The Supreme Court indicated Tuesday it could breathe new life into a federal rule requiring states to reduce power plant pollution from the South and Midwest that fouls the air in the eastern U.S.

Several justices suggested during a 90-minute argument that they believe the Environmental Protection Agency did not exceed its authority when it issued its cross-state air pollution rule in 2011. A divided federal appeals court panel invalidated the rule last year.

The EPA sought to reduce pollution from power plants in 28 states that drifts above states in the Northeast and Mid-Atlantic regions. Texas led 14 states and industry groups in challenging the rule. Most downwind states support it.

Justice Department lawyer Malcolm Stewart said the EPA is trying to be "an honest broker" between upwind and downwind states.

Sulfur dioxide and nitrogen oxide pollution from power plants can be carried long distances and the pollutants react with other substances to form smog and soot, which have been linked to illnesses. The cross-border pollution has prevented many cities from complying with health-based standards set by law.

The Netherlands' Supreme Court has upheld rulings that the now-defunct Belgian bank Fortis NV was mismanaged from September 2007 to September 2008, and its then-management board can be held accountable.

Friday's ruling opens the door for investor claims against former CEO Jean-Paul Votron, among others, though not former supervisory Chairman Count Maurice Lippens, whom lower courts found was too far removed from decision making to be held liable.

Fortis, Royal Bank of Scotland and Spain's Santander bought Dutch bank ABN Amro in a hostile takeover in 2007, nominally the largest in banking history.

Fortis agreed to buy ABN's Dutch operations for 24 billion euros in its part of the deal but was unable to finance the buy — which represented around half of its own total size — and eventually spiraled toward bankruptcy. The Dutch state ultimately nationalized all Fortis-ABN operations in the Netherlands in 2008 to avoid a meltdown of the country's financial system. The rescue has cost taxpayers at least 32 billion euros.

A federal appeals court is set to take up a lawsuit over a former San Francisco sheriff's decision to remove male deputies from female housing units at the county's jail.

San Francisco Sheriff Michael Hennessey made the decision in 2006 in response to inmate complaints of sexual misconduct. More than two dozen male and female deputies have since sued, saying it is discriminatory.

The San Francisco Chronicle reports (http://bit.ly/1adufFe) that a three-judge panel of the 9th U.S. Circuit Court of Appeals is scheduled to consider the case next Wednesday.

Attorneys for the deputies say not one sexual misconduct claim made by a female inmate against a male deputy was sustained in the 16 years before the sheriff' policy change.

City attorneys dispute that, saying three deputies resigned and two others were suspended.

The Montana Supreme Court on Wednesday reversed the conviction of a Beaverhead County man for criminal distribution of dangerous drugs, saying he was convicted based on insufficient evidence.

The court ruled in a 4-1 decision that state prosecutors presented the testimony of just one witness, who said Anthony James Burwell provided her with marijuana in exchange for baby-sitting his two daughters while he went to work in summer 2011.

Jennifer Jones told authorities that the night before she was supposed to baby-sit, she and Burwell smoked a bowl of a substance she said was marijuana, describing it as "green with orange hairs," according to the opinion written by Chief Justice Mike McGrath.

Jones identified Burwell in a list of "people to narc on" that she wrote while in police custody, McGrath wrote. She gave a vague description of the man and said he lived next door to her friend, according to the opinion.

Officers concluded Jones was referring to Burwell, found that he had a medical marijuana card and charged him in October 2011. He was convicted in district court and sentenced to 10 years, with five years suspended.

"Officers never searched Burwell's residence, never attempted a controlled buy and never discovered any marijuana in his possession," McGrath wrote.

No expert analyzed Jones' description of the substance, no other witnesses backed her testimony and she did not describe the effects of the substance, McGrath wrote.

The evidence was insufficient to conclude beyond a reasonable doubt that the substance was a dangerous drug, the chief justice wrote.

Justice Jim Rice dissented, saying that the majority opinion ignores significant circumstantial evidence and that it was up to the jury that convicted Burwell to determine the facts.

Burwell acknowledged that he did not pay Jones cash for baby-sitting and that Burwell and his son were medical marijuana cardholders permitted to grow the drug at home, Rice wrote.

"The testimony here, of a lay witness identifying marijuana from prior experience with the drug, along with the confirming circumstantial evidence, is sufficient to establish the identity of the substance," Rice wrote.

A federal appeals court will allow a capital murder case to proceed against an accused drug kingpin from northern Virginia.

In a 2-1 ruling, the 4th U.S. Circuit Court of Appeals in Richmond overturned a federal judge in Norfolk who had ordered a halt to the prosecution of Justin Wolfe and his immediate release.

That judge said misconduct by prosecutors in Prince William County made it impossible for Wolfe to get a fair trial.

But a majority on the appellate court disagreed. The judges ruled that a new trial can be done fairly. A dissenting judge said the misconduct was so bad that freeing Wolfe was the only proper outcome.

Wolfe was sent to death row in 2002 for a drug-related murder, but his original conviction and sentence were overturned.

A proposed settlement in a class-action lawsuit brought by retailers and trade groups against Visa Inc. and MasterCard Inc. fails to protect merchants from abuse by credit card companies, a national retail group says.

The lawsuit, which dates to 2005, centers on the subject of swipe fees — charges banks collect every time a Visa or MasterCard is used to pay for a purchase.

The proposed settlement terms, initially disclosed in July, were revised and filed Friday with U.S. District Court in Brooklyn.

But changes to the deal failed to win over many of the retailers represented by the National Retail Federation.

In a statement Mallory Duncan, the trade group's general counsel, said that the proposed deal does virtually nothing to protect retailers or their customers, and it attempts to silence any objections for years to come.

"Retailers would rather take their chances in court than accept this one-sided swindle written by the card industry for the card industry," he added.

The National Retail Federation, the nation's largest retail trade group, is not a party to the lawsuit.

In a statement Friday, Visa called the settlement a fair and reasonable compromise.

Under the proposed settlement, stores will be allowed to charge customers more if they pay with a credit card. The pact covers only U.S. transactions.