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Scruggs Facing Possible Criminal Charges
Breaking Legal News | 2007/06/16 07:59

A federal judge Friday requested that the U.S. attorney prosecute prominent Mississippi attorney Richard F. Scruggs and his law firm for criminal contempt in a Hurricane Katrina insurance dispute.

U.S. District Judge William M. Acker Jr. said if the federal prosecutor in Birmingham declines the court's request, Acker will appoint another attorney to handle the prosecution.

Acker ruled that Scruggs "willfully violated" a Dec. 8, 2006 preliminary injunction that required him to deliver "all documents" about State Farm Insurance Co. that whistleblowers Cori and Kerri Rigsby secretly copied after Katrina. Acker's ruling came in a suit by E.A. Renfroe and Co. Inc., a claims adjusting firm that fired the Rigsbys after finding out they had taken internal documents. Renfroe and Co. worked for State Farm, and the sisters were heavily involved in processing claims for the insurance giant.

"It is undisputed that Scruggs had in his possession the exact documents that fell within the scope of the injunction and that were and are the whole subject of the controversy," the judge wrote in his order. Instead of complying, Scruggs promptly sent the documents to Mississippi Attorney General Jim Hood's office, Acker says, "for the calculated purpose of ensuring noncompliance with or avoidance" of the injunction.

He said Scruggs's motive seems clear from the undisputed facts. "Even after Hood `voluntarily' sent the documents to counsel for Renfroe at Scruggs's request, Scruggs wrote to Hood requesting another copy of the same documents for himself and ostensibly for the Scruggs Katrina Group," the judge wrote.

He called Scruggs' action a "brazen disregard" of the court's order, calling it "precisely the type of conduct that criminal contempt sanctions were designed to address." Richard Scruggs called the judge's actions "bizarre." "Our firm fully cooperated with the court's injunction. We did what was asked of us and the information that we turned over was strong evidence of fraud by the insurance industry," Richard Scruggs told The Associated Press Friday evening. "We're going to vigorouly oppose it and we are willing to accept what consequences this Alabama judge might impose for complying with his own injunction," he said. Zack Scruggs, his son and law partner in Oxford, Miss. said an appeal of Acker's ruling is possible.

The elder Scruggs had argued that he did not violate the injunction because the injunction, as he interpreted it, contained an express "carve-out for law enforcement," Acker noted. But the judge wrote: "To read the preliminary injunction to permit Scruggs to deliver the documents to Hood rather than to counsel for Renfroe is such a strained construction and so contrary to the injunction's clear terms as to lack any credibility whatsoever."

The Rigsbys, from Ocean Springs, Miss., have admitted copying thousands of pages of records to back up their allegations that State Farm wrongly denied claims after Katrina. The sisters gave the documents to law enforcement agents and Scruggs, who signed them each to a $150,000-a-year consulting contract. The sisters say they made about 15,000 copies -- three sets of 5,000 separate records.

Scruggs, a highly successful plaintiffs' lawyer who is the brother-in-law of U.S. Sen. Trent Lott, R-Miss., is suing State Farm on behalf of hundreds of Mississippi residents.



Duke Case Prosecutor Says He Will Resign
Breaking Legal News | 2007/06/16 07:49

Mike Nifong, the prosecutor who doggedly pursued the now-debunked Duke University lacrosse team rape case, was a "minister of injustice" who wove "a web of deception," a state bar prosecutor said in closing statements Saturday at Nifong's ethics trial. If convicted, the disciplinary hearing committee could suspend Nifong's law license or take it away entirely. Nifong told the panel hearing the case Friday that he would resign from his post as Durham County district attorney over his handling of the rape charges.

"Mr. Nifong did not act as a minister of justice, but as a minister of injustice," state bar prosecutor Douglas Brocker said Saturday morning.

Brocker told the disciplinary hearing committee that as Nifong investigated allegations that a stripper was raped at a March 2006 party thrown by Duke's lacrosse team, he charged "forward toward condemnation and injustice," weaving a "web of deception that has continued up through this hearing."

The bar charged Nifong, a prosecutor in Durham County for his entire three-decade legal career, with breaking several rules of professional conduct, including lying to both the court and bar investigators and withholding critical DNA test results from the players' defense attorneys.

Those DNA tests found genetic material from several males in the accuser's underwear and body, but none from any lacrosse player. Even though he was aware of those results, Nifong still pressed ahead with the case and won indictments against Dave Evans, Reade Seligmann and Collin Finnerty.

State prosecutors later concluded the three players were "innocent" victims of a rogue prosecutor's "tragic rush to accuse."

Nifong acknowledged Friday he was likely to be punished by the disciplinary committee for maybe getting "carried away a little bit" when talking publicly about the case. He said he regretted some of his statements, including a confident proclamation that he wouldn't allow Durham to become known for "a bunch of lacrosse players from Duke raping a black girl."

Brocker pounded on such comments Saturday, saying Nifong had to have known he was making improper comments to reporters.

"They (were) clearly going to cause public condemnation of anybody who was charged," Brocker said.

Brocker also focused on when Nifong learned about the full extent of the DNA test results and when he shared that information with the defense.

Nifong gave defense attorneys an initial report on the DNA testing in May 2006 that said private lab DNA Security Inc. had been unable to find a conclusive match between the accuser and any lacrosse players.

But lab director Brian Meehan testified this week that he told Nifong as early as April 10, 2006 _ a week before Seligmann and Finnerty were indicted _ about the more detailed test results.

"The positive results were the truth," Brocker said. "They just weren't the whole truth."

Nifong testified that when he gave the defense the initial report, he "believed at the time that I had given them everything."

Nifong tearfully said Friday he would resign as district attorney, stunning his staff in Durham and his own attorneys. They had insisted for weeks their client had no plans to leave the office he was elected to for the first time in November.

"It has become increasingly apparent, during the course of this week, in some ways that it might not have been before, that my presence as the district attorney in Durham is not furthering the cause of justice," Nifong said, adding later: "My community has suffered enough."

Even if he is disbarred, Nifong's troubles aren't over _ the players' attorneys have pledged to seek criminal contempt charges next week in Durham.



High court rejects Moore's appeal on tobacco money
Breaking Legal News | 2007/06/15 10:36

The Mississippi Supreme Court, in a 6-1 decision Thursday, officially killed the smoking cessation program started with lawsuit proceeds from major tobacco companies. Justice George Carlson of Batesville, writing for the majority, said the controversial Partnership for a Healthy Mississippi is not entitled to a portion of annual tobacco settlement funds the state receives from the cigarette makers.

The private, nonprofit Partnership was started in Decmeber 2000 after Attorney General Michael Moore was successful in persuading a Jackson County chancery judge to start the program. To do so, the judge diverted to the Partnership $20 million per year of the $110 million the state receives annually from the tobacco companies.

Gov. Haley Barbour and Treasurer Tate Reeves filed suit, claiming the judge's decision to appropriate the money to the Partnership was unconstitutional. The settlement funds, they argued, were state money and only the Legislature can spend the funds.

Carlson wrote "...it is the Legislature's solemn duty and responsibility to appropriate these funds and not that of the judiciary."  The ruling was not unexpected.

Justice Oliver Diaz of Biloxi was the only member of the high court to dissent. He said the issue had been settled in 2000 and it was too late for Barbour and Reeves to object.

Barbour said the ruling pointed out "a local judge and the attorney general have no power to give taxpayer money to a private charity."

"It's a shame it look a long, drawn-out lawsuit to stop this illegal and unconstitutional diversion of taxpayer money."

Democratic gubernatorial candidate John Arthur Eaves said Barbour, a former Washington lobbyist who represented tobacco companies, is continuing "to put the interest of his Washington cronies above those of Mississippi children."

Moore said Thursday the issue had never been about constitutionality for Barbour. He said that to appease Barbour, the Legislature voted in 2006 to appropriate the funds to the Partnership, but the governor vetoed the bill.




Lawmakers kill vote on gay marriage ban
Breaking Legal News | 2007/06/15 06:24
Massachusetts lawmakers Thursday threw out a proposed constitutional amendment that would have let voters decide whether to ban gay marriage in the only state that allows it.

The vote was a devastating blow to efforts to reverse a 2003 court ruling legalizing same-sex marriage.

An amendment now can't reach voters before 2010. That would happen only with a successful new petition drive and the backing of 50 lawmakers in two consecutive sittings of the 200-seat Legislature - including the one that just rejected the ballot measure.

Such a scenario appeared increasingly unlikely, but opponents of gay marriage vowed to press on.



UC Appeals Enron Bank Case to Supreme Court
Breaking Legal News | 2007/06/14 07:39

The University of California has asked the U.S. Supreme Court to hear an appeal to overturn a decision that banks could not be held responsible for losses incurred during the Enron Corporation scandal. The university is the lead plaintiff in the class-action lawsuit involving 50,000 plaintiffs, originally filed in 2001 against a number of banks; only three banks remain defendents at this point, said UC spokesperson Trey Davis.

The three banks involved are Merrill Lynch, Barclays and Credit Suisse First Boston.

In April, the university filed a petition along with the other plaintiffs asking that the U.S. Supreme Court hear the appeal. On Monday, the university filed a brief asking that the court hear the appeal at the same time as another case that also grappled with the degree of responsibility for secondary actors like the banks.

Enron Corporation was found to have committed investor fraud in 2001 and then collapsed.

The university alleges that banks knew of the fraud and should now be held responsible for their role in Enron’s investor fraud.

The total alleged loss for all plaintiffs involved is estimated at $40 billion, Davis said.

According to Davis, the university lost approximately $145 million in investments as a result of the fraud and collapse.

The 50,000 plaintiffs include both individual and institutional investors, although Davis said the university was one of the pension funds with substantial losses.

The case had been heard in March by the U.S. Court of Appeals for the Fifth Circuit; that court ruled in favor of the banks in a 2-1 vote.

The idea of holding banks responsible for their part in the Enron scandal would bring into question the concept of scheme liability.

Scheme liability envisions fraudulent practices involving additional parties who actively and knowingly participate in the fraud, Davis said.

“We’re alleging that banks knew what they were doing and did what they did to perpetuate the fraud,” Davis said. “Scheme liability means banks were part of the scheme as opposed to just being innocent bystanders.”

While three banks currently remain as defendents, Davis said a number of other banks that had been involved in the case have settled for a total of approximately $7 billion out of court.

If the Supreme Court decides in the university’s favor, Davis said the remaining three banks could have the option to settle out of court as well.

Davis said he did not know when the Supreme Court is expected to respond or what the next steps will be for the case, adding that the university hopes the plaintiffs will get the chance to go to trial.



Lawyer accused of stealing trust money
Breaking Legal News | 2007/06/14 04:43

Before he died in 2002, the Rev. Vincent O'Dea made sure a charitable trust he founded would continue to bestow his generosity on worthy causes for years to come. But prosecutors say the lawyer hired by the trustees to manage O'Dea's account stole the money instead. J. Peter Parrish, 39, of Rocky River, pleaded not guilty Wednesday in Cuyahoga County Common Pleas Court to a charge of aggravated theft. Prosecutors accused the lawyer of looting the priest's trust ac count of nearly $200,000 between March 2004 and December 2005.

"This is sickening," Prosecutor Bill Mason said Wednesday. "The charitable trust established by Father O'Dea continues his life's work of giving to others even after his death. This attorney's theft of trust assets is, in effect, stealing from the poor and needy. He is without conscience."

Mason said Economic Crimes Unit prosecutors already have negotiated a plea deal with Parrish and his lawyer that would require him to repay $250,000 to the trust and to plead guilty to an aggravated theft charge.

Parrish already has repaid $83,000, and filed a request with the Ohio Supreme Court to assume inactive status as a lawyer, said his attorney, James Sammon.

"We have worked diligently to resolve the estate in probate court," Sammon said. "And he is in the process of winding down his law practice."

When he died, O'Dea was 92 and under the care of the Little Sisters of the Poor at their home in Warrensville Heights. He had served as pastor of St. Mary's Church in Hudson and St. Peter's Church in Lorain.

One of the trustees of O'Dea's charitable trust account noticed suspicious bank activity, and reported it to the Cleveland Bar Association. Bar officials contacted the prosecutor's office.



Ga. Court Tosses Voter ID Challenge
Breaking Legal News | 2007/06/13 08:30

The Georgia Supreme Court threw out a challenge Monday to the state's voter ID law, but sidestepped a decision on the law's validity by ruling that the plaintiff didn't have legal standing to challenge it. The court's unanimous opinion reversed a decision in September by Fulton County Superior Court Judge T. Jackson Bedford, who ruled the law was unconstitutional and an undue burden on voters. After that ruling, the State Election Board decided not to require voters to show a photo ID to cast a ballot in the November elections.

With another challenge to the law pending in federal court, it was unclear if the state could begin requiring voters to show identification at the polls.

For months, lawyers have been battling over the law, one of several passed recently across the country.

Opponents claim the photo ID law will disenfranchise minorities, the poor and the elderly who don't have a driver's license or other valid government-issued photo ID.

The law's mostly Republican supporters say it is needed to prevent voter fraud and preserve the integrity of the electoral system. No examples of in-person voter fraud have been presented, though the proposal's backers often mention the threat of noncitizens casting illegal ballots.

Monday's ruling, written by Justice Harold Melton, said that plaintiff Rosalind Lake was not harmed by the voter ID law and lacked standing to challenge it since she was exempt as a first-time voter.

The Secretary of State's office, which enforces voting law, did not immediately comment. But the law's sponsor, state Sen. Cecil Staton, said the court's opinion reinforced the Legislature's intent when it passed the law last year.

"It gives credence to our position all along that the argument that there are many, many people who are harmed by this law is just not correct," said Staton, a Macon Republican. "They didn't even have a plaintiff who's been harmed."

State Rep. Tyrone Brooks, D-Atlanta, vowed to "continue to fight this battle in federal court."

At the federal level, U.S. District Judge Harold Murphy struck down an earlier version of the law in 2005, saying it amounted to an unconstitutional poll tax. The Legislature addressed his complaints in a subsequent version, but he blocked the law again in September, saying the bill isn't in the public's interest. An appeal is pending.

Other states have faced similar legal battles over requiring voters to have photo IDs.

In Arizona, the law survived court challenges, and voters have had to show a photo ID to vote since 2006. In Missouri, the state Supreme Court in October struck down a law that required voters there to show a photo identification.

A federal appeals court upheld Indiana's voter ID law in January, saying it has the potential to do more good than harm. A month later, a New Mexico federal judge struck down the city of Albuquerque's voter ID ordinance.



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Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website, lawyer website templates and help you redesign your existing law firm site to secure your place in the internet.
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