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Legal news from Saturday, January 12, 2013




Supreme Court to rule on right to remain silent, 5 other cases
Julia Zebley on January 12, 2013 4:44 PM ET

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[JURIST] The US Supreme Court [official website] granted certiorari in six new cases [order list, PDF] on Friday. In Salinas v. Texas [cert. petition, PDF; docket] the court will consider the boundaries of the Fifth Amendment [text] right to remain silent prior to arrest. Genovevo Salinas was suspected of being involved in a murder. He consented to a search of his home, where police found a shotgun, and consented to questioning at the police station, but he was not arrested or given Miranda warnings [backgrounder]. An officer asked, "if the shotgun [his father had given them] would match the shells recovered at the scene of the murder." Salinas looked down and refused to answer the question. The state then offered the refusal to answer as a key piece of evidence against Salinas, which he contends was a violation of his right against self-incrimination. The Court of Criminal Appeals of Texas upheld [opinion text] the conviction.

In Agency for International Development v. Alliance for Open Society International [cert. petition, PDF; docket] the court will consider the First Amendment [text] implications of the US Leadership Against HIV/AIDS, Tuberculosis, and Malaria Act of 2003 [22 USC § 7601 text], which bars funding to HIV/AIDS organizations that do not actively denounce prostitution [JURIST news archive]. The US Court of Appeals for the Second Circuit struck down those provisions [JURIST report], ruling that this unconstitutionally requires potential fund recipients to "espouse the government's views." Justice Elena Kagan has recused herself from hearing this case.

In US v. Kebodeaux [cert. petition; docket] the court will review whether the federal government can compel a convicted sex offender to register with the Sex Offender Registration and Notification Act of 2006 (SORNA) [text] if they have completed their sentence before SORNA [JURIST news archive] was enacted. The court has ruled on SORNA several times, including that it does not apply retroactively [JURIST report] without guidance that the rule does apply to those offenders. The government is arguing that "Reynolds addressed the narrow question of when and how SORNA's particular requirements become effective as to persons who committed their offense prior to its enactment. It does not address Congress' power to prescribe registration requirements for those offenders." The US Court of Appeals for the Fifth Circuit ruled [opinion text] that this provision violated Article I [text] of the Constitution.

In Sekhar v. US [docket] the court will consider if blackmailing an attorney who is also employed by the government is a violation of federal extortion law [18 USC § 875(d)], including the Hobbs Act [18 USC § 1951 (a)]. Giridhar Sekhar allegedly threatened to blackmail [Times Union report] the attorney of New York Comptroller Thomas DiNapoli to gain a government contract. The US Court of Appeals for the Second Circuit declared [opinion text] the attorney's "recommendation" as intangible property of the state of New York, and thus under the jurisdiction of federal extortion law.

In Hillman v. Maretta [cert. petition, PDF; docket] the court will consider if the Federal Employees Group Life Insurance Act of 1954 (FEGLIA) [text] preempts a state domestic relations equitable remedy which creates a cause of action against the recipient of Federal Employees' Group Life Insurance (FEGLI) proceeds after they have been distributed. The Virginia Supreme Court ruled [opinion text] that "[b]ecause Congress intended for FEGLI benefits to be paid and to belong to a designated beneficiary, we conclude that FEGLIA preempts" the Virginia Code [§ 20-111.1(D) text] in question."

Finally, the court granted another question on federal preemption in American Trucking Associations, Inc. v. City of Los Angeles [cert. petition, PDF; docket]. The court will consider 49 USC § 14501(c)(1) [text], which provides that "a State [or] political subdivision ... may not enact or enforce a law, regulation, or other provision having the force and effect of law related to a price, route, or service of any motor carrier ... with respect to the transportation of property" and contains an unexpressed "market participant" exception. The court will look at if this exemption permits a municipal governmental entity to take action that conflicts with the express preemption clause, if it occurs in a market in which the municipal entity does not participate, and is unconnected with any interest in the efficient procurement of services. The court will also look at if a required concession agreement setting out various conditions a motor carrier must meet to serve a particular port imposes any requirements that are "related to a price, route, or service of any motor carrier" for the purposes of preemption under Section 14501(c)(1). Finally, the court will determine whether permitting a municipal governmental entity to bar federally licensed motor carriers from access to a port operates as a partial suspension of the motor carriers' federal registration is in violation of Castle v. Hayes Freight Lines Inc. [opinion text].




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Greece parliament approves new tax legislation
Julie Deisher on January 12, 2013 2:32 PM ET

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[JURIST] Greece's Hellenic Parliament [official website] approved new tax legislation on Saturday so that the country can pay back loans so that it can continue receiving financial aid. The new legislation would bring the new top-tier tax level to 42 percent [Al Jazeera report] for individuals earning more than $56,000 a year, a drastic change from the previous top rate, which was 45 percent on incomes over $132,000. Greece's parliament seeks to boost state revenues by $3 billion through simplifying tax scales, reforming family benefits, increasing taxation on deposit interest and expanding the tax base to include groups such as low-earning farmers. Since Greece's economic crisis [BBC backgrounder] in 2010 it has been kept solvent by rescue loans from the European Union (EU) [official website] and the International Monetary Fund (IMF) [official website]. In exchange for the bailouts, Greece has implemented harsh austerity measures such as the new tax legislation to reduce its debt and budget deficit.

Several EU member states face financial instability which may have detrimental effects on other member states. Last June, Ireland voters approved [JURIST report] the Treaty on Stability, Coordination and Governance [text, PDF] aimed at improving fiscal discipline and promoting greater financial information disclosure between EU member states because of its current financial situation. The treaty was signed [JURIST report] by leaders from 25 EU member states in March. Only two countries, the UK and the Czech Republic, did not sign the measure. A year after the financial crisis of 2008, a European Council [official website] decided to create [JURIST report] a new European financial supervisory and monitoring system which seeks to balance the need of coordinating efforts on financial supervision, particularly in times of crisis, with the autonomy of each member nation over their own financial stability.




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HRW: Venezuela should end censorship, media intimidation
Julie Deisher on January 12, 2013 1:49 PM ET

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[JURIST] Human Rights Watch (HRW) [advocacy website] on Saturday called on the Venezuela government to end its censorship and intimidation of media [press release] that challenge official reports regarding President Hugo Chavez [BBC profile; JURIST news archive]. Chavez supporters are trying to keep details about his condition and treatment secret, with government agents going so far as to confiscate the computers of a blogger suspected of authoring tweets questioning official information provided about Chavez’s health. Although Chavez was unable to take office on January 10 because of his cancer, Venezuelan officials state that the country will not be holding a new election [JURIST report], despite a constitutional mandate that the President be sworn in on January 10. In a unanimous decision [BBC report], the Supreme Tribunal of Justice [official website, in Spanish] ruled last Wednesday that the postponement of Chavez's inauguration for a new term in office is legal.

Chavez has been a controversial figure in the region. In July, Chavez announced [JURIST report] that the country would withdraw from the Inter-American Court of Human Rights (IACHR) [official website, in Spanish]. In a statement during a military ceremony, Chavez announced the withdrawal and criticized the regional court, saying it is not fit to be called a human rights court. The decision came just after the IACHR concluded that the prison conditions of a man convicted in multiple bombings were a violation of his human rights. In 2011, Chavez criticized the IACHR [JURIST report] for ruling in favor of presidential hopeful Leopoldo Lopez, allowing him to run for office despite a separate court ruling barring him from the election. In October 2011, the Supreme Court of Venezuela ruled [JURIST report] that presidential hopeful Leopoldo Lopez remained banned from running in next year's elections. Lopez, an opposition leader, was considered to be a threat to Chavez. As a result of corruption allegations, he was banned from public office through 2014 by the country's comptroller general.




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Mali interim president declares state of emergency
Cynthia Miley on January 12, 2013 11:53 AM ET

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[JURIST] Mali [CIA backgrounder; JURIST news archive] interim president Dioncounda Traore [BBC profile], while under pressure from Mali's military, declared a state of emergency on Friday after Islamist rebels on Thursday captured the town of Konna. Traore called for [CNN report] Mali to engage in a general mobilization to defend against the rebel's advance. France's President Francois Hollande issued a statement saying that France would aid Mali [text, in French]. Hollande said France would not watch the rebels push south [Reuters report] toward the capital, Bamako, and assisted the government of Mali by providing air strikes against the rebels. After France's intervention and the assistance of troops from Senegal and Nigeria, the government of Mali was able to retake Konna. Peace talks between the government and some of the Islamist rebel groups were scheduled to occur in Burkina Faso on Thursday but have been postponed until January 21 because of the Konna conflict.

The crisis in Mali has drawn a great deal of international scorn and scrutiny. The prime minister of Mali, Cheick Modibo Diarra, was forced to resign [JURIST report] in December on state television after junta soldiers arrested him for attempting to leave the country in light of the ongoing humanitarian crisis threatening the nation. In September Human Rights Watch [advocacy website] reported [JURIST report] that three armed Islamist groups in northern Mali are abusing the local population and recruiting child soldiers. Earlier that month, UN High Commissioner for Human Rights Navi Pillay [official profile] condemned [JURIST report] human rights violations in Mali and called for international action to address the problems. Pillay noted that two militant Islamic groups are recruiting child soldiers, committing cruel punishments, violating basic human rights, committing sexual violence against women, and executing individuals. In August, officials from the International Criminal Court (ICC) [official website] were in Mali investigating [JURIST report] whether the same two Islamic groups had committed war crimes in Mali.




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US regulators expected to issue cease-and-desist order to JPMorgan
Cynthia Miley on January 12, 2013 11:34 AM ET

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[JURIST] The Office of the Comptroller of the Currency (OCC) and the Federal Reserve [official websites] are expected next week to issue a cease-and-desist order to JPMorgan Chase & Co. [official website] to improve its systems and procedures for monitoring transactions and risk. While It is not yet expected that the bank will be fined [Reuters report], the Treasury Department's anti money-laundering unit, the Financial Crimes Enforcement Network (FinCEN) [official wesbites], may undertake a separate action against JPMorgan. This inquiry into JPMorgan began several months ago. Regulators must issue cease-and-desist orders after they have instructed a bank to fully comply with the Bank Secrecy Act [text] and the bank has failed to do so. The order can require a bank to review its past transactions and determine if it missed finding any suspicious activity that it should have reported to a regulatory agency, and with a high enough level of under reporting, regulators can issue civil fines. Additionally, although no action is expected from U.S. prosecutors yet, the OCC usually informs the US Department of Justice (DOJ) [official website] of inquiries like JPMorgan's.

JPMorgan has faced numerous lawsuits regarding its business practices. Earlier this month, the National Credit Union Administration (NCUA) [official website] filed [JURIST report] a lawsuit against JPMorgan for the sale of $2.2 billion of faulty residential mortgage-backed securities (RMBS) to credit unions. In December the NCUA brought a suit [JURIST report] against JPMorgan for RMBS products sold by Bear Stearns, which was also subsequently purchased by JPMorgan. In July JPMorgan agreed to a $100 million settlement [JURIST report] in a suit brought by customers claiming unreasonable fees and a three percent increase on monthly minimum payments by credit card holders. In early June the firm was granted [JURIST report] permission to pay $44.6 million to resolve allegations of fraudulent bidding practices for state and local government investment securities at taxpayers' expense. The settlement followed JPMorgan's agreement [JURIST report] last July with the DOJ to pay $228 million to federal and state authorities. One month earlier JPMorgan again settled [JURIST report] at $153.6 million for fraud charges brought by the Securities and Exchange Commission (SEC) [official website] for misleading investors during the housing crises.




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