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Legal news from Monday, November 28, 2011




Supreme Court hears arguments on real estate lawsuits, jurisdiction
Jaclyn Belczyk on November 28, 2011 3:29 PM ET

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[JURIST] The US Supreme Court heard oral arguments [day call, PDF] Monday in two cases. In First American Financial Corp v. Edwards [transcript, PDF; JURIST report], the court heard arguments on whether a plaintiff has standing to sue, on behalf of a nationwide class, claiming a real estate company violated the Real Estate Settlement Procedures Act of 1974 [text] without claiming that the violation affected the services rendered. RESPA makes it illegal for settlement service companies to receive a kickback involving any federally related mortgage loan. The plaintiff argues that her title agent improperly referred her to First American Financial [corporate website] in violation of RESPA seeking to recover settlement service charges despite not showing that First American Financial was more expensive or provided inadequate service. The US Court of Appeals for the Ninth Circuit held [opinion, PDF] that the payment of the service charges established an injury in fact sufficient to satisfy Article III standing because RESPA's text does not limit liability to cases where the plaintiff is overcharged. Counsel for the petitioner, First American, argued:
Article III requires a private plaintiff to show injury in fact, which means at a minimum that the alleged illegal conduct made her worse off. Factual injury does not automatically follow from violation of a statutory duty owed to the plaintiff, and Ms. Edwards has not alleged the type of harm alleged by plaintiffs in the common law cases that she invokes—no misappropriation of her property, no loss of desired opportunity or benefit, no injury to reputation.
Counsel for the respondent argued:
For at least 280 years the law has been clear that when someone breaches a duty of loyalty owed to you by taking a kickback or otherwise introducing a conflict into a transaction, you can sue on the basis of that alone, without showing a further harm in terms of economic loss.
Counsel for the US government argued as amicus curiae on behalf of the respondent.

In Mims v. Arrow Financial Services, LLC [transcript, PDF; JURIST report], the court heard arguments on whether Congress divested the federal district courts of their federal question jurisdiction [28 USC § 1331 text] over private actions brought under the Telephone Consumer Protection Act [FCC summary, PDF]. The US Court of Appeals for the Eleventh Circuit held [opinion, PDF] that federal courts lack jurisdiction over private actions under the act. Counsel for the petitioner argued:

The Federal question jurisdiction statute ... broadly grants Federal courts jurisdiction over all actions arising under Federal law unless Congress has provided otherwise. That grant of jurisdiction encompasses rights of action that are created and governed by substantive Federal law. The Telephone Consumer Protection Act sets for forth such a right of action. It provides detailed substantive standards and it grants a private right of action to recover for their violation. The TCPA permits that action to be filed in a State court if the State court allows such action, but it says nothing one way or another about whether the action may also be filed in Federal court.
Counsel for the respondent argued that "this Court ... should hold that Congress did not intend for private TCPA claims to be brought in Federal court."




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UN report: Syria committing human rights violations
Sung Un Kim on November 28, 2011 2:17 PM ET

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[JURIST] The Independent International Commission of Inquiry on Syria reported [text, PDF] Monday that the Syrian Arab Republic has committed numerous human rights violations [press release] including torture, sexual violence, use of excessive force and violations of the right to peaceful assembly. The investigation on which the report is based on was initiated [JURIST report] by the UN Human Rights Council (UNHRC) [official website] after allegations [JURIST report] of international human rights violations during a crackdown on anti-government protesters since March of this year. The report stressed that due to Syria being a party to most major international treaties such as the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment, the Convention on the Rights of the Child and the Convention on the Prevention and Punishment of the Crime of Genocide, the state is obligated to respect and promote human rights of all persons. Consequently, the report concluded that the Syrian government and its officials have failed to comply with these responsibilities:
The prohibition of crimes against humanity is a jus cogens or peremptory rule, and the punishment of such crimes is obligatory pursuant to the general principles of international law. Furthermore, crimes against humanity are the culmination of violations of fundamental human rights, such as the right to life and the prohibition of torture or other forms of inhuman and degrading treatment. According to the principles of State responsibility in international law, the Syrian Arab Republic bears responsibility for these crimes and violations, as well as the duty to ensure that individual perpetrators are punished and that victims receive reparation.
The commission urged the Syrian Arab Republic government to take measures in order to end the continuance of human rights violations and to allow immediate and full access to UN human rights monitoring bodies.

The Syrian government has faced numerous allegations of human rights violations since March when the first anti-government protests started. Last week, the UN General Assembly's Human Rights Committee approved [JURIST report] a draft resolution [text, PDF] condemning the Syria's human rights violations calling for an immediate end to them. The death toll of Syrian protesters steadily increased since the beginning of the first outbreak of anti-government protests and earlier this month, the number exceeded 3,500 [JURIST report], an increase of 900 from September's number [JURIST report]. The allegations of human rights violations continued to increase as well and last month, Syria was urged [JURIST report] to allow UN human rights experts to conduct investigations into these allegations. In August, the UN High Commissioner for Human Rights Navi Pillay [official profile] recommended [JURIST report] the UN Security Council [official website] to refer Syria to the International Criminal Court (ICC) [official website] for the violence against anti-government protests after her demand [JURIST report] to the Syrian government to stop the killings of protesters in March.




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Report alleges corruption, torture in Russia lawyer prison death
Jerry Votava on November 28, 2011 12:44 PM ET

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[JURIST] A private investigative report issued on Monday detailed the denial of medical treatment [report text, PDF] to and severe physical abuse of former Russian lawyer and purported whistle-blower Sergei Magnitsky [JURIST news archive], who died [JURIST report] in a Moscow prison in November 2009. In addition to details of Magnitsky's treatment and death, the report alleges corruption by Russian officials in the cover up of the details surrounding Magnitsky's death, and surrounding the apparent theft of $230 million from the Russian Treasury. The report concluded "the Russian government knows exactly who tortured and killed Sergei Magnitsky, as well as who stole $230 million, but has refused to investigate and prosecute them." Magnitsky was arrested on allegations of tax fraud after implicating Russian police in a multimillion-dollar embezzlement scandal while working as outside counsel for the London-based investment fund Hermitage Capital Management [corporate website]. Russian investigators reopened the case [JURIST report] against Magnitsky in August on the basis of a new ruling permitting criminal cases against the dead.

Russian President Dmitry Medvedev [official profile; JURIST news archive] announced in July that Magnitsky's pre-trial death was the result of criminal acts [JURIST report] and not attributable to the denial of medical treatment from prison doctors. Prior to his death, Magnitsky was held in prison for 358 days with little to no access to legal representation, his family or medical professionals. Last year, US lawmakers introduced a bill [JURIST report] that would prohibit the US State Department [official website] from issuing visas to individuals, or their family members, who are connected to Magnitsky's death. In 2009, shortly following Magnitsky's death, a Russian human rights group alleged [JURIST report] that Magnitsky had been murdered while in prison.




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Myanmar soldiers may be committing war crimes: rights group
Jamie Davis on November 28, 2011 11:07 AM ET

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[JURIST] Human rights group Partners Relief and Development [advocacy website] said Monday that Myanmar soldiers may be committing war crimes [press release] in the form of torture and forced labor against ethnic communities in Kachin State. The group issued a report [text, PDF, graphic content] documenting the war crimes which allegedly began on June 9 after a 17-year ceasefire agreement was broken to begin a war between the Myanmar army and the Kachin Independence Army [BBC backgrounder]. Evidence for the alleged war crimes was gathered from first-hand interviews of witnesses in Myanmar. The report calls attention to Myanmar's legal obligations and highlights that it has failed to honor its obligations under human rights law and the Geneva Convention [ICRC backgrounder] and that it may also be subject to charges from the International Criminal Court (ICC) [official website]. The report calls on the UN to conduct an investigation into the war crimes in Myanmar:
Considering the evidence available, the actions and involvement of the Burma Army in causing extensive and prolonged displacement of civilian populations throughout Burma are likely to amount to crimes against humanity and/or war crimes. In order to establish the facts, investigate allegations of these grave breaches of international law and hold the perpetrators responsible for their role in such crimes, the international community should support a UN mandated Commission of Inquiry into international crimes in Burma. This does not have to come at the expense of parallel engagement with the Burmese authorities—on the contrary, the Burmese authorities would be expected to welcome such independent inquiries.
The report urges Myanmar to cease the harming of civilians during the war, permit and conduct investigations and allow UN access to conduct an independent investigation. The group also urged US Secretary of State Hillary Clinton to raise issues of war crimes when she visits the country as the first Secretary of State to visit Myanmar in 50 years.

Myanmar's human rights record has been at the center of discussion recently. UN Secretary-General Ban Ki-moon [official profile] announced [JURIST report] this month, after meeting with Myanmar President Thien Sein [BBC backgrounder], that he hopes to visit Myanmar soon and praised the nation for ongoing reforms. Last month, US Assistant Secretary of State Kurt Campbell indicated that Myanmar's civilian-led government was planning dramatic changes including releasing hundreds of political prisoners [JURIST report] and consequential dialogue with pro-democracy leader Aung San Suu Kyi [BBC profile; JURIST news archive]. Myanmar has sought to improve its international reputation following a transfer of power from a military regime to a civil system in March after holding its first elections in 20 years. Myanmar's government formed the Myanmar National Human Rights Commission (MNHRC) in September to promote and safeguard the country's constitutional rights [JURIST report]. In August, UN Special Rapporteur on the situation of human rights in Myanmar Tomas Ojea Quintana urged the government of Myanmar to investigate human rights abuses [JURIST report] and improve its rights record. In May, Myanmar began releasing as many as 15,000 prisoners [JURIST report] as part of an amnesty program after a visit from a special envoy from the UN secretary-general, but rights groups claim the government has not gone far enough.




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Supreme Court to rule on criminal fines, sentencing
Jaclyn Belczyk on November 28, 2011 10:50 AM ET

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[JURIST] The US Supreme Court [official website] granted certiorari [order list, PDF] Monday in five cases. In Southern Union Co v. United States [docket], the court will determine whether the Fifth and Sixth Amendment [text] principles that the Supreme Court established in Apprendi v. New Jersey [opinion] and its progeny apply to the imposition of criminal fines. Apprendi requires that "any fact" other than that of a prior conviction "that increases the penalty for a crime beyond the prescribed statutory maximum must be submitted to a jury, and proved beyond a reasonable doubt." The US Court of Appeals for the First Circuit held [opinion] that the Apprendi rule does not apply to the imposition of statutorily prescribed fines.

In Vasquez v. United States [docket], the court will determine whether the US Court of Appeals for the Seventh Circuit violated the Supreme Court's precedent on harmless error when it focused its harmless error analysis [opinion, PDF] solely on the weight of the untainted evidence without considering the potential effect of the error (the erroneous admission of trial counsel's statements that his client would lose the case and should plead guilty for their truth) on the jury at all. The court will also determine whether the Seventh Circuit violated Vasquez's Sixth Amendment right to a jury trial by determining that he should have been convicted without considering the effects of the district court's error on the jury that heard the case.

In Christopher v. Smithkline Beecham Corp [docket; cert. petition, PDF], the court will determine (1) whether deference is owed to the Secretary of Labor's interpretation of the Fair Labor Standards Act (FLSA) [text, PDF] outside sales exemption and related regulations; and (2) whether the Fair Labor Standards Act's outside sales exemption applies to pharmaceutical sales representatives. The US Court of Appeals for the Ninth Circuit ruled [opinion, PDF] that pharmaceutical sales representatives are exempt from the FLSA overtime-pay requirement.

In the consolidated cases of Dorsey v. United States [docket] and Hill v. United States [docket; cert. petition, PDF], the court will consider whether the district court erred in not sentencing the defendant-petitioner pursuant to the Fair Sentencing Act of 2010 [materials] where petitioner was sentenced on December 2, 2010, after the effective date of the FSA and the amendments to the sentencing guidelines mandated by the FSA. The Seventh Circuit ruled [order, PDF] in Hill that "the relevant date for determining whether the Act applies is the date of the offense conduct, rather than the date of sentencing."




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Bahrain king orders commission to study report on rights violations
Jennie Ryan on November 28, 2011 9:51 AM ET

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[JURIST] Bahraini King Hamad bin Isa Al Khalifa [official website] has ordered a special commission [BNA report] to look into recommendations made following an independent investigation into the alleged crackdown on pro-democracy protesters in the country, the official state media reported Saturday. The announcement follows a report [JURIST report] released last week by the Bahrain Independent Commission of Inquiry (BICI) [official website] that Bahrain authorities used excessive force and tortured detainees involved in the pro-democracy demonstrations earlier this year. The BICI found that the Bahraini government was unprepared to respond to the situation that arose when demonstrations began in the country. Among the numerous recommendations included in the report, the BICI suggested that the nation
establish a national independent and impartial mechanism to determine the accountability of those in government who have committed unlawful or negligent acts resulting in the deaths, torture and mistreatment of civilians with a view to bringing legal and disciplinary action against such individuals, including those in the chain of command, military and civilian, who are found to be responsible under international standards of—superior responsibility.
The special commission is set to evaluate the BICI report and make its own recommendations [AP report] by February of next year.

Last week, the Bahrain government admitted the use of excessive force [JURIST report] in the protests. This admission, which was made in anticipation of the independent BICI report, was a reversal of the government's previous defense of its actions [CNN report]. In June, Khalifa announced that an independent commission would investigate human rights violations [JURIST report] related to the country's pro-democracy protests. Earlier that month, UN Office of the High Commissioner for Human Rights (OHCHR) [official websites] announced that Bahrain agreed to permit a UN commission [JURIST report] to investigate human rights violations related to protests. In April, human rights organizations including Human Rights Watch (HRW) and Doctors Without Borders (DWB) [advocacy websites] criticized Bahrain for rampant human rights abuses [JURIST report] related to anti-government protests.




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