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Qantas plead guilty to price-fixing
Business Law Info | 2007/11/28 13:06
Australian airline Qantas Airways has agreed to plead guilty to fixing prices in international air cargo shipments and pay a 61-million-dollar fine, the US Justice Department said Tuesday.

Between June 2000 and February 2006, Qantas engaged in a conspiracy to eliminate competition by fixing the rates for shipments of cargo to and from the US and elsewhere, according to the charges filed Tuesday against the carrier, the Justice Department said in a statement.

"The shipment of consumer products by air transportation is critical to our global economy. Our investigation into this important industry will continue, and we will aggressively pursue those who engage in criminal conduct that harms American consumers," said Thomas Barnett, assistant attorney general in charge of the department's antitrust division.

During the time period covered by the felony charge, Qantas was the largest carrier of cargo between the United States and Australia and earned more than 600 million dollars from its cargo flights to and from the US, the department noted.

The department said that Qantas has agreed to cooperate with its ongoing investigation under the plea agreement, which is subject to court approval.

In August, British Airways and Korean Air Lines pleaded guilty to illegally fixing prices on international passenger and cargo flights and were sentenced to pay separate 300-million-dollar fines.



Court to Release Audio in Guantanmo Case
Court Feed News | 2007/11/28 13:00
The Supreme Court will hear arguments next week about the rights of prisoners who have been detained at Guantanamo Bay, Cuba, and will immediately release audio tapes of the proceeding. The court made available same-day releases of audio tapes on two occasions last term, for cases involving abortion and the use of race in public school assignments. The quick release of audio tapes in major cases dates to 2000, when justices heard Florida ballot recount appeals that determined the outcome of the presidential election.

Television cameras are barred from the court and reporters are not allowed to use tape recorders there. But arguments are taped by the court and usually are released at the end of the term.

The cases to be argued next Wednesday deal with whether the Guantanamo detainees can contest their confinement in U.S. civilian courts.



Larry Ellison wins court battle of the billionaires
Legal World News | 2007/11/28 11:59

The Supreme Court of the State of New York yesterday ruled against Alinghi, the Swiss defenders of the America’s Cup, upholding the legal challenge of BMW Oracle Racing (BOR) and making the American team the official challengers for the trophy.

Justice Herman Cahn’s 18-page judgment in the case of the Golden Gate Yacht Club v Société Nautique de Genève (the teams’ representative yacht clubs) was damning of Alinghi and agreed with BOR’s central contention that Club Nautico Español de Vela’s (CNEV) status as official challenger — which allowed it to negotiate the much disputed parameters of the next America’s Cup with Alinghi — is illegal.

BOR argued that the Spanish syndicate was an invalid challenger since it has never held a regatta as required in the regulations. Yesterday’s ruling means that BOR have the right to a head-to-head, best-of-three race against Alinghi, with ten months’ notice, in a type of yacht and a location of their choice. That is the scenario laid out in the Deed of Gift, the 19th-century document in which the rules of the America’s Cup are enshrined.

The simplest solution for both teams, and the seven other challengers (at least two others are also waiting in the wings), will be for Alinghi and BOR to agree to the original schedule of the 2009 America’s Cup in Valencia, but with a new protocol that hands some power back to the challengers. Six dark months after what was arguably the best America’s Cup staged, there is finally the opportunity for peace.



Law Firms Face New Rules on Retirement
Headline News | 2007/11/28 10:05

With hordes of attorneys poised to assume senior status, achieving a consensus among partners to ditch mandatory retirement policies is just the first step -- and perhaps the easiest -- in switching to what many say is a fairer system.

Kirkpatrick & Lockhart Preston Gates Ellis recently did it, Pillsbury Winthrop Shaw Pittman made the change, and others are expected to follow. And while these firms report that reaching the decision to abandon age-based retirement was relatively painless, implementing a merit-based system for evaluating older attorneys will not be a simple feat for most.

"It takes time for people to internalize what this means," said Deborah Johnson, a member of Pillsbury Winthrop Shaw Pittman's executive committee and the firm's chief human resources officer.

Pillsbury Winthrop in April decided to get rid of the provision in its partnership agreement that, in general, created a rebuttable presumption that when lawyers turned 65 it was time for them to give up full equity status.

In light of the firm's decision, Johnson has worked with other firm leaders to devise a system that provides flexibility but holds attorneys accountable for their contributions. She estimates that the change affects about 10 percent of the firm's partners.

The full results of the decision at the 755-attorney firm will take at least a year to realize, Johnson said. In the meantime, the firm is operating under its newly implemented program that includes refined partner evaluations, stated goals from senior partners, revised financial planning services and an increased role for career consultants in working with "seniors." The firm defines seniors not by their age but by year of service. It considers as seniors those who have practiced for 25 years or more.



New court date set for Vick over dogfighting
Court Feed News | 2007/11/28 09:59
Disgraced football star Michael Vick will stand trial on April 2 on state charges of involvement in dogfighting, a Virginia state court ruled on Tuesday.

The trial of the suspended Atlanta Falcons quarterback in a state court is separate from federal charges of dogfighting to which Vick pleaded guilty in August.

Vick is due to be sentenced on those charges on December 10 and faces up to five years in jail, though prosecutors have requested a sentence of between 12 and 18 months.

In an unusual move, the 27-year-old turned himself in to U.S. marshals last week to begin serving the federal sentence early.

The two state charges carry sentences of five years each, which would be added to any sentence on the federal charges, according to media reports.

Vick's indictment in July shocked U.S. sports fans because it was a spectacular fall from grace and because dogfighting, in which people bet on pit bulls and other aggressive dogs, is widely reviled for its cruelty.

Vick initially pleaded innocent but then admitted his guilt after reaching an agreement with prosecutors.

The brief hearing at Surry County Circuit Court, Virginia, also set court dates in March and April for three other co-defendants, according to a member of the prosecutor's team.



High-Profile Lawyer Sentenced for Taxes
Headline News | 2007/11/27 16:03
A civil rights lawyer known for his high-profile cases against police and President Bush was sentenced Tuesday to three years in prison for federal tax evasion, bankruptcy fraud and money laundering.

Stephen Yagman, 63, was convicted of trying to avoid paying more than $100,000 in federal income taxes while living what prosecutors said was a lavish lifestyle that included shopping sprees and Aspen vacations.

Yagman told U.S. District Judge Stephen Wilson that he was "a target" for prosecutors because of his legal campaigns against police.

In a statement spanning two days at the end of his sentencing hearing, Yagman argued that his problems stemmed from careless inattention.

"I am kind of a savant, focused on civil rights," Yagman said Monday. "I got sloppy."

Wilson said he had known Yagman professionally for 20 years and called him brave for taking on the establishment — but he also said Yagman committed his crimes knowingly. He ordered Yagman to surrender Jan. 15, serve two years of supervised release after his prison term and pay the costs of his prosecution.

Prosecutors had asked for a nine-year minimum prison sentence.

"The fact that the defendant is a lawyer is an aggravating factor," federal prosecutor Alka Sagar said Monday. "He of all people knew the implications of his conduct."

Defense attorney Barry Tarlow said he would appeal Yagman's conviction.

Yagman led high-profile legal campaigns against police, and over several years filed dozens of lawsuits claiming that Los Angeles police abused and framed suspects and made false arrests.

He also sued President Bush and other officials, alleging violations of constitutional rights of a detainee at the U.S. prison camp in Guantanamo Bay, Cuba, and sought class-action status on behalf of all detainees.

Yagman filed for bankruptcy in 1999, but prosecutors said he failed to disclose that he lived in a 2,800-square-foot home near the beach. He had, however, made mortgage and property tax payments on the property and claimed the homeowner's mortgage-interest deduction on his tax returns.

The government argued that Yagman paid only a fraction of his income taxes from 1994 to 1997, eventually owing the IRS more than $158,000 in back taxes, interest and penalties. Prosecutors also alleged he failed to pay $30,000 in payroll taxes that his law firm owed during that period and claimed he hid about $617,000 he received from his mother and elderly relatives from the IRS.

Yagman also tried to hide $70,000 in assets to avoid paying out a civil judgment awarded against him and his firm in 1996, prosecutors said.



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