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Court Skeptical of Maine Tobacco Law
Court Watch | 2007/11/28 11:03
Cast in the good-guy role of stopping Internet cigarette sales to children, Maine's deputy attorney general got roughed up Wednesday by several Supreme Court justices who suggested the law is not on his side.

Paul Stern argued that his state, like many others, is trying to keep tobacco from underage smokers and that cannot be done without the help of companies that deliver cigarettes bought over the Internet.

Congress has encouraged the states "to deal with the significant public health problem of youth access to tobacco," Stern told the court, arguing for Maine's right to regulate shipment of cigarettes bought online.

Shipping industry associations that are challenging the law object to delivery requirements that they say only the federal government can impose.

Federal law bars states from regulating prices, routes or services of shipping companies and Maine's law "certainly relates to the service" of the shipping companies, Chief Justice John Roberts said.

"It talks about what carriers have to do," Roberts added.

Recent research says children as young as age 11 were successful more than 90 percent of the time in buying cigarettes over the Internet. At last count, there were 772 Internet cigarette vendors, a nearly nine-fold increase in seven years, according to Kurt Ribisl, an associate professor at the University of North Carolina's school of public health who has spent the past eight years studying the issue.

In 2002, at the start of the boom in Internet cigarette sites, a study found that Internet vendors sold 400 million packs of cigarettes a year, 2 percent of the cigarettes consumed in the United States and a figure that anti-smoking groups say is growing.

The case also involves the issue of uncollected state taxes. One study found that three-quarters of Internet tobacco sellers say they will not report cigarette sales to tax collection officials. A private research firm found states lose as much as $1.4 billion annually in uncollected tobacco taxes through Internet sales.

The lost revenue is a concern to Maine and about 40 other states that have tried to prohibit or severely restrict the direct delivery of tobacco products to consumers.

The differences in the state laws are a burden to business, several justices suggested.

"What if every state enacted a slightly different law relating to this and a slightly different law relating to every other product that they might want to restrict for health or safety reasons?" asked Justice Samuel Alito.

Justice Stephen Breyer said it would be a "nightmare" if every state were to pass a different law on what it takes to prove that a shipping company knowingly delivered an unlicensed product.

To Justice David Souter, the federal ban on state regulation of interstate shipping was intended "to end the economic effects of state patchwork transportation regulation."

If Maine's tobacco delivery law is not tossed out, "there will be different delivery laws in states across the country, and that patchwork will eliminate the efficiency and the cost savings that was Congress' intent," said lawyer Beth Brinkmann, arguing for the transportation associations.

Maine says delivery companies must check packages against a list from the state of known unlicensed tobacco retailers. The shipping companies must deliver only to the person to whom the package is addressed and a recipient under 27 must present identification before the package can be delivered.

Facing legal trouble in New York state in 2005, United Parcel Service Inc. agreed to stop shipping cigarettes to individual consumers in all 50 states. The company says it did so because of the varying state laws. FedEx and DHL have signed similar agreements.

Two lower federal courts have rejected Maine's law. The Supreme Court is expected to rule in the case by next June.

The case is Rowe, v. New Hampshire Motor Transport Association, 06-457.



Senate's Dodd to offer bankruptcy reform bill
Bankruptcy | 2007/11/28 10:05
A senior lawmaker said on Wednesday that he planned to introduce a bankruptcy reform bill that would give new relief to individuals overwhelmed by mortgage, medical and student loan debt.

Sen. Christopher Dodd, a presidential candidate and chairman of the Senate Banking Committee, said: "Most often, individuals are forced into bankruptcy by a devastating medical event or the loss of a job."

The Connecticut Democrat said his bill would allow judges to consider the individual circumstances of debtors in bankruptcy cases so that families and children are protected.

The bill would ensure that medical debts can always be discharged in bankruptcy and that mortgages can be restructured to help borrowers stay in their homes, he said.

Student loans would also be dischargeable under the bill, and child support and alimony payments would be settled first.

"Our bankruptcy laws should not punish these vulnerable members of our society, but instead should help them get back on their feet while protecting them and their families from added suffering at the hands of creditors," Dodd said.

The bill would seek to undo some aspects of bankruptcy reform passed in 2005, which Dodd said he opposed at the time.

Some of Dodd's Senate colleagues and lawmakers in the House of Representatives have sponsored their own versions of bankruptcy reform, but no single bill has won widespread support.

Last month, the House Judiciary Committee debated but could not pass a far-reaching measure that would let bankruptcy judges erase mortgage debt.



Penn Prof Pleads Guilty to Killing Wife
Criminal Law | 2007/11/28 08:07
An Ivy League professor pleaded guilty Monday to manslaughter for beating his wife to death with a chin-up bar as she wrapped Christmas presents last year, telling a judge he "just lost it" during an argument. Rafael Robb, a tenured economics professor at the University of Pennsylvania, faces a likely prison sentence of 4 1/2 to seven years for the Dec. 22 bludgeoning of his wife, Ellen. She was planning to move out the next month and seek a divorce after a rocky 16-year marriage.

Robb, 57, testified Monday that he argued with his wife about a trip she and their daughter were taking over the holiday break. He did not want the 12-year-old to miss any school.

"We started a discussion about that. The discussion was tense," Robb said. "We were both anxious about it. We both got angry. At one point, Ellen pushed me. ... I just lost it."

Robb said he picked up the chin-up bar, which was lying nearby, and struck his wife with it repeatedly.

He later threw the weapon in a trash bin in Philadelphia and tried to make their home look as if it had been burglarized. Detectives were suspicious from the start, though, because the scene was poorly staged and nothing was missing.

The 49-year-old homemaker was found dead in the kitchen, near the partially wrapped presents.

Robb's trial had been scheduled to start Monday. He could have faced a life sentence if convicted of first-degree murder, but prosecutors felt there were no guarantees given the circumstantial evidence.

The professor pleaded guilty to one count of voluntary manslaughter, which is defined as an intentional, unlawful killing, with provocation, in the heat of passion.

Montgomery County prosecutor Bruce Castor called the case "a classic heat-of-passion killing."

Robb adored his daughter Olivia and feared he would see less of her in a divorce, both sides agreed.

University spokesman Ron Ozio said a Penn official spoke to Robb's lawyer after Monday's hearing and asked for his resignation.

Ellen Robb's brothers, Art Gregory of Haddonfield, N.J., and Gary Gregory of Boston, said their sister suffered verbal abuse throughout the marriage, eroding her self-esteem.

"What kept them there was their undying love for their daughter Olivia," said Art Gregory, who is now raising the girl. "Both of them put Olivia first, beyond anything else, unfortunately to a very tragic end."

Rafael Robb apologized to Olivia, who was not in court, and said he was "very remorseful."

"I know she liked her mother. ... And now she doesn't have a mother," he said, stifling tears.

Robb, who has been held without bail, talked to his daughter by phone over the weekend and admitted that he was responsible for her mother's death. They have not seen each other since his arrest in January.

Sentencing will likely take place in a few months. Guidelines call for a prison term of 4 1/2 to seven years, but Castor said the statute allows for anything from probation to 10 to 20 years.



Judge removed after jailing entire court room
Breaking Legal News | 2007/11/28 07:53
A judge who jailed 46 people who were in his courtroom when a cell phone call interrupted proceedings was removed from the bench Tuesday by a state commission. Niagara Falls City Court Judge Robert Restaino "snapped" and "engaged in what can only be described as two hours of inexplicable madness" during the March 2005 session, Raoul Felder, chairman of the state Commission on Judicial Conduct, wrote in the decision to remove Restaino from the $113,900-per-year post.

A phone rang while Restaino was hearing the cases of domestic violence offenders who had been ordered to appear weekly to update the judge on the progress of their counseling. A sign in the courthouse warns that cell phones and pagers must be turned off.

"Everyone is going to jail," Restaino said. "Every single person is going to jail in this courtroom unless I get that instrument now. If anybody believes I'm kidding, ask some of the folks that have been here for a while. You are all going."

When no one came forward, Restaino ordered the group into custody, and they were taken to jail, where they were searched and packed into crowded cells. Fourteen people who could not post bail were shackled and bused to another jail.

Restaino ordered them released later that afternoon.

Restaino told the state panel he had been under stress in his personal life.

His attorney, Terrence Connors, said Restaino would appeal.



Delaware River Dispute at Supreme Court
Court Watch | 2007/11/28 06:56
Delaware and New Jersey squared off in the Supreme Court Tuesday over which state gets to decide whether a liquefied natural gas terminal gets built on the Delaware River.

The dispute centers on a proposed LNG terminal that energy giant BP wants to build on the Jersey side of the river. New Jersey officials approved the project, which could bring more than 1,300 construction jobs.

Delaware officials, however, have refused to authorize the construction of a 2,000-foot-long pier, which would be built on the part of the river bottom that belongs to Delaware. Without the pier, the project could not go forward.

New Jersey concedes that Delaware owns the land, but says a century-old agreement allows each state to control piers on its side of the river.

A pier on the New Jersey side that can't stretch onto Delaware territory to reach the main shipping channel is worthless, said H. Bartow Farr, who is representing New Jersey. "That's where the ships are," Farr said.

But David Frederick, representing Delaware, told the justices that decisions on what to build on Delaware land belong to Delaware. "Boundaries matter," Frederick said.

On a practical level, he said, Delaware has only twice in 160 years denied permission to build a pier on the Jersey side of the river and both instances involved LNG facilities.

Up to 150 ships a year would dock at the proposed pier, which would be directly across the river from Claymont, Del. Delaware says the proposal raises safety fears because an estimated 22,000 residents living near the river's main shipping channel would be at risk in case of a major accident. BP said the facility would be able to deliver up to 1.2 billion cubic feet of natural gas a day to the Mid-Atlantic region.

The justices puzzled over the states' authority.

What if a murder occurred on a wharf on the Jersey side that sits on Delaware land, Chief Justice John Roberts wondered. "Is it prosecuted in Delaware or New Jersey?" Roberts asked. New Jersey, Farr said.

Justice David Souter asked Frederick whether Delaware could pass a law saying no more piers could be built on the Jersey side of the river. "It depends," Frederick replied, although he later said such a measure probably would not be upheld.

A court-appointed special master concluded earlier this year that Delaware has the authority to block the pier.

Justice Stephen Breyer is not taking part in the case. He owns $15,000 to $50,000 in BP stock, according to his most recent financial disclosure.

His absence could present a complication if his eight colleagues divide 4 to 4. In most Supreme Court cases, a tie means that a lower court ruling is upheld.

But disputes between states are initially decided by the Supreme Court, not lower courts. What would happen in the event of a tie vote is unclear.



Supreme Court to Hear Maine Internet Case
Law Center | 2007/11/28 05:57
The Supreme Court will consider today whether federal law bars Maine from imposing handling requirements on delivery companies, a case that could undercut similar laws in other states. When Maine officials tried to crack down on Internet tobacco sales to children, the outcry from shipping companies that bring cigarettes to consumers' homes was deafening. The companies must comply with onerous delivery and labeling instructions to ensure that buyers are at least 18 years old, the companies complained.

The Maine attorney general's office argues that the state must protect the health of its children and that Internet and telephone sales of tobacco products have become a serious problem.

Two lower courts ruled against Maine. But if Maine officials prevail in the Supreme Court, "any number of states will impose different standards on any number of different products that they deem unhealthy or unsafe," say the three New England transportation company associations that filed suit.

Intricate national delivery networks have been able to speed $6 trillion worth of packages to their destinations every year because Congress mandated that cargo carriers not be subject to an inefficient patchwork of state laws, the shipping companies argue.

Like other states, Maine has imposed steep increases in cigarette taxes. So smokers nationwide increasingly are going online for bargains, and underage smokers are among them, according to anti-smoking groups.

A 2002 study concluded that Internet vendors sold 400 million packs of cigarettes annually, 2 percent of the cigarettes consumed in the United States, a figure that anti-smoking groups say is growing.

The number of Internet cigarette vendors has risen sharply from 88 in January 2000 to 772 in January 2006, says Kurt Ribisl, an associate professor at the University of North Carolina's school of public health who has spent the past eight years studying the issue.

"This is big business for some of the companies," said Dennis Eckhart, head of the tobacco litigation and enforcement section of the California attorney general's office. "Similar laws in several other states definitely would be at risk if the Supreme Court does not rule in favor of the state of Maine."

Ribisl says the number of Internet Web sites selling tobacco products has leveled off in recent years. At least 40 states now prohibit or severely restrict the direct delivery to consumers of tobacco products purchased from Internet vendors, state attorneys general said in a filing supporting Maine in the case. In addition, credit card companies and several major shipping companies have agreed to cease payments and cease shipping for Internet cigarette sales.

The delivery companies say they are burdened by a patchwork of widely varying state requirements.

Under the Maine statute, delivery companies must check packages against a list from the state attorney general of known unlicensed tobacco retailers. They must deliver only to the person to whom the package is addressed and a recipient under age 27 must present identification.

"Worthy motives are not enough" to uphold Maine's law, a federal judge decided in 2005.

If there is to be regulation in this area, it will have to come from the federal government, the judge ruled.



Qantas plead guilty to price-fixing
Business | 2007/11/28 05:06
Australian airline Qantas Airways has agreed to plead guilty to fixing prices in international air cargo shipments and pay a 61-million-dollar fine, the US Justice Department said Tuesday.

Between June 2000 and February 2006, Qantas engaged in a conspiracy to eliminate competition by fixing the rates for shipments of cargo to and from the US and elsewhere, according to the charges filed Tuesday against the carrier, the Justice Department said in a statement.

"The shipment of consumer products by air transportation is critical to our global economy. Our investigation into this important industry will continue, and we will aggressively pursue those who engage in criminal conduct that harms American consumers," said Thomas Barnett, assistant attorney general in charge of the department's antitrust division.

During the time period covered by the felony charge, Qantas was the largest carrier of cargo between the United States and Australia and earned more than 600 million dollars from its cargo flights to and from the US, the department noted.

The department said that Qantas has agreed to cooperate with its ongoing investigation under the plea agreement, which is subject to court approval.

In August, British Airways and Korean Air Lines pleaded guilty to illegally fixing prices on international passenger and cargo flights and were sentenced to pay separate 300-million-dollar fines.



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