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Legal news from Monday, January 10, 2011




Supreme Court hears arguments on disclosure of adverse drug reactions, water rights
Ann Riley on January 10, 2011 4:12 PM ET

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[JURIST] The US Supreme Court [official website; JURIST news archive] heard oral arguments [day call, PDF; merit briefs] Monday in Matrixx v. Siracusano [oral arguments transcript, PDF; JURIST report] on a pharmaceutical company's obligation under §10(b) of the Securities Exchange Act and SEC Rule 10b-5 [texts] to disclose reports of patients' adverse reactions when the number of incidents is statistically insignificant. The US Court of Appeals for the Ninth Circuit [official website] held [opinion, PDF] that the inference that Matrixx withheld reports of patients' adverse reactions intentionally or with deliberate recklessness was as compelling as if they withheld the information innocently, and therefore the plaintiff had met the scienter pleading requirement of Rule 10b-5. Counsel for the petitioner argued that the reports do not establish any reliable facts about the drug, and that a duty to report these results would unfairly affect the company:
A securities fraud claim requires both materiality and scienter, and neither of those is established unless the company has knowledge of facts establishing a reliable basis for inferring that the drug itself is the cause of the reported event. Absent information like that, there is neither materiality nor scienter under the securities laws, until there's reliable evidence of a causal link between the product and the event...We have to be very careful about creating a rule through our interpretation of materiality that would require companies in advance to disclose the fact that a baseless, false allegation about the company is going to come out.
Counsel for the respondent argued that there is an analytical distinction between the importance of information and the intent to deceive. "The information might be important for investors, but it could very well be that the people making the disclosures don't have the requisite scienter because there is an absence of any plausible relationship." The respondent further noted that materiality is determined by the totality of the information available to investors.

In Montana v. Wyoming and North Dakota [oral arguments transcript, PDF; JURIST report], the court heard arguments on whether Wyoming officials breached an agreement between the states by failing to keep consumption of water from the Tongue and Powder rivers within the agreement's limits. Montana and North Dakota contend that Wyoming violated the Yellowstone River Compact [text, DOC; materials], which allocates water rights to the two tributaries of the Yellowstone River, by allowing the construction of water storage facilities and the expansion of irrigation. In 2008, the court appointed [order, PDF; JURIST report] a special master [Cornell LII backgrounder] to investigate and oversee the lawsuit, which was filed directly in the Supreme Court as it has original jurisdiction [Article III, Section 2 text] and exclusive jurisdiction [28 USC 1251 text] over cases in which a state is a party. Counsel for Montana argued that:

First, the plain language of the compact preserves the water supply each State was receiving as of 1950. Second, contrary to the compact's purposes, the master's interpretation would allow individual water users to alter those amounts. And third, the master's policy determinations about efficiency add ambiguity to the principles underlying a century of western water law.
Counsel for Wyoming argued that the state has a classic water right to divert water for the purpose of irrigation, as "the irrigation right is a general right."




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UN SG renews support for Lebanon tribunal
Megan McKee on January 10, 2011 3:46 PM ET

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[JURIST] UN Secretary-General Ban Ki-moon [official website] on Sunday renewed his support for the UN-backed Special Tribunal for Lebanon (STL) [official website], which is investigating the 2005 murders of former Lebanese Prime Minister Rafik Hariri [JURIST news archive] and 22 others. Ban met [UN News report] with current Prime Minister Saad Hariri, son of the slain Prime Minister, in New York to emphasize the important role the STL plays in addressing impunity in the country. The Secretary General and the Prime Minister also addressed regional and other efforts to promote stability, including various aspects of Security Council resolution 1701 [text], which ended the 2006 war between Israel and Hezbollah [CFR backgrounder; JURIST news archive], particularly ongoing Israeli airspace violations.

In November, US Secretary of State Hillary Clinton [official profile] urged Hezbollah not to resort to violence [text, JURIST report] in an attempt to impede the investigation of the STL. In an interview published by the Lebanese Newspaper An-Nahar [official website], Clinton reiterated US support for Lebanon and noted that the work of the STL is "legitimate and necessary." She also stressed the independence of the tribunal and that "no one knows what the Special Tribunal is going to do, who it might indict, or when it might choose to move forward." Clinton's interview followed remarks made by Hezbollah leader Hassan Nasrallah [BBC profile], who said he would "cut off the hands" of any person attempting to arrest a Hezbollah member in connection with the murder. Nasrallah has previously called for all Lebanese to boycott the STL [JURIST report] after information surfaced suggesting that the tribunal is set to implicate members of Hezbollah as participants in the assassination of Hariri.




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Supreme Court grants certiorari in seven cases
Erin Bock on January 10, 2011 2:40 PM ET

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[JURIST] The US Supreme Court [official website; JURIST news archive] on Friday granted certiorari [order list, PDF] in seven cases. In Erica P. John Fund, Inc. v. Halliburton Co. [docket; cert. petition, PDF], the court will determine whether investor losses need to be proven by a preponderance of the evidence at the class certification stage prior to full discovery in order for the class action lawsuit to proceed. The United States Court of Appeals for the Fifth Circuit held [opinion, PDF] that this was procedurally proper. The Fifth Circuit also determined that a plaintiff must establish loss causation to invoke the fraud-on-the-market presumption laid out in Basic v. Levinson [opinion].

In Lafler v. Cooper [docket; cert. petition, PDF] and Missouri v. Frye [docket; cert. petition, PDF], the court will determine how poor legal advice between attorneys and clients regarding plea bargaining should impact subsequent guilty verdicts. In Lafler v. Cooper, Anthony Cooper was convicted of assault with intent to murder for shooting a woman in her thigh and buttocks after his attorney advised him to not take a plea offer in the belief that there could be no finding of the requisite intent. The US Court of Appeals for the Sixth Circuit held [opinion, PDF] that the attorneys advice was unconstitutional as it amounted to ineffective assistance of counsel. In Missouri v. Frye, Galin Frye was offered two deals by prosecutors during proceedings for driving with a revoked license, but Frye's attorney never informed his client about the offers and Frye pleaded guilty. The Missouri Court of Appeals held that the attorney's failure to inform his client about the plea offers amounted to unconstitutional ineffective assistance of counsel.

In United States v. Jicarilla Apache Nation [docket; cert. petition, PDF], the court will determine whether attorney-client privilege allows for the United States to deny discovery requests for communications between the United States and its attorneys when those communications concern management of an Indian trust and there was no claim of a specific competing interest. The Court of Appeals for the Federal Circuit held [opinion, PDF] that the privilege did not apply and upheld the lower court's order of production.

In Nevada Commission on Ethics v. Carrigan [docket; cert. petition, PDF], the court will determine whether the First Amendment allows states to prevent government officials from voting on matters in which they have or appear to have a personal conflict. The Nevada Supreme Court, citing Citizens United v. Federal Election Commission [opinion, PDF], held [opinion, PDF] that preventing an official from casting such a vote violated the First Amendment because voting by an elected public officer on public issues is protected speech.

In Sorrell v. IMS Health, Inc. [docket; cert. petition, PDF], the court will determine whether state laws restricting or preventing the sale of nonpublic prescription data to drug companies for marketing purposes without the prescriber's consent is a violation of First Amendment commercial speech. The United States Court of Appeals for the Second Circuit, also citing Citzens United, held [opinion, PDF] that the law was an unconstitutional regulation of commercial speech.

Lastly, in McNeill v. United States [docket; cert. petition, PDF], the court will determine how retroactive sentencing laws affect the definition of a "serious drug offense" under the Armed Career Criminal Act (ACCA) [18 U.S.C. section 924]. Clifton McNeill was arrested in 2007 after police discovered a firearm and 3.1 grams of cocaine during a search incident to arrest for eluding a traffic stop. In light of previous drug convictions in 1992 and 1995, McNeill was convicted under the ACCA. The previous convictions and sentencing structure met the definitions of a "serious drug offense" at the time they were committed, however, the statutory sentences for those offenses were reduced in later years and do not currently meet the ACCA definition. The United States Court of Appeals for the Fourth Circuit held [opinion, PDF] that the ACCA still applied regardless of the subsequent statutory changes.




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Canada appeals court rules refusal to marry same-sex couples unconstitutional
LaToya Sawyer on January 10, 2011 2:38 PM ET

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[JURIST] The Saskatchewan Court of Appeals [official website] on Monday ruled [opinion text, PDF; case summary] that refusal by provincial marriage commissioners to marry same-sex couples violates § 15(1) of the Charter of Rights and Freedoms [text]. The decision invalidates a proposed amendment to Saskatchewan's Marriage Act of 1995 [text; PDF] that would allow for marriage commissioners to refuse to solemnize same-sex marriages in service to their of religious beliefs and would exclude the participation of commissioners in office before Parliament legalized same-sex marriage in 2005. The court expressed that its opinion protects the rights of gay and lesbian couples :
[The amendment], if enacted, will create situations where a same-sex couple contacting a marriage commissioner for the purpose of getting married will be told by the commissioner that he or she will not provide the service requested. This is not a merely theoretical concern. ... Both the Grandfathering Option and the Comprehensive Option will have the effect of drawing a distinction based on sexual orientation. ... Gay and lesbian individuals will be treated differently than other people who wish to be married. The differential treatment will be negative and will flow directly from their sexual orientation.
Furthermore, the court noted that because most other marriage officials are of religious backgrounds and do not condone same-sex unions, allowing marriage commissioners to refuse to marry same-sex couples would destroy all opportunities for gay and lesbian couples to have access to the institution of marriage.

Since Canada legalized the marriage of same-sex couples [JURIST report] in 2005, the issue has been the topic of popular debate. Despite resistance to the law, in 2006, Canadian law makers refused [JURIST report] to reconsider the decision, calling the matter settled. In 2004, a Saskatchewan court found [JURIST report] that a federal prohibition on same-sex marriages was unconstitutional, making such marriages legal in the province. In 2005, Canada was only the fourth country to recognize same-sex marriage. There are now more than ten countries that recognize same-sex marriages.




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Prominent Iran human rights lawyer sentenced to 11 years in prison
Ashley Hileman on January 10, 2011 12:28 PM ET

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[JURIST] Prominent Iranian human rights lawyer Nasrin Sotoudeh was sentenced Sunday to 11 years in prison. Sotoudeh was found guilty [Guardian report] of "acting against national security" and "making propaganda against the system" for which she will serve five and one years, respectively. The remaining five years of her sentence result from allegations that she was a member of the Human Rights Defenders Center [advocacy website], an organization originally founded by Shirin Ebadi [JURIST news archive] and four other Iranian lawyers, many of whom have also been detained or otherwise punished for their work. In addition to her prison term, Sotoudeh's punishment also requires that she refrain from leaving the country or practicing law for the next 20 years. Sotoudeh was detained [JURIST report] in September and spent much of that time in solitary confinement. She is most widely known for representing political activists following the controversial 2009 presidential election [JURIST news archive].

Sotoudeh has worked on several high-profile cases. She was the lawyer for Arash Rahmanipour, who was arrested for his role in the post-election protests on charges of mohareb, or being an enemy of God. Rahmanipour was executed [JURIST report] in January 2010. Sotoudeh also represented Isa Saharkhiz [Iran Press profile], a well-known press activist who was sentenced [JURIST report] to four years in prison in 2006 for publishing articles against the constitution and offending the state media. Iran continues to be scrutinized internationally for human rights violations. In March, UN High Commissioner for Human Rights Navi Pillay [official profile] criticized the state of human rights in Iran while presenting her annual report. Pillay condemned[JURIST report] Iran for the "arbitrary arrest" of, and "harsh sentences, including capital punishment" given to, individuals involved in protests following the presidential elections.




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Pakistan blasphemy laws will not be changed: PM
Sarah Paulsworth on January 10, 2011 10:32 AM ET

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[JURIST] Pakistani Prime Minister Yousuf Raza Gilani [BBC profile] announced Sunday that he has no intention of revising the country's contentious blasphemy laws [text; JURIST news archive] after Governor Salman Taseer of Punjab province was shot and killed Tuesday [JURIST report] apparently due to his opposition to the law. The laws envisage the death penalty for anyone who insults the Prophet Muhammad and have been widely criticized. Gilani made his statement on the same day as thousands protested in Karachi [TOI report] against amending the laws. Taseer, a senior member of the Pakistan People's Party (PPP) [party website], was shot by one of his security guards while getting into his car at Islamabad's Kohsar Market and died later at a hospital. Interior Minister Rehman Malik said the guard immediately surrendered to police and confessed to shooting Taseer because he had spoken against the blasphemy law. Controversy surrounding Pakistan's blasphemy law has recently been reignited over the case of Asia Bibi, a Christian woman sentenced to death for insulting the Prophet Muhammad during an argument with other women in her village last year. Tasseer had spoken in Bibi's defense.

Pakistan's blasphemy laws were introduced in 1986 as a way of protecting Muslim beliefs from insults. In response to repeated calls for repeal, Pakistani Federal Minister for Minority Affairs Shahbaz Bhatti [official profile] has said the laws may be amended to prevent misuse, but they will not be repealed. Advocacy groups such as Human Rights Watch [JURIST report], as well as LHC advocate Saroop Ijaz [JURIST op-ed] have called for the laws to be repealed. In February, Bhatti said that he has been speaking to various political parties [JURIST report] in Pakistan and that his government is committed to doing away with laws [AFP report] that are discriminatory to minorities. Bhatti made the comments at an interview with the AFP in Washington, DC, where he met with various lawmakers and officials during the National Prayer Breakfast. Bhatti discussed a proposed change in the law that would force judges to investigate blasphemy cases before they are docketed.




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Supreme Court remands tribal sovereign immunity suit
Dwyer Arce on January 10, 2011 10:06 AM ET

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[JURIST] The US Supreme Court [official website; JURIST news archive] on Monday remanded [order, PDF] the case of Madison County v. Oneida Indian Nation [docket; cert. petition, PDF] to the US Court of Appeals for the Second Circuit, ordering the lower court to reconsider its ruling. The Second Circuit ruling [opinion text] had found that tribal sovereign immunity prevented county authorities from foreclosing on property belonging to the Oneida Indian Nation [official website]. Authorities in Madison and Oneida counties in New York had sought the foreclosures due to the failure of the tribe to pay county taxes. The Supreme Court decided to remand the case after the Oneida Indian Nation passed an ordinance in November waiving "its sovereign immunity to enforcement of real property taxation through foreclosure by state, county and local governments within and throughout the United States." Upon remand, the Supreme Court ordered the Second Circuit to rule in the first instance on whether the ordinance should change the court's earlier decision.

The Supreme Court granted certiorari in the case [JURIST report] in October to determine whether tribal sovereign immunity from suit bars taxing authorities from foreclosing to collect lawfully imposed property taxes and whether the ancient Oneida reservation in New York was disestablished or diminished. The case was the most recent in a series of disputes between the Oneida Indian Nation and New York state authorities over the question of state and local taxes. The Supreme Court had previously ruled against [opinion text] the tribe's claims of immunity over tribal lands that were sold in the nineteenth century and repurchased by the tribe within the previous decade.




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Charges filed in shooting death of Arizona federal judge
Sarah Paulsworth on January 10, 2011 9:44 AM ET

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[JURIST] Federal charges [criminal complaint, PDF] were formally filed on Sunday against Jared Loughner, the man is accused of shooting to death [JURIST report] Chief Judge John Roll of the US District Court for the District of Arizona [official website] and five other people Saturday. Fourteen other people were wounded in the shooting including Representative Gabrielle Giffords (D-AZ) [official website]. Loughner faces one count of attempted assassination of a member of Congress, two counts of killing an employee of the federal government and two counts of attempting to kill federal employees. Federal Bureau of Investigation (FBI) Director Robert Mueller [official profile] said that additional charges could be filed [Arizona Republic report] against Loughner in the future. Loughner is expected to appear in court in Monday [Reuters report] to enter a plea in response to the federal charges. Loughner has invoked his right to remain silent [ABC report] and refuses to talk to investigators. It is expected that Loughner will be represented in court [Arizona Republic report] by well-known federal public defender Judy Clarke, who has assisted other high-profile defendants including the "Unabomber" Theodore Kaczynski and Susan Smith, the South Carolina woman who drowned her children in 1994.

President Barack Obama directed that the investigation into the shooting be conducted [press releases] by the FBI, coordinated by Mueller. Authorities arrested Loughner on Saturday and are searching for a possible accomplice [press release]. Due to the currently polarized political climate, many suspect that the attack was politically motivated [ABC report]. Giffords received harsh criticism in Arizona for her vote for the health care reform law [HR 3590; JURIST news archive] and was among those members of Congress who reported threats or vandalism in 2010. Giffords also was an outspoken critic of Arizona's controversial immigration law [SB 1070 text; JURIST news archive]. Ultimately, a clear motive into the shootings has yet to be identified.




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