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Bank of America wins in $1 billion-plus California lawsuit
Corporate Governance | 2009/06/02 05:50

California's highest court on Monday ruled that Bank of America Corp need not pay a potential $1 billion or more to customers who claimed the bank illegally raided Social Security benefits to collect fees.

Plaintiffs in the class-action case had accused the largest U.S. bank of dipping into their Social Security direct deposit accounts between 1994 and 2003 to collect fees for overdrafts and other debts.

A San Francisco trial court in 2004 ordered the Charlotte, North Carolina bank to pay $284.4 million of damages, plus up to $1,000 to each customer who suffered substantial emotional or economic harm. The case was filed on behalf of more than 1.1 million customers, many of whom were elderly or disabled.

In 1974, the California Supreme Court had ruled that a bank may not satisfy a credit card debt by deducting fees owed from a separate checking account containing deposits that "derived from unemployment and disability benefits."

But in Monday's unanimous ruling, the court distinguished the current case by saying the transactions at issue occurred "within a single account" rather than in multiple accounts.



Extend or end? Minn. Senate race up to high court
Law Center | 2009/06/02 03:51
In an hour of rapid-fire questions over Minnesota's disputed Senate election, the state's highest court focused on whether vote-counting flaws alleged by Republican Norm Coleman were severe enough to deny Democrat Al Franken the win.


Barely a minute into oral arguments, justices challenged Coleman's attorneys on the adequacy of evidence they presented in an election trial and the legality of their suggested remedy: that more ballots be counted even if some absentee voters didn't fully comply with the law.

"It's possible there are statutory violations which do not rise to the level of constitutional violation," Justice Alan Page said, alluding to a threshold appeals courts often turn to before reversing a lower-court decision.

The state Supreme Court justices can confirm Franken as the victor or reopen the count as Coleman wants.

Franken hopes the court orders that he immediately receive the election certificate required to take office. Franken is the potential 60th vote for Democrats in the Senate, though two of those are independents.

The court's involvement is the latest but maybe not the final stop. If Coleman loses, he could file a new case in federal court or petition for review by the U.S. Supreme Court, which isn't certain to take the case. If Franken doesn't like the result, he could ask the Senate itself to weigh in.



Gay marriage debate complicates SF mayor's future
Breaking Legal News | 2009/06/01 08:08
San Francisco Mayor Gavin Newsom has been linked to gay marriage ever since he directed city clerks to issue marriage licenses to same-sex couples in 2004. Now he's running for governor and trying to broaden his appeal, but fate appears to be working against him.


The state Supreme Court's decision to uphold California's constitutional ban on gay marriage — and the prospect that an impassioned initiative to overturn it could share the ballot with next year's governor's race — holds consequences for candidates from both parties, but especially for the one most deeply associated with the issue.

The intensity of a statewide vote on same-sex marriage could make it difficult for Newsom to connect with centrist voters, millions of whom voted no on the issue last year.

"It certainly underlines Gavin Newsom's previous advocacy for same-sex marriage. I think that might be a two-edged sword for him," said Mark DiCamillo, director of the San Francisco-based Field Poll.

Other possible Democratic contenders including Attorney General Jerry Brown, Los Angeles Mayor Antonio Villaraigosa and Lt. Gov. John Garamendi also support same-sex marriage. So does one of the three leading Republican hopefuls, former U.S. Rep. Tom Campbell, but former eBay chief executive Meg Whitman and state Insurance Commissioner Steve Poizner oppose it.



Top court to hear business-method patent case
Law Center | 2009/06/01 08:07

The Supreme Court said on Monday it would hear the Bilski patent case, which would tell high tech and software companies how far they could go in patenting software, financial strategies and other abstract processes.

An appeals court which specializes in patent cases had ruled in October that the Patent Office was correct in refusing to allow Bernard Bilski and Rand Warsaw's company Weatherwise to patent a method for hedging against energy cost changes.

That court said the hedging method could not be patented because it was not tied to a machine and did not result in a transformation.

But this seemingly narrow case has implications for any company that hopes to patent a business method. One of the best known examples of a business method patent is Amazon.com Inc's one-click process to buy goods on the Internet.



GM workers taking in bankruptcy, its effects
Bankruptcy | 2009/06/01 08:06
For General Motors Corp. workers and others across the nation, reaction to the automaker's historic bankruptcy filing Monday and the effect on their plants and lives ranged from resignation to fear.


Markis Coleman, 30, a GM employee at a plant in Orion Township, Mich., north of Detroit, said shortly before the bankruptcy was announced that there is little he can do even as much needs to be done.

"I'm going with the flow," the 10-year company veteran said Monday morning. "It's all in their hands. I'm going to let them do it. But they need to change things, though. They have to change."

The once-mighty corporate giant whose brands were household names and plants the lifeblood of many U.S. communities filed its Chapter 11 petition in New York Monday. It marks the fourth-largest bankruptcy in U.S. history and the largest for an industrial company.

GM also revealed Monday that it will permanently close nine more plants and idle three others.

The closing of a metal stamping plant near Mansfield, Ohio, will force the city to cut jobs because it will lose one of its biggest employers and water customers. The plant's roughly 1,200 workers make parts for many of GM's slow-selling trucks and sport utility vehicles.

"This is so devastating," said Mansfield Mayor Donald Culliver. "We're all going through budgetary problems and this just adds fuel to the fire."

Small businesses that supply the plant also will suffer, he said. "That's what is going to hurt us even more than losing GM," Culliver said.

Rickey Holmes, 28, a Xerox contract worker for GM at its Renaissance Center headquarters in Detroit, agreed that the turbulence spreads well beyond those who collect a check directly from the automaker.



Minn. high court hears Senate case arguments
Political and Legal | 2009/06/01 05:06
Republican Norm Coleman is asking the Minnesota Supreme Court to toss out a lower-court ruling that gave Democrat Al Franken a victory in the state's U.S. Senate race.


Coleman attorney Joe Friedberg argued before the high court Monday that counties were inconsistent in the way they decided whether absentee ballots were filled out correctly.

Franken's attorney gets a chance to present his side after Friedberg finishes.

Coleman wants justices to instruct a trial court to open 4,400 rejected absentee ballots.

Franken, potentially a critical 60th Senate vote for Democrats, hopes the court sweeps aside the appeal and is demanding that he get the election certificate required to take office.

There's no telling when Minnesota's highest court will act.



US Supreme Court Rules For CSX In Worker Injury Case
Breaking Legal News | 2009/06/01 03:08
The U.S. Supreme Court on Monday threw out a $5 million jury verdict awarded to a former CSX Transportation Inc. (CSX) railroad worker who alleged that he had been negligently exposed to toxic chemicals and asbestos on the job, which caused him to develop brain injuries and asbestosis, a lung disease.


Among other things, Tennessee railroad worker Thurston Hensley sought monetary damages for a fear of developing cancer in the future.

CSX argued that the instructions given to the jury were too friendly to Thurston. The company wanted jurors to be instructed that Thurston needed to demonstrate that his fear of cancer was genuine and serious.

The Supreme Court, in an unsigned opinion, said it was a "clear error" for the trial judge not to give the jury instructions CSX requested.

The high court sent the case back for new court proceedings.

 


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Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website, lawyer website templates and help you redesign your existing law firm site to secure your place in the internet.
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