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Legal news from Friday, September 16, 2005 |
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Corporations and securities brief ~ SEC approves Katrina filing extensions
James Murdock on September 16, 2005 9:42 PM ET

[JURIST] Leading Friday's corporations and securities law news, the US Securities and Exchange Commission [official website] has formally set out its plans to alleviate corporate financial strain caused by Hurricane Katrina [JURIST news archive]. In a press release, the agency announced that it will extend various filing deadlines for corporations affected by the hurricane. The agency's order also exempts corporations and other filers from some requirements for the current financial quarter. Earlier this month the SEC announced [SEC press release] that it was in contact with accounting firms and corporations in the Gulf Coast region to determine how best to react to the disaster.
In other corporations and securities law news... - Following Thursday's announcement that Mississippi will sue insurance companies [JURIST report] to enforce insurance policies in the wake of hurricane Katrina, a private attorney in Mississippi announced that he will file a class-action lawsuit against the companies. Richard Scruggs [PBS profile], who has had success in asbestos and tobacco litigation, said he plans to sue several major insurance companies. Though most policies explicitly do not cover flood damage, Scruggs plans to argue that the damage from Katrina does not qualify as "mere flooding." Reuters has more.
- Following Delta's Wednesday bankruptcy filing [JURIST report], Judge Prudence Carter Beatty of the Southern District of New York has approved the airline's bankruptcy financing plan. The judge approved offers of $1.7 billion from GE and $ 350 million from American Express to finance Delta's restructuring and planned emergence from chapter 11. Reuters has more.. Meanwhile, as noted earlier today in JURIST's Paper Chase, a federal bankruptcy judge in Virginia has approved [JURIST report] US Airway's emergence from bankruptcy and merger with America West.
- Also as reported earlier in JURIST's Paper Chase, US District Judge Inge Johnson in Alabama has ordered mediation in the SEC's civil suit against former HealthSouth CEO Richard Scrushy [JURIST coverage]. The SEC filed a $785 million complaint against Scrushy in March 2003 for his alleged role in HealthSouth's accounting scandal but waited to pursue the case until his criminal trial ended in acquittal in June [JURIST report]. AP has more.


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UN summit adopts modest reform package
Chris Buell on September 16, 2005 8:05 PM ET

[JURIST] The UN General Assembly High-level Plenary Friday evening approved a watered-down [JURIST report] 35-page package of modest institutional reforms and global policy initiatives in the culminating moment of the biggest summit [official World Summit 2005 website; JURIST news archive] of heads of state and government in UN history. Progress was made in condemning terrorism in all its forms, accepting clear responsibility to protect populations from genocide, war crimes and ethnic cleansing, renewing the battle against poverty, hunger and disease, and establishing a new Peacebuilding Commission [UN SG backgrounder]. UN member states did not, however, reach any new agreements in the critical areas of nuclear non-proliferation, disarmament and Security Council reform. Delegates supported the creation of a new Human Rights Council [UN SG backgrounder], but its details have still to be worked out by the General Assembly and it's as yet unclear whether it will be able to avoid the political problems that have compromised [JURIST report] the current Human Rights Commission. Addressing concerns over management failures and allegations of corruption at the UN, leaders urged Secretary-General Kofi Annan to create an internal ethics office and develop a new set of ethics guidelines, but did not give him the sweeping managerial authority he had sought. Swedish Prime Minister Goran Persson [Wikipedia profile] said earlier that Annan had asked him to lead a group of world leaders to keep momentum behind reform efforts going in the wake of the summit. Review the draft summit outcome document [PDF text, approved with corrections; UN summary, PDF] and read a background news release. AP has more.


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States brief ~ KY appeals court rules religious school must comply with health regulations
Rachel Felton on September 16, 2005 3:42 PM ET

[JURIST] Leading Friday's states brief, the Kentucky Court of Appeals [official website] ruled today that a one-room religious school must comply with health and plumbing regulations even if doing so would infringe on their sectarian beliefs. The school was closed by the Todd County Health Department after the department determined the school did not have a proper water system for drinking and hand-washing or an approved toilet system. Church members claimed that the sanitation rules infringed on their religious practices, but the court found the rules are neutral in regard to religion and that they do not place a special burden on the church. The case is Liberty Road Christian School v. Todd County Health Department. AP has more.
In other state legal news ... - The Washington Supreme Court has ruled [opinion text] that a man who fathered his girlfriend's two children through in vitro fertilization must pay child support. The father, Michael J. Kepl, signed a paternity affidavit after the first child's birth, but argued that he was not the "natural" father anyway because of a state law requiring both the mother and sperm donor of an artificial insemination to agree in writing that the donor is the child's father. The Supreme Court found that in signing the paternity affidavit for the first child, Kepl acknowledged his parental responsibilities, and for the second child the statute at issue was not relevant because it applied to artificial insemination. A number of the issues were made moot by the 2002 passage of the Uniform Parentage Act [text]. The Seattle Times has local coverage.
- The Washington Supreme Court has ruled [PDF text] that the state could be liable for "lapses of care" in its supervision of felons as the supervision of such offenders includes "a duty to prevent foreseeable injury." The ruling came in a case in which the jury awarded the family of a woman killed when her car was hit by a felon under the supervision of the Department of Corrections [official website] $22.4 million. While the Supreme Court tossed out the award for faulty jury instructions, the decision affirmed the DOC's responsibility to monitor offenders. In dissent, Justice Mary Fairhurst said it was "nonsensical" to hold the DOC responsible for the behavior of the offenders it supervises. Attorney General Rob McKenna criticized the decision [press release], saying "the state's taxpayers face virtually unlimited exposure for injuries caused by offenders on supervision." The Seattle Times has local coverage.


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Environmental brief ~ States sue USDA over invasive beetle control
Tom Henry on September 16, 2005 12:12 PM ET

[JURIST] In Friday's environmental law news, four states have sued [press release] the US Department of Agriculture (USDA) [official website] for failing to impose effective controls against invasive wood-eating beetles. New York, California, Connecticut and Illinois filed a lawsuit [PDF complaint] which alleges that the USDA does not do enough to prevent the Asian long-horned beetle [profile], emerald ash borer [profile], and pine shoot beetle [profile] from entering the country. It is generally believed that the beetles enter the US on or within wooden shipping pallets. New regulations [text] for wood packaging material, which were finalized a year ago, take effect Friday [press release].
In other environmental law news... - China's Guangdong provincial government [official website] has announced that it will permanently shutdown all of its mines. The shutdowns began earlier this year as it closed 112 mines because they lacked the required production or work safety licenses. The government will soon close the remaining 141 mines, located in Meizhou, Qingyuan and Shaoguan, citing safety and environmental health concerns. The China Daily has more.
- The Supreme Court of India [official website] will hear a case in which the government of India's state of Kerala is challenging the use of groundwater by the Coca-Cola India company [corporate website]. The High Court of Kerala [official website] had ruled that the company could extract 500,000 liters of water per day, under normal rainfall conditions. The state argues that the company's water usage deprives poor villages of water and violates the right to life guaranteed under Article 21 of India's constitution. The company argues that the groundwater usage claims are without scientific basis [company backgrounder, case documents]. The New Kerala has more.
- The US Fish and Wildlife Service (FWS) [official website] seeks comments on a proposed rule [text] that would reintroduce a population of northern aplomado falcons (Falco femoralis septentrionalis) [profile] into their historic habitat in southern New Mexico and Arizona, under the authority of the Endangered Species Act [text]. If the rule is finalized, the FWS could release up to 150 captive-raised northern aplomado falcons annually for 10 or more years, until a self-sustaining population is established. Comments can be made here until November 15, 2005.
- The US FWS also seeks comments [press release] regarding the regulations for humane and healthful transport of wild mammals and birds to the United States. The current regulations [text] are in accordance with the Live Animal Regulations (LAR) [factpage] published by the International Air Transport Association (IATA) [official website] in 1993 (20th edition). Since the regulations are 12 years old, the FWS wants to update the federal regulations to comply with the current edition of the LAR, which has been adopted by the European Union, a number of other governments, and the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES) [official website], of which the US is a member. Comments can be made here until December 15, 2005.


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Roberts hearings end; vote expected soon
David Shucosky on September 16, 2005 8:06 AM ET

[JURIST] The US Senate Judiciary Committee [official website] concluded its four days of confirmation hearings for Chief Justice nominee John Roberts [JURIST news archive] late Thursday, with closing remarks [SCOTUSblog report] from committee chairman Arlen Specter (R-PA) and ranking Democrat Pat Leahy (D-VT). Following the conclusion of Roberts' own testimony [JURIST report] earlier in the day, the committee heard from a wide range of other witnesses [witness list and prepared testimony] on the nomination, including Stephen Tober, chairman of the ABA's standing committee on the federal judiciary. The American Bar Association had previously rated Roberts as "well qualified" [JURIST report], its top grade, upon his nomination as associate justice. Tober testified [prepared statement] that the ABA rated Roberts as "well qualified" for the position of Chief Justice, saying the ABA is "fully satisfied" that "Judge Roberts meets the highest standards required for service on the United States Supreme Court as its Chief Justice."
In other testimony Thursday, Peter Kirsanow [official profile], a member of the US Commission on Civil Rights [official website], defended Roberts from criticism on civil rights issues [JURIST report]. Kirsanow said [prepared statement] "Our examination reveals that Judge Roberts' approach to civil rights issues is consistent with generally accepted textual interpretation of the relevant constitutional and statutory provisions as well as governing precedent... Some aspects of Judge Roberts' record on civil rights have been mischaracterized and many of the criticisms are misplaced." Other witnesses took issue with the administration's refusals to turn over certain documents relating to Roberts' prior work experience and complained that Roberts was too vague on the abortion issue. Marcia Greenberger, co-president of the National Women's Law Center [official website], testified [prepared statement; supplemental report, PDF] that while "Roberts followed an unmistakable pattern of developing, advancing and embracing legal arguments and positions that would undermine women's most basic legal rights." During the hearings, Roberts refused to say [JURIST report] if he would reverse Roe v. Wade, following prior nominees' precedent of declining to prejudge cases, though he did call the ruling "settled as a precedent of the court, entitled to respect under principles of stare decisis."
The Judiciary Committee is expected to vote on whether to recommend Roberts as Chief Justice next Thursday, with a vote by the full Senate planned for the week of September 26. Democrats seemed to remain undecided on how they will vote. Sen. Joe Biden (D-DE) said he was "more confused" about the nomination, but stopped short of announcing a vote against Roberts. Sen. Edward Kennedy (D-MA) said he doubted if Roberts "really recognizes in his heart and his soul the extraordinary march to progress in the last 50 years", referring to the civil rights questions surrounding his nomination, but also didn't formally announce a position. AP has more.


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Congress retaining UN Oil-for-Food documents for own investigations
Sara R. Parsowith on September 16, 2005 7:41 AM ET

[JURIST] Robert Parton, a former investigator for the Independent Inquiry Committee [official website] into the now defunct UN Oil-for-Food program [official website; JURIST news archive], has reached a deal with the United Nations and the US Congress under which Congress will retain thousands of pages of UN documents for review in its own examination of the humanitarian program. Parton resigned from the independent committee earlier this year, accusing the committee of covering up evidence [JURIST report] thought to be critical of UN Secretary General Kofi Annan [official profile; JURIST news archive]. After his resignation, three Congressional committees filed subpoenas for Parton and the 16,000 pages of documents he took with him. The deal between the UN, Congress, and Parton announced Thursday requires Parton to give interviews to all three Congressional committees in exchange for Congress returning the materials to the UN when its inquiries are completed and the UN dropping charges against Parton that he violated a confidentiality agreement [JURIST report]. Earlier this month, the UN-backed IIC released its final report [text; JURIST report], concluding that several parties shared responsibility for the Oil-for-Food program's mismanagement - including the UN Secretariat, the UN Security Council, UN agencies, national governments and private companies and individuals. The US investigations will focus on the substantive allegations surrounding the program and the UN's ability to investigate itself, according to a spokesman for the House International Relations Committee [official website]. AP has more.


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