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Legal news from Wednesday, April 1, 2009 |
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Sweden parliament passes same-sex marriage law
Christian Ehret on April 1, 2009 4:34 PM ET

[JURIST] The Swedish Parliament [official website, in Swedish] on Wednesday voted in favor [press release, in Swedish] of a gender-neutral marriage law, repealing a previous law on registered partnerships. The legislation [proposal, in Swedish] would allow same-sex couples already partnered through the existing legislation to either continue their legal partnerships or to apply for marriage status. The law was opposed by the Christian Democrats [HBL report, in Swedish], but supported by the Liberal, Moderate, Center, Green, Left, and Social Democrat parties. The Swedish Parliament addressed concerns about children raised in same-sex marriages by stating that the legislation benefits everyone, including children, by changing societal attitudes on homosexuals. The legislation, which takes effect on the first of May, specifies that members of the clergy will be appointed to conduct civil marriages instead of judges.
Same-sex marriage laws were recently passed by the New Hampshire House of Representatives and the Vermont Senate [JURIST reports], although the Governor of Vermont warned that he would veto the legislation. In December, Hungary struck-down [JURIST report] a same-sex partnership law by alleging that it would diminish the importance of marriage. In November, the Australian Senate approved [JURIST report] a same-sex equal rights law but did not grant the right to marry.


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Madoff feeder fund charged with fraud in connection with investment scheme
Christian Ehret on April 1, 2009 3:31 PM ET

[JURIST] Secretary of the Commonwealth of Massachusetts William Galvin [official website] filed a complaint [materials] Wednesday against Fairfield Greenwich Group [corporate website] alleging fraud for their involvement in the Bernard Madoff [JURIST news archive] investment scheme. According to the complaint, Fairfield Greenwich acted as a feeder fund [Investopedia backgrounder], giving their clients access to Madoff's investments. The complaint alleges that of the approximately $7.2 billion in Fairfield's investment assets - more than half of their total assets - 95 percent was invested with Madoff Investment Securities. The charges represent the first regulatory actions [WSJ report] against a feeder fund related to the Madoff fraud case. The allegations cite a: profound disparity between the due diligence Fairfield represented to its investors that it would conduct with respect to Bernard L. Madoff Investment Securities LLC...and the due diligence it actually conducted, as well as misrepresentations to investors in its Sentry funds about Fairfield's degree of knowledge and comfort with respect to Madoff's operations...[and a] failure [by] Fairfield to disclose to investors the interconnected relationship between Fairfield and Madoff Investments. In January, Fairfield Greenwich reacted [press release] to Madoff's arrest by stating an intent to represent their clients' interests by aiding authorities. In December, soon after Madoff's arrest, Fairfield Greenwich vowed to pursue recovery [press release, PDF] of their lost assets.
Last month, Madoff pleaded guilty [JURIST report] to security fraud charges for his alleged involvement in a multi-billion dollar Ponzi scheme. In February, Madoff consented [JURIST report] to a partial judgment [SEC press release] with the US Securities and Exchange Commission (SEC) [official website] over civil charges brought by the SEC to obtain a preliminary injunction and asset freeze against him. The same day, SEC Division of Enforcement Director Linda Thomsen announced she was stepping down from her post [SEC press release]. In the week following Madoff's charges, SEC Chairman Christopher Cox [official profile] said that he would launch an immediate investigation [press release; JURIST report] into how the fraud allegedly perpetrated by Madoff went undetected for so long.


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Supreme Court hears arguments on constitutionality of Alaska ship tax
Devin Montgomery on April 1, 2009 2:40 PM ET

[JURIST] The US Supreme Court [official website; JURIST news archive] on Wednesday heard oral arguments [day call, PDF; briefs] in Polar Tankers v. City of Valdez [oral arguments transcript, PDF; JURISTreport], where the Court will consider whether a municipal tax that falls exclusively on large vessels in the citys harbor violates the Tonnage Clause (Art. 1 § 10 cl. 3), the Commerce Clause (Art. 1 § 8 cl. 3), or the 14th Amendment Due Process Clause of the US Constitution [text]. The city of Valdez, Alaska, imposes a tax on oil tankers and other large vessels using its port to pick up and deliver crude oil. The Alaska Supreme Court upheld [opinion, PDF] the tax. Counsel for Polar Tankers argued that, because the tax effectively only targeted these ships, and neither other vessels nor other property, the city had violated constitutional restrictions: The Valdez vessel tax violates the Constitution's Tonnage Clause because it operates as a charge on a privilege of trading in the port of Valdez, and that tax is apportioned in a way that is guaranteed to tax extraterritorial values and values that do not have a connection to the city. That violates the Due Process and Commerce Clauses. Counsel for the city argued that "no ad valorem property tax has ever been held to violate the Tonnage Clause."


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DOJ moves to set aside verdict against ex-senator Ted Stevens
Jay Carmella on April 1, 2009 12:00 PM ET

[JURIST] The US Department of Justice (DOJ) [official website] filed a motion [text, PDF] in federal court Wednesday seeking to set aside the verdict and dismiss the indictment on corruption charges against former senator Ted Stevens (R-AK) [US Congress backgrounder]. Stevens was convicted [JURIST report] in October on seven counts of making false statements relating to an alleged corruption scheme and for falsifying his Financial Disclosure Forms. The DOJ later admitted that it did not turn over relevant evidence [AP report] to the defense in preparation of trial. The behavior of the prosecution led to a request in December by defense that the conviction be removed and a new trial ordered. In February, the DOJ lawyers were held in contempt by US District Court Judge Emmet Sullivan for their failure to turn over documents. US Attorney General Eric Holder [official profile] said [statement] Wednesday: In connection with the post-trial litigation in United States v. Theodore F. Stevens, the Department of Justice has conducted a review of the case, including an examination of the extent of the disclosures provided to the defendant. After careful review, I have concluded that certain information should have been provided to the defense for use at trial. In light of this conclusion, and in consideration of the totality of the circumstances of this particular case, I have determined that it is in the interest of justice to dismiss the indictment and not proceed with a new trial. Holder indicated that the DOJ's Office of Professional Responsibility [official website] will conduct a review of the prosecution to determine if any action will be taken against them. A hearing is scheduled for Tuesday to determine whether the conviction will be vacated.
Following his conviction, Stevens lost his re-election bid in November to Senator Mark Begich (D-AK) [official profile]. Stevens was charged [indictment, PDF; JURIST report] with accepting approximately $250,000 in gifts over an eight-year period from the founder of oil services and engineering company VECO Corp. [corporate website]. According to the indictment, the gifts included home improvements, vehicle trades, and other smaller gifts. In exchange, he reportedly used his influence in Washington to improperly benefit the company and its employees. The DOJ reported that other politicians and lobbyists were convicted in connection with the investigation, including former Alaska state Representative Tom Anderson [JURIST report]. In October 2007, Anderson was sentenced [JURIST report] to five years in prison for accepting nearly $26,000 he believed to be from private correctional facilities firm Cornell Industries [corporate website] in exchange for Anderson's influence on then-pending measures on halfway houses.


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Ex-Khmer Rouge leader seeks release to 'safe house' during Cambodia genocide trial
Lucas Tanglen on April 1, 2009 11:05 AM ET

[JURIST] A lawyer for former Khmer Rouge [BBC backgrounder] leader Kaing Guek Eav [TrialWatch backgrounder; JURIST news archive] argued Wednesday that judges in the Extraordinary Chambers in the Courts of Cambodia (ECCC) [official website] should release Kaing, also known as "Duch," away from his four co-defendants into a separate "safe house. The request came a day after Kaing apologized [JURIST report] for mass torture and murder. Defense lawyer Francois Roux [JURIST news archive] said the continued detention of Kaing, who was arrested in 1999, violated Cambodia's three-year limit [AP report] on "provisional detention" and asked the judges to consider the time already served in sentencing. Roux also questioned the appropriateness of housing Kaing with defendants he is likely to implicate with his testimony. Prosecutors opposed the proposal [AFP report], citing the possibility of retaliatory attacks on Kaing by families of his victims and noting that the ECCC has held him only since 2007.
Kaing lost a similar appeal [JURIST report] of his pre-trial detention in 2007. His trial is the first of eight [JURIST report] that the ECCC hopes to hear against former members of the Khmer Rouge, which has been accused of murdering 1.7 million Cambodians [PPU backgrounder] during its nearly four-year reign. The ECCC has long been plagued with accusations of corruption and inadequate funding, with greater problems in recent years. Earlier this month, the ECCC reported that it would be unable to pay its Cambodian employees [JURIST report] for that month, one year after the court requested $114 million dollars from the UN [JURIST report]. In February, Human Rights Watch warned that the ECCC trials were in danger of being tainted for their failure to follow fair trial standards [JURIST report], and in January a Cambodian court agreed to hear a corruption case [JURIST report] involving two ECCC judges.


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Supreme Court decides labor, EPA, clemency cases
Jaclyn Belczyk on April 1, 2009 10:11 AM ET

[JURIST] The US Supreme Court [official website; JURIST news archive] issued three opinions Wednesday. The Court ruled [opinion, PDF] 5-4 in 14 Penn Plaza LLC v. Pyett [Cornell LII backgrounder; JURIST report] that an employee may not bring a statutory anti-discrimination suit when the collective bargaining agreement (CBA) prohibits such suits in favor of arbitration. In 2003, the plaintiffs' employer changed their jobs to positions they described as less desirable. The plaintiffs alleged discrimination in violation of the Age Discrimination in Employment Act [text] (ADEA) and brought suit with the Equal Employment Opportunity Commission (EEOC) [official website], which rejected the age discrimination argument. The plaintiffs then filed suit with the US District Court for the Southern District of New York, which found that the arbitration requirement in the CBA was unenforceable because it deprived the plaintiffs of the right to an appropriate judicial forum. The US Court of Appeals for the Second Circuit affirmed the ruling [text, PDF]. Reversing the lower court decision, Justice Clarence Thomas wrote, "We hold that a collective-bargaining agreement that clearly and unmistakably requires union members to arbitrate ADEA claims is enforceable as a matter of federal law." Justice John Paul Stevens filed a dissenting opinion. Justice David Souter also filed a dissenting opinion, in which Justices Stevens, Ruth Bader Ginsburg, and Stephen Breyer joined. Souter argued that the Court's 1974 decision in Alexander v. Gardner-Denver Co. [opinion text] was controlling and that employees subject to a CBA providing for conclusive arbitration of all grievances, including claimed breaches of the ADEA, do not lose their statutory right to bring an ADEA claim in court.
The Court ruled [opinion, PDF] 6-3 in favor of power companies in Entergy Corp. v. EPA [Cornell LII backgrounder; JURIST report] that Section 316(b) of the Clean Water Act [text, PDF] authorizes the Environmental Protection Agency (EPA) [official website] to use a cost-benefit analysis to determine what is the best technology available for minimizing adverse environmental impact from cooling water intake structures that draw water into power plants to offset the heat created during power generation. The US Court of Appeals for the Second Circuitruled in favor of the various environmental advocacy groups and states that no such balancing test may be used and that companies must adopt the best technology available. Reversing this decision, Justice Antonin Scalia wrote: We conclude that the EPA permissibly relied on cost-benefit analysis in setting the national performance standards and in providing for cost-benefit variances from those standards as part of the Phase II regulations. The Court of Appeals' reliance in part on the agency's use of cost-benefit analysis in invalidating the site-specific cost-benefit variance provision was therefore in error, as was its remand of the national performance standards for clarification of whether cost-benefit analysis was impermissibly used. [citations omitted] Breyer concurred in part and dissented in part. Stevens filed a dissenting opinion, joined by Ginsburg and Souter. Stevens argued:Like the Court of Appeals, I am convinced that the EPA has misinterpreted the plain text of §316(b). Unless costs are so high that the best technology is not "available," Congress has decided that they are outweighed by the benefits of minimizing adverse environmental impact. Section 316(b) neither expressly nor implicitly authorizes the EPA to use cost-benefit analysis when setting regulatory standards; fairly read, it prohibits such use. This case consolidated issues in two cases: PSEG Fossil v. Riverkeeper (07-589) [docket], and Utility Water Act Group v. Riverkeeper (07-597) [docket].
The Court ruled [opinion, PDF] 7-2 in Harbison v. Bell [Cornell LII backgrounder; JURIST report] that indigent death row inmates are entitled to federally-provided counsel in their pursuit of state clemency claims. The issue turns on the interpretation of 18 USC § 3599 [text]. The US Court of Appeals for the Sixth Circuit [official website] ruled [opinion, PDF] for the state that there is no such entitlement. Reversing the lower court, Stevens wrote "that §3599 authorizes federally appointed counsel to represent their clients in state clemency proceedings and entitles them to compensation for that representation." Chief Justice John Roberts and Justice Thomas filed concurring opinions. Scalia filed an opinion concurring in part and dissenting in part, in which Justice Samuel Alito joined. Scalia concurred that the defendant was not required to obtain a certificate of appealability under 28 USC § 2253(c)(1)(A) [text] before appealing, but disagreed that the defendant was entitled to federally appointed counsel. Scalia wrote:While purporting to adopt a "straightforward reading of the statute," the Court in fact selectively amends the statute inserting words in some places, twisting their meaning elsewhere. Because the statute is most naturally and coherently read to provide federally funded counsel to capital defendants appearing in a federal forum, I would affirm the decision of the Sixth Circuit and hold that Harbison was not entitled to federally funded counsel to pursue state clemency.


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DOJ lawyers questioned constitutionality of DC voting rights bill: report
Matt Glenn on April 1, 2009 8:42 AM ET

[JURIST] US Attorney General Eric Holder [official website] overruled Department of Justice (DOJ) [official website] lawyers who believe the District of Columbia Voting Rights Act of 2009 [S.160, PDF; JURIST report] pending in Congress violates the Constitution, the Washington Post [media website] reported [text] Wednesday. The proposed bill would give District of Columbia (DC) residents voting rights for the House of Representatives [official website] and give Utah an additional seat in the House. According to the report, Office of Legal Counsel (OLC) [official website] lawyers warned Holder, who supports the bill, that the legislation would violate language in the Constitution [Art. 1, § 2 text] stating that the House shall be "composed of members chosen every second year by the people of the several states." After OLC lawyers advised Holder of the bill's possible unconstituionality, Holder allegedly requested an opinion from the Office of the Solicitor General (OSG) [official website]. Former OLC deputy M. Edward Whelan claims [National Review Online blog] that by rejecting the advice of the OLC and turning to the OSG, Holder ignored sound legal advice in order to achieve the political goal of seeing the legislation passed. The report states that OSG lawyers told Holder they could defend the bill's constitutionality before the courts.
The House previously approved a DC voting rights bill in 2007, although it was later rejected by the Senate [JURIST reports]. The Congressional Research Service [official website] found that bill was likely unconstitutional for the same reasons [JURIST report] as the current bill is being questioned. DC Vote [advocacy website] claims that DC residents have the constitutional right [DC Vote materials] to vote for representation in the house on a number of grounds.


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House approves journalist shield bill
Ximena Marinero on April 1, 2009 8:01 AM ET

[JURIST] The US House of Representatives [official website] approved Tuesday a bill that would limit the government's ability to compel reporters to disclose confidential sources by delineating conditions under which it may do so. The Free Flow of Information Act of 2009 [H.R. 985 materials] was approved swiftly through a voice vote, though several opponents noted law enforcement and national security concerns. Under the bill's terms, parties seeking the identity of confidential sources from reporters in federal court must show that the information relates to an act of terrorism, national security, disclosure of trade secrets, or the imminent risk of death or serious bodily harm. The court must further be convinced that the party seeking the disclosure has exhausted all other means of acquiring the information, and that "the public interest in compelling disclosure of the information or document involved outweighs the public interest in gathering or disseminating news or information." The bill also requires that the subject of a disclosure request be informed and given an opportunity to be heard before a communications service provider is compelled to disclose information about his or her activity. The act would limit the scope of protection to reporters who receive "a substantial portion of the person's livelihood or ... substantial financial gain" from reporting, leaving many bloggers without an equivalent protection. Bill sponsor Representative Rick Boucher (D-VA) called the vote [statement text] "a major victory for the public's right to know." A Senate counterpart [S.448 materials], sponsored by Senator Arlen Specter (R-PA), is currently under consideration by the Senate Judiciary Committee [official website].
The House Judiciary Committee approved the bill [JURIST report] last week. In 2007, the House approved a similar bill [JURIST report] by a 398-21 vote. The measure died in the Senate under threat of presidential veto, despite a 15-2 vote in the Senate Judiciary Committee [JURIST report]. The bill was first proposed in May 2006, partially in response to the controversial 85-day jailing of New York Times journalist Judith Miller [JURIST news archive] after she refused to reveal a source to the federal grand jury investigating the leak of the identity of CIA agent Valerie Plame [JURIST news archive]. Other journalists have also faced contempt charges for refusing to reveal sources. In November, the US Court of Appeals for the District of Columbia vacated [JURIST report] a contempt order [JURIST report] against former USA Today reporter Toni Locy [JURIST news archive], who had refused to reveal government sources for a series of articles she wrote about the 2001 anthrax attacks [JURIST news archive].


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Khodorkovsky embezzlement trial begins as court refuses request for Putin testimony
Andrew Gilmore on April 1, 2009 7:13 AM ET

[JURIST] A Russian court heard arguments Tuesday at the start of the trial of former Russian oil executive Mikhail Khodorkovsky [defense website; JURIST news archive] and his former business partner Platon Lebedev [defense website] on embezzlement and money laundering charges [JURIST report]. As the trial began, the court refused a request [AFP report] by Khodorkovsky's lawyers to call Russian prime minister and former president Vladimir Putin [JURIST news archive] as a defense witness. The court also refused an additional defense request [RIA Novosti report] to have one of the parties against Khodorkovsky in the lawsuit, the Russian oil company Rosneft [corporate website], removed from the proceedings. Khodorkovsky and Lebedev are accused of illegally taking approximately $20 billion from Russian energy firm OAO Yukos Oil Co. [TIME backgrounder], but challenged the allegations, asserting that the evidence against them was insufficient [RIA Novosti report] to sustain the prosecution. If found guilty, Khodorkovsky could face 22 years in jail in addition to the eight years he is already serving for fraud and tax evasion.
Two weeks ago, the court refused a request [JURIST report] by Khodorkovsky and Lebedev to have the charges against them dropped, one day after Judge Viktor Danilkin refused to recuse himself [St. Petersburg Times report] from the case amid accusations of bias. Critics have claimed that the charges against Khodorkovsky and Lebedev are politically motivated due to Khodorkovsky's opposition against Putin. The transfer of the two from prison to Moscow to stand trial on the new charges was ordered [JURIST report] last month by a judge for the District Court in Moscow. Khodorkovsky still maintains that his 2005 conviction [JURIST report] on the fraud and tax evasion was unjust, and maintains his innocence. He requested early release from that sentence last July, but his application was rejected [JURIST reports] in August because he disobeyed guards at the Krasnokamensk penal colony [Guardian backgrounder], refused to participate in a training program, and faced the possibility of additional charges. Khodorkovsky has appealed [JURIST report] that decision.


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