Entries Tagged as 'Legal'

As Kagan Joins, Federal Courts’ Roles Rise In Importance

by Ron Elving

This weekend, Elena Kagan was sworn into the elite club of 112 who have served on the U.S. Supreme Court. The moment was duly noted across all news media, in large part because Kagan is just the fourth woman in the club.

But journalists also pounce on new appointments to the High Court in part to correct our perennial neglect of the judicial system. By far the preponderance of political journalism spilling out of Washington is devoted to the White House and Capitol Hill. As a rule, we pay attention to the courts when they interfere with something the other branches are trying to do.

This summer, federal judges have once again been horning in on issues of great interest and high stakes. Gay marriage. Immigration. The health care law. The post-BP moratorium on deepwater drilling. Each of these decisions will be reviewed by federal courts of appeal and ultimately by the U.S. Supreme Court.

But for that reason alone they will be generating news, inflaming public opinion and determining the direction of our politics, economics and culture.

Although most of the federal judiciary labors in lofty obscurity, at moments such as these one man or woman in a black robe can make an incalculable difference. Governors and senators and others in public life can only dream of such moments of influence.

Consider that on one day last week, one federal judge in San Francisco issued an opinion that invalidated the best known voter initiative of recent years: Proposition 8 on the 2008 California ballot, which overturned the state’s recognition of gay marriage.

Presenting extensive findings of fact from the trial before him, U.S. District Court Judge Vaughn Walker noted that defenders of Proposition 8 had scarcely attempted to refute these findings. In fact, the Prop 8 defense in its entirety was so cursory as to suggest its attorneys scarcely thought the trial court level was important. Their eye was on the friendlier venues of the U.S. Court of Appeals for the 9th Circuit and the U.S. Supreme Court.

But if liberals and libertarians were heartened by Walker, they were equally gratified one week earlier by the ruling of U.S. District Court Judge Susan Bolton, who kicked out the key pillars of an Arizona law attempting to crack down on illegal immigration. Bolton found fault in that law’s provisions allowing state and local officials to question the immigration status of people they deemed suspicious — for whatever reason. The requirement that residents who ran afoul of such suspicion produce papers proving their immigration status was also spiked by the judge.

Bolton, like Walker, knew well how every word she put to paper would be scrutinized, analyzed and politicized. No doubt the same could be said for other judges bringing a more conservative viewpoint to bear on equally significant issues in recent days.

First of these was federal District Court Judge Martin Feldman of Houston, who spiked the administration’s six-month moratorium on oil-and-gas drilling in the Gulf of Mexico. The administration may well have thought the argument for shutting down new explorations in the Gulf was open and shut in the wake of the BP Deepwater Horizon debacle. But if the shutdown was a no-brainer for environmentalists and industry critics, business folks in the Gulf states seemed to see it primarily as a short-term job killer and a long-term cloud over the economic future of the region.

Liberals were swift to note that Judge Feldman had a portfolio of stock holdings in the oil and gas sector, one that might well suffer in the event of a long-term slowdown in Gulf energy production. They also noted that the relevant federal appeals court, the 5th Circuit in New Orleans, was dominated by judges with business interests much like Feldman’s.

But the judge’s ruling stands, and is likely to stand longer than the Obama administration stands behind its six-month moratorium.

Similarly, in the same week as the Prop 8 ruling, supporters of the Obama health care law were incensed that U.S. District Judge Henry Hudson in Richmond had approved Virginia’s standing to sue the federal government over the enforcement of provisions in that law. Defenders of the new health law had hoped that Hudson might uphold the historic principle of federal pre-eminence, a central issue since the founding of the Republic.

Many have noted the symbolic power of having this challenge emanate from Richmond, the capital of the Confederacy in the 1860s and the epicenter of “massive resistance” to the school integration decision of the Supreme Court in the 1950s. State’s rights may be a heading in a history textbook for some parts of the country, but they remain a mainstay of current events in the South.

Talk of nullification — the asserted right of states to ignore federal laws as they choose — has re-emerged as President Obama has pursued an activist agenda. In Texas and Tennessee, candidates for statewide office have allowed references to secession to enter their campaign vocabularies.

While no one expects another Civil War, we are clearly heading into the most significant round of state-federal confrontations we have seen since the 1960s. And that struggle has already been joined in courtrooms around the country, where it will largely be fought.

Small wonder then that Republicans in the Senate have made resistance to the judicial nominees of the new president such a salient element of their mission in these past 18 months.

To be sure, the president has seen both his nominees to the Supreme Court approved with little suspense. But the Senate has yet to allow a vote on most of the 85 nominees he has sent up for federal judgeships at the district and appeals court levels.

Same old partisan story? Not quite. The last five presidents, three of them Republicans, have seen four out of five of their appointments confirmed.

Democrats under Majority Leader Harry Reid have not been willing to call the minority’s bluff on this tactic by demanding real-time filibusters with all-night sessions and cots in the lobbies. No one wants the delay, the drama or the indignity.

But as the number of Democrats in the Senate shrinks in the November election, those who remain will need to reconsider what means are necessary to install their president’s choices in the increasingly powerful job of judge.

Original Story on NPR.org

Bait and switch rates?

Yesterday (Monday 6-Jul-2010) at 4:15pm I stopped by Gulf Winds Federal Credit Union to open up an IRA Certificate of Deposit; I’d been in the process of transferring money from one institution to another (and it took much longer than it should have — but since two institutions were involved, it’s hard to know which was responsible for the delay).

Anyway, I ended up having to wait 45 minutes to be helped; that gave me plenty of time to look over the posted rate board — and I’d decided that the 2.09% for a 24-month IRA-CD looked reasonable (I’d have preferred 18 months or less, but I wanted a reasonable return rate, and I don’t really expect the economy to start to rebound for several years).

The customer service representative that helped me (the “Financial Services Representative”) ask me which CD I was interested in and I told him — the 24-month 2.09% APR; he immediately said, that the 24-month IRA-CD was 1.97%, not 2.09% — that it had changed on Friday 2-Jul-2010 and they simply hadn’t gotten around to posting it on their rate board.

WTF?

I’ve long been under the impression that financial institutions understand the importance of posting accurate rate information — and I thought most any ethical institution understands the legal (even if they don’t understand the moral) implications of posting fraudulent information.

When I got home I filed complaints with the State of Florida Attorney General’s office (in Tallahassee, FL) and the National Credit Union Administration, Region III office (in Atlanta, GA) requesting that they investigate the business practices of Gulf Winds Federal Credit Union.



Post Note: The VP of Operations contacted me this morning (7-Jul-2010) and Gulf Winds Federal Credit Union will honor the rate as posted yesterday (for me at least).

A Pledge of No Privacy

Part of the intent of the Gramm-Leach-Bliley Act (aka the Financial Modernization Act of 1999) and the rules and regulations for federal banking and credit unions was to put into effect requirements on financial institutions1 to safe-guard the personal, confidential, and financial information of their customers2.

On of the main parts of the law was that it required institutions to provide customers with their privacy policy which explained their information sharing and information safeguarding.  However, because the law was heavily effected by lobbying, and even reviewed by large financial institutions before being considered by congress there are cases where institutions aren’t really subject to many limitations on what they can do with your information.

You might find it interesting that every large financial institution I have dealt with since the law was passed (ie Chase, Citi, Bank of America, Barclay, etc) have specifically allowed for an “opt-out” of the sharing for personal information for use both inside and outside the company (effectively limiting the information to be used only as require by law and as necessary for the maintenance of your account).

However, you have to be very careful about smaller institutions.

Credit Unions are in general very customer oriented, and most the time “do the right thing” — particularly when it comes to building a solid, long term customer relationship based on trust and respect.  However, take a look at the “Privacy Pledge” for Gulf Winds Federal Credit Union3 (formerly Monsanto Employees Credit Union) http://www.gogulfwinds.com/page/privacy — WOW — that’s a really nice pledge to no privacy.  In essence what it says is that they’ll use any information they collect on you (both public and non-public) and use it to the full extent allowed by law (I’d guess to profit from) and won’t allow a customer (or consumer) to “opt-out”.

How many ways can you say “non-customer focused”???

The moral of this, don’t assume you’re better off dealing with small “local” financial providers that might seem to have your interests in mind — you might actually end up getting better over all service and respect from a much larger financial provider.

I for one will be re-assessing my financial relationships; and likely terminating a few — and trying to convince congress to stand up to the financial services companies and actually pass a law that protects me.

REFERENCES:

In Brief: The Financial Privacy Requirements of the Gramm-Leach-Bliley Act

NOTES:

1 The Financial Modernization Act of 1999 apply to banks, credit unions, securities firms, and insurance companies as well as a number of other type of companies providing financial services to consumers and is part of a larger framework of federal, state, and local banking laws.

2 The Financial Modernization Act of 1999 privacy requirements apply to customers; which are defined to be consumers (not business) with which the institution has a “long term” relationship (ie holds an account), and does not necessarily cover all consumers who might interact or transact with an institution.

3 You can find the same type of non-privacy policy at a number of smaller financial institutions; Gulf Winds is particularly sad because they refer to it as a “Privacy Pledge” rather than just a “Privacy Policy”.

“Honest Services” Law

Last Thursday the Supreme Court greatly narrowed the scope of a federal fraud law frequently used to prosecute white-collar criminals.

And guess who might benefit from the decision…

Enron CEO Jeffrey Skilling among a host of others.

The Supreme Court ruling was the result of an appeal Jeffery Skilling brought before the court.  Skilling actually ask that the “honest services” law be struck down as unconstitutional as well as asking for a new trial since he claimed he didn’t get a fair trial in Houston (I personally don’t recall him requesting a change of venue — so apparently he felt he’d fair better there than most other places people felt he’d defrauded them out of their life savings).

Justice Ruth Bader Ginsburg’s written option stated that prosecutors could continue to seek honest services fraud conviction in cases where their is sufficient evidence to show defendants accepted bribes or kickbacks.  Of course Jeffery Skillings isn’t accused of accepting bribes or kickbacks, just filling his pockets with money at the expense of his investors and customers by knowingly manipulating the energy market.

The court did not specifically throw out any of the nineteen counts against Skilling, nor did they agree to a new trial.

I’m sure former Illinois Gov. Rod Blagojevich, former Alabama Gov. Don Siegelman, and ex-HealthSouth CEO Richard Scrushy, former newspaper magnate Conrad Black, former Alaska lawmaker Bruce Weyhrauch as well as other will be quick to see what this new ruling might do to help them.

Justices Sonia Sotomayor, Stephen Breyer, and John Paul Stevens were the dissenters; and I once again have to ask what box of cereal Justice Ginsberg clipped her law degree from.

I know, this is America, land of the free; but where the more cash you have, the more “equitable” the law.

Limited liability resulting from the Deepwater Horizon incident?

Right away after the explosion of the Deepwater Horizon Swiss company Transocean Ltd moved to have their liability for damages limited to the cost of the “sunken ship” ($27 million) citing an 1851 law that says the owner of a sunken vessel is liable only for its value after the accident.

Transocean expects to receive $560 million in insurance, so subtracting what they consider their maximum liability they’d just about meet their three year revenue projection under the BP contract.

Hmm…

Many of the judges are recusing themselves from hearing cases involving the oil spill; but I’d say if a federal judge in Houston makes a ruling we’ve certainly found a judge that can no longer recuse himeself (though he might be a candidate for impeachment)… my guess is Transocean will not get their ruling quickly, and likely will not get a ruling they like ever.

Transocean CEO Steven Newman told investors in addition that its contract with BP holds BP entirely responsible for all damages and liability from the spill.

I guess Newman isn’t totally confident of the petition filed in federal court, or his contractual liability limits so he’s working both ends… and is probably worried that a review will show negligence on his company’s part — which could cause a judge to throw out any and all liability limits.

BP, Halliburton, and Transocean are each responsible, and each of them should (and hopefully will) be held accountable for this mess — and their massive profits will be used to undo the damage their greed has caused.

As I’ve said before — make the problem expensive enough for them to allow to continue; and any future problem much more expensive for them to clean up — and we won’t have to worry much about the spill continuing… or ever happening again (just take highest quarter’s profits from the last year, divide by 90 — and that’s the daily fine).

Major League Sports – Major League Anti-Trust

Yesterday the Supreme Court of the United States of America ruled against the Nation Football League in a case concerning the NFL’s decision to give Reebok the exclusive merchandising license for all thirty-two NFL teams.

The case was filed against the NFL by Bob and Ron Kronenberger — the owners of American Needle, founded in 1918 by their grandfather who originally approached the Chicago Cubs in 1946 with the idea of selling fan caps similar to those worn by the players.  The first lot sold out in one day; the second in less time — and a (highly profitable) tradition of selling logo’d sports items for professional teams was born.

The Supreme Court ruling isn’t entirely clear on the scope of the anti-trust actions the NFL engaged in, but chief justice Stevens likened the NFL to a cartel.  The case was sent back to lower courts to resolve several issues.

I guess the fact that a price jump of $19 to $30 for a cap didn’t help the NFL’s case in arguing that no harm was done to the public by monopolizing the licensing.

The courts ruling, and subsequent lower court rulings (which may involve jury rulings) will undoubtedly reshape the landscape of all professional sports licensing — hopefully benefiting the consumer, and curbing the greed and lavish profits.

Due Process Dies

On Monday 17 May 2010 the Supreme Court of the United States of America handed down a 7-2 decision that affirms the ability of the federal government to hold inmates they deem as “sexually dangerous” in the future indefinitely.

Adolf Hitler, Benito Mussolini, and Joseph Stalin surely stir in their graves at the finally winning the wars they started so long ago.

In the last decade American have lost civil right after civil right; legal protection after legal protection — all in the name of making ourselves “safe”… but in fact all we are doing is making ourselves slaves.

Let me point out that in the United States, a person is found guilty by a trial of their peers, and a judge passes sentence for the crime… when the period of internment expires the criminal has paid his “debt” to society.  Apparently we now believe that the United States government [though the Department of Justice] has the ability to adjust the term of a sentence indefinitely.

How long is it until the United States government just dispenses with the formality of a trial all together, and locks away individuals who they say are a threat… oh wait, that’s already happening — at Guantanamo Bay!

NOTES:

Justice Stephen Breyer wrote the court’s majority opinion stating that it is “a ‘necessary and proper’ means of exercising the federal authority that permits Congress to create federal criminal laws, to punish their violation, to imprison violators, to provide appropriately for those imprisoned and to maintain the security of those who are not imprisoned by who may be affected by the federal imprisonment of others.”

The judgment reversed a lower court ruling that said Congress overstepped its authority in allowing indefinite detentions of prisoners considered “sexually dangerous.”

“The Federal Government, as custodian of its prisoners, has the constitutional power to act in order to protect nearby [and other] communities from the danger such prisoners may pose.”

In order to do it, however, the government must prove the following:

1. The individual has previously “engaged or attempted to engage in sexually violent conduct or child molestation.”

2. He/She currently “suffers from a serious mental illness, abnormality, or disorder,”

3. The prisoner “as a result of” that mental illness, abnormality, or disorder is “sexually dangerous to others,” in that “he would have serious difficulty in refraining from sexually violent conduct or child molestation if released.”

A hearing, during which the individual would remain incarcerated, would then determine whether or not he/she could be released.

“If the Government proves its claims by ‘clear and convincing evidence,’ the court will order the prisoner’s continued commitment,”

Justice Clarence Thomas and Justice Antonin Scalia dissented.  Justice Thomas argues that Congress can only pass laws that deal with the federal powers listed in the Constitution (States Right) and stated that nothing in the Constitution “expressly delegates to the Congress the power to enact a civil commitment regime for sexually dangerous persons, nor does any other provision in the Constitution vest Congress or the other branches of the federal goverment with such a power.”

The Supreme Court ruling upholds the Adam Walsh Chile Protection and Safety Act signed in 2006 by George W Bush.

US Drug Policy

I certainly don’t have a solution to the drug problem in the US; but clearly the US government doesn’t either.

History teaches us many lessons, and when we ignore those lessons we often find ourselves repeating the errors of the past.

Prohibition didn’t work.

We make arbitrary decisions about which drugs are acceptable are which ones are not (we have legalized alcohol, but not drug in social use for much longer).

The Criminal Justice Policy Foundation has some interesting views on US drug policy:

The United States is at a crossroads in its drug policy. In our effort to quell the drug trade, we have greatly increased patrol and inspection on our nation’s borders. We have increased arrests for violation of drug laws and lengthened sentences. We have stripped away the rights of drug offenders and introduced drug testing in our nation’s schools and workplaces. We have poured billions of dollars into overseas anti-drug paramilitary operations that commit violent human rights abuses. And in the process of trying to eradicate illicit coca crops, we have destroyed over a million acres of land in Colombia alone.

Since 1990, more than half of the federal prisoners in America are serving time for drug offenses. The availability and purity of drugs has steadily increased over the past twenty-five years. The violence in the drug trade remains excruciatingly high and surges from year to year and city to city. Meanwhile, there remain a myriad of social issues as a result of drug abuse.

The use of drugs, and the enforcement of the anti-drug laws, effects all subpopulations in the U.S., all sectors of the economy, and many aspects of the legal system. Whether we are talking about violence, poverty, race, health, education, community development, the environment, civil liberties or terrorism, the illegal drug market is an important factor in the conversation.

We have tried to use force, prohibition and incarceration to control the drug market, but our efforts have actually led to a more efficient drug trade and a hugely profitable drug market. It is time to rethink our strategy and redefine our goals.

This section holds articles and speeches given by CJPF that address drug policy in all of its forms and effects. In this, we strive to provide a comprehensive framework for rethinking the war on drugs.

You can read the complete statement and peruse their web site at

Criminal Justice Policy Foundation

And if you’re wondering, I found their site through an article from NPR on taxing cocaine rather than (or in addition to) marijuana.

NPR

I’m not sure I trust Canonical…

I received this email from Canonical (the company that supports Ubuntu) yesterday (I’ve neutered the anchor on the link)

From: landscape-team@canonical.com
Subject: You have been invited to the Landscape account canonica
Date: Tue, 23 Mar 2010 12:07:48 +0000 (GMT)

You’ve been invited to the following Landscape account:

Canonical – candidates (canonica).

Please click the following URL to accept the invitation:

https://landscape.canonical.com/accept-invitation/GvEf6S0tBkpWD0YOcH8NQsKAe2Yh5H

Then a few hours later I received this email (I’ve removed hard breaks so that it reads a little easier as a blockquote)

From: Jamshed Kakar <landscape-manager@canonical.com>
Subject: Apology for mistaken ‘Canonical Landscape Invitation’ email
Date: Tue, 23 Mar 2010 20:03:23 +0000 (GMT)

Hi,

A few hours ago one of our systems accidentally sent you an invitation for a trial account in Landscape.  The invitation was sent to you by mistake as a result of incorrect data in our contact database.

We’re working hard to ensure that this sort of thing won’t happen again.  Please accept our sincere apologies for this accident.

Regards,
Jamshed Kakar
Landscape Project Manager

The only conclusion that I can draw is that information I used to apply for a job with Canonical a month ago or so was mishandled and made available for (mis)use by others in the company.  Given that this has happened (clearly my information has been mishandled) it raises a concern as to how much Canoncial can be trusted handling any potentially sensitive or personal information…

Consider credit card numbers provided to them for support; contact information for sales or employment… the list goes on.

My advice — don’t trust any company with personal information that can obviously not be trusted to properly handle and safe guard that information.

I have requested that Canonical immediately remove any and all of my personal information from all of their databases (I certainly wouldn’t feel comfortable being employed by or doing business with such a company), maybe you should do the same.

Brink’s Pill Heist

On the 17th of March in what could well become the basis of the next Hollywood crime caper movie, $75 million worth of pharmaceuticals was stolen from a warehouse in Enfield, MA from Eli Lilly & Co.

The thieves disabled the alarm system, scaled an exterior brick wall, cut a hold in the roof, rappelled inside, loaded pallets of merchandise onto an awaiting vehicle, and left with a semi-truck full of stolen goods.

Prozac, Cymbalta, Zyprexa according to Eli Lilly no narcotics or painkillers were stored in this ware house.

Why worry about drugs from abroad when it seems the drug trade is very much alive right in our own back yard.