Skip to main content

Maritime Law-Chasing Whistleblower Bounties

In August, I spoke to the North American Maritime Ministries Association on the topic of Legal Issues Affecting Seafarers and Ship Operators in Whistleblower Scenarios. You can read more about NAMMA here => NAMMA. Since this presentation, I have been asked to opine on other sorts of whistleblower scenarios. I recently noted that the Securities and Exchange Commission has just obtained a record $14 million whistleblower bounty for an in-house counsel whistleblower against his own company, which certainly may have some in-house counsel wondering if they should squeal on their clients. 

The Corporate Counsel magazine on October 14th cites a growing number of in-house counsel and compliance officers filing whistleblower-related claims against their own companies. I find this a disturbing trend, as these cases present a host of issues not present in an ordinary whistleblower claim, such as the plaintiff’s use of privileged communications, attorney work product, and confidential client information. In my view, an in-house counsel claim leaves a company particularly vulnerable. However, it would appear that states are starting to enact ethics opinions directly addressing the growing concern. 

Corporate Counsel reports that the New York County Lawyers’ Association issued an ethics opinion stating that New York in-house or outside corporate counsel cannot ethically collect whistleblower bounties for providing confidential information about their clients to the SEC. In addition, a U.S. Supreme Court case earlier this year made it harder to prove that an employee was retaliated against for whistleblowing. The ruling required a stronger showing of causation from the plaintiff.

However, I could not find any such ethics  opinions issued here in Florida. If you know of one, please let me know where I can find it.  
 
Given the current status of whistleblower law, there may appear to be a narrowing trend in the U.S. for whistleblower plaintiffs. However elsewhere, the whistleblowing concept is gaining broader ground. The Financial Times has reported that the United Kingdom, which enacted a new whistleblower law this year, is now considering whether to begin paying U.S.-style whistleblower bounties.
 
So for those of you overseas, you will need to watch what we do over here!
 
If you are interested in receiving a copy of my Powerpoint presentation to NAMMA (as it addresses some of these concepts) or are interested in contacting me, you may do by writing to me at mov@chaloslaw.com.

 

Comments

Post a Comment

Popular posts from this blog

Maritime Law--Florida's Arbitration Code Is Now Revised

Those of us that practice maritime law regularly must always be on the lookout for the contract that may contain an arbitration clause. Thus, any laws related to arbitration are important to those of us practicing in this sector.       The Florida legislature has revised the Florida Arbitration Code ("FAC") and named it the Revised Florida Arbitration Code (the " Revised Act"). Since 1967, the FAC had gone mostly unchanged. The Revised Act addresses concepts that were not addressed in the old law, such as the ability of arbitrators to issue provision remedies, challenges based on notice, consolidation of separate arbitration proceedings, required conflict disclosures by arbitrators, among other major changes. The Revised Act lays out a detailed framework for international arbitration conducted under Florida law and repeals sections of the FAC. The Revised Act spells out what experienced arbitrators knew the case law to be, but codifies it all in one pl...
4 comments
Read more

Maritime Law--Lozman Case Revisited in Miami?

In Hoefling v. City of Miami , Case no.: 14-12482 (11th Cir. Jan. 25, 2016), the U.S. Court of Appeals for the Eleventh Circuit revived almost all of Hoefling's claims. You ask, "Who is Hoefling?" Hoefling  lived on his sailboat Metis O moored off Dinner Key for nearly a decade—until the day he came home and it was gone. About three months earlier, an officer from the Miami Police Department's Marine Patrol Detail tagged Hoefling's vessel for lacking a sanitary device and a working anchor light. He had a deal to use the facilities at the nearby marina but quickly went out and reportedly bought what he needed to comply. Three months later while he was on a business trip, the City of Miami seized and destroyed his boat and all his belongings. As a result, he was homeless. He sued under § 1983, maritime law, and state law. He stated a claim under the Fourth Amendment for seizure and destruction without notice or cause and a “taking.”    At the ...
5 comments
Read more

Maritime Law--Novel Rule B Attachment Rejected by Eleventh Circuit

In World Wide Supply OU v. Quail Cruises Ship Management , Case No. 14-14838 (11th Cir. Sept. 30, 2015), the Eleventh Circuit Court of Appeals affirmed the district court’s order vacating an attachment of legal settlement funds.  At issue in this appeal was an attachment of property made pursuant to Supplemental Admiralty Rule B. This appeal had a complicated background, involving multiple lawsuits in federal district courts, Florida state court, and a Spanish bankruptcy court. The common denominator of these suits was Quail Cruises Ship Management, from which multiple parties, including participants in the appeal, tried to collect money that they believed Quail owed them. This is not surprising, as there have been numerous cases against Quail due to a failed cruise venture they operated. The money at issue arose from the legal settlement of a dispute over the purchase of a cruise ship featured on ABC Television Network’s long-running series, The Love Boat. The ...
5 comments
Read more