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Bankruptcy Court Orders External Audit for Church
Lawyer Blog News |
2007/04/12 15:59
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A federal bankruptcy judge Wednesday ordered an external audit of the Roman Catholic Diocese of San Diego amid accusations church leaders are trying to hide assessts to avoid payment to sex abuse victims. Judge Louise DeCarl Adler had earlier threatened the diocese with contempt for misrepresenting facts and possibly violating bankruptcy laws. She criticized church attorneys for failing to include 770 parish accounts in bankruptcy documents. "This is the most Byzantine accounting system I've ever seen," Adler said. "I am mystified." The contempt threat Monday came six weeks after the diocese sought bankruptcy protection amid lawsuits by more than 140 people who accuse priests of sexual abuse. Adler had cited a March 29 letter sent by a diocese parish organization to pastors urging them to get new taxpayer identification numbers and transfer funds to new accounts. The judge had said any post-bankruptcy transfers between the diocese and parishes outside of normal cash operations violate laws against shifting the diocese's assets while the bankruptcy case is pending - rules designed to protect assets that may eventually be used to compensate clergy sexual abuse victims. She said any transfers require court approval. In a sternly worded order, Adler had said attorneys Susan Boswell, Jeffry Davis and Victor Vilaplana appear to have "conspired with parishes" to create new bank accounts separate from the diocese. On Wednesday, Adler grilled attorneys representing the diocese and the parish organization, as well as two pastors who had sent letters the judge said misrepresented her comments during an earlier hearing. Boswell apologized and said she had misinterpreted the judge's comments at a March 1 hearing concerning how the parishes should go about protecting their cash flow through the bankruptcy process. "We are not dealing with a commercial enterprise - we are dealing with a church," said Boswell. "What it does is give money to the parishes. This is not a nefarious function." Boswell agreed to file amended statements with the court reflecting parish accounts operating under the diocese's taxpayer identification number and to cooperate with an independent audit. Attorneys for the alleged victims have repeatedly accused the church of trying to hide assets to reduce the overall sum available for potential settlements. They estimate that a fair settlement would total about $200 million. In March, the diocese proposed a $95 million settlement schedule for victims that would offer plaintiffs anywhere from $10,000 to $800,000. San Diego was the fifth U.S. diocese to file for bankruptcy. The other dioceses that have filed for bankruptcy protection are Davenport, Iowa; Portland, Ore.; Spokane, Wash.; and Tucson, Ariz. Tucson has emerged from bankruptcy protection, while proposed settlements are awaiting final approval in Portland and Spokane.
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Senate-approved stem-cell bill faces veto
Lawyer Blog News |
2007/04/12 15:40
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The U.S. Senate passed a bill that aimed to loosen President Bush's restrictions on human embryonic stem cell research for the second time in nine months, but once again falling short of the 67 votes needed to override a promised veto, the Washington Post reported Wednesday. The Senate voted 63 to 34 to pass the Stem Cell Research Enhancement Act, which would allow federally funded studies of stem cells isolated from embryos slated for destruction at fertility clinics. The vote capped 20 hours of often passionate debate, with proponents focusing on the cells' potential to help treat a wide range of diseases and opponents decrying the fact that human embryos must be destroyed to retrieve them. With the House having passed a similar bill in January, the two chambers are now set to hammer out compromise wording and send the legislation to Bush. But the White House Tuesday set the stage fora new Bush veto, saying it was unthinkable that public tax dollars should be used to destroy human embryos. Bush used his power of veto for the first time in his presidency to slap down a similar text passed in Congress last year, when it was then controlled by his Republican party. However, proponents are relishing the fact that they will have the opportunity to rebuke the president by overriding that veto this time. Although the House majority favoring the legislation is 15 votes larger this year than that in 2005, it is still dozens short of the two-thirds needed for an override. In that case, Bush's veto pen will prevail and the situation will revert to what it has been since Aug. 9, 2001, when Bush, in his first major televised address to the nation, declared that federal funds could only be used to study stem cells derived from embryos already destroyed by that date.
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California diocese threatened with contempt
Lawyer Blog News |
2007/04/11 15:54
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A federal bankruptcy judge is threatening the Roman Catholic Diocese of San Diego with contempt for allegedly attempting to hide assets to avoid payment to clergy sexual abuse victims. Judge Louise DeCarl Adler ordered the diocese's lead attorney into court Wednesday to explain why she and her colleagues should not be sanctioned. Adler cited a March 29 letter sent by a diocese parish organization to pastors urging them to get new taxpayer identification numbers and transfer funds to new accounts. The threat Monday came six weeks after the diocese sought bankruptcy protection amid lawsuits by more than 140 people who accuse priests of sexual abuse. The judge said any post-bankruptcy transfers between the diocese and parishes outside of normal cash operations violate her ruling against shifting the diocese's assets while the bankruptcy case is pending. She said any transfers require court approval. In a sternly worded order, Adler said attorneys Susan Boswell, Jeffry Davis and Victor Vilaplana appear to have "conspired with parishes" to create new bank accounts separate from the diocese. Boswell wrote in court documents Tuesday that no intentional misrepresentations or misstatements had been made. She said the diocese has "no access or control" over money in more than 770 bank accounts opened by parishes and parochial schools under the diocese's taxpayer identification number. Davis wrote in court papers that he thought comments Adler made in an earlier hearing suggested that parishes should obtain their own taxpayer identification numbers for clarity in the bankruptcy case. Attorneys for the alleged victims have repeatedly accused the church of trying to hide assets to reduce the overall sum available for potential settlements. They estimate that a fair settlement would total about $200 million. In March, the diocese proposed a $95 million settlement schedule for victims that would offer plaintiffs anywhere from $10,000 to $800,000. San Diego was the fifth U.S. diocese to file for bankruptcy. The other dioceses that have filed for bankruptcy protection are Davenport, Iowa; Portland, Ore.; Spokane, Wash.; and Tucson, Ariz. Tucson has emerged from bankruptcy protection, while proposed settlements are awaiting final approval in Portland and Spokane. |
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Gonzales gets subpoena in US firings
Lawyer Blog News |
2007/04/11 06:19
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The US House Judiciary Committee issued a subpoena to US Attorney General Alberto Gonzales Tuesday for US Justice Department documents relating to the firings of eight US Attorneys. In a letter accompanying the subpoena, committee Chairman John Conyers, Jr. (D-MI) noted that the DOJ's "incomplete response" to the committee's request for documents "falls far short of what is needed for the Subcommittee and Committee to effectively exercise their oversight responsibilities in ascertaining the truth behind the very serious concerns that have been raised regarding this matter." The subpoena comes the day after four senators on the Senate Judiciary Committee sent a letter to Gonzales, requesting additional undisclosed documents in that committee's investigation of the firings and claiming the DOJ failed to turn over relevant documents despite repeated calls from the Senate Judiciary Committee. The letter from US Senators Arlen Specter (R-PA), Patrick Leahy (D-VT), Charles Schumer (D-NY), and Dianne Feinstein (D-CA) suggests that the DOJ has been less than forthright in disclosing documents:
We are concerned that additional documents relevant to the Committees' investigations are missing or have been withheld.... Given that this was a process that extended over more than two years and involved staff from both the Department of Justice and the White House, and involved consideration of a number of U.S. Attorneys, there would seem to be other documents that would comment upon the reasons some U.S. Attorneys were chosen for removal and others were not. For example, there are press reports that the former U.S. Attorney in San Francisco had multiple evaluations and was the subject of significant discussions. Documents reflecting those multiple evaluations and significant discussions have not been produced to date. This raises a question about whether we have seen all similar documents about others selected for replacement or left in place. In addition, the letter identifies specific undisclosed documents such as a chart provided by former Gonzales aide Monica Goodling to former chief of staff Kyle Sampson, who both resigned in the wake of the scandal, that was described in an e-mail that was turned over to the committee. The letter also outlines several document requests and poses questions from the committee concerning its disclosure procedures. Last Thursday, Leahy sent a letter to White House counsel Fred Fielding seeking undisclosed documents relating to the firings from President George W. Bush. Last Monday, Leahy rejected attempts by the Bush administration to move up the date that Gonzales is scheduled to testify. In March, Sampson told the Senate Judiciary Committee that the prosecutors were fired for political reasons rather than for poor performance as the DOJ has claimed. |
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Cablevision appeals network DVR ruling
Lawyer Blog News |
2007/04/10 17:01
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Cablevision Systems Corp. appealed on Tuesday a federal court ruling that blocked the New York-area cable TV provider's rollout of a next-generation digital video recorder service. Cablevision sought an expedited review of the case before the 2nd U.S. Circuit Court of Appeals, claiming that the U.S. District Court ruling in New York last month misapplied copyright law to its remote-storage digital video recorder, or DVR. Cablevision's case has been closely watched in the cable TV industry. If allowed to proceed, the remote-storage DVR could allow companies like Cablevision to dramatically increase the rate at which they introduce digital video recording services to their customers. DVRs allow cable TV subscribers to record TV programs without the hassles of videotape, letting users pause live TV, do instant replays and begin watching programs even before the recording has finished. Viewers can also skip through commercials, something that worries the TV industry. Cablevision's system would have allowed any cable subscriber with a digital cable box to have DVR-like service by storing and playing back shows on computer servers maintained by Cablevision. That could allow Cablevision to offer the service to many more customers without having to install the expensive hard drive-equipped DVR boxes in each home, as is currently the case. A group of Hollywood studios successfully sued Cablevision, claiming that the remote-storage system would have amounted to an additional broadcast of their programs, something for which they haven't given permission. Cablevision argued its service was permissible because the control of the recording and playback was in the hands of the consumer. A landmark 1984 Supreme Court case found that Sony Corp. wasn't breaking copyright laws if home viewers used Sony's Betamax videotape recorders to record and play back shows for personal use. "We continue to believe strongly that remote-storage DVR is permissible under current copyright law and offers significant benefits to consumers, including lower costs and faster deployment of this popular technology to our digital cable customers," Tom Rutledge, Cablevision's chief operating officer, said in a statement. |
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Judge Nixes Conrad Black Mistrial Motion
Lawyer Blog News |
2007/04/10 00:55
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Judge Amy St. Eve of the US District Court for the Northern District of Illinois denied a motion Monday for a mistrial in the prosecution of Canadian-born former media mogul Conrad Black on fraud charges. John Boultbee, a former associate of Black and his current co-defendant, requested a separate trial from Black in addition to the motion for a mistrial in Black's case. Both pleas were rejected. Boultbee, the former CFO of Hollinger International, stands accused of illegally diverting more than $80 million from Hollinger and its shareholders during Hollinger's $2.1 billion sale of several hundred Canadian newspapers. Two years ago, Boultbee joined Black, former legal executive Mark Kipnis, and former VP Peter Atkinson in pleading not guilty to fraud charges. A fifth defendant, former Hollinger President David Radler, pleaded guilty to the charges and agreed to testify for the government. |
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