but the insurers have paid substantially
past “deductions” and established a methodology violated a requirement of the Missouri less than half the claim. BeautyFirst franchisee Prevailed in a week-long arbitration for a BeautyFirst
for calculating future royalties. The Kansas federal Constitution that legislation not franchisee where the franchisor sought to terminate the franchise agreements and
court approved the settlement agreement. be amended to change its original Missouri Attorney General enforce a non-compete agreement. Our client received a monetary judgment and a
purpose. Persuaded the Missouri Attorney declaration that the non-compete was unenforceable and that the franchisee could
General to take action against a de-identify and compete with the franchisor.
charitable entity that had used more
than $5 million contrary to the donor’s
specified intent.
18 2 0 1 1 Annual Report Stinson Morrison Hecker LLP 19
11
12. Division highlights
Sandy
L itigation (cont. )
Preserving
Wunderlich DO liability insurer Won a $1.375 the Brand
St. Louis million judgment for a major DO
liability insurer, who provided one of its Stinson has long represented
Hostess Brands Inc., one of largest
insureds with funding for the defense
and best-known providers of fresh-
and settlement of an intellectual
baked bread and sweet goods in
property-related lawsuit. When another
the U.S. The matters handled by
DO insurer refused to contribute to the firm are as diverse as Hostess’
that funding, Stinson attorneys sued line of iconic brands, which
seeking equitable contribution, and our includes Twinkies®, Ding Dongs®,
client prevailed. The court awarded the Donnettes®, Wonder® Bread and
entire amount of requested damages. Nature’s Pride®.
In 2011, Stinson, on behalf of
Hostess, successfully defended
Multi-million dollar claims appeals of a $100 million
trademark licensing dispute, as
Representing a DO liability well as an Employee Retirement
Income Security Act (ERISA) claim
insurer in a lawsuit against affecting many Hostess employees.
The firm also secured an arbitration
another insurer, seeking
award in a multi-million dollar
dispute with a joint venture partner.
Scott Hecht Kansas City
contribution for the defense BayFirst Solutions LLC Successfully
Most recently, Hostess turned
to Stinson to serve as general
and settlement of multi-million represented BayFirst Solutions LLC in a
bid protest case involving a $15 million
corporate and conflicts counsel in
its pending Chapter 11 bankruptcy
dollar claims against a failed
reorganization case, which aims to
government security contract. The U.S. reduce debt, secure new capital
Court of Federal Claims nullified the investments for improvement
bank’s directors and officers. U.S. Department of State contract,
which was awarded to a different
in production capabilities, and
restructure its labor agreements
contractor. and union pension plans.
“It’s been a great pleasure to
McBride Son Homes Inc. Successfully defended Insurance coverage for
represent Hostess,” said Paul
McBride Son Homes Inc. against a claim from a construction defect Represented a
Hoffmann, lead attorney to Hostess
disgruntled home buyer seeking more than $1.5 company involved in the development
and Stinson partner. “While their
million in damages for alleged construction defects and construction of water and challenges are not unique to a
and resulting emotional distress. Following a two-day groundwater systems in securing mature business, we are acutely
arbitration, the arbitrator ruled in McBride’s favor, insurance coverage for a multi-million aware that we are protecting
finding that the claimant failed to present sufficient dollar construction defect dispute. and preserving Hostess’ beloved
evidence to prove that McBride fraudulently induced, products that have treated America
deceived or negligently represented the claimant into Lexapro lawsuits Retained to defend for almost a century.”
signing a contract and purchasing a home. a major pharmaceutical manufacturer
Hostess’s annual sales top $2.5
in more than 45 individual lawsuits
billion and its approximately 19,000
pending in Cole County, Mo., claiming
employees operate 36 bakeries
adverse health effects from Lexapro,
and 570 bakery retail outlets
an antidepressant. nationwide, and run approximately
5,500 delivery routes from 565
distribution centers.
20 2 0 1 1 Annual Report Stinson Morrison Hecker LLP 21
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