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Legal news from Tuesday, March 29, 2011




Supreme Court hears arguments on Wal-Mart class action suit, witness tampering law
Andrea Bottorff on March 29, 2011 2:49 PM ET

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[JURIST] The US Supreme Court [official website; JURIST news archive] heard oral arguments [day call, PDF; merit briefs] in Wal-Mart v. Dukes [oral argument transcript, PDF], a gender discrimination class action lawsuit estimated to include more than 1.5 million women—the largest class action lawsuit in US history. The issues are (1) whether claims for monetary relief can be certified under Federal Rule of Civil Procedure 23(b)(2) [text] and, if so, under what circumstances; and (2) whether the class certification ordered under rule 23(b)(2) was consistent with rule 23(a). The case was filed in 2001 by female Wal-Mart employees [class website] who contend that Wal-Mart's nationwide policies result in lower pay for women than men in comparable positions and longer waits for management promotions than men. Wal-Mart appealed to the Supreme Court in August after the US Court of Appeals for the Ninth Circuit upheld class certification [JURIST reports] in April. Counsel for the petitioner Wal-Mart argued that the certified class failed to meet cohesion requirements because of the diverse nature of managerial discretion in the individual stores nationwide:
The delegation of discretion in some ways is the opposite of cohesive claims that are common to everyone in the class. The common policies that the plaintiffs point to are either neutral and not argued to be discriminatory or they are affirmatively nondiscriminatory. The company has a very strong policy against discrimination and in favor of diversity.
Counsel for the respondent certified class argued that although the company did not have a "formal policy of discrimination," the management staff used a common policy that was discriminatory toward women seeking advancement within the company.

In Fowler v. United States [oral arguments transcript], the court heard arguments on whether a federal court can convict an individual of murdering a witness under the federal witness tampering statute [18 USC § 1512(a)(1)(C) text] without first proving that the victim provided evidence of a federal crime to authorities. The statute prohibits killing or attempting to kill a person with the intent to prevent the person from providing information about a federal crime to police or a court. The US Court of Appeals for the Eleventh Circuit ruled [decision, PDF] that Charles Fowler violated the statute by killing a police officer who had stopped Fowler and his accomplices while they were in a stolen vehicle containing drugs, had recently committed an interstate robbery and were planning a bank robbery. Fowler protested that prosecutors failed to establish that it was likely the officer would transfer information to federal investigators or that it was likely that a federal investigation would be opened. The court held, however, that prosecutors need only establish that the defendant killed the victim to prevent the communication of a possible federal offense and that they had met that burden. Counsel for the petitioner Fowler argued that the court should apply a narrower, "realistic likelihood" standard when determining if the victim would have provided information to federal authorities, rather than the government's vague, "reasonably possible" standard. Counsel for the respondent government replied that the reasonableness standard gives the jury discretion to determine whether a victim could have provided evidence to a federal agent, since it is not possible to know the "specific intent" of the deceased victim.




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Nokia files new round of patent suits against Apple
John Paul Putney on March 29, 2011 2:30 PM ET

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[JURIST] Finnish telecommunications company Nokia [corporate website] announced Tuesday that it filed another complaint [press release] against Apple [corporate website] with the US International Trade Commission (ITC) [official website] in addition to a lawsuit filed in Delaware. Nokia's newest complaint alleges Apple is violating seven patents "in virtually all of its mobile phones, portable music players, tablets and computers ... in the areas of multi-tasking operating systems, data synchronization, positioning, call quality and the use of Bluetooth accessories." The complaint comes in response to the ITC determination that Apple did not violate the patents [PC World report] involved in Nokia's original complaint [JURIST report] filed in October 2009. As to the ITC's decision announced on Friday, Nokia has indicated it will wait to "see the full details of the ruling before deciding on the next steps in that case." The ITC, composed of six members, is expected to decide whether it will review [Bloomberg report] Friday's decision within the next two months. Nokia acknowledged that with the present complaint it now has "46 Nokia patents in suit against Apple" literally around the world.

Nokia and Apple have been embroiled in litigation marked by trading accusations of patent infringement. In December, the litigation spread to Germany, the UK and the Netherlands where Nokia filed 13 patent infringement complaints [JURIST report] against Apple. Last May, Nokia filed a complaint [JURIST report] in the US District Court in the Western District for Wisconsin [official website] alleging that Apple iPad and iPhone 3G products infringe additional Nokia patents. Apple counter-sued last December, claiming Nokia had stolen 13 patents from the company.




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UN prosecutors demand life sentence for ex-Yugoslav army chief
Sarah Posner on March 29, 2011 12:43 PM ET

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[JURIST] UN prosecutors on Tuesday demanded that ex-Yugoslav army chief Momcilo Perisic [ICTY profile, PDF] receive a life sentence for war crimes and crimes against humanity. Perisic is on trial before the International Criminal Tribunal for the former Yugoslavia (ICTY) [official website], charged [indictment, PDF] with eight counts of crimes against humanity and five counts of war crimes. The charges [JURIST report] include murder, persecution on grounds of politics, race, or religion, and unjustified attacks on civilians in the early 1990s in conflicts with Croatia and Bosnia and Herzegovina. As well as being held individually responsible for these acts, Perisic was also charged with command responsibility for the actions of his subordinates under Article 7(3) [text, PDF] of the ICTY Statute. Closing arguments are expected to conclude this week.

Perisic's trial began [JURIST report] in October 2008. ICTY Prosecutor Mark Harmon said Perisic was one of the "principal collaborators" of late Yugoslav president Slobodan Milosevic [JURIST news archive], claiming in his opening statement that Perisic "created an environment of impunity, wherein his subordinates were encouraged and did persist to commit crimes, knowing there would be no consequences." Perisic turned himself in to the UN in 2005, surrendering to officials [JURIST reports] from the ICTY.




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Supreme Court rules against health care providers in drug pricing suit
Aman Kakar on March 29, 2011 12:23 PM ET

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[JURIST] The US Supreme Court [official website; JURIST news archive] on Tuesday ruled [opinion, PDF] unanimously in Astra USA v. Santa Clara County, CA [Cornell LII backgrounder] that health care providers that are third-party beneficiaries of a government contract may not sue drug companies for overpricing under federal law. The issue was whether health care providers who qualify for reduced-price drugs under § 340B of the Public Health Services Act [42 USC § 256b] could sue for a violation of an agreement between the federal government and drug manufacturers when they lack federal statutory authority to bring the action. Under the act, drug manufacturers must enter into contracts with the federal government that restrict the price that those manufacturers can charge to providers through the Medicaid system. The statute is silent on the topic of a private cause of action, but the US Court of Appeals for the Ninth Circuit held [opinion, PDF] that federal common law does in fact provide a cause of action under contract law where a third party beneficiary is injured by the drug manufacturer's breach. In an opinion by Justice Ruth Bader Ginsburg, the court rejected the Ninth Circuit's reasoning that third-party suits would spread the enforcement burden:
But spreading the enforcement burden is hardly what Congress contemplated when it made HHS administrator of the interdependent Medicaid Rebate Program and 340B Program. Suits by 340B entities would undermine the agency's efforts to administer these two programs harmoniously and uniformly. Notably, the Medicaid Rebate Program's statute prohibits HHS from disclosing pricing information that could reveal the prices a manufacturer charges for its drugs. Had Congress meant to leave open the prospect of third-party beneficiary suits by 340B entities, it likely would not have barred them from obtaining the very information necessary to determine whether their asserted rights have been violated.
The opinion stresses that the issue of inadequate enforcement authority was resolved by the Congress when it strengthened and formalized the enforcement authority of the Health Resources and Services Administration [official website], made the new adjudicative framework the proper remedy for complaints by third-party entities and rendered the agency's resolutions of the complaints binding. Justice Elena Kagan took no part in the decision of this case.

Santa Clara County [official website], which operates several health care providers had filed the suit against Astra and eight other pharmaceutical companies alleging they were overcharging the health care providers in violation of the Pharmaceutical Pricing Agreements. The county was seeking compensatory damages for breach of contract. Oral arguments [transcript, PDF] for the case were held in January. Astra argued [brief, PDF] that only Congress can provide a cause of action under a federal statute, and that this circumvention of Congressional intent will disrupt the statutory scheme and the Medicaid system. The county argued [brief, PDF] that as third-party beneficiaries, health care providers are entitled to enforce contracts and that such enforcement is necessary given the lack of oversight by the Federal government.




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Supreme Court rejects failure-to-train claim of wrongfully convicted man
Maureen Cosgrove on March 29, 2011 12:21 PM ET

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[JURIST] The US Supreme Court [official website; JURIST news archive] on Tuesday ruled [opinion, PDF] 5-4 in Connick v. Thompson [Cornell LII backgrounder; JURIST report] that a district attorney cannot be held liable under § 1983 [text] for a failure to train subordinates, reversing a jury award of damages for a wrongfully convicted man. The respondent was found guilty of murder when he did not testify at trial because he had earlier been convicted of armed robbery at a trial during which prosecutors hid exculpatory evidence in violation of Brady v. Maryland [opinion text], which requires that the state disclose to the defense evidence in its possession that is favorable to the accused. After the evidence was discovered and shortly before his scheduled execution, Thompson was found not guilty. Thompson sued district attorney Harry Connick, alleging that Connick failed to adequately train prosecutors about their duty to produce exculpatory evidence and that the lack of training had caused the nondisclosure in Thompson's robbery case. According to the statute, failure to train employees must amount to "deliberate indifference to the rights of persons with whom the [untrained employees] come into contact," where a pattern of similar constitutional violations by untrained employees is "ordinarily necessary" to demonstrate deliberate indifference. In an opinion authored by Justice Clarence Thomas, the court determined that Connick was reasonably unaware of potentially similar Brady violations:
[W]hen city policymakers are on actual or constructive notice that a particular omission in their training program causes city employees to violate citizens' constitutional rights, the city may be deemed deliberately indifferent if the policymakers choose to retain that program. ... Without notice that a course of training is deficient in a particular respect, decisionmakers can hardly be said to have deliberately chosen a training program that will cause violations of constitutional rights.
Furthermore, "single incident" liability is not a valid exception to the required showing of a pattern of violations. Justice Antonin Scalia wrote a concurring opinion, joined by Justice Samuel Alito. Justice Ruth Bader Ginsburg, writing for the dissent, argued that failure to provide training in some circumstances could be so egregious such that a single violation resulting from the lack of training could be characterized as deliberate indifference to constitutional rights.

The Supreme Court on Tuesday also dismissed [opinion, PDF] a writ of certiorari in Tolentino v. New York [Cornell LII backgrounder; JURIST report] as improvidently granted. The court declined to address the issue of whether the exclusionary rule prohibits police from using a defendant's driving record compiled by the state's Department of Motor Vehicles (DMV) obtained after illegally stopping the defendant.




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Federal appeals court upholds secrecy provision of whistleblower law
Zach Zagger on March 29, 2011 10:58 AM ET

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[JURIST] The US Court of Appeals for the Fourth Circuit [official website] dismissed [opinion, PDF] a claim led by the American Civil Liberties Union (ACLU) [advocacy website] upholding secrecy provisions of a federal whistleblower law. The case involved the Civil War-era False Claims Act (FCA) [text], which includes provisions authorizing private citizens, dubbed qui tam relators, to sue on behalf of the US accusing federal contractors of fraudulent claims against the government. The ACLU, together with the Government Accountability Project (GAP) and OMB Watch [advocacy websites], brought a facial constitutional challenge against the secrecy provisions of the the FCA that require the complaint to be sealed for up to 60 days so the government can decide whether to intervene and allow the government to move the court for extensions. The groups argued the provisions violate the First Amendment by infringing on the public's right of access to judicial proceedings and the qui tam relators' right to speak about their complaint, and that mandatory sealing strips the courts' inherent ability to decide whether to seal on a case-by-case basis. The appeals court, in a 2-1 decision, held that, even assuming the First Amendment right of access applies to qui tam actions, the sealing provisions address a compelling government interest of protecting the integrity of such proceedings and that the provisions were narrowly tailored to address issues in modern fraud allegation claims. The court further held the FCA provisions do not intrude on judicial self-administration. One judge dissented, arguing "transparency remains central to combating waste and fraud..." and "the Government fails to justify its First Amendment infringement with compelling interests and narrow tailoring." According to the opinion, since 1986, qui tam relators have filed helped the Department of Justice return over $27 billion to the US under the FCA.

Last year, the US Supreme Court [official website] ruled [JURIST report] 7-2 in Graham County Soil & Water Conservation Dist. v. United States ex rel. Wilson [Cornell LII backgrounder; JURIST report] that whistleblowers cannot bring suit under the FCA to recover misspent government funds if the information used in the lawsuits came from state or local agencies' reports or audits. The suit arose out of public record documents that detailed a failure to obtain bids for the clean-up and reconstruction of storm-damaged portions of North Carolina. The ruling could potentially bar thousands of lawsuits by whistleblowers. However, Congress recently changed the language of the statute [SCOTUSblog report] as part of the health care reform bill [HR 3590 materials] signed into law [JURIST report] in March 2010.




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Israel parliament gives courts power to revoke citizenship
Matt Glenn on March 29, 2011 9:55 AM ET

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[JURIST] Israel's Knesset [official website, in Hebrew] passed a law Monday giving courts the power to revoke the citizenship of those convicted of treason, spying, aiding the enemy or terrorism. The law, initiated by members of nationalist party Israel Beytenu [party website], passed [Jerusalem Post report] by a vote of 37-11. Israeli Foreign Minister Avigdor Lieberman [official profile] repeated his campaign slogan [press release, in Hebrew] of "no loyalty, no citizenship," adding that the law would help deal with those who take advantage of democracy to undermine it. Previously the state could strip citizenship from convicts only through the interior ministry. Opponents of the law in the Knesset called it fascist [Ynet report] during debates and claim it targets Israel's Arab minority.

In October, Israel's cabinet approved a controversial change [JURIST report] to the country's citizenship oath forcing new citizens to pledge allegiance to Israel as a "Jewish and democratic state." Critics claim the oath, which was proposed by Israel Beytenu, unfairly discriminates against Arabs and threatens to increase tensions between Israelis and Palestinians. In July, the Knesset passed a law [JURIST report] limiting the ability of Arab-Israelis to bring Palestinian relatives into Israel. In 2009, the cabinet rejected an oath [JURIST report] proposed by Israel Beytenu that would force applicants for Israeli citizenship to pledge loyalty to a "Zionist, Jewish and democratic Israel."




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Berlusconi appears in court on fraud charges
Aman Kakar on March 29, 2011 9:37 AM ET

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[JURIST] Italian Prime Minister Silvio Berlusconi [official website, in Italian; JURIST news archive] attended a hearing in Milan on Monday to defend himself against charges of fraud and embezzlement. Berlusconi has not attended a case hearing for more than seven years [BBC report]. He is currently a defendant in four trials. Berlusconi is accused of inflating the price paid to buy television rights for his company Mediatrade to fund political activities. The appearance is a rarity for Berlusconi who has been a defendant in close to 50 trials but has consistently stayed away from the court. He stated that we will attend as many trials as he can.

Berlusconi also faces trial for underage prostitution [JURIST report] on April 6. In February, an Italian judge ordered Berlusconi to stand trial on charges of paying for sex with a minor and abuse of power. Berlusconi allegedly paid 7,000 euros to then 17-year-old dancer, Karima El Mahroug, for sex and later called police to secure her release [BBC report] while she was detained on an unrelated suspicion of theft. The scandal has made Berlusconi the subject of protests [Reuters] by hundreds of thousands of women, calling for his resignation over his recent sex scandal. Berlusconi, however, has refused to step down. Also in February, an Italian court resumed a tax fraud case [JURIST report] against Berlusconi. The case was re-opened after the Constitutional Court modified a law [JURIST report] aimed at giving Berlusconi and other public officials temporary immunity from charges while in office. That same month, Berlusconi solidified his intentions to remain in office by pledging judicial reform [JURIST report] and several other improvement he plans to make in Italy.




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Egypt police officials charged with murdering protesters
Aman Kakar on March 29, 2011 8:32 AM ET

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[JURIST] An Egyptian prosecutor indicted three police officials [al-Masry al-Youm report] from the Beni Suef governorate on Monday on charges of murdering protesters during the Egyptian revolution. According to judicial sources, Major General Ahmed Abu Zeid, Colonel Mohamed Abdel Maqsoud and Colonel Mohamed Othman face charges of attempted murder and murder. The charges stem from a January 28 incident where police firing in Beni Suef resulted in 19 deaths and 300 injuries. Low-ranking officials have also been indicted with the same charges. The public prosecutors requested that security force find and detain fugitive officers. Last week, Egyptian Attorney General Abdel Meguid Mahmoud charged former interior minister Habib el-Adly [BBC report] with "pre-meditated and deliberate killing" of protesters. He is charged with opening fire on protesters and deploying the military when protesters violently clashed with security forces on January 28.

Egypt has been heavily criticized by rights groups and international organizations for its handling of protesters. On Thursday, a commission of Arab and Egyptian human rights groups accused [JURIST report] former president Hosni Mubarak [Al Jazeera profile] and the police of murdering protesters during the demonstrations in Egypt. In February, Amnesty International (AI) [advocacy website] reported new evidence that the Supreme Military Council of Egypt had been torturing protester-detainees [JURIST report]. Through various detainee accounts, AI stated that individuals were tortured "to intimidate protesters and to obtain information about plans for the protests." Also in February, Human Rights Watch (HRW) [advocacy website] reported that the Egyptian military was improperly detaining protesters and allowing prisoner abuse [JURIST report]. The report calculated at least 119 arbitrary detentions and five incidents of torture, providing detainee accounts. HRW contends that the military was targeting human rights activists, protesters and journalists. In January, UN officials including Secretary-General Ban Ki-moon and High Commissioner for Human Rights, Navi Pillay [official websites], urged the Egyptian government to exercise restraint [JURIST report] and respect the rights of protesters. Pillay acknowledged reports of tactics including rubber-coated bullets, tear gas, water cannons and batons, and called on the government to investigate the reports of excessive force including civilian deaths.




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