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Legal news from Monday, April 25, 2011 |
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Supreme Court hears arguments on class certification, sentencing laws
Ann Riley on April 25, 2011 2:37 PM ET

[JURIST] The US Supreme Court [official website, JURIST news archive] heard oral arguments [day call, PDF; merit briefs] Monday in Erica P John Fund v. Halliburton [oral argument transcript, PDF; JURIST report]. 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 US 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]. Counsel for the petitioner argued that when a court holds at the class certification stage that there is no efficient market, and the issue of efficient market goes to the presumption of reliance, the basis for assuming class-wide reliance is impacted. Further that the Basic reliance presumption can be rebutted at the certification stage. Counsel also explained that loss causation is tested at the pleadings, summary judgment, and trial stagesand "the question is whether a fourth test should be interposed at the class certification stage." Counsel argued that loss causation is a class-wide issue and an element of the merits case, and must be proven at all three stages, but "because it is something that is common for all of the class members, Rule 23 [text] says that is something for trial, not for class certification." Amicus curiae for the government argued that: The Fifth Circuit erred in requiring proof of loss causation at class certification for three reasons: First, it's conducting a merits inquiry that's not tethered to the Rule 23 requirements; second, it's not taking a presumption and requiring plaintiffs to prove it; and third, it's confusing the distinct elements of reliance and loss causation. ... [The Fifth Circuit] is not talking about rebutting the presumption of reliance, giving the defendants an opportunity to do that at class certification. It is putting an affirmative burden on plaintiffs that they have to meet in every single case, even if the defendants do not come to court with any evidence. And that is a very heavy burden, as the district court in this case realized ... the question is do common issues predominate over individual ones. What you're trying to answer is can this group of people proceed together, not can this group of people make out their case. Counsel for the respondent argued that according to Basic, "absent the class-wide presumption of fraud on the market reliance, individual issues of reliance predominate." Thus, when a district court finds "that the presumption is unavailable or rebutted, reliance ceases to be a class-wide issue." Further, that Basic sets forth a special rule and is an exception to the rule of nonsusceptibility in class actions to class treatment of fraud cases. According to Basic, it is not just enough to allege operative facts, but you have to plead and prove them and they are subject to common proof. "[U]nless those facts are proven at the class certification stage, the presumption of class-wide reliance doesn't apply and individual issues of reliance predominate."
In McNeill v. United States [oral argument transcript, PDF; JURIST report], the court will determine how retroactive sentencing laws affect the definition of a "serious drug offense" under the Armed Career Criminal Act (ACCA) [18 USC § 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, but the statutory sentences for those offenses were reduced in later years and do not currently meet the ACCA definition. The US Court of Appeals for the Fourth Circuit held [opinion, PDF] that the ACCA still applied regardless of the subsequent statutory changes. Counsel for the petitioner argued: When Congress defined in the Armed Career Criminal Act a "serious" drug offense as one for which a State penalty of 10 years or more is prescribed by law, it meant for Federal courts to look to the law presently in effect in that State. This is the most natural reading of the statute, and words matter. It is also consistent with ACCA's purpose, which is [to] punish the Federal firearms offense ... [but] not to enhance a sentence because of the prior conviction. ... [W]hen the defendant commits the offense, what his status is at that time under the law we think makes sense and is consonant with the purpose of what ACCA is trying to do. ACCA is not trying to punish the State offense at the time. ... The question is, in a statute that defers to the judgment of the States to determine seriousness, are we going to defer to the current State assessment of what seriousness is or are we going to look back to repeal the discarded judgments? Counsel for the government argued that when sentencing, the court should "consider the offense and the punishment as they were defined by the body of law under which the defendant was convicted and sentenced." Further that the government's reading does not require the court to recharacterize the old offense at all. "[R]equiring the court to look to the time of the underlying conviction and sentencing unifies the inquiry across both components of the definition of serious drug offense and the definition of violent felony. ... And if the State actually thinks that the previous offenses that were committed were less serious, then it could make the decreased maximum term of imprisonment retroactively applicable if it wanted to demonstrate that it really thought that those were mistakes."


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Sudan to hold Darfur referendum in July
Erin Bock on April 25, 2011 1:56 PM ET

[JURIST] The Sudan National Elections Commission (NEC) [official website, in Arabic] announced on Sunday that an administrative referendum is set for July 1 for residents to determine whether Darfur [BBC backgrounder; JURIST news archive] should continue to be separated into three states or return to one region. State media indicated that a Republican Decree ordered the NEC to schedule the referendum [SUNA report] no later than the July 1 deadline. Sudanese rebel groups [BBC backgrounder] objected to scheduling the referendum [Reuters report] prior to reaching an agreement in the peace talks in Qatar [Al Jazeera backgrounder], which have been ongoing between rebel groups in the region since 2009. The peace talks have produced little progress, and rebels fear that the referendum would eliminate any possibility of reaching a deal. The government stated that it was committed to holding the referendum [AFP report] in July as a result of the Darfur Peace Agreement [text, PDF] signed in 2006 in Abuja, Nigeria.
Another recent referendum has created some instability in Sudan. In January, more than 98 percent of southern Sudanese voters voted in favor of secession [JURIST report] from northern Sudan. Sudanese President Omar al-Bashir [BBC profile; JURIST news archive] issued a formal decree [JURIST report] in February accepting the result of the referendum as the will of the southern people. The secession will officially take place on July 9 in Juba, the capital of Southern Sudan. There have been 101 deaths in the region since Tuesday [Daily Mail report] as a result of fighting between the south Sudanese army and rebel militias. The southern Sudanese government has accused the north of facilitating the fighting in order to create instability in the region to maintain the region's reliance on the north's oil infrastructure. In September, a human rights expert told the UN that Sudan was not prepared [JURIST report] for the referendum and that a lack of infrastructure in southern Sudan could lead to human rights violations, including suppression of free speech and inadequate protection of society due to a lack of well-trained police officers, prosecutors and judges.


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Supreme Court rejects Virginia petition for expedited review of health care law
Ashley Hileman on April 25, 2011 1:31 PM ET

[JURIST] The US Supreme Court [official website; JURIST news archive] on Monday denied [order list, PDF] Virginia's request for the court to rule on the constitutionality of the health care reform law [HR 3590 text; JURIST news archive] on an expedited basis. The writ was filed [JURIST report] in February by the state's attorney general, Kenneth Cuccinelli [official website], who sought to have the high court depart from its traditional procedure and instead review the constitutionality of the law before the US Court of Appeals for the Fourth Circuit [official website] rules on the issue. In the absence of war or a constitutional crisis, the Supreme Court will rarely intervene to decide a legal issue before it has been addressed by the appropriate appellate courts. Judicial review of the health care reform law will now continue in federal appeals court [AP report]. The appeal stems from a December ruling by a judge for the US District Court for the Eastern District of Virginia [official website] that the minimum coverage provision of the health care reform law is unconstitutional [JURIST report]. This ruling has been put on hold, pending appeal.
The enactment of the health care reform law has incited a number of legal challenges in addition to that posed by Virginia. Last week a judge for the US District Court for the District of New Jersey [official website] rejected [JURIST report] a lawsuit challenging its constitutionality. Judge Freda Wolfson dismissed the lawsuit, brought without an attorney by two New Jersey residents, on jurisdictional grounds, ruling the two men had no standing [Cornell LII backgrounder] to challenge the law. In a similar ruling earlier in the month, a judge for the US District Court for the District of New Hampshire [official website] dismissed a lawsuit [JURIST report] also challenging the law's constitutionality and held that the plaintiff, 80-year-old Harold Peterson, lacked standing because his Medicare coverage automatically satisfied the law's insurance mandate. A judge for the US District Court for the Northern District of Florida [official website] has also struck down the law, while judges in Michigan and Virginia have upheld it [JURIST reports].


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UN rights chief urges halt to Syria killings
LaToya Sawyer on April 25, 2011 12:41 PM ET

[JURIST] UN High Commissioner for Human Rights Navi Pillay [official profile] called Monday for Syria to immediately halt the killings and violence against civilian protesters. The statement follows major condemnations of the Syrian government's excessive use of lethal force and other rights violations against protesters. Syrian security forces have been responsible for fatal shootings of peaceful anti-government protesters [WP report] within the last week, including the April 22 shootings [AFP report] which resulted in more than 75 deaths. In addition to the halt, Pillay has called for a full investigation [UN News Centre report] into the recent deaths with hopes to serve justice against those ordering the shootings. The investigation is supported by UN Secretary-General Ban Ki-moon, who publicly reminded [press release] Syrian authorities of their obligation "to respect international human rights, including the right to freedom of expression and peaceful assembly, as well as the freedom of the press." UN officials hope that these immediate measures will ensure social peace and order and facilitate the development of government reforms in Syria. Human Rights Watch (HRW) [advocacy website] has also called for an international investigation [JURIST report] into the killings.
Last week, Syrian President Bashar al-Assad [Al Jazeera profile] ended [JURIST report] the country's 48-year-old state of emergency, but protests have continued. Earlier this month, HRW reported [text] that Syrian security forces have stopped medical personnel [JURIST report], sometimes violently, from attending to injured protesters. A spokesperson for the group called the practice "both inhumane and illegal." Last month, Pillay urged the Syrian government [JURIST report] to ensure protesters' rights to peaceful expression and to work toward addressing their concerns instead of responding with violence. As demonstrations continued throughout the country in March, the government freed 260 political detainees [AFP report] in an overture to the protesters.


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WikiLeaks releases classified Guantanamo documents
Dwyer Arce on April 25, 2011 11:36 AM ET

[JURIST] WikiLeaks [official website] on Sunday began publishing The Guantanamo Files [materials], a collection of more than 700 classified documents relating to the evidence and treatment of almost all detainees held at Guantanamo Bay [JURIST news archive] between 2002 and 2008. The documentsdetailing things such as the circumstances of detention, the evidence justifying detention, detainee risk evaluations, and the decision process of which detainees to transfer, hold, or release of 758 of the 779 total detaineeswere published in part on the WikiLeaks website and released to media outlets. According to the media outlets that have analyzed the documents, they reveal that 220 high value al Qaeda [CFR backgrounder] operatives had been held at Guantanamo, in addition to 150 who had been held for years without significant evidence against them [Guardian report]. The documents also detailed the practice of US forces detaining people in Afghanistan based on their wearing a particular model of watch [Telegraph report] that is known to be used by al Qaeda leaders. Additionally, 20 juveniles were held at the detention facility, including Omar Khadr [JURIST news archive], who was classified as a high value detainee by the Obama administration and agreed to a plea agreement [JURIST report] after eight years in detention. The American Civil Liberties Union (ACLU) [advocacy website] stated that the leaks emphasized the necessity of judicial review [press release]:These documents are remarkable because they show just how questionable the government's basis has been for detaining hundreds of people, in some cases indefinitely, at Guantanamo. The one-sided assessments are rife with uncorroborated evidence, information obtained through torture, speculation, errors and allegations that have been proven false. If the government had followed the law, it would have established a meaningful and prompt process to separate the innocent from those who are legally detainable. In responding to the documents, the US Defense Department (DOD) [official website] emphasized that some documents that have not been leaked, including the Guantanamo Review Task Force, which may reflect a change in the government classifications [press release] of detainees. The DOD also stated that the administration had "made the protection of American citizens the top priority and we are concerned that the disclosure of these documents could be damaging to those efforts."
The military detention facility at Guantanamo Bay, Cuba was opened in January 2002 [JURIST Archives report], and has consistently been a focal point for national and international controversy over the treatment of detainees. The leaks come as President Barack Obama has been attempting to close the facility [JURIST report] and transfer the detainees [JURIST news archive] to other countries. Closing the facility has faced several difficulties, however, and attempts to prosecute detainees in civilian courts have recently failed [JURIST reports]. The Guantanamo Files are the latest in a line of leaks that have shed light on the military and diplomatic actions [JURIST reports] of the US government in the aftermath of the 9/11 terror attacks [JURIST news archive].


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Morocco protesters seek radical constitutional reform
Zach Zagger on April 25, 2011 10:29 AM ET

[JURIST] Thousands of Moroccans engaged in peaceful demonstrations Sunday demanding greater reform in the new constitution expected to be unveiled in June by King Mohammed VI. The protesters, led by the Facebook youth movement Fevrier 20 rejected [CNN report] the king's draft of the new constitution because it was written by his own people. Thousands of protesters took to the streets in Moroccan cities of Casablanca, Tangiers, Marrakesh and the capital of Rabat. Mohammed has made some concessions since the outbreak of protests last February including the release of political prisoners [AFP report] and the development of a new constitution [JURIST report] with greater civil liberties and an independent judiciary. Still, the protesteors Sunday criticized the king's decision to appoint a council to write the new constitution. They also demanded an end to corruption, which they claim has deterred vital foreign investment in the country.
Mohammed said that the new constitution would result in more power being given to elected officials, as well as an independent judiciary. Under the plan, the prime minister would be chosen based on the political party elected to a majority of seats in parliament and more power would be granted to the parliament. Also, local officials would be granted more power through a "regionalization program" where officials would be elected to regional councils through a direct vote. The councils would be responsible for governing the affairs of the region. The announcement of the constitutional reforms came less than a month after thousands of Moroccans demonstrated [AFP report] across the country, demanding limits on the power of the monarch, as well as more sweeping political reform. Similar protests have occurred recently throughout the Middle East and North Africa [BBC backgrounder], and have resulted in the resignations of Tunisian president Zine al-Abidine Ben Ali and Egyptian president Hosni Mubarak [JURIST reports], and an ongoing conflict between protesters and Libyan leader Muammar Gaddafi [BBC profile; JURIST news archive].


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Hungary president signs new constitution into law amid rights concerns
Sarah Paulsworth on April 25, 2011 9:33 AM ET

[JURIST] Hungarian President Pal Schmitt signed into law [press release] a controversial new constitution [text, PDF, in Hungarian] on Monday, amid concern from civil society leaders and opposition politicians that the document contravenes European human rights principles. According to a statement [text] released by Human Rights Watch (HRW) [advocacy website], the new constitution "enshrines discrimination," and jeopardizes the rights of people with disabilities, women and LGBT people. The Council of Europe's Venice Commission [official website] also released an opinion [text, PDF] criticizing the manner in which Hungary went about getting the constitution approved. Although the commission was asked to comment on the constitution prior to its approval, it was unable to do so because it did not get the document in time. The constitution introduces several changes, including a debt ceiling where the country's debt cannot exceed 50 percent of the country's gross domestic product (GDP); a reform of the Fiscal Council, giving the group the right to veto the budget and dissolve parliament for failure to pass an annual budget by the end of March; a definition of marriage as a union between man and woman; and a statement that the life of a fetus begins at and should be protected from conception. The constitution also includes a new preamble [text, in Hungarian], that condemns the communist and socialist climate in Hungary that existed from 1944 to 1990 and solidifies democratization that began 20 years ago.
The National Assembly of Hungary [official website, in Hungarian] approved [statement, in Hungarian] the new constitution last week by a margin of 262-44 and one abstention, and European lawmakers have already sought EU review [JURIST reports] of the document. Members of the country's socialist party (MSZP) [official website, in Hungarian] and green liberal political party (LMP) boycotted the vote [Reuters report]. The measure was supported by and passed as a result of the ruling Hungarian Civic Party (FIDESZ) [official website, in Hungarian], which has controlled a two-thirds majority of the National Assembly since 2010. Other laws passed by the FIDESZ-led parliament have garnered controversy as well. In February, the government agreed to change its controversial media law following negotiations between Hungarian and EU representatives [JURIST reports]. The law created the National Media Communications Authority (NMHH) [official website, in Hungarian], which controls private television and radio broadcasters, newspapers and online news sites. Under the law, the government could fine broadcasters more than 700,000 euros and newspapers and news websites roughly 90,000 euros if their coverage is deemed unbalanced or immoral by the NMHH, made up of members loyal to FIDESZ. The law was approved in December 2010 and went into effect in January amid protests from members of the media, other European governments as well as Amnesty International [advocacy website], which urged Hungary to amend the law [JURIST report] because it curtails freedom of expression.


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