5th Circ. Vacates Sanctions Against Susman Atty

Law360, New York (September 14, 2010, 7:09 PM EDT) -- A federal appeals court has reversed sanctions on a Susman Godfrey LLP attorney for failing to disclose professional relationships during her representation of New Century Mortgage Corp. in an arbitration proceeding against Positive Software Solutions Inc. over infringement of telemarketing software.

A three-judge panel of the U.S. Court of Appeals for the Fifth Circuit found that the U.S. District Court for the Northern District of Texas lacked the inherent authority to impose sanctions for alleged misconduct during an arbitration proceeding. The Fifth Circuit noted, however, that...
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