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High court to look at state immigration laws
Breaking Legal News | 2011/12/12 11:01
The Supreme Court has agreed to rule on Arizona’s controversial law targeting illegal immigrants.

The justices said Monday they will review a federal appeals court ruling that blocked several tough provisions in the Arizona law. One of those requires that police, while enforcing other laws, question a person’s immigration status if officers suspect he is in the country illegally.


The Obama administration challenged the Arizona law by arguing that regulating immigration is the job of the federal government, not states. Similar laws in Alabama, South Carolina and Utah also are facing administration lawsuits.


The court now has three politically charged cases on its election-year calendar. The other two are President Barack Obama’s health care overhaul and new electoral maps for Texas’ legislature and congressional delegation.


CA same-sex marriage ban gets another day in court
Breaking Legal News | 2011/12/09 13:15
The sponsors of California's gay marriage ban renewed their effort Thursday to disqualify a federal judge because of his same-sex relationship, but they met a skeptical audience in an appeals court panel.

It's the first time an American jurist's sexual orientation has been cited as grounds for overturning a court decision.

Lawyers for a coalition of religious conservative groups told a three-judge panel of the 9th U.S. Circuit Court of Appeals that Chief U.S. District Judge Vaughn Walker should have revealed he had a long-term male partner before he presided over a trial on the measure's constitutionality. He also should have stated whether he had any interest in getting married, the lawyers said.

Because he did not, Walker's impartiality stands in doubt and the decision he ultimately made to strike down Proposition 8 as a violation of Californians' civil rights must be reversed, said Charles Cooper, an attorney for the ban's backers.

"In May 2009, when Judge Walker read the allegations of the complaint, he knew something the litigants and the public did not know: He knew that he, too, like the plaintiffs, was a gay resident of California who was involved in a long-term, serious relationship with an individual of the same sex," Cooper said. "The litigants did not have any knowledge of these facts, and it appears that Judge Walker made the deliberate decision not to disclose these facts."


Bank of America settles mortgage suit for $315 mln
Breaking Legal News | 2011/12/06 10:58
Bank of America agreed to pay $315 million to settle claims by investors that they were misled about mortgage-backed investments sold by its Merrill Lynch unit.

The settlement was disclosed in court papers filed late Monday in U.S. District Court in Manhattan and requires the approval of a judge.

The class action lawsuit was led by the Public Employees' Retirement System of Mississippi pension fund. The fund claimed that the investments were backed by poor quality mortgages written by subprime lenders Countrywide Financial Corp., First Franklin Financial, and IndyMac Bancorp, a bank that failed in 2008.

The settlement represents another attempt by Charlotte, North Carolina-based Bank of America Corp. to put its legal issues behind it. In the first half of the year alone the bank put up $12.7 billion to settle similar claims from different groups of investors.

U.S. District Judge Jed Rakoff has to approve the settlement, something that could prove difficult since the settlement includes no admission of guilt from Bank of America.

Just last week, Rakoff struck down a $285 million settlement that Citigroup Inc. reached with the Securities and Exchange Commission. The settlement would have imposed penalties on Citigroup even as it allowed the company to deny allegations that it misled investors.


High court to hear suit over Cheney event arrest
Breaking Legal News | 2011/12/05 10:17
The Supreme Court said Monday it will hear an appeal from Secret Service agents who say they should be shielded from a lawsuit over their arrest of a Colorado man who confronted Vice President Dick Cheney.

The justices will review a federal appeals court decision to allow Steven Howards of Golden, Colo., to pursue his claim that the arrest violated his free speech rights. Howards was detained by Cheney's security detail in 2006 after he told Cheney of his opposition to the war in Iraq.

Howards also touched Cheney on the shoulder, then denied doing so under questioning. Appellate judges in Denver said the inconsistency gave the agents reason to arrest Howards.

Even so, the appeals court said Howards could sue the agents for violating his rights — an unusual twist that the agents and the Obama administration said conflicts with other appeals court decisions and previous high court rulings in similar cases.

Justice Elena Kagan is not taking part in the case, probably because she worked on it while serving in the Justice Department.


Pa. capital takeover challenged in federal court
Breaking Legal News | 2011/12/02 11:04
The state takeover of Pennsylvania's financially troubled capital city received a fresh challenge Thursday, as three Harrisburg residents filed a federal lawsuit calling it an unconstitutional violation of their rights and asking for it to be stopped.

The suit names Gov. Tom Corbett, who signed a law on Oct. 20 enabling an unprecedented takeover of Harrisburg, and the Corbett appointee who, if confirmed, would have broad authority to force the city to pay down a massive debt tied to its trash incinerator.

The lawsuit was filed by a former mayoral candidate, a firefighters' union president and a religious leader. It alleges that the law and the state's takeover violate the plaintiffs' constitutional rights to due process and equal protection.

A Corbett administration spokeswoman said she had not seen the lawsuit and could not immediately comment.

The suit is the latest twist in a battle over who will end up footing the $300 million incinerator debt.

The first attempt to stop the takeover failed last week when a federal bankruptcy judge threw out a petition by a divided City Council to get federal bankruptcy protection for Harrisburg. The judge said the city had been legally barred by a separate state law — signed June 30 by Corbett — from seeking bankruptcy protection and, in any case, had no authority to go over the mayor's head to file it.


High court to review fine for mercury storage
Breaking Legal News | 2011/11/28 09:32
The Supreme Court will consider throwing out an $18 million penalty against Texas-based Southern Union Co. for illegally storing mercury at a rundown building in Rhode Island.

The justices said Monday they will hear the natural gas company's appeal of the criminal penalty that was imposed by a federal judge and upheld by an appeals court.

What makes the case unusual is that the company is challenging the size of the penalty under a line of Supreme Court cases concerning prison sentences.

Southern Union had used the building in Pawtucket to store outdated mercury-sealed gas regulators that it removed from customers' homes. The mercury was initially removed and shipped to a recycling center. But when that work stopped, the regulators and loose mercury were left to accumulate inside the building.



Thomas, Kagan asked to sit out health care case
Breaking Legal News | 2011/11/28 09:31
Conservative interest groups and Republican lawmakers want Justice Elena Kagan off the health care case. Liberals and Democrats in Congress say it's Justice Clarence Thomas who should sit it out.

Neither justice is budging — the right decision, according to many ethicists and legal experts.

None of the parties in the case has asked the justices to excuse themselves. But underlying the calls on both sides is their belief that the conservative Thomas is a sure vote to strike down President Barack Obama's health care law and that the liberal Kagan is certain to uphold the main domestic achievement of the man who appointed her.

The stakes are high in the court's election-year review of a law aimed at extending coverage to more than 30 million people. Both sides have engaged in broad legal and political maneuvering for the most favorable conditions surrounding the court's consideration of the case.

Taking away just one vote potentially could tip the outcome on the nine-justice court.

Republican lawmakers recently have stepped up their effort against Kagan, complaining that the Justice Department has not fully revealed Kagan's involvement in planning the response to challenges to the law. Kagan was Obama's solicitor general, the administration's top Supreme Court lawyer, until he nominated her to the high court last year.



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