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Legal news from Wednesday, December 1, 2004 |
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Corporations & securities brief ~ SEC investigates Analog Devices
Amit Patel on December 1, 2004 1:57 PM ET

[JURIST] In Wednesday's corporations and securities law news, the SEC is investigating Analog Devices Inc. over stock option awards given to officers and directors over the past five years. The Boston Business Journal has more.
In other news, the SEC has subpoenaed The Chubb Corp. for information regarding loss-mitigation insurance products. New York Attorney General Eliot Spitzer also has subpoenaed the company for similar reasons. The company is expected to fully cooperate in the inquiry. AP has more.... Federal regulators have submitted another inquiry to Adolph Coors Co. over its proposed merger with Molson Inc. The merger is expected to go to a shareholder vote in December or January. Molson and Coors have a website dedicated to the merger. The Canadian Press has more.... A US District Court in Charlotte has ordered Fannie Mae to forfeit $6.5 million in gains received from McLean's First Beneficial Mortgage Co. under fraudulent circumstances. Fannie also had its assets at the Federal Reserve Bank of New York temporarily frozen pending an investigation into whether the mortgage giant defrauded the US government. Dow Jones has more.... As previously reported on JURIST's Paper Chase, Mikhail Khodorkovsky, the former CEO of the Russian oil company Yukos, will remain in jail until February 14, the Moscow City Court ruled on Wednesday, rejecting an appeal from Khodorkovsky's legal team. Paper Chase has background information on Khodorkovsky's legal battle here. AP has more.... The Singapore Exchange, in an effort to limit the fallout from the surprise disclosure that China Aviation Oil had sought court protection after losing $550 million trading oil derivatives, has ordered a probe into the company. The financial scandal is the city-state's largest since 1995. The Financial Times has more.... Former New York Mayor Rudolph Giuliani has launched his own investment banking firm which will offer advice to companies on mergers, acquisitions and other major deals. AP has more.... Calpers President Sean Harrigan was ousted from the number one pension fund on Wednesday. Reuters has more. click for previous corporations and securities law news


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Yukos CEO to remain in jail
Bernard Hibbitts on December 1, 2004 1:43 PM ET

[JURIST] Mikhail Khodorkovsky, the former CEO of the Russian oil company Yukos, will remain in jail until February 14, the Moscow City Court ruled on Wednesday, rejecting an appeal from Khodorkovsky's legal team. Khordorkovsky will be tried on charges of criminal fraud and tax evasion in connection with his involvement with Yukos and its subsidiaries. If convicted, Khodorkovsky could face up to 10 years in prison. Prosecutors insisted that Khodorkovsky, once considered Russia's richest man, would flee the country or influence witnesses if released. In addition to Khodorkovsky's personal charges, the Yukos corporation currently owes $24.5 billion in taxes and fines. The state-controlled gas company, Gazprom, announced Tuesday that it would bid for one of Yukos' main units at an auction on December 19. The Paper Chase has background information on Khodorkovsky's legal battle here. AP has more.


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BREAKING NEWS - Ukraine deal made for revote, constitutional reform
Bernard Hibbitts on December 1, 2004 1:21 PM ET

[JURIST] AP is reporting that in the wake of multiparty deal to withdraw protestors from government buildings and hold a revote of the disputed Ukranian Presidential election, Ukrainian opposition leader Viktor Yushchenko has proposed holding a new vote on Dec. 19. As previously reported in JURIST's Paper Chase, Kyiv-based webloggers, following local media reports, are saying that the internationally-brokered deal, details of which are still sketchy, also involves a renunciation of violence by all parties, a commitment to constitutional reform in the "upcoming period", and the establishment of a working group to examine the legal issues arising from the election, pursuant to the decision of the Supreme Court.
2:07 PM ET - The Ukrainian Maidan civic activism website is reporting that Yushencko, speaking just a few minutes ago in Independence Square, has called on protestors to stay in the Square "until Supreme Court and Verkhovna Rada [the Ukrainian parliament] declare precise date of revoting."
2:16 PM ET - The office of Ukrainian President Leonid Kushma has released photos taken after the multilateral meeting, including one of Yushenko and Yanukovych shaking hands, below:

An AP story on the deal is now online here, noting that "Under the deal, a group of lawyers would be convened immediately to consider changes in Ukrainian law in a bid to resolve the crisis. Yushchenko told reporters the lawyers must come up with proposals within 24 hours."
3:35 PM ET - An official English-language statement on the deal reached at the multilateral meeting is now available from the office of Ukrainian President Leonid Kuchma. It reads: At their second session in Kyiv on December 1, 2004, the Parties in the round table meeting considered in detail development of the political situation in Ukraine and agreed on the following:
1. The Parties reaffirm their commitment to exclude the use of force for solving problems arisen after the second round of the presidential election in Ukraine. 2. The Parties agreed on the necessity to immediately release governmental agencies from blockade and create conditions for performing their functions. 3. The Parties agreed on formation of an expert group for an immediate legal analysis and suggestion of appropriate proposals for the completion of the presidential elections in Ukraine based on a corresponding decision of the Supreme Court of Ukraine. 4. The Parties agreed on the adoption of a political reform, along with amendments to the Constitution of Ukraine as per the Draft Law 4180 and successive formation of the Ukrainian government, in the single package with amendments to the Law "On Election of the President of Ukraine". 5. The Parties call on all Ukraine's political forces to proceed from the necessity to preserve the country's territorial integrity, when taking decisions. 6. The Parties call on all the political forces, factions and deputy groups in the Verkhovna Rada of Ukraine, other governmental agencies and bodies of local government to concentrate their forces on the adjustment of the social and economic situation in Ukraine and overcoming crisis phenomena in the national economy. 7. The Parties agreed on holding the next round table meeting upon a corresponding decision of the Supreme Court of Ukraine. The original version of the statement is here.
7:10 PM ET - This text notably makes no explicit mention of a revote, contrary to original reports, although the lawyers group was directed to present proposals for the "completion of the elction", and an understanding seems to be emerging between the parties that a new poll of some sort will be required after the Ukraine Supreme Court's ruling, which opposition leader Yushchenko has said he expects sometime Thursday. AP has this late report on the day's developments.


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International brief ~ UN Security Council reform proposals expected Thursday
Bernard Hibbitts on December 1, 2004 11:32 AM ET

[JURIST] The UN panel charged with suggesting reforms to the UN Security Council is scheduled to present its proposals in New York Thursday. The panel's two main proposals reportedly include expanding Security Council membership by nine seats. The first proposal suggests 6 new permanent seats (without a veto, divided according to geographical region) and three new rotating seats. The second proposes eight new semi-permanent seats that would be filled for four years instead of the normal two, plus one additional two year seat. The semi-permanent seats would be open to having their seated term extended. Germany, Japan, Brazil and India, the so-called G-4, are supporting the first proposal in hopes of gaining permanent representation on the Security Council. Italy, Pakistan, Mexico, and Argentina are strong proponents of the second option, all opposing the G-4 members gaining a permanent Security Council seat from their region. Britain has expressed its support for Germany and Italy's bid. The US has offered support for a Japanese permanent seat, but has balked at supporting Germany, and has seemed friendlier with Italy, a strong supporter in the Iraq war. Deutsche Welle has more.... Colombian President Alvaro Uribe (official site in Spanish) will have the opportunity to run for a second four year term following the passing Wednesday of a controversial bill expanding term limits. Until now, Colombian presidents were limited to one four year term, but the bill passed by the House of Representatives (official site in Spanish) Wednesday, and earlier approved by the Senate (official site in Spanish), amends the nation's constitution (document in Spanish). The bill is still subject to approval by the Colombian Constitutional Court, but polls show that over 80% of the Colombian populace is in favor of the extension, and while there may be disputes over technical issues of implementation, the bill is not expected to be rejected. Opposition members fear the bill gives too much power to the office of the president. Reuters has more.... The head of the Chilean Navy, Admiral Miguel Angel Vergara, admitted for the first time Wednesday that the Navy had been used to further the torture of General Augusto Pinochet's regime. In a public apology, Vergara admitted that the Chilean Naval Vessel, the Esmeralda, had been used as a location to ship dissidents to, and was used as a continuing prison where torture was performed routinely. The annoucement comes one day after Chilean President Ricardo Lagos (official site in Spanish) announced a plan by the Chilean government (official site in Spanish) to offer reparations to victims of the torture imposed under Pinochet rule. The decision follows the release of the report from the National Commission on Political Imprisonment and Torture that identified over 27,000 individuals that had been subjected to state sponsored torture as reported by JURIST's Paper Chase. BBC News has more.... The Japanese Cabinet has begun discussions on whether to amend the Imperial House Law to allow for female rulers on the Chrysanthemum Throne. The Japanese Constitution only states the the Imperial Throne be 'dynastic' which up until now has been interpreted as gender neutral. The Imperial House Law, however, requires a male heir from a male member of the Imperial line to succeed as Emperor. The proposed changes are could adopt a preference for male heirs similar to the British system, or a preference for first-born heirs, similar to the Swedish system. The Cabinet is also considering removing the requirement that female imperial family members must discard their Imperial status if they marry a commoner. A draft bill is expected to be submitted to the Japanese Diet in the next few years. Mainichi Daily News has more.


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BREAKING NEWS ~ Ukraine PM asks Supreme Court to declare election invalid
Bernard Hibbitts on December 1, 2004 8:42 AM ET

[JURIST] The Russian news agency Interfax is reporting that Ukrainian Prime Minister Viktor Yanukovych has asked the country's Supreme Court to declare the results of the presidential run-off invalid after outgoing President Leonid Kuchma called for an entirely new election.
8:56 AM ET - From Kyiv, weblogger Dan McKinn adds: "The Supreme Court has just received a letter from Yanukovych in which he asks them to cancel the results of the second round of the election and recount the votes. Unless he's had lackeys going through the archives at all the Territorial Election Committees and changing all the votes, this is a big big win for the opposition.." More on Orange Ukraine.
12:36 PM ET - AP is reporting that the rival campaigns in Ukraine's disputed presidential election have agreed on a lifting of opposition protesters' siege of government buildings, begun last week soon after allegations were made of widespread fraud. The agreement came after another round of multiparty talks at the Presidential palace Wednesday; read a pre-agreement release on the talks from the opposition Yuschenko campaign here.
1:10 PM ET - From Kyiv, the American blogger of Le Sabot Post-Moderne reports: From the press conference at Marinskiy Palace. From what I'm hearing, President Kuchma announced:- All parties have signed an agreement. It was a "genuine compromise." There is going to be a revote, though I don't think the type has been decided yet.
- There is going to be an expert working group to look at the legal issues of the election. They will follow the recommendations of the Supreme Court.
- All sides are renouncing violence.
- The protesters are going to stop blocking government buildings.
- There will be constitutional reform during the upcoming period.
From the quick bit I saw on the TV here, everyone was smiling, including the "sick" Yanukovych [JURIST editor's note: Kuchma had previously said he was "ill" and could not appear in public]. With only the above info, it's hard to say what the significance of this is. I need to know what kind of constitional reform. To date, that phrase means a weakening of the president in favor of the PM. We'll have to see what it means here. Read more here.


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Ukrainian parliament votes no-confidence in government
Bernard Hibbitts on December 1, 2004 7:34 AM ET

[JURIST] The Ukrainian parliament Wednesday narrowly approved a no-confidence motion in the government of Prime Minister Viktor Yanukovych, the declared winner of last week's disputed presidential election, proposing instead a "government of national trust." The vote came on a second secret ballot after a first ballot failed; a similar measure had been proposed Tuesday, but the chamber had been adjourned before any vote could be taken. The no-confidence vote forces outgoing Ukrainian President Leonid Kuchma to dismiss Yanukovych from his current position, deeping a political crisis which yesterday also saw opposition leader Viktor Yushchenko break off compromise negotiations with the Yanukovych campaign. Kuchma said Wednesday that he does not support a direct re-vote of the run-off to settle the dispute, suggesting instead that he would favor new elections with additional candidates. The Ukrainian Supreme Court meanwhile enters its third day of deliberations on the opposition appeal of the election result; some observers expect it could rule as early as Wednesday afternoon. Reuters has more; Scott Clark, a lawyer working as a consultant in Kyiv, offers this personal report on the vote on his weblog Foreign Notes.
8:22 AM ET - In the related developments, the Maidan Ukrainian activist website is reporting that in the wake of yesterday's cancellation of this Sunday's planned autonomy referendum in the pro-Yanukovych Donetsk region, the Donetsk Regional Council has passed a new resolution setting January 9th as the date of a referendum on Lodgement of the region with the status of the self-dependent subject in the frame of a federation." Maidan has more.


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Legal agenda and live webcasts ~ Wednesday, December 1
Jeannie Shawl on December 1, 2004 7:00 AM ET

[JURIST] Here's a run-down of law-related events, expected developments and live webcasts on JURIST's docket for Wednesday, December 1.
The US Supreme Court will hear 10 AM ET oral arguments in Rousey v. Jacoway (case summary from Duke Law School), where the court will decide whether and to what extent individual retirement accounts are exempt from bankruptcy estates. The ABA provides merit briefs in the case. The Court will also hear arguments in Smith v. Massachusetts (case summary from Duke Law School), where it will consider whether the Fifth Amendment's prohibition against successive prosecutions is violated when a judge rules that the defendant is not guilty because the government?s evidence is insufficient but later in the trial reverses her finding of not guilty. The ABA provides merit briefs in the case.
The Louisiana Supreme Court is scheduled to hear oral arguments Wednesday on the state's proposed marriage amendment. The proposed amendment was struck down by a judge in October because the amendment, in addition to banning same-sex marriage, also prevents the state from recognizing any legal status for common-law relationships, domestic partnerships and civil unions between both gay and heterosexual couples, and therefore violates a constitutional requirement that an amendment deal with only one issue. AP has more.
The US House and Senate are in recess. The US House will reconvene on Monday, December 6 at 2 PM. The US Senate will reconvene on Tuesday, December 7 at 9:30 AM.
The trial of Slobodan Milosevic continues Wednesday at the International Criminal Tribunal for the former Yugoslavia. Watch a webcast of the trial beginning at 9:30 AM local time (3:30 AM ET); the webcast is on a 30-minute tape delay. The ICTY has background on the case.... Also Wednesday, the trial of Fatmir Limaj and his co-defendants continues at the ICTY. Watch a webcast beginning at 2:45 PM local time (8:45 AM ET); the webcast is on a 30-minute tape delay. The ICTY has case information.
The European Parliament will consider the situation in Ukraine and will Council and Commission statements on the subject. Watch a live webcast beginning at 3 PM local time (9 AM ET).


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