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Court Stops NYC Suit Vs. Online Cigarette Vendor
Breaking Legal News | 2010/01/26 04:48
The Supreme Court has ruled against New York City in its effort to use federal racketeering law to sue Internet cigarette sellers for lost tax revenue.

By a 5-3 vote Monday, the court ended the city's lawsuit against Hemi Group, a New Mexico-based company that sells cigarettes online.

New York taxes the possession of cigarettes but finds it difficult to collect those taxes from Internet sales. The city says it loses millions of dollars in tax revenues from online sales.

Sellers like Hemi are not required to charge or collect the taxes, but they are supposed to provide information about their customers to states.

New York's lawsuit under the Racketeer Influenced and Corrupt Organizations Act accused Hemi of fraud for failing to provide the customer information.

The court said Monday that the city cannot use the racketeering law to collect tobacco taxes from Hemi.

Chief Justice John Roberts and Justices Samuel Alito, Ruth Bader Ginsburg, Antonin Scalia and Clarence Thomas formed the majority.

Justice Sonia Sotomayor did not take part in the case because it came from the federal appeals court in New York on which she served before her elevation to the high court.


Supreme Court Voids Campaign Spending Curbs
Political and Legal | 2010/01/22 09:09

A divided U.S. Supreme Court struck down decades-old restrictions on corporate campaign spending, reversing two of its precedents and freeing companies to conduct advertising campaigns that explicitly try to sway voters.

The 5-4 majority, invoking the Constitution's free-speech clause, said the government lacks a legitimate basis to restrict independent campaign expenditures by companies. The ruling went well beyond the circumstances in the case before the justices, a dispute over a documentary film attacking then-presidential candidate Hillary Clinton.

"When government seeks to use its full power, including the criminal law, to command where a person may get his or her information or what distrusted source he or she may not hear, it uses censorship to control thought," Justice Anthony Kennedy wrote for the majority. "This is unlawful. The First Amendment confirms the freedom to think for ourselves."

Companies, which had been barred since 1947 from using general-treasury dollars in support of or in opposition to a candidate, now can spend millions of dollars on their own campaign ads, potentially punishing or rewarding lawmakers for their votes on legislation. Labor unions, though they weren't directly at issue in the case, have been subject to the same restrictions and may also now expand their political spending.



California: Court Rejects Marijuana Limit
Court Watch | 2010/01/22 07:11
The State Supreme Court struck down a law that sought to limit the amount of marijuana a medical patient can legally possess. The court, in a unanimous decision, ruled that state lawmakers were wrong to change provisions of a voter-approved proposition in 1996 that allowed patients with a doctor’s recommendation to possess an unspecified amount of marijuana.

The Legislature mandated in 2003 that each patient could have a maximum of 8 ounces of dried marijuana. The Supreme Court said only voters could change amendments that they have added to the St


Pool maker Latham says court OKs bankruptcy plan
Bankruptcy | 2010/01/22 06:11

Latham International, which makes swimming pools and parts such as liners, steps and ladders, said on Friday that a bankruptcy court approved a debt restructuring plan that will put the company into the hands of its lendersate Constitution through the initiative process.

Latham said it expects to come out of bankruptcy during the next few days.

The Latham, New York, company filed for bankruptcy in December in Delaware with a so-called prearranged plan in place that had the backing of the lenders that will now own it, including Littlejohn & Co, a private equity firm in Greenwich, Connecticut.



Court Sides With Trojans in "USC" Logo Dispute
Patent Law | 2010/01/21 09:23

After further review, the U.S. Patent and Trademark review board's decision stands.

A federal appeals court rejected South Carolina's petition to use the letters "USC" on the Fighting Gamecocks baseball team's uniforms. The decision upholds the Patent and Trademark Office board's ruling regarding the University of Southern California's claim to the logo.

Scott Edelman, an attorney representing USC, -- the LA USC -- said the ruling protects the school's "primary athletic mark." He said the logo, used on team clothing and equipment, brings in significant revenue.

Nobody would confuse a Trojan for a Gamecock, but he said people might mistake South Carolina merchandise for Trojan merchandise if the garnet-and-black of South Carolina and the cardinal-and-gold of Southern California both carried the same "USC" logo.



Supreme Court Upholds Ala. Man's Death Penalty
Court Watch | 2010/01/21 09:20

The U.S. Supreme Court upheld the death sentence of an Alabama man who claimed his attorneys failed to present key evidence of his borderline mental retardation. The justices said the defense made a strategic decision, not a negligent omission.

Holly Wood shot and killed his ex-girlfriend as she slept in her Troy, Ala., home in 1993. Wood lost his appeal in state court, but won habeas relief in federal court. The district court criticized the defense for putting an inexperienced attorney in charge of the penalty phase. According to the federal judge, the state court's holdings constituted "an unreasonable application of federal law."

It ordered the state to either resentence Wood to life without parole or conduct a new sentencing hearing.The Supreme Court upheld the 11th Circuit's reversal, saying it wasn't "unreasonable" to conclude that Wood's attorneys had made a strategic decision not to introduce evidence of Wood's mental deficiencies.
   
"Most of the evidence Wood highlights ... speaks not to whether counsel made a strategic decision, but rather to whether counsel's judgment was reasonable - a question we do not reach," Justice Sonia Sotomayor wrote for the 7-2 majority.



Judge: Kilpatrick at fault, he must pay $320,000
Court Watch | 2010/01/21 04:23

The end was almost certainly worse than what Kwame Kilpatrick expected.

Grilled for six days on the witness stand -- his integrity questioned by prosecutors who said that if they couldn't send him to jail, they'd settle for $225,000 -- Kilpatrick's restitution hearing ended after four months Wednesday with a judge calling him a liar and demanding he cut a check for far more than even prosecutors expected.

"You have not been credible in this courtroom and you, again, have not been honest to the City of Detroit," Wayne County Circuit Judge David Groner told Kilpatrick, who sat stone-faced. "The court finds the defendant's conduct in this matter reprehensible."

Compounding the former mayor's woes was news that broke just as he arrived at court: His longtime friend and ex-mayoral aide, DeDan Milton, had been indicted on federal bribery and extortion charges, another indication the feds are tightening focus on Kilpatrick.



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