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Legal news from Friday, October 28, 2011




FCC unveils changes to broadband rules
Michael Haggerson on October 28, 2011 3:50 PM ET

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[JURIST] The Federal Communications Commission (FCC) [official website] announced comprehensive changes on Thursday to its national communications subsidy program to make high-speed internet access available in rural areas [press release, PDF]. The Connect America Fund [official website; executive summary, PDF] will have an annual budget of USD $4.5 billion, and the FCC estimates that the program will create more than 500,000 jobs while providing high-speed Internet access to more than 7 million Americans. The FCC described the previous system, the Universal Services Fund [official website], as "broken." The new program also makes mobile broadband "an independent universal service objective for the first time in history" and reforms intercarrier compensation to eliminate hidden costs in bills. FCC chairman Julius Genachowski called this a "once-in-a-generation overhaul" [text, PDF]:
We are taking a system designed for the Alexander Graham Bell era of rotary telephones and modernizing it for the era of Steve Jobs and the Internet future he imagined. We are reaffirming for the digital age the fundamental American promise of opportunity for all. We are furthering our national goal of connecting the country to wired and wireless broadband. And we are helping put America on its proper 21stcentury footing, positioning us to lead the world in a fiercely competitive global digital economy. Infrastructure has always been a key pillar of American economic success, with telephone and other infrastructure connecting consumers and businesses, facilitating commerce, and unleashing innovation. Broadband is the indispensible infrastructure of our 21stcentury economy.
The commission argued that high-speed Internet has become a necessity and thus all Americans should have access to it. Over 80 percent of Fortune 500 companies only post job openings online and studies have shown that students with access to broadband at home graduate at a rate of 6 to 8 percent higher than children in homes without access to broadband.

The FCC has faced controversy when it comes to regulating the Internet. Verizon and MetroPCS [JURIST reports] filed challenges in January out of concern over the FCC's broad authority under its new net neutrality rules. Last year, US Senator Jim DeMint (R-SC) [official website] introduced legislation [JURIST report] intended to block the FCC from implementing its National Broadband Plan [official website; materials]. The Freedom for Consumer Choice Act would remove the FCC's ability to declare the actions of a communications provider illegal unless there was a clear showing that the practice causes harm to consumers and will not be corrected by market forces. A month earlier, the FCC opened a new proceeding [JURIST report] to identify the legal approach that will best support its efforts to develop universal access to "high quality" Internet broadband services. A previous court ruling found that the FCC lacks the power to enforce net neutrality [JURIST report]. Net neutrality is thought by supporters to be essential to the goal of an open flow of information over the Internet regardless of the amount of revenue generated by the information.




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Court-martial begins for US Army soldier charged in Afghanistan civilian deaths
Sarah Posner on October 28, 2011 12:41 PM ET

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[JURIST] A court-martial began Friday for US Army Sergeant Calvin Gibbs, 26, charged with murdering civilians in Afghanistan as part of a rogue platoon that has attacked villagers in the Kandahar province. Gibbs' trial follows an 18-month investigation into crimes committed by US military personnel as part of the war in Afghanistan. Gibbs now faces three counts of premeditated murder [Reuters report], in addition to charges for cutting off the fingers, dismantling dead bodies and assaulting a soldier for notifying superiors of drug abuse within the unit. If convicted on all charges, Gibbs could face life in prison without the possibility of parole. Prosecutors have depicted Gibbs as the instigator of the atrocities against Afghan civilians by the 5th Stryker Brigade. Seven other soldiers faced charges for lesser offenses, but most of the others have agreed to plea deals. Pentagon officials have said that exposure of this misconduct has damaged the image of the US abroad.

In September, Private Andrew Holmes, 21, pleaded guilty [JURIST report] to murdering a teenage Afghan civilian that he knew was unarmed. Holmes was the second soldier to plead guilty of five who have been charged with murder as part of a plot contrived with fellow soldiers to kill Afghan civilians which took place between January and May of last year in Afghanistan's Kandahar province. In May, US Army prosecutors charged a sixth soldier [JURIST report] for his involvement in a murder plot that led to the deaths of three Afghan civilians. Bram was the sixth soldier from the 5th Stryker Brigade to be charged in connection with the three Afghan deaths, which took place between January and May of last year in Afghanistan's Kandahar province.




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Federal judge asks SEC, Citigroup to defend settlement
Katherine Getty on October 28, 2011 12:26 PM ET

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[JURIST] A judge for the US District Court for the Southern District of New York [official website] on Friday ordered [text, PDF] the US Securities and Exchange Commission (SEC) [official website] and Citigroup [corporate website] to defend their recent settlement agreement [JURIST report]. The agreement concluded the dispute that charged Citigroup with having misled its investors about a $1 billion loan that defaulted. The result left investors to bear the burden while Citigroup reaped $160 million in profits from trading and fees. Judge Jed Rakoff directed both parties to answer nine questions pertaining to the $285 million settlement. One of Rakoff's principal issues is why the SEC imposed a $95 million penalty on Citigroup but imposed a $535 million penalty [PDF, settlement agreement] on Goldman Sachs in a July 2010 suit. The judge also found fault with the reasoning behind the settlement and asked the parties prepare to defend their reasoning:
How was the amount of the proposed judgment determined? In particular, what calculations went into the determination of the $95 million penalty? Why, for example, is the penalty in this case less than one-fifth of the $535 million penalty assessed in SEC v. Goldman Sachs & Co. Why should the Court impose a judgment in a case in which the S.E.C. alleges a serious securities fraud but the defendant neither admits nor denies wrongdoing?
The next hearing is scheduled for November 9 when both sides will be required to answer the questions set out in the order.

This is not the first time that Rakoff has questioned settlements between the SEC and major financial corporations. In February 2010 he accepted a settlement [agreement; JURIST report] agreement between the SEC and Bank of America after twice rejecting it [JURIST report; JURIST report] as unfair to investors. This is also not the first time the SEC has taken issue with Citigroup's dealings with investors. In July 2010 the two sides reached [JURIST report] a settlement in regards to the SEC's claim that Citigroup misled investors about it's exposure to sub-prime mortgage-related assets. That agreement penalized the company $75 million. It was also rejected in August 2010 when a federal judge demanded to know how it was reached and why the investors were forced to bear the majority of the cost, but not the majority of the executives. The settlement was approved [Reuters report] October 2010.




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Spain judge to face trial for illegal jailhouse wiretap order
Rebecca DiLeonardo on October 28, 2011 12:21 PM ET

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[JURIST] The Spanish Supreme Court [official website, in Spanish] announced Friday that Judge Baltasar Garzon [BBC profile; JURIST news archive] will stand trial on November 29 for ordering illegal wiretaps in jailhouses. Garzon was indicted [text, PDF, in Spanish; JURIST report] in April for ordering the placement of wiretaps in jailhouses to record conversations between inmates and their lawyers. Garzon gave the order as part of an investigation [AP report] into a network of businesses that allegedly gave money and gifts to members of Spain's Popular Party in exchange for government contracts. He believed that the visiting lawyers may have been acting as liaisons between inmates and others involved in the criminal network. The court found, however, that Garzon continued to record the privileged conversations even after he learned that the majority of them discussed defense strategies. The November 29 trial will be the first of two for Garzon, who in 2010 was charged [order, PDF, in Spanish; JURIST report] with abuse of power and suspended from his position. No date has been set for a trial on this charge.

In March, Garzon filed a petition [JURIST report] with the European Court of Human Rights (ECHR) [official website], challenging the 2010 charges of abuse of power. In that case, Garzon is charged with politically motivated corruption in his investigation of crimes committed under the Franco dictatorship [BBC backgrounder], in violation of the 1977 Amnesty Law, which affords amnesty for Franco-era crimes. The charges are based on Garzon's 2008 order [JURIST report] for certain government agencies, the Episcopal Conference, the University of Granada and the mayors of four cities to produce the names of people buried in mass graves, as well as the circumstances and dates of their burial. His petition follows the September 2010 decision of the Criminal Chamber of the Spanish Supreme Court, which unanimously confirmed [JURIST report] a lower court order that Garzon abused his power and must face trial. Garzon is widely known for using universal jurisdiction [AI backgrounder; JURIST news archive] extensively in the past to bring several high-profile rights cases, including those against Osama bin Laden and former Chilean dictator Augusto Pinochet.




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Federal judge approves $1.25 billion settlement for black farmers
Jaimie Cremeans on October 28, 2011 11:47 AM ET

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[JURIST] A judge for the US District Court for the District of Columbia [official website] gave final approval [opinion, PDF] Thursday to a $1.25 billion settlement for black farmers who were discriminated against by the US Department of Agriculture (USDA) [official website] in disbursement loans and other forms of relief. This is the second round of settlements given to farmers who were discriminated against over a decade ago. The plaintiffs in this case missed the filing date in October 1999, so they were not included in a settlement made that year. After Congress passed a bill [text] in 2008 waiving the statute of limitations to give these farmers another chance to pursue their claims, the National Black Farmers Association filed suit on behalf of 800 black farmers. Federal Judge Paul Friedman issued final approval of the settlement Thursday:
Today, because of a Congress that was willing to once again waive the statute of limitations and to appropriate $1.25 billion to help further redress the historic discrimination against African-American farmers, the Court is pleased to approve the settlement agreement proposed by the Moving Plaintiffs, and endorsed by the United States, a fair, reasonable, and adequate.
US Attorney General Eric Holder and Agriculture Secretary Tom Vilsack welcomed the settlement [press release] as an "important step to ensure some level of justice for black farmers and ranchers who faced discrimination when trying to obtain services from USDA."

The farmers faced many procedural challenges over the past 12 years in pursuing their cases before the settlement was finally approved by the Senate last November and signed into law [JURIST reports] by President Barack Obama. The settlement was reached [JURIST report] with the USDA in February 2010, but the Senate failed seven times [JURIST report] to fund it. In May 2008, then-president George W. Bush vetoed a bill [JURIST report] which would have allowed the farmers to file suit after missing the original filing deadline. A month later, Congress voted to override [JURIST report] this veto, and the bill passed.




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Trial postponed for former Croatia PM
Sarah Posner on October 28, 2011 11:37 AM ET

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[JURIST] The corruption trial of former Croatian prime minister Ivo Sanader was postponed Friday for health reasons. Sanader has suffered from coronary problems and is expected to undergo a medical examination [BBC report] in preparation for trial now scheduled to start next week. Sanader, who was elected to parliament after he stepped down from the prime minister position in 2009, stands accused of corruption, abuse of power and fraud for taking nearly €4 million from public firms and state institutions [JURIST report]. The former prime minister denies any wrongdoing. The trial in Zagreb is scheduled to start next Thursday, November 3.

This high profile corruption charge comes as Croatia comes close to EU membership, hoping to join in July 2013. Sanader was indicted in September for corruption. The country's Bureau for Combating Corruption and Organized Crime (USKOK) alleged Sanader received a pay-off [JURIST report] of more than 3.6 million kuna (nearly USD $695,000) from Austria's Hypo Alpe-Adria-Bank in exchange for the country entering into a loan agreement to receive 140 million Austrian Schillings (USD $14.7 million) in order to place the bank in the Croatian market. Sanader was extradited [JURIST report] to Croatia in July in order to face these charges after he was arrested in Austria last December. Sanader argued that it would be impossible to receive a fair trail in Croatia, but he dropped it after media speculation [JURIST report] suggested the appeal could harm EU Croatia's accession.




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European Parliament condemns jailing of Ukraine ex-PM Tymoshenko
Matthew Pomy on October 28, 2011 11:28 AM ET

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[JURIST] Ukrainian authorities should review the conviction of former prime minister Yulia Tymoshenko [JURIST news archive], says a resolution [text] passed Thursday by the European Parliament that called her imprisonment [press release] "a violation of human rights and an abuse of the judiciary designed to silence Ukraine's leading opposition politician." Failing to do so, they say, calls the Ukrainian government's commitment to "democracy and European values" into question and may jeopardize Ukrainian relations with the EU. Tymoshenko, who was the leader of both the 2004 Orange Revolution [CFR backgrounder] and the opposition party [party website, in Ukrainian], was convicted [JURIST report] of abuse of her power earlier this month and sentenced to seven years in prison. The court fined Tymoshenko USD $190 million and forbade her from holding political office for three years. The verdict brought harsh backlash from the international community that saw the process as purely political. Tymoshenko, who accused the court of being a "puppet" of the president, has vowed to appeal the decision.

Relations between the EU and Ukraine appeared to be strengthening [PR Newswire report] as Ukraine was setting itself up for potential EU membership. However, conflict arose earlier this month when Tymoshenko was officially convicted of abusing her power when she signed a gas agreement with Russia that was alleged to have violated Article 365 of the Criminal Code of Ukraine [text]. Tymoshenko has filed a complaint [JURIST report] with the European Court of Human Rights [official website] calling the allegations politically engineered and contrary to the European Convention of Human Rights (ECHR) [text, PDF]. Separate charges of abuse of power were combined [JURIST report] in February with other charges of corruption that claim Tymoshenko bribed Supreme Court judges. Earlier this week, prosecutors reopened another case [Reuters report] against Tymoshenko on charges of embezzlement.




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Guantanamo detainee files complaint against Lithuania in Europe rights court
Brandon Gatto on October 28, 2011 10:49 AM ET

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[JURIST] Lawyers for a Guantanamo Bay [JURIST news archive] detainee and alleged al Qaeda facilitator on Thursday filed a case against Lithuania in the European Court of Human Rights [official website] for torture and secret detention at a CIA-run location within the Baltic state. The claimant, Abu Zubaydah [BBC profile], is a Palestinian who was captured in Pakistan in 2002 and taken to multiple CIA black sites, where he claims he was the victim of various human rights violations. According to Zubaydah and supported by government intelligence reports, the prisoner was waterboarded approximately 83 times [CIA memo, PDF] while in Thailand. He was then flown from Morocco to a secret detention facility [JURIST news archive] in Lithuania in February 2005, where he was supposedly tortured once again. Despite two previous probes dropped by the Lithuanian government in January 2009, officials have stated that they will consider re-opening a criminal investigation in light of increasing pressure [press release] from human rights groups like Amnesty International [advocacy website]. Lithuania is the only European country to have admitted directly working with CIA officials to provide these secret detention facilities, but nothing else.

The Lithuanian probe is not the first time that Zubaydah has urged countries to examine the often controversial methods of the US rendition program. In December 2010, Zubaydah asked Polish prosecutors [JURIST report] to investigate his alleged abuse at a secret CIA prison in Poland, where he claims he was the victim of enhanced interrogation techniques. Likewise, in April 2007, the alleged al Qaeda loyalist denied ties to terrorism [transcript] and asked a US Combatant Status Review Tribunal [JURIST report] to investigate his claims of torture. Zubaydah was transferred to Guantanamo Bay [JURIST report] in September 2006 as one of 14 "high value" terror suspects [DNI profile], and has remained there since.




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Advocacy group, lawmakers urge Supreme Court to hear health care challenge
Hillary Stemple on October 28, 2011 10:27 AM ET

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[JURIST] The American Center for Legal Justice (ACLJ) [advocacy website] and 105 members of Congress filed an amicus brief [text, PDF] with the US Supreme Court [official website] Thursday urging the court to take up a Florida case challenging the Patient Protection and Affordable Care Act (PPACA) [HR 3590 text; JURIST backgrounder]. Last month, the US Department of Justice (DOJ) [official website] and a group of 26 states filed petitions with the Supreme Court [JURIST report] seeking a ruling on the constitutionality of PPACA. The petitions for certiorari filed by the DOJ and states [cert. petitions, PDF] seek review of a decision handed down by the US Court of Appeals for the Eleventh Circuit [official website] in August. The Eleventh Circuit found the PPACA individual health care mandate unconstitutional [JURIST report] but upheld the remainder of the law without the mandate. The ACLJ's brief argues that the Eleventh Circuit erred in finding the individual mandate severable from the remainder of the law. They argue that because the individual mandate is the essential component of the PPACA it cannot be severed from the rest of the act. The entire act, they maintain, should therefore be struck down as unconstitutional. The ACLJ states that the split between the circuits over the constitutionality of the law has created a "matter of national importance," making a grant of review appropriate at this time.

There are currently several health care appeals pending before the Supreme Court. On Tuesday, the US Chamber of Commerce [official website] filed an amicus brief [text, PDF] asking the Supreme Court to agree to resolve the deepening legal conflict [JURIST report] over the constitutionality of PPACA. In addition to the appeal of the Eleventh Circuit's decision, earlier this month both the state of Virginia and Liberty University appealed a ruling by the US Court of Appeals for the Fourth Circuit, which dismissed their challenges for lack of standing [JURIST reports]. The US Court of Appeals for the Sixth Circuit upheld the law in June, and that ruling was also appealed [JURIST reports] to the Supreme Court by the Thomas More Law Center [advocacy website]. The Supreme Court is likely to rule on the issue next summer.




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ICC in contact with Gaddafi son over possible surrender
Hillary Stemple on October 28, 2011 9:21 AM ET

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[JURIST] The chief prosecutor of the International Criminal Court (ICC) [official website], Luis Moreno-Ocampo [official profile], confirmed Friday that there has been informal contact with Saif al-Islam Gaddafi, son of former Libya leader Muammar Gaddafi [BBC obituary; JURIST news archive], discussing the possibility of his surrender to the court. Libya's National Transitional Council (NTC) [official website] reported earlier this week that Saif al-Islam and former intelligence chief Abdullah al-Senussi were attempting to leave Libya [JURIST report] in an effort to surrender themselves to the ICC, although the ICC was unable to confirm the report at that time. In June, the ICC issued arrest warrants [JURIST report] for Saif al-Islam and al-Senussi alleging they had committed crimes against humanity in connection with the Libya conflict [JURIST backgrounder]. Ocampo indicated that Saif al-Islam has been informed through intermediate channels that if he surrenders he will have the right to a trial [Reuters report], and he will be considered innocent until proven guilty. Ocampo also stated that the ICC was considering the possibility of intercepting a plane [BBC report] with Saif al-Islam on it, if the plane is in the airspace of a country that is a party to the ICC. According to Ocampo, mercenaries are offering to move Saif al-Islam to a country that is not a party to the Rome Statute [text, PDF]. Saif al-Islam's location is currently unknown, but he is believed to be in Niger. Reports have indicated that Saif al-Islam could seek refuge in Zimbabwe, which is not a signatory of the Rome Statute, if he chooses to avoid ICC prosecution.

On Sunday, Libyan transitional Prime Minister Mahmoud Jibril [official profile] declared the country's official liberation [JURIST report] from the regime of Gaddafi and set a schedule for establishing a new government. Jibril made the announcement in front of thousands of supporters celebrating in the city of Benghazi, the location of the NTC and where the first uprisings sparked the Libya conflict eight months ago. The declaration of liberation came three days after Gaddafi's capture and death [JURIST report] at the hands of opposition forces in his hometown of Sirte. The NTC has formed a committee to investigate the circumstances surrounding Gaddafi's death, after pressure [JURIST reports] from the UN Office of the High Commissioner for Human Rights (OHCHR) [official website], rights groups including Amnesty International (AI) [advocacy website] and international governments. An autopsy has confirmed that Gaddafi died from a gun shot wound to the head [AP report], but interim Libya leader Mustafa Abdul-Jalil [official profile] has suggested that Gaddafi may have been killed by his own supporters [AP report] to prevent him from implicating them in any crimes under his regime. Gaddafi's death marks the latest milestone in the Libya conflict, which began in February [JURIST report] as part of a wider protest movement, commonly referred to as the "Arab Spring," that had spread throughout the Middle East and North Africa.




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Women launch new discrimination claim against Wal-Mart
John Paul Putney on October 28, 2011 8:37 AM ET

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[JURIST] Lawyers representing women who claimed discrimination by Wal-Mart [corporate website] filed an amended lawsuit [complaint, PDF] Thursday narrowing their claims to California stores of the retail giant. The lawsuit, filed in the US District Court for the Northern District of California [official website], alleges discriminatory practices against more than 90,000 women regarding pay and job promotion. The suit is expected to be the first of many cases against the retailer [Bloomberg report] broken down by state and region. Lawyers for Wal-Mart indicated the new suit relies on the same theories expressly rejected [Reuters report] by the US Supreme Court [official website]. The new suit seeks back pay [San Francisco Chronicle report] for female employees of Wal-Mart in California between December 1998 and at least June 2004, as well as requiring nondiscriminatory pay and promotions criteria.

In August, a judge ordered [text, PDF] that a group of women seeking to recover damages from Wal-Mart must file their lawsuits by October 28 [JURIST report]. In June, the US Supreme Court ruled [opinion, PDF] in Wal-Mart v. Dukes [Cornell LII backgrounder] that the group who filed the original claim did not meet the requirements for class certification [JURIST report]. The original case was filed in 2001 by female Wal-Mart employees [class website] who contended 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 2010 after the US Court of Appeals for the Ninth Circuit upheld class certification [JURIST reports] in April of that year. A three-judge panel of the Ninth Circuit originally ruled against Wal-Mart's appeal of the class certification in February 2007, then issued a new opinion [text, PDF] in conjunction with its decision in December 2007. Wal-Mart appealed [JURIST report] to the Ninth Circuit in 2005, arguing that the six lead plaintiffs were not typical or common of the class. The certified class, which in 2001 was estimated to comprise more than 1.5 million women, includes all women employed by Wal-Mart nationwide at any time after December 26, 1998. It would have been the largest class action lawsuit in US history.




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Poland reopens investigation into Auschwitz death camp crimes
John Paul Putney on October 28, 2011 7:52 AM ET

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[JURIST] Poland's Institute of National Remembrance (INR) [official website], the body charged with investigating Nazi and communist-era crimes, on Thursday announced a new probe into Nazi crimes aimed at tracking down living Nazi perpetrators. The investigation, opened by the branch in Krakow [AP report], follow investigations conducted during the Communist era that were concluded in the 1980s without making any indictments because Poland had difficulty questioning witnesses and perpetrators living abroad [BBC report]. As part of the probe, investigators plan to interview approximately 500 camp survivors [Telegraph report] for new information on the operations of the infamous death camp and who operated it. It was unclear whether the investigation would extend beyond Auschwitz, but the announcement was welcomed by Jewish groups [Reuters report].

Poland is not alone in its pursuit to remedy crimes committed during the Holocaust. German prosecutors announced earlier this month they intend to reopen hundreds of investigations [JURIST report] involving former Nazi death camp guards. In addition, Germany's recent trial and conviction [JURIST reports] of Nazi guard John Demjanjuk [NNDB profile; JURIST news archive] may have emboldened Poland. In September, the International Court of Justice (ICJ) [official website] at The Hague began hearing arguments [JURIST report] from Germany and Italy, which is seeking damages from Germany for crimes committed by Nazis during World War II.




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