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Circuit City files for bankruptcy protection
Bankruptcy | 2008/11/11 08:57
Circuit City Stores Inc., the nation's second-biggest electronics retailer, filed for bankruptcy protection on Monday but plans to stay open for business as the busy holiday season approaches.

It said it decided to file for bankruptcy protection because it was facing pressure from vendors who threatened to withhold products during the holiday shopping period. The company also said it cut 700 more jobs at its headquarters, after announcing a week ago that it would close 20 percent of its stores and lay off thousands of workers.

Circuit City filed under Chapter 11 of the bankruptcy code, which will allow it to hold off creditors and continue operations while it develops a reorganization plan. Its Canadian operations also filed for similar protection.

Doing so "should provide us with the opportunity to strengthen our balance sheet, create a more efficient expense structure and ultimately position the company to compete more effectively," James A. Marcum, vice chairman and acting president and chief executive, said in a statement.



Gay arts group sues Milwaukee for discrimination
Court Watch | 2008/11/11 03:58
A gay arts group has sued the city of Milwaukee in federal court for violating its free speech rights three years ago when officials shut down a musical revue featuring nudity.

The city temporarily shut down performances of "Naked Boys Singing!" in August 2005 while it considered the Milwaukee Gay Arts Center's application for a theater permit. The group later received a permit and reopened the show.

Larry Dupuis, legal director for the American Civil Liberties Union of Wisconsin, which is handling the case, said the city's enforcement seemed unusually zealous, even given the musical's content.

"I think the title made it kind of controversial," Dupuis said. "But of course, `The Full Monty' has nudity in it, and that doesn't get it threats to shut it down."

The lawsuit, filed Monday, says the city ordinance is unconstitutional because it gives officials "unbridled discretion" over when permits must be obtained and how applications will be handled. It also says the law could be used to restrict certain viewpoints.

Eileen Force, a spokeswoman for Mayor Tom Barrett, declined to comment on the lawsuit, and a call to the office of City Attorney Grant Langley rang unanswered Monday afternoon.

Dupuis said few, if any, other nonprofit theater groups have been required to get permits from the city.



Former Taiwanese president led to court in cuffs
International | 2008/11/11 03:56
Taiwan television stations have broadcast pictures of former President Chen Shui-bian being led from a prosecutor's office in handcuffs.

The stations report that Chen is being taken to Taipei district court, where prosecutors are seeking an arrest order from a judge.

There has been no official statement from prosecutors on the case.

Chen faced more than five hours of questioning Tuesday in connection with his role in an alleged money laundering scheme.

Taiwan media say that prosecutors have recommended the arrest of former President Chen Shui-bian on corruption charges.

All of the island's seven cable news stations say the decision came after Chen underwent more than five hours of questioning on his alleged role in a money laundering scheme.



Judge approves settlement in InfoGroup lawsuit
Venture Business News | 2008/11/11 01:59
A Delaware judge approved Friday a settlement in a shareholder lawsuit brought against database provider InfoGroup Inc. over abusive personal spending by founder Vinod Gupta.

The settlement approved by Chancellor William Chandler III calls for Gupta to reimburse $9 million to the company. Gupta also will step down as chief executive officer and receive a $10 million severance package.

The settlement includes a host of corporate governance changes, including the resignations of three directors and the establishment of an internal watchdog to prevent further abuses.

Gupta remains a 40 percent shareholder in Omaha, Neb.-based InfoGroup, which is the subject of a Securities and Exchange Commission investigation. But the settlement prohibits him from trying to wage a proxy contest before 2010 or trying to undo the corporate reforms being put in place before 2013.

A special litigation committee formed in response to the lawsuit confirmed many of the findings by the plaintiffs, who alleged that the company had paid Gupta millions of dollars for personal expenses including jet travel, homes, a yacht, and a collection of luxury automobiles that, as the judge wrote last year, "would leave James Bond green with envy."



Obama planning US trials for Guantanamo detainees
Political and Legal | 2008/11/10 10:40
President-elect Obama's advisers are quietly crafting a proposal to ship dozens, if not hundreds, of imprisoned terrorism suspects to the United States to face criminal trials, a plan that would make good on his promise to close the Guantanamo Bay prison but could require creation of a controversial new system of justice.

During his campaign, Obama described Guantanamo as a "sad chapter in American history" and has said generally that the U.S. legal system is equipped to handle the detainees. But he has offered few details on what he planned to do once the facility is closed.

Under plans being put together in Obama's camp, some detainees would be released and many others would be prosecuted in U.S. criminal courts.

A third group of detainees — the ones whose cases are most entangled in highly classified information — might have to go before a new court designed especially to handle sensitive national security cases, according to advisers and Democrats involved in the talks. Advisers participating directly in the planning spoke on condition of anonymity because the plans aren't final.

The move would be a sharp deviation from the Bush administration, which established military tribunals to prosecute detainees at the Navy base in Cuba and strongly opposes bringing prisoners to the United States. Obama's Republican challenger, John McCain, had also pledged to close Guantanamo. But McCain opposed criminal trials, saying the Bush administration's tribunals should continue on U.S. soil.

The plan being developed by Obama's team has been championed by legal scholars from both political parties. But it is almost certain to face opposition from Republicans who oppose bringing terrorism suspects to the U.S. and from Democrats who oppose creating a new court system with fewer rights for detainees.

Laurence Tribe, a Harvard law professor and Obama legal adviser, said discussions about plans for Guantanamo had been "theoretical" before the election but would quickly become very focused because closing the prison is a top priority. Bringing the detainees to the United States will be controversial, he said, but could be accomplished.

"I think the answer is going to be, they can be as securely guarded on U.S. soil as anywhere else," Tribe said. "We can't put people in a dungeon forever without processing whether they deserve to be there."

The tougher challenge will be allaying fears by Democrats who believe the Bush administration's military commissions were a farce and dislike the idea of giving detainees anything less than the full constitutional rights normally enjoyed by everyone on U.S. soil.

"There would be concern about establishing a completely new system," said Rep. Adam Schiff, D-Calif., a member of the House Judiciary Committee and former federal prosecutor who is aware of the discussions in the Obama camp. "And in the sense that establishing a regimen of detention that includes American citizens and foreign nationals that takes place on U.S. soil and departs from the criminal justice system — trying to establish that would be very difficult."

Obama has said the civilian and military court-martial systems provide "a framework for dealing with the terrorists," and Tribe said the administration would look to those venues before creating a new legal system. But discussions of what a new system would look like have already started.

"It would have to be some sort of hybrid that involves military commissions that actually administer justice rather than just serve as kangaroo courts," Tribe said. "It will have to both be and appear to be fundamentally fair in light of the circumstances. I think people are going to give an Obama administration the benefit of the doubt in that regard."

Though a hybrid court may be unpopular, other advisers and Democrats involved in the Guantanamo Bay discussions say Obama has few other options.

Prosecuting all detainees in federal courts raises a host of problems. Evidence gathered through military interrogation or from intelligence sources might be thrown out. Defendants would have the right to confront witnesses, meaning undercover CIA officers or terrorist turncoats might have to take the stand, jeopardizing their cover and revealing classified intelligence tactics.

In theory, Obama could try to transplant the Bush administration's military commission system from Guantanamo Bay to a U.S. prison. But Tribe said, and other advisers agreed, that was "a nonstarter." With lax evidence rules and intense secrecy, the military commissions have been criticized by human rights groups, defense attorneys and even some military prosecutors who quit the process in protest.



Ariz. boy accused in slayings to appear in court
Court Watch | 2008/11/10 10:39
An 8-year-old boy is due in court Monday to face two counts of premeditated murder in the shooting death of his father and a friend, a hearing on the same day mourners were to gather for a funeral.

Police say the boy, a third-grader, confessed to planning and carrying out the shooting deaths of his father, Vincent Romero, 29, and a co-worker who rented a room from him. The men were found dead inside Romero's home northeast of Phoenix on Wednesday.

Authorities had no motive for the shootings.

"That's what's puzzling to us," Police Chief Roy Melnick said Monday on NBC's "Today" show. "There's no record of any problems in school, no reported abuse."

Romero came from a family of hunters and wanted to make sure the boy wasn't afraid of guns, said the Very Rev. John Paul Sauter of St. Johns Catholic Church. He said the father taught his son how to use a rifle to kill prairie dogs.

Police say the boy used a .22-caliber rifle to kill his father and the other man, Timothy Romans, 39, of San Carlos.

St. Johns police are hoping a judge will agree to try the boy as an adult but admit it's unlikely.

The boy's attorney says police questioned his client without representation from a parent or attorney and didn't advise the child of his rights.

The killings took place in the St. Johns, a town of about 4,000 people some 170 miles northeast of Phoenix.

Romero was well-liked and people here are likely turn out in droves for his funeral.

"Everybody here is heart-broken," Melnick said. "We are a close-knit community. A lot of friends and neighbors have pulled together."



Court turns down appeal in sealed case
Breaking Legal News | 2008/11/10 10:39
The Supreme Court has turned aside a legal newspaper publisher's challenge to court decisions sealing an entire case from public view.

The justices did not comment Monday on their order denying the appeal of The New York Law Publishing Company. It had sought access to a case that involved a woman who claimed her employer fired her because she had an abortion.

The 3rd U.S. Circuit Court of Appeals in Philadelphia upheld a trial judge's decision to seal the case. The woman, identified only as Jane Doe in limited court filings that have been made public, has since settled the case with her employer. That may have affected the high court's decision.

The Reporters Committee for Freedom of the Press and 29 media organizations asked the justices to take the case.



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