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Court sides with NY Times in anthrax libel case
Court Issues | 2008/12/14 17:04
The Supreme Court has rejected a plea by former Army scientist Steven J. Hatfill to revive his libel lawsuit against The New York Times over columns falsely implicating him in the deadly 2001 anthrax attacks.

The justices did not comment Monday in turning down Hatfill's appeal of a unanimous ruling by the 4th U.S. Circuit Court of Appeals, based in Richmond, Va. A three-judge panel affirmed a lower court's dismissal of the libel claims on the grounds that Hatfill is a public figure and failed to prove that columns written by Nicholas Kristof were malicious.

Circumstantial evidence led the FBI to suspect Hatfill was involved in the anthrax attacks that killed five people and sickened 17 just weeks after the Sept. 11 terrorist attacks. Then-Attorney General John Ashcroft publicly identified Hatfill, who worked at the Army's infectious diseases laboratory at Ft. Detrick, Md., from 1997 to 1999, as a "person of interest" in the investigation.

In June, the Justice Department agreed to pay Hatfill $5.8 million to settle a lawsuit claiming officials violated his privacy rights by speaking with reporters about the case.

No one has been charged in the attacks, although the government now believes another Army scientist, Bruce Ivins, was responsible. Ivins killed himself in July.



List of potential victims grows in NY fraud case
Law Firm News | 2008/12/14 17:01
Investors who put their fortunes in the hands of arrested New York money manager Bernard Madoff are waiting to hear how much of their stake is left.

The roster of potential victims in what prosecutors said was a $50 billion Ponzi scheme has grown exponentially longer in the past few days.

Madoff, 70, said in regulatory filings that he only had around 25 clients, but it has become apparent that the list of people who lost money may number in the hundreds or even thousands.

Among those who have acknowledged potential losses so far: Former Philadelphia Eagles owner Norman Braman, New York Mets owner Fred Wilpon and J. Ezra Merkin, the chairman of GMAC Financial Services.

A charity in Massachusetts that supports Jewish programs, the Robert I. Lappin Charitable Foundation, said it had invested its entire $8 million endowment with Madoff. The organization's executive director said she doesn't expect it to survive.

Other institutions that believed they had lost millions included The North Shore-Long Island Jewish Health System and the Texas-based Julian J. Levitt Foundation.

Hedge funds and other investment groups looked like big losers too. The Fairfield Greenwich Group said it had some $7.5 billion in investments linked to Madoff. A private Swiss bank, Banque Benedict Hentsch Fairfield Partners SA, said it had $47.5 million worth of client assets at risk.



Insurer's asbestos-related lawsuits at high court
Law Firm News | 2008/12/13 17:14
The Supreme Court agreed Friday to consider reinstating a roughly $500 million settlement of asbestos-related lawsuits against the Travelers Companies Inc.

The settlement would also block any new lawsuits against Travelers arising out of the insurance company's long relationship with Johns Manville Corp., once the world's largest producer of asbestos.

Travelers has been named in dozens of lawsuits claiming that it tried to hide the dangerous health effects of asbestos. Asbestos is a mineral that was commonly used until the mid-1970s in insulation and fireproofing material. Exposure can increase the risk of lung cancer, mesothelioma and other ailments, according to federal health agencies.

The company has argued that asbestos-related claims should be paid out of a trust created by Johns Manville in the 1980s and approved by a federal bankruptcy judge. Money for the fund came largely from insurers.

Travelers agreed to settle with several groups of plaintiffs provided that federal courts make clear that it would not have to face any new similar lawsuits.

The 2nd U.S Circuit Court of Appeals in New York overturned lower-court approval of the settlement, saying a bankruptcy judge lacks the authority to act so broadly. The justices, at arguments in March, will consider the question of the bankruptcy court's power.

The consolidated cases are The Travelers Indemnity Co. v. Bailey, 08-295, and Common Law Settlement Counsel v. Bailey, 08-307.



Justices chide California-based appeals court
Court Watch | 2008/12/04 02:53
The Supreme Court took aim at one of its favorite targets Tuesday, criticizing a California-based federal appeals court for its ruling in favor of a criminal defendant.

The justices threw out a decision by the San Francisco-based 9th U.S. Circuit Court of Appeals in the case of Michael Robert Pulido, who was convicted for his role in robbing a gas station and killing the defendant.

A U.S. District Court judge set aside Pulido's conviction because the trial judge in the case gave the jury improper instructions.

The high court said in an unsigned opinion that the appeals court ruling affirming the federal judge's action used faulty reasoning. The justices did not reinstate Pulido's conviction.

Justices John Paul Stevens, Ruth Bader Ginsburg and David Souter agreed that the appeals court made a mistake, but would have affirmed its ruling anyway because the underlying decision in favor of Pulido was correct.

Last month, the court overruled the 9th Circuit in an environmental case involving the Navy's use of sonar and its potential harm to whales.

The case is Hedgpeth v. Pulido, 07-544.



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