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DOJ Challenges Charleston Newspaper Deal
Breaking Legal News | 2007/05/25 01:59

Three years after the parent company of The Charleston Gazette purchased its capital city rival, the Charleston Daily Mail, the U.S. Department of Justice has stepped in, declaring the sale illegal. The Justice Department filed a lawsuit May 22 in U.S. District Court in Charleston, alleging the sale violates antitrust laws. It seeks an order requiring the Daily Gazette Co., which owns the Gazette, and Denver-based MediaNews Group Inc., which owned the Daily Mail, to undo the $55 million deal.

The 19-page complaint alleges the Daily Gazette Co. bought the Daily Mail in May 2004 intending to shut it down and create a newspaper monopoly in Kanawha County. The Justice Department said the Daily Gazette Co. suspended those actions in December 2004 but only after the company learned the federal agency had launched an investigation into the newspaper company's maneuvers.

The Justice Department's suit seeks to undo completely the 2004 sale and restore the Daily Mail to its previous competitiveness.

"When the Daily Gazette Co. acquired the Daily Mail with the aim of shutting it down, readers in the Charleston area and the advertisers who valued access to them, were denied the benefits of competition," Assistant Attorney General Thomas O. Barnett said in a news release. Barnett works in the Justice Department's Antitrust Division.

"The Department's investigation saved the Daily Mail from this unlawful termination, and this action seeks to remedy the competitive damage already done and to prohibit the parties from resuming an anticompetitive course in the future."

Trip Shumate, chief financial officer for Charleston Newspapers, which serves as the umbrella company handling the business side of the Gazette and Daily Mail, said the Daily Gazette will "vigorously defend" the Justice Department's lawsuit.

"We will win in court if it goes there," he said.

Messages left for Dean Singleton, MediaNews' vice chairman and CEO, and MediaNews President Joseph Lodovic IV were not returned.



US court upholds bulk of verdict in Adelphia case
Breaking Legal News | 2007/05/24 10:21

An appeals court on Thursday upheld the fraud convictions of Adelphia Communications Corp. founder John Rigas and son Timothy almost entirely, although the judges tossed out one count they were found guilty on and ordered the pair to be resentenced. Both men had appealed their July 2004 convictions on charges of bank fraud, securities fraud and conspiracy for their roles in concealing loans and stealing millions from the cable operator.

The U.S. Court of Appeals for the Second Circuit affirmed the convictions except for the guilty verdict on one count of bank fraud apiece.

"We reverse defendants' conviction on (that count) and we remand for an entry of a judgment of acquittal on this count and for resentencing," the court said.

The Rigases, who both have been sentenced by a Manhattan federal court judge to lengthy prison terms, have remained free on bail while they have pursued their appeals.



Supreme Court Ruling Splits Anti-abortionists
Law Center | 2007/05/24 10:20

A supreme court decision on abortion widely seen as the most important legal victory for the religious right in years has opened up a rift within the anti-abortion movement. In a full-page advertisement in a Colorado newspaper yesterday, the leaders of four anti-abortion groups accused a powerful evangelical leader of misleading his fellow Christians on the court verdict. The unusual attack on James Dobson, the founder of Focus on Family and arguably one of the most powerful figures on the religious right, comes only days after the death of the Rev Jerry Falwell, a leading conservative.

The breach prompted immediate speculation about cracks in what has until now been a remarkably united movement.

In their ad, the leaders of the four anti-abortion groups say Mr Dobson was wrong to see last April's supreme court decision as a victory. The verdict banned a particular procedure for terminations later in pregnancy, which the anti-abortion movement has labeled "partial birth abortions".

The campaign against that particular procedure has been a rallying point in the anti-abortion movement. Last month's decision was also seen as an indication of a shift to the right on the supreme court following two appointments by President Bush. Opponents of abortion now believe it could soon be possible to overturn the decision legalizing abortion.

However, yesterday's ad argues that the ban on late abortions will not reduce terminations. Instead, the ad says the ban will simply encourage doctors to find other methods for such terminations.

"Dr Dobson, you mislead Christians claiming this ruling will 'protect children.' The court granted no authority to save the life of even a single child," the ad said. It also called on Mr Dobson to repent.



Democrat hopefuls face critical vote on Iraq
Politics | 2007/05/24 10:18

The U.S. House advanced a final $120 billion Iraq war spending bill today that would keep military operations afloat through September.

The bill was a major concession by Democrats who wanted to include a timetable for U.S. troop withdrawals, but relented because they didn't have enough votes to override another presidential veto. The House and Senate both planned to approve the measure by the end of the day.

For his part, Bush agreed to accept some $17 billion in added spending so long as there were not restrictions on the military campaign.

"I hate this agreement," said Rep. David Obey, D-Wis., chairman of the Appropriations Committee.

Obey said the deal was the best that Democrats could manage because "the White House is in a cloud somewhere in terms of understanding the realities in Iraq."

The bill includes the nearly $100 billion that President Bush requested for military and diplomatic operations in Iraq and Afghanistan as well as billions in domestic spending, including $6.4 billion in hurricane relief and $3 billion in agricultural assistance.

Republicans were unhappy about the added domestic spending, but said they were relieved the final measure did not attempt to set a timetable on the war.

"We cannot and will not abandon the Iraqis to be butchered by these terrorists in their midst," said Rep. David Dreier, R-Calif. "And we cannot and will not abandon our mission just as real progress is starting to be made."

The hefty spending bill has become a lightning rod for political attacks on Bush and his handling of the deeply unpopular war, which has killed more than 3,400 U.S. troops and cost more than $300 billion. But it also has exposed a sharp divide among Democrats on how far Congress should go to end the war.

Democratic presidential contenders on Capitol Hill are vying for the anti-war vote, but at the same time do not want to appear as though they are turning their backs on the military.

"I believe as long as we have troops in the front line, we're going to have to protect them," said Sen. Joseph Biden, D-Del. "We're going to have to fund them."

Biden was alone among the potential Democratic candidates in immediately pledging his support for the bill.

Two front-runners, Sens. Hillary Rodham Clinton of New York and Barack Obama of Illinois, declined to say how they intended to vote on the measure.

Both have voted against binding timetables for troop withdrawals in the past, before public sentiment against the war hardened or they became presidential contenders. Last week, the two voted to advance legislation that would have cut off money for U.S. combat operations by March 31, 2008, cutoff.

Challengers Sen. Christopher Dodd of Connecticut and Rep. Dennis Kucinich of Ohio said they would oppose the measure because in their view it issued a blank check to President Bush on the Iraq war.

"Half-measures and equivocations are not going to change our course in Iraq," Dodd said in a statement. "If we are serious about ending the war, Congress must stand up to this president's failed policy now — with clarity and conviction."

While the measure does not include a timetable on the war, it does threaten to withhold U.S. aid dollars for Iraq if Baghdad fails to make progress on political and security reforms. The president, however, could waive that restriction.

Biden said that while he would vote for the measure, he disagreed with the approach because it could hamper the Iraqi government's ability to take on more responsibility.

Democratic leaders planned multiple votes in the House today to ensure the measure would ultimately pass because of disagreements among members on elements of the bill. One vote was to be on war funding, while another would be to approve the extra money for domestic and military-related projects.

While liberal Democrats were expected to vote against the war funds measure, GOP members were expected to make up for the losses. On the added spending, Democrats likely were to be unified in their support for the measure, overcoming GOP objections.



US House passes gasoline price gouging bill
Breaking Legal News | 2007/05/24 10:13

The US House of Representatives narrowly passed the Federal Price Gouging Prevention Act Wednesday, approving heavy criminal penalties for oil companies and individuals who take "unfair advantage" or charge "unconscionably excessive" prices for fuel. House leaders used an expedited legislative process, so the bill required a two-thirds majority and passed by 284-141. The Bush administration and opponents of the bill called it a vague form of price control. The White House said Wednesday that Bush's advisors would recommend he veto the bill if the Senate equivalent passes as well.

Last May, the House passed a similar bill, the Federal Energy Price Protection Act, that would have required the FTC to define price gouging within six months of the bill's final passage. That bill failed in the Senate.



Appeals court throws out mother's death sentence
Court Watch | 2007/05/24 07:21

A sharply divided Texas Court of Criminal Appeals threw out the death sentence Wednesday of a Beaumont woman convicted of killing her newborn son. The 5-4 ruling by the state's highest criminal court means that Kenisha Berry, 29, will serve a life prison term. The baby's body was found bound with duct tape in a Jefferson County trash bin. He remained unidentified for five years until Berry was identified as the mother of a newborn girl who was found alive but abandoned and covered with fire ants in a ditch in June 2003. A DNA test later showed that Berry was also the baby boy's mother.

A jury in Beaumont convicted her of capital murder and sentenced her to death.

The appeals court upheld her conviction but ruled that Jefferson County prosecutors misstated the special issue presented to jurors regarding Berry's likelihood of being a future danger to society.

In a Tarrant County case, the appeals court upheld the conviction and sentence of Sheldon Ward, 27, condemned for killing Nyanuer "Mary" Pal five years ago in Fort Worth. Ward's attorneys had raised 13 points of error from his trial.



Phila. smoking ban excluded from court ruling
Breaking Legal News | 2007/05/24 05:25

A court ruling that struck down a smoking ban in Allegheny County does not affect Philadelphia's anti-smoking ordinance. The Commonwealth Court decision this week dealt with whether municipalities have a legal right to limit smoking in restaurants, workplaces or other indoor areas, and concluded that the state Legislature assumed jurisdiction over smoking when it enacted the Commonwealth Clean Indoor Act in 1988. A section of that law said its provisions would supercede local regulations, but the law specifically exempted Philadelphia, allowing the City Council to regulate smoking inside city limits.

"I'm confident that the Commonwealth Court decision does not affect the authority of the city of Philadelphia to enact a smoking ban," City Solicitor Romulo L. Diaz Jr. said.



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