Supreme Court Justices Consider Courts’ Role in Arbitration | National Law Journal

The U.S. Supreme Court’s pro-arbitration trend appears intact after oral arguments Monday in a key case asking whether it should be courts or arbitrators themselves who rule on the enforceability of an arbitration agreement.

Consumer groups say the outcome of the case, Rent-A-Center, West v. Jackson, could determine whether courts have any role in overseeing arbitration clauses in labor agreements, which they see as biased toward employers. Business groups, for their part, don’t want courts second-guessing what they see as validly agreed-upon arbitration agreements.

“If companies win, this really will be a watershed case,” said Deepak Gupta, an attorney for Public Citizen, which asserts that arbitrators rule against consumers 94 percent of the time.

During the past two decades, the high court has generally ruled to strengthen the enforceability of arbitration agreements. On Monday, few justices appeared eager to change that trend, though several seemed to believe that courts should play some role in checking especially egregious agreements. Dallas lawyer Robert Friedman of Littler Mendelson, representing the business side of the case, urged the Court to continue its practice of “sending very, very complicated matters to the arbitrator” rather than the courts

via Law.com – Supreme Court Justices Consider Courts’ Role in Arbitration.

LinkedInPinterestEvernoteWordPressBlogger PostEmailShare

SEC gathered range of experts for Goldman case | Washington Post

Seal of the U.S.
Image via Wikipedia

Late into the night, they darted from office to office, carrying thick reams of documents, building the most prominent legal case to grow out of the financial crisis.

On the fifth floor of the headquarters of the Securities and Exchange Commission, five men and one woman, fueled by Sbarro pizza and Subway sandwiches, worked marathon hours over three months to finalize a case alleging that Goldman Sachs had defrauded clients.

Led by a former federal prosecutor and a pair of veteran SEC investigators, the team was preparing to take legal action against America’s most storied financial firm. On the line was the promise made by SEC Chairman Mary Schapiro, appointed by President Obama last year, that the agency would restore its traditional role as an aggressive check on Wall Street abuses.

The team consists of three old hands and three more junior lawyers. Together, former colleagues say, they bring a mix of backgrounds suited for the many dimensions of the Goldman case. They can understand the details of very complex financial products, grasp the nuances of law and simplify complicated issues for a lay jury.

Lorin Reisner, 48, is a former federal prosecutor who was handpicked last year by the new enforcement director Robert Khuzami as his deputy. Under Reisner were agency veterans Ken Lench, 47, and Reid Muoio, 43, who lead a new agency group specializing in the types of exotic investments that nearly wrecked the financial system.

via SEC gathered range of experts for Goldman case.

LinkedInPinterestEvernoteWordPressBlogger PostEmailShare

At The Hague, Uruguay Defeats Argentina’s Challenge to a Pulp Mill | National Law Journal

Orthographic projection of Uruguay.
Image via Wikipedia

The nation of Uruguay won a rare environmental case against Argentina at the International Court of Justice in The Hague, the Netherlands, on April 20.

The court delivered a two-part judgment in the case, Pulp Mills on the River Uruguay (Argentina v. Uruguay). Through two separate votes, the court ruled that Uruguay breached procedural, but not substantive, obligations. On the procedural side, the court voted, 13-1, that Uruguay breached obligations to cooperate with Argentina and the Administrative Commission of the River Uruguay while developing plans to build two pulp mills, known as Orion and CMB. Substantively, the court ruled, 11-3, that Uruguay did not breach its obligations to protect the environment under the Statute of the River Uruguay by allowing the construction of a the Orion pulp mill.

A Foley Hoag team led by Paul Reichler, a Washington-based partner, and consisting of six other lawyers at the Boston-based firm helped Uruguay fend of the lawsuit filed by neighboring Argentina.

Reichler said the decision is important because it’s the “first definitive decision by the court in a case involving international environmental law.” He said the only other environmental case was decided in 1997.

via At The Hague, Uruguay Defeats Argentina’s Challenge to a Pulp Mill.

LinkedInPinterestEvernoteWordPressBlogger PostEmailShare

A Difficult Path in Goldman Case – NYTimes.com

In accusing Goldman Sachs of defrauding investors, regulators are not only taking aim at a company with deep pockets and a will to fight — they are also pursuing an unusual claim that could be difficult to prove in court, legal experts said.

Rather than asserting that Goldman misrepresented a product it was selling, the most commonly used grounds for securities fraud, the Securities and Exchange Commission said in a civil suit filed Friday that the investment bank misled customers about how that product was created.

It is the rough equivalent of asserting that an antiques dealer lied about the provenance, but not the quality, of an old table.

To a layperson, the case against Goldman may seem clear cut.

After all, investors did not know some information about the product that they might have considered vital, and they lost $1 billion in the end. But the rules that govern these kinds of transactions are not so plain.

Several experts on securities law said fraud cases like this one, which focuses on context rather than content, are generally more difficult to win, because it can be hard to persuade a jury that the missing information might have led buyers to walk away.

They added, however, that the strength of the S.E.C.’s case is impossible to gauge until the agency discloses more of the evidence it has assembled. So far it has provided only a sketch.

The stakes are huge. The S.E.C., battered by its failure to identify or prevent several major frauds in recent years, is eager to re-establish its credibility as an enforcer. But in choosing such a difficult battlefield, the commission also risks losing a case at a time when it is trying to re-establish its reputation as a tough watchdog.

via A Difficult Path in Goldman Case – NYTimes.com.

LinkedInPinterestEvernoteWordPressBlogger PostEmailShare

At the ITC, Patent Litigation is Not a Domestic Industry – The BLT: The Blog of Legal Times

Patent trolls beware. You won’t win a case at the International Trade Commission if the only thing you do with your patent is sue people for infringing it.

That’s not a domestic industry.

Still, the six ITC commissioners set a modest threshold for establishing what is a domestic industry under Section 337 of the Tariff Act. Their April 14 decision, Certain Coaxial Cable Connectors and Components Thereof and Products Containing Same, will have an impact on a number of ITC cases going forward, patent lawyers say.

“It clears things up,” said Louis Mastriani, a name partner at IP boutique Adduci, Mastriani & Schaumberg, who was not involved in the case. “Now we know what the standard is, and the uncertainty is largely, if not wholly dispelled.”

To bring an ITC case, a patent owner must establish that a domestic industry exists in the United States related to the intellectual property allegedly being infringed.

Just what that means has been an issue in cases brought by non-practicing entities (sometimes called patent trolls) – IP owners who don’t actually make a product based on their patent.

The 337 statute says an industry exists if there is “substantial investment in…exploitation [of the patent], including engineering, research and development, or licensing.”

But the commissioners in the coaxial cable decision point out, “Notably, the provision does not specifically mention litigation.”

The issue arose in the coaxial cable case because the patent owner, John Mezzalingua Associates dba PPC Inc. of East Syracuse, NY, argued that its expenses associated with patent infringement suits filed in U.S. district courts satisfied the ITC domestic industry requirement.

via At the ITC, Patent Litigation is Not a Domestic Industry – The BLT: The Blog of Legal Times.

LinkedInPinterestEvernoteWordPressBlogger PostEmailShare

Avoiding Sanctions over Duty to Preserve Evidence | Duane Morris LLP – JDSupra

In late 2009 a federal District Court sitting in Orlando, Fla., sent shockwaves through the in-house general counsel world. The case, Swofford v. Eslinger,1 is the first reported case to sanction in-house counsel for spoliation of electronic evidence.

In Swofford, while in pursuit of two suspects, deputies from the Seminole County Sheriff’s Office (SCSO), encountered an armed Robert Swofford on his property, and shot him. Mr. Swofford’s attorney served the sheriff’s office with a letter requesting that all evidence relating to the shooting be preserved in its original condition. Thereafter, Mr. Swofford’s attorney sent a second letter to the office directing it to preserve all evidence of the shooting, including “firearms, clips, and ammunition, training records and electronic evidence.”2

Please see full article below for more information.

via Avoiding Sanctions over Duty to Preserve Evidence | Duane Morris LLP – JDSupra.

LinkedInPinterestEvernoteWordPressBlogger PostEmailShare

China Hearsay: China law, business, and economics commentary

The case was brought in a U.S. court over events that took place in China. The threshold question: should the court take the case or kick it over to China, which is a more suitable forum for hearing the dispute?

[I]t is natural that someone tried to bring cases here concerning the melamine contamination of infant formula and milk products in China, which reportedly affected thousands of infants in China. Their angle was an American holding company with Chinese subsidiaries that made contaminated milk products. Plaintiffs’ counsel found about 100 Chinese citizens and residents and filed suit in federal district court in Maryland, the holding company’s principal place of business.

Just as inevitable as the filing of the lawsuit in the U.S. was the defendants’ response: they moved to dismiss the case on forum non conveniens grounds, arguing that the cases did not belong in the U.S. and should be litigated in China. The court granted that motion in a very interesting decision filed last week. Tang v. Synutra International, Inc., No. DKC 09-0088 (D. Md. March 29, 2010).

This is basic civil procedure for lawyers (first year of law school), but the interesting part is the way that U.S. courts have looked at China’s court system over the years, and under what circumstances U.S. courts have found it lacking. I profess to not having looked into this issue for quite a few years, mostly because I don’t do a lot of cross-border litigation.

The way these arguments work is thus: the plaintiffs want the case to remain in the U.S. court so they can go after the U.S.-based holding company, receive more damages, and benefit from the U.S. system of discovery (among other things), while the defendant wants the case to be dismissed so it can fall back on the relatively high hurdles that exist for foreign companies to sue Chinese enterprises here, particularly in relation to tort claims.

So the defense is saying that the case should be heard in China. The tort took place there, the product in question was manufactured there, the plaintiffs live in China, etc. The plaintiff will hit back with evidence arguing that the Chinese court system will not offer plaintiff reasonable redress for damages suffered as a result of the tortious act.

In arguing that China could not offer an adequate forum for hearing the dispute, the plaintiff:

[P]rovided affidavits from Chinese lawyers with stories of how some Chinese lawyers were pressured to withdraw from melamine cases. The expert also cited anecdotal evidence, in part based on newspaper reports, that some cases filed in China have sat without court action for months, as the courts allegedly have placed some cases perpetually in limbo.

Not too impressive. Relying on a lot of anecdotal evidence, including newspaper accounts, is not a strong way to go. Moreover, and as Walk points out, cases that sit on dockets in perpetuity is a situation not restricted to the Chinese court system.

via China Hearsay: China law, business, and economics commentary.

LinkedInPinterestEvernoteWordPressBlogger PostEmailShare

Civil Rights Era Cold Case Investigations Continue « USDOJ: Justice Blog

The Justice Department has conducted extensive outreach to investigate and resolve these unsolved cold cases.  Our cold case initiative has yielded major accomplishments.

Earlier this month, a federal appeals Court upheld the 2007 conviction of James Ford Seale, a reputed Klu Klux Klansman, in the kidnapping and killing of Charles Eddie Moore and Henry Hezekiah Dee in 1964.  The Court upheld Seale’s conviction by a jury in a trial prosecuted by Justice Department officials 43 years after the murders.  Read the Court’s opinion, here.

Because of legal limitations, it is unlikely that there will be federal jurisdiction over most of these cases.  Two critical statutes used to prosecute racially motivated homicides, interference with federally protected activities and interference with housing rights, were not enacted until 1968.  Under the Ex Post Facto Clause of the Constitution, these laws cannot be applied retroactively to conduct that preceded their enactment.  The five-year statute of limitations on most federal criminal charges is another challenge for prosecutors.

Department officials have also engaged the community, including civil rights groups like the NAACP, Southern Poverty Law Center, and the Cold Case Truth and Justice Project to enlist help in identifying potential cases and uncovering information.  The Department is committed to bringing these cases when possible.

Our review of these cases will be exhaustive and thorough.  If we are able to bring a sense of closure to these cases, to bring justice in any form to the families of the victims of these horrific crimes in memory of Emmett Till, it will be worth the effort.

via Civil Rights Era Cold Case Investigations Continue « USDOJ: Justice Blog.

LinkedInPinterestEvernoteWordPressBlogger PostEmailShare

Law.com – Discovery Failure Sinks Lockheed’s $37 Million Win

A federal judge has tossed out a $37.3 million trade secrets verdict for Lockheed Martin Corp. and ordered a new trial after finding that the aircraft company failed to turn over to a defendant competitor documents critical to the case.

U.S. District Judge Charles A. Pannell Jr. on March 31 ordered the new trial at the request of Texas military contractor L-3 Communications Integrated Systems, the defendant in the five-year-old case. Pannell said it was “probable” that the outcome of the trial would have been different if the jury had been given access to the information that Lockheed withheld.

In his order, Pannell also tossed out Lockheed’s motion for more than $16 million in legal fees.

Five years ago, in a race to the courthouse, Lockheed sued L-3 in U.S. District Court in Atlanta over what it claimed was a misappropriation of trade secrets associated with the design and construction of Lockheed’s anti-submarine bomber, which is used by navies around the world. Lockheed has large aircraft plants in Marietta and Warner Robins.

L-3, in turn, filed a separate antitrust suit against Lockheed in U.S. District Court in Dallas, claiming that Lockheed had filed the Atlanta suit to stifle competition. That case is pending.

The dueling cases are the result of a high-stakes feud between the two international defense contractors over a growing international market: the refurbishment of military aircraft, many of them originally designed and built by Lockheed, that are owned by governments around the world.

via Law.com – Discovery Failure Sinks Lockheed’s $37 Million Win.

LinkedInPinterestEvernoteWordPressBlogger PostEmailShare

Lawyers Galore in FTC’s Intel Case – The BLT: The Blog of Legal Times

Lawyers Galore in FTC’s Intel Case

As discovery heats up in the Federal Trade Commission’s monopolization lawsuit against Intel Corp., at least seven tech giants have been dragged into the fray.

Microsoft, Oracle, Hewlett-Packard, Via Technologies, Lenovo, Acer and Gateway have all been hit with subpoenas for documents either by the FTC, Intel, or both. Lawyers for the companies have responded with motions asking for more time to comply or to quash or limit the scope of the requests.

The FTC on Dec. 16 charged Intel with using its dominant market position to illegally stifle competition in violation of Section 5 of the FTC Act. Trial is set for September.

via Lawyers Galore in FTC’s Intel Case – The BLT: The Blog of Legal Times.

LinkedInPinterestEvernoteWordPressBlogger PostEmailShare