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Legal news from Wednesday, March 2, 2005 |


Russia accuses US of double standards in human rights criticisms
Christina Gheen on March 2, 2005 8:00 PM ET

[JURIST] The Russian Foreign Ministry [official website in Russian] responded Wednesday to American criticisms of Russia's human rights record in the recent 2004 US State Department human rights reports [text] by accusing the US of double standards. The State Department reports, released Monday [JURIST report], had cited Russian law enforcement for its use of torture, violence, and other degrading or humiliating treatment, and had also pointed to press restrictions, police corruption, and recent election shortcomings. A Foreign Ministry statement said the US should look to its own human rights violations and cited the Iraqi detainee abuses, racial discrimination, and presidential electoral disputes. AP has more.


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Environmental brief ~ South Africa greenlights first windfarm
Tom Henry on March 2, 2005 6:05 PM ET

[JURIST] In Wednesday's environmental law news, the South African government has approved a plan to construct the first windfarm in the country. The Director-General for Environmental Affairs and Tourism [official website] has approved the windfarm for the Darling district of Western Cape that will include 4 Danish-designed wind turbines and is expected to produce 5.2 megawatts of electricity. Reuters has the full story.
In other news, - Rhode Island became the seventh state in the US to ban smoking in most indoor public places. The smoking ban went into effect Tuesday and effects most bars and restaurants, and all indoor workplaces. Bars that have 10 or fewer employees and private social clubs have until October 2006 to comply with the ban, while gambling centers are exempt altogether. AP has the full story.
- Sonoma County CA supervisors agreed Tuesday to put to referendum a measure that would ban genetically modified (GM) crops and livestock in the county for 10 years. Last month, voters had collected enough signatures [JURIST report] to force the ballot referendum, although the supervisors could have just enacted the measure. If the law is passed, Sonoma would become the fourth California county to ban GM farming. AP has more.
- US District Judge Richard Cebull has issued a temporary injunction [JURIST report] halting the lifting of the ban on the import of Canada cattle under 30 months of age. The ban was set to be lifted on March 7. USDA [official website] Secretary Johanns has issued a statement [text] expressing his disappointment with the ruling.
- The Consumer Product Safety Commission [official website] is accepting comments until March 29 on a proposed rule [text] that would adopt nationally a California regulation that sets an open-flame resistant standard for mattresses, box springs and futons. The regulation, in effect in CA since Jan 1, requires all new mattresses to be able to pass a 30-minute open flame ignition test and carry a label citing that fact. The law faces criticism as it does not require manufacturers to disclose what chemicals or fire retardant materials were used to meet the standard, prompting concerns that illegal or toxic materials could be used. The San Francisco Chronicle has the full story.


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UN report says drug trafficking threatens rule of law in Afghanistan, Iraq
Jeannie Shawl on March 2, 2005 2:18 PM ET

[JURIST] Drug trafficking in Afghanistan threatens to undermine the rule of law and democracy in the country, according to a report released Wednesday by the International Narcotics Control Board [official website], the independent body charged with monitoring implementation of UN drug conventions. The INCB 2004 Annual Report [text] also expresses concern about drug trafficking in Iraq, saying "The complex interlinkage of terrorism, organized crime, corruption and drug trafficking poses an unprecedented threat, raising concerns that the overall situation may worsen." AP has more. Responding to the INCB report Wednesday, Afghan President Hamid Karzai said that his country will step up the fight against drugs. Karzai said Afghan authorities are "working to close drug markets, seize narcotics which are being smuggled all over Afghanistan and to arrest those involved in drug smuggling and are reforming the judicial systems in order to be able to bring drug smugglers to justice." AFP has more.


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Corporations and securities brief ~ Titan able to bid on Navy contracts after settlement
Amit Patel on March 2, 2005 1:05 PM ET

[JURIST] Leading Wednesday's corporations and securities law news, Titan Corp. [corporate website] announced it reached administrative settlement agreement with the US Navy [official website] allowing the company to bid, receive and perform on government contracts. Read the Titan press release. The agreement comes a day after Titan agreed to pay a $28.5 million to settle criminal charges brought by the US Department of Justice (DOJ) [official website] and civil charges brought by the SEC [official website] that it made illegal payments to a presidential election campaign in Benin. Read the Titan press release. Read the SEC press release, litigation release, report on the matter, and complaint [PDF]. Reuters has more.
In other news... - The defense for former WorldCom [now MCI, Inc.] chief Bernard Ebbers rested its case after five days of testimony including Ebbers taking the witness stand and denying any role in the $11 billion accounting fraud. The prosecution began closing arguments by saying greed, power and worry drove Ebbers to mastermind the massive fraud at WorldCom. Read Ebbers' indictment [text, PDF] and the superseding indictment [text, PDF]. Reuters has more.
- Halliburton Co. [corporate website], in its annual 10-K filing with the SEC [text], said the Justice Department is probing the company for potential antitrust violations related to former employees who may have worked with competitors to rig bids on foreign construction projects. Reuters has more.
- Warren Buffett's Berkshire Hathaway Inc. [corporate website], in a SEC filing, said federal prosecutors have requested documents related to their investigation of collapsed insurer Reciprocal of America which did business with Berkshire's General Re Corp. unit. Prosecutors are focusing on whether General Re helped Reciprocal hide its deteriorating financial situation and also help executives disguise loans as reinsurance. Reuters has more.
- Verizon Communications [corporate website] will give MCI two weeks of talks to allow the company to discuss Qwest Communications' [corporate website] renewed efforts to purchase it. Verizon, which has a noncompete clause in its merger agreement with MCI, said the discussion would end on March 17. MCI Inc. was under considerable pressure to revisit Qwest's $8 billion bid by Qwest executives and MCI shareholders. Read the Verizon press release. Bloomberg has more.
- Russia's natural gas company Gazprom [corporate website] announced its merger with state-owned oil company Rosneft has been finalized. Under the terms, which was already approved by Russia's President Vladimir Putin, the state will own a controlling 51% stake in Gazprom by folding Rosneft [corporate website] into the gas monopoly. AP has more.
- Citigroup Inc. [corporate website] announced an agreement in a class action securities lawsuit related to Global Crossing Ltd. [corporate website], an international telecommunications network provider which sought bankruptcy protection. Under the settlement, Citigroup will pay $75 million to all investors in securities of Global Crossing (Research) or Asia Global Crossing from Feb. 1, 1999, through Dec. 8, 2003. Reuters has more.
- As previously reported on JURIST's Paper Chase, the Federal Energy Regulatory Commission (FERC) [official website] released transcripts of audio tapes made by Enron Corp. [corporate website; JURIST Hot Topic archive] traders which indicate the energy giant engaged in or discussed violations of federal regulations. The transcripts represent a victory for the Snohomish County Public Utility District [official website] in Washington which collected some of the tapes and has been pressing FERC to act in transcribing the thousands of hours of tape. The Snohomish County utility hopes to use the tapes to show that the contract it agreed to with Enron in January 2001 should be deemed fraudulent because of Enron's violations. The utility hopes to avoid paying the $122 million that Enron claims it owes. Read the Snohomish press release which includes links to selected audio and transcripts. The full transcripts and audio files [click on "Files" for MP3s] are available online in the FERC library. AP has more.
- Britain's Medicines and Healthcare Products Regulatory Agency (MHRA) [official website] announced that it has lifted a suspension on flu vaccine maker Chiron Corp [corporate website]. The announcement allows Chiron to begin producing its product again. Read the MHRA press release. Read the Chiron press release. AP has more.
Click for previous corporations and securities law news.


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Supreme Court says secrecy requirement stops former spies suing CIA for support
Bernard Hibbitts on March 2, 2005 10:52 AM ET

[JURIST] Unanimously reversing a Ninth Circuit ruling [PDF], the US Supreme Court ruled Wednesday in Tenet v. Doe [case backgrounder from Duke Law School] that two former spies for the CIA could not sue the agency for support after it had backed out of an alleged agreement to provide them with permanent stipends. The two, designated John and Jane Doe, had originally sought to defect from a foreign country but had agreed to become spies for the United States instead; after 1987 they relocated to Seattle with new identities provided by the government and became US citizens. The agency initially paid them an annual stipend of $27,000, which was terminated when one of them obtained a job pushing their income over that level, but despite promises that the agency would "always be there" the stipend was not renewed in 1997 when the employed former spy lost his job. Chief Justice Rehnquist wrote for the court: We reverse because this holding contravenes the longstanding rule, announced more than a century ago in Totten, prohibiting suits against the Government based on covert espionage agreements....
The state secrets privilege and the more frequent use of in camera judicial proceedings simply cannot provide the absolute protection we found necessary in enunciating the Totten rule. The possibility that a suit may proceed and an espionage relationship may be revealed, if the state secrets privilege is found not to apply, is unacceptable: "Even a small chance that some court will order disclosure of a source?s identity could well impair intelligence gathering and cause sources to 'close up like a clam.' CIA v. Sims, 471 U. S. 159, 175 (1985). Forcing the Government to litigate these claims would also make it vulnerable to "graymail," i.e., individual lawsuits brought to induce the CIA to settle a case (or prevent its filing) out of fear that any effort to litigate the action would reveal classified information that may undermine ongoing covert operations. And requiring the Government to invoke the privilege on a case-by-case basis risks the perception that it is either confirming or denying relationships with individual plaintiffs. Read the full opinion [PDF], together with a concurrence by Justice Stevens and a second concurrence, replying to Stevens, by Justice Scalia. AP has more.


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Legal agenda and live webcasts ~ Wednesday, March 2
Chris Buell on March 2, 2005 12:01 AM ET

[JURIST] Here's a run-down of law-related events, expected developments and live webcasts on JURIST's docket for Wednesday, March 2.
The US Supreme Court [official website] will hear oral arguments in two cases beginning at 10 AM ET today. In the first case, Van Orden v. Perry, 03-1500, the Court will consider whether the display of the Ten Commandments at state government buildings is a violation of the First Amendment. The ABA has merit briefs in the case. In the second case, McCreary County v. ACLU of Kentucky, 03-1693, the Court will decide whether the inclusion of the Ten Commandments within a larger work on the history of American law displayed on government property violates the Establishment Clause. The ABA has merit briefs filed in the case.
The US Senate [official website] convenes at 9:15 AM ET today, and will resume consideration of S. 256 [bill summary], the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, at 10:15 AM ET. Watch a live webcast of proceedings.
The US House [official website] convenes at 10 AM ET today. Watch a live webcast of proceedings. The House Energy and Commerce Committee [official website] is holding a hearing on mergers in the telecommunications industry at 10 AM ET. Watch a live webcast of the hearing. The Energy and Air Quality Subcommittee is holding a hearing on H.R. 3 [bill summary] and the Clean Air Act at 2 PM ET. Watch a live webcast of the hearing. The House International Relations Committee [official website] is holding a hearing on UN operations and accountability at 10:30 AM ET. Watch a live webcast of the hearing. The Middle East and Central Asia Subcommittee is holding a hearing to consider H. Con. Res. 18 [text], which condemns human rights violations in Syria and Lebanon by the Syrian government. Watch a live webcast of the hearing. The Asia and the Pacific Subcommittee will hold a hearing on the crisis in Nepal at 1:30 PM ET. View a witness list, and watch a live webcast of the hearing.
The Heritage Foundation is holding a forum titled "The Supremacists: The Tyranny of Judges and How to Stop It," beginning at 12 Noon ET. Watch a live webcast of the presentation.
At the UN, the Commission on the Status of Women [official website] is holding a high-level plenary meeting at 10 AM ET. Watch a live webcast of the meeting. Following that, Meryl Streep, actress; Maha Abu-Dayyeh Shama, Director of the Women's Centre for Legal Aid and Counseling,Jerusalem; Taina Bien-Aime, Executive Director of Equality Now; Susana Chiarotti, Regional Director of CLADEM, Argentina; Jessica Neuwirth, President of Equality Now; and Sapana Pradhan-Malla, President of the Forum for Women, Law and Development, Nepal, will brief on the Equality Now Beijing +10 campaign against sex discriminatory laws. Watch a live webcast beginning at 11 AM ET. At 12:30 PM ET, monthly Security Council [official website] President Ronaldo Mota Sardenberg of Brazil will brief on the Council's work program. Watch a live webcast.
At the EU, a press conference will be held following a meeting between Palestinian Prime Minister Mahmoud Abbas and European Commission President José Manuel Barroso. Watch a live webcast beginning at 2:30 PM local time [8:30 AM ET].
At the International Criminal Tribunal for the Former Yugoslavia, the trial of Slobodan Milosevic [ICTY case backgrounder] continues, with a webcast beginning at 9:30 AM local time [3:30 AM ET]. Also today, the trial of Fatmir Limaj and others [ICTY case backgrounder] continues, with a webcast beginning at 2:45 PM local time [8:45 AM ET].


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