Court upholds $185 million award against Argentina

Court News 2014/03/07 15:10   Bookmark and Share
The Supreme Court has upheld a British natural gas company's multimillion dollar award against the government of Argentina.

BG Group won $185 million through arbitration of a dispute with Argentina over investment in natural gas development. An arbitration tribunal said the company did not have to first submit the dispute to Argentine courts before arbitration could begin.

Argentina asked a U.S. court to throw out the award. The federal appeals court in Washington, D.C., sided with Argentina because it found that judges, not arbitrators, should decide where attempts to resolve the dispute should begin.

But the Supreme Court said Wednesday the arbitrators get to make that call and that they were correct to rule in favor of BG Group in this case.
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Appeals court moves BP forward in settlement dispute

Court News 2013/10/04 13:25   Bookmark and Share
The April 2010 blowout of BP's Macondo well off the Louisiana coast triggered an explosion that killed 11 workers on the Deepwater Horizon drilling rig and led to millions of gallons of oil spilling into the Gulf. Shortly after the disaster, BP agreed to create a $20 billion compensation fund that was administered at first by the Gulf Coast Claims Facility, led by attorney Kenneth Feinberg.

BP argued that Barbier and court-appointed claims administrator Patrick Juneau misinterpreted terms of the settlement. Plaintiffs' lawyers countered that BP undervalued the settlement and underestimated how many claimants would qualify for payments.

In the panel's majority opinion, Judge Edith Brown Clement said BP has consistently argued that the settlement's complex formula for compensating businesses was intended to cover "real economic losses, not artificial losses that appear only from the timing of cash flows."

"The interests of individuals who may be reaping windfall recoveries because of an inappropriate interpretation of the Settlement Agreement and those who could never have recovered in individual suits for failure to show causation are not outweighed by the potential loss to a company and its public shareholders of hundreds of millions of dollars of unrecoverable awards," Clement wrote.

Judge Leslie Southwick wrote a concurring opinion. Judge James Dennis wrote a partial dissent, largely disagreeing with the other two.

"Because BP has not satisfied its heavy burden of showing that a change in circumstances or law warranted the modifications it sought, the district court correctly affirmed the Administrator's decision rejecting BP's argument and actions to modify the agreement," Dennis wrote.
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Appeals court panel considers TABOR challenge

Court News 2013/09/25 11:31   Bookmark and Share
Colorado is asking the federal courts to stay out of a dispute about whether its strict tax and spending limits has robbed the state of a republican form of government.

In arguments Monday, state Solicitor General Daniel Domenico told a three-judge panel of the 10th U.S. Circuit Court of Appeals that lawmakers still have the ability to ask voters to approve a tax increase if they think one is needed under the Taxpayer's Bill of Rights.

"Just because it's a little bit harder doesn't make it unrepublican," he said of the referendum needed to raise taxes under TABOR.

Domenico said that if lawmakers tried and failed to win a tax increase, they might have a case. But he also argued that courts haven't gotten involved in enforcing the provision in the U.S. Constitution guaranteeing a republic — or representative democracy — to the states, leaving that to Congress instead.

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Federal court officials fear budget cuts

Court News 2013/08/06 08:39   Bookmark and Share
Federal courts officials in Minnesota say they're worried automatic spending cuts will jeopardize the justice system's smooth operation, with layoffs likely in both the U.S. attorney and public defender's offices.

The cuts are part of what's known as the budget sequester, and they're due to take effect Oct. 1 barring a deal in Congress.

The national public defenders service is facing a 23 percent cut, and Minnesota's federal defender, Katherian Roe, said she will likely have to reduce her staff from 18 people to 10.

Jeanne Cooney, a spokeswoman for the U.S. Attorney's Office for Minnesota, said her office will see cuts in personnel and operations but the extent isn't clear yet. The office has already been under a hiring and salary freeze.

"All indications are that all U.S. Attorney offices will be faced with huge cuts in order to get to the budget levels ordered per sequestration," Cooney said.

Each office's cuts will be determined by the Executive Office for United States Attorneys, part of the Justice Department in Washington.

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US court: Pa. school can't ban 'boobies' bracelets

Court News 2013/08/05 08:39   Bookmark and Share
A federal appeals court ruled Monday that a Pennsylvania school district cannot ban "I (heart) Boobies!" bracelets, rejecting the district's claim that the slogan _ designed to promote breast cancer awareness among young people _ is lewd.

The 3rd U.S. Circuit Court of Appeals also concluded that school officials didn't prove the bracelets were disruptive.

"Because the bracelets here are not plainly lewd and because they comment on a social issue, they may not be categorically banned," Judge D. Brooks Smith wrote in the 9-5 decision.

The ruling is a victory for two Easton Area School District girls who challenged the school rule in 2010 with help from the American Civil Liberties Union. Easton is one of several school districts around the country to ban the bracelets, which are distributed by the nonprofit Keep A Breast Foundation of Carlsbad, Calif.

ACLU lawyer Mary Catherine Roper said the ruling supports the rights of students to discuss important topics.

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Court orders Calif. to set standard for chemical

Court News 2013/08/01 08:40   Bookmark and Share
A California court has ordered the state's Department of Public Health to establish a safe drinking water standard for the cancer-causing chemical made famous in the film "Erin Brockovich."

An Alameda County Superior Court judge directed the agency to propose a drinking water standard for hexavalent chromium by the end of August.

The ruling on July 18 came nearly a year after environmental groups filed a lawsuit against the state, claiming it was eight years late in setting the standard.

Results of state water quality testing conducted between 2000 and 2011 throughout California showed that about a third of the 7,000 drinking water sources tested had hexavalent chromium levels at or above a preliminary benchmark set by the California EPA. The chemical comes chiefly from industrial pollution, but also occurs naturally.

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