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Justices rule for defendants on money laundering
Breaking Legal News | 2008/06/02 08:51
The Supreme Court on Monday ruled against the government in two money laundering cases, making it more difficult for prosecutors to use an important weapon in the war on drugs and organized crime.

In a unanimous decision, Justice Clarence Thomas said that a money laundering case cannot be proven merely by showing that funds were concealed while being transported.

In a 5-4 ruling, Justice Antonin Scalia said that money laundering refers to profits of an illegal operation, not gross receipts. The court's interpretation is a narrow one opposed by law enforcement agencies.

Scalia said the narrow definition will not unduly burden authorities, who must show only that a single instance of unlawful activity was profitable.

In the cases of Efrain Santos and Benedicto Diaz, a federal judge and the 7th U.S. Circuit Court of Appeals in Chicago said that paying off gambling winners and compensating employees who collect the bets don't qualify as money laundering. Those are expenses, and prosecutors must show that profits were used to promote the illegal activity, the appeals court ruled in a decision affirmed by the Supreme Court.

In dissent, Justice Samuel Alito said that the court's ruling would frustrate congressional intent and "maim" a law that was enacted as an important defense against organized criminal enterprises.



Court refuses to consider fantasy baseball dispute
Breaking Legal News | 2008/06/02 08:50
The Supreme Court on Monday refused to step into a dispute between a fantasy sports business and professional baseball.

Without comment, the justices declined to hear the case involving a segment of the $1.5 billion fantasy sports industry in the United States, in which participants manage imaginary teams based on the real-life performances of professional players.

The lawsuit involves C.B.C. Distribution and Marketing Inc., a Missouri company unable to obtain a license from a subsidiary of Major League Baseball to use players' names in C.B.C.'s fantasy baseball games.

The Missouri company sued, saying it did not need a license to continue to sell its fantasy baseball games on its Web site.

The baseball players' union jumped into the case on the league's side, alleging a state law violation of the players' publicity rights — the ability to profit from the commercial use of a person's name.

A federal court and the 8th U.S. Circuit Court of Appeals in St. Louis ruled in favor of the fantasy baseball business, saying that enforcing state law rights would violate C.B.C.'s right of free speech protected by the First Amendment.

The National Football League Players Association supported professional baseball's request that the Supreme Court hear the case.



Recognition of gay marriages in NY faces battle
Breaking Legal News | 2008/05/30 03:28
Religious and social conservatives vowed Thursday to fight Gov. David Paterson's directive requiring state agencies to recognize gay marriages performed legally elsewhere, saying it flouts traditional values and is a big step toward legalizing same-sex unions in New York.

"The definition of marriage predates recorded history," said New York State Catholic Conference Executive Director Richard E. Barnes. "No single politician or court or legislature should attempt to redefine the very building block of our society in a way that alters its entire meaning and purpose."

Paterson issued a memo earlier this month saying that gay New Yorkers who marry where it is legal will have the right to share family health care plans, receive tax breaks by filing jointly, enjoy stronger adoption rights and inherit property.

He cited a February ruling in a New York Appellate Division court in which the judges determined that there is no legal impediment in New York to the recognition of a same-sex marriage.

Earlier this month, the California Supreme Court ruled that same-sex marriage in the nation's most populous state is legal. The ruling overturned a voter-approved ban on gay marriage.



Calif.: Same-sex marriages OK beginning June 17
Breaking Legal News | 2008/05/29 09:32
Barring a stay of a historic California Supreme Court ruling, same-sex couples will be able to wed in the state beginning June 17, according to a state directive issued Wednesday.

And such unions might soon be recognized at the other end of the country in New York, where the governor has directed state agencies to do so.

California said it chose June 17 because the state Supreme Court has until the day before to decide whether to grant a stay of its May 15 ruling legalizing gay marriage.

Gay-rights advocates and some clerks initially thought couples would be able to wed as early as Saturday, June 14. The court's decisions typically take effect 30 days after they are made.

The guidelines from Janet McKee, chief of California's office of vital records, to the state's 58 county clerks also contained copies of new marriage forms that include lines for "Party A" and "Party B" instead of bride and groom. The gender-neutral nomenclature was developed in consultation with county clerks, according to the letter.

"Effective June 17, 2008, only the enclosed new forms may be issued for the issuance of marriage licenses in California," the directive reads.

A group opposed to gay marriage has asked the court to stay its decision until after the November election, when voters are likely to face a ballot initiative that would once again define marriage as a union between a man and a woman. Passage of the initiative would overrule the Supreme Court.

Under the Supreme Court's regular rules of procedure, justices have until the end of the day June 16 to rule on the stay request, according to the memo sent by e-mail to county clerks. Lawyers involved in the marriage case have said previously the court could grant itself an extra 60 days to consider the stay.



Wisconsin Supreme Court reprimands one of its own
Breaking Legal News | 2008/05/29 09:32
The Wisconsin Supreme Court reprimanded one of its own Wednesday, giving Justice Annette Ziegler the lightest possible punishment for hearing cases involving a bank where her husband was a paid director.

It was the first time the state high court has taken such an action, and her colleagues could have suspended her or removed her from the bench.

Ziegler ruled in favor of West Bend Savings Bank in several cases she heard as a Washington County judge between 2001 and last year. The court said Ziegler's "serious and significant" offense diminished public confidence in the legal system.

The state's judicial code requires judges to withdraw from cases in which they have a significant financial interest that could raise questions about their impartiality.

Ziegler called her hearing of the cases an "inadvertent error."

"I appreciate that this matter is now concluded," she said in a statement. "I look forward to continuing to serve the people of Wisconsin."

Mike McCabe, director of the watchdog group Wisconsin Democracy Campaign, which filed the complaint, argued that suspension or removal from office would be more appropriate.

"The discipline will be seen by the public as nothing more than a slap on the wrist," McCabe said. "Clearly the court is operating under a cloud right now."

Ziegler, 44, began her 10-year term on the Supreme Court in August.



High court backs workers in race, age bias lawsuits
Breaking Legal News | 2008/05/28 08:46
To the surprise of civil rights advocates, the Supreme Court on Tuesday strengthened workplace anti-discrimination laws, ruling that employees who say they were punished for complaining of bias can sue for damages. In a pair of decisions, the court concluded that claims of retaliation are covered by long-standing civil rights laws, even though this kind of discrimination was not mentioned specifically in the statutes.

This expansion of employee rights stands in sharp contrast to a series of pro-business rulings limiting the rights of workers that were made last year by the Supreme Court.

Tuesday's decisions do not amount to a sharp change in the law. Most civil rights laws already protect employees against being punished for complaining of bias based on their race, religion, gender, national origin or age.

However, in both cases the court read an older law broadly to give employees more rights to sue for discrimination.



Tenn. man on death row despite high court ruling
Breaking Legal News | 2008/05/28 05:38
Multiple sclerosis has Paul House in a wheelchair. A tenacious prosecutor has him on death row, deemed too dangerous to be released two years after the U.S. Supreme Court said he likely isn't guilty.

That closely watched ruling, which made it easier for inmates to get new hearings on DNA evidence that emerges after their trials, and the fallout from it have left House in limbo while a prosecutor methodically battles every effort from the courts to have him retried.

Federal judges have done as the high court ordered: They reviewed his murder case and concluded new evidence raises reasonable doubt about his guilt. Not allowed to overturn the conviction, they took the extraordinary step of giving Tennessee a six-month deadline to bring House to trial or release him.

And still House, 46, is locked up in a Nashville prison.

An appeals court ruled in his favor this month, but that ruling also reset the 180-day countdown at zero.

U.S. District Judge Harry S. Mattice Jr. has scheduled a hearing for Wednesday to consider terms and conditions of House's release, but prosecutors are taking their time in setting a date for a new trial.

"The Supreme Court has said, 'You just got the wrong person.' You would think ... that there would be some respect for that situation," said U.S. Circuit Judge Gilbert S. Merritt, who has heard portions of House's case and believes he isn't guilty of murder.

District Attorney Paul Phillips said he plans to retry House with old evidence from the first trial and some new evidence he wouldn't describe. He promises he has "proof beyond a reasonable doubt that Mr. House is guilty or we would not be re-prosecuting him."

For House's mother, it's hard not to think the state is delaying on purpose.

"What I really think, and I'm not the only one, is they just want him to linger in there until he dies. Then it will all go away, they think," Joyce House said recently at her white ranch-style home in Crossville, a town of about 10,000 some 100 miles east of Nashville.

Phillips denied prosecutors are intentionally putting off the case and noted the inmate's doctor testified House could live for decades with his illness.

"They just don't want to admit they made a mistake," Joyce House said. "They're not the only state that's ever made a mistake."



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