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Legal news from Friday, October 12, 2007 |
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Mattel board sued for breach of fiduciary duties in wake of massive toy recalls
James M Yoch Jr on October 12, 2007 3:28 PM ET

[JURIST] The Sterling Heights Police and Fire Retirement System, a public Michigan pension fund, has filed a derivative action [press release] alleging misconduct by Mattel [corporate website], including failing to report toy defects to federal regulators, and in the case of one current and three former directors, engaging in insider trading. The lawsuit claims that Mattel's board of directors breached their fiduciary duties by allowing the company to purposely delay reports to the Consumer and Safety Product Commission (CPSC) [official website], which provides a 24-hour reporting period, of safety hazards in its toys in order to prevent a downturn in the value of the company's stock. Mattel has recalled approximately 21 million toys since August because they contained illegal lead paint or magnets that could become detached and cause injuries to children. The derivative suit calls for compensatory and other damages for harm suffered by the corporation due to Mattel's alleged failure to prevent the distribution and production of hazardous toys and the lapses in reporting. The suit also alleges that four directors violated laws against insider trading by dumping approximately $33 million in stock from January through May 2007 in Mattel stock in advance of public disclosure of the safety problems. While Mattel has not responded publicly yet to the lawsuit, it has told the US House of Representatives Committee on Energy and Commerce [official website] that the stock sales by corporate directors occurred before the discovery of safety hazards in June. The lawsuit was filed Wednesday in the Court of Chancery of Delaware [official website], on behalf of the pension fund, which owns 23,600 Mattel shares.
Since announcing recalls of approximately 21 million toys, Mattel has also been sued in several class action and personal injury lawsuits filed by consumers alleging harm to children who came in contact with the recalled toys and requesting that Mattel pay for testing of the potentially affected children. The New York Times has more. Reuters has additional coverage.


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Schwarzenegger signs bill to increase legal aid funds in California
Lauren Becker on October 12, 2007 2:31 PM ET

[JURIST] California Gov. Arnold Schwarzenegger [official website] signed a bill [AB1723 text, PDF] Thursday designed to increase funding to legal aid representation for low-income residents of California. The new law, which will take effect in January 2008, will enable banks to invest money from lawyers' client trust funds (IOLTA accounts) in higher interest-yielding accounts than those currently used. Client trust accounts, which are pooled together to generate a larger amount of interest, contain monies, such as damages, that are held for a short time until the court determines the appropriate amounts to be paid to the client. The Legal Aid Services Trust Fund Program of the State Bar of California [official website] collects the interest and allocates it among nonprofit organizations, including legal aid providers. While the accounts currently generate roughly $10 million of interest per year, the new law could greatly increase that amount,and would add to the roughly $200 million per year provided by the state to legal aid programs, from federal, state and private funds.
Low income residents are guaranteed representation in criminal matters, but the state is not required to provide representation for civil matters, which fall to legal aid groups. The legal aid provided through these funds includes representation in areas of housing, family law, domestic violence, health, disability, and foster care. Despite its various sources of funding, legal representation for indigent people falls far short of the need, according to the bill's author, California Assemblyman Dave Jones (D-Sacramento) [official website]. Jones cited a state commission's recent report that in California there is currently one lawyer for every 8,361 poor people, as opposed to one for every 240 members of the general population. The bill is expected to broaden the numbers of poor who are able to access legal aid. The San Francisco Chronicle has more.


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Russia president threatens to withdraw from nuclear missile treaty with US
Jaime Jansen on October 12, 2007 10:47 AM ET

[JURIST] Russian President Vladimir Putin [official website] threatened to withdraw Russia from the Intermediate-Range Nuclear Forces (INF) Treaty [US DOS backgrounder] Friday unless the treaty is expanded to include neighboring countries such as China, India and Pakistan. The treaty, signed by Mikhail Gorbachev and Ronald Reagan in 1987, requires signatories to disarm their ground-launched ballistic and cruise missiles with ranges of between 500 and 5,500 kilometers, their launchers and associated support structures and support equipment. Putin has asserted that Russia cannot remain a signatory to the treaty if neighboring countries can continue to develop their own intermediate-range weapons.
Putin's comments came just before a meeting in Moscow between US Secretary of State Condoleezza Rice, US Secretary of Defense Robert Gates, Russian Foreign Minister Sergei Lavrov and Russian Defense Minister Anatoly Serdyukov [official profiles]. During the talks, the US rejected [AFP report] Russia's request for the US to freeze plans for an anti-missile defense shield in central Europe. In June, Russia also threatened to withdraw [JURIST report] from the Conventional Armed Forces in Europe Treaty [text; backgrounder] amid tensions between the US and Russia over the anti-missile defense proposal, which Russia perceives to be a threat to Russian national security. The Guardian has more.


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Arizona high court halts lethal injection pending US Supreme Court review
Jaime Jansen on October 12, 2007 10:00 AM ET

[JURIST] The Arizona Supreme Court [official website] indefinitely stayed the execution of a man on death row Thursday, saying it will wait until the US Supreme Court reviews whether lethal injection is unconstitutional under the Eighth Amendment in Baze v. Rees (07-5439) [docket; cert. petition]. The Arizona Supreme Court has already ruled that the state's lethal injection method is constitutional, but stayed the execution of Jeffrey Landrigan [AZ DOC materials] pending the US Supreme Court's consideration of Baze because its method is so similar to the one under review.
Arizona, like many other states, uses a controversial three-drug mixture [DPIC backgrounder] of an anesthetic, a muscle paralyzer and a substance to stop the heart. The Kentucky Supreme Court ruled in the Baze case that the state's current method of lethal injection, the same method Arizona uses, does not violate the constitution [JURIST report] because the prohibition on cruel and unusual punishment "does not require a complete absence of pain." Several constitutional challenges [JURIST news archive] to the procedure have arisen across the country, arguing that the first drug fails to make the inmate fully unconscious, thereby making the inmate suffer excruciating pain when the heart-stopping drug is injected. AP has more. The Arizona Republic has local coverage.


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Advocacy group seeks court order requiring White House preservation of e-mails
Jaime Jansen on October 12, 2007 9:16 AM ET

[JURIST] A private advocacy group requested a temporary restraining order [press release; motion, PDF; motion exhibits, PDF] Thursday to compel the White House to save back-up disks of all e-mails relating to the Bush administration. Citizens for Responsibility and Ethics in Washington (CREW) [advocacy website] sued the Executive Office of the President and the National Archives and Records Administration last month over their alleged failure to preserve e-mails [complaint, PDF; press release] throughout the Bush administration. The lawsuit arose from millions of e-mails that have been deleted from White House servers and now only exist on back-up tapes, if they exist at all. The CREW motion seeks an order "to prevent any further document destruction."
Thus far, the White House has refused to confirm that they have maintained e-mail records since the beginning of the Bush administration, as they are required to do, according to CREW executive director Melanie Sloan. The US Department of Justice has been unresponsive about what back-up tapes the White House maintained, although it has stated that the White House has maintained all back-up tapes since CREW filed suit last month. The issue of missing e-mails has been an ongoing controversy in the Bush administration, arising first during the CIA leak investigation [JURIST news archive] into the revelation of Valerie Plame's identity, and again this year during controversy over the firings of eight US Attorneys [JURIST news archive]. AP has more.


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DOJ statistics show 2000 deaths during arrests in 2003-05
Jaime Jansen on October 12, 2007 8:26 AM ET

[JURIST] Over 2,000 people died while being arrested [press release] by various US state and local law enforcement officers between 2003 and 2005, the US Department of Justice (DOJ) reported [PDF text; statistics] Thursday, including over 1,000 deaths caused by the law enforcement officers themselves. The report, which was required by the Death in Custody Reporting Act [PDF text], showed a 13 percent increase in the number of deaths from 2003 to 2005. Drugs and alcohol caused 13 percent of the deaths, while suicide, accidental injuries, illnesses and natural causes rounded out the rest of the deaths. Most of the deaths caused by law enforcement officers were gun related deaths, with most of the victims being suspects of violent crime. In addition, 380 law enforcement officers died during arrests over the same time period, most of them accidentally.
The report studied 40 million arrests with the number of arrest-related deaths representing less than one ten-thousandth of one percent of deaths. The DOJ studied the period from the onset of law enforcement officers trying to arrest the suspect until the suspect was booked, with most of the deaths occurring at the scene of arrest. The DOJ used questionnaires, completed by 47 states and the District of Columbia, required by the Death in Custody Reporting Act as a condition for receiving federal correctional grants. The New York Times has more.


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