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Rules for plaintiffs with Vioxx claims
Breaking Legal News | 2007/11/09 11:52

Former users of withdrawn painkiller Vioxx will be eligible for a piece of manufacturer Merck & Co.'s $4.85 billion nationwide settlement if they meet strict criteria meant to weed out people with bogus claims. They must:

-- Have had a claim filed by Thursday, the day before the deal was announced.

-- Already have medical documentation that they suffered a heart attack or an ischemic stroke; people who had mini-strokes or hemorrhagic strokes are not eligible.

-- Have proof they received at least 30 Vioxx pills.

-- Have received Vioxx pills recently enough to indicate they likely took the painkiller within two weeks of their injury.

-- Be legal U.S. residents alleging their injury occurred in the United States.

-- Promptly register their claims after being contacted by their current attorney.



Supreme Court Takes Up Arbitration Case
Breaking Legal News | 2007/11/08 08:22
A seemingly divided Supreme Court on Wednesday debated whether the judiciary should play a role in arbitration cases, the process used by businesses to sort out tens of thousands of disputes as an alternative to going to court. In an environmental cleanup case, a lawyer for toy manufacturer Mattel Inc. told the justices that the role of the courts is a limited one and that an arbitrator's decision in the company's favor should stand.

An attorney for a property owner where Mattel once operated a factory in Beaverton, Ore., argued that the courts should step in and correct mistaken decisions by arbitrators.

Arbitration is often regarded by the business community as a cost-saving, timesaving substitute for lawsuits. But the risk is that the losing side cannot seek relief in the courts except in limited circumstances.

In the fight between Hall Street Associates L.L.C. v. Mattel, the two sides agreed in advance that a federal court could review an arbitrator's decision for possible errors of law. A federal judge overturned the arbitrator's decision, making the property owner the winner in the Mattel case.

Chief Justice John Roberts suggested expanded judicial review is appropriate in this instance, pointing to the fact that the two sides negotiated a contract with court review as one of its provisions.

Justices David Souter, Ruth Bader Ginsburg and Antonin Scalia suggested Mattel might be seeking more latitude than the law allows for parties to negotiate expanded judicial review in arbitration cases.

The American Arbitration Association says a cornerstone principle of federal law is that arbitrators' awards are final and binding.

If parties to a dispute are allowed to engage in expanded judicial review, arbitration will become a prelude to lawsuits instead of a substitute, the association said in court papers.

Many industries have an interest in the case, including the wireless communications industry which has filed papers in support of an expanded role for the courts.

The wireless industry says that in the absence of court review, parties may decide they are unwilling to "bet the company" on arbitration. The result would be a decline in the number of disputes sent to arbitration and an added workload for already-overburdened courts.

In the case before the justices, Hall Street Associates wants Mattel to pay for cleanup at a contaminated factory site that Mattel leased from Hall Street.

The toy company and the property owner agreed to submit the case to arbitration, signing an agreement allowing either side to seek court review of the decision.

The property that Mattel leased from Hall Street Associates contains high levels of the industrial solvent TCE used to degrease metal parts.

Mattel did not contaminate the grounds with the hazardous chemical and an arbitrator initially ruled the toy manufacturer did not have to pay for the cleanup.

The case then began a six-year odyssey through the federal court system.

A judge said the arbitrator's decision "defies logic." The arbitrator responded by reversing himself and awarding Hall Street $584,000.

This prompted another trip to the courts and ultimately an order by the 9th U.S. Circuit Court of Appeals in San Francisco to reinstate the original arbitration award in favor of Mattel.



Some Question Preacher Investigation
Breaking Legal News | 2007/11/07 08:46

For some, a Senate committee's investigation into six well-known evangelical ministries is long overdue, a needed check on preachers living lavish lifestyles built with their donors' generosity.

But even among those who welcome the scrutiny, there was concern Wednesday over government intrusion into religion, more red tape in the name of transparency and undue burdens on preachers and churches who play strictly by the rules.

The top Republican on the Senate Finance Committee, Chuck Grassley of Iowa, faxed letters Monday to a half-dozen evangelical mega-ministries requesting information about compensation, board oversight and perks — from luxury oceanside homes to flights on private jets to opulent spending on office furniture.

The organizations are not legally required to respond. Some have released statements pledging to cooperate, others have hedged and all have emphasized their commitment to following applicable tax laws.

The IRS requires that pastors' compensation be "reasonable," a figure set by collecting comparable salaries and weighing factors such as church size and a pastor's value to the congregation. IRS rules prevent pastors and other insiders from excessive personal gain through their tax-exempt work.

Marvin Olasky, editor of World, an influential conservative Christian magazine, credited Grassley for racheting up the pressure on ministries he believes are far too secretive about how donations are spent.

"These organizations should be pressured to disclose information," Olasky said. "If glasnost worked in the Soviet Union, it can work in relation to these ministries."

Olasky, however, cautioned that "hard cases make bad law." Echoing others, Olasky said governmental action should be a last resort and that the Christian community and media needs to press organizations to be more open.

The six ministries in the inquiry share Pentecostal theology, a strong television presence and a "prosperity gospel" message emphasizing material rewards for the faithful. They are:

_ Randy and Paula White of Without Walls International Church and Paula White Ministries of Tampa, Fla.

_ Benny Hinn of World Healing Center Church Inc. and Benny Hinn Ministries of Grapevine, Texas;

_ David and Joyce Meyer of Joyce Meyer Ministries of Fenton, Mo.;

_ Kenneth and Gloria Copeland of Kenneth Copeland Ministries of Newark, Texas;

_ Bishop Eddie Long of New Birth Missionary Baptist Church and Bishop Eddie Long Ministries of Lithonia, Ga.;

_ Creflo and Taffi Dollar of World Changers Church International and Creflo Dollar Ministries of College Park, Ga.

These kinds of huge, non-denominational operations are like smaller churches in that they aren't required to publicly disclose their finances.

Scott Thumma, a megachurch expert at the Hartford Institute for Religion Research, said they require even greater scrutiny because they lack denominational oversight and have a penchant for unchecked lavish spending.

"If this attention makes these ministries more accountable to donors, it's probably a positive step forward," Thumma said. "At the same time, it does pose challenges about what is the role of government in how a church spends its money and who is accountable. These are probably legitimate concerns by those pastors watching from outside."

Some pastors, Thumma said, might be hesitant to speak out because "they are looking at that slippery slope and don't want to be seen as advocating for the government getting involved in the roles of church."

Dollar released a statement saying questions raised by Grassley's inquiry "could affect the privacy of every community church in America."

Others question whether the halls of Congress are the appropriate setting for the debate.

"I do wonder why a Senate committee would be doing this when the IRS is perfectly capable of enforcing its own rules — and does so frequently," said James Bopp, a nonprofit and tax lawyer who represents several large evangelical organizations but none of those under investigation.

Tom Minnery, a senior vice president at the evangelical media ministry Focus on the Family, said he was disappointed that Grassley thinks an investigation is necessary. Minnery called existing tax rules "vigorous."

In an interview Wednesday, Grassley said his committee has jurisdiction over nonprofits and oversight over the IRS. He said it's unclear whether the IRS is doing enough to police Christian nonprofits or whether existing guidelines go far enough — questions that are part of the inquiry.

"We're going to let these ministries speak for themselves," he said. "Hopefully, it comes back everything's OK, but the allegations we've heard about raise questions."

Grassley also said the inquiry will not delve into doctrinal issues, and that he understands church-state separation concerns. At the same time, he said religious nonprofit groups should be expected to follow rules governing nonprofits just as secular groups are.

"I'm hoping these organizations clean up their own act if there's something wrong," Grassley said.

An IRS spokeswoman declined comment on the Grassley investigation, which could lead in several directions: public hearings, more ministries being drawn in, and potential penalties ranging from back taxes to loss of tax-exempt status.

The evangelical nonprofit world already polices itself through the Evangelical Council for Financial Accountability, which requires members to annually submit audited financial statements and answer other transparency questions. But membership is voluntary, and none of the groups under investigation belong.

IRS audits and inquiries into nonprofits, meanwhile, are confidential. Even if a Christian ministry is punished, donors don't learn about it unless the organization under scrutiny makes it public.

"I see this as a kind of a tug of war of interests," said Rodney Pitzer, managing director of research with MinistryWatch.org, which grades Christian groups on financial accountability.

"On one side you have a ton of good ministries out there who want to be unshackled from red tape and government bureaucracy. In that midst unfortunately are wolves in sheeps' clothing."



Supreme Court hears age discrimination case
Breaking Legal News | 2007/11/07 08:23

This week the Supreme Court took up a case that could have far-reaching effects on workplace discrimination lawsuits nationwide. The case, Federal Express Corp. v. Holowecki, turns on paperwork: specifically, the forms that aggrieved workers use to file discrimination complaints with the federal Equal Employment Opportunity Commission (EEOC).

The question is whether a particular complaint form, the intake questionnaire, constitutes a formal discrimination charge that can serve as the basis for a lawsuit under the Age Discrimination Employment Act (ADEA).

Under the ADEA, employees must wait 60 days after filing a formal EEOC complaint to bring a lawsuit against their employers. The rule is designed to give the employer sufficient time to investigate the charges and perhaps reach an out-of-court settlement with the employee.

Almost half of EEOC complaints are filed by small business employees, according to the National Federation of Independent Business, which filed a brief with the Supreme Court in support of Federal Express.

In 2006 the EEOC received more than 75,000 discrimination charges, only 5% of which had reasonable cause to go to court, according to Karen Harned, executive director of the NFIB's legal foundation.

Harned argued that U.S. employers would face a surge in discrimination lawsuits if the justices decide that intake questionnaires qualify as discrimination charges.

"There has to be a filtering process or small business owners will be inundated with litigation," she said.

In December 2001, a Federal Express (Charts, Fortune 500) courier named Patricia Kennedy filed an EEOC intake questionnaire claiming that FedEx was in the habit of improperly firing older employees who did not meet the company's hourly delivery quotas.

The EEOC did not follow up on Kennedy's complaint. In April 2002, Kennedy and several other older employees, including Paul Holowecki, filed a class action suit against Federal Express. In May 2002, Kennedy belatedly submitted a formal discrimination complaint, known as a Form 5, to the EEOC.

A district court threw the case out on the grounds that plaintiffs were legally required to submit the Form 5 before filing suit against their employers. But the U.S. Court of Appeals for the Second Circuit reversed that decision, ruling that an intake questionnaire could indeed be considered a formal charge.

At yesterday's hearing, the justices concentrated on the issue of how the EEOC handles discrimination complaints. Chief Justice John Roberts argued that employees should not be held responsible for the EEOC's complex and often contradictory regulations.

"I don't understand the leap from government incompetence to the plaintiff losing," the chief justice told Federal Express advocate Connie Lensing.

The plaintiffs' advocate, David Rose, argued that the validity of a discrimination charge should not be a function of the form on which it was filed.

But Justice Antonin Scalia responded that employees were responsible for reading the forms that they filled out. "You can't run a system for people who are illiterate," Scalia said. But he also criticized the EEOC's procedures for handling discrimination complaints. "The problem is the EEOC," Scalia said. "What kind of agency is this?"

It may be months before the Supreme Court rules on Holowecki, but the outcome could force the EEOC to change its procedures for all discrimination complaints, including those that arise under the Americans with Disabilities Act and under Title VII, which covers discrimination on the basis of race, color, religion, sex and national origin.

"The decision in Holowecki will likely resolve the many inconsistencies among federal circuit courts of appeal on the issue of whether an EEOC intake questionnaire may constitute a charge of discrimination under the ADEA," said Paul Secunda of the University of Mississippi School of Law, in his American Bar Association preview of the case.

"Depending on the breadth of the holding, the case may also answer this same question for related federal employment discrimination laws."



Yahoo CEO Defends Company in China Case
Breaking Legal News | 2007/11/06 06:53
Yahoo Inc. Chief Executive Jerry Yang testified to lawmakers on Tuesday that the company has been "open and forthcoming" about its role in a Chinese government investigation that led in 2005 to a journalist's imprisonment.

"We have answered every question, provided every requested piece of information and worked with you in good faith," he said in prepared testimony before the House Foreign Affairs Committee.

Lawmakers have accused the company of holding back information in its role regarding the arrest of Chinese journalist Shi Tao. The Chinese government accused Shi of leaking state secrets and sentenced him to 10 years in prison.

Yang, who became CEO this summer of the company he co-founded, also said Yahoo is committed to doing the right thing and protecting human rights globally.

"We are a company founded on openness, the exchange of information and user trust, and we believe deeply in free expression and privacy," he said.

Michael Callahan, the Internet company's general counsel, is expected to repeat a public apology he made last week regarding his failure to turn over new information to Congress in October 2006, months after he initially testified to two House subcommittees about Yahoo's role in the case.

The foreign affairs committee's chairman, California Democrat Tom Lantos, doesn't buy Yahoo's explanation of why it previously provided incomplete information to Congress.

"Yahoo claims that this is just one big misunderstanding. Let me be clear — this was no misunderstanding," Lantos said in a statement prepared for the hearing.

"This was inexcusably negligent behavior at best, and deliberately deceptive behavior at worst," Lantos said.



Appeals court rejects "Roe vs. Wade for Men" case
Breaking Legal News | 2007/11/06 05:02

A federal appeals court has upheld a lower court's decision to dismiss a lawsuit filed by a men's rights group on behalf of a man who said he shouldn't have to pay child support for his ex-girlfriend's daughter. The 6th Circuit U.S. Court of Appeals, in a decision released Tuesday, agreed with U.S. District Judge David Lawson in Bay City that Matthew Dubay's suit was frivolous and ordered him to pay attorney fees to the state. However, the three-member appeals court panel declined to award the state attorney fees for the appeal.

Dubay, a 25-year-old from Saginaw Township, had said his ex-girlfriend, Lauren Wells, knew he didn't want to have a child and she assured him repeatedly she couldn't get pregnant because of a medical condition.

He argued that if a pregnant woman can choose among abortion, adoption or raising a child, a man involved in an unintended pregnancy should have the choice of declining the financial responsibilities of fatherhood.

But Lawson disagreed and rejected Dubay's argument that Michigan's paternity law violates the U.S. Constitution's equal protection clause.

The National Center for Men in Old Bethpage, N.Y. -- which prepared the suit -- nicknamed it "Roe v. Wade for Men" because it involves the issue of male reproductive rights. The nickname drew objections from women's rights organizations.

Dubay sued the Saginaw County prosecutor and Wells in March, contesting an order to pay $500 a month in child support for a girl born to Wells in 2005. Michigan Attorney General Mike Cox later intervened in the case and argued for its dismissal.
Dubay previously had acknowledged the suit was a long shot.



Expeditors International Hires Law Firm
Breaking Legal News | 2007/11/06 04:11
The head of Expeditors International of Washington Inc. said Tuesday the freight forwarding company has hired a "noted law firm" to help it deal with an ongoing probe of the air cargo business, but no proof of wrongdoing has been found. In a brief statement included with the company's third-quarter earnings, Chairman and Chief Executive Peter J. Rose also said the company is "taking this whole issue very seriously" and continues to cooperate with Department of Justice investigators. The law firm is helping the company conduct "a very rigorous self-review," he said.

"As part of this process, we have met with and continue to cooperate with the DOJ. There has been no determination made at this stage that any anticompetitive behavior occurred," Rose said. "We are doing our utmost to conduct 'business as usual.' It is our intention not to disrupt our employees' routine or their ability to meet the needs of our customers."

Last month, Expeditors International said it received a subpoena from the Justice Department to hand over information and documents related to the investigation. It did not comment further at the time.

Bear Stearns analyst Edward Wolfe said then that the department's antitrust division is working with the European Union and other foreign officials to investigate "possible anticompetitive practices in the international freight industry."



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