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3.5M award reviewed over crooked Pa. judges' role
Breaking Legal News | 2009/04/08 05:27
Pennsylvania's highest court is revisiting a $3.5 million defamation verdict against The Citizens' Voice newspaper because of the role played in it by two former judges at the center of a juvenile justice scandal.


The state Supreme Court on Tuesday appointed a judge to examine the Wilkes-Barre newspaper's claim that corruption was involved in the handling of the lawsuit against it by a businessman and one of his companies. The court wants the judge to recommend whether a new trial is warranted.

The court's order says the newspaper has offered new evidence suggesting irregularities in how the case was handled because of the involvement of former Luzerne County Judges Mark Ciavarella (shiv-uh-REL'-uh) and Michael Conahan.

Ciavarella and Conahan have pleaded guilty to federal fraud charges. Prosecutors say they took kickbacks from private juvenile detention centers.



Court rules against Navajo Nation in coal case
Breaking Legal News | 2009/04/06 09:54
The Supreme Court has ruled against the Navajo Nation for a second time in its battle with the federal government over whether the tribe should have gotten more money for coal on its land.


The high court, in an unanimous opinion Monday, reversed a decision by the U.S. Court of Appeals for the Federal Circuit, ending the tribe's fight with the government.

"Today we hold, once again, that the tribe's claim for compensation fails," said Justice Antonin Scalia, writing for the court. "This matter should now be regarded as closed."

The sprawling Navajo reservation, which is the nation's largest, covers part of New Mexico, Arizona and Utah. The Peabody Coal Co. has mined coal on tribal lands for decades, paying the tribe taxes and mineral royalties.

In 1985, the tribe alleged that Peabody conspired with then-Interior Secretary Donald Hodel to persuade the tribe to accept a lower royalty than other government officials believed the tribe should be paid.



Iowa court says gay marriage ban unconstitutional
Breaking Legal News | 2009/04/03 08:00
The Iowa Supreme Court issued a unanimous ruling Friday finding that the state's same-sex marriage ban violates the constitutional rights of gay and lesbian couples, making Iowa the third state where marriage is legal.


In its decision, the court upheld a 2007 district court judge's ruling that the law violates the state constitution. It strikes the language from Iowa code limiting marriage to only between a man a woman.

"The court reaffirmed that a statute inconsistent with the Iowa constitution must be declared void even though it may be supported by strong and deep-seated traditional beliefs and popular opinion," said a summary of the ruling issued by the court.

The ruling set off celebration among the state's gay-marriage proponents.

"Iowa is about justice, and that's what happened here today," said Laura Fefchak, who was hosting a verdict party in the Des Moines suburb of Urbandale with partner of 13 years, Nancy Robinson.



Ex-Madoff customers seek swindler's personal assets
Breaking Legal News | 2009/04/02 07:56
Some of jailed swindler Bernard Madoff's defrauded customers moved on Wednesday to try and get access to his personal assets and any other items that may have been transferred to his family or other people.


Papers filed in U.S. District Court in Manhattan in the civil case against Madoff, 70, asked a judge to include personal assets among those of his firm being gathered under the auspices of a bankruptcy court to pay back fraud victims.

A court-appointed trustee is winding down Bernard L. Madoff Investment Securities LLC to find assets to sell to return money to thousands of his former customers. But there is no trustee of personal assets of the man who pleaded guilty on March 12 to running Wall Street's biggest investment fraud.

"The recovery of Madoff's assets which may have been been transferred to family members or third parties may be more easily recovered in a bankruptcy proceeding for Madoff himself, rather than less directly in the bankruptcy case of the Madoff securities firm," said Jonathan Landers, a lawyer for scores of Madoff customers represented by Milberg LLP and Seeger Weiss LLP, which filed the request.



Court ends Philip Morris appeal of $79.5M award
Breaking Legal News | 2009/03/31 09:33
The Supreme Court on Tuesday threw out a cigarette maker's appeal of a $79.5 million award to a smoker's widow, ending a 10-year legal fight to keep her from collecting.


In a one-sentence order, the court left in place a ruling by the Oregon Supreme Court in favor of Mayola Williams. The state court has repeatedly upheld a verdict against Altria Group Inc.'s Philip Morris USA in a fraud trial in 1999.

The judgment has grown to more than $155 million with interest, and Williams stands to collect between $60 million and $65 million, before taxes and payments to her lawyers, said Robert Peck, her Washington-based lawyer.

The justices heard arguments in the case in December, but said Tuesday that they are not passing judgment on the legal issues that were presented. Instead, it is as if the court had declined to hear the case at all.

Philip Morris had argued that the award should be thrown out and a new trial ordered because of flaws in the instructions given jurors before their deliberations.

Business interests had once hoped the high court would use the case to set firm limits on the award of punitive damages, intended to punish a defendant for its behavior and deter a repeat offense.

Peck said the court has signaled a willingness to allow large awards in certain circumstances. "I think we can take from this long tale that if the behavior is sufficiently reprehensible, then larger awards are merited," Peck said.



Phil Spector murder retrial in hands of LA jury
Breaking Legal News | 2009/03/27 08:41
The murder case against music producer Phil Spector is in the hands of a California jury again.


The case was turned over to the Los Angeles Superior Court jury Thursday after the prosecution concluded a rebuttal to the defense closing arguments.

Spector is being retried on a second-degree murder charge in the shooting of actress Lana Clarkson six years ago.

His first trial ended in a jury deadlock in 2007 with the majority favoring conviction. This time the jury has the option of considering a lesser charge of involuntary manslaughter.

Clarkson died of a gunshot fired inside her mouth as she sat in the foyer of Spector's home. The 40-year-old star of the cult film "Barbarian Queen" had met Spector hours earlier at her job as a hostess at the House of Blues.



Geithner Calls for Major Overhaul of Financial Rules
Breaking Legal News | 2009/03/26 08:43

The Obama administration on Thursday detailed its wide-ranging plan to overhaul financial regulation by subjecting hedge funds and traders of exotic financial instruments, now among the biggest and most freewheeling players on Wall Street, to potentially strict new government supervision.

The Treasury secretary, Timothy F. Geithner, outlined the plan Thursday before the House Financial Services Committee. He said the changes were needed to fix a badly flawed system that was exposed by the current financial crisis. Mr. Geithner, in his opening statement, called for “comprehensive reform. Not modest repairs at the margin, but new rules of the game.”

Included in the plan would be the establishment of one single agency “with responsibility for systemic stability over the major institutions and critical payment and settlement systems and activities.”

To that end, Mr. Geithner said: “Financial products and institutions should be regulated for the economic function they provide and the risks they present, not the legal form they take,” Mr. Geithner said. “We can’t allow institutions to cherry pick among competing regulators, and shift risk to where it faces the lowest standards and constraints.”

He did not provide details for how all this will work, saying that the proposals would be outlined over the coming weeks.

The plan, which would require Congressional approval, would give the government new powers over “systemically important” banks and other financial institutions that are so big that their collapse would jeopardize the economy as a whole.

The government would have the power to peer into the inner workings of companies that currently escape most federal supervision — insurance companies like the American International Group, multibillion-dollar hedge funds like the Citadel Group and private equity firms like the Carlyle Group or Kohlberg, Kravis & Roberts.

If regulators decided that a company had become “too big to fail,” as was the case with A.I.G. in September, they would subject it to much stricter capital requirements than smaller rivals and much closer scrutiny of its borrowing levels and its trading partners, or counterparties.



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