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Legal news from Monday, June 21, 2010




Sweden prosecutor to probe possible oil company complicity in Sudan war crimes
Hillary Stemple on June 21, 2010 3:14 PM ET

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[JURIST] Sweden's international prosecutor, Magnus Elving, announced Monday that he would investigate the possible role of Lundin Petroleum [corporate website] in crimes against humanity committed in Sudan [JURIST news archive] from 1997 to 2003. The investigation will examine allegations made in a report [text, PDF] released by the European Coalition on Oil in Sudan (ECOS) [advocacy website], which alleged that Sudanese troops attacked and displaced civilians so that Lundin could have access to land for oil drilling. The ECOS contends that by launching oil exploration in an unstable area, Lundin exacerbated the violence in the region, leading to widespread displacement and killing of civilians. Elving indicated the aim of the investigation is to determine if any individual can be held responsible [The Local report] for any of the alleged crimes. Sweden's Minister of Foreign Affairs Carl Bildt [official website] will likely be included in the investigation, due to his role as a member of Lundin's board of directors from 2001 to 2006. Lundin's chairman of the board has denied the allegations [text, PDF] included in the ECOS report and contends that Lundin actually helped bring peace and stability to Sudan.

International efforts continue in order to bring those responsible for the violence in Sudan to justice. Last week, two Sudanese men suspected of committing war crimes related to the ongoing violence in the Darfur [JURIST news archive] region of Sudan surrendered [JURIST report] to the International Criminal Court (ICC) [official website]. Earlier this month, ICC Chief Prosecutor Luis Moreno-Ocampo [official website] called on the UN Security Council [official website] to support the arrest [statement, PDF; JURIST report] of two other Sudanese men who have been indicted for war crimes in Sudan. In March 2009, the ICC issued an arrest warrant [JURIST report] for Sudanese head of state Omar al-Bashir [ICC materials, PDF; JURIST news archive], charging him with seven counts of war crimes and crimes against humanity but declining to charge him with genocide. Last February, the ICC Appeals Chamber ordered the trial chamber to reconsider the charges of genocide after an appeal was filed [JURIST reports] by ICC prosecutors last July.




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India high court orders government to explain action on honor killings
Dwyer Arce on June 21, 2010 1:53 PM ET

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[JURIST] The Supreme Court of India [official website] on Monday ordered the central government and seven state governments to explain the steps they have taken to reduce honor killings [AI backgrounder]. The order comes in response to a petition [TOI report] filed by Shakti Vahini [advocacy website], a non-governmental human rights organization seeking the implementation of stricter laws against the perpetrators of honor killings. The organization is also seeking the creation of special police units [Hindustan Times report] dedicated to the protection of people who believe that they will be the target of an honor killing. Shakti Vahini alleges that the central and state governments have not adequately addressed the issue of honor killings due to political considerations. These killings are believed to be carried out at the order of village governing bodies for actions such as marrying a member of the wrong caste [LOC backgrounder], or otherwise committing an action that is considered to bring shame to the community. Honor killings have been the cause of 30 deaths [BBC report] in the previous 18 months in India. Over the weekend, two more instances of suspected honor killings were reported. In both cases, the victims were couples whose relationships continued despite objections from their families.

Honor killings, along with other forms of violence against women, have been the focus of numerous human rights groups and international organizations. Earlier this month, in a report [JURIST report] issued by Human Rights Watch (HRW) [advocacy website], the organization called for the government of Iraqi Kurdistan to take greater steps against the practice of female genital mutilation (FGM) [WHO backgrounder], while praising the government's efforts to punish honor killings by outlawing reduced sentencing for those convicted of committing them. In 2005, the UN Human Rights Committee criticized Yemen [JURIST report] for not incorporating many of its 2002 recommendations for civil and political rights in the country, including inequality for women, honor killings and FGM, and alleging serious rights violations were used to combat terrorism. The committee, which monitors adherence to the International Covenant on Civil and Political Rights [text], acknowledged the creation of a Ministry of Human Rights in Yemen in May 2003, but said Yemen should work towards creating a national human rights organization and strive towards equality between men and women by reexamining certain laws, among other possible reforms.




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Supreme Court limits judicial authority over arbitration agreements
Sarah Miley on June 21, 2010 1:02 PM ET

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[JURIST] The US Supreme Court [official website; JURIST news archive] on Monday ruled [opinion, PDF] 5-4 in Rent-A-Center v. Jackson [Cornell LII backgrounder; JURIST report] that, under the Federal Arbitration Act (FAA) [materials], the arbitrator has the authority to decide whether an arbitration agreement is valid, unless the plaintiff specifically challenges the agreement's delegation provision. Under the Restatement (Second) of Contracts [text], contractual clauses can be voided by the court if they are "unconscionable." The US Court of Appeals for the Ninth Circuit held [opinion, PDF] that that the district court was required to determine whether the arbitration agreement was unconscionable, even when the parties to the contract have clearly and unmistakably assigned this "gateway" issue to the arbitrator for decision. Justice Samuel Alito, writing the opinion for the court, reversed the circuit court decision and held that since the plaintiff, Antonio Jackson, challenged only the validity of the arbitration agreement as a whole and not the delegation provision specifically, the agreement is valid under FAA:
Jackson's appeal to the Ninth Circuit confirms that he did not contest the validity of the delegation provision in particular. His brief noted the existence of the delegation provision, but his unconscionability arguments made no mention of it. He also repeated the arguments he had made before the District Court that the "entire agreement" favors Rent-A-Center and that the limitations on discovery further his "contention that the arbitration agreement as a whole is substantively unconscionable." Finally, he repeated the argument made in his District Court filings, that under state law the unconscionable clauses could not be severed from the arbitration agreement. The point oft his argument, of course, is that the Agreement as a whole is unconscionable under state law.
Alito noted that Jackson contended in his brief to the Supreme Court that the delegation provision itself is substantively unconscionable, but he determined that the challenge was too late and would not be considered. Justice John Paul Stevens dissented, arguing that Jackson's claim that the arbitration agreement is unconscionable undermines any suggestion that he "clearly and unmistakably" assented to submit questions of "arbitrability" to the arbitrator, and the challenge should therefore not require specific reference to the delegation provision. Stevens was joined by Justices Ruth Bader Ginsburg, Stephen Breyer and Sonia Sotomayor.

The case stems from a discrimination suit filed by Jackson, a former Rent-A-Center (RAC) [corporate website] employee. Jackson claims he was was repeatedly passed over for promotion until he complained to his store manager and human resources, and was subsequently promoted. Two months after obtaining the promotion, RAC fired Jackson. Jackson filed a complaint alleging racial discrimination and retaliation. His employment contract with RAC contained an arbitration clause requiring arbitration of all disputes and specifically providing that only an arbitrator had the authority to resolve questions concerning the validity of the arbitration agreement.




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Supreme Court to rule on credit card notice issue
Hillary Stemple on June 21, 2010 12:50 PM ET

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[JURIST] The US Supreme Court [official website; JURIST news archive] on Monday granted certiorari [order list, PDF] in three cases. In Chase Bank USA v. McCoy [docket; cert. petition, PDF], the court will consider whether a creditor seeking to raise the interest rate on a credit card where the cardholder defaulted must provide the cardholder with a change in terms notice. According to Regulation Z, 12 CFR § 226.9(c) [text], a creditor must provide a cardholder with a change in terms notice when the contractual terms governing the account have changed. The court will determine if a change in the interest rate due to the cardholders default falls within the terms of the statute. The US Court of Appeals for the Ninth Circuit [official website] found [opinion, PDF] that Regulation Z does require the creditor to provide the cardholder with a change in terms notice where the cardholder has defaulted triggering an increase in the interest rate.

The court will hear the case of Walker v. Martin [docket; cert. petition, PDF], where it will decide whether a state law barring a prisoner from collaterally attacking his conviction is adequate to support a procedural bar to filing a habeas corpus petition. A California state law prevents prisoners from collaterally attacking their judgment when the prisoner "substantially delayed" filing his habeas petition. The court will decide whether the law is inadequate to bar the collateral attack because it is vague and because state courts failed to apply the state law consistently. The Ninth Circuit found [opinion, PDF] that the state's law was not well-established or "consistently applied" and therefore did not constitute a procedural bar to collaterally attacking the conviction.

The court also agreed to hear Virginia Office for Protection and Advocacy v. Reinhard [docket; cert. petition, PDF], in which it will decide whether the Eleventh Amendment [text] prevents an independent state agency from bringing an action in federal court against state officials to remedy a violation of federal law. The state of Virginia participates in a federal program designed to detect abuse and neglect at state-run medical facilities. The petitioner is the state agency given oversight over the medical facilities and is seeking access to records relevant to the deaths of two individuals who were residents of the state-run facilities. The US Court of Appeals for the Fourth Circuit ruled [opinion, PDF] that the suit by the petitioner was barred under the Eleventh Amendment and did not fall within the Ex parte Young doctrine [text].




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Supreme Court upholds law criminalizing material support for terror organizations
Dwyer Arce on June 21, 2010 10:51 AM ET

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[JURIST] The US Supreme Court [official website; JURIST news archive] on Monday ruled [opinion, PDF] 6-3 in Holder v. Humanitarian Law Project [Cornell LII backgrounder] that a federal law criminalizing providing material support for groups designated as terrorist organizations is constitutional. The court rejected plaintiffs' argument that the case should be decided on statutory grounds before ever reaching constitutional issues, finding that the federal law [18 USC § 2339B(a)(1) text] cannot be interpreted to require proof that a defendant intended to further the illegal activities of an organization. In ruling on the constitutionality of the statute, the court held that it did not violate plaintiffs' First Amendment rights to free speech and association, nor was it unconstitutionally vague in violation of the Fifth Amendment [Cornell LII backgrounders]. In support of the Fifth Amendment argument, the plaintiffs had alleged that the statute's prohibition of particular types of material support, such as training and expert advice, was unconstitutionally vague. In rejecting this, the court found that the terms of the list were not like terms that had been struck down previously by the court for having subjective and ambiguous meanings. In rejecting the plaintiffs' First Amendment claims, the court found that the statute did not criminalize the mere association with groups designated as terrorist organizations, and that even though in some instances the law interfered with free speech, this was "carefully drawn" to cover "an urgent objective of the highest order," the combating of terrorism. In remanding the case and partially reversing the decision [text, PDF; JURIST report] of the US Court of Appeals for the Ninth Circuit, Chief Justice John Roberts explained:
The Preamble to the Constitution proclaims that the people of the United States ordained and established that charter of government in part to "provide for the common defence." As Madison explained, "[s]ecurity against foreign danger is ... an avowed and essential object of the American Union." We hold that, in regulating the particular forms of support that plaintiffs seek to provide to foreign terrorist organizations, Congress has pursued that objective consistent with the limitations of the First and Fifth Amendments.
Justice Stephen Breyer filed a dissenting opinion in which Justices Ruth Bader Ginsburg and Sonia Sotomayor joined. In his dissent, Breyer agreed with the majority that the statute was not unconstitutionally vague, but disagreed with the court on the free speech claims, stating:
In my view, the Government has not made the strong showing necessary to justify under the First Amendment the criminal prosecution of those who engage in [the training of organizations to use nonviolent means to achieve their goals]. We cannot avoid the constitutional significance of these facts on the basis that some of this speech takes place outside the United States and is directed at foreign governments, for the activities also involve advocacy in this country directed to our government and its policies.
In reacting to the decision, the Constitution Project [advocacy website] stated that it was "dismayed" [press release] by the decision, which it said would allow prosecution for "constitutionally protected ... speech and association activities."

The plaintiffs in the case initially filed suit in 1998, claiming that they wanted to provide support for the humanitarian and political activities of the Liberation Tigers of Tamil Eelam and the Kurdistan Workers' Party [GlobalSecurity backgrounders], two organizations that were designated as terrorist organizations by the Secretary of State pursuant to federal statute in 1997. In November, the Constitution Project, the American Civil Liberties Union, (ACLU), and the Rutherford Institute [advocacy websites] filed amicus curiae briefs [JURIST report] supporting a Humanitarian Law Project (HLP) [advocacy website] argument that the law defines "material support" too broadly. The Supreme Court heard oral arguments [transcript, PDF; JURIST report] in the case in February, and granted certiorari [JURIST report] in September.




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Supreme Court rules on Carmack Amendment for overseas shipment of goods
Hillary Stemple on June 21, 2010 10:35 AM ET

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[JURIST] The US Supreme Court [official website; JURIST news archive] on Monday ruled [opinion, PDF] 6-3 in Kawasaki Kisen Kaisha v. Regal-Beloit Corporation [Cornell LII backgrounder] that the Carmack Amendment to the Interstate Commerce Act of 1887 [49 USC § 11706] does not apply to a shipment that originated overseas under a single bill of lading. The petitioner, shipping company Kawasaki Kisen Kaisha (K Line), included provisions in its bills of lading providing that the terms of the Carriage of Goods by Sea Act (COGSA) [46 USC § 30701] would govern the shipments, that Japanese law would govern any dispute and that the Tokyo District Court in Japan would have jurisdiction over any such disputes. The respondents contracted with the petitioners to ship products from China to the US and filed suit against K-Line in the US after products were damaged during the rail portion of transport. K-Line moved to dismiss the case based on the forum selection clause of the bill of lading. The district court granted the dismissal, but the US Court of Appeals for the Ninth Circuit overturned [opinion, PDF] the district court's ruling, holding that the district court did not consider whether the parties had properly opted out of the Carmack Act, without which the COGSA does not apply. Justice Anthony Kennedy, delivering the opinion of the court, reversed the court of appeals ruling, holding that COGSA governs over Carmack because:
[F]or Carmack's provisions to apply the journey must begin with a receiving railcarrier, which would have to issue a Carmack-compliant bill of lading. It follows that Carmack does not apply if the property is received at an overseas location under a through bill that covers the transport into an inland location in the United States. In such a case, there is no receiving rail carrier that receives the property for [domestic rail] transportation and thus no carrier that must issue a Carmack-compliant bill of lading.
Under the holding, the parties' agreement to litigate in Japan and under Japanese law is binding. Justice Sonia Sotomayor dissented and was joined by Justices John Paul Stevens and Ruth Bader Ginsburg.

During oral arguments, counsel for the respondent argued for a plain reading [JURIST report] of the statute to determine its meaning, while counsel for the petitioner argued that Carmack has not historically, and does not currently, apply to foreign trade. Counsel for the US government argued as amicus curiae on behalf of petitioners. The court granted certiorari [JURIST report] in the case to resolve a split among the circuits.




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Supreme Court strikes down injunction against genetically modified seed
Sarah Miley on June 21, 2010 10:18 AM ET

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[JURIST] The US Supreme Court [official website; JURIST news archive] on Monday ruled [opinion, PDF] 7-1 in Monsanto Company v. Geerston Seed Farms [Cornell LII backgrounder; JURIST report] that the district court abused its discretion when it issued a nationwide injunction against a genetically modified alfalfa seed. The district court sought to remedy a National Environmental Policy Act (NEPA) [EPA materials] violation based on only a remote possibility of reparable harm. The US Court of Appeals for the Ninth Circuit held [opinion, PDF] that NEPA plaintiffs are specially exempt from the requirement of showing a likelihood of irreparable harm to obtain an injunction, affirming the nationwide injunction. Justice Samuel Alito, writing the opinion of the court, reversed the circuit court's ruling, stating that NEPA violations, absent unusual circumstances, are not exempt from the standard four-factor test to determine the availability of injunctive relief. The test requires the plaintiff has suffered an irreparable injury, adequate alternative remedies are not available, a remedy of equity is warranted and it serves the public interest. Alito concluded that the respondent plaintiffs were unable to show that a partial deregulation would pose any appreciable risk of environmental harm if the scope of the regulation is sufficiently limited:
The District Court ... erred in entering the nationwide injunction ... for two independent reasons. First, because it was inappropriate for the District Court to foreclose even the possibility of a partial and temporary deregulation, it follows that it was inappropriate to enjoin planting in accordance with such a deregulation decision. Second, an injunction is a drastic and extraordinary remedy, which should not be granted as a matter of course. If, as respondents now concede, a less drastic remedy (such as partial...deregulation decision) was sufficient to redress their injury, no recourse to the additional and extraordinary relief of an injunction was warranted.
The court also upheld that both the respondent and petitioner had constitutional standing for injunctive relief and judicial review respectively. Alito stated that each party's claims address a particular and imminent injury that was substantially related to the challenged action, and was redressable by the court. Justice John Paul Stevens dissented from the opinion, and Justice Stephen Breyer took no part.

The case arose over an injunction against the planting of Monsanto's "Roundup Ready alfalfa" (RRA), pending an environmental impact statement (EIS). Conventional alfalfa growers and environmental groups filed an action against an decision by the Animal and Plant Health Inspection Service (APHIS) [official website] to deregulate RRA unconditionally and without preparing a detailed EIS. The plaintiffs claimed that the decision violated NEPA, which requires federal agencies "to the fullest extent possible" to prepare a detailed EIS for "every ... major Federal actio[n] significantly affecting the quality of the human environment." The district court found for the plaintiffs and vacated the agency's decision completely deregulating RRA. The court also enjoined APHIS from deregulating RRA, in whole or in part, pending completion of the EIS and entered a nationwide permanent injunction prohibiting almost all future planting of RRA during the pendency of the EIS process.




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India to consider further penalties related to Bhopal gas incident
Hillary Stemple on June 21, 2010 9:19 AM ET

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[JURIST] A panel of Indian Cabinet ministers on Monday recommended that the government consider increasing compensation for the victims of the 1984 Bhopal chemical spill disaster [BBC backgrounder]. The panel also indicated it will seek extradition of Warren Anderson, the former chairman of US chemical producer Union Carbide [corporate website], the company responsible for the spill. Members of the panel announced that all issues relation to the Bhopal disaster, including compensation, legal options and health related issues, were thoroughly discussed [Bloomberg report] and will be considered by the full Cabinet. The panel also announced that the government would begin the process of cleaning up the site of the disaster where nearly 3,800 people were killed when toxic gas was accidentally released in the middle of the night by a chemical plant owned by a Union Carbide subsidiary company. Upwards of 15,000 others later died from exposure to the gas, and 50,000 were left permanently disabled. A settlement was reached between Union Carbide and the Indian government in 1989 with the company paying $470 million to end its liability. The panel, however, indicated it was willing to revisit the settlement and possibly seek further compensation from Union Carbide. Dow Chemicals [corporate website], which purchased Union Carbide in 1999, contends that the settlement ended all possible claims against the company. The full Cabinet is expected to discuss the recommendations on Friday.

The recommendations come two weeks after the first convictions [JURIST report] related to the disaster were handed down by an Indian court. The 1984 Bhopal disaster caused an international outcry over the activities of Western chemical manufacturing in India and the developing world. A number of environmental groups, including Greenpeace [advocacy website], have called for Union Carbide and Dow Chemicals to be brought to justice [Greenpeace backgrounder] for the after-effects of the disaster. In 2008, the US Court of Appeals for the Second Circuit [official website] reinstated a water pollution lawsuit [JURIST report] brought by disaster victims against Union Carbide. In 2004, groups representing Bhopal victims appealed a $330 million award [JURIST report] issued by the Indian Supreme Court, arguing that the award should be quadrupled to provide enough compensation for each of the 572,173 people that the court ruled were eligible.




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Diamond monitoring body urged to suspend Zimbabwe over rights abuse allegations
Dwyer Arce on June 21, 2010 8:57 AM ET

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[JURIST] Human Rights Watch (HRW) [advocacy website] on Monday called for the removal of Zimbabwe [report materials; press release] from the Kimberley Process (KP) [official website], the global organization dedicated to suppressing trade in so-called "conflict diamonds." The report, "Deliberative Chaos," calls on the KP to suspend Zimbabwe at its meeting in Israel June 21. According to the report, human rights abuses by the Zimbabwean government have persisted since the discovery of diamonds in the Marange fields. The military continues to control a majority of the fields and has forced Marange villagers to mine them, perpetrating several human rights abuses, such as harassment, torture, beatings and the planned relocation of more than 4,000 families to expand the mining operations, according to HRW. Additionally, HRW has accused officials from the ruling ZANU-PF party of smuggling diamonds for personal and party benefit and has criticized the findings of the KP investigator to the region, who has recommended that Marange diamonds be certified as "conflict-free." In calling for Zimbabwe's suspension from the oversight body, HRW explained that the KP "risk[ed] becoming irrelevant" if it failed to address this problem.

Zimbabwean human rights activist Farai Maguwu was arrested [JURIST report] earlier this month for allegedly supplying false information about Zimbabwe's controversial diamond mining practices to the KP. An investigation was launched against Maguwu after he allegedly leaked to the KP a document compiled by the police [SW Radio Africa report] for the Joint Operations Command (JOC), a military-run security agency that was thought to be defunct. The report allegedly confirms allegations recently made by human rights organizations that Zimbabwe is continuing to engage in illegal diamond mining with the use of military force and leads non-governmental organizations to believe that the JOC is being subversively employed by the government. Civil society groups such as Global Witness, Partnership Africa Canada and Green Advocates [advocacy websites], have called for the suspension of Zimbabwe's international diamond trade due to the human rights violations [Telegraph report] allegedly committed by the Zimbabwean army against civilians and illegal workers in the Marange diamond fields. During the summer of 2009, KP appointed a team to conduct a Review Mission [press release, PDF] in Zimbabwe. They suggested that Zimbabwe's membership to the organization be revoked [Times Live report] for at least six months while the KP could ascertain that minimum standards were being met. Illicit trade in rough diamonds has been closely linked to armed conflict [UN backgrounder] in Angola, Cote d'Ivoire, the Democratic Republic of Congo, and Sierra Leone. Since its inception in 2003, the KP has operated [DF backgrounder] by endeavoring to require its members to follow the regulations set forth by the KPCS, and in turn certifies their shipments of rough diamonds as "conflict-free."




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