NY court: Case against ex-AIG execs can continue

Court Watch 2016/06/02 23:57   Bookmark and Share
New York's attorney general can continue his legal effort to bar two former American International Group Inc. executives from the securities industry and forfeit any improperly gained profits, the state's highest court ruled Thursday.

The Court of Appeals for the second time refused to dismiss the lawsuit originally filed in 2005 by then-Attorney General Eliot Spitzer, ruling it should go to trial.

The suit claims ex-AIG chief executive Maurice "Hank" Greenberg and ex-chief financial officer Howard Smith had engaged in fraudulent reinsurance transactions to conceal from investors a deteriorating financial condition.

AIG itself resolved state charges as part of a $1.64 billion agreement with regulators in 2006. The insurance giant was bailed out by the federal government in the 2008 financial crisis.

Greenberg and Smith settled related federal Securities and Exchange Commission complaints without admitting wrongdoing in 2009.

Their attorneys challenged the state lawsuit, arguing that New York's Martin Act against securities fraud authorizes neither a permanent industry ban nor disgorgement of profits, and that releases from other settlements barred further financial forfeit.

"As we have previously stated, in an appropriate case, disgorgement may be an available 'equitable remedy distinct from restitution' under the state's anti-fraud legislation," Judge Leslie Stein wrote. "Moreover, as with the attorney general's claim for an injunction, issues of fact exist which prevent us from concluding, as a matter of law that disgorgement is unwarranted."

The court rejected another dismissal motion two years ago, concluding there was sufficient fraud evidence for trial.

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Court: Slipknot bassist's child born after he died can sue

Court Watch 2016/05/08 10:48   Bookmark and Share
Idaho's state Supreme Court candidates went after each other's political independence Friday evening during their only scheduled major debate.

"When you stand on the courthouse steps with the Legislature, I'm not sure if you're sending the right messages to the people of Idaho that there's a clear division of judiciary and legislative branch," said candidate Robyn Brody, an attorney from Rupert.

Brody was calling out fellow candidates Clive Strong, a longtime deputy attorney general, and Curt McKenzie, a seven-term Republican state senator ? who have both held press conferences at courthouses announcing endorsements from partisan lawmakers.

Idaho Court of Appeals Judge Sergio Gutierrez also echoed Brody's concerns of seeking high-profile endorsements, adding that he's not running to be a politician but a justice.

However, Strong countered that his 33-year career inside the attorney general's office has often required him to stand up to the Idaho Legislature and McKenzie argued that he strayed from his fellow GOP members during the Legislature by voting no on the so-called ag-gag bill, which was later ruled illegal in federal court.

The first round of campaign contribution reports aren't due until May 10, making endorsements that much more open to scrutiny for signs of possible bias.

Furthermore, Supreme Court candidates are banned from talking about their past of current political party affiliations even though political party registrations are public records as well as giving their opinions on how they would vote on previous or pending state supreme court decisions.

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Florida's high court urged to throw out death sentences

Court Watch 2016/05/06 10:48   Bookmark and Share
Former judges and top legal officials are calling on the Florida Supreme Court to impose life sentences on nearly 400 people now awaiting execution on death row.

The group, which includes three former state Supreme Court justices and two former presidents of the American Bar Association, filed a legal brief Tuesday in a case that could determine the fate of Florida's death penalty.    

In January, the U.S. Supreme Court declared Florida's death penalty sentencing law unconstitutional, prompting the state Supreme Court to halt two executions. The Florida Legislature responded by overhauling the law.

But the Florida Supreme Court still hasn't decided what should happen to those sentenced to death under the previous sentencing scheme. The court will hear arguments from lawyers this week on what should be done.

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Obama's power over immigration drives Supreme Court dispute

Court Watch 2016/04/13 01:19   Bookmark and Share
The raging political fight over immigration comes to the Supreme Court on Monday in a dispute that could affect millions of people who are in the United States illegally.
 
The court is weighing the fate of Obama administration programs that could shield roughly 4 million people from deportation and grant them the legal right to hold a job.

Among them is Teresa Garcia of suburban Seattle, who has spent 14 years in the United States illegally after staying beyond the expiration of her tourist visa in 2002.

She's already gotten much of what she wanted when she chose not to return to her native Mexico. Her two sons are benefiting from an earlier effort that applies to people who were brought here illegally as children. Garcia's 11-year-old daughter is an American citizen.

Now, she would like the same for herself and her husband, a trained accountant who works construction jobs. Neither can work legally.

"To have a Social Security number, that means for me to have a better future. When I say better future, we are struggling with the little amount of money my husband is getting for the whole family. It makes for stress every day. We struggle to pay for everything," Garcia said.

The programs announced by President Barack Obama in November 2014 would apply to parents whose children are citizens or are living in the country legally. Eligibility also would be expanded for the president's 2012 effort that helped Garcia's sons. More than 700,000 people have taken advantage of that earlier program, Deferred Action for Childhood Arrivals. The new program for parents and the expanded program for children could reach as many as 4 million people, according to the nonpartisan Migration Policy Institute.
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Texas court tosses criminal case against former Gov. Perry

Court Watch 2016/02/22 14:40   Bookmark and Share
The felony prosecution of former Texas Gov. Rick Perry ended Wednesday when the state's highest criminal court dismissed an abuse-of-power indictment that the Republican says hampered his short-lived 2016 presidential bid.

The 6-2 decision by the Texas Court of Criminal Appeals, which is dominated by elected Republican judges, frees Perry from a long-running criminal case that blemished the exit of one of the most powerful Texas governors in history and hung over his second failed run for the White House.

A grand jury in liberal Austin had indicted Perry in 2014 for vetoing funding for a public corruption unit that Republicans have long accused of wielding a partisan ax. The unit worked under Travis County District Attorney Rosemary Lehmberg, an elected Democrat. Perry wanted her to resign after she was convicted of drunken driving.

Perry was accused of using his veto power to threaten a public official and overstepping his authority, but the judges ruled that courts can't undermine the veto power of a governor.

"Come at the king, you best not miss," Republican Judge David Newell wrote in his concurring opinion, quoting a popular line from the HBO series "The Wire."

Perry has been campaigning for Republican presidential candidate Ted Cruz since becoming the first major GOP candidate to drop out of the race last year. He conceded to reporters in Austin on Wednesday that the indictments hurt his candidacy but didn't dwell on the impact, and said he would veto the same funding again if given the chance.

"I've always known the actions I took were not only lawful and legal, they were right," said Perry, who spoke at the headquarters of an influential Texas conservative think tank, which has previously christened its balcony overlooking downtown as the "Gov. Rick Perry Liberty Balcony."

The court said veto power can't be restricted by the courts and the prosecution of a veto "violates separations of powers." A lower appeals court had dismissed the other charge, coercion by a public servant, in July.

Perry had rebuked the charges as a partisan attack from the start, calling it a "political witch hunt," but the dismissal brought accusations of Republican judges doing a favor for a party stalwart. Texans for Public Justice, a left-leaning watchdog group that filed the original criminal complaint that led to the indictment, said Perry was handed a "gift" based on his stature.
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South African court hears case against president

Court Watch 2016/02/09 14:14   Bookmark and Share
The chant "Pay back the money" filtered into South Africa's highest court on Tuesday, as judges heard a case in which President Jacob Zuma is accused of violating the constitution in a scandal over state spending on his private home.
 
Inside court, lawyers argued before 11 judges over whether the president broke the law by failing to follow a 2014 recommendation from the state watchdog agency that he pay back some of the more than $20 million in security upgrades to his rural home.

Outside, several thousand opposition party supporters demonstrated against what they described as corruption by the head of state, shouting that he should return state money used to improve his private home.

Zuma's office, on Feb. 3, said he was willing to reimburse some money, an about-turn to his previous position that he did nothing wrong. His critics said he was trying to avoid the embarrassment of a court hearing and a repeat of last year's heckling during his State of the Nation address, to be held on Thursday.

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