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Pa. capital takeover challenged in federal court
Breaking Legal News |
2011/12/02 11:04
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The state takeover of Pennsylvania's financially troubled capital city received a fresh challenge Thursday, as three Harrisburg residents filed a federal lawsuit calling it an unconstitutional violation of their rights and asking for it to be stopped.
The suit names Gov. Tom Corbett, who signed a law on Oct. 20 enabling an unprecedented takeover of Harrisburg, and the Corbett appointee who, if confirmed, would have broad authority to force the city to pay down a massive debt tied to its trash incinerator.
The lawsuit was filed by a former mayoral candidate, a firefighters' union president and a religious leader. It alleges that the law and the state's takeover violate the plaintiffs' constitutional rights to due process and equal protection.
A Corbett administration spokeswoman said she had not seen the lawsuit and could not immediately comment.
The suit is the latest twist in a battle over who will end up footing the $300 million incinerator debt.
The first attempt to stop the takeover failed last week when a federal bankruptcy judge threw out a petition by a divided City Council to get federal bankruptcy protection for Harrisburg. The judge said the city had been legally barred by a separate state law — signed June 30 by Corbett — from seeking bankruptcy protection and, in any case, had no authority to go over the mayor's head to file it. |
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High court to review fine for mercury storage
Breaking Legal News |
2011/11/28 09:32
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The Supreme Court will consider throwing out an $18 million penalty against Texas-based Southern Union Co. for illegally storing mercury at a rundown building in Rhode Island.
The justices said Monday they will hear the natural gas company's appeal of the criminal penalty that was imposed by a federal judge and upheld by an appeals court.
What makes the case unusual is that the company is challenging the size of the penalty under a line of Supreme Court cases concerning prison sentences.
Southern Union had used the building in Pawtucket to store outdated mercury-sealed gas regulators that it removed from customers' homes. The mercury was initially removed and shipped to a recycling center. But when that work stopped, the regulators and loose mercury were left to accumulate inside the building.
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Thomas, Kagan asked to sit out health care case
Breaking Legal News |
2011/11/28 09:31
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Conservative interest groups and Republican lawmakers want Justice Elena Kagan off the health care case. Liberals and Democrats in Congress say it's Justice Clarence Thomas who should sit it out.
Neither justice is budging — the right decision, according to many ethicists and legal experts.
None of the parties in the case has asked the justices to excuse themselves. But underlying the calls on both sides is their belief that the conservative Thomas is a sure vote to strike down President Barack Obama's health care law and that the liberal Kagan is certain to uphold the main domestic achievement of the man who appointed her.
The stakes are high in the court's election-year review of a law aimed at extending coverage to more than 30 million people. Both sides have engaged in broad legal and political maneuvering for the most favorable conditions surrounding the court's consideration of the case.
Taking away just one vote potentially could tip the outcome on the nine-justice court.
Republican lawmakers recently have stepped up their effort against Kagan, complaining that the Justice Department has not fully revealed Kagan's involvement in planning the response to challenges to the law. Kagan was Obama's solicitor general, the administration's top Supreme Court lawyer, until he nominated her to the high court last year.
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Justices unlikely to have last word on health care
Breaking Legal News |
2011/11/15 03:57
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President Barack Obama's historic health care overhaul divided the nation from the day he signed it into law, and that seems unlikely to change no matter how the Supreme Court rules on its constitutionality.
Some legal disputes, like the 2008 presidential election, the court can settle. Others rage on, such as abortion. It may take another decade to find the balance between private and public responsibility for health care in America, a nation disdainful of big government yet historically unable to guarantee affordable basic coverage to its citizens.
"Either way it rules, the Supreme Court decision will not end the debate on health care," said former Senate Majority Leader Tom Daschle, an influential Democratic adviser. "It is, and will largely remain, a debate on the role of government."
The Supreme Court's announcement on Monday that it will take up the constitutional challenge to what Republicans deride as "Obamacare," sets the stage for a decision next summer in the heat of the presidential election campaign. |
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Russia court rejects $16 billion claim against BP
Breaking Legal News |
2011/11/13 11:16
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A Russian court on Friday rejected a $16 billion claim against BP PLC filed by an obscure minority shareholder in BP's Russian venture, TNK-BP.
The court victory may have softened the blow that BP sustained when Rosneft dropped it as a partner in developing Russia's untapped Arctic oil and gas riches. The multibillion dollar deal broke down after TNK-BP's Russian billionaire shareholders blocked it, claiming that BP should be pursuing it through TNK-BP.
The Arbitration Court in the Tyumen region in Siberia on Friday dismissed two motions filed by a group of minority shareholders led by Andrei Prokhorov, who owns 0.0000106 percent in TNK-BP. The lawsuits are a $13 billion claim against BP and a $2.8 billion suit against two BP-nominated directors on TNK-BP's board.
Prokhorov and other shareholders claimed that BP and its representatives damaged TNK-BP's interests by failing to include the Russian venture in the Arctic deal with Rosneft.
BP's Russian partners in TNK-BP have denied any connection to the minority shareholder's suit. The claim was the reason why Russian police raided BP's office in August, which happened just days after Rosneft teamed up with ExxonMobil to develop the Arctic. |
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Ala. county files for largest municipal bankruptcy
Breaking Legal News |
2011/11/10 01:39
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Alabama’s most populous county filed what became the largest municipal bankruptcy in U.S. history in an effort to retake control of its beleaguered sewer system and wipe away as much of its whopping $4.15 billion in debt as possible.
Jefferson County’s Chapter 9 filing on Wednesday gives it protection from creditors while it develops and negotiates a plan for adjusting its debts. It could accomplish that by extending debt maturities, reducing the amount of principal or interest, or refinancing the debt by obtaining a new loan.
Perhaps the biggest is the potential impact on the county’s 658,000 residents, who could be asked to pay higher sewer rates. Officials say it’s too early to assess the full impact, though bankruptcy filings can lead to layoffs, tax increases, pension reductions for public workers, and spending cuts on things like schools and roads. |
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Pensions the latest political risk for RI governor
Breaking Legal News |
2011/10/31 07:43
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In 10 months in office, Gov. Lincoln Chafee has managed to anger an impressive assortment of constituencies: business leaders and organized labor, medical marijuana advocates and critics of illegal immigration.
It's been a bumpy ride for the nation's only independent governor, who insists he's only doing what is necessary to stabilize government finances and heal the state's frail economy. But so far Chafee is winning criticism faster than compliments, a risky move for a politician without a party elected by less than half of Rhode Island's voters.
"This is a tough year — there are no surprises there," Chafee told the Associated Press during a recent interview. "This year's budget was one of the worst. ... We're facing a very difficult economy. My belief is the status quo is unacceptable here in Rhode Island. Changes have to be made."
There's no question Chafee took office during one of the most challenging times in Ocean State history. The state's jobless rate remains stubbornly high at 10 percent. The financially troubled city of Central Falls was forced to seek bankruptcy protection. A state budget deficit that once stood at $300 million led to difficult spending cuts even as the state's long-looming pension crisis further destabilized government coffers. |
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