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Ex-NBA Referee Pleads Guilty to Charges
Lawyer Blog News | 2007/08/15 14:38

Former referee Tim Donaghy pleaded guilty to two felony charges Wednesday in connection with the NBA betting scandal. Donaghy faces a maximum of 25 years in prison when he is sentenced for conspiracy to engage in wire fraud and transmitting waging information through interstate commerce. Donaghy provided recommendations, called "picks," to co-conspirators about what team they should bet on, said U.S. District Court Judge Carol Bagley Amon. If he was correct, they paid him.

The information was not public, the judge said. Donaghy had "unique access," including what crews would officiate at games, the interaction of different officials and players, and the physical condition of certain players.

He concealed the scheme from the NBA and other referees to avoid detection, the judge said. Donaghy also must pay a $500,000 fine and at least $30,000 in restitution.

Prosecutors said in open court that Donaghy bet on games himself; but that was not part of his plea.

The FBI first contacted the NBA on June 20 to talk about a referee alleged to be gambling on games, and the two sides met on June 21, NBA commissioner David Stern said last month. Donaghy resigned July 9 after 13 years as a referee; Stern said he would have fired him sooner but was told it might affect the investigation.

Stern blamed a "rogue, isolated criminal" for the betting scandal that threatened the credibility of every referee.

Donaghy was rated in the top tier of officials, Stern said, and there was nothing suspicious about the frequency of his foul calls. He was assigned to work in the second round of the playoffs, with his last NBA game coming during the Phoenix-San Antonio Western Conference semifinal series.

No other NBA officials or players were expected to be involved in the scandal, which Stern called the "most serious situation and worst situation that I have ever experienced either as a fan of the NBA, a lawyer for the NBA or a commissioner of the NBA."



Appeals court rules in Hanford downwinders' case
Lawyer Blog News | 2007/08/15 13:41
In a sweeping ruling Tuesday, a federal appeals court overturned a judgment in favor of a woman who had sued contractors at the Hanford nuclear reservation for causing her thyroid cancer, but opened the door for three other plaintiffs to get a new trial.

A three-judge panel of the 9th U.S. Circuit Court of Appeals in San Francisco also upheld a lower court's ruling dismissing the defendants' claims that they were immune from punishment because they were government contractors.
Since 1990, more than 2,300 people have sued over health problems they believe were caused by exposure to radioactive emissions from south-central Washington's Hanford site over the years. The downwinder cases are largely based on the release of iodine-131, a radioactive byproduct of nuclear weapons production.

A judge dismissed six of the 12 initial "bellwether" cases. In 2005, juries rejected four more during two trials. Just two people, who suffered from cancer, won damages totaling $544,759 against the government and the contractors that managed the federal site at the time.

The appeals court on Tuesday overturned the verdicts against three plaintiffs, Wanda Buckner, Shirley Carlisle and Kathryn Goldbloom, who suffer from hypothyroidism, a condition that slows the body's metabolism.

The district court erred in ruling that the plaintiff's endocrinologist could not testify that he authored articles on I-131's effect on thyroid cells, because it deprived the jury of testimony from the doctor about the extent of his expertise regarding causes of thyroid illness, the appeals court ruled.

In addition, the defendants were allowed to impeach the doctor's testimony based on inadmissible hearsay of another doctor who did not testify, the court ruled.

"We thus have no choice but to reverse the verdicts against plaintiffs Goldbloom, Carlisle, and Buckner and remand for a new trial," Chief Circuit Judge Mary M. Schroeder wrote for the panel.

The court also overturned the ruling in favor of plaintiff Gloria Wise, who was awarded $317,251, on statute of limitations grounds. However, the appeals court remanded the case to district court to determine whether Wise had the information necessary to file a claim within the three-year statute of limitations.

That particular ruling is significant because it could mean the claims of hundreds of other plaintiffs will be time-barred, said Kevin Van Wart, whose Chicago law firm represents General Electric Co., E.I. DuPont de Nemours Co. and UNC Nuclear Inc.

Richard Eymann, a plaintiffs attorney, said he did not yet know how many other clients could have their cases dismissed as a result. Despite that potential impact, Eymann called the overall ruling a victory for the downwinders.

"We're hoping that the contractors and the government will get into serious settlement negotiations with us," he said.

The federal government created Hanford in the 1940s as part of the top-secret Manhattan Project to build the atomic bomb. Contractors operated reactors and other facilities that historical documents say resulted in intentional and accidental releases of toxic chemicals and radiation.

Residents only learned of the emissions when the government declassified thousands of documents in 1986.

People in Arizona, Nevada, Utah and the Marshall Islands have received compensation for being exposed to radiation during the atomic buildup. Downwinders at the Hanford site have had a more difficult time because health studies have offered differing opinions on whether they have suffered substantial or chronic exposures that threatened their health.

Iodine-131 concentrates in the thyroid, which regulates the body's metabolism. Most of the plaintiffs have thyroid conditions, such as cancer, hypothyroidism and hyperthyroidism. To succeed at trial, plaintiffs had to prove they were “more likely than not” harmed by radioactive iodine gases released during Hanford operations.

That can be difficult to prove, in part because thyroid disorders are not caused only by exposure to radiation. The plaintiffs' had asked the court to expand the test for causation when there are potentially multiple causes, such as radiation, smoking, genetics or pregnancy.

The appeals court rejected that request.

The court rejected the companies' claims that they were immune from punishment because they were government contractors. The district court already had rejected that claim, as well as claims that the defendants could be held liable for any I-131 emissions from the Hanford facility, which the appeals court rejected as well.

The government already indemnified the contractors under the Price-Anderson Act and must pay any damage awards.

The court denied an appeal by plaintiff Shannon Rhodes, whose claims were rejected by a jury, and upheld the $227,508 award for plaintiff Steve Stanton.

The court also denied an appeal to move to state court claims by other plaintiffs who do not yet have symptoms of any thyroid disease. They had previously sued the contractors for the costs of medical monitoring, but their claims were dismissed.

Van Wart called the last ruling particularly significant because it could have potentially involved thousands of additional plaintiffs.



Lawyer hopes Bali heroin three will be spared
Lawyer Blog News | 2007/08/15 13:40

Three judges from the Denpasar District Court have advised the Supreme Court to reject a last-ditch appeal by Australian drug smugglers Matthew Norman, Si Yi Chen and Tan Duc Thanh Nguyen. But the trio's lawyer Farhat Abbas insists the Supreme Court is under no obligation to take the lower court's opinion into consideration.

A decision on the appeal, known as a judicial review, is not expected for at least several weeks. "The decision makers are the judges at the Supreme Court," Abbas said today.

"The opinion from the district court has nothing to do with the case because they can only hear it, but they cannot make a decision. "It will not affect our case." The trio launched the appeal earlier this year.

In emotional appeals to the Denpasar District Court in June, they finally admitted their roles in the failed bid to smuggle heroin from Bali into Australia.

During the hearings, defence lawyers argued they should have faced charges under drug possession laws, which carry a maximum penalty of 10 years in jail, rather than drug export laws, which allow for death.

The appeal is the trio's final bid to beat the death penalty, other than an appeal to Indonesia's president for clemency.

Three other Australians facing the death penalty over the plot - Scott Rush, 21, and ringleaders Andrew Chan, 23, and Myuran Sukumaran, 26 - have also launched challenges, arguing Indonesia's Constitutional Court should scrap the death penalty because the nation's constitution affords life as a basic right. The case is due to resume in Jakarta next week, with a decision some weeks away.

Meanwhile, there could also be some movement in the cases of the remaining three members of the Bali Nine who are not facing death. Lawyers for Michael Czugaj, 22, and Martin Stephens, 31, said they would soon make a decision on whether to launch a final appeal against their life sentences.

"Next week I'm going to meet (Stephens's) family in Bali, and I'm going to see the situation for the judicial review," his lawyer Wirawan Adnan said. Czugaj's lawyer Frans Passar also confirmed his client was also weighing an appeal.

The only female in the group, Renae Lawrence, has ruled out an appeal against her 20-year term, but could have her sentence shaved by one or two months to mark Indonesia's Independence Day holiday on Friday.

Under the Indonesian system, all prisoners are eligible for remission on Independence Day and some religious holidays, if they have served at least six months of their sentence and are not sentenced to either life in prison or death.



Union to take NSPS case to Supreme Court
Lawyer Blog News | 2007/08/14 18:59
Officials of the American Federation of Government Employees (AFGE) said today they would file an appeal with the U.S. Supreme Court to stop the Defense Department from implementing portions of the National Security Personnel System (NSPS). The officials announced their plans after the U.S. Court of Appeals denied on  Aug. 10 a motion by AFGE and the United Department of Defense Workers Coalition for an en banc, or full court, review of the court's earlier decision upholding NSPS regulations and overturning a lower-court ruling.

AFGE expects this week to file a motion to stay the issuance of the appeals court’s mandate in the case and within 90 days proceed with a petition to ask the Supreme Court to take the case, officials said.

“AFGE has been presented with the opportunity to bring this issue to the honorable justices of the U.S. Supreme Court and will face this head on,” John Gage, AFGE national president, said in a statement. “The [Bush] administration and DOD need to be taken to task on this issue. It’s time to stop the bullying and abuse this administration is directing toward DOD employees.”

Gage added that if NSPS were to be fully implemented, DOD workers “would be subjected to an arbitrary, dishonest and unfair working atmosphere.”

A series of court decisions on NSPS began in February 2006, when a ruling by U.S. District Court Judge Emmet Sullivan gutted NSPS provisions that related to labor relations, collective bargaining, independent third-party review, adverse actions and DOD’s proposed internal labor relations panel. However, on May 18, the Court of Appeals upheld the regulations in a 2-1 decision.


Microsoft Pays A Mere $511M in Legal Fees
Lawyer Blog News | 2007/08/13 19:07
Legal payouts of $511 million in one year would be enough to sink many companies. But for Microsoft, it amounts to a small victory.

That's what the Redmond company paid in legal settlements and related expenses in its fiscal year 2007, ended June 30. It was Microsoft's lowest total in years -- down from about $2.3 billion in payouts two years earlier.


But with cases still pending, most notably in Europe, it's not clear if the trend will continue.

The $511 million total for the year included payments in antitrust and unfair-competition class actions, intellectual property claims and a payment to extend a patent agreement with Sun Microsystems, Microsoft said in an Aug. 3 filing with the Securities and Exchange Commission.

During the year, the company's highest-profile antitrust payout was the settlement of a consumer class-action suit in Iowa. Microsoft agreed to pay up to $180 million in that case.

In one sign of the change, legal subjects were barely mentioned during Microsoft's annual meeting with financial analysts in Redmond last month. In years past, antitrust issues weighed more heavily on the minds of analysts.


Qantas May Face Big US Fines
Lawyer Blog News | 2007/08/13 18:32
QANTAS has admitted it may have to shell out far more than the $47 million set aside to pay potential fines and damages that could arise from a United States price-fixing investigation.

Managing director Geoff Dixon said yesterday that Qantas was not able to estimate the likelihood of fines in jurisdictions outside the US or what the outcome might be of third party class actions launched elsewhere.

Maurice Blackburn Cashman, a Melbourne legal firm of class action specialists, is suing Qantas, British Airways, Japan Airlines, Air New Zealand, Singapore Airlines and Lufthansa over allegations that fuel surcharges introduced in 2000 were artificially inflated.

The law firm alleges the airlines followed an index originally set up by Lufthansa and used it as a mechanism to inform each other how and when surcharges would be imposed.

Kim Parker, a principal of the law firm's major projects division, yesterday appealed to businesses that have shipped air freight over the past seven years to lodge a claim via her firm if they were unduly affected.

Earlier this month British Airways and Korean Airlines agreed to plead guilty in the US courts and pay separate fines of $US300 million ($355.6 million) after admitting their involvement in fixing fares and cargo charges.

At the same time, on the other side of the Atlantic, the UK Office of Fair Trading imposed an additional fine of pound stg. 121.5 million ($289.4 million).

Two other airlines, Lufthansa and Virgin Atlantic, escaped prosecution by admitting their involvement and giving evidence against other carriers to the US prosecutors.

In his official statement yesterday, Mr Dixon said Qantas had thoroughly investigated the matter and was co-operating with regulators in the US, Europe, Australia, New Zealand other jurisdictions.

"These investigations revealed the practice adopted by Qantas Freight and the cargo industry generally to fix and impose fuel surcharges was likely to have breached relevant competition laws," he admitted.

"To date, it has not been possible to quantify any direct or indirect liability associated with these matters.

"We are confident that the unacceptable conduct was limited to a small number of people," said Mr Dixon, adding that it was not appropriate to offer further comment.

Qantas yesterday continued to dismiss speculation it was selling its Frequent Flyer program to the Canadian company Aeroplan which also runs Air Canada's loyalty business.

The Australian carrier's corporate affairs department recycled late yesterday a statement issued on Friday denying that it was about to list the $3 billion-plus business and bring in Aeroplan as a partner.

Qantas fell 4 yesterday to $5.35.


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