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Legal news from Monday, May 24, 2010




Obama introduces legislation seeking wider authority to cut spending
Dwyer Arce on May 24, 2010 5:25 PM ET

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[JURIST] US President Barack Obama sent legislation [text, PDF] to Congress on Monday that would give the president the ability to force Congress to vote on a repeal of spending provisions once they have been signed into law. Under the Reduce Unnecessary Spending Act of 2010, the president would have 45 days after signing spending legislation into law to issue a rescission proposal specifying the amount to be rescinded, the agency or program that will be affected, and the president's reasons for the rescission request. After issuing the proposal, the Office of Management and Budget (OMB) [official website] would be authorized to withhold disbursement of the funds "notwithstanding any other provision of law." After the rescission is proposed, it must be considered by the appropriate committee of the House of Representatives [official website] within four days, and must be voted on, without amendment, by the committee. Otherwise, the proposal will be automatically removed from committee, allowing any member of the House to move to consider the proposal. OMB Director Peter Orszag [official profile] promoted the bill [statement], stating:
The Reduce Unnecessary Spending Act will empower the President and the Congress to eliminate unnecessary spending while discouraging waste in the first place. This is critically important both because we should never tolerate taxpayer dollars going to programs that are duplicative or ineffective and because, especially in the current fiscal environment, we cannot afford this waste.
House Minority Leader John Boehner (R-OH) [official website] reacted favorably [press release] to the proposed legislation, but urged Obama to "call on Democrats in Congress to pass a real budget that reins in overall federal spending." Representative John Spratt (D-SC) [official website] will formally introduce [AP report] the bill later this week.

The proposed legislation is similar to that introduced to Congress by former president George W. Bush [official profile] in 2006, which was defeated in the Senate [official website] by a Democratic filibuster. In 1998, the Supreme Court [official website] ruled in Clinton v. City of New York [Cornell LII backgrounder] that the Line Item Veto Act (LIVA) [legislative materials] violated the Presentment Clause of the US Constitution [text], which only provides for the president to sign or veto a bill in its entirety. LIVA gave the president the unilateral ability to veto certain spending provisions after they had been signed into law, unless two-thirds of both houses of Congress voted to override the line item veto.




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Supreme court upholds fee shifting in ERISA case
Sarah Miley on May 24, 2010 2:55 PM ET

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[JURIST] The US Supreme Court [official website; JURIST news archive] on Monday ruled [opinion, PDF] unanimously in Hardt v. Reliance Standard Life Insurance Co. [Cornell LII backgrounder; JURIST report] that fee claimants filing lawsuits under the Employee Retirement Income Security Act (ERISA) [materials] are not required to be a "prevailing party" in order to be eligible for an attorney's fees award under 29 USC s. 1132(g)(1) [text]. The fee-shifting statute applies in most ERISA lawsuits and allows the court to use discretion in assigning reasonable attorney's fees to either party. Bridget Hardt filed a claim under ERISA against her employer's insurance carrier, Reliance, after the carrier discontinued long term benefits it had previously awarded for a work-related injury. In pre-trial proceedings, the district court found "compelling evidence" in favor of Hardt but did not grant summary judgment in order to allow Reliance to reassess Hardt's application. Reliance complied with the district court order and upon further evaluation reinstated Hardt's benefits. No judgment was issued, but the district court awarded Hardt attorney's fees under s. 1132. The US Court of Appeals for the Fourth Circuit vacated [opinion, PDF] the fees award granted by the lower court, holding that Hardt had failed to establish that she qualified as a prevailing party. Justice Clarence Thomas, delivering the opinion of the court, held that the circuit court's addition of a prevailing party requirement was "inventing a statute rather than interpreting one" because s. 1132 expressly denotes that the district court can use its discretion to award attorney's fees to either party, and incorporates no "prevailing party" provision. Therefore, a court may award fees and costs under s. 1132(g)(1), as long as the fee claimant has achieved "some degree of success on the merits." The case was reversed and remanded to the Fourth Circuit for proceedings consistent with the Supreme Court's judgment.

In April, the Supreme Court ruled [JURIST report] that a district court has an obligation to defer to an ERISA plan administrator's reasonable interpretation of the terms of the plan if the plan administrator arrived at the interpretation outside the context of an administrative claim for benefits. The US Court of Appeals for the Second Circuit had ruled that a district court is under no obligation to defer to an ERISA plan administrator's interpretation and that a district court has "allowable discretion" to adopt any "reasonable" interpretation of the terms of the plan.




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Supreme Court rules on plain error in alleged ex post facto violation
Dwyer Arce on May 24, 2010 2:15 PM ET

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[JURIST] The US Supreme Court [official website; JURIST news archive] on Monday ruled [opinion, PDF] 7-1 in United States v. Marcus [Cornell LII backgrounder] that the lower court had misapplied precedent interpreting plain error in an alleged ex post facto violation. The court held that the US Court of Appeals for the Second Circuit had erred in its interpretation of two criteria in finding that a plain error had occurred at trial under Rule 52(b) [text] of the Federal Rules of Criminal Procedure, which would allow the defendant to raise the defense of an ex post facto violation for the first time on appeal. The Second Circuit held [opinion, PDF] that the appropriate standard for plain error review of an asserted ex post facto violation was whether "there is any possibility, no matter how unlikely, that the jury could have convicted based exclusively on pre-enactment conduct." In overturning this standard, Justice Stephen Breyer explained:
[Case law] set[s] forth ... that an appellate court may, in its discretion, correct an error not raised at trial only where the appellant demonstrates that (1) there is an "error"; (2) the error is "clear or obvious ... "; (3) the error "affected the appellant's substantial rights, which in the ordinary case means" it "affected the outcome of the district court proceedings"; and (4) "the error seriously affect[s] the fairness, integrity or public reputation of judicial proceedings." In our view, the Second Circuit's standard is inconsistent with the third and the fourth criteria set forth in these cases. The third criterion ... means that there must be a reasonable probability that the error affected the outcome of the trial. Th[e] standard [used by the Second Circuit] is irreconcilable with our "plain error" precedent. In cases applying this fourth criterion, we have suggested that, in most circumstances, an error that does not affect the jury's verdict does not significantly impugn the "fairness," "integrity," or "public reputation" of the judicial process.
Justice John Paul Stevens filed a dissenting opinion, disagreeing with the majority's conclusion that the appellate court was outside of its discretion:
The trial error at issue in this case undermined the defendant's substantial rights by allowing the jury to convict him on the basis of an incorrect belief that lawful conduct was unlawful. ... [T]he Court of Appeals properly exercised its discretion to remedy the error and to order a retrial.
Justice Sonia Sotomayor took no part in the proceedings. She heard the case when it was before the Second Circuit prior to her nomination [JURIST report] to the Supreme Court.

Respondent Glenn Marcus was convicted of sex trafficking and forced labor under the Trafficking Victims Protection Act [text, PDF], enacted in October 2000, for conduct that spanned from January 1999 to October 2001. In February, the Supreme Court heard oral arguments [transcript, PDF; JURIST report] for the case. Counsel for the US government argued that, "[u]nder Rule 52(b), a defendant asserting a forfeited claim of error may prevail only by showing at a minimum a reasonable possibility that the error actually affected the outcome of the case." Counsel for the respondent argued for the application of the Second Circuit's standard.




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Supreme Court rules on mandatory minimum sentencing for federal gun crimes
Dwyer Arce on May 24, 2010 1:16 PM ET

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[JURIST] The US Supreme Court [official website; JURIST news archive] on Monday ruled [opinion, PDF] unanimously in United States v. O'Brien [Cornell LII backgrounder] that the question of whether a firearm is a machine gun must be proved to the jury beyond a reasonable doubt and is not a sentencing factor to be considered by the judge by a preponderance of the evidence. The court held that the type of firearm used in perpetrating a crime was an element of the crime under mandatory minimum sentencing guidelines. The government had attempted to extend the sentence of the respondents under 18 USC s. 924(c) [text], which sets a mandatory minimum sentence of 30 years for using a machine gun during a crime. The US Court of Appeals for the First Circuit ruled [opinion, PDF] that such a determination should be made by a jury. In doing so, the court relied on statutory interpretation outlined by the Supreme Court in Castillo v. United States [opinion, PDF; Cornell LII backgrounder] in interpreting a previous version of s. 924(c), creating a circuit split. The First Circuit held that the amendment to the statute had not altered the holding of Castillo. In upholding the decision below, Justice Anthony Kennedy explained:
Th[e] structural or stylistic change ... does not provide a "clear indication" that Congress meant to alter its treatment of machineguns as an offense element. A more logical explanation for the restructuring is that it broke up a lengthy principal paragraph, which exceeded 250 words[,] ... into a more readable statute. This is in step with current legislative drafting guidelines, which advise drafters to break lengthy statutory provisions into separate subsections that can be read more easily. ... These points are overcome, however, by the substantial weight of the other Castillo factors and the principle that Congress would not enact so significant a change without a clear indication of its purpose to do so. The evident congressional purpose was to amend the statute to ... make [it] more readable but not otherwise to alter the substance of the statute. The analysis and holding of Castillo control this case. The machinegun provision in [s.] 924(c)(1)(B)(ii) is an element of an offense.
Justice John Paul Stevens filed a concurring opinion, and Justice Clarence Thomas filed an opinion concurring in the judgment only.

Respondents Martin O'Brien and Arthur Burgess made a failed attempt to rob an armored car in 2005, using a firearm that the FBI alleged had been modified to operate as a fully-automatic weapon. The court heard oral arguments [transcript, PDF; JURIST report] in February. Counsel for the petitioner, the US government, argued that the language of the statute requires a judge to make the determination. Counsel for the respondents argued that such a result is foreclosed by the Supreme Court's statutory interpretation jurisprudence.




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Supreme Court rules NFL teams not single entity for antitrust purposes
Jaclyn Belczyk on May 24, 2010 12:41 PM ET

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[JURIST] The US Supreme Court [official website; JURIST news archive] on Monday ruled [opinion, PDF] unanimously in American Needle v. NFL [Cornell LII backgrounder; JURIST report] that the National Football League (NFL) [league website] and its member teams are not a single entity that is exempt from rule of reason claims under Section 1 of the Sherman Antitrust Act [text]. The US Court of Appeals for the Seventh Circuit ruled [opinion, PDF] that the NFL and its member teams are a single entity under the Sherman Act. Reversing the decision below, Justice John Paul Stevens wrote:
Football teams that need to cooperate are not trapped by antitrust law. "[T]he special characteristics of this industry may provide a justification" for many kinds of agreements. The fact that NFL teams share an interest in making the entire league successful and profitable, and that they must cooperate in the production and scheduling of games, provides a perfectly sensible justification for making a host of collective decisions. But the conduct at issue in this case is still concerted activity under the Sherman Act that is subject to s. 1 analysis.
The case was remanded to the district court for further proceedings.

The NFL and its 32 member teams teams reached an agreement with Reebok [corporate website] to license and sell consumer headwear and clothing with the respective teams' logos and not to grant licenses to Reebok's competitors for 10 years. The antitrust suit was brought by American Needle [corporate website], which argued that the contract violated the Sherman Act.




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Supreme Court rules on time limits for employment discrimination suits
Jaclyn Belczyk on May 24, 2010 11:18 AM ET

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[JURIST] The US Supreme Court [official website; JURIST news archive] on Monday ruled [opinion, PDF] unanimously in Lewis v. City of Chicago [Cornell LII backgrounder; JURIST report] that a plaintiff who fails to file a timely challenge against the adoption of a discriminatory employment practice can later file a disparate impact claim challenging the application of the practice. The question was whether a plaintiff seeking to bring a disparate impact employment discrimination suit must file a charge with the Equal Employment Opportunity Commission (EEOC) [official website] within 300 days after test results were released or 300 days after hiring decisions were announced. The US Court of Appeals for the Seventh Circuit ruled [opinion, PDF] that the statute of limitations began running when the allegedly disparate results were announced, not when hiring decisions were made. Writing for a unanimous court, Justice Antonin Scalia reversed the decision below, distinguishing disparate impact claims from disparate treatment claims:
For disparate-treatment claims - and others for which discriminatory intent is required - that means the plaintiff must demonstrate deliberate discrimination within the limitations period. But for claims that do not require discriminatory intent, no such demonstration is needed. Our opinions, it is true, described the harms of which the unsuccessful plaintiffs in those cases complained as "present effect[s]" of past discrimination. But the reason they could not be the present effects of present discrimination was that the charged discrimination required proof of discriminatory intent, which had not even been alleged. That reasoning has no application when, as here, the charge is disparate impact, which does not require discriminatory intent.
The case involved minority firefighters in Chicago who alleged that the city's eligibility test had a discriminatory impact on African Americans.

Last year, US President Barack Obama signed into law [JURIST report] the Lilly Ledbetter Fair Pay Act of 2009 [S 181 materials], extending the deadline for employees to sue their employers for unequal pay discrimination under a disparate treatment theory. The law's "clarification" of equal pay protections effectively overturned the 2007 Supreme Court decision in Ledbetter v. Goodyear Tire & Rubber Co [opinion, PDF; JURIST report], which held that "a pay-setting decision is a discrete act that occurs at a particular point in time" and that the statutory period for filing a discrimination claim with the EEOC begins when that discrete act occurs. The new law altered Title VII of the Civil Rights Act of 1964 [text] to clarify that the six-month statute of limitations controlling racial, gender, or national origin employment discrimination suits is applicable to each instance of a discriminatory practice, including the receipt of each paycheck, not only to the initial discriminatory act. The initial lawsuit was brought by Lilly Ledbetter, a 19-year Goodyear employee, who alleged that she received less pay than male counterparts because of gender discrimination. The Supreme Court upheld the US Court of Appeals for the Eleventh Circuit's reversal [opinion, PDF] of a district court decision awarding Ledbetter $360,000 in damages.




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Supreme Court grants certiorari in five cases
Sarah Miley on May 24, 2010 10:19 AM ET

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[JURIST] The US Supreme Court [official website; JURIST news archive] on Monday granted certiorari [order list, PDF] in five cases. In Williamson v. Mazda Motor of America [docket; cert. petition, PDF], the court granted a limited petition to decide whether a federal minimum safety standard [text], which authorizes automobile manufacturers to install a lap-only seat belt at the inboard seating positions of a vehicle, preempts a state tort action alleging that the manufacturer should have installed a lap and shoulder belt in one of those seating positions. A California state appeals court [official website] held [opinion, PDF] that a state action was preempted by Federal Motor Vehicle Safety Standard No. 208 [text], which requires lap and shoulder seat belt assemblies only for outboard seating. Petitioners claim that Mazda [corporate website] had a duty to warn of safety risks associated with lap only seat belts under Wyeth v. Levine [opinion, PDF; JURIST report], in which the Supreme Court ruled that federal approval of labels giving warnings about effects of drugs does not bar lawsuits under state law claiming inadequate warnings of a health risk.

The court also granted a limited petition in Sossamon v. Texas [docket; cert. petition, PDF] to decide whether an individual may sue a state or state official in his official capacity for damages for violations of the Religious Land Use and Institutionalized Persons Act [42 USC s. 2000cc text], which grants prisoners permission to obtain injunctive and declaratory relief against the government when it imposes a substantial burden on the religious exercise of a inmate. The US Court of Appeals for the Fifth Circuit reversed [opinion, PDF] a grant of summary judgment in favor of Texas and ordered further proceedings to determine if Texas had been exceeded its bounds under the act by prohibiting Sossamon to use the prison chapel for Christian worship, even though it was available for other uses.

The court granted certiorari to another federal preemption case on Monday in AT&T Mobility v. Concepcion [docket; cert. petition, PDF]. The court will decide whether the Federal Arbitration Act (FAA) [text], which provides for judicial facilitation of private dispute resolution through arbitration when the transaction involves interstate commerce, preempts states from enforcing alternate solutions when arbitration clauses are considered unconscionable. The US Court of Appeals for the Ninth Circuit held [opinion, PDF] that the FAA does not preempt a California unconscionability law, which allowed a class action against AT&T mobile despite a contractual clause prohibiting such proceedings.

In Arizona Christian School Tuition Organization v. Winn [docket; cert. petition, PDF] and Garriott v. Winn [docket; cert. petition, PDF], the court granted a consolidated petition, allowing one hour for oral argument. The court will determine the constitutionality of an Arizona tax credit for donations to organizations that provide scholarships at private schools, which allows scholarships funded by religious organizations to be granted only to students attending parochial schools. The US Court of Appeals for the Ninth Circuit held [opinion, PDF] that the taxpayers had standing to challenge the constitutionality of the law and allowed the claim to proceed. The outcome will determine if tax credit program unconstitutionally endorses or advances religion simply because taxpayers choose to direct more contributions to religious organization than nonreligious ones.

In Skinner v. Switzer [docket; cert. petition, PDF], the court will decide whether a convicted prisoner seeking access to biological evidence for DNA testing may assert a civil rights claim under Section 1983 [text] or if such a claim is cognizable only under a writ of habeas corpus. The US Court of Appeals for the Fifth Circuit affirmed [opinion, PDF] a district court decision to dismiss Skinner's s. 1983 claim seeking access to DNA evidence that may prove his innocence in the murders for which he is now sentenced to death, stating that relief could only be sought through habeas corpus. The Supreme Court court also granted a stay of execution until the case is decided.

The court dismissed [opinion, PDF] a writ of certiorari as improvidently granted in Robertson v. US ex rel. Watson [docket; JURIST report], which challenged the constitutionality of a District of Columbia law under which a private party can bring an action for criminal contempt. The decision included a lengthy dissent from Chief Justice Roberts joined by Justices Antonin Scalia, Anthony Kennedy, and Sonia Sotomayor, maintaining that a criminal action can only be brought against a defendant by society as a whole, and therefore the lower court erred in its judgment upholding the law.

Also Monday, the Supreme Court delivered a per curiam opinion for a summary reversal in the capital case of Jefferson v. Upton [docket]. The court reversed and remanded the judgment of the US Court of Appeals for the Eleventh Circuit, which held that ineffective council defenses under habeas claims are subject to a higher standard than the normative "strong presumption of correctness" standard. The court's opinion is its twelfth summary reversal this session.




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Australia government announces new military court
Dwyer Arce on May 24, 2010 9:41 AM ET

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[JURIST] Australian Defense Minister John Faulkner and Attorney General Robert McClelland [official websites] announced Monday that the government will establish a new military court [press release] as part of a restructuring of the federal court system. The Military Court of Australia will be administered by the Federal Court of Australia and will have jurisdiction over Australian Defense Force (ADF) [official websites] personnel operating overseas who are accused of committing serious service offenses or elect to have their cases heard by the court. Judges on the court will be required to have military experience or familiarity with the armed forces but cannot be ADF members or within the military chain of command. In the joint statement, McClelland outlined the benefits of the new courts, stating:
Judicial officers appointed to the new Military Court of Australia will have the same independence and constitutional protections that apply in other federal courts. ... This new structure will achieve a more integrated and efficient system in order to effectively deliver legal and justice services to both the civilian and defence community.
Additionally, the proposed court restructuring would give jurisdiction over family law cases solely to the Family Court and would retain the Federal Magistrates Court [official websites] to exercise general federal law jurisdiction. Legislation to establish the new military court is to be introduced to the Parliament [official website] later this year, and the Military Court is expected to be operational by the end of 2011.

The new military courts would replace the interim arrangements that had been in use after the Australian Military Court (AMC) [Department of Defense backgrounder] was found unconstitutional [judgment text; JURIST report] by the High Court of Australia [official website] in August. The High Court held that the AMC employed the judicial power of the Commonwealth while AMC judges functioned within the hierarchy of the military, violating chapter three of the Australian Constitution [text]. The ruling cast doubt on approximately 170 cases that the AMC had ruled on since its inception in 2007. The case that prompted the ruling was brought as an appeal by sailor Brian Lane over a 2005 charge of indecent assault on a superior officer. Lane had argued [The Australian report] that the AMC did not have jurisdiction over the case and that the legislation creating the court was invalid. In response to the ruling, Faulker said that the previous military justice system would be reinstated [press release], which consisted mainly of trials by court martial and ADF magistrates. The AMC was established by the government of former prime minister John Howard [BBC profile] after a series of Senate Committee reports were critical of the system of military justice and recommended extensive changes.




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US violent crime rate drops for third straight year: FBI
Sarah Miley on May 24, 2010 8:38 AM ET

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[JURIST] The FBI on Monday released preliminary annual crime statistics for 2009, which indicated a drop in violent crime [press release] for the third year in a row. The FBI's Preliminary Annual Uniform Crime Report [text] disclosed that violent crime in the nation decreased 5.5 percent, and property crime declined 4.9 percent, when compared with data from 2008. According to the report, all four categories of violent crime fell in 2009, including murder and nonnegligent manslaughter, forcible rape, robbery, and aggravated assault. There were also declines across the board for all city groups, with large metropolitan areas having the biggest decrease at 7.5 percent. Additionally, property crime has continued to decrease for the seventh year in a row. The FBI compiled the data from crime statistics from more than 13,000 law enforcement agencies nationwide. The numbers in the report are preliminary and will be made official later this year.

In December, the FBI released a preliminary report covering the first half of 2009 [JURIST report], indicating a 4.4 percent decrease in violent crime from January to June. Specifically, murder decreased 10 percent, robbery dropped 6.5 percent, forcible rape fell 3.3 percent, and aggravated assault decreased 3.2 percent. While violent crime rates dropped across the country as a whole, in cities of populations between 10,000 and 24,999, violent crime increased 1.7 percent. The drop follows a 1.9 percent decrease for 2008 and a 0.7 percent decrease [JURIST reports] for 2007. That came after two years of increasing rates of similar crimes, including a 2006 increase of 1.3 percent and a 2005 increase of 2.3 percent [JURIST reports].




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