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Law firm wants school district to pay $1.8M
Legal Business | 2007/09/07 05:53

The law firm that represented parents in their case against Seattle Public Schools' race-based admissions policy before the U.S. Supreme Court is seeking nearly $1.8 million in fees from the school district. The Supreme Court ruled 5-4 in June that the policy, which used race as one of several "tiebreakers" in deciding who gets into popular high schools, was unconstitutional.

Justice Anthony Kennedy, who voted with the majority, said in a separate opinion supporting his decision that racial balance is a worthy goal for school districts and that districts can use other methods to achieve it.

That opinion has both the district and the parent group, Parents Involved in Community Schools, declaring victory. It's one reason the district, which spent about $434,000 on its portion of the seven-year battle, doesn't believe it should have to pay the plaintiffs' fees.

Technically, the parents group still has to get a U.S. district judge to declare them the "prevailing party," said Seattle Public Schools attorney Shannon McMinimee.

McMinimee says it's "disingenuous" for the law firm, Davis Wright Tremaine, to go after money when the firm took the case pro bono. But firm spokesman Mark Usellis said "pro bono" means their clients don't have to pay.

"The thing that's really important to us in a civil-rights case is that Congress specifically and explicitly wrote into the law that if the government is found to have violated citizens' civil rights, then the prevailing party should seek fee recovery," he said.

Most governments can argue, as Seattle Public Schools is, that they don't have much money. But going after the fees helps deter other government bodies from violating civil rights, Usellis said.

The parents who sued the district in 2000 did not seek damages but asked the court to force Seattle to stop using the race-based tiebreaker that prevented their children, who are white, from attending Ballard High School. The district did, in 2002, but continued to fight for the policy in court, eventually making it all the way to the U.S. Supreme Court last year.

The 9th U.S. Circuit Court of Appeals will decide whether to award the fees to the firm. If the firm wins, the fees likely wouldn't be covered by the district's insurance carrier, McMinimee said. So the money would have to come out of the district's $490 million general-fund budget.



New York law firm hired in Conecuh landfill fight
Legal Business | 2007/09/07 03:57

A grassroots organization formed to fight a proposed 5,100-acre landfill in Conecuh County has hired Robert F. Kennedy Jr.'s law firm, which specializes in environmental cases, Kennedy's law partner said Thursday. Word that Kennedy & Madonna agreed to work with the opposition came a week after Conecuh County commissioners stepped out of an executive session and voted to ask state legislators to include the landfill issue on the primary ballot in February.

"This one is a complex case," said Kevin Madonna, "We do a lot of cases involving communities where industry has done harm to drinking water supplies. This case is a chance to protect the community before damage is incurred."


Madonna said the large landfill proposed for the rural community in Conecuh is "a classic case of an out-of-state corporate interest bringing garbage in from out of state and dumping it on the people there, taking the money and running. It is a fundamentally unfair situation for the people there."

Phillip Kinney, who works for the public relations firm Matrix in Montgomery, is a spokesman for Conecuh Woods whose principals are based in the Tampa Bay, Fla., area. He disagreed with Madonna's characterization of the project.

"Conecuh Woods is not an out-of-state corporation," Kinney said, "it is an Alabama LLC, which was incorporated by Jimmy Stone and David Kirby. No other corporation or individuals have any interest in Conecuh Woods."

Kinney said that Conecuh Woods will be a "state-of-the-art economic development project" generating construction jobs, permanent jobs and revenue for Conecuh County. The money could be used to pave roads and help provide emergency services and programs for children and seniors, he said.

Developers have said the project could bring more than $250 million over more than 60 years and would provide about 15 jobs.

Controversy began in Conecuh and surrounding counties even before the landfill developers made a proposal. Several municipal governments and the Monroe and Escambia county commissions passed resolutions urging the Conecuh commission to refuse the landfill.

Though the commission voted in January against the project, that vote was not binding.

Once the developers make formal application, the County Commission can vote yes or no after a public hearing. If the commission takes no action, the landfill is automatically approved after 90 days.

Commissioners said the outcome of the referendum would not be binding.

Johnny Andrews, president of the citizen's group, said he was satisfied that the majority of Conecuh people oppose the landfill.

"I was startled the commissioners would ask for this to be on the ballot," Andrews said. "Why waste taxpayers' money when it is clear to everyone most people are against it?"

Madonna said his firm was "evaluating our options with respect to the commission's decision to place the issue on the ballot."

Kinney said Conecuh Woods considered the request for a vote to be good news. "Conecuh Woods applauds the county commissioners' decision to let the voters have a voice in their future and we look forward to the opportunity to speak directly to the citizens of Conecuh County."



Fugitive Political Donor Misses Court Date
Legal Business | 2007/09/06 07:31

Norman Hsu, the fugitive fund-raiser for Senator Hillary Rodham Clinton and other Democrats who turned himself in to California authorities last week, failed to show up for a court appearance today, and his lawyer said Mr. Hsu’s whereabouts were unknown. Mr. Hsu, who had been free on $2 million bond, was scheduled to appear in Superior Court in Redwood City at 9 a.m. Pacific time to surrender his passport. But when the appointed time came and went with no sign of Mr. Hsu, his lawyer and prosecutors met in chambers with the judge, who then announced he was revoking Mr. Hsu’s bail and issuing a new warrant for his arrest.

"We do not know where he is at this moment," said James Brosnahan, Mr. Hsu’s lawyer. "We hope he will be court today."

Mr. Hsu’s absence seemed to be a repeat of his disappearing act in 1992, when he skipped out on a sentencing hearing related to his conviction in a fraud case, only to re-emerge years later as a major Democratic fund-raiser in New York. Since 2003, he personally contributed $600,000 to Democrats around the country and raised hundreds of thousands more, frequently hosting fund-raising parties and getting his picture taken with prominent politicians.

He was a designated "Hillraiser" for Mrs. Clinton’s presidential campaign, meaning he had bundled over $100,000 in contributions from others. Last week, the Clinton campaign said it was given to charity $23,000 Mr. Hsu had donated, and was reviewing other contributions he helped raised for any evidence of illegality.

Also last week, Mr. Hsu resigned from the board of the New School in New York, where he had served as a trustee and a member of the board of governors of the Eugene Lang College there.

Mr. Brosnahan told reporters outside the courthouse in Redwood City that he had sent an assistant to Mr. Hsu’s apartment in New York on Tuesday to retrieve Mr. Hsu’s passport, but it could not be found.

Ralph Sivilla, an assistant California attorney general, said the government had believed that the $2 million bail and Mr. Hsu’s agreement to remain in the country were sufficient to ensure that he would not flee.

"Those circumstances seemed to suggest he was not a flight risk," Mr. Sivilla said. "I don’t know at this point what our next step will be."

Asked whether Mr. Hsu could have left the country, Mr. Sivilla said "I would imagine he has the capability," although he added that he had no reason to believe that Mr. Hsu had done so.

Mr. Hsu’s latest disappearance deepens the mystery surrounding much of his life since he vanished 15 years ago. He apparently spent part of the 1990s in his native Hong Kong, where he managed a garment company, before returning to the United States and taking up residences in California and New York.

On campaign finance reports, he has listed his occupation as an executive at an assortment of companies that appear to be connected to the apparel trade, although efforts to verify his involvement with them have proven fruitless. An address he has given as his office in New York’s garment district seems to be little more than a mail drop, and people who work nearby have said they rarely see him.



McGraw Hill's Bahash Faces Purported Suit
Legal Business | 2007/08/29 05:42

O'Rourke Katten & Moody said it filed a lawsuit against McGraw-Hill Cos.'s chief financial officer Robert J. Bahash on behalf of shareholders who bought the company's common stock between July 25, 2006 and Aug. 15. The law firm alleged that Bahash violated federal securities laws and that his misleading statements or omissions concerning the company's business and operations, particularly that its Standard & Poor's unit assigned "excessively high" ratings to bonds backed by subprime mortgages, artificially inflated its stock.

McGraw-Hill is a New York-based financial and education information services company. McGraw-Hill had no immediate comment because it said it wasn't aware of the suit.



Vick may face long road back to the gridiron
Legal Business | 2007/08/27 04:40
By agreeing to plead guilty for his role in an illegal dogfighting outfit, Atlanta Falcons quarterback Michael Vick took the first step toward putting 1915 Moonlight Road - the home of Bad Newz Kennels - behind him.

But getting back to the gridiron will be an uphill battle, even for a superstar who is one of the National Football League's top draws, analysts say. Although other NFL players have returned to the game after brushes with the law, Mr. Vick's involvement in dogfighting and allegations that he drowned underperforming dogs have repelled many Americans.

"The situation with Vick is about gambling, it's about cruelty, and it's coming at a time when there's a lot of focus on athletes' behavior," says David Carter, director of the Sports Business Institute at the University of Southern California. "I don't see how he's able to [come back] with all those things in mind."

A recent NBC poll found that 34 percent of respondents had a very negative perception of Vick, while only 1 percent had a very positive perception.

Vick's football career bloomed but never quite blossomed after he was picked first by Atlanta in the 2001 draft. His scrambling ability gave opposing defenses fits. Last year, he became the first NFL quarterback to rush for 1,000 yards in a season. Although the Falcons have had up-and-down seasons under his leadership, Vick became a serious NFL fan favorite. Only wide receiver Randy Moss sold more jerseys.

But the same year he joined the NFL, Vick opened Bad Newz, indictments say. Allegations say that, on at least three occasions, Vick traveled between Atlanta, South Carolina, and Virginia to fight the dogs for money, with some stakes rising to over $10,000 per fight.

A new federal law that makes it a felony to take fighting dogs across state lines carries a maximum sentence of five years in prison and a fine of up to $250,000. Vick's guilty plea most likely would reduce his jail time. Two of his codefendants in their plea agreements received sentences of 12 to 18 months. Theoretically, that length of sentence would allow Vick to return to the NFL for the 2009 season.

But Vick's admission of guilt also adds pressure to already stressed relationships with Falcons owner Arthur Blank, NFL commissioner and ?ber-disciplinarian Roger Goodell, and football fans - all of whom have previously heard Vick plead his innocence.

"Michael Vick is going to have to make a significant act of contrition and embrace a new way of life, and show that he's worthy of redemption to both the NFL and the fans," says Rich Hanley, a pop-culture expert at Quinnipiac University in Hamden, Conn.
To be sure, several other NFL players have come back from felony cases, to various levels of success. In return for testimony against the prime suspects, authorities allowed Baltimore Ravens linebacker Ray Lewis to plead guilty to a misdemeanor charge for obstruction of justice in a trial resulting from a double-slaying at an Atlanta Super Bowl party in January 2000. Mr. Lewis missed the Pro Bowl that year, but returned to not just rebuild his name, but bolster his profile and play in subsequent seasons.
Players like Bam Morris, Art Schlicter, Leonard Little, and Tamarick Vanover have all returned to play after facing serious criminal charges. Mr. Vanover got a second chance with the Chargers in 2002 even after admitting to undercover FBI agents that he set up a $40,000 drug deal.

"My cynical self says that you can do just about anything in the NFL as long as you perform on the field," says Stephen Mosher, a sports management expert at Ithaca College in New York.

In allowing such second chances, sports experts say, both the league and the fans implicitly acknowledge that players are sometimes recruited from the fringes of society and often from poor, rural areas in the South where activities such as dogfighting, while not legal, may be somewhat acceptable.

"You're not [always] going to get choirboys playing this game, it's that simple," says Mr. Mosher. "At the same time, Mike Vick touched the third rail: You don't mess with people's pets."

The NFL is conducting its own investigation. "We totally condemn the conduct outlined in the charges, which is inconsistent with what Michael Vick previously told both our office and the Falcons,"the league said in a statement. The Vick case is the biggest test yet of Commissioner Goodell's push to clean up the league.

The pigskin wunderkind from Newport News, Va., may have to go beyond contrition to win back his lost public - not to mention as much as $100 million in lost compensation and endorsements.

"I don't know of anything quite like this in sports history, so it's hard to say how the public will eventually react," says Mr. Hanley. "Coming back [for Vick] will be a process, not an event."

It's dubious that Vick will return to the Atlanta Falcons. Any general manager who considers Vick in the future will have to weigh his explosive abilities against a potential PR nightmare. And what city is looking for a quarterback? Jacksonville and Tampa might need someone in 2009, but could they find a role for a left-handed tosser with limited playoff experience, even if he came as a bargain?

"Mike Vick doesn't quite fit into that thuggish perception that we have of NFL players," says Alan Caruba, a public relations consultant in South Orange, N.J. "But will this episode sober him sufficiently to understand who he is and his place in this world? That's anybody's guess."


Ryan hopes to pick his prison
Legal Business | 2007/08/23 04:22
At the same time that former Gov. George Ryan wages a last-ditch battle to overturn his federal fraud conviction, he is wrangling for his choice of federal prisons should the appeal fail. Prison officials assigned Ryan to the Federal Prison Camp in Duluth, Minn. But Ryan has asked officials to reassign him to a similar facility in Oxford, Wis., Ryan's attorney, former Gov. James Thompson, said Wednesday.
The conditions would be comparable, but the Wisconsin facility is closer to family, Thompson said.

"His wife is elderly, and it will not be easy for her to make a trip in any event," said Thompson, speaking after a hearing Wednesday in federal court in Chicago.

"If there is some rule that prohibits him from going to Oxford, then I suppose they would have to make the trip to Duluth, which is twice as far," Thompson said.

On Tuesday, a three-judge panel of the 7th U.S. Circuit Court of Appeals rejected Ryan's appeal in a 2-1 vote, but it allowed him to remain free on bail while the full court -- made up of 11 judges -- decides whether to review the decision.

At the hearing Wednesday, U.S. District Judge Rebecca Pallmeyer ruled that if the full court declines to hear the appeal, Ryan and co-defendant Lawrence Warner must report to prison within four business days after the appellate court issues its official order.

That official order probably would come within seven days after the full court's decision was announced, lawyers said.

Ryan was convicted in April 2006 on charges that as secretary of state and governor, he doled out sweetheart deals to Warner and other friends and used state resources and employees for political gain.

Ryan was sentenced to 6 1/2 years in prison, while Warner, who also was convicted, was sentenced to almost 3 1/2 years.

The Federal Bureau of Prisons considers requests to place a criminal defendant in a particular prison but doesn't comment publicly on pending requests, spokesman Michael Truman said Wednesday.

Prison officials, he said, decide placement by looking at the space available and factors such as an inmate's age, security designation, length of sentence, history of violence or need for substance-abuse treatment.

Federal prison camps have dormitory-style housing and limited or no fencing, Truman said. Warner, a businessman and Ryan confidant, has been assigned to a federal facility in Colorado, his lawyers said in court. In papers filed Tuesday before the court allowed him to remain free on bail, Warner sought to delay his surrender because of upcoming cataract surgery.

At the hearing on Wednesday, Thompson argued that if Ryan's latest appeal failed, he would need time to put his affairs in order.

But Assistant U.S. Atty. Joel Levin said 72 hours should be enough and that no further court hearings would be needed.

"It seems to me that now is the time the arrangements need to be made," Levin told the judge. "We shouldn't be back in front of you."

Ryan's hopes for a hearing by the full court were buoyed by a blistering dissent by Judge Michael Kanne, who said juror controversies marred the historic six-month trial and deprived Ryan and Warner of a fair trial.

The full appellate court probably will decide whether to hear Ryan's appeal within six to eight weeks. If they decide to take the case, they may take several more months to read the briefs, hold an oral argument and render a decision.

If the appeal fails, Ryan could ask the U.S. Supreme Court to take his case and grant him bail while the matter is pending, Thompson said. But the nation's highest court agrees to hear very few cases.

Thompson didn't rule out seeking a presidential pardon if the Supreme Court refused to take the case, though he said that option hasn't been given any consideration at this point.


Law firm retained despite 'illegal' meeting
Legal Business | 2007/08/22 08:27

Although its actions were called illegal and one of its members walked out in agreement with that charge, the Common Council voted Tuesday night to retain a law firm to represent the council in arbitration over the police contracts. The council also voted to recommend to the mayor that Vincent Leffredo and Gerald Daley, members of the council, serve as witnesses during the arbitration.

The language of both resolutions was softened from the original after questions of legality under collective bargaining laws and the city charter were raised. Instead of "appointing" council members as witnesses for the arbitration, they were "recommended" to the mayor. And instead of representing the city, the lawyer approved to be retained by the council will simply advise the council members that were recommended to serve as witnesses.

As soon as the night's special council meeting was called to order, it was declared illegal by Deputy Mayor Joseph Bibisi. Bibisi was acting as chairman of the meeting because Mayor Sebastian N. Giuliano was absent in protest.

On Monday, Giuliano declared that everything on the agenda of the meeting was improper. The council does not have the power to appoint witnesses to the arbitration or retain a lawyer, Giuliano said.

Bibisi tried to block the meeting from going forward, citing that the mayor was not properly given notice, or served, making the meeting illegal.

If the meeting was illegal, anything decided in the meeting could be challenged by any member or the public or the police union, said Corporation Counsel William Howard.
Majority Leader Thomas Serra vehemently objected to this assertion and said the mayor had full knowledge of the meeting - that he, in fact, had told Giuliano of the meeting in person. Serra also cited an e-mail from the mayor's office to members of the council, about the meeting, sent on Aug. 10.

That Giuliano knew about that meeting wasn't enough to make it legal, Howard said.
"Notice has to be proper to make the meeting legal," Howard said. "This notice does not conform. The first thing anyone attacks is if the meeting was held legally."

Declaring the meeting illegal was called "pure and utter nonsense to circumvent the political process" by Councilman Vincent Loffredo. Thomas Serra called the actions of Giuliano and Bibisi attempts to shut the council out from negotiations and take away their fiduciary powers.

Despite Republican's protests, the meeting was declared legal by a vote and proceeded, although Councilman David Bauer, agreeing the meeting was illegal, walked out.

The proposed police contracts were voted down by the council in June in a 9-3 vote. The council called this meeting because its members wanted to have the voice of the nine that voted it down heard at the arbitration table, Serra said.



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