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Legal news from Wednesday, February 2, 2005 |
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BREAKING NEWS ~ Bush backs marriage amendment again in State of the Union
Bernard Hibbitts on February 2, 2005 9:37 PM ET

[JURIST] Little more than two weeks after telling the Washington Post that he would not press the Senate to pass a constitutional amendment to ban same-sex marriage, President Bush has publicly reversed course in tonight's State of the Union Address: Because marriage is a sacred institution and the foundation of society, it should not be re-defined by activist judges. For the good of families, children, and society, I support a constitutional amendment to protect the institution of marriage. Conservative and Christian groups whose members powered Bush's victory in November had quickly expressed disappointment [Washington Post report] in the President's remarks to the Post and had pressed him to take a stronger stand [Financial Times report]. GOP Senators said last week they would reintroduce a Marriage Protection Amendment [JURIST report], which failed in the last Congress.
Here are some other law-related excerpts from the Address. On tort reform:To make our economy stronger and more competitive, America must reward, not punish, the efforts and dreams of entrepreneurs. Small business is the path of advancement, especially for women and minorities, so we must free small businesses from needless regulation and protect honest job-creators from junk lawsuits. Justice is distorted, and our economy is held back, by irresponsible class actions and frivolous asbestos claims - and I urge Congress to pass legal reforms this year. On reform of the tax code:Year after year, Americans are burdened by an archaic, incoherent federal tax code. I have appointed a bipartisan panel to examine the tax code from top to bottom. And when their recommendations are delivered, you and I will work together to give this Nation a tax code that is pro-growth, easy to understand, and fair to all. On immigration:America's immigration system is also outdated - unsuited to the needs of our economy and to the values of our country. We should not be content with laws that punish hardworking people who want only to provide for their families, and deny businesses willing workers, and invite chaos at our border. It is time for an immigration policy that permits temporary guest workers to fill jobs Americans will not take, that rejects amnesty, that tells us who is entering and leaving our country, and that closes the border to drug dealers and terrorists. On judicial nominations:Because courts must always deliver impartial justice, judges have a duty to faithfully interpret the law, not legislate from the bench. As President, I have a constitutional responsibility to nominate men and women who understand the role of courts in our democracy, and are well qualified to serve on the bench - and I have done so. The Constitution also gives the Senate a responsibility: Every judicial nominee deserves an up-or-down vote. On DNA evidence and wrongful convictions:Because one of the main sources of our national unity is our belief in equal justice, we need to make sure Americans of all races and backgrounds have confidence in the system that provides justice. In America we must make doubly sure no person is held to account for a crime he or she did not commit - so we are dramatically expanding the use of DNA evidence to prevent wrongful conviction. Soon I will send to Congress a proposal to fund special training for defense counsel in capital cases, because people on trial for their lives must have competent lawyers by their side. On the Iraqi elections:We will succeed because the Iraqi people value their own liberty - as they showed the world last Sunday. Across Iraq, often at great risk, millions of citizens went to the polls and elected 275 men and women to represent them in a new Transitional National Assembly. A young woman in Baghdad told of waking to the sound of mortar fire on election day, and wondering if it might be too dangerous to vote. She said, "hearing those explosions, it occurred to me - the insurgents are weak, they are afraid of democracy, they are losing. ... So I got my husband, and I got my parents, and we all came out and voted together." Americans recognize that spirit of liberty, because we share it. In any nation, casting your vote is an act of civic responsibility; for millions of Iraqis, it was also an act of personal courage, and they have earned the respect of us all.
One of Iraq's leading democracy and human rights advocates is Safia Taleb al-Suhail. She says of her country, "we were occupied for 35 years by Saddam Hussein. That was the real occupation. ... Thank you to the American people who paid the cost ... but most of all to the soldiers." Eleven years ago, Safia's father was assassinated by Saddam's intelligence service. Three days ago in Baghdad, Safia was finally able to vote for the leaders of her country - and we are honored that she is with us tonight. The President is still speaking; the Los Angeles Times has a copy of his prepared text.
10:50 PM ET - The White House has now posted the official version of the President's 2005 State of the Union Address.


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Corporations and securities brief ~ Putnam faces $100 million payout
Amit Patel on February 2, 2005 2:22 PM ET

[JURIST] Leading Wednesday's corporations and securities law news, Putnam Investments [corporate website], the eighth-largest US mutual fund company, may have to increase the restitution it had agreed to pay investors as part of the massive securities fraud at the company. As part of an agreement with the SEC [official website] and Massachusetts Secretary of the Commonwealth William Galvin [official website], the firm had agreed to pay more than $10 million in restitution and also allowed an independent consultant to determine the extent of the improper trades. The consultant is now reporting that Putnam may have cost clients more than $100 million, or 10 times as initially believed. Putnam will not comment until the consultant has finished his work. Read the SEC press release about the settlement. Secretary Galvin has more on the Putnam settlement. Reuters has more.
In other news... - Connecticut's Resources Recovery Authority [official website] has recovered more than $111 million, half of what it lost in a failed energy deal with Enron in 2001. State Attorney General Richard Blumenthal [official website] said he is working on recovering the rest of the losses. Read the Blumenthal press release. AP has more.
- As previously reported on JURIST's Paper Chase, the New York Stock Exchange [market website] released a previously confidential report Wednesday that provides details of former Chairman Richard Grasso's [wikipedia profile] compensation package. Last week, New York Supreme Court Justice Charles Ramos ruled [opinion, PDF] that the so-called Webb report was not subject to attorney-client privilege, and the NYSE released the report to avoid "almost endless litigation with regard to its confidentiality." New York Attorney General Eliot Spitzer [official website] is suing Grasso and the former chairman of the NYSE's compensation committee [complaint, PDF] over the compensation. AP has more.
- Bradford Bleidt, a businessman accused of stealing millions of dollars from over 140 investors, was found competent to stand trial on mail fraud charges. Bleidt also faces an SEC civil complaint [SEC litigation release]. AP has more.
- Pension Benefit Guaranty Corp. [official website], the US government's pension insurer, announced it has taken over the pensions of US Airways' [corporate website] machinists and flight attendants at a cost of $2.3 billion. Read the Pension Benefit Guaranty press release. The Street.com has more.
- Tower Automotive [corporate website], a Michigan-based vehicle parts maker, has filed for Chapter 11 protection citing the squeeze on parts suppliers caused by high costs and a stagnant car market. Read the Tower press release. The Financial Times has more.
- Fiat SpA [corporate website] announced it has failed to settle with General Motors Corp. [corporate website] over an option to force GM to buy its auto unit. The failure to reach a settlement raises the possibility of a legal battle. AP has more.
Click for previous corporations and securities law news.


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Thousands turned away from Iraq polls due to lack of ballots
Jeannie Shawl on February 2, 2005 8:30 AM ET

[JURIST] Iraqi interim President Ghazi al-Yawer [BBC profile] has said that tens of thousands of would-be voters were unable to vote in the Iraqi elections [JURIST hot topic] because several polling places, including those in Baghdad, Basra and Najaf ran out of ballots. Abdul-Hussein al-Hendawi, head of the Independent Electoral Commission of Iraq, said that the "The elections took place under difficult conditions, and this undoubtedly deprived a number of citizens in a number of areas from voting." The IECI has established a complaints process [IECI factsheet]. AP has more.
Meanwhile, Abdul Aziz al-Hakim, head of the Shia coalition, has said that his group has won "a sweeping victory" in Sunday's elections, but hasn't provided evidence of his claim. Hakim said his coalition would include minority groups, including Sunni Arabs, when the parliament begins writing a new constitution for Iraq. The Guardian has more.
9:32 AM ET - The Sunni Association of Muslim Clerics [RFE/RL backgrounder], which had previously called on Iraq's Sunni population to boycott the January 30 election, issued a statement Wednesday saying that the poll lacked legitimacy as large numbers of Sunnis did not vote. The clerics said that the new assembly therefore lacked any mandate to create a permanent Iraqi constitution. AP has more.


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Legal agenda and live webcasts ~ Wednesday, Feb. 2
Chris Buell on February 2, 2005 6:00 AM ET

[JURIST] Here's a run-down of law-related events, expected developments and live webcasts on JURIST's docket for Wednesday, Feb. 2.
President Bush will deliver his 2005 State of the Union address [White House website] tonight at 9 PM ET, followed by a response by Democratic leaders Rep. Nancy Pelosi and Sen. Harry Reid. AP has a preview of the speech. A live webcast is available via C-SPAN.
On Capitol Hill, the US Senate [official website] will convene at 9:30 AM ET today and continue debate on the nomination of Alberto Gonzales for attorney general. Watch a live webcast of proceedings from C-SPAN 2. The US House of Representatives [official website] will convene at 10 AM ET today, with a live webcast available from C-SPAN.
Also today, the Senate Committee on Homeland Security and Government Affairs [official website] will hold confirmation hearings for Homeland Security Secretary nominee Michael Chertoff beginnin at 10 AM, with a live webcast of the hearing available.
Illinois Gov. Rod Blagojevich will deliver a state of the state address today.
European Commission President José Manuel Barroso will hold a press conference today to discuss a commission report on the Lisbon strategy [EU backgrounder]. Watch a live webcast at 2:30 local time [7:30 AM ET].
At the UN, the Security Council's monthly President Joel W. Adechi will hold a briefing on the Council's upcoming work for February. Watch a live webcast of the briefing beginning at 1 PM ET.
At the International Criminal Tribunal for the Former Yugoslavia, proceedings in the trial of Slobodan Milosevic [ICTY case backgrounder] have been cancelled today due to an illness of Milosevic. The trial of Fatmir Limaj and others [ICTY case backgrounder] continues today, with a webcast of the trial scheduled for 2:45 PM local time [8:45 AM ET].


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