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Court rules against Patriot Act challenger
Court Feed News | 2009/12/11 13:10

A federal appeals court overturned a lower court Thursday and ruled against an Oregon lawyer once wrongly suspected in a terrorist bombing.

Brandon Mayfield was arrested in 2004 and held for two weeks after his Portland home and office were searched and bugged. The FBI relied on a fingerprint from the Madrid train bombings that killed 191 people.

It turned out the fingerprint didn't belong to Mayfield, who got an apology and $2 million from the federal government.

Mayfield wants to overturn two parts of the USA Patriot Act passed after 9/11 that ensnared him.

A district judge sided with him in 2007. But the 9th U.S. Circuit Court of Appeals ruled Thursday that Mayfield can't challenge the act because the settlement limited his legal options.



Appeals court puts Mattel's Bratz takeover on hold
Lawyer Blog News | 2009/12/10 19:02

The pouty-lipped Bratz dolls can strut their stuff a little longer.

A federal appeals court panel in Pasadena on Wednesday suspended an order that MGA Entertainment stop selling Bratz products this year, recall remaining toys and give ownership of the brand to rival Mattel Inc.

Mattel won $100 million last year in a lawsuit that claimed copyright infringement and breach of contract because the dolls' designer was under contract to Mattel when he developed the Bratz concept.

MGA was ordered to transition its Bratz line to Mattel by 2010, but the U.S. 9th Circuit appellate panel stayed the order until it can rule on MGA's appeal.

MGA Chief Executive Isaac Larian says the order is a victory for fair competition.

Mattel says it can't comment until the appeals process is over.



Court OKs Pilgrim's Pride reorganization plan
Court Feed News | 2009/12/10 16:01

A court approved chicken producer Pilgrim's Pride Corp. plan for reorganization on Thursday, and the company said it expects to emerge from bankruptcy court protection this month.

Pilgrim's Pride filed for Chapter 11 protection last year facing high debt related to its buyout of rival Gold Kist Inc. in 2007 and rising feed costs that left much of the industry in a slump.

The U.S. Bankruptcy Court in the Northern District of Texas approved the reorganization plan Thursday, the company, based in Pittsburg, Texas, said in a news release.

The plan includes selling a majority stake worth $800 million to Brazilian beef giant JBS. The transaction includes paying off Pilgrim's Pride's creditors in full and distributing new shares to current holders.

The deal, which was announced in September, is unusual for a company in a bankruptcy case; more typically, creditors aren't repaid. The entire deal is valued at $2.8 billion.

Along with a deal to buy Bertin SA, one of Latin America's largest producers and exporters of milk products, beef and leather, buying Pilgrim's Pride would make JBS the world's biggest meat producer. The purchase of Gold Kist, worth more than $1 billion, had made Pilgrim's Pride the largest chicken producer in the U.S., with about 23 percent of the market before it filed for bankruptcy protection last year.



Unions pressure Democrats on health insurance tax
Lawyer Blog News | 2009/12/10 09:00

Unions leaders, among the most passionate backers of President Barack Obama's health care overhaul, pressed Democratic senators Thursday to drop a tax on high-value insurance plans to pay for remaking the nation's system.

As the Senate entered its 11th straight day of debate on the sweeping legislation, members of several labor unions denounced the proposed tax on so-called "Cadillac plans," arguing it wouldn't just hit CEOs but also middle-class Americans who passed on salary increases to negotiate better health benefits.

"I support health care reform but I can't afford this tax," Valerie Castle Stanley, an AT&T call center worker and member of the Communications Workers of America, said at a news conference outside the Capitol. "For families like mine that are on a budget, the results will be devastating."

At issue is a proposed 40 percent excise tax on insurance companies, keyed to premiums paid on health care plans costing more than $8,500 annually for individuals and $23,000 for families. The tax would raise some $150 billion over 10 years to help pay for the Democrats' nearly $1 trillion health care bill. The legislation, which appears to be edging closer to passage, would revamp the U.S. health care system with new requirements on individuals and employers designed to extend health coverage to more than 30 million uninsured Americans.



Burglars hit offices of Blagojevich's legal team
Legal Career News | 2009/12/09 20:52

Burglars broke into the offices occupied by two members of former Gov. Rod Blagojevich's legal defense team overnight and stole eight computers and a safe, police said Friday.

The break-in occurred at the South Side offices of veteran Chicago criminal defense lawyer Sam Adam and his son, Samuel E. Adam, police said. They are two of the three leading members of the team defending Blagojevich on charges that he schemed to sell or trade President Barack Obama's former U.S. Senate seat.

Chief of detectives Steve Peterson told a news conference that detectives don't know whether anything related to Blagojevich's federal fraud case was contained on the computers. But he said they are interviewing the attorneys.

Even if the computers contained sensitive material related to the federal case against Blagojevich, the lawyers had all of its material in backup files on a master server elsewhere in the offices that was untouched by the burglars, according to an individual with knowledge of the legal defense team.

A number of discs with material related to the case were around the office but not taken, said that person who spoke only on condition of anonymity.



Court skeptical of federal anti-fraud law
Lawyer Blog News | 2009/12/09 20:51

The Supreme Court appeared inclined Tuesday to limit federal prosecutors' use of a fraud law that has helped win convictions of high-profile corporate executives and public officials, or throw out the law altogether.

The justices, hearing two challenges to the honest services fraud law, seemed to be in broad agreement that the law is vague and has been used to make a crime out of mistakes, minor transgressions and mere ethical violations.

Justice Stephen Breyer said he worries that the Obama administration's reading of the law makes criminals out of vast numbers of U.S. workers, including possibly employees who read The Daily Racing Form on the job.

"There are 150 million workers in the United States. I think 140 of them would flunk the test," Breyer said.

The vagueness of the honest services statute "is the working problem here," Justice Anthony Kennedy said.

Justice Antonin Scalia called the law "a mush of language" and pointed out that federal prosecutors have used it different ways in different prosecutions. If the Justice Department can't figure out what is embraced by this law, "I don't know how you expect the average citizen to," Scalia said.



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