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Supreme Court rejects tribal appeals
Headline News | 2007/03/27 16:02

The Supreme Court on Monday rejected appeals by American Indians to step into a decade-old lawsuit accusing the government of mismanaging more than $100 billion in oil, gas, timber and other royalties from their lands. The justices declined to disturb an appeals court ruling that removed U.S. District Judge Royce Lamberth from the case.

The appeals court said Lamberth, who held successive Democratic and Republican Interior Department secretaries in contempt of court, had lost his objectivity in the case.

The court also refused to review another appeals court ruling that reversed Lamberth’s order that the Interior Department disconnect its computers from the Internet for failing to provide adequate security for the Indians’ trust records.

The class-action suit, filed in 1996 by Elouise Cobell of the Blackfeet Tribe in Montana, deals with individual Indians’ lands. Several tribes have also sued, claiming mismanagement of their lands.

Earlier this month the government proposed paying $7 billion to settle the lawsuits, but only roughly half of that would go to the plaintiffs.

Lawmakers have said they plan hearings on the proposal. The Indians have said they would accept $27.5 billion to end the litigation.



Tony Snow's Cancer Spreads To Liver
Law & Politics | 2007/03/27 15:50

White House Press Secretary Tony Snow told the White House Tuesday that a growth discovered in his lower abdomen is cancerous. Snow reported that the cancer has spread to the liver, according to deputy Press Secretary Dana Perino. He is consulting with doctors on chemotherapy, Perino said, adding that Snow spoke with the president. Perino said Snow is feeling "pretty good." Perino said Snow told her, "I'm gonna beat it again."

President Bush, making a brief statement to reporters in the Rose Garden, struck an optimistic tone that echoed how aides said Snow was feeling. Mr. Bush said he looked forward to the day when Snow returns to the White House.

"His attitide is one that he is not going to let this whip him," Mr. Bush said. "My attitude is that we need to pray for him."

Snow underwent surgery Monday to remove a small growth in his lower abdomen, a procedure he said last Friday was being done "out of an aggressive sense of caution" because he had colon cancer two years ago.

Doctors determined that the growth was cancerous, and found during the surgery, which was exploratory, that his cancer had metastasized, or spread, to his liver, Perino said.

On the floor of the House of Representatives, Congressman Roy Blunt, R-Mo., said, "I've known Tony, we've all known Tony, for a long time and my belief is if anybody has the stamina and the fortitude and the positive nature to deal with this challenge, he has it," Blunt, who has also battled cancer, said.

"We're wishing him well and frankly hope he is back to work soon, because we need him," Blunt said.



Supreme Court hears antitrust case
Court Feed News | 2007/03/27 15:49
The US Supreme Court heard oral arguments Monday in the case of Leegin Creative Leather Products, Inc. v. PSKS, Inc., 06-480, in which a clothing manufacturer requests the Court to overrule a 1911 Supreme Court decision, Dr. Miles Medical Co. v. John D. Park & Sons Co. that held any minimum price agreement to be per se illegal and anti-competitive. In the present case, manufacturer Leegin ceased supplying goods to retailer PSKS after PSKS lowered its prices beneath the minimum set by the manufacturer. Leegin argued that such agreements foster competition among smaller retailers by preventing large retailers from setting extremely low and predatory prices. The trial court found that Leegin's actions violated the Sherman Antitrust Act and awarded PSKS treble damages. The US Court of Appeals for the Fifth Circuit affirmed the decision in favor of PSKS. Associate Justice Stephen Breyer speculated that dropping the per se rule would raise prices, while Associate Justice Antonin Scalia suggested that some consumers prefer to pay more in return for greater customer service.


Gonzales aide to invoke Fifth Amendment
Legal Career News | 2007/03/27 13:50

Attorney General Alberto Gonzales‘ liaison with the White House will refuse to answer questions at upcoming Senate hearings about the firings of eight U.S. attorneys, citing her Fifth Amendment protection against self-incrimination, her lawyer said Monday. The revelation complicated the outlook for Gonzales, who is traveling out of town this week even as he fights to keep his job.

Asked why he would want to remain as attorney general amid so many calls for his ouster, Gonzales said he‘s been asking himself lately whether it‘s appropriate for him to stay in his job.

But, he said, "at the end of the day, it‘s not about Alberto Gonzales. It‘s about this great Department of Justice that does so many wonderful things for the American people."

The House voted 329-78 to strip the attorney general of his power to indefinitely appoint federal prosecutors, approving a bill similar to one passed in the Senate. President Bush , who is standing by Gonzales, has signaled that he will not veto the legislation.



Jackson Law Firm Sues Scruggs In Dispute Over Fees
Headline News | 2007/03/27 11:37

A Jackson law firm has sued millionaire trial attorney Richard Scruggs for allegedly withholding money it claims it was owed for working on Hurricane Katrina insurance-related litigation.

The lawsuit was filed March 15 in Lafayette County Circuit Court by Grady F. Tollison Jr. on behalf of the Jones, Funderburg, Sessums, Peterson & Lee law firm in Jackson. No court date has been set for the lawsuit.

Tollison has requested a jury trial. Tollison was not in his office Tuesday and was not immediately available for comment.

Scruggs is one of the nation's wealthiest trial attorneys. In the late 1990s, his Mississippi-based firm earned nearly $1 billion in fees for his part in reaching a landmark $250 billion settlement with tobacco companies. He used that windfall to finance lawsuits against insurance companies for denying thousands of policyholders' claims after Katrina destroyed their homes.

Scruggs created a legal team, called the Scruggs Katrina Group, to represent the policyholders. SKG's work led to a settlement with State Farm Fire & Casualty Co. that will earn the attorneys about $26 million. Those legal fees are at the crux of the lawsuit.

Zach Scruggs of Oxford, Scruggs' son and law partner, said Tuesday that he could not immediately comment on the lawsuit. Also named as defendants in the lawsuit are other members of the SKG team.

The lawsuit, which gives only one side of the legal argument, alleges that senior partner John G. Jones and other members of the Jackson law firm deposed witnesses, handled briefs, filed motions and other tasks for Scruggs' group.

Specifically, the lawsuit mentions Jones and his law firm's work on a July 2006 lawsuit, filed by SKG on behalf of Pascagoula police officer Paul Leonard against Nationwide Mutual Insurance Co. over denial of Leonard's claim.

Jones participated in the questioning of witnesses in that lawsuit. The lawsuit notes that the agreement with SKG did not specify a percentage of fees that each participating law firm would receive.

The exception was a Ridgeland law firm that had agreed to finance part of the SKG joint venture.

The lawsuit alleges Scruggs and other conspired to "freeze out" the Jones firm and offered it a "ridiculously low figure" for its "substantial" work. Jones claimed his firm was offered a $1 million payment and was told it would get nothing from the legal fees to be paid by State Farm, according to the lawsuit.

Jones contends Scruggs declined to negotiate or enter into arbitration to settle the fees issue and kept Jones' law firm out of any other lawsuits filed by SKG. The Jones firm claims it is entitled to 20 percent of all past attorney fees collected by SKG and 20 percent of all future attorney fees SKG collects. The lawsuit also asks for unspecified punitive damages.



Lakin firm plans to stay put despite eviction notice
Headline News | 2007/03/26 21:35

BP America, landlord of the Lakin Law Firm, intends to evict the firm from its office in Wood River in about 90 days.

The Lakin firm intends to stay. The firm filed a complaint in Madison County circuit court March 21, seeking to extend its lease at 301 Evans Avenue for five years.

For the Lakin firm, Charles Chapman wrote that, "Plaintiff will suffer irreparable injury if this Court does not enter an injunction prohibiting Defendant from taking any actions to evict Plaintiff from the Leased Premises on or after June 30."

The property once served as office and warehouse for a refinery, and it looks more like an industrial plant than headquarters of a famous law firm.

Petrochemical pipes point toward the building. Docking structures stand by it. Three pairs of railroad tracks run by it.

At a bend in Evans Avenue, a broad asphalt apron leads to an entrance that the Lakin firm shares with oil company Atlantic Richfield.

According to Chapman's complaint, law firm founder Tom Lakin signed a 10-year lease with Amoco Petroleum Additives Company in 1996.

Amoco Petroleum Additives did not own the property, but leased it from Amoco Oil Company.

The lease gave Lakin 29,000 square feet of warehouse space and 22,000 square feet of office space, for a total of 51,000 square feet.

Rent started at $105,000 a year, a bargain rate at $2.06 per square foot.

The lease provided annual consumer price adjustments.

It gave the Lakin firm options for two five year extensions.

The lease began to run July 1, 1997. At some point, it passed to Amoco Remediation Management Services Corporation.

According to Chapman, the firm sent an option notice to Amoco Oil in Wood River in March 2006, and Amoco Oil forwarded it to Elizabeth Yordanoff, BP America managing attorney in Warrenville, Illinois.

He wrote, "Defendant did not respond to the option notice until Feb. 9, 2007, when defendant advised plaintiff, via a telephone call, that defendant was not interested in a long term lease and will not consent to the option…"

He wrote that on Feb. 23, Yordanoff advised the firm that BP America would not extend the lease because it planned to sell the property.

He wrote that Yordanoff offered to extend the lease to Dec. 31.

Chapman asked for declaratory judgment extending the lease to 2012. He wrote, "Plaintiff has complied with all prerequisites to exercise the option."

He wrote, "…the parties reasonably expected that plaintiff would exercise the option and that defendant would consent to the option."

He wrote that by delaying a response to the option notice for a year, BP America waived a provision conditioning the option on its consent.

Chapman also claimed breach of contract.

He wrote, "Plaintiff has sustained damages and will sustain damages if it is forced to move out of the premises at issue before June 30, 2012."

Chapman filed the suit on the miscellaneous remedies docket. Unelected associate judges hear "MR" cases.

As of March 26, Chief Judge Ann Callis had not assigned a judge.

If BP America dislodges the Lakin firm, Chapman will have to leave too.

He practices in the Lakin building, not as a member of the firm but as Charles W. Chapman, Chartered.



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