Outside Counsel

Sponsored

  • Morning Docket: 04.03.17
    Morning Docket

    Morning Docket: 04.03.17

    * Remember Chris Sevier, the man who, in an effort to protest same-sex marriage, filed suit against Florida, Texas, and now Utah because he alleged he was denied the right to marry his computer? A federal judge has refused to dismiss his case because some of his wild claims ought to be heard in court — and not just for the judge’s entertainment. Surprisingly, this wasn’t an April Fools’ joke. [FOX 13 News]

    * “It is plausible that Trump’s direction to ‘get ’em out of here’ advocated the use of force. It was an order, an instruction, a command.’ President Trump once again has his bold language to blame for his lawyers’ inability to get a lawsuit dismissed. Because free speech isn’t a viable defense, a federal judge has refused to toss out allegations that Trump incited violence against protesters at one of his campaign rallies. [NBC News]

    * “[W]e do not intend to give any professional organizations special access to our nominees.” Breaking with tradition, the Trump administration has decided to forgo the American Bar Association’s pre-nomination assistance when it comes to evaluating and rubber-stamping candidates for the federal judiciary. We’ll have more on this later. [New York Times]

    * Facebook is requiring that women and ethnic minorities account for at least 33 percent of law firm teams working on its matters. In addition, those firms must “actively identify and create clear and measurable leadership opportunities for women and minorities” who represent the social networking giant. Love. ❤ [DealBook / New York Times]

    * The ABA may eliminate a requirement that full-time faculty teach at least half of all upper-level courses offered at their law schools. Hmm, if law professors worked half as much, then perhaps their salaries would decrease along with their work load and there would be less of an excuse to keep student tuition so absurdly high. [Inside Higher Ed]

  • Finance

    Why do VCs require legal opinions in venture deals?

    Most large venture deals require that the Company’s outside legal counsel issue a customary legal opinion, addressed to the investors in the financing, in order to give the investors comfort that the company’s legal affairs are in order. For companies that have been represented since formation by large regional or national counsel with venture capital experience, this requirement generally is not overly burdensome. However, where counsel has not represented the company since formation or is unfamiliar with VC deals, the legal opinion can become an expensive part of the process and a potential delay in the timing of the financing. Below is a short primer on why VCs require legal opinions and the process and cost typically required for a law firm to issue such an opinion.