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Law firm cancels political operative's sublease
Headline News | 2007/08/07 14:14

Republican political operative Jeff Roe will soon be looking for new digs.Lathrop & Gage, the law firm that houses his consulting firm, Axiom Strategies, is terminating his sublease.Lathrop said it was doing so because it determined that it no longer needed Roe's second-floor space.The move, coincidental or not, comes as politicos allied with Roe, including Missouri Gov. Matt Blunt, heat up their attacks on "activist judges." That may not sit well with Lathrop, which boasts several former bar presidents and other legal eminences among its members.

Earlier this year, Roe told lawyers at a Kansas City Metropolitan Bar Association conference that "there will be negative campaigns against judges in 2008. That is reality."

Lathrop simply said that it no longer needed the space it leased to Roe and that it had given its landlord and Roe notice of its intent to terminate the lease.

Roe last week said his lease runs until March or April and he'd been dealing directly with the building's owner, an out-of-town outfit. He said he originally signed a two-year lease.

Roe said he hopes to remain in the space by negotiating directly with the landlord but plans to remain there in any event until the sublease expires.

The space houses nine employees, according to Roe, who has his own 20- by 25-foot glassed-in corner office. He said he had two other offices in the area but declined to disclose their locations.

Blunt's sister, Amy Blunt, works in Lathrop's government relations department. Like other large and influential law firms, Lathrop boasts both heavyweight Democrats and Republicans on its roster, including Jack Craft (Republican) and Harold Fridkin (Democrat) in its Kansas City office.

KSU case is 'moot'

A constitutional challenge to the removal in 2004 of the adviser to Kansas State University's newspaper was ruled moot last week by a federal court.

Katie Lane, the former editor in chief of the Collegian, and Sarah Rice, its former managing editor, sued over the removal of Ron Johnson as the paper's adviser, supposedly because of the subpar quality of the newspaper's news coverage.

The move occurred after a controversy erupted on campus over the extent of minority news coverage in the newspaper and its failure to cover the Big XII Conference on Black Student Government held in Manhattan in 2004. Lane and Rice claimed that Johnson's removal was triggered by the controversy and chilled the exercise of their First Amendment rights.

The trial court dismissed the case, finding that the First Amendment claim failed because the decision to remove Johnson was based on the quality of the Collegian, not its content. On appeal, the 10th U.S. Circuit Court of Appeals vacated the trial court's decision, ruling that because Lane and Rice have since graduated, their claims were moot.

An exception to the mootness doctrine — where there's a reasonable expectation that the same complaining parties will be subjected to the same actions again — was found inapplicable.

"Because only KSU students serve as editors of the Collegian, there is no reasonable expectation that Lane and Rice will be subjected, post-graduation, to censorship by defendants in connection with this newspaper," the court stated.




Poll: Democrats favor Clinton over Obama
Law & Politics | 2007/08/07 13:05
U.S. Democrats significantly favor New York Senator Hillary Clinton over Illinois Senator Barack Obama for the party's presidential nomination in the wake of a dispute over the handling of foreign policy, according to a poll published Tuesday.

The USA TODAY/Gallup poll, taken Friday through Sunday, found that Clinton has widened her lead over Obama. Her support was at 48 percent, up 8 percentage points from three weeks ago, while Obama's support was down two percentage points at 26 percent.

The 22-point gap between the two is nearly double the margin found in the July 12-15 poll.

Among Democrats and independents who "lean" Democratic, former North Carolina senator John Edwards is at 12 percent.

Among Republicans, the race is stable: former New York mayor Rudy Giuliani at 33 percent, former Tennessee senator Fred Thompson at 21 percent, Arizona Sen. John McCain at 16 percent and former Massachusetts governor Mitt Romney at 8 percent.

The Democratic race is much closer in the states where opening contests will be held and campaigning is already fierce, the USA Today newspaper reported.

In the survey, Democrats and Democratic-leaning independents by overwhelming margins say Clinton would do a better job as president than Obama in handling terrorism, the Iraq war and relations with unfriendly nations.

If the nomination narrows down to two, Clinton was preferred over Obama by 59 percent to 36 percent.

Also in the poll, President George W. Bush's approval rating ticked up to 34 percent, better than his low of 29 percent in July. The approval rating for congressional Republicans was 29 percent and 37 percent for congressional Democrats -- both new lows in the eight years since the question was first asked.

The survey of 1,012 adults has an error margin of +/- 3 points for the full sample, and 5 points for the Republican and Democratic subsamples.



First BanCorp Ordered To Pay $74.25 Mln To Settle
Class Action News | 2007/08/06 16:28

First BanCorp Holding Co. announced that the United States District Court for the District of Puerto Rico has issued preliminary order on August 1, 2007, asking the company to pay $74.25 million to settle a class action lawsuit filed by shareholders. First BanCorp said that $61 million settlement amount has to be deposited in a settlement fund within fifteen calendar days of the issuance of the preliminary order. The remaining settlement amount of $13.25 million will be paid before December 31, 2007, the company added.

The company noted that this class action lawsuit settlement will have no impact on earnings and capital in 2007, as it has accrued $74.25 million in 2005 for the potential settlement of the class action lawsuit.



UC receives money from Enron class action lawsuit
Lawyer Blog News | 2007/08/06 15:30

As the lead plaintiff in the class action lawsuit against Enron executives, the University of California has obtained more than $7.2 billion from the executives, accountants, attorneys and financial institutions that organized the fraud. On July 27, officials announced a proposed allocation plan to distribute the money to defrauded Enron investors who submit valid claims. “This is the first step in returning funds to these investors,” said Dan Newman, spokesman for lead counsel Lerach Coughlin, the law firm representing the university and the class of Enron investors.

The proposed plan allocates money to investors who purchased Enron securities between Sept. 9, 1997 and Dec. 2, 2001. Roughly 1.5 million Enron stock and bond purchasers lost more than $40 billion during this period, Newman said.

Due to accounting fraud, Enron shareholders have lost tens of billions of dollars. The company filed for bankruptcy in 2001.

In 2002, the United States District Court chose the university as the lead plaintiff in the lawsuit due to both financial and legal factors, which included the amount of losses the plaintiff endured from Enron investments, and the plaintiff’s ability to coordinate litigation as a single investor, according to a press release from the university. As lead plaintiff, the university helps monitor and oversee the litigation of the case, Chris Patti, UC general counsel, said.

The university lost $144.9 million based on 2.2 million Enron shares purchased during the class period, according to the press release. This money was taken from employees’ pension and endowment funds, said Trey Davis, director of special projections for the UC.

“The money the UC will receive (from the allocation plan) will go back to these funds, so there will be no effect on students directly,” he said.

The university worked with outside counsel and experts to design the plan. But it has been a difficult process, Patti said, to ensure that all investors receive the money they deserve. The allocation needs to account for what type of Enron stocks and bonds investors purchased, when they purchased them and when they sold them.

“We want to make sure it’s as fair as possible, and (we are) therefore taking extra steps to ensure we do not miss anything,” Patti said.

The UC is asking for feedback on the proposed plan from an independent expert consultant and the public. Comments from the public can be submitted until Aug. 20 through a specially created Web site, Enronfraud.com.

After reviewing the public’s comments, university officials will request permission from Judge Melinda Harmon of the U.S. District Court for the Southern District of Texas, Houston Division, to ask for formal input about the plan from members of the Enron class.

Only after Judge Harmon approves the plan and any appeals are resolved will the money be distributed. It is difficult to predict when this will happen, Davis said, but it will not be before 2008.

Other plaintiffs have still not settled cases against Enron executives. A similar case has appealed to the U.S. Supreme Court, and its result will determine if the case against the remaining defendants will continue, Newman said.

“This is an ongoing process, but investors have received a lot of support,” Newman said.

Most attorney generals, academic experts and professional groups have filed friends-of-the-court briefs with the U.S. Supreme Court in support of investor protections, according to the university’s press release.



Jurors' doubts weigh heavily in Davis case
Headline News | 2007/08/06 13:32

Five days before Troy Anthony Davis' scheduled execution, Brenda Forrest got a call from her husband of eight years.

He had just heard a report on a Chicago radio station about a convicted cop killer from their hometown of Savannah. The report said serious questions had surfaced about whether the man was actually guilty of the 1989 murder.

"Oh my God," Forrest said, finally letting go of the secret she had kept. "I was on that jury. I've got to get involved."

The next day, Forrest called lawyers at the Georgia Resource Center, whose attorneys help represent Davis. She reviewed recanted testimonies of seven of nine trial witnesses and also the affidavits of others who had stepped forward with additional information. Some implicated another man in the murder of Officer Mark Allen MacPhail.

Forrest signed a sworn statement of her own:

"I have some serious doubts about the justness of Mr. Davis' death sentence. I find it very troubling that the jury's sentence was based upon incomplete and unreliable evidence. If I had been aware of this newly gathered evidence and had the benefit of it at trial, I would not have sentenced Mr. Davis to death."

Three other jurors in Davis' 1991 trial signed similar statements that his defense lawyers presented to the Georgia Board of Pardons and Paroles at a hearing on July 16, the day before Davis was set to die.

Curtis Wilson, Isaiah Middleton and Cynthia Quarterman also expressed concerns as to the fairness of Davis' punishment given after reviewing the revised testimonies.

The clemency board temporarily stayed Davis' execution.

On Friday, the Georgia Supreme Court agreed to hear Davis' request that he be granted a new trial. A spokeswoman for the clemency board said it would announce today if would hold a hearing previously scheduled for Thursday after the five board members have reviewed the Supreme Court's decision to hear the case.

Forrest said she believes Davis should not be put to death until the new evidence in his case is examined by a judge or jury. No court has yet seen the new information because of a 1996 federal law designed to streamline capital cases and place a time limit on inmate appeals.

"I can't say for sure if he's guilty or not, but he deserves to be heard," Forrest said.

It's not common to have four jurors change their minds based on new evidence, said one legal expert who has been studying capital case juries for 15 years.

"In this case, the fact that there are any jurors, but especially four with doubts about the death penalty, would sort of indicate that chances of a life sentence would be significant," said Scott Sundby, law professor at Washington & Lee University.

Because of the federal law, however, the difficulty is getting any forum to hear from Davis' defense attorneys, Sundby said. "I am impressed that the pardons board is open to this evidence," he said.

Sundby said a lot is asked of jurors who must make a decision of life and death.

"One of their greatest frustrations is when they have gone through this process and then they find out they didn't have the full picture," he said. "There is a sense of betrayal on their part. Their view is: You asked us to condemn someone to death, and we didn't have all the facts."

Forrest knows that if Davis' execution is carried out, it will be done in her name.

Since the trial, she has wrestled with her faith and the moral correctness of the death penalty. She is troubled by the case even more now that she has read the new testimony.

Forrest was 35 and working as a chemist when she was called for jury duty. She said few of the witnesses seemed like upstanding citizens, and she questioned their credibility.

"They were not people who were believable," Forrest said in a telephone interview from her office in Chicago, where she relocated in 1999.

The jury of seven blacks and five whites deliberated for one hour and 57 minutes before returning a verdict.

In the somber jury room, Forrest said her fellow jurors debated the testimony of Harriet Murray, who testified that she saw Davis with a "smirky-like smile" on his face when he shot MacPhail. The jury found her story compelling but discussed whether she could have really seen what was happening from a distance and in the darkness of night, Forrest recalled.

After the trial, in a 2002 affidavit, Murray was more ambiguous about who she saw that night. She no longer named Davis as the killer. Murray has since died.

Other jurors, Forrest said, talked about Davis' demeanor. She always thought he had a look of resignation.

There was a conversation about possible innocence. Is there any doubt about Davis' guilt based on what we heard? the jurors asked themselves.

Then they wrote down their verdicts. It was unanimous.

"I was under oath to vote according to the evidence we heard," she said. "I was compelled to agree [he was guilty] at the time.'

But the trial troubled Forrest. She never spoke about it with anyone, not even with the man she later married.

She got on with her new life, far from Savannah, far from the prison at Jackson, where Davis has been on death row for 16 years.

"What I did was put it out of my mind," she said.

After reviewing the new defense documents, she was eager to know what the clemency board would decide. "I was sitting on pins and needles to see if he got a stay," she said.

Now, like every other interested party in the case, Forrest has to wait longer.

If Davis winds up being executed, Forrest says she will have to live with herself. It will haunt her until her own death.



Bush and Karzai hold "strategy session" in US
Legal World News | 2007/08/06 13:15
Afghanistan's president Hamid Karzai has arrived in Camp David for what has been billed by experts as a "strategy session" with US president George W. Bush. On the agenda: the struggling, six-year effort to rebuild the war-torn country, and the efforts to defuse the threat from Taliban and al-Qaeda militants. A report from US spy agencies last month found both groups were training new recruits in the Waziristan region of Pakistan, near the Afghan border.

The more immediate crisis of trying to free the remaining 21 South Korean hostages seized by the Taliban last month will also dominate the talks. Seoul is pressuring the US and Afghanistan to do all they can to secure the group's release. Analysts say Bush will want to reassure Karzai of US commitment to his country. Washington has already allocated ten billion dollars for Afghanistan this year, and has also boosted troop levels.


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