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Legal news from Tuesday, March 22, 2005 |
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Supreme Court rules handcuffs during search no violation of Fourth Amendment
Matt Lubniewski on March 22, 2005 12:47 PM ET

[JURIST] The US Supreme Court ruled in three cases Tuesday, all on appeal from the Ninth Circuit. In Muehler v. Mena [case backgrounder from Duke Law School] the Court ruled unanimously that police did not violate the Fourth Amendment rights of a suspect when they detained her in handcuffs while searching a house for a wanted gang member. Overturning the appeals court, the high court held that the actions of the officers were consistent with the Court's 1961 ruling in Michigan v. Summers [FindLaw text] in which the Court held that officers executing a search warrant for contraband have the authority to detain the occupants of the premises while a proper search is conducted. Chief Justice Rehnquist, writing for the Court, stated that "this was no ordinary search. The governmental interests in not only detaining, but using handcuffs, are at their maximum when, as here, a warrant authorizes a search for weapons and a wanted gang member resides on the premises. In such inherently dangerous situations, the use of handcuffs minimizes the risk of harm to both officers and occupants." Review the syllabus, opinion, and two concurrences [Cornell LII].
In another case decided on Tuesday, the Court held that a ham radio operator may not collect certain damages and fees in a dispute he won regarding the construction of a wireless tower. In City of Rancho Palos Verdes v. Abrams [case backgrounder from Duke Law School], the Court unanimously reversed a Ninth Circuit ruling which had held that Abrams was able to collect attorney's fees and damages under 42 U.S.C. § 1983, since the Telecommunications Act did not provide a comprehensive remedial scheme. Justice Antonin Scalia, writing for the Court, stated that "the TCAby providing a judicial remedy different from §1983 in §332(c)(7) itselfprecluded resort to §1983." Review the syllabus, opinion, and two concurrences [Cornell LII].
In its third reversal of the Ninth Circuit Tuesday, the Court held that a jury which recommended a death sentence for a convicted killer properly considered evidence of his religious conversion. In Brown v. Payton [case backgrounder from Duke Law School], the Court in a 5-3 ruling reversed the Ninth Circuit's decision to order a new trial. Justice Anthony Kennedy, writing for the Court, stated, "Testimony about a religious conversion spanning one year and nine months may well have been considered altogether insignificant in light of the brutality of the crimes, the prior offenses, and a proclivity for committing violent acts against women." In his dissent, Justice David H. Souter argued that Payton deserved a new trial due to the prosecutor's misstatements about the nature of mitigating factors. "The trial judge utterly failed to correct these repeated misstatements or in any other way to honor his duty to give the jury an accurate definition of legitimate mitigation," wrote Justice Souter. Review the syllabus, opinion, two concurrences and dissent [Cornell LII]. Chief Justice Rehnquist did not take part in the case, which was heard in November while he was being treated for thyroid cancer.


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Corporations and securities brief ~ AIG fires execs for not cooperating with probe
Amit Patel on March 22, 2005 11:30 AM ET

[JURIST]Leading Tuesday's corporations and securities law news, the Wall Street Journal is reporting [subscription req'd] American International Group Inc. (AIG) [corporate website] has fired CFO Howard I. Smith and a vice president Christian M. Milton after the executives indicated they would invoke the Fifth Amendment [text] with regulators over the probe AIG manipulated its books. Both Smith and Milton were allegedly involved in the transaction involving General Re Corp. [corporate website] which is under scrutiny by regulators. The probe by New York Attorney General Eliot Spitzer [official website], the SEC and federal prosecutors involves a complex reinsurance deal, which may have been used to manipulate AIG's books. In late 2000 and early 2001, AIG reportedly booked $500 million in premium revenue from General Re and followed by adding $500 million in reserves to its balance sheet. AP has more.
In other news... - UK Home Secretary Charles Clarke [official website] was given more time by a court in London to consider a US request to extradite three former bankers of Royal Bank of Scotland Group Plc's Greenwich NatWest unit [corporate website] to stand trial on charges they used an Enron [corporate website; JURIST Hot Topic news archive] off- the-books partnership to defraud Royal Bank of $7.3 million. A UK court had ruled in October that the three bankers could be extradited but the bankers claim they should be tried in the UK, asking for a separate judicial review in their case. This is the third delay Secretary Clarke has received. Read the indictment against the three bankers [PDF]. Bloomberg has more and the Houston Chronicle has continuing coverage of the Enron trials.
- The National Association of Securities Dealers (NASD) [corporate website] announced it has fined Spear Leeds & Kellogg, recently acquired by Goldman Sachs Execution & Clearing [corporate website], $1 million for concealing sales of IPOs from the Depository Trust Corp. Spear Leeds did not deny or admit any responsibility. Read the NASD press release. AFX has more.
- Delphi Corp. [corporate website], the world's largest auto supplier, announced it has completed an internal probe into accounting errors at the company. Delphi has stated that it overstated its cash flow by $200 million in 2000 and overstated its pretax income by $61 million in 2001. The full results of the probe will be reported when the company restates its earnings which will be done by June 30. Read the Delphi press release. AP has more.
- GE Capital unit announced it has withdrawn a $2 billion loan facility for General Motors (GM) [corporate website] and its suppliers. GM will now have to provide its own early payment service to its suppliers. Reuters has more.
- Oracle Corp. [corporate website] won its bid to buy retail software maker Retek Inc. [corporate website] for about $670 million. Oracle beat out German rival SAP AG [corporate website] for Retek. Read the Oracle press release and the Retek press release. AP has more.
- IBM [corporate website] and Compuware Corp. [corporate website] announced they have settled the lawsuit brought by Compuware which accused IBM of predatory pricing and antitrust violations. Under the settlement, IBM will license $140 million of Compuware software over the next four years and will offer to buy $260 million of Compuware services over the same period. Read the Compuware press release. Read the IBM press release. Reuters has more.
Click for previous corporations and securities law news.


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International brief ~ UN report calls for Germany to ban racist political parties
D. Wes Rist on March 22, 2005 11:28 AM ET

[JURIST] In Tuesday's international brief, a report submitted to the UN Human Rights Commission [official website] by UN Special Rapporteur Doudou Diene has called on Germany and the EU to increase efforts to ban political groups based on racist, xenophobic, or hate policies. Diene cited the recent increase in popular support in Germany for extremist political parties like the National Democratic Party [official website in German], which advocates racial supremacy. The EU had already been engaged in a debate on neo-Nazi paraphenalia and symbols but recently dropped a proposal for a ban on Nazi symbols after members states could not agree on the exact symbols to be banned [JURIST report]. Concern has been expressed that bans on symbols and political parties would represent infringments on rights to expression and association guaranteed by the European Convention on Human Rights [official text]. Deutsche-Welle has local coverage.
In other international legal news ... - In a report released Monday, US-based NGO Human Rights Watch [advocacy website] said that Zimbabwe [government website] has failed to meet guidelines set to ensure free and fair elections in the nation's upcoming March 31 natioanl poll. HRW alleged that Zimbabwe has not met the guidelines set out by the South African Development Community [official electoral website] to ensure the validity of the upcoming elections, and challenged the regional organization to take notice of all the activity leading up to the vote, not just the government's presence in the week prior. HRW details specific instances of intimidation and persecution of opposition groups by the government and the ruling Zanu PF [official website] political party. HRW also alleged that the newly established Zimbabwe Electoral Commission was neither independent nor impartial. HRW concluded that the events that already occurred in Zimbabwe create a significant likelihood that the March 31 elections will not be free and fair. Read HRW's official report. ZimOnline has local coverage.
- The Royal Government of Nepal [official website] issued a diplomatic note to foreign missions in Nepal Monday, asking them to abide by the terms and limits of the Vienna Convention on Diplomatic Relations [official text]. The note, sent to all foreign missions in Nepal, including the American [embassy website] and Indian [embassy website] diplomatic missions, requested all foreign officials to follow the terms of the treaty, which requires that foreign diplomats inform the central government before meeting with any political party leader. The note is seen as an criticism of many nations' refusal to meet with officials from the Royal government, instead meeting with pro-democracy leaders. The note comes just a few days after the US and India jointly asked Pakistan and China to not respond to a call for military aid [Indian Express report] by Vice-chairman of the Council of Ministers Tulsi Giri. All military supplies to the country were cut off after the February 1 royal assumption of power [JURIST report]. JURIST's Paper Chase has continuing coverage of Nepal [JURIST Country news archive]. Kantipur Online has local coverage.
- A report from the UN Board of Auditors [official website] released Monday detailed a $500,000 abuse of phone privileges by members of the UN peacekeeping force in Eritrea and Ethiopia [UN mission website] during 2003 and 2004. The report identified that over $500,000 (USD) was defrauded from the United Nations by the peacekeepers as they used stolen personal identity codes or abused a grace period to make personal telephone calls. Normally, UN peacekeepers have to pay for personal calls while on mission, the UN used to provide a one minute grace period to ensure that connections were made. Peacekeepers abused the grace period, with phone records showing as many as 100 consecutive phone calls, all under one minute in length. The UN Department of Peacekeeping Operations [official website] decided that there would be too much expense in trying to track down the offenders, and has restricted the issuance of personal identity codes capable of making phone calls, and cut the grace period for personal calls to 30 seconds. Reuters has more.


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UN reform plans meet mixed reaction
Jeannie Shawl on March 22, 2005 7:44 AM ET

[JURIST] Reaction to UN Secretary-General Kofi Annan's In Larger Freedom report [official text; JURIST report] outlining his plans to reform the UN has been mixed. Annan is calling for an expanded Security Council membership, the establishment of a new Human Rights Council to replace the current Commission on Human Rights, clarification on the use of military force, a condemnation of all forms of terrorism, and several other management reforms. Countries including Canada, Britain, and France are praising the report, but the US, while pledging its cooperation, has criticized some elements of the plan. State Department spokesman Adam Ereli said the US is skeptical [State Department press briefing] of the report's call for a Security Council resolution on the use of force and preemptive action. Algeria has also expressed its doubts about the likelihood of enacting of the proposed reforms, predicting that reaching agreement on a definition of terrorism and the creation of a new human rights body will be very difficult. Reuters has more. Annan is planning to lobby world leaders for their support during the next six months so that the reform package can be approved at a September summit at UN headquarters. The UN News Service has more.


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Legal agenda and live webcasts ~ Tuesday, March 22
Chris Buell on March 22, 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 Tuesday, March 22.
The US Supreme Court [official website] will hear oral arguments in two cases beginning at 10 AM ET today. In the first case, Tory v. Cochran [case backgrounder from Duke Law School], 03-1488, the Court will consider whether a permanent injunction in a defamation action preventing all future speech about a public figure violates the First Amendment. The ABA has merit briefs for the case. Following that, in Dodd v. US [case backgrounder from Duke Law School], 04-5286, the Court will resolve a circuit split over whether a statute of limitations period begins to run when the Court recognizes a new right or when it rules that the right may be applied retroactively. The ABA has merit briefs filed in the case.
The US Senate and US House [official websites] are in recess until April 4.
The European Council [official website] opens a two-day meeting today, with the session beginning at 5:30 PM local time [11:30 AM ET]. View the agenda [PDF] for the session, and watch a live webcast of proceedings.
The UN Security Council [official website] meets at 10 AM ET today, when it will hear a report by Secretary-General Kofi Annan on the situation in Afghanistan. View the agenda, and watch a live webcast of the session.
The 61st session of the UN Commission on Human Rights [official website] continues in Geneva today. View the daily agenda [DOC].
At the International Criminal Tribunal for the Former Yugoslavia, the trial of Slobodan Milosevic [ICTY case backgrounder] continues today at 9:30 AM local time [3:30 AM ET]. Also today, the trial of Fatmir Limaj and others [ICTY case backgrounder] continues at 2:45 PM local time [8:45 AM ET]. A webcast of proceedings is available.


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