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Appeals court to hear drilling moratorium case
Breaking Legal News | 2010/07/08 09:16

A federal appeals court is set to hear the Justice Department's bid to delay a judge's decision to overturn a six-month deepwater drilling moratorium.

A three-judge panel from the 5th U.S. Circuit Court of Appeals in New Orleans is scheduled to hear arguments Thursday from lawyers on both sides of a lawsuit filed by companies that oppose the Obama administration's temporary drilling ban.

The Interior Department says it halted new permits for deepwater projects and suspended drilling on 33 exploratory wells to protect the Gulf of Mexico from another environmental disaster while it studies the risks of deepwater drilling.

The government is asking the 5th Circuit panel for an order that would keep the moratorium in place while they appeal last month's ruling.



Ky. man pleads guilty to threatening Obama in poem
Breaking Legal News | 2010/07/07 06:14

A Kentucky man has pleaded guilty to writing and posting on a white supremacist website a poem threatening the assassination of President Barack Obama.

Johnny Logan Spencer Jr. of Louisville entered an open plea — admitting guilt without a deal with prosecutors — Tuesday in U.S. District Court in Louisville.

The 28-year-old Spencer's sentencing is set for Nov. 2. The charge carries a maximum of five years in federal prison, a $250,000 fine and three years of supervised release.

U.S. Secret Service Special Agent Stephan M. Pazenzia said in an affidavit that Spencer wrote and posted the poem, titled "The Sniper," on a page called NewSaxon.org.

The poem describes a gunman shooting and killing a "tyrant" later identified as the president, setting off panic.



Band penalized for copied riff in 'Down Under' hit
Breaking Legal News | 2010/07/06 09:40

A judge ordered Australian band Men at Work on Tuesday to hand over a portion of the royalties from their 1980s hit "Down Under," after previously ruling its distinctive flute riff was copied from a children's campfire song.

But the penalty — 5 percent of the song's royalties — was far less than the 60 percent sought by publishing company Larrikin Music, which holds the copyright for the song "Kookaburra Sits in the Old Gum Tree."

"Kookaburra" was written more than 70 years ago by Australian teacher Marion Sinclair for a Girl Guides competition, and the song about the native Australian bird has been a favorite around campfires from New Zealand to Canada.

Sinclair died in 1988, but Larrikin filed a copyright lawsuit last year. In February, Federal Court Justice Peter Jacobson ruled Men at Work had copied their song's signature flute melody from "Kookaburra."

On Tuesday, Jacobson ordered Men at Work's recording company, EMI Songs Australia, and "Down Under" songwriters Colin Hay and Ron Strykert, to pay 5 percent of royalties earned from the song since 2002 and from its future earnings. A statute of limitations restricted Larrikin from seeking royalties earned before 2002.



WTO rules some EU Airbus subsidies illegal
Breaking Legal News | 2010/07/05 09:27

The WTO on Wednesday dealt the European Union a painful blow in a transatlantic trade row over multibillion dollar subsidies for US and European aircraft, ruling some state support for Airbus illegal.

Rival US airplane manufacturer Boeing claimed a "sweeping legal victory" and said it would require Airbus to repay four billion dollars in illegal subsidies, a claim disputed by the European aerospace giant.

Bringing to a head one of the most bitter trade disputes between the two trading powers, the World Trade Organization disputes panel upheld parts of a US complaint in the marathon legal battle.

In a 1,200-page ruling made public for the first time, the global trade referee said EU states should halt some aid for the development and export of Airbus airliners.

It notably accepted three out of seven claims by Washington that key launch aid amounted to export subsidies, which are illegal under WTO rules.



New trial ordered in NYC for ex-food service boss
Breaking Legal News | 2010/07/02 13:14

A federal appeals court ordered a new trial Thursday for the former chief marketing officer of one of the nation's biggest food products distributors, saying errors by a judge make it necessary to dissolve the conviction and the seven-year prison term that followed.

The 2nd U.S. Circuit Court of Appeals ordered the new trial for Mark Kaiser after concluding that the trial judge erred in his instructions to the jury in November 2006, resulting in a flawed trial.

Kaiser, 55, of Ellicott City, Md., has been free on bail since he was sentenced three years ago to seven years in prison.

A lawyer for Kaiser did not immediately return a telephone message for comment. Prosecutors also did not immediately comment.

Kaiser was convicted of securities fraud, conspiracy and false filing after prosecutors said he and others enhanced their own bonuses by boosting the company's earnings $800 million from 2000 to 2003 by reporting fake rebates from suppliers.

Kaiser worked for U.S. Foodservice Inc., a former subsidiary of supermarket giant Royal Ahold NV. Ahold sold U.S. Foodservice Inc. in 2007 to a group of buyout firms led by KKR & Co. LLP. Defense lawyers argued at trial that Kaiser was kept in the dark about any financial misdeeds that occurred at the company.

Netherlands-based Ahold's U.S. properties include the Stop & Shop and Giant supermarket chains. U.S. Foodservice is one of the largest distributors of food products in the country, providing to restaurants and cafeterias.



Court lets Vatican-sex abuse lawsuit move forward
Breaking Legal News | 2010/07/01 01:54

The Supreme Court won't stop a lawsuit that accuses the Vatican of transferring a priest from city to city despite repeated accusations of sexual abuse.

The high court on Monday refused to hear an appeal from the Holy See, the legal name for the Vatican.

The Vatican wanted the federal courts to throw out the lawsuit that seeks to hold the Roman Catholic Church responsible for moving the Rev. Andrew Ronan from Ireland to Chicago to Portland despite the sex abuse accusations.

Sovereign immunity laws hold that a sovereign state — including the Vatican — is generally immune from lawsuits.

But lower federal courts have ruled in this case that there could be an exception to the Foreign Sovereign Immunity Act that could affect the Vatican. A judge ruled there was enough of a connection between the Vatican and Ronan for him to be considered a Vatican employee under Oregon law, and that ruling was upheld by the 9th U.S. Circuit Court of Appeals in Sacramento.

According to court documents, Ronan began abusing boys in the mid-1950s as a priest in the Archdiocese of Armagh, Ireland. He was transferred to Chicago, where he admitted to abusing three boys at St. Philip's High School.

Ronan was later moved to St. Albert's Church in Portland, Ore., where he was accused of abusing the person who filed the lawsuit now under appeal. Ronan died in 1992.



SEC paying $755K to settle with fired lawyer
Breaking Legal News | 2010/06/30 09:41

The Securities and Exchange Commission is paying $755,000 to settle a lawsuit with a former staff lawyer who accused the agency of blocking his investigation of a prominent hedge fund.

The SEC settlement of Gary Aguirre's wrongful termination claim resolved a long-running controversy that prompted scrutiny in Congress and by the SEC inspector general. The settlement was announced Tuesday by the Government Accountability Project.

Aguirre was fired by the SEC in September 2005. He went public in 2006 with allegations of interference by SEC officials in the probe of Pequot Capital Management and improper deference to a Wall Street executive whom Aguirre wanted to interview. That prompted an investigation by Republican staff of the Senate Judiciary and Finance Committees.

The SEC initially took no enforcement action in the case, which was started in 2004 and closed in 2006. The agency reopened it in January 2009 after documents emerged in a divorce proceeding showing that Pequot began paying $2.1 million to a key witness in the case in mid-2007.

Last month, Pequot and its founder and chairman, Arthur Samberg, agreed to pay a total of $28 million to settle the SEC's charges of insider trading of Microsoft Corp. shares. The SEC alleged that the hedge fund traded Microsoft shares on confidential information provided by a former employee of the technology giant whom it later hired.

Pequot, whose core hedge fund was liquidated last year, and Samberg, a well-known money manager and philanthropist, neither admitted nor denied wrongdoing.

The $755,000 being paid to Aguirre represents his salary for four years and 10 months plus his attorneys' fees, according to the Government Accountability Project, a group that works with whistleblowers. The group said it may be the largest settlement of its kind.

Under terms of the settlement, which was approved by a judge at the federal Merit Systems Protection Board, Aguirre agreed to drop two related cases against the SEC.



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