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Industrial production drops more than expected
Business Law Info | 2009/04/15 14:31
Industrial production fell for the fifth straight month in March, the government said Wednesday, as companies cut output in order to clear stockpiles of goods.


But economists expect that trend to moderate soon, as businesses bring inventories in line with slower sales. That should allow production to decline at a slower pace in the current quarter.

Still, the drop in March was steeper than expected. The Federal Reserve said production at the nation's factories, mines and utilities dropped a seasonally adjusted 1.5 percent, matching February's decline and worse than the 1 percent decline analysts forecast.

Factories and mines are increasingly idle, as the total industrial capacity utilization rate fell to 69.3 percent from 70.3 percent, the lowest on records dating to 1967.

Industrial production fell at a 20 percent annual rate in the first quarter, the Fed said, the sharpest quarterly downturn of the current recession. The drop will contribute to another steep contraction in the overall economy in the January-March period that economists estimate will be in the 4 to 5 percent range. The nation's economy shrank 6.3 percent in the fourth quarter of last year.

Some analysts expect industrial production to fall at a rate of less than 10 percent in the current quarter, as the economy's contraction slows.



SG Kagan Won't Argue Before High Court Until Next Term
Headline News | 2009/04/15 12:34
Elena Kagan, the Obama administration's top Supreme Court lawyer, is passing up the chance to make her first high-court argument in a big case over minority voting rights.


Instead, Kagan, confirmed by the Senate last month as solicitor general, will wait until the fall to make her debut, Justice Department spokeswoman Beverley Lumpkin said Tuesday.

By the time Kagan took up her post, Lumpkin said, most of the cases the court will hear in April already had been assigned.

"I suppose she could have spent the last several weeks doing nothing but preparing, but that's not something she wanted to do. There's a lot to do getting up to speed in the office," Lumpkin said.

The solicitor general typically handles the top cases before the court. The challenge to a provision of the Voting Rights Act, which will be argued April 29, is perhaps this term's highest-profile case.

Kagan has a most impressive resume — former Harvard Law School dean, Clinton White House official and Supreme Court clerk — but she has little courtroom experience.



Ex-Qwest exec asks high court to delay prison term
Business Law Info | 2009/04/14 15:33
Former Qwest CEO Joseph Nacchio asked the Supreme Court on Monday to put off the start of his prison term for his conviction on insider-trading charges.


His lawyers filed an emergency appeal with Justice Stephen Breyer after the federal appeals court in Denver turned down Nachio's latest bid to stay out of prison while he asks the high court to review his conviction in 2007 involving the sale of $52 million worth of stock in Qwest Communications International Inc.

Nacchio has been ordered to report to a prison camp in Minersville, Pa., by noon Tuesday to start a six-year term.

He says he should be allowed to remain free pending the Supreme Court's consideration of his case because there is a reasonable chance the justices will agree to consider overturning the conviction.

Federal prosecutors have opposed Nacchio's request.

They have said Nacchio hasn't met the requirement of showing that his Supreme Court appeal would probably win him a new trial or acquittal.



Minn. court declares Franken leading vote-getter
Lawyer Blog News | 2009/04/14 15:32
A Minnesota court confirmed Monday that Democrat Al Franken won the most votes in his 2008 Senate race against Republican Norm Coleman, who immediately announced plans to appeal the decision.


Coleman has 10 days to appeal to the state Supreme Court. Once the petition is filed, it could further delay the seating of Minnesota's second senator for weeks.

"It's time that Minnesota like every other state have two" senators, a jovial Franken said outside his Minneapolis townhouse with his wife Franni at his side. "I would call on Senator Coleman to allow me to get to work for the people of Minnesota as soon as possible."

After a statewide recount and seven-week trial, Franken stands 312 votes ahead. He gained more votes from the election challenge than Coleman, the candidate who brought the legal action.

The state law under which Coleman sued required three judges to determine who got the most votes and is therefore entitled to an election certificate, which is now on hold pending an appeal.

"The overwhelming weight of the evidence indicates that the November 4, 2008, election was conducted fairly, impartially and accurately," the judges wrote. "There is no evidence of a systematic problem of disenfranchisement in the state's election system, including in its absentee-balloting procedures."



18-month sentence sought for SKorean blogger
Legal World News | 2009/04/13 10:59
Prosecutors demanded an 18-month sentence Monday for a popular South Korean blogger who is accused of spreading false financial information in a case that has ignited a debate about freedom of speech in cyberspace.


The 30-year-old blogger, a fierce critic of government economic policy, was arrested and indicted in January after he wrote that the government had banned major financial institutions and trade businesses from buying U.S. dollars.

Prosecutors have said the posting was not only inaccurate, but it had affected the foreign exchange market and undermined the nation's credibility.

But opposition parties and critics have claimed the arrest is aimed at silencing criticism of the government and restricts online freedom of speech.

Seoul District Court spokesman Kwon Tae-young said prosecutors demanded 18 months in prison for the blogger, identified as Park Dae-sung, and the court is scheduled to deliver a verdict on April 20.

The charge carries up to five years in prison or a fine of up to 50 million won ($38,000).

The blogger, known by his pen name "Minerva" after the Greek goddess of wisdom, had rocketed to fame after some of his predictions, including the collapse of U.S. investment bank Lehman Brothers, proved to be correct.



Man jailed for dodging child support for 14 kids
Criminal Law Updates | 2009/04/12 15:00
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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