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GOP takes e-mail case to NJ court
U.S. Legal News | 2009/02/13 16:32
Republican Party officials in New Jersey have asked the state's highest court to consider whether Gov. Jon Corzine should be forced to release e-mails he exchanged with the union leader he once dated.


Party spokesman Todd Riffle said papers were filed late Wednesday asking the state Supreme Court to hear the case.

GOP leader Tom Wilson hopes to get the court to order the Democratic governor to release the e-mails he and his staff exchanged with Carla Katz.

Corzine dated Katz, the leader of the state's largest state worker union, before he became governor. Wilson argues that the public has the right to see the e-mails Corzine and his staff exchanged with Katz during the 2007 labor talks to ensure no backdoor negotiations took place.

"The public has the right to judge for themselves whether Corzine's conduct was appropriate," Wilson said in a statement Thursday. "To do so, they need to see the e-mails and look at Corzine's actions on this contract."

Corzine and Katz were involved in the negotiations, though neither were principal negotiators.

Corzine has said the two did not discuss the contract. Katz, in court papers, however, argued that the e-mails should remain private because they involve contract talks, which are exempt from Open Public Records Act requests.

An appellate court ruled unanimously last month that Corzine's e-mails could stay private. That decision overturned a trial court ruling ordering the e-mails released.

The Appeals Court said the governor's electronic correspondence was protected by executive privilege, a legal principle that allows members of the executive branch of government to keep certain communications confidential in order to govern effectively.



Federal regulator urges foreclosure halt
U.S. Legal News | 2009/02/11 19:19
A federal regulator on Wednesday urged more than 800 thrift institutions to suspend all foreclosures while the Obama administration develops plans to keep borrowers in their homes.


John Reich, director of the Office of Thrift Supervision, said that by doing so, thrifts "would be supporting the national imperative to combat the economic crisis." But cooperation with the request is voluntary.

The Obama administration plans to spend $50 billion to combat foreclosures of owner-occupied middle-class homes, but is divulging few details. An announcement of the administration's housing plans is expected in the coming weeks.

"We're urging them to do it, but we're not going to try to force anyone to comply," said William Ruberry, a spokesman for the thrift agency. "We thought it was reasonable -- because the details (of the government's plans) are expected to be imminent."

Thrifts differ from banks in that, by law, they must have at least 65 percent of their lending in mortgages and other consumer loans -- making them particularly vulnerable to the housing downturn.

Some of the largest thrifts have collapsed over the past year. The failure of Seattle-based Washington Mutual Inc. in September was the largest bank collapse in U.S. history. IndyMac Bank, a Pasadena, Calif.-based thrift, failed last July in a prelude to the broader financial crisis that erupted in September.

The institutions regulated by the Office of Thrift Supervision range in size from small community banks to big institutions like ING Bank, part of Dutch financial giant ING Groep NV.

Thrifts are being closely examined by federal inspectors for signs of heavy exposure to declining markets, or troubled areas such as construction and real estate loans.

Twenty-five U.S. banks failed last year, far more than the previous five years combined, and nine banks have failed so far this year. It's expected that many more banks won't survive this year amid the pressures of tumbling home prices, rising mortgage foreclosures and tighter credit. Some may have to merge with other institutions.



Franken asks Minn. court to put him in Senate now
U.S. Legal News | 2009/02/06 16:45
Lawyers for Democrat Al Franken told Minnesota's highest court Thursday that he should be certified as the winner of his tight Senate race with Republican Norm Coleman without waiting for the outcome of his rival's legal challenge.


The Minnesota Supreme Court heard oral arguments on Franken's request for a certificate of election now, at least on an interim basis, so that Minnesota's empty seat can be filled without waiting the months it may take for the courts to resolve Coleman's separate lawsuit over the recount, which gave Franken a 225-vote advantage.

The justices took the case under advisement and didn't say when they might rule, but their many questions suggested they were skeptical of Franken's arguments.

GOP Gov. Tim Pawlenty and Democratic Secretary of State Mark Ritchie have rejected Franken's demand for the certificate, which he would need under Senate rules to take the seat Coleman had to vacate early last month as the new Congress convened.

Franken lawyer Marc Elias told the court Thursday that citizens are being deprived of their right to have two senators as Congress decides critical questions. He suggested that Minnesota was obligated under the Constitution and federal statutes to have two senators in place when Congress convened early last month.



Ousted Illinois governor's next fight is in court
U.S. Legal News | 2009/02/02 16:33
Now that he's been ousted from the governor's office, Rod Blagojevich is pinning his hopes of staying out of prison on a father-and-son duo of defense attorneys, one of whom grabbed the limelight at R&B superstar R. Kelly's sex tape trial.


"These are two of the most flamboyant attorneys in town," DePaul University law professor Leonard Cavise says of the team of Sam Adam and his son, Samuel E. Adam.

Cavise predicts fireworks if Blagojevich goes to trial on federal corruption charges, including allegations that he tried to sell the Senate seat vacated by President Barack Obama.

Federal prosecutors are expected to obtain an indictment by April. Blagojevich was arrested by FBI agents in December and was booted from office Thursday when a state Senate impeachment trial ended with a 59-0 vote against him.

Some are already questioning the Adams' legal strategy — including their decision to let Blagojevich go on a whirlwind New York media tour before his impeachment trial ended, fielding questions about the criminal case from Barbara Walters, Diane Sawyer, Larry King and more.

Blagojevich also gave an impassioned closing argument to senators before they removed him from office, although he didn't testify under oath.

His unwillingness to stay quiet cost him the help of his former lead attorney, Edward M. Genson, who announced he was withdrawing from the case before the media blitz.

Lawyers say Blagojevich tipped his hand about a possible defense when he said in his Senate plea that he had no intent to commit any crime.



Obama touts equal-pay bill at signing ceremony
U.S. Legal News | 2009/01/29 16:40
President Barack Obama signed an equal pay bill into law Thursday, declaring that it's a family issue, not just a women's issue.

The president picked the Lilly Ledbetter Fair Pay Act for the first piece of legislation to sign as president.

He appeared before a packed East Room audience for a ceremony, and Ledbetter stood at his side.

His entrance in the room was met with hearty cheers from the many labor and women's groups represented there. House Speaker Nancy Pelosi, the first woman speaker in the history of Congress, and Secretary of State Hillary Clinton, were present. Clinton went further than any woman previously in her campaign for the presidency, although she ultimately lost the Democratic Party competition to Obama.

The measure is designed to make it easier for workers to sue for decades-old discrimination. He said "this is a wonderful day."

The law effectively nullifies a 2007 Supreme Court decision that said workers had only 180 days to file a pay-discrimination lawsuit.

Ledbetter said she didn't become aware of a pay discrepancy until she neared the end of her 19-year career at a Goodyear Tire & Rubber Co. plant in Gadsden, Ala. She sued, but the Supreme Court in 2007 said she missed her chance.

The court said in its 5-4 ruling that a person must file a claim of discrimination within 180 days of a company's initial decision to pay a worker less than it pays another worker doing the same job. Under the new bill, given final passage in Congress this week, every new discriminatory paycheck would extend the statute of limitations for another 180 days.

Congress attempted to update the law to extend the time, but the Bush White House and Senate Republicans blocked the legislation in the last session of Congress

Opponents contended the legislation would gut the statute of limitations, encourage lawsuits and be a boon to trial lawyers. They also argued that employees could wait to file claims in hopes of reaping larger damage awards. The bill does not change current law limiting back pay for claimants to two years.



Lobbyists skirt Obama's earmark ban
U.S. Legal News | 2009/01/26 10:09
President Barack Obama's ban on earmarks in the $825 billion economic stimulus bill doesn't mean interest groups, lobbyists and lawmakers won't be able to funnel money to pet projects.


They're just working around it — and perhaps inadvertently making the process more secretive.

The projects run the gamut: a Metrolink station that needs building in Placentia, Calif.; a stretch of beach in Sandy Hook, N.J., that could really use some more sand; a water park in Miami.

There are thousands of projects like those that once would have been gotten money upfront but now are left to scramble for dollars at the back end of the process as "ready to go" jobs eligible for the stimulus plan.

The result, as The Associated Press learned in interviews with more than a dozen lawmakers, lobbyists and state and local officials, is a shadowy lobbying effort that may make it difficult to discern how hundreds of billions in federal money will be parceled out.

"'No earmarks' isn't a game-ender," said Peter Buffa, former mayor of Costa Mesa, Calif. "It just means there's a different way of going about making sure the funding is there."

It won't be in legislative language that overtly sets aside money for them. That's the infamous practice known as earmarking, which Obama and Democratic congressional leaders have agreed to nix for the massive stimulus package, expected to come up for a House vote this week.

Instead, the money will be doled out according to arcane formulas spelled out in the bill and in some cases based on the decisions of Obama administration officials, governors and state and local agencies that will choose the projects.

"Somebody's going to earmark it somewhere," said Howard Marlowe, a consultant for a coalition working to preserve beaches.



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