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Supreme Court to review Exxon Valdez award
Lawyer Blog News | 2007/10/29 16:44
The Supreme Court will decide whether a $2.5 billion punitive damages award against Exxon Corp. -- now Exxon Mobil -- for its role in the 1989 Exxon Valdez oil spill in Alaska was excessive. The justices agreed to hear the case Monday, and oral arguments will be held sometime next year. The suit was brought by fishermen, landowners, local governments and native Americans who claimed private economic harm from the spill. The company claimed it had already paid many millions in government fines, as well as $3.4 billion in cleanup costs.

A jury originally awarded $5 billion in 1994. A federal court later cut that amount in half, but it still was believed to be the largest punitive damages judgment of its kind in U.S. courts.

Much of the initial blame in the accident was placed on Capt. Joseph Hazelwood, whose alcohol abuse was found to have contributed to mistakes that let the ship to run aground. The company and the plaintiffs used different arguments when citing Hazelwood's actions, in efforts to boost their respective cases.

The issue was whether, based on past high court precedent limiting punitive awards, the judgment was too high. The company argues it should not have to pay any damages, and that the case has dragged on too long. Special maritime laws govern these kinds of disputes, and previous such cases will be important benchmarks when the justices grapple for a ruling.

Lawyers for the plaintiffs said the company has deep financial pockets, and even a multibillion-dollar judgment amounts only to "barely more than three weeks of Exxon's net profits."



NHPD narcotics cop pleads guilty
Lawyer Blog News | 2007/10/29 13:58
Former New Haven Police Department Lt. William “Billy” White, who headed the department’s narcotics unit for more than a decade, pleaded guilty Friday to conspiracy to commit bribery and theft of government property. White’s change of plea status — he pleaded not guilty shortly after his arrest last March — may result in a lesser sentence than if had he not changed his plea and had then been found guilty. White’s decision follows close on the heels of guilty pleas by former NHPD Detectives Jose Silva and Justen Kasperzyk, two other subjects of the federal investigation.

Following White and Kasperzyk’s arrest, the NHPD disbanded the narcotics unit and the city hired the Police Executive Research Forum to evaluate the NHPD. At forums since the original arrests, some city residents expressed frustration with a department they said has lost sight of community policing.

City Hall spokeswoman Jessica Mayorga said the three former police officers do not represent the general conduct of the rest of New Haven’s police force.

“It’s important for the community to understand that this is three officers who did despicable things,” Mayorga said. “These … officers do not represent the hard work of those 400 other officers.”

White has been charged with one count of bribery conspiracy — for which he faces up to five years imprisonment and a $250,000 fine — and two counts of government property theft, which could lead to 10 years and $250,000 in penalties. White must also pay restitution for the stolen federal and local funds and forfeit the money he gained from the bribery conspiracy, which will total over $25,000.

But the guilty plea affords White the benefit of a potential reduction of his Adjusted Offense Level, making 37 to 46 months imprisonment and a fine between $7,500 and $75,000 the most probable punishment. White is also subject to three years of supervised release after his prison term ends.

The Federal Bureau of Investigation began its undercover operation in July 2006, when a clandestine Connecticut State Police Sergeant began working with White, the supervisor of NHPD’s Narcotics Enforcement Unit at the time. Several incidents — including an FBI sting operation on Jan. 31, 2007 — confirmed White’s participation in unlawful acts and culminated in his indictment.

The FBI planted about $27,500 in a car with hidden cameras and microphones during its sting operation, luring White to the scene with a tip from the undercover agent’s informant. During this first encounter, White searched the trunk and removed $5,000 of the cash, professing he would not steal all of the funds in order to protect the informant’s safety. But later in the day, White, thinking the money belonged to a drug dealer, returned to the car and stole all of the money, splitting the stolen funds with the unnamed undercover officer.



Judge Orders T.I. Released on Bond
Lawyer Blog News | 2007/10/27 18:52
A federal judge ordered rapper T.I. released on $3 million bond Friday, but he must remain in home confinement while he awaits trial on weapons charges. U.S. Magistrate Judge Alan Baverman said the singer must remain under house arrest at a home in Henry County. He wasn't more specific about the location. T.I. (real name: Clifford Harris) will be monitored 24 hours a day by a private monitoring service that he must pay for.

He's restricted to the home except under certain circumstances, including medical appointments and court appearances. He cannot own any firearms and cannot have contact with any witnesses or informants in the case.

Noting that T.I has a team of highly qualified attorneys, the judge said: "You shouldn't do anything that will undermine their ability to represent you."

Defense lawyer Ed Garland argued that based on the amount of money being put up, there's no reason not to release his client.



US court lets Liz Taylor keep van Gogh painting
Lawyer Blog News | 2007/10/27 18:49
The U.S. Supreme Court allowed actress Elizabeth Taylor to keep a Vincent van Gogh painting on Monday, rejecting an appeal by descendants of a Jewish woman who said she was forced to sell it before fleeing Nazi Germany in 1939.

The justices refused to review a U.S. appeals court ruling that dismissed the lawsuit because the descendants waited too long to bring their claims demanding that Taylor return van Gogh's "View of the Asylum and Chapel at Saint-Remy."

Van Gogh painted the work in 1889. Less than a year later, he killed himself. Taylor's father purchased the painting on her behalf at a Sotheby's auction in 1963 in London for 92,000 British pounds -- about $257,000 at the time. The painting now is estimated to be worth tens of millions of dollars.

Four South African and Canadian descendants of Margarete Mauthner, a Jewish woman who fled Germany in 1939 for South Africa, sued Taylor in 2004 in federal court in California.

The lawsuit claimed the Nazis forced Mauthner to sell the painting under duress before fleeing Germany and that it should be returned to her descendants under the 1998 U.S. Holocaust Victims Redress Act.

Taylor said the record showed the painting was sold through two Jewish art dealers to a Jewish art collector, and that there was no evidence of any Nazi coercion or participation in the transactions.

A U.S. appeals court upheld the dismissal of the lawsuit.

It ruled the descendants had waited to long to bring the lawsuit and the claims under state law were barred by the statute of limitations.

It also ruled that the 1998 federal law refers to the United States and other governments working to return artworks confiscated during the Nazi rule to their rightful owners, but does not give individuals the right to sue private art owners.

Attorneys for the descendants appealed to the Supreme Court. "The issue is of pressing importance, given the advanced age of Holocaust survivors and their heirs," they said.

"There is a strong recent trend toward permitting claimants of Holocaust-era artwork to seek to recover them, regardless of the statute of limitations," the attorneys said in asking the Supreme Court to hear the case.

Taylor's attorneys opposed the appeal and said the appeals court's judgment was correct. They said the policy arguments by the descendants over the 1998 law should be directed to the U.S. Congress, not the Supreme Court.

In siding with Taylor, the high court turned down the appeal without any comment or recorded dissent.



Nominee: 'You Need Me in Traffic Court'
Lawyer Blog News | 2007/10/27 18:49
A pastor running for judge told potential donors they should give him $20 because "you're all going to need me in Traffic Court." Willie Singletary, who made headlines earlier this year for having his license suspended and owing more than $11,000 in unpaid traffic tickets, made the comment to a crowd of fellow motorcycle enthusiasts in April.

A video of it was posted on the video-sharing Web site YouTube.

"I'm telling you all just like it is. I need some money," the Democratic nominee tells the crowd. "I got some stuff that I got to do, but if you all can give me $20. You're all going to need me in Traffic Court, am I right about that?"

Singletary, 26, is a pastor from Southwest Philadelphia. He said he was only assuring his supporters that he would "give them a fair trial in the courtroom."

Singletary's attorney, Richard W. Hoy, said: "He hasn't done anything wrong. Everyone needs a friend in Traffic Court. You need a friend in Traffic Court. He was just promising people they would get a fair trial."

The Traffic Court oversees moving violations issued in Philadelphia and its judges earn nearly $80,000 per year. The judges need not be lawyers, but each must complete a course and pass an exam.

Singletary is seeking the job at a time when he is not allowed to drive.

His license is suspended through at least 2011 and, at the time he won the Democratic primary, he owed the court $11,427.50 for not paying 55 violations including reckless driving, driving without a license, careless driving without registration, and driving without insurance.

Singletary's father paid the fines soon after the May primary, canceling a bench warrant that had been issued for his son.

Singletary's campaign reports show that he had raised $5,239 for the primary election.



SEC sees "rampant" insider trading on Wall Street
Lawyer Blog News | 2007/10/26 16:10

A senior Securities and Exchange Commission official said on Thursday insider trading appeared to be "rampant" among Wall Street professionals and the agency has formed a working group to focus on it. "I believe we're going to see more insider trading cases," Linda Chatman Thomsen, the SEC's enforcement director, told reporters on the sidelines of a securities fraud conference. "I am disappointed in the number of cases we are seeing by people who make an abundant livelihood in the market that they are sort of abusing by insider trading," Thomsen said, referring to cases already brought against professionals this year.

Insider trading "appears to be rampant" among Wall Street securities professionals, she added.

Alice Fisher, assistant attorney general with the Justice Department's criminal division, echoed Thomsen's sentiment and said: "The number of insider trading cases don't seem to be going away."

In the past year, SEC enforcement lawyers have brought increasing numbers of insider trading lawsuits and settlements. Recent high-profile cases include charges against a husband and wife in Hong Kong for trades in Dow Jones & Co Inc shares ahead of News Corp's $5 billion takeover bid, and guilty pleas from three former Countrywide Financial Corp executives for trading company shares ahead of a disappointing profit report.

Also, in March U.S. prosecutors charged 13 people, including employees at top Wall Street banks UBS, Morgan Stanley  and Bear Stearns Cos Inc in what they called one of the most pervasive trading rings since the 1980s. The SEC also brought civil charges against 11 people, as well as against three hedge funds.

Insider trading involving hedge funds is the focus of one of the four internal working groups the SEC has set up to tap expertise and coordinate efforts throughout the agency. The $1.8 trillion hedge fund industry guards its secrecy and complex trading strategies.



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