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Legal news from Wednesday, February 23, 2005 |
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Environmental brief ~ Canada cattlemen sue US over beef ban
Tom Henry on February 23, 2005 3:40 PM ET

[JURIST] In Wednesday's environmental law news, about 500 Canadian cattlemen, mostly from Alberta, have filed 121 claims under the North American Free Trade Agreement (NAFTA) [text] seeking at least $325 million in compensation for the May 2003 US decision to halt imports of Canadian beef and cattle. NAFTA's Chapter 11 is intended to protect companies from laws that unfairly favor a nation's own businesses. The cattlemen argue that the Canada-US beef market is so integrated that closing the border had no meaningful public-health effect. Rather than close the border, and in order to protect US citizens, the US should have killed all of the Canadian cattle already in the US, a move that would have hurt the financial interests of US ranchers that owned the cattle. The US Department of State [official website] has background on Chapter 11 dispute settlement. The Seattle Times has more.
In other news, - The Japanese Ministry of the Environment [official website] has decided to introduce stricter regulations on diesel vehicle emissions starting in 2009. The regulations on nitrogen oxides (NOx) and particulate matter (PM) will further reduce the levels that will start to take effect this October. The standards will apply to the sale of new trucks and buses over 3.5 tons. The Yomiuri Shimbun has the full story.
- Officials from the California Department of Toxic Substances Control [official website] announced Tuesday that they will require the Pacific Gas & Electric Co. [corporate website] to increase its cleanup efforts of groundwater contamination at a southern California site. The company, at its Topock natural gas compressor station, had disposed of chromium 6 [EPA backgrounder], a carcinogen, into percolation beds between 1951 and 1969. The company has been pumping out the contaminated groundwater, but now must increase its efforts as the contaminate has been found to be nearing the Colorado River. The Los Angeles Times has the full story.
- The EPA [official website] seeks comments on a proposed rule [text] that may change the increments for NO2 established under the Clean Air Act [text] to prevent significant deterioration of air quality (PSD program). Comments can be made here until April 25.


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Former Yukos CEO to testify in court Friday
Jeannie Shawl on February 23, 2005 2:39 PM ET

[JURIST] Former Yukos [corporate website] CEO Mikhail Khodorkovsky [JURIST Hot Topic archive; BBC profile] will testify Friday [Interfax report] in his fraud and tax evasion trial. According to the latest trial update [text] from Khodorkovsky's defense website, the judge presiding over the trial has granted a recess until Friday morning to allow Khodorkovsky and his co-defendant Platon Lebedev more time to prepare for their testimony. In a related development, several prominent Russian writers, actors and academicians have written a letter [text] calling on the international community to recognize Khodorkovsky as a political prisoner. Khodorkovsky's trial has been widely criticized as retribution for the oil tycoon's political ambitions and open criticism of President Vladimir Putin. The group writes: It is clear to us that, regardless of Mikhail Khodorkovsky?s political views, financial condition, or the crimes that he is charged with by the Prosecutor General?s office, this person has the same right to a defense as all the citizens of those countries that are signatories to the European Convention on Human Rights. In the case of Khodorkovsky, this right has not been observed so far.
Based on our observations of the trial proceedings, we have come to the conclusion that there is a political element in the prosecution of Mikhail Khodorkovsky. We appeal to the international human rights community to recognize the obvious fact: Mikhail Khodorkovsky is a political prisoner. AFP has more.


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Corporations and securities brief ~ Fannie Mae faces new accounting troubles
Amit Patel on February 23, 2005 10:45 AM ET

[JURIST] Leading Wednesday's corporations and securities law news, Fannie Mae's federal regulator, Office of Federal Housing Enterprise Oversight (OFHEO) [official website], has found additional problems with the company's accounting practices. The OFHEO has raised concerns with the company's securities and loan accounting, consolidations, accounting for commitments and practices to smooth certain income and expense accounts. Fannie Mae [corporate website] also announced OFHEO has allowed a three month delay in the company's attempt to build a 30% capital surplus. Read the Fannie Mae press release. AP has more.
In other news... - Hershey Foods Corp. [corporate website], the nation's largest candymaker, announced in a regulatory filing with the SEC that it wants to change its name to "The Hershey Co." The Hershey Trust Co. will continue to hold a controlling stake in the company. AP has more.
- According to a broker disclosure form filed with the National Association of Securities Dealers [official website], the SEC may recommend charges against former Bear Stearns [corporate website] broker Mark Hurant for his role in improper mutual-fund trading. CBSMarketWatch has more. In other news, Bear Stearns senior managing director Michael Zackman may face civil charges over his assistance to hedge funds and brokers who were engaging in abusive trading of mutual fund shares. Zackman denies the charges. In total, six former and current Bear Stearns employees are facing civil charges related to trading misconduct. The Street.com has more.
- Medco Health Solutions Inc. [corporate website], one of the nation's largest pharmacy benefits managers, announced it will buy Accredo Health Inc. [corporate website] , a distributor of specialty drugs and services, for about $2.2 billion in cash and stock creating the nation's largest specialty pharmacy business. Read the Accredo Health press release. AP has more.
- A Dell customer is suing the world's largest personal computer maker for pushing consumers into high-interest financing schemes, false advertising and bait-and-switch practices, fraud and deceit in its sales and advertising representations and breach of contract for unilaterally modifying terms and conditions. Dell Inc. [corporate website] had no comment on the suit. CNN has more.
Click for previous corporations and securities law news.


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UK parliament to consider new anti-terror legislation
Jeannie Shawl on February 23, 2005 7:44 AM ET

[JURIST] Britain's House of Commons [official website] will vote Wednesday on legislation that will allow the UK to place terror suspects under house arrest without trial. Under the Prevention on Terrorism Bill [text], which was published Tuesday [JURIST report], terror suspects may be ordered under house arrest by Home Secretary Charles Clarke [official bio], but they are entitled to an automatic judicial review within a week. Despite opposition by Tories and Liberal Democrats, the measure is expected to pass in the Commons, but will face a tougher battle in the House of Lords [official website]. The opposition parties say that the "control orders" authorized by the new bill will be imposed on the authorization of the home secretary, not a judge, with an increased potential for miscarriages of justice. BBC News has more. Responding to the proposed legislation, Amnesty International [advocacy website] said that the proposed legislation "makes a mockery of human rights and the rule of law and contravenes the spirit, if not the letter, of the December 2004 Law Lords' judgment." A nine-judge panel of the House of Lords ruled in December [PDF decision text; JURIST report] that the indefinite detention of foreign terror suspects without charge violates the UK Human Rights Act. Amnesty also said that "The introduction of "house arrest" without charge or trial requires derogations from the European Convention on Human Rights (ECHR) [PDF text] and the International Convention on Civil and Political Rights (ICCPR) [text]." Read Amnesty's press release.


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Legal agenda and live webcasts ~ Wednesday, Feb. 23
Chris Buell on February 23, 2005 12:01 AM ET

[JURIST] Here's a run-down of law-related events, expected developments and live webcasts on JURIST's docket for Wednesday, Feb. 23.
The US Supreme Court [official website] is scheduled to hear oral arguments in two cases beginning at 10 AM ET today. In the first case, Orff v. United States [case backgrounder from Duke Law School], 03-1566, the Court will review a circuit split on whether farmers are intended or incidental beneficiaries of irrigation district contracts with the US Bureau of Reclamation. The ABA has merit briefs in the case. The Court will then hear arguments in Exxon Mobil v. Saudi Basic Industries, 03-1696, in which the Court will decide whether the Rooker-Feldman doctrine can be broadly applied to deny federal courts jurisdiction when simultaneous state court proceedings present identical issues. The ABA has merit briefs in the case.
The US Senate and US House [official websites] are in recess this week. Both will resume their sessions on Feb. 28.
The US Election Assistance Commission [official website] is holding a public meeting [agenda, PDF] at 10 AM ET and a public hearing [agenda, PDF] at 1 PM ET today. Watch a live webcast of proceedings.
The European Parliament [official website] continues its plenary session today, with a session beginning at 9 AM local time [3 AM ET]. Read an agenda [text], and watch a live webcast of today's session.
At the International Criminal Tribunal for the Former Yugoslavia, the trial of Slobodan Milosevic [ICTY case backgrounder] continues today. Watch a webcast of proceedings beginning at 9:30 AM local time [3:30 AM ET].


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