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US Supreme Court to rule on animal cruelty law
Topics in Legal News |
2009/04/21 09:32
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The U.S. Supreme Court said on Monday that it would decide whether a federal law that makes it a crime to sell videos of animals being tortured or killed violates constitutional free-speech rights.
The high court agreed to hear a U.S. Justice Department appeal defending the 1999 animal cruelty law after it was struck down for infringing free-speech protections.
A U.S. appeals court declared the law unconstitutional and overturned the conviction of a Virginia man, Robert Stevens, who sold three videos of pit bulls fighting each other and attacking hogs and wild boars. His conviction in 2005 was the first in the country under the law. Stevens had been sentenced to 37 months in prison. By a 10-3 vote, the appeals court rejected the government's argument that, for the first time in more than 25 years, there was a new category of speech not covered by constitutional free-speech protections. Usually, videos and other depictions are protected as free speech, even if they show abhorrent conduct. |
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Court to weigh state's duty to English learners
Court News |
2009/04/20 09:31
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The Supreme Court on Monday takes up an Arizona case that could limit a federal court's power to tell states to spend more money to educate students who aren't proficient in English.
Arizona state legislators and the state superintendent of public instruction want to be freed from federal court oversight of the state's programs for English learners. They've been ordered by a lower court judge to spend potentially hundreds of millions of dollars to comply with rulings in a 17-year-old case.
Parents of students attending southern Arizona's Nogales Unified School District sued the state in 1992, contending programs for English-language learners in Nogales were deficient and received inadequate funding from the state. In 2000, a federal judge found that the state had violated the Equal Educational Opportunities Act's requirements for appropriate instruction for English-language learners. He ordered state legislators to create a plan to provide sufficient funds and placed the state's programs for non-English speaking students under court oversight. Since then, the two sides have fought over what constitutes compliance with the order. Arizona has more than doubled the amount that schools receive per non-English speaking student and taken several other steps prescribed by the No Child Left Behind Act, a broader education accountability law passed by Congress in 2002. Plaintiffs say that's not enough to comply with federal law and a judge agreed. But the state appealed, and now the high court will answer the question. |
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Davis Polk Recruits Ex-SEC Aide
Court News |
2009/04/13 09:30
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Law firm Davis Polk & Wardwell recruited the Securities and Exchange Commission's former enforcement chief and another former high-level government lawyer to join its white-collar defense group, part of an effort to expand its Washington practice.
Linda Chatman Thomsen, who left the SEC earlier this year, and Raul Yanes, former staff secretary to President George W. Bush, are joining the law firm as partners. Both had worked at Davis Polk in New York before joining the government. The duo will be the first litigators in the 11-person Washington office in years. Former SEC Commissioner Annette Nazareth and Robert Colby, a former deputy director of the SEC's trading and markets division, also recently joined the firm's Washington office to focus on financial regulatory issues. Davis Polk clients, including large financial institutions, are closely entangled with the government as it has pumped billions of dollars into financial rescue plans. Congress is studying new regulation of financial markets. |
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Man jailed for dodging child support for 14 kids
Headline Legal News |
2009/04/12 09:31
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Authorities in Michigan say a man fathered 14 children with 13 different women and owes more than $530,000 in unpaid child support.
The Flint Journal reports 42-year-old Thomas Frazier was jailed Thursday. Court records say he hasn't made a support payment in six years.
The newspaper says the unemployed man could be held for 90 days if he doesn't pay $27,900. Frazier says he thinks he fathered only three of the children and that it's unrealistic for authorities to expect him to pay child support that was $3,000 a month at one point. Frazier remains held at the Genesee County Jail. It wasn't immediately clear if he had a lawyer who could speak for him. |
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Obama Moves to Block AIG Bonuses
Politics |
2009/03/19 11:19
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A tough-talking President Barack Obama moved yesterday to block the $165 million in bonuses for American International Group executives that prompted a new wave of outrage at corporate America and taxpayer bailouts.
Despite the aggressive approach, it's unclear whether he can get the payments back. But the White House said it would modify the terms of AIG's pending $30-billion bailout installment to at least recoup the $165 million the bonuses represent. That wouldn't rescind the bonuses, just require AIG to account for them differently.
Separately, state Attorney General Andrew Cuomo said he will subpoena the names of AIG officials involved and copies of their employment contracts to determine whether the bonuses are legal, given the firm's weak finances.
Manhattan-based AIG was saved from insolvency by $170 billion in taxpayer-backed loans - and reported a $61.7-billion loss in the fourth quarter last year. It revealed on the weekend that it used more than $90 billion in its federal aid to pay out banks, some of which had received their own U.S. government bailouts.
Yesterday, Obama gave voice to rising disgust since Saturday, when the bonuses became public. Cuomo said the bonuses were paid to members of the specific AIG unit at the root of the firm's near-collapse from bad, mortgage-backed debt.
"How do they justify this outrage to the taxpayers who are keeping the company afloat?" Obama asked. He asked Treasury Secretary Timothy Geithner "to use that leverage and pursue every legal avenue to block these bonuses and make the American taxpayers whole."
AIG has said it had no choice but to pay the bonuses under agreements signed last year before it got into difficulties and sought a bailout. Spokeswoman Christina Pretto said: "We are in contact with the attorney general and will, of course, respond to his request."
Obama didn't specify a possible legal strategy for blocking the payments. However, Cuomo said he was investigating whether the employment contracts cited by AIG were legally flawed - technically "fraudulent" - under state debtors and creditors law. They would be, he said, if AIG management knew when it signed them that weak finances would render them unable to pay the bonuses without outside help. Contracts can be renegotiated, he said, adding, "You could argue that if the taxpayers didn't bail out AIG those contracts would be worth the paper they're printed on."
Experts in corporate law said the Obama administration has an important advantage in the controversy. In return for the bailout, the government now owns 80 percent of the company. "They're the big dog in the room now and can put some leverage on AIG to straighten this out," said attorney Jim Ervin, a partner at Benesch, Friedlander, Coplan & Aronoff Llp in Ohio.
Attorney Ross Albert, a partner at Morris Manning & Martin Llp of Atlanta, said it's difficult to be specific about the government's options without seeing the contracts in question, but added, "If the bonus is based on achieving some bench mark and it turns out the bench marks achieved were through accounting hocus-pocus, not reality, they wouldn't even have a legal right to this bonus," Albert said.
But Stephen Breitstone, a tax specialist in the Mineola law firm Meltzer, Lippe, Goldstein & Breitstone Llp, said the law Cuomo cited is intended for cases where companies facing bankruptcy are seeking to keep money away from creditors by giving it to employees or others. "If he can prove that's what this is, that's a pretty bold accusation," Breitstone said.
Labor and employment attorney Carmelo Grimaldi, who works with Breitstone, said, "I think the government is going to have a difficult situation given the fact that these contracts were made. If they provide for bonuses, AIG faces a breach of contract if they don't pay these bonuses."
This story was supplemented with Bloomberg News and Associated Press reports.
Challenges to AIG's actions
President Barack Obama wants to block bonuses paid by AIG. Here are two weapons in his arsenal:
NEW TERMS. Modifying terms of AIG's pending bailout installment to at least recoup the equivalent in bonuses.
MAJORITY OWNERSHIP. The government owns 80 percent of AIG - an important advantage because it can force the company to change practices.
State Attorney General Andrew Cuomo has begun issuing subpoenas for AIG information.
KEY PROBE. He is investigating whether AIG employment contracts were "fraudulent" by promising bonuses executives knew the company could not afford. |
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