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Final arguments heard in Libby trial
Law Center | 2007/02/20 09:15

Lawyers made their final arguments in the perjury trial of I. Lewis "Scooter" Libby Tuesday, with the defense arguing that Libby was a scapegoat for presidential aide Karl Rove's disclosures. In its final remarks, the prosecution argued that Libby was merely trying to a cover up a potentially illegal intelligence leak. In response, the defense said the government's witnesses were not credible and to accept the testimony of Meet the Press moderator Tim Russert as truth "would just be fundamentally unfair."

Libby's defense team rested last week, one week after the prosecution finished presenting its evidence against Libby. Also last week, Chicago Sun-Times columnist Robert Novak testified that Libby did not leak Plame's identity to him. It was Novak's July 2003 column that publicly outed Plame, thus igniting the CIA leak scandal. Libby is not charged with leaking Plame's identity, but instead faces perjury and obstruction of justice charges in connection with the investigation into the leak.



High Court Overturns $79 Million Tobacco Verdict
Breaking Legal News | 2007/02/20 09:11

The Supreme Court on Tuesday threw out a $79.5 million verdict against the Philip Morris tobacco company ruling that an Oregon court had acted improperly when it allowed jurors to use the award to punish the cigarette maker for jeopardizing the lives and health of smokers. In a 5-to-4 decision that marked the first major business ruling for the Court since the appointment of Chief Justice John G. Roberts Jr., the justices ruled that the Oregon court violated the Constitution's due process clause by awarding damages for general harm in a case brought by a single plaintiff. Roberts joined the majority opinion.

In the Oregon case, Mayola Williams, widow of Jesse Williams, a Portland janitor who died of lung cancer in 1996, sued Philip Morris, maker of Marlboros, the brand of cigarette her husband had smoked for 45 years. The jury awarded Williams $821,000, then added a $79.5 million punitive award. Philip Morris, which is now owned by Altria Group, had denied that its cigarettes were addictive, and lawyers for Williams' estate had told jurors to consider the damage done to other smokers in Oregon in their verdict.

In Tuesday's ruling, the justices countered that the Oregon court should not have allowed consideration of any harm done to smokers, except Williams.

Justice Stephen G. Breyer, writing for the majority, said the Constitution bars courts from using punitive awards to penalize companies for injuries they inflict upon others who are "essentially, strangers to the litigation."

Robert S. Peck, the Washington lawyer who represented Mayola Williams, told the Washington Post that the Supreme Court decision "slays a dragon that didn't exist," and predicted that further litigation in Oregon would "reaffirm" the jury's punitive verdict. Peck noted that contrary to the justices finding, the jury had based the award on Philip Morris' profitability and not on the number of victims harmed by smoking.

Exactly how the jury reached the award amount remains unclear and that uncertainty was a key factor in the decision of the high court to overturn the punitive award and send the case back to Oregon for further litigation.

Despite the court's refusal to use the case to set a firm limit on how much can be awarded in punitive damages, as some in the business community had hoped, Tuesdays ruling is being viewed as not only a victory for Philip Morris, but for corporations weary of what they view as run-away punitive awards in state courts.

The New York Times reports that in a note to investors, Christopher R. Growe, an analyst at A. G. Edwards and Sons hailed the ruling as "a positive," that "effectively limits the size of punitive damages in future cases."

Roberts and Bryan were joined in the majority opinion by Justices Anthony M. Kennedy, David H. Souter and Samuel A. Alito. Justices John Paul Stevens, Ruth Bader Ginsburg, Antonin Scalia and Clarence Thomas dissented.

Writing for the minority, Stevens said he had no doubt that earlier Supreme Court decisions limiting punitive awards were correct, but said the Oregon case was different because that state's supreme court had "faithfully applied the reasoning in those opinions to the egregious facts disclosed by this record...no procedural error even arguably justifying reversal occurred at the trial in this case."



Federal appeals court upholds MCA habeas-stripping provisions
Court Watch | 2007/02/20 05:19

The US Court of Appeals for the DC Circuit ruled Tuesday that provisions in the Military Commissions Act stripping foreign nationals held as "enemy combatants" of the right to file habeas corpus petitions challenging their detentions do not violate the Suspension Clause of the US Constitution. The ruling came in the consolidated cases of hundreds of Guantanamo Bay detainees. The court also held that Congress was clear in its intent to strip federal courts of habeas jurisdiction even in pending challenges. The DC Circuit vacated the lower court decisions in the cases and dismissed the detainees' petitions for lack of jurisdiction.

President Bush signed the MCA into law last October and shortly thereafter the the US Justice Department sent letters to the DC district and appeals courts, notifying the lower court that it no longer had jurisdiction over some 200 pending cases filed by Guantanamo detainees, and urging the appeals court to reach the merits in the present cases. Tuesday's appeals court ruling is expected to be appealed to the US Supreme Court.



Justice Department to Monitor Election in New York
Legal Business | 2007/02/20 02:25

The Justice Department today announced that on Feb. 20, 2007, it will monitor the special election in Richmond County (Staten Island), N.Y., to ensure compliance with the Voting Rights Act. The Department monitors will watch and record activities during voting hours at polling locations in the county. A Civil Rights Division attorney will coordinate the federal activities and maintain contact with local election officials.

Each year, the Justice Department deploys hundreds of federal observers from the Office of Personnel Management, as well as departmental staff, to monitor elections across the country. During calendar year 2004, a record number of 1,463 federal observers and 533 Department personnel were sent to monitor 163 elections in 105 jurisdictions in 29 states. This compares to the 640 federal observers and 103 Department personnel deployed during the entire 2000 presidential calendar year. In 2006, another record was set for the mid-term elections with more than 800 federal observers and Department personnel sent to monitor polling places in 69 jurisdictions in 22 states on Election Day. The Department’s election monitoring program also has been very active in non-federal election years. In calendar year 2005, for example, 640 federal observers and 191 Department personnel were sent to monitor 47 elections in 36 jurisdictions in 14 states.



Former IBM Employee Sues for Damages
Breaking Legal News | 2007/02/19 12:49

WHITE PLAINS, N.Y. — A man who was fired by IBM for visiting an adult chat room at work is suing the company for $5 million, claiming he is an Internet addict who deserves treatment and sympathy rather than dismissal.

James Pacenza, 58, of Montgomery, N.Y., says he visits chat rooms to treat traumatic stress incurred in 1969 when he saw his best friend killed during an Army patrol in Vietnam.

In papers filed in federal court in White Plains, Pacenza said the stress caused him to become "a sex addict, and with the development of the Internet, an Internet addict." He claimed protection under the Americans with Disabilities Act.

His lawyer, Michael Diederich, says Pacenza never visited pornographic sites at work, violated no written IBM rule and did not surf the Internet any more or any differently than other employees. He also says age discrimination contributed to IBM's actions. Pacenza, 55 at the time, had been with the company for 19 years.

International Business Machines Corp. has asked Judge Stephen Robinson for a summary judgment, saying its policy against surfing sexual Web sites is clear. It also claims Pacenza was told he could lose his job after an incident four months earlier; Pacenza denies that.

"Plaintiff was discharged by IBM because he visited an Internet chat room for a sexual experience during work after he had been previously warned," the company said.

IBM also said sexual-behavior disorders are specifically excluded from the ADA and denied any age discrimination.

If it goes to trial, the case could affect how employers regulate Internet use that is not work-related, or how Internet overuse is categorized medically. Stanford University issued a nationwide study last year that found that up to 14 percent of computer users reported neglecting work, school, families, food and sleep to use the Internet.

Pacenza was making $65,000 a year operating a machine at a plant in East Fishkill, N.Y., that makes computer chips.

Several times during the day, machine operators are idle for five to 10 minutes as the tool measures the thickness of silicon wafers.

It was during such down time on May 28, 2003, that Pacenza logged onto a chat room from his workstation.

Diederich says Pacenza had returned that day from visiting the Vietnam Veterans Memorial in Washington and logged onto a site called ChatAvenue and then to an adult chat room.

Pacenza, who has a wife and two children, said using the Internet at work was encouraged by IBM and served as "a form of self-medication" for post-traumatic stress disorder.

He said he tried to stay away from chat rooms at work, but that day, "I felt I needed the interactive engagement of chat talk to divert my attention from my thoughts of Vietnam and death."



Lottery Winners Being Sued for Partying
Breaking Legal News | 2007/02/19 12:43

PORTLAND, Ore. - A couple who won a $2.6 million lottery jackpot and spoke of helping young people fight drug addiction and alcohol abuse are facing a lawsuit alleging they held four months of parties with public sex, fights and signs of drug dealing.

Samuel Howard, 54, denied the allegations.

The lawsuit was filed under a little-used chronic nuisance law aimed at ridding neighborhoods of crime-infested properties. The city wants to board the house up for six to 12 months, according to Roland Iparraguirre, a deputy city attorney.

In the first four months after they moved in, police were called to the street 52 times, the lawsuit said. It said children are often used as lookouts and there are frequent, brief visits and multiple locks on the door, all indications of drug dealing.

Howard said the house is on the market. Iparraguirre said the litigation would be dropped if the house is sold and the alleged criminal activity stops.



Advanced Magnetics Settles with Cytogen Corp.
Health Care | 2007/02/19 12:41
CAMBRIDGE, Mass., Feb. 15 -- Advanced Magnetics, Inc. (NASDAQ:AMAG) today announced that it has settled its lawsuit with Cytogen Corporation. Both parties have agreed to dismiss the lawsuit and drop all claims against each other. Under the terms of the settlement agreement, Advanced Magnetics and Cytogen agreed to terminate both the license and marketing agreement and the supply agreement between the parties, effective immediately.

With the termination of its agreements with Cytogen, Advanced Magnetics has re-acquired the United States marketing rights to Combidex(R), Advanced Magnetics' investigational functional molecular imaging agent for use in conjunction with magnetic resonance imaging to aid in the differentiation of cancerous from normal lymph nodes, as well as the United States marketing rights to ferumoxytol for oncology imaging applications. Under the terms of the settlement agreement, Advanced Magnetics will pay Cytogen a lump sum payment of $4 million in cash and release to Cytogen the 50,000 shares of Cytogen common stock currently being held in escrow under the terms of the original license and marketing agreement.

"We are very pleased to have reached an amicable settlement with Cytogen and to have re-acquired the U.S. marketing rights to Combidex," stated Brian J.G. Pereira, Chief Executive Officer and President of Advanced Magnetics. "We look forward to advancing our development programs for both ferumoxytol as an intravenous iron replacement therapeutic and Combidex as an imaging agent in the months ahead."

Ferumoxytol, the company's key product candidate, is in Phase III multi- center clinical trials for use as an iron replacement therapeutic in chronic kidney disease patients, whether or not on dialysis.

Combidex, the company's other product under development, is an investigational functional molecular imaging agent consisting of iron oxide nanoparticles for use in conjunction with magnetic resonance imaging to aid in the differentiation of cancerous from normal lymph nodes.

About Advanced Magnetics

Advanced Magnetics, Inc. is a developer of superparamagnetic iron oxide nanoparticles used in pharmaceutical products. As a leader in our field, we are dedicated to the development and commercialization of our proprietary nanoparticle technology for use in therapeutic iron compounds to treat anemia, as well as novel imaging agents to aid in the diagnosis of cancer and cardiovascular disease. For more information about us, please visit our website at
http://www.advancedmagnetics.com/, the content of which is not part of this press release.


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