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Texas court upholds $42.4M verdict in prison death
Court Feed News | 2009/04/09 15:53
A Texas appeals court has upheld a multimillion dollar civil verdict against a Florida private prison company in the beating death of an inmate.


The 13th Court of Appeals ruled last week that Wackenhut Corrections Corp., now known as The GEO Group, and Warden David Forrest have to pay $42.5 million to the family of Gregorio de la Rosa Jr.

The company was accused of allowing two inmates to beat de la Rosa with padlocks stuffed in socks. He died in 2001, four days before his expected release from a facility in Raymondville.

A Willacy County jury had ordered the company to pay de la Rosa's family $47.5 million in a 2006 civil judgment. The Brownsville Herald reports that the appeals court reduced the judgment because a family member had died.



Investors ask court to free funds in Stanford case
Court Feed News | 2009/04/08 10:28
Investors unable to access $1.7 billion connected to companies owned by Texas billionaire R. Allen Stanford asked a federal appeals court Monday for access to their money.


The holders of about 4,000 accounts had their constitutional rights violated when a district judge in Dallas froze their Stanford-related assets, according to documents filed with the 5th U.S. Circuit Court of Appeals in New Orleans. The pleading also argues that the judge and a court-appointed receiver don't have jurisdiction over an Antigua-based bank connected to the alleged fraud.

The Securities and Exchange Commission filed a lawsuit in February accusing Stanford and his top financial officer of running a "massive Ponzi scheme" that defrauded investors of about $8 billion. Stanford has denied the allegations, and did so again Monday night during a tearful interview aired on ABC's "World News with Charles Gibson."

Attorney Michael Quilling, who represents about 35 account holders, said a favorable ruling on his pleading would result in the court unlocking the 4,000 accounts that the receiver has so far declined to release. He also questioned whether Dallas attorney Ralph Janvey, the court-appointed receiver, has jurisdiction in the case, calling Janvey "a king without a country."

"The big issue here is that right now thousands of Americans are having their due process rights trampled under the guise of an order that is based on no jurisdiction," Quilling said. "This is a second victimization. (Account holders) were victimized by the bank and its fraudulent practices and are now being victimized by the court and the receiver."



Court to decide if good lawyers can get more money
Court Feed News | 2009/04/06 16:54
The Supreme Court will decide whether a judge can award more money to winning lawyers because the judge thought they did a good job.


The high court on Monday agreed to hear an appeal from the state of Georgia over attorney fees for lawyers who sued to force dramatic changes in Georgia's foster care system.

U.S. District Judge Marvin Shoob awarded them $10.5 million in attorney fees, a $4.5 million enhancement on top of a $6 million award. Shoob said he increased the award because of the exceptional results that children's advocates achieved. The 11th U.S. Circuit Court of Appeals refused to overturn his decision.

The class-action lawsuit against Georgia, settled in 2005, prompted the state to reduce worker case loads, improve investigations into abuse and prevent overcrowding in foster homes. Gov. Sonny Perdue, one of the defendants in the lawsuit, authorized hiring 500 additional child welfare workers.

Shoob said the attorneys deserved the award because their lawsuit had beneficial results despite the state's resistance to reform. The state settled the case after fighting it for nearly three years.

Lawyers for Georgia say appeals courts around the nation have split on whether a judge can give lawyers extra money based on their performance.



N.Y. Court Ruling Goes to U.S. Club in America's Cup Battle
Court Feed News | 2009/04/03 15:01

The lengthy legal tussle between America’s Cup sailing teams BMW Oracle Racing and Alinghi over who has the right to challenge Alinghi for the next Cup appears to have taken a decisive tack in BMW Oracle's favor.

On Thursday, the New York State Court of Appeals ruled that BMW Oracle, the American-based syndicate that represents Golden Gate Yacht Club in San Francisco, should be restored as challenger of record for the oldest major trophy in international sport.

The verdict, a unanimous 6-0 decision, overturned a ruling last year that would have allowed the Spanish-based Club Nautico Español de Vela, or CNEV, to remain Alinghi's primary challenger.

The decision opens the way for an unconventional Cup at some stage in the next year in which BMW Oracle and Alinghi could face each other in a best-of-three regatta in massive, new-age catamarans. But there is also the possibility that Alinghi’s owner, Ernesto Bertarelli, and Larry Ellison, his counterpart at BMW Oracle, could, with the legal situation resolved, resume negotiations and agree on terms for a conventional multi-challenger regatta to be staged in 2010 or 2011.

Reached by e-mail, Bertarelli initially declined to comment. In an interview in December prior to the verdict, he indicated that he was unlikely to pursue further legal action if this appeal — in New York’s highest court — went against his team.

Jane Eagleson, a spokeswoman for BMW Oracle, said, “We’re obviously pleased with the court decision today, and we’re carefully studying the decision and expect to have further comment in the next few days.”

Rapprochement has proved elusive between Bertarelli and Ellison, both of whom sail on their yachts during competition. They were once on friendly terms but have been transformed into bitter rivals off the water by the 21-month dispute over the terms of the next Cup. The court battle has forced other would-be challengers to disband or drastically reduce their payrolls while they waited for clarity.



Judge freezes assets of Madoff sons, executives
Court Feed News | 2009/04/02 08:56
A judge froze the assets of disgraced Wall Street legend Bernard Madoff's two sons and five executives who ran hedge fund portfolios that funneled money into his Ponzi scheme.


The order by Connecticut Superior Court Judge Arthur Hiller, issued Monday and made public Tuesday, prohibits them from selling homes or moving money, and marks the first time their assets have been frozen.

"This is an important step," said David Golub, a lawyer representing the town of Fairfield, Connecticut, in a lawsuit against Madoff and the so-called feeder funds run by Tremont Group Holdings, Maxam Capital Management and Fairfield Greenwich Group.

The town's pension funds charged in a lawsuit that the funds "knew -- or willfully refused to know -- that Madoff's investment returns were not actually produced by his purported split-strike conversion strategy."

Separately, a judge in New York denied an appeal by Madoff's brother, Peter, to lift a freeze on his assets in a civil lawsuit. Peter Madoff had reached an agreement with U.S. authorities in December on an asset freeze, according to court papers.



Court refuses to throw out murder conviction
Court Feed News | 2009/03/31 09:34
The Supreme Court refused Tuesday to throw out a man's murder conviction even though a judge seated a juror that his lawyer wanted dismissed.


In a unanimous opinion, the high court refused to reverse the conviction of Michael Rivera, who was found guilty of first degree murder in the shooting death of 16-year-old Marcus Lee and sentenced to 85 years in prison.

Rivera's lawyer wanted to use one of his peremptory challenges on a female juror candidate, but a state judge refused to let him do it. The woman, Deloris Gomez, a business office supervisor at Cook County Hospital's outpatient orthopedic clinic, went on to become the jury forewoman.

The Illinois Supreme Court said she should have been dismissed, but that the error was harmless. Rivera's lawyers argued that the seating of an illegal juror should have required an automatic reversal.

"A state trial court's good faith but erroneous denial of a criminal defendant's peremptory challenge, we hold, does not require automatic reversal of the defendant's conviction, provided that all persons seated on the jury are qualified and unbiased," said Justice Ruth Bader Ginsburg, writing for the court.



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