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Legal news from Monday, April 16, 2007 |
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$2.8M jury award for homeowner in second federal Katrina insurance trial
Caitlin Price on April 16, 2007 8:09 PM ET

[JURIST] A US federal jury in Louisiana Monday awarded $2.8 million in damages and penalties to an Allstate Insurance Co. [corporate website] policyholder in the second federal lawsuit to go to trial involving Louisiana homeowners affected by the Hurricane Katrina disaster [JURIST news archive]. Homeowners Robert and Merryl Weiss sued Allstate for bad faith, alleging that the insurance carrier did not correctly adjust their claim and underpaid them for the structural damage to their home. Allstate contended that they properly paid the couple $29,483 for the damage to the home and $14,787 for living expenses, since most of the damage was caused by the hurricane's storm surge and thus did not fall under the Weiss' hurricane policy. After conflicting expert testimony about the height of the storm surge and the strength of the winds, the jury found that the damage was caused by wind and was covered under the policy. A $1.5 million penalty was assessed for Allstate's delayed payment of the claim. The Weiss' have already received $350,000 in federal flood insurance. The jury also rejected Allstate's assertion that the Weiss' had voided their policy by misrepresenting their claim after attempting to claim at least $34,000 in damages for a boathouse that allegedly was not located on the insured property during the hurricane. AP has more.
In February, homeowners in the first federal insurance trial brought by Louisiana homeowners [JURIST report] abruptly dropped their suit after Allstate alleged they misrepresented their claims. There are 350 lawsuits pending in Mississippi against insurance companies over the issue of whether insurance policies should cover water damage when the policies, as written, cover wind damage created by a hurricane, but not water damage by "wind-driven surge."


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'High value' Guantanamo detainee denies al-Qaeda connection, alleges torture
Caitlin Price on April 16, 2007 7:00 PM ET

[JURIST] Guantanamo Bay [JURIST news archive] military prison detainee Abu Zubaydah [BBC profile] denied accusations of al-Qaeda involvement and made allegations of torture, according to a transcript [PDF] released Monday of his March 27 testimony before a US Combatant Status Review Tribunal [DOD materials]. Zubaydah, a Palestinian, testified that from 1994 until approximately 2000, he worked at guest houses in Pakistan that were affiliated with the Khalden "defensive" jihadist training camp in Afghanistan. He asserted, however, that the camp was not connected to al-Qaeda but that it existed to train fighters to defend Muslim countries from invasion, and that he opposed attacking non-military targets. Zubaydah also said that he made false confessions as a result of torture before his transfer to Guantanamo, and that he was not an associate of Osama bin Laden. He said he was an enemy of the US, but not an enemy combatant [CFR backgrounder], and that he never supported, financially or otherwise, any attack against the US.
Last September Zubaydah was transferred to Guantanamo [JURIST report] as one of 14 "high value" terror suspects [DNI profiles, PDF] potentially eligible for trial by military commission [JURIST news archive]. September 11 mastermind [JURIST report] Khalid Sheikh Mohammed [BBC profile] was among the detainees. Their CSRT hearings have been closed to the press [JURIST report], but the Department of Defense has released transcripts of 12 of the 13 hearings held to date. Zubaydah has been in custody since 2002 and was held in a secret CIA prison [JURIST report] before his transfer. AP has more.


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EU treaty amendments better than new constitution: UK, Dutch PMs
Mike Rosen-Molina on April 16, 2007 4:22 PM ET

[JURIST] British Prime Minister Tony Blair and Dutch Prime Minister Jan Peter Balkenende [official websites] Monday criticized efforts to create a new constitution [JURIST news archive] for the European Union [official website], saying in a joint press conference [transcript] in London that member states could be better served simply by amending existing treaties. Blair also expressed concern that an entirely new constitution might take power away from national governments and consolidate it into one "super state." Instead, Blair and Balkenende suggested a treaty to amend current agreements to clarify the division of powers between the European Commission (EC) [official website] and member states and to expand the role of national parliaments.
Currently, the European Union member states have a series of international treaties [EU backgrounder] that effectively function as the Union's constitution; efforts to codify these treaties within a single document have so far been unsuccessful. In 2004, EU member states signed the Treaty establishing a Constitution for Europe [text], a draft constitution later rejected by French and Dutch voters. Earlier this month, EU leaders celebrated the fiftieth anniversary of the European Union by signing a declaration [JURIST report] aimed at revitalizing efforts to pass a European charter. The German government, which holds the six-month EU rotating presidency [German presidency official website], is expected to offer a plan for the adoption of a new constitutional treaty in June at the end of its term. BBC News has more.


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Supreme Court hears arguments in care workers' overtime case
James M Yoch Jr on April 16, 2007 4:09 PM ET

[JURIST] The US Supreme Court [official website; JURIST news archive] heard oral arguments [transcript, PDF] Monday in Long Island Care At Home v. Coke [Duke Law case backgrounder; merit briefs], 06-593 [docket], in which the Court considered whether a 1975 US Labor Department exemption rule that eliminates overtime for "companionship services" contravenes congressional intent to provide overtime in the Fair Labor Standards Act (FLSA) [PDF text]. Evelyn Coke, a retired home care worker, sued her former employer, Long Island Care At Home, for over 20 years of overtime, for which she says she was not paid or paid only minimum wage. The Labor Department rule in question overrides the FLSA requirement that overtime workers be paid "time and a half" compensation. A decision for Coke would result in countless lawsuits to recover back overtime and billions of dollars in expenses for the home care industry and the US government, which could in turn prohibitively raise prices for the care of retirees, a point raised by Associate Justice Stephen Breyer [OYEZ profile]. The US Court of Appeals for the Second Circuit struck down the rule [opinion, PDF] in 2004, finding it violated congressional intent for the FLSA to provide overtime compensation to employees. AP has more.
The Court also heard oral arguments [transcript, PDF] in Powerex Corp. v. Reliant Energy Services [Duke Law case backgrounder; merit briefs], 05-85 [docket], where the Court examined whether a corporation owned by a foreign state through another entity and used to fulfill that state's international treaty obligations can be denied status as an "organ of a foreign state" under the Foreign Sovereign Immunities Act of 1976 [text]. Powerex sought to remove the case to federal court, claiming it is an instrumentality of a foreign nation because it is a subsidiary of a crown corporation of the Canadian province of British Columbia. In 2004, the US Court of Appeals for the Ninth Circuit ruled [opinion, PDF] that Powerex was not an organ of a foreign state because it was not run by the government, did not receive government funding, and was not staffed with government employees.


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Padilla terrorism trial starts in Miami
Brett Murphy on April 16, 2007 1:03 PM ET

[JURIST] The trial of Jose Padilla [JURIST news archive] and two co-defendants on terrorism charges [indictment, PDF] began Monday with jury selection. Defense attorneys have expressed concern that potential jurors may have been tainted by early accusations that Padilla had planned to set off a radioactive "dirty bomb" [NRC factsheet], an allegation not among the charges against Padilla, and that jurors might associate the defendants with the Sept. 11 attacks. US District Judge Marcia Cooke [official profile] has instructed prosecutors to only refer to Sept. 11 in a limited manner [AP report], but barred them from implying that Padilla or his co-defendants were involved.
Last week, Cooke refused to dismiss the terror charges based on Padilla's allegations that he was tortured [JURIST reports]. Padilla, a US citizen, was arrested in 2002 at Chicago's O'Hare International Airport and subsequently detained as an "enemy combatant" at a Navy military brig in Charleston, South Carolina. Initially accused of planning to set off a "dirty bomb" in the United States, Padilla went from enemy combatant to criminal defendant when he was finally charged [JURIST report] in November 2005 on unrelated counts of conspiracy to murder US nationals and supporting terrorist activity. He was transferred to civilian custody [JURIST report] in January 2006 and has pleaded not guilty [JURIST report] to the charges. In February, Padilla was ruled competent to stand trial [JURIST report]. Reuters has more.


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Another son of former Bangladesh PM arrested for alleged corruption
Katerina Ossenova on April 16, 2007 9:48 AM ET

[JURIST] Arafat Rahman, the son of former Bangladeshi Prime Minister Khaleda Zia [Virtual Bangladesh profile], was arrested Monday on corruption allegations, according to local media. Zia's elder son Tarique Rahman [party profile, in Bengali] was also arrested on arrested [JURIST report] corruption charges last month in Dhaka. Tarique, a senior member in the Bangladesh Nationalist Party [party website], was widely expected to succeed his mother, who stepped down at the end of her term last October to make way for the interim government. Unlike Tarique, Arafat was not involved in politics.
In recent weeks, security forces have arrested more than 60 politicians [JURIST news archive], mostly members of the Bangladesh Nationalist Party and the Awami League [party website]. Corruption watchdog group Transparency International [advocacy website] lists Bangladesh among the world's most corrupt nations. Bangladeshi President Iajuddin Ahmed [official profile] declared a national state of emergency [JURIST report] on January 11 in the face of unrest over upcoming national elections and later cancelled a scheduled national poll. The interim military-backed government has delayed general elections until the end of 2008. BBC News has more.


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Croatia lawmaker charged with war crimes
Katerina Ossenova on April 16, 2007 9:07 AM ET

[JURIST] A Croatian county court in Osijek issued indictments Monday for seven persons, including a former parliamentarian, on charges of war crimes committed against Serbs, including abduction, torture and murder, during Croatia's war of independence from the former Yugoslavia. Prosecutors charged opposition lawmaker and former member of the ruling party Branimir Glavas [official profile, in Croatian; Trial Watch profile] with ordering the killing of 10 Serb civilians in the eastern city of Osijek during the 1991 Serbo-Croat war. Glavas is the first state official to be charged such crimes; if convicted, he faces up to 20 years in prison. The other six persons charged were members of a paramilitary unit allegedly formed by Glavas in Osijek [backgrounder] in 1991. Glavas has maintained his innocence and even staged a 40-day hunger strike last year when he was detained [JURIST report] when the investigation initially opened. He also faces another war crimes investigation in Zagreb for the murder of two Serbs in a separate incident in Osijek.
Glavas was one of the founding members of the ruling conservative HDZ party [party website; Wikipedia backgrounder], but was ousted in 2005 by Prime Minister Ivo Sanader [SE Times profile]. The Croatian Parliament [official website, English version] granted a request in May 2006 to lift parliamentary immunity for Glavas in order to move forward with criminal proceedings. Reuters has more. Hina has local coverage.


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