1. 800. 973.1177
VIEW POINT
Firms Invest In Security Divisions [by Chris Mahon] Navigating through the post-9/11 ocean of laws and regulations can be difficult. Just ask Tiger Woods, who tried to dock his yacht Privacy in San Juan, Puerto Rico, on October 14 during his honeymoon. But because he and his new wife, Swedish model Elin Nordegren, did not follow a new protocol requiring a four-day arrival notice, Coast Guard and Immigration officials detained the honeymooners for more than three hours after escorting the boat to port. Woods’ company, which owns the boat, can also be assessed up to $32,500 in fees.
up the homeland security practice.
affect our clients,” Mr. Rector said. “We real-
them weave their way through the complex
“It’s both a goldmine and a landmine,” Mr.
practice groups.”
maze of homeland security measures. And
Pavlick said. “From a contractor’s side,
law firms eager to meet the demand are
you’ve got the potential to sell your services
Piper Rudnick recently published a guide-
forming special divisions focused on home-
to the government. The other side is there
book for the Association of Corporate Coun-
land security.
are lots of regulations on things like shipping
sel that deals with legal affairs on homeland
issues and restrictions on drugs. That’s kind
security. Corporate responsibility, homeland
Based in Washington, DC, Venable LLP was
of the landmine and we need to prepare our
security law and policy, and contracting with
among the first law firms to respond to the
clients for this.”
the Department of Homeland Security are all
Companies seeking to avoid such gaffes
ized it was going to have a broad effect in all
increasingly are turning to lawyers to help
topics covered in the guidebook.
new legal climate by creating a homeland security practice in October 2002.
Mr. Pavlick said he enjoys working in the homeland security practice because it is
Homeland security is a multidimensional
John Pavlick, a partner at Venable and co-
such a unique area. “You can’t say this is
problem, Mr. Rector said. “The federal gov-
head of its homeland security practice said,
like anti-trust law or like product liability. It
ernment said, ‘This is different than national
“We started the practice because it was a
encompasses insurance, corporate liability
security.’ The federal government is partly
logical progression. We represented people
issues, privacy issues, intellectual property,
responsible, but state and local governments
doing business in the homeland security
obligations for financial institutions, and so
are also responsible since they’ve got the
area.”
on. It’s a challenge.”
first responders.”
Since September 11, 2001, the federal gov-
Two years into the practice, the firm recently
But not all attorneys see homeland security
ernment has passed dozens of laws relating
released a 17-chapter homeland security
as a groundbreaking new area. Some say it is
to homeland security, such as the U.S.A.
book to help guide companies through the
merely a typical reaction to new government
PATRIOT Act and Homeland Security Act.
new laws. The book, titled the “Homeland
regulations.
Most notably, it established the Department
Security Deskbook: Private Sector Impacts
of Homeland Security. The department is
of the War Against Terrorism,” examines the
David Godwin, a partner at San Francisco
responsible for coordinating national security
new regulations as they pertain to busi-
law firm Carroll, Burdick & McDonough LLP,
efforts among many different government
ness. The chapter on business liability, for
likens firms’ reactions to new homeland
agencies, such as the Coast Guard. Com-
example, details the obligations companies
security laws to other legislation such as
plicating the matter further, both state and
have to shareholders and customers under
the Sarbanes-Oxley Act of 2002, which made
local governments have enacted their own
the new laws.
significant changes to corporate governance regulation, among other things.
laws and regulations. Venable is not alone. Piper Rudnick LLP is
“You’ve got shipping companies, transporta-
Because the new laws affect such a broad
another firm that established a homeland se-
array of industries, Venable has set up the
curity practice. Rich Rector is a partner there
tion companies, electronics, everything,” Mr.
practice by pulling in experts from other
and part of its homeland security task force.
Godwin said. “Just about every industry is
practices. Attorneys from practices such as
affected. Naturally, (firms) are going to go in
litigation, intellectual property, transporta-
“After 9/11, we - like everyone - knew that
tion, and banking and financial services make
the world had changed and that it would
PAGE 1
and say, ‘we’ll advise you on how to comply.’”
continued on back