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Court takes strike option from Northwest attendants
Court Watch | 2007/03/30 20:02

Northwest Airlines Corp. flight attendants can't strike over pay cuts at the bankrupt carrier, a U.S. appeals court said, upholding a federal judge's ruling. "Although this is a complicated case, one feature is simple enough to describe: Northwest's flight attendants have proven intransigent in the face of Northwest's manifest need to reorganize," a three-judge panel of the U.S. 2nd Circuit Court of Appeals said Thursday.

The ruling gives Northwest the advantage in stalled talks with attendants, who hoped to gain leverage with the chance to strike the airline. They're balking at $195 million in annual pay and benefit cuts imposed as the carrier works toward a second-quarter bankruptcy exit.

Northwest enacted the cuts July 31 after the union for its 9,300 attendants rejected two contracts negotiated by their leaders. The savings are part of the Eagan, Minn.-based airline's $1.4 billion in annual reductions in labor spending.

Northwest said in a statement that it was pleased with the ruling and that it hoped to reach a consensual agreement with the Association of Flight Attendants-CWA.

The union was "very surprised" by the decision, spokesman Ricky Thornton said, and the group is considering whether to appeal.

The union wants the National Mediation Board that governs airline labor disputes to "release" it from talks with Northwest, triggering a 30-day countdown to a possible strike. The sides last met face to face Feb. 2, and no new talks are scheduled. The attendants are urging federal lawmakers to press the mediation board to grant the release.

Unlike Northwest's other unions, the attendants don't have a claim in the airline's bankruptcy. The group would have had a $182 million claim had it ratified a contract in 2006. Thornton said there is a risk the attendants will get nothing if they don't reach an agreement before Northwest exits bankruptcy.

In its ruling, the appeals court said the U.S. Railway Labor Act "forbids an immediate strike when a bankruptcy court approves a debtor carrier's rejection of a collective-bargaining agreement" that is subject to the act and allows imposition of new terms.

"For airline unions, this is a big setback," said John Gallagher, a lawyer for the Air Transport Association, the Washington-based trade group for major U.S. airlines.

Northwest filed for bankruptcy Sept. 14, 2005, the same day as larger rival Delta Air Lines Inc. Delta expects to exit bankruptcy by April 30.



California police officer Sues to Compete in Pageant
Court Watch | 2007/03/30 02:53

The city of Chula Vista has issued a response to a lawsuit filed by a police officer who wants to compete in beauty pageants.

Deana Mory is currently representing California in the Ms. United States beauty pageant. But she is also a police officer who patrols the streets of Chula Vista.

She told NBC police administrators said if she competes she could be reprimanded or fired because prize money and gifts from the pageants violate city police.

Mory said she would refuse the money if she won the national title, but the city did not accept her compromise.

As a result, Mory and the Police Officers Association filed a lawsuit against The Chula Vista Police Department.

Wednesday night, Liz Pursell from the city of Chula Vista released a statement saying, "There is no merit to the allegations. Ms. Mory did participate in the pageant. The city is in the process of responding to the second lawsuit. We anticipate filing a motion seeking a judgment in favor of the city."

The beauty pageant is in July, and Mory said she plans on taking part.



Mental health center to repay $556687
Court Watch | 2007/03/29 05:06

A nonprofit provider of mental health services paid nearly $557,000 to settle allegations of improper billing to government health programs, the state attorney general's office said yesterday.

Tri-City Mental Health Center began reviewing employee complaints about irregularities in its government claims practices in 2003, and the nonprofit's board ordered an outside audit, Massachusetts Attorney General Martha Coakley said.

Tri-City reported the improper billing to the government in late 2004, and was never charged.

State and federal investigators found Tri-City Mental Health billed the state Medicaid program and the state Department of Mental Health for psychiatric services that were never provided or couldn't be documented.

The improper billing occurred for more than two years, starting in Sept. 2001 at a center in Malden.

At least one manager at the Malden office was fired as a result of Tri-City's internal investigation, Coakley said.

Ellen Dalton, a manager at Tri-City, said the improperly received government payments were used to fund the nonprofit's operations, not for any personal use by its nearly 500 employees.

Dalton said Tri-City set aside cash from recent years' operations, and has paid the $556,687 settlement total in full.

"The agency is ready to move forward, and no services will be disrupted," she said.

The nonprofit, which began operations in the 1960s, runs mental health centers in the neighboring communities of Malden, Medford, and Everett.

The settlement total equals the amount of money that investigators found had been improperly billed, plus interest, according to Dalton.

Under the settlement, Tri-City agreed to ensure future compliance with rules governing Medicare reimbursement.

The settlement relieves Tri-City and its board of any civil or administrative liability.

Coakley said Tri-City "has cooperated fully with the investigation."



Federal judge dismisses Rumsfeld torture lawsuit
Court Watch | 2007/03/28 20:21

The US District Court for the District of Columbia Tuesday dismissed a lawsuit against former US Secretary of Defense Donald Rumsfeld for authorizing torture and abuse of detainees by US personnel in Iraq and Afghanistan. The suit asserted that Rumsfeld bears direct responsibility for detainee abuse and that his actions violated the US Constitution, federal statutes and international law. Chief Judge Thomas Hogan based the dismissal on the immunity of government officials from lawsuits and the premise that US constitutional rights do not apply overseas. While noting that the allegations of torture were "horrifying," Hogan concluded that policy considerations counsel against permitting government officials to be sued for political decisions.

The suit was brought by the American Civil Liberties Union (ACLU) and Human Rights First, which had previously sued Rumsfeld and other military officials in 2005 on behalf of eight former detainees. A war crimes action is also pending against Rumsfeld in Germany, where the German Federal Prosecutor is using Germany's universal jurisdiction law to investigate similar allegations.



Cat owners sue in California over pet food recall
Court Watch | 2007/03/28 09:14

Two Los Angeles residents have filed a lawsuit against Menu Foods of Ontario, Canada, alleging the cat food company is to blame for their cats' recent health problems, according to court papers. The lawsuit, which seeks class action status, is asking for unspecified damages.

Kaye Steinsapir said she thought she was feeding her cat, Lila, one of the healthiest, most nutritious cat foods available.

"Lila was a healthy, vibrant cat without any medical conditions," said the lawsuit filed Tuesday in Los Angeles Superior Court. But in recent weeks, Lila began vomiting, drinking an excessive amount of water and was eventually diagnosed with acute kidney failure, the lawsuit said.

Gregory Helmer, a Los Angeles attorney retained by Steinsapir and Lois Grady of Sacramento, California, who alleges her cat, Riley, also became ill after eating tainted cat food, filed the lawsuit "on behalf of themselves and all others similarly situated."

Menu Foods recalled on March 16 several brands of dog and cat food products nationwide. Scientists at the New York State Food Laboratory last week identified the rodent poison aminopterin as the likely culprit in a scare that prompted the recall of 95 brands of "cuts and gravy" style dog and cat food by Menu Foods of Ontario, Canada.

On Tuesday, a survey by the Veterinary Information Network, which counts 30,000 veterinarians and veterinary students as members, said the number of reported kidney failure cases had already grown to more than 471. The network's founder, Paul Pion, a California veterinarian, said 104 animals have died.

The company has so far confirmed the deaths of 15 cats and one dog. Other deaths have been reported anecdotally around the United States, but Menu Foods has not confirmed them.



Supreme Court hears antitrust case
Court Watch | 2007/03/27 08:49
The US Supreme Court heard oral arguments Monday in the case of Leegin Creative Leather Products, Inc. v. PSKS, Inc., 06-480, in which a clothing manufacturer requests the Court to overrule a 1911 Supreme Court decision, Dr. Miles Medical Co. v. John D. Park & Sons Co. that held any minimum price agreement to be per se illegal and anti-competitive. In the present case, manufacturer Leegin ceased supplying goods to retailer PSKS after PSKS lowered its prices beneath the minimum set by the manufacturer. Leegin argued that such agreements foster competition among smaller retailers by preventing large retailers from setting extremely low and predatory prices. The trial court found that Leegin's actions violated the Sherman Antitrust Act and awarded PSKS treble damages. The US Court of Appeals for the Fifth Circuit affirmed the decision in favor of PSKS. Associate Justice Stephen Breyer speculated that dropping the per se rule would raise prices, while Associate Justice Antonin Scalia suggested that some consumers prefer to pay more in return for greater customer service.


High court takes up price-fixing case
Court Watch | 2007/03/25 10:04

When a family-owned retailer in Texas lowered prices on women's fashion accessories, the manufacturer cut off the store's supply. Phil and Kay Smith sued and won in a case now before the Supreme Court that asks whether price-fixing always is illegal. Arguments before the justices were scheduled for Monday. The manufacturer, Leegin Creative Leather Products Inc. in City of Industry, Calif., is challenging a 1911 Supreme Court ruling that automatically classifies agreements to set minimum prices as anticompetitive.

Leegin says that by maintaining price consistency among niche retailers it sells to, stores can offer improved customer service. That, says the manufacturer, enables smaller stores to compete against rival brands sold by bigger cut-rate competitors.

At issue is whether price floors such as Leegin's always should be treated as illegal or evaluated case by case to see if they are pro-competitive.

The Smiths say they lowered prices by up to 20 percent because several other retailers selling Leegin's Brighton brand also were lowering prices. The Smiths say they and the competing stores were threatened by Leegin with being cut off unless they raised their prices again. Alone among the threatened stores, the Smiths refused to cave in.

"When Leegin stopped shipping to us, my wife and I lost half our business," Phil Smith said in an interview. "Kay and I are back to the same size store we started with 21 years ago."

Discounters and consumer groups say consumers will suffer if the Smiths lose.

"In the Internet age, this is a dagger at the heart of the most consumer-friendly environment we've seen in generations," said Mark Cooper, a spokesman for the Consumer Federation of America.

"Would there ever have been a Sears & Roebuck, an A&P, a Walgreens, a Kmart or a Wal-Mart" absent a ban on minimum pricing agreements? the federation asked in court papers filed in support of Kay's Kloset.

In Leegin v. Kay's Kloset, the Bush administration says it is inappropriate to automatically prohibit price floor agreements when they are not necessarily anticompetitive.

Thirty-seven state attorneys general oppose the administration.



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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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