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Legal news from Wednesday, March 30, 2005 |
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BREAKING NEWS ~ Federal appeals court refuses rehearing in Schiavo case
Jeannie Shawl on March 30, 2005 3:24 PM ET

[JURIST] AP is reporting that the US Eleventh Circuit Court of Appeals has again refused to conduct a full court rehearing in the Terri Schiavo case.
3:35 PM ET - The Eleventh Circuit has denied Bob and Mary Schindler's request for a new hearing en banc [petition text (PDF), JURIST report] on whether a feeding tube for their brain-damaged daughter Terri Schiavo [JURIST news archive] should be reconnected on the alleged likelihood of success for their case in a federal de novo review. A majority of 11th Circuit judges voted against holding a rehearing, and Judge Stanley Birch wrote a concurrence addressing the constitutionality of Pub. L. 109-3 [text, JURIST report], the bill passed by Congress allowing the federal courts to review Schiavo's case. Birch writes: A popular epithet directed by some members of society, including some members of Congress, toward the judiciary involves the denunciation of "activist judges." Generally, the definition of an activist judge is one who decides the outcome of a controversy before him according to personal conviction, even one sincerely held, as opposed to the dictates of the law as constrained by legal precedent and, ultimately, our Constitution. In resolving the Schiavo controversy it is my judgment that, despite sincere and altruistic motivation, the legislative and executive branches of our government have acted in a manner demonstrably at odds with our Founding Fathers blueprint for the governance of a free people - our Constitution. Since I have sworn, as have they, to uphold and defend that Covenant, I must respectfully concur in the denial of the request for rehearing en banc. I conclude that Pub. L.109-3 ("the Act") is unconstitutional and, therefore, this court and the district court are without jurisdiction in this case under that special Act and should refuse to exercise any jurisdiction that we may otherwise have in this case. Birch wrote that Congress violated separation of powers principles by "arrogating vital judicial functions to itself" and prescribing a "rule of decision." He concluded:The separation of powers implicit in our constitutional design was created "to assure, as nearly as possible, that each branch of government would confine itself to its assigned responsibility." INS, 462 U.S. at 951, 103 S. Ct. at 2784. But when the fervor of political passions moves the Executive and the Legislative branches to act in ways inimical to basic constitutional principles, it is the duty of the judiciary to intervene. If sacrifices to the independence of the judiciary are permitted today, precedent is established for the constitutional transgressions of tomorrow. See New York, 505 U.S. at 187, 112 S. Ct. at 2434. Accordingly, we must conscientiously guard the independence of our judiciary and safeguard the Constitution, even in the face of the unfathomable human tragedy that has befallen Mrs. Schiavo and her family and the recent events related to her plight which have troubled the consciences of many. Realizing this duty, I conclude that Pub. L. 109-3 is an unconstitutional infringement on core tenets underlying our constitutional system. Had Congress or the Florida legislature, in their legislative capacities, been able to constitutionally amend applicable law, we would have been constrained to apply that law. See Robertson v. Seattle Audobon Socy, 503 U.S. 429, 441, 112 S. Ct. 1407, 1414 (1992). By opting to pass Pub. L. 109-3 instead, however, Congress chose to overstep constitutional boundaries into the province of the judiciary. Such an Act cannot be countenanced. A second concurrence, written by Judges Ed Carnes and Frank Hull, addressed the Schindlers' arguments about the sufficiency of evidence presented in the Florida courts: Even assuming that this type of sufficiency of the evidence issue is a proper one for an en banc determination, there is no substantial question in this case about whether a rational factfinder could have found, as the Florida court did, that there was clear and convincing evidence that Mrs. Schiavo would not have wanted nutrition and hydration continued in these circumstances. Given the credibility determinations that the state trial court was authorized to and did make, the evidence clearly was sufficient to meet the clear and convincing evidence standard, which the Florida courts had imposed and did apply in this case. Judge Gerald Tjoflat, joined by Judge Wilson, dissented from the denial of rehearing en banc. Tjoflat wrote: The plaintiffs have now stated a plausible claim that the Due Process Clause of the Fourteenth Amendment requires clear and convincing evidence of an individuals wishes before a state court may order withdrawal of life-sustaining nutrition, hydration, or other medical attention....
The relevant question here is whether a rational factfinder could have found by clear and convincing evidence that Mrs. Schiavo would have wanted nutrition and hydration to be withdrawn under these circumstances. The plaintiffs carry a heavy burden, but I do not believe that this question can be determined in this expedited fashion without a hearing on the merits. Responding to Judge Birch's assertions that the court lacks jurisdiction to hear the dispute, Judge Tjoflat wrote: This is not a case, to use separation-of-powers parlance, of Congress "arrogating" power to itself, nor is it a case in which one branch of government has "impair[ed] another in the performance of its constitutional duties." Loving v. United States, 517 U.S. 748, 757 (1996) (emphasis added). Instead, Congress has prescribed a particular approach to a particular problem in the general domain of federal jurisdiction, without presuming to dictatein any respectour performance of a courts essential function: "to say what the law is." Marbury v. Madison, 5 U.S. (1 Cranch) 137 (1803) (Marshall, C.J.)....
Here, Congress has attempted only what has long been established to be within its power to dictate: our standard of review, the effect of a prior state court judgment on that review,6 the application of prudential abstention doctrines, and the effect of exhaustion requirements. I know of no case barring Congress from so dictating, and Judge Birch does not cite any. Indeed, quite to the contrary, Judge Birch cites cases establishing that both our abstention and exhaustion doctrines are prudential. See ante, at 10. If none of these dictates by itself goes beyond Congresss power to determine the jurisdiction of federal courts, I know of no doctrine that could convert their aggregation into a separation-of-powers violation. [footnotes omitted]. Read the full court's denial [PDF text, includes concurrences and dissent] of the petition for an expedited rehearing. AP has more.


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Sudan rejects UN sanctions resolution as "unbalanced"
Jeannie Shawl on March 30, 2005 1:01 PM ET

[JURIST] Sudan's Ministry for Foreign Affairs [official website] Wednesday called yesterday's UN Security Council [official website] sanctions resolution "unbalanced and inappropriate," saying it "ignored the government's efforts in addressing the political, security and humanitarian aspects of the Darfur conflict." The Security Council voted 12-0 [Reuters report] (with China, Russia and Algeria abstaining) to impose travel bans and asset freezes on those who violate the Darfur cease-fire and those responsible for atrocities against civilians. The resolution also strengthens the arms embargo on Sudan and forbids the government from offensive military flights into the Darfur region. Despite its objections the resolution, the Sudanese government said Wednesday that it would deal with the resolution in accordance with its moral and legal responsibility towards its people and "do everything possible to secure an immediate and comprehensive settlement to the conflict in Darfur." AFP has more.
In a related story, the UK parliament's International Development Committee [official website] released a report Wednesday that concludes that as many as 300,000 people have died during the Darfur conflict [JURIST news archive]. The report, Darfur, Sudan: The responsibility to protect [PDF text], also urges the UN to extends arms embargo on Sudan and refer Darfur war criminals to the International Criminal Court [official website]. Reuters has more.


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Corporations and securities brief ~ AIG admits to improper accounting
Amit Patel on March 30, 2005 12:30 PM ET

[JURIST] Leading Wednesday's corporations and securities law news, American International Group Inc. (AIG) [corporate website] announced it will delay its SEC filing of its quarterly results and also that it had found documentation of illegal transactions with General Re Corp, the center of the probes by the SEC and New York Attorney General Eliot Spitzer [official website]. AIG said it would need more time to review its books indicating there would be a downward revision in previously stated shareholders' equity. AIG said it would file the report on April 30. Read the AIG press release. AP has more.
In other news... - House Financial Services Committee Chairman Michael Oxley [official website] and Capital Markets Subcommittee Chairman Richard Baker [official website] wrote a letter to SEC Chairman William Donaldson [SEC biography] stating the SEC must pass a rule which allows brokers to charge customers fees based on their account assets. The two representatives want to avoid duplicative regulation on brokers. Read the joint press release. CBSMarketWatch has more.
- One week after settling its claims arising from its role as an underwriter for WorldCom for $2 billion, JP Morgan Chase [corporate website] was granted its motion to dismiss a securities class action lawsuit arising from its dealings with Enron [corporate website; JURIST Hot Topic news archive]. The decision, In Re JP Morgan Securities Litigation, said plaintiffs failed to meet the standard of proof required in a securities class action. Plaintiffs claimed JP Morgan misstated its financial transactions with Enron, thereby perpetuating Enron's fraud. The New York Law Journal has more.
- San Francisco investment bank Thomas Weisel Partners [corporate website] announced a $1.75 million settlement with the National Association of Securities Dealers (NASD) [corporate website] over its initial public offering practices. The payment settles allegations that Weisel received unusually high trading commissions from its customers in exchange for share allocations of popular IPOs. Morgan Stanley [corporate website] and Bear Stearns Cos. [corporate website] settled similar charges last year. Read the NASD press release. CBSMarketWatch has more.
- Alexei Pichugin [trial website], the former security chief of Russian oil giant Yukos [corporate website; JURIST Hot Topic news archive], was sentenced to 20 years in jail for murder and attempted murder. Pichugin was allegedly ordered to murder two people at the behest of Leonid Nevzlin, a shareholder in Yukos and friend of chief executive Mikhail Khodorkovsky [JURIST Newsmaker news archive]. Pichugin will appeal his conviction. Read a summary of Pichugin's conviction. BBC News has more.
- Hewlett-Packard Co. (HP) [corporate website] has named Mark Hurd as its new CEO and president replacing ousted Carly Fiorina. Read the HP press release. AP has more.
- US District Court Judge Dickinson Debevoise ruled copycat manufacturers, Teva Pharmaceuticals Inc. [corporate website] and Ranbaxy Laboratories Ltd. [corporate website], of generic versions of Pfizer Inc.'s Accupril blood pressure drug must halt their sales. The judge found in favor of Phizer Inc. [corporate website] because it was likely to win a patent infringement lawsuit filed against Teva and Ranbaxy. Phizer said it will seek to recover damages from lost sales. Teva and Ranbaxy said they would appeal the judgment. Read the Phizer press release. Read the Ranbaxy press release. Reuters has more.
Click for previous corporations and securities law news.


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BREAKING NEWS ~ Supreme Court rules in age discrimination suit
Jeannie Shawl on March 30, 2005 10:20 AM ET

[JURIST] The US Supreme Court handed down a decision Wednesday morning in Smith v. City of Jackson [case backgrounder from Duke Law School], ruling that workers over the age of 40 need not show proof of discriminatory intent in lawsuits brought under the Age Discrimination in Employment Act [text]. Read the court's majority opinion [PDF text], per Justice Stevens, along with Justice O'Connor's concurrence [PDF text] and Justice Scalia's concurrence [PDF text]. Chief Justice Rehnquist took no part in the decision. AP has more.
10:40 AM ET -- The Supreme Court also handed down decisions in two other cases Wednesday morning. In Exxon Mobil v. Saudi Basic Industries [Duke law school case backgrounder], the Court ruled that the Rooker-Feldman doctrine, which prevents lower federal courts from sitting in direct review of state court decisions, is confined to cases brought by state court losers complaining of injuries caused by state court judgments rendered before federal district court proceedings commenced and inviting district court review and rejection of those judgments. The court held that Rooker-Feldman does not otherwise override doctrines allowing federal courts to stay or dismiss proceedings in deference to state-court actions. Read the Court's unanimous opinion [PDF text], written by Justice Ginsburg.
In Rhines v. Weber [Duke Law School case backgrounder], the Court ruled that a federal court district court has discretion to stay (rather than being compelled to dismiss) a habeas corpus petition which includes exhausted and unexhausted claims, in order to allow a petitioner to present his unexhausted claims to the state court in the first instance and then to return to federal court for review of his perfected petition. Read the Court's opinion [PDF text] per Justice O'Connor, along with Justice Stevens' concurrence [PDF text] and Justice Souter's concurrence [PDF text].


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Gitmo review tribunals wrap up; 38 detainees ordered released
Jeannie Shawl on March 30, 2005 10:05 AM ET

[JURIST] The Defense Department said Tuesday that Combatant Status Review Tribunals [DOD backgrounder] for all Guantanamo Bay [JURIST news archive] detainees have been completed. Navy Secretary Gordon England [official profile], who has overseen the CSRT process, announced that 38 of 558 detainees were determined not to be "enemy combatants" and were ordered released from the Cuban naval base without compensation. Gordon used Tuesday's press briefing [DOD transcript] to defend both the detention of terror suspects and the CSRTs as complying with the Supreme Court's 2004 decision in Hamdi v. Rumsfeld [PDF opinion; JURIST report]: First, the basis of detaining captured enemy combatants is not to punish but, rather, to prevent them from continuing to fight against the United States and its coalition partners in the ongoing global war on terrorism. Detention of captured enemy combatants is both allowed and accepted under international law of armed conflict.
Second, the Combatant Status Review Tribunals have provided a venue for detainees to personally challenge their status as enemy combatants. As you will recall, in last June's Supreme Court decision in "Hamdi," Justice O'Connor explicitly suggested that a process based on existing military regulations -- and she specifically cited Army regulation 190-8 -- might be sufficient to meet due process standards. You'll also perhaps know that that Army regulation is what the U.S. uses to implement Article 5 of the Geneva Convention that deals with prisoners of war.
So our CSRT process incorporates that guidance from Article 5, Army regulation 190-8 and, as I mentioned in the past, it adds features for further benefit of the detainee. For example, a personal representative is made available to each detainee to assist in preparing his case before the CSRT.
Third, we have notified all enemy combatants of the opportunity to challenge their detention in federal district court. During this process, several detainees have completed documents for submission directly to the federal court here in Washington, D.C.
Lastly, our national security interests would be harmed if classified information about terrorist organizations and activities were released, so in many cases much of the information about a detainee is classified. In fairness to the detainee, we have the intelligence community clear unclassified summaries of this information about each detainee, which is then shared with each detainee as the unclassified basis for his detention. Human rights lawyers, however, have questioned the constitutionality of the CSRTs, saying detainees were not allowed to have lawyers and were unable to challenge secret evidence against them. A case on what rights detainees have under the Hamdi ruling is currently pending before the US Court of Appeals for the District of Columbia. The Boston Globe has more.


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