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Supreme Court will hear employee harassment case
Lawyer Blog News | 2008/01/20 16:52
A longtime local government worker is fired after she cooperates with an investigation of sexual harassment allegations against a high-ranking official. The Supreme Court said Friday it will decide whether federal civil rights law protects employees from such retaliation.

The justices agreed to review claims by Vicky Crawford, who was fired in 2003 after more than 30 years as an employee of the school system for Nashville, Tenn., and Davidson County.

Months earlier, investigators interviewed Crawford about the school district's director of employee relations, Gene Hughes, and Crawford told them Hughes had sexually harassed her and other employees.

The investigation found Hughes had acted inappropriately, but did not recommend that he been disciplined.

Instead, Crawford learned she faced charges of irregularities in her job as payroll coordinator, and she was fired. Crawford then filed a federal lawsuit claiming she had been dismissed in retaliation for alleging harassment by Hughes.

A U.S. district judge and a three-judge panel of the 6th U.S. Circuit Court of Appeals dismissed the suit. The courts said the anti-retaliation provision of Title VII of the 1964 Civil Rights Act did not apply to Crawford because she didn't raise harassment claims on her own but merely responded to investigators' questions.

The Bush administration is supporting Crawford. "Internal investigations are an integral aspect of Title VII and there is no reason to leave cooperating witnesses unprotected," said Solicitor General Paul Clement.

The justices also will review a separate case involving age-discrimination claims filed by former workers at the Knolls Atomic Power Lab.



Turkey Bans YouTube for Second Time
Legal World News | 2008/01/20 16:50
A Turkish court has again blocked access to the popular video-sharing Web site YouTube because of clips allegedly insulting the country's founding father, according to reports Sunday.

It was the second time Turkey banned the site because of clips deemed disrespectful to Mustafa Kemal Ataturk. It is illegal in Turkey to insult the revered figure, whose portrait still hangs in nearly all government offices nearly 70 years after his death.

Users trying to access the Web site from Turkey were met with notices in English and Turkish saying it was banned under an Ankara court order issued Jan. 17.

Last March, another court blocked access to YouTube for two days after a complaint that some clips insulted Ataturk, a war hero who founded Turkey from the ruins of the Ottoman Empire. The ban was lifted after YouTube removed the offending videos.

In September, a court in the eastern city of Sivas ordered a ban after saying video on the site insulted Ataturk, President Abdullah Gul, Prime Minister Recep Tayyip Erdogan and the army, but the ban was never implemented.

Vatan newspaper reported Sunday that the current ban also was imposed because of videos that were allegedly disrespectful of Ataturk.

It was not clear how long the current ban would last. The state-run Anatolia said officials from YouTube, which is owned by Google, issued a statement saying the company hoped access would be re-established quickly.

The YouTube bans in Turkey have highlighted the country's troubled record on free expression. Several prominent Turkish journalists and writers — including Nobel literature prize winner Orhan Pamuk — have been tried for allegedly insulting "Turkishness."

Turkey is not alone in blocking YouTube. Last year, the Thai government banned the site for about four months because of clips seen as offensive to Thailand's revered monarch, King Bhumibol Adulyadej.

And in May, Moroccans were unable to access YouTube after users posted videos critical of Morocco's treatment of the people of Western Sahara, a territory that Morocco took control of in 1975. An official blamed a technical glitch, but could not explain its nature or why it affected only the YouTube site.



US Court To Hear Review Of “Light” Cigarettes
Lawyer Blog News | 2008/01/20 16:49
The Supreme Court agreed Friday to a cigarette maker's request to decide whether tobacco companies can be sued under state law for allegedly deceptive advertising of "light" cigarettes.

The tobacco industry is trying to head off a wave of state-based challenges regarding the light cigarettes, even as it is appealing a federal judge's order to stop marketing cigarettes as "low tar," "light," "ultra light" or "mild" because they mislead consumers.

The issue before the justices is whether state laws against unfair marketing practices may be used in suits against the tobacco companies or whether federal law bars such lawsuits. The Federal Cigarette Labeling and Advertising Act says states can't impose any requirements on the advertising or promotion of cigarettes.

A federal judge initially threw out a suit filed by three Maine residents against Altria Group Inc. and its Philip Morris USA Inc. subsidiary that alleged the advertising of light cigarettes was unfair and deceptive.

The 1st U.S. Circuit Court of Appeals in Boston, however, reinstated the suit.

The Maine plaintiffs said they smoked Marlboro Lights, made by Philip Morris, for at least 15 years. They claim the company marketed the cigarettes as "light" and having "lowered tar and nicotine" despite knowing that those statements were false, in violation of Maine's Unfair Trade Practices Act.

The company has research, the plaintiffs say, that shows it knew that smokers of the light cigarettes took deeper puffs and used other techniques to ensure they received as much nicotine as they would have gotten from regular cigarettes.

Philip Morris said the lawsuit was properly dismissed by the federal judge and called on the Supreme Court to resolve a conflict between appeals courts over these sorts of lawsuits. The 5th U.S. Circuit Court of Appeals in New Orleans last year dismissed a similar suit.

In the government's landmark case against tobacco companies, U.S. District Judge Gladys Kessler said the companies "distorted the truth about low tar and light cigarettes so as to discourage smokers from quitting."

That case is on appeal with the U.S. Circuit Court of Appeals for the District of Columbia.

A separate federal lawsuit filed by smokers is pending in New York. The class-action suit alleges tobacco companies violated federal racketeering laws by promoting light cigarettes as lower-risk alternatives to regular cigarettes even though their internal documents showed they knew the risks were about the same. The class may consist of as many as 60 million people, lawyers say.

The 2nd U.S. Circuit Court of Appeals in New York is considering whether the lawsuit can proceed as a class action or whether smokers must file suit individually.

The basics of the claims against the companies are similar in all the lawsuits: The companies knew that smokers may compensate for the lower tar and nicotine yields by taking deeper puffs, holding the smoke in their lungs longer or smoking more cigarettes.

The R.J. Reynolds Tobacco Company filed a brief in support of its chief rival, saying the financial stakes in the case are enormous.

The U.S. Chamber of Commerce, also backing Altria, said the appeals court ruling could extend well beyond cigarette labels to product liability lawsuits against many industries.



Chief Justice Recuses Himself from Massey Case
Lawyer Blog News | 2008/01/18 16:51
The chief justice of the state Supreme Court agreed Friday to remove himself from a pending case involving Massey Energy Co., days after vacation photos surfaced showing him in Monaco with the coal producer's top executive. Chief Justice Elliott "Spike" Maynard said he was stepping down from the matter "despite the fact that I have no doubt in my own mind and firmly believe I have been and would be fair and impartial in this case."

But in the three-paragraph statement, Maynard said "it has now become an issue of public perception and public confidence in the courts."

Maynard helped form a 3-2 majority in November that overturned a multimillion-dollar judgment against Richmond, Va.-based Massey that another company, Harman Mining, and its president, Hugh Caperton, had won in a contract dispute. Caperton had asked Maynard to step down from the case before the high court reconsiders that ruling. With interest, the damages are worth $76.3 million.

Bruce Stanley, a lawyer for Caperton, declined to comment Friday until after discussing the development with his client.

A Massey spokesman did not immediately respond to a message requesting comment.

The photos of Maynard and Massey Energy chief Don Blankenship together in Monaco in 2006 were included in a revised court motion filed Monday.

Both men have said they were on separate vacations, and that each paid his own way. Maynard has also said his friendship with Blankenship has not affected his impartiality on the court.

In one picture, the men are sitting side-by-side, smiling over empty glasses at a cafe along the Riviera as the Mediterranean sun sets behind them. In others, they are posing by the seaside. Ten other photos were filed under seal, and depict the men with two female companions, the motion said.

The court must now appoint a replacement, likely a circuit judge or retired jurist, to sit in Maynard's place.

Harman Mining is also challenging the impartiality of another justice, Brent Benjamin, arguing he should step down because Blankenship spent millions of dollars on an ad campaign attacking another justice on the court that helped to boost Benjamin into office in 2004.

That recusal petition was filed late Thursday. Benjamin has not yet responded, court spokeswoman Jennifer Bundy said Friday.

State court rules require judicial officers to disqualify themselves from proceedings if their "impartiality might reasonably be questioned," or if they have "a personal bias or prejudice concerning a party or a party's lawyer."

Caperton contends that he and his company were driven into bankruptcy by unfair and deceptive dealings by Massey, the country's fourth-largest coal producer. A Boone County jury awarded Harman and Caperton $50 million in damages, which later swelled to $76.3 million with interest.

In the 3-2 ruling in November, though, three justices including Maynard and Benjamin agreed that whatever its merits, the case should not have been pursued in West Virginia courts.

On Thursday, a settlement was announced in Washington in which Massey agreed to pay a $20 million fine over allegations it routinely polluted hundreds of streams and waterways in West Virginia and Kentucky with sediment-filled waste water and coal slurry.

Under the agreement with the U.S. Environmental Protection Agency, Massey also will invest millions of dollars for pollution control improvements at its 44 mines and coal facilities in the two states and in Virginia, the EPA and Justice Department said.



IRS audited 1 out of every 11 millionaires in 2007
Lawyer News | 2008/01/18 14:52
There's at least one advantage to not being a millionaire — less chance of being audited by the Internal Revenue Service.

The tax agency said Thursday that in the 2007 budget year it audited one out of every 11 with incomes of $1 million or more. Among those with incomes of $100,000 or less, 99 out of every 100 escaped further IRS scrutiny.

Still, the IRS said its auditing rates were generally up for people of all income levels. The rates were 9.25 percent for those with incomes of more than $1 million, up from 6.3 percent in 2006; 2.87 percent for those with incomes above $200,000, up from 2.57 percent; and 0.93 percent for those earning under $100,000, compared to 0.89 percent the previous year.

Overall, the IRS looked at 1,384,563 returns in fiscal 2007, 1.03 percent of the total individual returns of 134.4 million in the previous calendar year. The audit rate was up 7 percent from the previous year.

There were 31,382 audits of those with $1 million incomes, up 84 percent from the 17,015 audited in 2006.

On the business side, the IRS said the audit focus was on partnerships and mid-market corporations, those with assets between $10 million and $50 million.

The returns of 59,516 businesses were audited in 2007, 0.66 percent of the total and compared to 52,223 in 2006. About one out of six large corporations with assets of $10 million and higher was audited, 9,644 out of 57,357, were audited, down slightly from the previous year.

The tax agency said its enforcement budget in 2007 was largely unchanged from 2006, so it had to focus on areas of growth and potential risk.

It said enforcement revenues in fiscal 2007, from collections and appeals activities, were $59.2 billion, up from $48.7 billion the previous year.

The IRS also noted that 57 percent of individual tax filers filed electronically last year, up from 54 percent in 2006.



Attorneys Press High Court To Hear Enron Investor Suit
Lawyer Blog News | 2008/01/18 14:47
A $40 billion lawsuit by Enron investors against several banks for orchestrating financing deals for the now-defunct energy trader is not dead, despite a recent Supreme Court decision that helps protect such third parties.

In fact, some lawyers who represent investors argue the high court decision involving cable company Charter Communications and two of its suppliers, made a clear distinction that justifies hearing the Enron case.

The Supreme Court ruled 5-3 that shareholders cannot sue third parties in securities fraud cases, unless investors relied on their statements or representations when making investment decisions.

Stoneridge Investment Partners, on behalf of Charter shareholders, had accused the two suppliers of scheming to inflate company revenues in 2000.

Lawyers for investors point to sections of Justice Anthony Kennedy's majority opinion, which they say makes a distinction between third parties involved in the goods and services arena and those involved in the investment sector.

"He repeatedly made that distinction. That distinction distinguishes Enron from Stoneridge," said Pamela Gilbert, a consultant for the American Association for Justice, the world's largest trial bar association.

"Stoneridge involves a customer relationship. In Enron, the major wrongdoers are the investment banks involved in the financial transactions," Gilbert said.



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