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Nelson Levine acquires law office in N.Y.
Law Firm News | 2007/06/29 14:40



Law firm Nelson Levine de Luca & Horst said Thursday it has acquired the eight-lawyer New York office of Chicago-based Querrey & Harrow. The group adds three partners to an existing small New York office for Nelson Levine, which represents insurance industry clients.

The Querrey group focuses on complex insurance and reinsurance litigation. Querrey partner George Vogrin will serve as managing partner of the New York office. He currently serves as coordinating counsel to underwriters at Lloyds of London, and represents other London-based insurers and reinsurers.

The 50-lawyer Nelson Levine opened its London office last year to serve the firm's international insurance and surplus lines insurer clients and said the latest addition will enable the firm to focus on the European insurance market.

"As a boutique firm focused solely on the insurance industry, the European insurance market is essential to our continued growth," Nelson Levine Chairman Michael Nelson said. "The addition of this practice is a perfect fit for us, as it expands our capabilities and provides additional depth and support as well as unique experience in exciting new practice areas."

Nelson said Nelson Levine is ahead of its five-year growth plan and has taken on new space at its Blue Bell headquarters that can accommodate 70 lawyers. The firm also has offices in Philadelphia; Cherry Hill and Newark, N.J.; and Columbus, Ohio.



Supreme Court challenges Seattle schools
Headline News | 2007/06/29 14:38

A splintered Supreme Court ruling on school diversity leaves the Seattle School District where it has foundered the past six years - casting about for an acceptable way to maintain diverse and equitable schools. The 5-4 decision struck down Seattle's racial tiebreaker as well as an integration plan in Louisville, Ky. Justice Anthony Kennedy agreed with this result - along with Chief Justice John Roberts and Justices Antonin Scalia, Clarence Thomas and Samuel Alito - but departed from the majority opinion in a significant way. Their ruling, Kennedy wrote, was "at least open to the interpretation that the Constitution requires school districts to ignore the problem of de facto resegregation in schooling. I cannot endorse that conclusion. To the extent the plurality opinion suggests the Constitution mandates that state and local school authorities must accept the status quo of racial isolation in schools, it is, in my view, profoundly mistaken."

This page agrees. The legacy of past racial discrimination created a racially and economically segregated city on the edge of Puget Sound. Seattle has made long strides toward diversity but today's astronomical housing prices make further progress difficult.

The 46,000-student Seattle School District bears the brunt of these divisions. The district is divided along the Ship Canal into largely white, prosperous North End schools and, in the South End, heavily minority and often resource-poor schools.

Roberts' opinion, signed by the conservative justices, does not restrict a district's choice of where to build schools, where to add academic programs and how to allocate money, leaving open the possibility that these might be done with a purpose of racial diversity. Kennedy's opinion explicitly allows such a purpose.

Kennedy adds that if the district judged an applicant as an individual, "that might include race as a component." But what they cannot do, Kennedy said - and this is now federal law - is to place a racial label on a student and to assign the student to a school by "mechanical formula."

Seattle no longer does that. But the School Board will have to rise to the challenge of crafting a student-assignment plan that is fair and isn't blind to the inequality built along racial and socioeconomic lines.

Thursday, School Board President Cheryl Chow said the district has been extending high-quality programs such as the International Baccalaureate. The IB, which was available initially at Ingraham High School in the North End, is being extended to Sealth High School and Denny Middle School in Delridge. Foreign-language immersion, available initially at Stanford International School in Wallingford, will also be available at Concord Elementary in South Park.

The district's funding formula already favors South End schools and the needs are not satisfied. South End schools spend more on counselors, caseworkers and translators, and bonuses are offered to attract top teachers to work there.

The goal is excellence at every school. "We don't have that now," Chow said. The district needs to keep working on that problem, and in a way that is inclusive to all races and cultures.



Lawsuit over Scripps' billing of uninsured a class action
Class Action News | 2007/06/29 13:50

A San Diego Superior Court judge has granted class-action status to a lawsuit accusing Scripps Health hospitals of charging exorbitant amounts to uninsured patients who often aren't able to pay the bills without risking financial ruin. AdvertisementThe suit alleges that uninsured Scripps patients pay as much as four times more than patients covered by Medicare or private insurance for the same procedures. Those who don't pay their bills are sometimes reported to collection agencies that use aggressive tactics to pursue payments and cause damage to patients' credit, say attorneys for plaintiff Phillip Franklin.
The suit seeks refunds for as many as 100,000 uninsured patients who allege they were overcharged by Scripps' five San Diego hospitals since 2002 – an amount that could top $100 million – and penalties, said Kelly Dermody, a plaintiff's attorney.

Scripps “strongly objects” to the accusations, company spokesman Don Stanziano said yesterday. “Scripps is proud of our service to the community.”

He said the class-action designation, made Wednesday by Judge Steven Denton, did not represent a decision on the appropriateness of the bills under scrutiny. The ruling allows the plaintiff's attorneys to represent all the uninsured patients who might have been affected by the hospitals' practices.

“What happened today was expected. It's part of the process,” Stanziano said.

The case is similar to other suits filed in recent years in California and other states alleging that nonprofit health care systems such as Scripps have failed to live up to their legal obligation to provide free care to the needy in exchange for a tax-exempt status.

In the most recent case in California, Catholic Healthcare West agreed to pay $423 million in refunds and bill reductions to hundreds of thousands of uninsured patients who received care at the nonprofit's 35 hospitals in California. The San Francisco-based health care system did not admit any wrongdoing.

The Scripps case was filed last year by Franklin, of Solana Beach, who was referred to a collection agency after failing to pay a $2,900 bill for a visit to the emergency room at Scripps Memorial Hospital Encinitas in October 2004. Franklin was unemployed at the time because of a work-related disability and couldn't pay the charges, Dermody said.

Franklin went to the hospital with severe kidney pain and was diagnosed with a kidney stone. He was given urine and blood tests, a CT scan and pain medication, according to the suit, and was referred to a urologist.

The hospital was unwilling to let Franklin pay his bill in installments, Dermody said. The bill collector that later pursued the charges filed a lawsuit against Franklin in January 2006.

The rates at which Scripps bills uninsured patients – known as chargemaster prices – were, on average, 412 percent above the rates the hospitals charge when caring for patients covered by Medicare, the federal government's health care program for people who are elderly or have disabilities, according to the suit.

Government and private health plans routinely negotiate discounts for hospital services by using the leverage of being able to direct large numbers of patients to health care providers.

A recent article in the journal Health Affairs found growing evidence that uninsured patients are being charged considerably more – often as much as two and a half times – for hospital services than those with insurance.

The trend is a dramatic reversal from conditions 50 years ago when the poor and uninsured were often charged the lowest prices for medical services, wrote article author Gerard Anderson, a professor of health policy and management at Johns Hopkins Bloomberg School of Public Health in Baltimore.

Stanziano said that Scripps already offers a number of options for uninsured patients who need help paying their bills, including extended payment plans and discounts for those making less than 350 percent of the federal poverty rate or $72,275 a year for a family of four.



Mahoning County to pay fees to law firm
Headline News | 2007/06/29 13:43

Mahoning County commissioners approved paying legal fees of $99,500 Thursday to the law firm that sued the county in 2003 for having an overcrowded and unsafe jail. Prosecutor Paul Gains explained the fees were for work the firm Armbruster and Kelly of Akron did while working out a consent decree that detailed what would be needed to get the jail fully reopened and in compliance with the U.S. Constitution. That effort was completed May 17, when three federal judges signed a court entry that established standards for jail staffing, improvement of jail conditions, the reopening of jail facilities by Aug. 1, an allotment of jail beds for Youngstown city prisoners and an emergency prisoner-release policy to prevent future overcrowding.

In 2005, the lawyers won what Gains calls the liability phase of the case, in which U.S. District Judge David D. Dowd Jr. sided with the inmates and took control of the lockup.

Generally the losing party in a case pays the winning party's legal fees.

The county's insurance company, the County Risk Sharing Authority, also known as CORSA, paid the legal fees associated with the liability phase, Gains said.

But CORSA argued it shouldn't responsible for the fees associated with the consent agreement, Gains said, and he agreed to assign his staff to represent the county in that matter and to pay Armbruster and Kelly's fees.



Top court spares life of mentally ill killer
Court Feed News | 2007/06/29 12:47

The U.S. Supreme Court ruled Thursday that Texas should not execute a severely mentally ill man because he could not comprehend why he was going to be put to death. The 5-4 ruling, written by Justice Anthony Kennedy, spared the life of Scott Panetti, 49, who murdered his former in-laws in 1992 after battling mental health problems for years.

Panetti has been on Death Row in Texas since 1995 and has been diagnosed as schizophrenic.

Panetti's lawyers and attorneys for the state said he was mentally disturbed. The question was whether he was sufficiently mentally ill that it would violate the 8th Amendment, which bars cruel and unusual punishment, to execute him.

Panetti was hospitalized for mental illness 14 times in the decade before using a shotgun to kill his former in-laws in the Texas hill-country town of Fredericksburg, as his estranged wife Sonja and her son watched.

Panetti was ruled mentally competent to stand trial, to represent himself and to be executed. Before Thursday's decision, four courts, including the 5th U.S. Circuit Court of Appeals, rejected pleas by Panetti's lawyers to spare his life.

The case presented a particularly thorny question, because evidence was introduced that Panetti was aware that he had killed Amanda and Joe Alvarado. But expert testimony was presented that Panetti, known as "the Preacher" on Death Row, believed he was going to be executed because Texas was conspiring with the devil to block him from preaching the Gospel to fellow inmates -- not because of the Alvarado murders.

Kennedy found that Panetti's execution would be inconsistent with a 1986 Supreme Court decision that a person should not be put to death if he could not perceive "the connection between his crime and his punishment."

He was joined by Justices John Paul Stevens, David Souter, Ruth Bader Ginsburg and Stephen Breyer.

Dissenting was Justice Clarence Thomas, joined by Chief Justice John Roberts Jr. and Justices Antonin Scalia and Samuel Alito Jr.

The Supreme Court sent the case back to a federal judge in Austin, Texas, to reassess Panetti's mental health in light of the decision issued Thursday. Ted Cruz, the Texas solicitor general, said he would continue to press for Panetti's execution.

The high court's decision was hailed by the National Alliance on Mental Illness, which submitted a friend-of-the-court brief, as did the American Psychological Association and the American Psychiatric Association.

"For once, law has caught up with medical science," said Ronald Honberg, NAMI's director of policy and legal affairs.

"The circumstances of this case are tragic. ... However, execution of someone who is profoundly ill would only compound the original tragedy and represent a profound injustice for us all," Honberg said.



Sony Settles $8.5 Million Class Action Suit
Business Law Info | 2007/06/29 11:52

Sony Computer Entertainment America has settled an $8.5 million class action lawsuit with current and former employees, according to a statement issued by the law offices of Shapiro Haber & Urmy. First filed in 2005, the suit claims that Sony broke California labor laws by failing to pay overtime to qualifying employees. The suit represented a class of various artists and modelers known as "Image Production Employees," who worked at Sony any time between February 11, 2001 and September 25, 2007. The suit sought statutory penalties, damages, punitive damages, restitution and injunctive relief.

Under the terms of the settlement, Sony will pay $8.5 million in overtime wages to current and former employees, and will also "reclassify class members with a job title of Associate Artist and Artist 1 as nonexempt employees under the wage and hour laws of California and the federal Fair Labor Standards Act."

In spite of the settlement, Sony has denied the allegations in the suit and has admitted no liability or wrongdoing. According to a statement from the law firm, the settlement is conditional, "contingent upon court approval, and the settlement may be rescinded if a sufficient number of class members opt out of the settlement."



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