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House Democrats split on Armenian 'genocide' bill
Lawyer Blog News | 2007/10/17 16:37

A House vote on whether to label as genocide the killings of 1.5 million Armenians by what is now Turkey -- a resolution that deeply offended that key U.S. ally -- could be delayed as Democrats hash it out. While top Bush administration officials and powerful Democrats press colleagues to scrap the measure, House Majority Leader Steny Hoyer on Tuesday appeared to hedge his pledge to bring it to a full vote before November's holiday recess.

"I said I thought we would bring this up prior to us leaving here," said Hoyer. "I have not changed on that, although I would be less than candid [not] to say that there are a number of people who are revisiting their own positions."

President Bush called on House leaders Wednesday to abandon the measure. "Congress has more important work to do than antagonizing a democratic ally in the Muslim world, especially one that's providing vital support for our military every day."

Bush also said at a Wednesday news conference that "... one thing Congress should not be doing is sorting out the historical record of the Ottoman Empire," the predecessor of modern Turkey.

By a 27-21 vote last week, the House Foreign Affairs Committee adopted the resolution, which formally identifies the killings as genocide. Turkish officials acknowledge the killings of Armenians during World War I but vehemently object to the designation "genocide."

The U.S. and Iraqi governments fear the proposed resolution could harm Washington's influence with Turkish officials who want to launch military raids against Kurdish rebels in northern Iraq. Washington officials are concerned the Turkish raids would further destabilize the region.



Supreme Court dumps Microsoft, Best Buy appeal
Lawyer Blog News | 2007/10/16 15:11
The Supreme Court Monday rejected an appeal by Microsoft Corp. and a unit of Best Buy Co. Inc. to dismiss a lawsuit alleging violation of racketeering laws through fraudulently signing up customers for Microsoft's online service. The companies asked the justices to overturn a May ruling by the San Francisco-based 9th U.S. Circuit Court of Appeals, which said the civil suit could proceed. The Supreme Court is letting that ruling stand, which means the class-action lawsuit involving thousands of consumers with complaints against the companies will be litigated in federal district court.

Originally filed by one consumer in northern California, the lawsuit claims the companies' joint venture violated the Racketeer Influenced and Corrupt Organizations Act, or RICO, which is usually used in organized crime cases. Successful RICO claims provide for triple damage awards in civil cases.

In a friend-of-the-court filing on behalf of the companies, the U.S. Chamber of Commerce said the filing of civil cases invoking RICO is out of control and urged the Supreme Court to hear the case as a way to determine whether the use RICO should be reined in.

Under the joint venture, Microsoft invested $200 million in Best Buy in April 2000, and agreed to promote the company's online store through its Internet access service, MSN. In turn, Best Buy agreed to promote MSN in its stores.

The dispute began in 2003, when James Odom sued the companies after purchasing a laptop computer at a Best Buy store. Odom alleged that Best Buy included a software CD with his purchase that provided a six-month free trial to MSN.

Best Buy allegedly signed Odom up an MSN account with the credit card Odom used to pay for the computer. After a six-month free trial ended, Microsoft began charging him for the account, the suit charged.

Odom is one of two lead plaintiffs in a class-action suit involving thousands of consumers with similar claims, said Daniel Girard, a lead attorney on the case in San Francisco.

The lawsuit alleges the companies violated RICO by engaging in wire fraud when they electronically transmitted the plaintiffs' financial information. The plaintiffs are claiming damages in the "tens of millions," which if tripled would top $100 million, Girard said.

Microsoft has denied illegal conduct in response to these allegations and a Best Buy spokeswoman says the company does not comment on pending litigation.

In papers filed in court, the companies said their joint marketing agreement did not constitute an ongoing "enterprise," as required under the RICO statute.

The appeals court ruling that the companies' venture constituted an enterprise would greatly expand RICO's scope, Microsoft and Best Buy said.

The 9th Circuit's decision would "convert a statute designed to eradicate organized crime into a tool to induce settlements from legitimate businesses," the companies said. Most corporations "cannot risk the possibility of an award of treble damages" or the "reputational injury" of being sued under a law "associated with racketeers and mobsters," they added.

In its filing, the Chamber said civil RICO "is becoming one of the most frequent and damaging devices used against businesses." Over 4,500 RICO cases have been filed since 2001, the Chamber said, with only 35 of those filed by the government.

The case is Microsoft Corp. v. Odom, 07-138. Chief Justice John Roberts did not participate in the decision to turn down the case, the court said. As is customary, no reason was given, but Roberts' 2006 financial disclosure shows he owned Microsoft stock that year.



Medtronic Faces Suit Over Cardiac Leads
Lawyer Blog News | 2007/10/16 08:19

A pair of former users of Sprint Fidelis cardiac leads made by Medtronic Inc. (MDT) said Tuesday they are suing the medical device firm over injuries they claim to have sustained from the product.

The two are suing both for their own damages and as members of a class of all users of the leads.

The suit, filed in federal court in Minnesota, has plaintiffs Leonard Stavish and Kelly Liusi alleging the lead wire portion of the implanted heart defibrillators was defective and they "received jolting shocks when it falsely detected that the user needed a jolt from the device, or that the device failed, so that when they actually needed defibrillation they could not get it," according to their attorneys.

-William Spain; 415-439-6400



Attorney general pick has had terrorism cases
Lawyer Blog News | 2007/10/15 13:53
Early in the Bush administration, Michael Mukasey's position at the intersection of terrorism and the justice system may have cost him a promotion. Mukasey, then chief judge of the federal court in Manhattan, caught the eye of the White House in early 2002 for elevation to the U.S. Court of Appeals. A conservative intellectual whose admirers cut across party lines, he was running the nation's busiest courthouse just a mile from Ground Zero, one that had handled trials of Islamic radicals for nearly a decade.

But that June, President George W. Bush declared "dirty bomb" suspect Jose Padilla an enemy combatant. When Padilla's lawyers filed a challenge, Mukasey drew the case. White House lawyers decided they could not offer him the appellate post without seeming to undermine his impartiality, those familiar with the issue said.

Now, Mukasey's experiences in the Padilla case and other terrorism prosecutions undergird his credentials for nomination to become attorney general.

Mukasey recently argued in an opinion article for The Wall Street Journal that Congress should find ways to relieve the strain on a legal system trying to stop terrorist plots while still guarding the rights of terrorist suspects. He has advocated national security courts, where classified information could be presented in secret.

"If there is anybody who has a handle on the debate on terrorism issues, it's him," said David Kelley, who served as New York's U.S. attorney from 2003 to 2005. "He is one of the only people who has sufficient practical experience together with the intellectual ability."

The 1995 trial of Omar Abdel Rahman, an Egyptian known as the blind sheik, in the 1993 bombing of the World Trade Center presented Mukasey with questions that have fueled public debate since 9/11: how to ensure lawful treatment for terror suspects without impeding government efforts to protect citizens from attack.

Three years of litigation, including a nine-month trial, served as a "deep primer" on radical Islam, said Mary Jo White, the former U.S. attorney who brought the case. Andrew McCarthy, who led the prosecution, recalled months of litigation over questions on the limits of free speech and religious practice and the difficulty of prosecuting terrorism without making classified information public. "The arguments we've been having the last six years are the arguments we were having then," McCarthy said.

The appeals court had high praise for Mukasey's handling of the case, saying he "presided with extraordinary skill." Prosecutors in other terrorism cases say they study his jury instructions on the use of speech and religious convictions as evidence.

Only one of several attorneys interviewed who had clients in Mukasey's court after 9/11 had complaints about the way his client was treated.

However, Alexander Eisemann, who represented Zacarias Moussaoui's driver, said Mukasey was responsive to complaints that Hussein al-Attas was being physically mistreated in detention.

Also, Mukasey was presented with what has proved to be an intractable issue in dealing with suspected terrorists - Bush's assertion that he has the authority to designate even people captured in the U.S. as "enemy combatants." In late 2002, the judge gave the White House a split decision in the case, upholding the president's authority to consider an American citizen detained on U.S. soil an enemy combatant but ruling that Padilla was entitled to a lawyer who could challenge that status.


Law firm scolds school for trying to stop religious rap
Lawyer Blog News | 2007/10/15 10:57

A religious civil liberties law firm is touting its intervention in a case that allowed a Monroe High School sophomore to perform a Christian rap song at a school talent show this week. A school administrator initially banned performance of the song. Officials with the Liberty Counsel, based in Florida, Virginia and Washington, said James Whipper, 16, performed the song "He's Calling" at a school talent show Wednesday and won first place.

According to Liberty Counsel officials, assistant principal Montyne Barbee told James on Tuesday to perform a non-religious song. School officials could not be reached Friday.

Kenyetta Whipper, James' mother, contacted Liberty Counsel and met with Barbee. Liberty Counsel officials said they also sent a letter to the school's principal explaining that schools "cannot censor our religious speech" in events like a talent show for which students choose their own material to perform.



WCI facing federal class action lawsuit
Lawyer Blog News | 2007/10/15 10:02

WCI Communities Inc. is the latest developer to be targeted by homebuyers trying to get out of deals now that prices have fallen drastically. A federal class action lawsuit filed recently claims there's a fatal flaw in the contracts used by the Bonita Springs-based developer to sell the 116 units in its luxury, 21-story condo tower Florencia — now some buyers want their deposits back. Attorneys for WCI say there's no problem with the contracts, just a typographical error that shouldn't be held against the builder.

The lawsuit is one more symptom of a softening housing market. The median price of an existing condo in Lee County has fallen 38 percent from February 2006, at $353,900, the highest on record, to $218,800 in August 2007, the last month available, according to the Florida Association of Realtors. For single-family homes, the price has fallen 22 percent from the all-time high of $322,300 in December 2005 to $250,800 in August 2007.

Builders in Southwest Florida are seeing such challenges more and more, said Christopher Shields, a real estate attorney with the Pavese law firm in Fort Myers.

"Potential purchasers are trying to get out of their contracts," he said. "Typically in a rising market, it doesn't matter whether or not a developer has committed violations at all, the buyer goes ahead and closes because he thinks the property is going to be worth more next year."

Now that prices are soft, however, "They look for reasons where perhaps the developer is in violation of federal and state disclosure requirements."

Some recent examples of similar suits by both buyers and builders trying to make the best of contracts signed in better times:

• A federal class action lawsuit brought by people who bought houses from First Home Builders alleges that they were defrauded by the developer and real estate brokerage D'Alessandro & Woodyard in a program to sell homes as an investment with a guaranteed rate of return.

• Advantage Builders of America in March sued 13 people for more than $15,000 in damages and attorneys' fees because they entered into contracts to buy houses in Lehigh Acres and Cape Coral but didn't make payments.

• The builders of Sail Harbour in February asked the court to force 29 people to close on their deals in the south Fort Myers development.

The suit against WCI was filed in federal court by David Berry and John Schrenkel, who signed up to buy Unit 1202 in the Florencia building at The Colony Golf & Bay Club in Estero.

They say WCI ran afoul of the Interstate Land Sale Act, which regulates the sale or lease of land from developers.

In this case, WCI violated the act by neglecting to include a provision in the contract giving a buyer 20 days to make things right after being notified that he's in default of the contract, said Miami-based attorney Robert Cooper, who filed the suit.

That means, he said, that "if some purchaser accidentally fails to do x, y or z, the builder can't just take the deposit."

In this case, Schrenkel and Berry want out of the contract and their $115,000 deposit returned.

But WCI attorney Thomas Roehn told Cooper in a July 2 letter that it's all just a misunderstanding. "Inadvertently, the 20 days notice of default and opportunity to cure was provided to the seller rather than the purchaser."

That means the buyers aren't entitled to their money back, the letter says. "WCI looks forward to Mr. Schrenkel and Mr. Berry closing upon their purchase of Unit 1202 at Florencia."

Cooper filed the case anyway, seeking damages for his clients and any other Florencia buyer in the same situation.

He said this is the first case he's seen in which the 20-day default protection for the buyer was left out. "I have not seen other developers screw this provision up."

If successful, the suit would be the latest bad news for WCI, which reported a $33 million loss for the quarter ending June 30 as condo tower sales all but dried up and traditional home sales were sluggish.

On Aug. 30, billionaire investor Carl Icahn gained influence on the company's board as he, two close associates, three incumbents and three jointly nominated members were elected to the board.



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