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Legal news from Tuesday, October 19, 2004




NY appeals court: Basis for tobacco suit faulty
Russell Adkins on October 19, 2004 8:50 PM ET

A unanimous New York State Court of Appeals ruled Tuesday that insurers may not sue tobacco companies for deceptive practices to recover damages for smoking-related health care payments. The court held that the injured party must actually bring the suit, not a third-party payor like an insurance company. The present case was brought by Empire Blue Cross and Blue Shield, and had resulted in a $17.8 million jury verdict in federal court against the tobacco industry. Tuesday's ruling removes the basis for the suit, putting in danger the original award and others like it won by Empire. Read the opinion [PDF]. AP has the more.




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Environmental brief ~ Newmont officials still detained in Indonesia despite new study
Tom Henry on October 19, 2004 8:20 PM ET

In Tuesday's environmental law news, the Indonesia Ministry of Environment released a study on Monday that again exonerated the Newmont Mining Corporation of charges that they polluted the Buyat Bay. This ongoing story, most recently reported in JURIST's Paper Chase here, is pitting the Indonesia police forces, who currently have five Newmont officials detained, against scientific studies first completed by the WHO and now by their own government. It is not known when or if the Newmont officials will be released. The Washington Post has more.... In other news, to ensure that water quality is in accordance with the Clean Water Act[PDF] around Columbus OH, the USDA has announced the Ohio Scioto River Watershed Conservation Reserve Enhancement Program (CREP), a $207 million federal-state initiative. The program will pay qualifying farmers in a 70,000 acre area of the Scioto River watershed to change their land from cropland to native grasses, tress and vegetation for 14 or 15 years. Payments are made through the Conservation Reserve Program (CRP) as authorized by the Food Security Act of 1985 (as amended). The change is expected to improve public drinking water, restore wetlands, and increase wildlife habitat and numbers in the area. The USDA press release is here. Background on the program can be found here.... The US Fish and Wildlife Service seeks comments regarding an economic analysis of a proposed rule[PDF] to designate about 5800 acres off the coast of Los Angeles CA as critical habitat for the Riverside fairy shrimp (Streptocephalus woottoni), under the auspices of the Endangered Species Act. Comments will be accepted until November 18 and can be made here.




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UPDATE ~ Federal judge rules for Dems in provisional ballot dispute
Russell Adkins on October 19, 2004 7:40 PM ET

Updating an earlier report in JURIST's Paper Chase, a federal judge ruled Tuesday that ballots cast in the correct city or township but wrong voting precinct in Michigan must be counted, overruling a state decision to only count provisional ballots cast in the proper district. Michigan's Republican Secretary of State and the US Justice Department had opposed the policy enunciated in the decision, claiming that it invites confusion and fraud while overburdening elections officials. Michigan Democrats hailed the ruling as a victory for voters' rights, saying that it prevents the disenfranchisement of thousands of voters. AP has more on the decision, and reports on the possibility that provisional ballots will replace hanging chads of 2000 as a flashpoint in the Nov. 2 election. Read Judge David Lawson's opinion [PDF]. The state is expected to appeal.




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Corporations and securities brief ~ Parmalat investors file lawsuit to recover losses
Amit Patel on October 19, 2004 4:58 PM ET

In Tuesday's corporations and securities law news, Hermes Focus Asset Management Europe Ltd. has joined four other bond funds to sue former executives, auditors and lenders of dairy giant Parmalat. The suit seeks to recover billions of dollars investors lost after the company collapsed into bankruptcy last year. Bloomberg has more.

In other news, the SEC is investigating the accounting of pension and health care plans at US automotive giants General Motors and Ford Motor Co. The announcement came a day after SEC requested similar documentation from automotive supplier Delphi. AP has more.... As previously reported on JURIST's Paper Chase, the European Commission announced Tuesday that it has reached a settlement with Coca-Cola over an anti-trust probe into the company's practices in Europe. The commitment decision [PDF], which is similar to a US consent decree, is binding on Coca-Cola. The Commission has a press release here. Read the Coca-Cola press release here. AFP has more.... The SEC is probing the Chicago office of Bear Stearns & Co. Inc. into how the company won contracts to underwrite billions of dollars in municipal bonds. AP has more.... As previously reported on JURIST's Paper Chase, Martha Stewart's attorneys plan to file an appeal in her insider trading conviction on Wednesday arguing Stewart's Sixth Amendment right to confront a witness was violated during her trial. Read the indictment against Stewart here [PDF]. JURIST's Paper Chase has ongoing coverage of the Martha Stewart case. CNN has more.... The conspiracy and fraud trial of former Merrill Lynch & Co. and Enron executives indicted in the Nigerian barge deal between the companies was delayed due the judge's illness. The trial is expected to resume on Wednesday. AP has more.... As previously reported on JURIST's Paper Chase, US District Judge Karon O. Bowdre agreed to unseal documents in the criminal case of former HealthSouth CEO Richard Scrushy [PDF]. AP has more.... As previously reported on JURIST's Paper Chase, US District Judge Barbara Jones Tuesday delayed the start of former WorldCom CEO Bernard Ebbers' trial until January. Read the order here [PDF]. Reuters has more.

  • click for previous corporations and securities law news




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    French Sikhs go to court over religious symbol ban
    Amit Patel on October 19, 2004 4:35 PM ET

    Three Sikh students in France who refused to remove their turbans under the country's new law banning religious signs and apparel in schools have brought the first case to take the issue to court. The Sikh community asked an administrative court Tuesday to re-admit the students back into classes or force their school to convene a disciplinary council to break the deadlock over the turbans. French Education Minister Francois Fillon said there are still 70 cases of students defying the law — mainly involving girls refusing to remove their Islamic headscarves. The law intended to uphold France's constitutionally guaranteed principle of secularism is mainly focused on Muslim girls who wear headscarves to school. France's small Sikh community was all but forgotten during the debate over the law. The court is expected to reach a decision on Wednesday. For background on the headscarf ban, see this legislative dossier from the French Senate. The Sikhnetwork has more information on the ban's effects on Sikhs here. AP has more.




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    Stewart appeal to assert violation of 6th Amendment
    Amit Patel on October 19, 2004 4:12 PM ET

    Martha Stewart's attorneys plan to file an appeal in her insider trading conviction on Wednesday arguing Stewart's Sixth Amendment right to confront a witness was violated during her trial. Stewart's attorneys were unable to cross-examine Peter Bacanovic, Stewart's former stockbroker and co-defendant, after a damaging audiotape interview with him was played during the proceeding. Bacanovic never took the stand. The basis of the appeal is the US Supreme Court ruling in Crawford vs. Washington [PDF] which was decided three days after Stewart convicted. Crawford held that tape-recorded statements from a witness the accused could not cross-examine could not be used, indicating that was a violation of the Confrontation Clause of the Sixth Amendment. According to sources, Stewart's appellate brief will also detail three other complaints about the prosecution:

    • The government charged its own ink expert, Larry Stewart [PDF], with perjury in his testimony against Martha Stewart;
    • A juror may have lied and withheld information about his background on his jury questionnaire;
    • The jury was never informed that Stewart had not been charged with illegal insider trading.
    Read the indictment against Stewart and Bacanovic here [PDF]. JURIST's Paper Chase has ongoing coverage of the Martha Stewart case. CNN has more on Stewart's appeal.




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    Federal judge unseals documents in Scrushy case
    Amit Patel on October 19, 2004 4:03 PM ET

    US District Judge Karon O. Bowdre has agreed to unseal documents in the criminal case of former HealthSouth CEO Richard Scrushy. The Associated Press and four other news organizations sought descriptions of three dozen sealed documents in addition to preventing future documents from being sealed from public view without explanation. Bowdre, however, ruled that information regarding Scrushy's personal assets should remain private and also rejected the media's request that would have required both prosecutors and the defense to file motions describing the substance of documents they want kept from public view. Bowdre said she weighed Scrushy's right to a fair trial against the public's right to know about everything going on in the case. Read the indictment against Richard Scrushy here [PDF]. AP has more.




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    Justice Department asks Michigan judge to dismiss provisional ballot case
    Amit Patel on October 19, 2004 3:33 PM ET

    The US Justice Department, in a friend-of-the-court brief, has asked a federal judge in Michigan to dismiss a lawsuit that would have required the state to count provisional ballots cast by voters who go to the wrong polling precinct. The Justice Department argues that the Help America Vote Act does not allow individuals to sue if they believe the state has violated the act, but rather invites them to go through a state administrative complaint process or ask a US attorney to file suit. The suit, which was brought by the Michigan Democrats, seeks to rescind instructions to local election officials from Republican Secretary of State Terri Lynn Land that they are not to count provisional ballots cast by voters who are shown to have voted at the wrong precinct. The Florida Supreme Court upheld a similar statutory provision [PDF] Monday. Read Michigan's plan under the Help America Vote Act here [PDF]. AP has more.




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    Massachusetts AG upholds order to collect racial profiling data
    Amit Patel on October 19, 2004 3:09 PM ET

    Massachusetts Attorney General Tom Reilly has upheld an order by Secretary of Public Safety Edward Flynn that will force 128 cities and towns in the state to collect traffic stop data to determine if local police departments are engaging in racial profiling. Flynn issued the order following a legislatively-commissioned report [PDF] from Northeastern University's Institute on Race and Justice which analyzed traffic citations, warnings and search data for the state's 366 law enforcement agencies. Based on the report, Flynn ordered 249 cities and towns to collect data for a year. Of these cities, 130 appealed to the attorney general. Reilly indicated that the decision in no way leads to the conclusion that these law enforcement agencies have engaged in racial profiling. Read the Massachusetts Attorney General's press release here. The Attorney General also has copies of letters sent to the appealing police departments here. AP has more.




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    Spanish police: arrested terrorists suspected of targeting National Court
    Chris Buell on October 19, 2004 1:24 PM ET

    Spanish police have broken up an alleged terrorist cell suspected of plotting a major attack on the country's National Court. Police arrested eight suspects throughout the country Monday and Tuesday, according to Spanish Interior Minister Jose Antonio Alonso. Spain's El Mundo reported that the suspects were planning to park a explosives-laden truck in front of the court in downtown Madrid. The arrests were ordered by leading terrorism judge Baltasar Garzon, who sits on the National Court. Garzon has indicted 41 people on terror charges, including Osama bin Laden and other al-Qaida figures. El Mundo has coverage from Spain (in Spanish). AP has more.




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    Pakistan set to adopt stricter law on religious terrorism
    Chris Buell on October 19, 2004 12:48 PM ET

    Pakistan has approved a stricter law on religion-related terrorism, including sentences increased to life in prison for convictions of such offenses. The new law, which amends the Anti-Terrorism Act of 1997, also gives authorities greater power in halting attacks, allowing the seizure of passports of those suspected of religious terrorism. Pakistan's lower house of parliament approved the bill Monday, and it is expected to pass the upper house with little trouble. The stricter regulations come as a response to increased violence between Sunni and Shi'ite Muslim extremists. Opposition party members were not present during the vote, as many were participating in a walkout protest over new law that allows President Musharraf to remain in his dual role as head of the military. Depaul Law School has more on Pakistan's anti-terror regulations [PDF]. From Pakistan, the Daily Times has local coverage. VOA News has more.




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    Federal appeals court keeps Nader off Ohio ballot
    Jeannie Shawl on October 19, 2004 11:26 AM ET

    The Sixth US Circuit Court of Appeals has refused to issue an emergency injunction blocking a lower court's order removing Nader from Ohio's ballot, saying that Nader could not demonstrate a likelihood of success on the merits of the case. Nader had appealed US District Judge Edmund Sargus' decision to remove Nader from the Ohio ballot because of fraud by signature collectors. The Sixth Circuit also denied Nader's request for an expedited appeal. AP has more. JURIST's Paper Chase has extended coverage of Nader's legal efforts to gain ballot access.




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    Trial delayed for former WorldCom CEO
    Jeannie Shawl on October 19, 2004 11:08 AM ET

    US District Judge Barbara Jones Tuesday delayed the start of former WorldCom CEO Bernard Ebbers' trial until January. Jones also denied a defense motion for a change of venue. Read the order [PDF]. Ebbers faces fraud and conspiracy charges in connection with WorldCom's collapse, the largest bankruptcy in US history. AP has more.

    Previously on JURIST's Paper Chase...





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    Torture widespread in Uganda, report says
    Jeannie Shawl on October 19, 2004 10:49 AM ET

    According to the annual report of the Uganda Human Rights Commission, Uganda's security agencies regularly use torture in their operations. The report lists torture as the second highest violated human right (deprivation of personal liberty is the most violated right), and says that torture "is either presented as part of training, or a learned practice." On behalf of the UHRC, Nathan Byamukama has called for Uganda's constitution to be amended so that it is consistent with international human rights legislation. Listen to Byamukama's interview on BBC's Focus on Africa program here. BBC News has more. The UHRC report (not currently available online) contains allegations similar to those made by a recent Human Rights Watch report, available here.




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    EU reaches settlement with Coca-Cola over antitrust probe
    Jeannie Shawl on October 19, 2004 10:24 AM ET

    The European Commission announced Tuesday that it has reached a settlement with Coca-Cola over an anti-trust probe into the company's practices in Europe. Under the proposed "commitment decision," Coca-Cola has agreed not to enter into exclusivity arrangements, not to offer target and growth rebates, not to use its strongest brands to sell less popular products and to offer 20% of space in coolers provided by Coca-Cola for products of the retailer's choice. The commitment decision [PDF], which is similar to a US consent decree, is binding on Coca-Cola. The binding voluntary commitments are a new device authorized by the new Antitrust Regulation [PDF - See Article 9], which entered into force in May. The Commission has this press release and Bloomberg has more.




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    International brief ~ Shining Path leader receives date for retrial
    D. Wes Rist on October 19, 2004 10:20 AM ET

    Abimael Guzman - Courtesy of AP
    Peru has announced November 5 as the retrial date for Shining Path leader Abimael Guzman. Guzman was convicted in 1992 of inciting and leading a Maoist insurgency that resulted in the deaths of over 69,000 people. The original convictions were made under the strict anti-terror laws imposed by former Peruvian President Alberto Fujimori, but following the collapse of his government in 2000 the laws were repealed. A court ruled Guzman's trial in a military tribunal unconstitutional last year and ordered a retrial. Reuters has more.... The trial of members of the South African pro-apartheid revolutionary group Boeremag may be delayed yet again due to a conflict over the imprisonment of the accused. The South African government is currently planning to move the inmates from individual cells back to communal cells. Defense attorney Piet Pistorius said that the move would endanger his clients, as they have received numerous death threats from the general inmate population. Pistorius told the presiding judge that he would be meeting with the Correctional Service's attorney Tuesday to try and avert an actual delay. South Africa's Independent Online has more.... A meeting of the interior ministers of France, Germany, Spain, Great Britain, and Italy ended Monday with agreement on a new plan for digital biometric passports from 2006 on and division over Italy and Germany's plan to establish refugee processing centers in Northern Africa. The ministers quickly agreed on the inclusion of digital fingerprint and facial identification in EU passports, calling the measure a big step towards enhancing the security of the EU. The refugee camps however, quickly divided the group. France and Spain rejected the idea wholesale, stating concern over possible human rights and humanitarian law violations. France's Interior Minister Dominique de Villepin (official site in French) said that the EU should not be leading the way on this, but should rather work with the UN High Commissioner for Refugees and international NGOs. The International Herald Tribune has more.... President Bush signed the North Korean Human Rights Act of 2004 on Monday, ensuring financial support for human rights groups in North Korea. The act designates $24 million to be used to support human rights groups operating within the territory of North Korea, as well as making asylum available for any North Korean that requests it on US territory. Previously, North Korean refugees had been considered South Korean, as the southern nation still claims sovereignty over the entire peninsula, preventing any claims for political asylum. The Act also establishes a special envoy whose job will be to monitor the human rights situation in North Korea. The North Korean government has called the Act an attempt by the US to overthrow the current government. South Korea's Chosun Ilbo has more. Read the official White House press release here.



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    Georgia high court hears same-sex marriage referendum case
    Jeannie Shawl on October 19, 2004 9:49 AM ET

    The Georgia Supreme Court hears arguments Tuesday morning on whether a referendum on same-sex marriage should be allowed on state ballots in the upcoming election. Challengers to the proposed state constitutional amendment argue that the referendum is presented in an deceitful manner - the text of the referendum refers only to a ban on same-sex marriage but the amendment itself could also prohibit same-sex legal unions and domestic partnership benefits. Read the proposed text of the referendum and the actual amendment here (scroll down). The ACLU of Georgia has posted its brief [PDF] appealing the case the state supreme court and other case documents. From Atlanta, WXIA-TV has more.

    Previously on JURIST's Paper Chase...





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    Lawsuit challenging NJ electronic voting to be filed
    Jeannie Shawl on October 19, 2004 8:59 AM ET

    A group of private citizens and local elected officials plan to file a lawsuit in New Jersey Tuesday seeking to block the use of electronic voting machines in the state. The complaint will argue that the machines used in New Jersey provide no method for verifying that they are recording votes properly and are too susceptible to manipulation. Efforts in other states to stop the use of electronic voting machines has thus far been unsuccessful. Maryland's Court of Appeals rejected a challenge to the use of electronic voting (JURIST"s Paper Chase has background on the Maryland suit); a federal court in Florida will hold hearings this week on the constitutionality of electronic voting (Paper Chase has background on the Florida suit). Tuesday's New York Times has more.




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    Annan urges legal reforms in Cote d'Ivoire
    Jeannie Shawl on October 19, 2004 8:27 AM ET

    UN Secretary-General Kofi Annan has called for constitutional reform and disarmament in Cote d'Ivoire, urging "full and unconditional implementation" with the Linas-Marcoussis and Accra III Agreements. Under the Accra III Agreement, President Laurent Gbagbo (BBC News profile) committed to adopt several legislative reforms, including revision of Article 35 of the Constitution, which deals with eligibility to the Presidency. Annan's statement, follows Gbagbo's efforts on disarmament. Rebels in Cote d'Ivoire are refusing to lay down their weapons until legal reforms have been made. BBC News has more on Gbagbo's call for disarmament and background on the crisis. The UN Operation in Cote d'Ivoire has more on the UN's involvement in the country.




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    Legal agenda and live webcasts ~ Tuesday, October 19
    Jeannie Shawl on October 19, 2004 7:10 AM ET

    Here's a run-down of law-related events, expected developments and live webcasts on JURIST's docket for Tuesday, October 19.

    Today is the deadline for voter registration in Connecticut.... Michael White, Director of Legal Affairs and Policy at the National Archives will speak about the electoral college at 10 AM ET. Watch a live webcast (via C-SPAN).... The American Enterprise Institute will hold a forum on the increasing importance of absentee ballot voting. Watch a live webcast at 2 PM ET (via C-SPAN).

    The US House and Senate are in recess until Tuesday, November 16.

    The UN Security Council will meet at 10 AM ET to hear the report of the Secretary-General on the situation in the Middle East. AP has more. The Security Council will then hold an open debate on threats to international peace and security caused by terrorist acts. Watch a live webcast.

    The trial of former Yugoslav President Slobodan Milosevic continues at 9 AM local time today at the International Criminal Tribunal for the Former Yugoslavia at The Hague. Watch a webcast beginning at 9:30 AM local time (3:30 AM ET); for witness protection, the webcast is on a 30-minute tape delay. The ICTY has background on the case.... Also today at the ICTY, the trial of Momcilo Krajisnik continues. Watch a webcast beginning at 2:45 PM local time (8:45 AM ET); for witness protection, the webcast is on a 30-minute tape delay. The ICTY has case information.




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    BREAKING NEWS ~ UK court charges Abu Hamza on 16 counts
    Bernard Hibbitts on October 19, 2004 7:07 AM ET

    The BBC is reporting that a British court has charged radical Muslim cleric Abu Hamza al-Masri (BBC profile), arrested last May by UK police on a US extradition warrant, on 16 criminal counts including soliciting murder and possession of a terrorist document. The local charges would appear to put the US extradition bid on hold.




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    BREAKING NEWS ~ Myanmar's prime minister ousted
    Maryam Shad on October 19, 2004 6:08 AM ET

    According to the BBC, conservative elements in Myanmar's military junta have removed Prime Minister Khin Nyunt from his position and placed him under house arrest. BBC News has more.




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    For more legal news check the Paper Chase Archive...


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