The Supreme Court has agreed to consider reinstating the sex trafficking and forced labor conviction of a man dubbed the "S&M Svengali."

The justices said Tuesday they will hear an appeal filed by federal prosecutors in the case of Glenn Marcus, convicted after a sensational trial that dealt with mutilation and extreme humiliation. Arguments will be held early in 2010.

Last year, the 2nd U.S. Circuit Court of Appeals ruled the conviction violated the Constitution because Marcus was convicted of breaking a law, the 2000 Trafficking Victims Protection Act, that wasn't in place when some offenses happened.

In September 2007, Marcus was sentenced to nine years in prison for abusing a woman he photographed for his Web site, which reveled in sadomasochism. She was identified only as "Jodi."

Justice Sonia Sotomayor took no part in the court's consideration of the case. She was on the appeals court panel that ruled in Marcus' favor and joined in the panel's decision. But she wrote separately to suggest that the ruling, though required by a string of 2nd Circuit cases, might not be in line with the Supreme Court's view of the case.

The ruling turned on authorities' use of the 2000 law to prosecute Marcus for incidents spanning from 1999 to 2001. Marcus' attorneys argued, and the court agreed, that the law was applied retroactively.

A Florida appeals court has chastised a judge for granting extensions in a foreclosure case for compassionate reasons.

The Third District Court of Appeal ruled last week that Circuit Judge Valerie Manno Schurr could not grant extensions solely on grounds of benevolence or compassion.

Schurr had given a Miami couple an extra month to sell their house. The judge said in court she understands times are bad and that she hates to see anyone lose a home.

The appeals judges ruled that the law doesn't allow compassion or benevolence alone to be used as the basis for such a decision. The court said the continuance was an abuse of judicial discretion and the one-month delay should not have been granted.

The house was sold at auction last week for $1.3 million.

President Barack Obama on Tuesday said he would nominate a pair of Northeastern judges to appeals court positions.

Judge Denny Chin, a district court judge for the Southern District of New York, and Rhode Island Superior Court Justice O. Rogeriee Thompson were tapped for positions. If confirmed by the Senate, Chin would serve as a judge in the 2nd Circuit, based in New York, and Thompson would serve in the Boston-based 1st Circuit.

"Judges Chin and Thompson have displayed exceptional dedication to public service throughout their careers," Obama said in a statement. "They have served on the bench with distinction in New York and Rhode Island, and I am honored to nominate them today to serve the American people on the United States Court of Appeals."

Chin was born in Hong Kong and moved to the United States at the age of 2. A Princeton University and Fordham Law School graduate, he clerked in the Southern District of New York and worked in private practice. He was an assistant U.S. attorney for four years before returning to private law.

Supreme Court justices on Tuesday indicated that a federal law aimed at graphic videos of dog fights and other acts of animal cruelty goes too far in limiting free speech rights.

The court heard argument on the Obama administration's appeal to reinstate a 10-year-old law that bans the production and sale of the videos. A federal appeals court struck down the law and invalidated the conviction of Robert Stevens of Pittsville, Va., who was sentenced to three years in prison for videos he made about pit bull fights.

Several justices suggested that the law is too broad and could apply, for instance, to people who make films about hunting.

"Why not do a simpler thing?" Justice Stephen Breyer asked an administration lawyer. "Ask Congress to write a statute that actually aims at the frightful things they were trying to prohibit."

But the lawyer, Deputy Solicitor General Neal Katyal, said Congress was careful to exempt hunting, educational, journalistic and other depictions from the law. Katyal urged the justices not to wipe away the law in its entirety, but to allow courts to decide on a case-by-case basis whether videos are prohibited.

When Congress passed the law and then-President Bill Clinton signed it in 1999, lawmakers were especially interested in limiting Internet sales of so-called crush videos, which appeal to a certain sexual fetish by showing women crushing to death small animals with their bare feet or high-heeled shoes.

The Supreme Court has left in place a court ruling that the Obama administration says will cost taxpayers at least $19 billion in royalties on energy leases in the Gulf of Mexico.

The justices declined Monday to hear the government's appeal of a ruling in favor of the Anadarko Petroleum Corp. involving eight deepwater leases the company holds in the gulf. The 5th U.S. Circuit Court of Appeals in New Orleans ruled that the Interior Department could not collect royalties from the leases, even as oil prices rose and companies began posting huge profits.

The leases were obtained between 1996 and 2000 by Kerr-McGee Corp., which Anadarko later acquired.

The case revolves around a 1995 law that gave oil and natural gas producers a break from paying royalties at a time when energy prices were extremely low. The law waived all royalty payments until a specific amount of oil and gas was produced.

Solicitor General Elena Kagan told the court that the Interior Department has the authority to lift the royalty relief once prices reach a certain level.

The ruling could affect other leases and prohibit the government from collecting royalties from other producers.

Investor Jeffry Picower, described as the biggest beneficiary of Bernard Madoff's fraud, is now being sued for $7.2 billion, $2 billion more than the trustee in the case demanded in May.

Picower, newly listed as one of the 400 wealthiest Americans by Forbes magazine, was complicit in the fraud, trustee Irving Picard said in court documents on Wednesday responding to the investor's motion to dismiss his lawsuit.

"Picower makes the paradoxical argument that he could not have been complicit in the Ponzi scheme because he made too much money from it," Picard wrote in the filing in U.S. Bankruptcy Court in New York.

"The unusual, if not unlawful activity in his accounts, including one negative net cash balance of approximately $6 billion at the time of Madoff's arrest, was clear evidence that something was seriously amiss."

Picower, 67, of Palm Beach, Florida, was listed 371st and worth $1 billion on the Forbes list published this week.

Weeds, glass, bricks, pieces of pipe and shingle splinters have replaced the knot of aging homes at the site of the nation's most notorious eminent domain project.

There are a few signs of life: Feral cats glare at visitors from a miniature jungle of Queen Anne's lace, thistle and goldenrod. Gulls swoop between the lot's towering trees and the adjacent sewage treatment plant.

But what of the promised building boom that was supposed to come wrapped and ribboned with up to 3,169 new jobs and $1.2 million a year in tax revenues? They are noticeably missing.

Proponents of the ambitious plan blame the sour economy. Opponents call it a "poetic justice."

"They are getting what they deserve. They are going to get nothing," said Susette Kelo, the lead plaintiff in the landmark property rights case. "I don't think this is what the United States Supreme Court justices had in mind when they made this decision."

Kelo's iconic pink home sat for more than a century on that currently empty lot, just steps away from Connecticut's quaint but economically distressed Long Island Sound waterfront. Shortly after she moved in, in 1997, her house became ground zero in the nation's best-known land rights catfight.

New London officials decided they needed Kelo's land and the surrounding 90 acres for a multimillion-dollar private development that included residential, hotel conference, research and development space and a new state park that would complement a new $350 million Pfizer pharmaceutical research facility.

Kelo and six other homeowners fought for years, all the way to the U.S. Supreme Court. In 2005, justices voted 5-4 against them, giving cities across the country the right to use eminent domain to take property for private development.