2011 Stinson Morrison Hecker Annual Report

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2011 Stinson Morrison Hecker Annual Report

  1. 1. FOCUSSTINSON MORRISON HECKER LLP 2011 ANNUAL REPORT
  2. 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 lensClarity + 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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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