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Legal news from Thursday, May 19, 2011




European Commission threatens legal action against member states over banking rules
Julia Zebley on May 19, 2011 3:09 PM ET

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[JURIST] The European Commission (EC) [official website] threatened [press release] on Thursday to send 10 member states to the European Court of Justice [official website] if they do not fully implement the Third Capital Requirements Directive 2010/76/EU [text, PDF]. The deadline for implementation was January 1, but Greece, Italy, Poland, Portugal, Slovenia and Spain have yet to implement any measures of the directive, and Belgium, Luxembourg, Slovakia and Sweden have only partially implemented the directives.
The Directive in question amends the Capital Requirements Directives (2006/48/EC and 2006/49/EC). The aim of these Directives is to ensure the financial soundness of banks and investment firms. Together they stipulate how much of their own financial resources banks and investment firms must have in order to cover their risks and protect their depositors.
Later that day, Sweden promised [Bloomberg report] to implement the EC's recommendations. Spain also stated that they had complied [Bloomberg report] with almost all of the new directives. Greece, Slovakia, Poland and Slovenia are all drafting legislation on the topic. Italy, Portugal, Belgium and Luxembourg did not comment. Greece, Italy, Poland, Portugal, Slovenia and Spain have two months to explain how they will implement the new regulations.

Principal changes include remuneration policies and practices within banks, capital requirements for resecuritisations, disclosure of securitisation exposures and capital requirements for the trading book. Specifically, the law restricts payments of "bank bonuses" and forces banks to disclose employees earning more than one million euro. The law, which has only been partially implemented in Belgium, Luxembourg, Slovakia and Sweden, concerns a requirement that banks have a certain amount of capital on hand at all times. The EC is responsible for ensuring European Union (EU) [official website] law is applied throughout all member states.




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Federal appeals court upholds renewal license for oldest nuclear plant
Zach Zagger on May 19, 2011 1:40 PM ET

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[JURIST] The US Court of Appeals for the Third Circuit [official website] Thursday upheld [opinion, PDF] the US Nuclear Regulatory Commission (NRC) [official website] decision to renew the operating license of the nation's oldest nuclear power plant. The court held the NRC did not abuse its discretion in renewing the license for another 10 years for the 40-year-old New Jersey plant. The New Jersey Environmental Federation (NJEF) [advocacy website] challenged the NRC procedures used to approve the renewal, seeking to force the NRC to reconsider the decision to renew the license. NJEF argues there is corrosion of the steel containment unit that encloses the reactor vessel may be causing radiation to leak into the Oyster Creek. The plant's owner, Exelon [corporate website], produced evidence that it had sufficiently protected against leakage and agreed to shut down the plant in 10 years. The court, on an abuse of discretion standard, found that NJEF did not meet its burden to reopen the record and refused to interfere with the agencies expertise:
We commend Citizens for their diligence in bringing these issues to the attention of the Board and the NRC. We also recognize that the Board and the NRC provided hundreds of pages detailing their decision making and gave due consideration to Citizens' concerns. We are confident that the NRC's review of Exelon's application was well-reasoned, and we will not second-guess technical decisions within the realm of its unique expertise.
The court also asked that the NRC, Exelon and NJEF comment on how the disaster in Japan causing a meltdown at the Fukushima Dai-ichi Nuclear Power Station should impact the Oyster Creek. The court concluded based on the NRC's determination that the containment was adequate that the events in Japan did not support granting the NJEF's petition. In April, Tamar Cerafici of the Cerafici Law Firm argued [JURIST op-ed] that the nuclear crisis in Japan highlights the need for an international response with clear, measured leadership from the US, saying that leadership is hollow unless the US adopts a coherent energy policy paying more than a begrudging acceptance of nuclear power. Last July, three administrative law judges with the NRC Atomic Safety and Licensing Board [official website] denied a request [JURIST report] by the Obama administration and the US Department of Energy (DOE) [official website] to withdraw the government's application for a license to construct a permanent nuclear waste repository [Berkeley Lab backgrounder] in Yucca Mountain, Nevada. The DOE filed a motion to withdraw the application in March 2010 claiming that Yucca Mountain is not a "workable option" for the long-term disposal of nuclear waste and that "alternatives will better serve the public interest."



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Maryland passes bill forcing railroad to disclose Holocaust activities
Julia Zebley on May 19, 2011 12:58 PM ET

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[JURIST] Maryland Governor Martin O'Malley [official website] on Thursday signed into law a bill [SB 479 materials] designed to force French rail company SNCF [corporate website] to disclose its participation in the Holocaust to receive a state rail contract. SNCF allegedly transported 76,000 Jews and other prisoners [JTA report] from Paris to the German border from 1942 to 1944. Since their American subsidiary, Keolis America [official website], is pursuing a Maryland Area Regional Commuter train contract, SNCF will now be required to post all of their transportation records from the Holocaust. Due to bills pending [S 634; HR 1193] in the US Senate and House of Representatives, this could open up SNCF and other railroads that transported Jews for the Nazis to lawsuits in federal courts.

Prosecution of Nazis and their collaborators continues internationally. A Hungarian court began the trial [JURIST report] of accused Nazi Sandor Kepiro earlier this month, charged with war crimes committed during the 1942 Novi Sad massacre in Serbia. The trial of accused Nazi guard John Demjanjuk [NNDB profile, JURIST news archive] ended when he was convicted [JURIST report] but released because of his advanced age [DW report]. An appeal [JURIST report] is pending. In November, Nazi guard Samuel Kunz [Trial Watch profile], 89, passed away [JURIST report] in his home before he could be brought to trial. He was accused of aiding in the killing of hundreds of thousands of Jewish people at the Belzec concentration camp [HRP backgrounder].




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Hungary Nazi trial resumed after test of mental capabilities
Julia Zebley on May 19, 2011 12:14 PM ET

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[JURIST] The trial [JURIST report] of accused Nazi Sandor Kepiro esumed on Thursday after tests proving Kepiro was mentally capable of proceeding. After Kepiro said he could not understand Judge Bela Varga earlier this month, Varga ordered mental and hearing tests for the defendant. Kepiro returned to the court [AFP report] with special headphones to enable his hearing. Kepiro, 97, was named as the world's most wanted Nazi war crimes suspect by the Simon Wiesenthal Center (SWC) [advocacy website], a Jewish human rights organization committed to finding and prosecuting Holocaust war criminals. Kepiro was convicted both in 1944 and 1946 and sentenced to 10 years for involvement in the raids, but he was released and fled to Argentina. He was located and apprehended by the SWC in 2006 and charged [JURIST report] in February. Kepiro has denied all charges. A verdict is expected on June 3.

Kepiro's trial is likely one of the last of an accused Nazi. Earlier this month, the trial of accused Nazi guard John Demjanjuk [NNDB profile, JURIST news archive] ended when he was convicted [JURIST report] but released because of his advanced age [DW report]. An appeal [JURIST report] is pending. In November, Nazi guard Samuel Kunz [Trial Watch profile], 89, passed away [JURIST report] in his home before he could be brought to trial. He was accused of aiding in the killing of hundreds of thousands of Jewish people at the Belzec concentration camp [HRP backgrounder].




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Bahrain court sentences Shiite cleric, 8 others for police kidnapping
Julia Zebley on May 19, 2011 11:34 AM ET

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[JURIST] Bahrain's Lower National Safety Court on Thursday sentenced nine citizens to 20 years in prison for kidnapping a police officer [BNA report]. The decision was announced by the government-owned Bahrain News Agency, without details of the charges or the incident. Among the convicted was prominent Shiite cleric Mohammed Habib al-Saffaf. The Bahrain Youth Society for Human Rights [advocacy website] said that all nine were involved in previous anti-government demonstrations [statement]. This special court, instituted in mid-March under King Hamad bin Isa Al Khalifa's three-month state of emergency [JURIST report] has been internationally criticized, most recently [JURIST report] by Human Rights Watch (HRW) [advocacy website].

Six opposition leaders were arrested [JURIST report] in March after the government, backed by foreign troops from the Gulf Cooperation Council (GCC) [official website], violently dispersed protesters in the capital of Manana. Many protesters are calling for the removal of the royal family, which has been in power since the 18th century. UN High Commissioner for Human Rights Navi Pillay [official profile] urged the government of Bahrain to release detained activists [JURIST report] and exercise restraint against protesters. She expressed concern over the prosecution of medical professionals and the death sentences [JURIST report] handed to four activists last month. In April, human rights organizations including HRW and Doctors Without Borders (DWB) [advocacy website] criticized Bahrain [JURIST report] for rampant human rights abuses related to anti-government protests.




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HRW urges further amendments to Bangladesh international crimes tribunal
Zach Zagger on May 19, 2011 11:11 AM ET

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[JURIST] Human Rights Watch (HRW) [advocacy website] sent a letter [text] to the Bangladesh government Thursday praising its International Crimes Tribunal (ICT) [Facebook page] to prosecute those responsible for atrocities committed during the 1971 struggle for independence, but urged the government to ensure that the trials are carried out in accordance with international human rights expectations. The letter, sent to Bangladesh Prime Minister Sheikh Hasina, praised the parliament's passage of amendments to its International Crimes (Tribunals) Act of 1973 (ICA) [text, PDF], including instituting civilian judges rather than military judges and mandating independence for the tribunal's judicial functions. However, HRW says, "that additional amendments to the Act and Rules are necessary to ensure that trials are carried out in accordance with Bangladesh's international human rights obligations, international criminal law, and Bangladesh's constitution." HRW says the act was in accordance with international standards at the time but needs to be updated to be more like other international criminal tribunals around the world such as International Criminal Tribunals for the former Yugoslavia and Rwanda and the Special Court for Sierra Leone [official websites].

Earlier this month, a petition was filed [bdnews24.com report] in the High Court challenging two sections of the ICA that were amended in 2009. The petition raises questions over whether the tribunal can prosecute any persons or only military personnel and over who may serve on the Supreme Court. In July 2010, the Bangladesh ICT issued four arrest warrants [JURIST report] for the leaders of the Islamist group Jamaat e Islami for crimes committed during 1971 Bangladesh Liberation War [GlobalSecurity backgrounders]. The Bangladesh ICT was established in March 2010 to hear cases against individuals accused of war crimes during the 1971 Bangladesh Liberation War [GlobalSecurity backgrounder]. According to Law Minister Shafique Ahmed [official profile], the tribunal will include [AP report] three high court judges and six investigators retired from civilian, law enforcement, and military careers.




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Ninth Circuit allows Argentine suit against Daimler AG for involvement in 'Dirty War'
Julia Zebley on May 19, 2011 10:31 AM ET

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[JURIST] The US Court of Appeals for the Ninth Circuit [official website] ruled [text, PDF] Wednesday that a lawsuit by Argentine citizens can proceed against Daimler AG [official website] for the actions of Mercedes-Benz Argentina [official website, in Spanish] during the nation's 1976-1983 "Dirty War" [GlobalSecurity backgrounder; JURIST news archive]. The suit, which was dismissed by the US District Court for the Northern District of California [official website] in 2005 due to a lack of jurisdiction, alleges that Mercedes-Benz Argentina "collaborated with state security forces to kidnap, detain, torture, and kill the plaintiffs and/or their relatives." The plaintiffs seek damages under the alien tort statute [text] and the Torture Victims Protection Act of 1991 [text]. The initial judgment stated that the case should be brought in Argentina or Germany, Daimler AG's place of incorporation. In the opinion, Judge Reinhardt rejected this and stated the US has jurisdiction over the claims:
The reality is that in an increasingly complex and globalized economy, international corporations such as DCAG reap enormous profits from the sale of their goods in the United States. The sales are achieved through the use of major distributors, frequently in the form of subsidiaries. Many international companies organize their corporate structure and establish subsidiaries for the sole purpose of obtaining the maximum benefit from the American market. To the ordinary American, and certainly to us, it would seem odd, indeed, if the manufacturer of Mercedes-Benz vehicles, which are sold in California in vast numbers by its American subsidiary, for use on the state's streets and highways, could not be required to appear in the federal courts of that state.
He also determined that neither Argentina nor Germany would be fully adequate forums to address the suit. Daimler AG intends to appeal the decision [Reuters report] and denies all charges stemming from the original lawsuit.

Argentina continues to prosecute those accused of committing human rights abuses during the Dirty War. Earlier this week, eight former Argentine military officers were convicted for the massacre of Margarita Belen [JURIST report]. An Argentine federal court in April sentenced [JURIST report] former general Eduardo Cabanillas to life in prison for his involvement in the Dirty War. Former general Luciano Benjamin Menendez, already serving a life sentence, was sentenced to an additional life sentence [JURIST report] in March for the attack and murder of five urban guerrilla group members. Also in March, an Argentine court commenced the trial of former dictators Jorge Videla [Trial Watch profile; JURIST news archive] and Reynaldo Bignone [JURIST news archive] for allegedly overseeing a systematic plan to steal babies [JURIST report] born to political prisoners. In December, Videla was sentenced to life in prison [JURIST report] for crimes against humanity. Also last May, Argentine authorities arrested [JURIST report] former secret service agent Miguel Angel Furci on charges of human rights abuses. Furci, a former agent of the Secretariat of State Intelligence (SIDE), was charged with 70 kidnappings and the torture of detainees at Orletti.




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Egypt revolution resulted in at least 840 deaths: Amnesty report
Zach Zagger on May 19, 2011 10:07 AM ET

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[JURIST] At least 840 people were killed, and more than 6,000 were injured during the Egyptian revolution to oust former president Hosni Mubarak [Al Jazeera profile; JURIST news archive], according to an Amnesty International (AI) [advocacy website] report [PDF] released Thursday. AI argues that Egypt must do more to deal with the victims of human rights violations the organization claims were perpetrated by Egypt's security forces. The report argues that the new Egyptian government should take three broad steps to remedying the violations: Egypt should "conduct full, impartial and independent investigations into all cases of human rights violations which took place during the unrest," provide financial compensation to those who suffered human rights violations, and "undertake a fundamental overhaul of all the security and law enforcement bodies, and make public a clear structure of the various security branches with a clear chain of command and full accountability under the law."

Earlier this month, former Egyptian interior minister Habib el-Adly was convicted [JURIST report] on charges of corruption and money laundering and sentenced to 12 years in prison. He is also set to face a separate trial this Saturday over his involvement in the killing of protesters. Mubarak is also facing charges [JURIST report] over the killings of protesters and could face the death penalty if convicted. He also faces charges [Ahram report] of corruption and embezzlement of public funds. Zakaria Shalash, head judge of the Cairo Court of Appeals, said this month that Mubarak may face execution [Ahram report] and that Adly's testimony could help prove Mubarak was an accomplice to the killings. In February, AI reported new evidence that the Supreme Military Council of Egypt had been torturing protester-detainees [JURIST report]. Through various detainee accounts, AI stated that individuals were tortured "to intimidate protesters and to obtain information about plans for the protests." Also in February, Human Rights Watch (HRW) [advocacy website] reported that the Egyptian military was improperly detaining protesters and allowing prisoner abuse [JURIST report].




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DOJ files brief in Florida health care appeal
Julia Zebley on May 19, 2011 9:22 AM ET

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[JURIST] The US Department of Justice (DOJ) [official website] on Wednesday urged the US Court of Appeals for the Eleventh Circuit [official website] to overturn a ruling [brief, PDF] declaring the Patient Protection and Affordable Care Act (PPACA) [HR 3590; JURIST news archive] unconstitutional. The DOJ argued that the health care reform law is constitutional due to the overwhelming burden on interstate commerce without the law's enactment:
Plaintiffs do not dispute that the commerce power allows Congress to regulate how people pay for services in the vast interstate health care services market, which is quintessential economic activity. They take issue, instead, with the means that Congress chose to regulate this economic activity. Plaintiffs urge that the correct way to ensure that people pay for the medical services they consume is not by imposing an insurance requirement, but by "imposing restrictions or penalties on individuals who attempt to consume health care services without insurance." ... Congress did not exceed its commerce power by opting to require minimum insurance coverage or the payment of a tax, instead of conditioning access to health care on the purchase of insurance and thereby denying the sick and injured access to medical care if they do not have coverage. Plaintiffs' proposed regulatory scheme disregards both the essential characteristics of the health care services market and the nature of insurance. Because the need for health care is unpredictable, plaintiffs' approach would require that individuals obtain insurance or else risk being left on the street after a car accident. Thus, under plaintiffs' scheme, the penalty for failing to maintain minimum coverage—denial of treatment—would be far more draconian than the tax penalty that Congress enacted.
In January, Judge Roger Vinson of the US District Court for the Northern District of Florida [official website] voided [JURIST report] the PPACA, saying that requiring all Americans over the age of 18 to have health insurance exceeded the power of Congress under the Commerce Clause [Cornell LII backgrounder]. The DOJ filed an appeal [JURIST report] in March.

Court challenges to the PPACA continue across the nation. Earlier this week, the American Center for Law and Justice (ACLJ) [advocacy website] sought reinstatement [JURIST report] of its dismissed lawsuit challenging the constitutionality of the health care reform law. In April, the US Supreme Court denied [JURIST report] Virginia's request for the court to rule on the constitutionality of the health care reform law on an expedited basis. A judge for the US District Court for the District of New Jersey [official website] rejected [JURIST report] a lawsuit challenging its constitutionality, on jurisdictional grounds of standing [Cornell LII backgrounder], similar to a dismissal [JURIST report] in the US District Court for the District of New Hampshire [official website]. A judge for the US District Court for the Northern District of Florida [official website] struck down the law in January, while in October, a judge in Michigan upheld the law [JURIST report]. US Courts of Appeal for the Third, Sixth and Fourth circuits are all hearing oral arguments in appeals of lower court rulings, while appeals are pending in the DC circuit as well as the Eighth and Ninth circuits.




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Afghan Guantanamo detainee, suspected terrorist dies in apparent suicide
Zach Zagger on May 19, 2011 8:55 AM ET

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[JURIST] An Afghan Guantanamo Bay [JURIST news archive] detainee believed to be an al Qaeda leader, was found dead in his cell in what appears to be a suicide [press release], the US Southern Command [official website] announced Wednesday. Guards found the 37-year-old Inayatullah not breathing and unresponsive in his cell. They immediately began rescue treatments and summoned emergency medical personnel, but they were unable to revive him. The remains are being treated in a culturally respectful way, but an autopsy is planned. The Navy is not immediately disclosing [AP report] details of the death or in which section of Guantanamo Inayatullah was being held. The death is still being investigated by the Naval Criminal Investigative Service. Inayatullah was transferred to Guantanamo [JURIST report] in 2007. The Department of Defense (DOD) said that he admitted to being the head of al Qaeda operations in Zahedan, Iran, and to orchestrating al Qaeda terrorist attacks.

Numerous deaths and apparent suicides at Guantanamo have fueled critics arguing for the shut down of the controversial detention facility. In February, the Center for Constitutional Rights said the death of Guantanamo detainee Awal Gul, from a heart attack, highlighted the problems [JURIST report] with the facility. Gul had been detained at Guantanamo since October 2002. In January, Human Rights Watch criticized President Barack Obama [JURIST report] for failing to shut down the facility as he promised during the 2008 presidential campaign. In May 2008, detainee Mohammad al-Qahtani [JURIST news archive], a Saudi Arabian citizen known as the "20th hijacker" for his alleged role in 9/11, attempted suicide after he was reportedly upset about the charges the DOD brought against him. In June 2006, three detainees died [JURIST report] in apparent suicides. In 2005, American lawyer Joshua Colangelo-Bryan [professional profile] representing six Bahraini men who were being held without charges, said he witnessed an attempted suicide, which he argued was a sign of the desperation of the detainees.




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US Army charges sixth soldier in Afghanistan civilian deaths
Erin Bock on May 19, 2011 8:23 AM ET

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[JURIST] US Army prosecutors charged a sixth soldier on Tuesday for his involvement in a murder plot that led to the deaths of three Afghan civilians. Staff Sgt. David Bram of Joint Base Lewis-McChord [official website] is charged [Reuters report] with solicitation to commit premeditated murder, failure to report crimes including murder, planting evidence near the body of an Afghan national, unlawfully engaging in murder scenario conversations with subordinates and aggravated assault with a dangerous weapon. Bram is the sixth soldier from the 5th Stryker Brigade to be charged in connection with the three Afghan deaths, which took place between January and May of last year in Afghanistan's Kandahar province. A military investigation revealed that soldiers from the brigade had been plotting since 2009 to kill unarmed Afghans and stage them to look like casualties of combat. Another soldier, Specialist Jeremy Morlock [JURIST news archive] pleaded guilty [JURIST report] in March to three counts of murder as well as single counts of assault, conspiracy, obstructing justice and illegal drug use in exchange for a maximum sentence of 24 years in prison. Morlock described Bram's involvement in his plea agreement [AP report], claiming that Bram overhead other soldiers planning civilian deaths and told Morlock that it was clear to go ahead with one of the killings in January 2010. Bram faces up to 21 years in prison if convicted of all charges against him.

This does not mark the first time Bram will face charges before a military tribunal for misconduct. Bram was court-martialed in November [JURIST report] for charges unrelated to the murders. He was accused of severely beating an Army private in his unit to keep the soldier from informing superiors about alleged drug abuse within the unit. The charges included conspiracy to commit assault and battery, unlawfully striking another soldier, violating a lawful order, dereliction of duty, cruelty, maltreatment and endeavoring to impede an investigation. The probe into 12 members of the 5th Stryker Brigade regarding the civilian deaths began in May 2010 [JURIST report]. Staff Sgt. Robert Stevens, another member of the brigade, pleaded guilty in December [JURIST report] to shooting two unarmed Afghan farmers following a plea agreement that will allow him to remain in the military after serving a nine month sentence and testifying against other soldiers accused of terrorizing civilians.




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