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Hawaii power utility takes responsibility for first fire on Maui
Legal Interview | 2023/08/28 21:31
Hawaii’s electric utility acknowledged its power lines started a wildfire on Maui but faulted county firefighters for declaring the blaze contained and leaving the scene, only to have a second wildfire break out nearby and become the deadliest in the U.S. in more than a century.

Hawaiian Electric Company released a statement Sunday night in response to Maui County’s lawsuit blaming the utility for failing to shut off power despite exceptionally high winds and dry conditions. Hawaiian Electric called that complaint “factually and legally irresponsible,” and said its power lines in West Maui had been de-energized for more than six hours before the second blaze started.

In its statement, the utility addressed the cause for the first time. It said the fire on the morning of Aug. 8 “appears to have been caused by power lines that fell in high winds.” The Associated Press reported Saturday that bare electrical wire that could spark on contact and leaning poles on Maui were the possible cause.

But Hawaiian Electric appeared to blame Maui County for most of the devastation — the fact that the fire appeared to reignite that afternoon and tore through downtown Lahaina, killing at least 115 people and destroying 2,000 structures.

Neither a county spokesperson and nor its lawyers immediately responded to a request for comment early Monday about Hawaiian Electric’s statement.

The Maui County Fire Department responded to the morning fire, reported it was “100% contained,” left the scene and later declared it had been “extinguished,” Hawaiian Electric said.

Hawaiian Electric said its crews then went to the scene to make repairs and did not see fire, smoke or embers. The power to the area was off. Around 3 p.m., those crews saw a small fire in a nearby field and called 911.

Hawaiian Electric rejected the basis of the Maui County lawsuit, saying its power lines had been de-energized for more than six hours by that time, and the cause of the afternoon fire has not been determined.


Musk threatens to sue researchers who documented the rise in hateful tweets
Legal Interview | 2023/07/31 22:25
X, the social media platform formerly known as Twitter, has threatened to sue a group of independent researchers whose research documented an increase in hate speech on the site since it was purchased last year by Elon Musk.

An attorney representing the social media site wrote to the Center for Countering Digital Hate on July 20 threatening legal action over the nonprofit’s research into hate speech and content moderation. The letter alleged that CCDH’s research publications seem intended “to harm Twitter’s business by driving advertisers away from the platform with incendiary claims.”

Musk is a self-professed free speech absolutist who has welcomed back white supremacists and election deniers to the platform, which he renamed X earlier this month. But the billionaire has at times proven sensitive about critical speech directed at him or his companies.

The center is a nonprofit with offices in the U.S. and United Kingdom. It regularly publishes reports on hate speech, extremism or harmful behavior on social media platforms like X, TikTok or Facebook.

The organization has published several reports critical of Musk’s leadership, detailing an increase in anti-LGBTQ hate speech as well as climate misinformation since his purchase. The letter from X’s attorney cited one specific report from June that found the platform failed to remove neo-Nazi and anti-LGBTQ content from verified users that violated the platform’s rules.

In the letter, attorney Alex Spiro questioned the expertise of the researchers and accused the center of trying to harm X’s reputation. The letter also suggested, without evidence, that the center received funds from some of X’s competitors, even though the center has also published critical reports about TikTok, Facebook and other large platforms.

“CCDH intends to harm Twitter’s business by driving advertisers away from the platform with incendiary claims,” Spiro wrote, using the platform’s former name.

Imran Ahmed, the center’s founder and CEO, told the AP on Monday that his group has never received a similar response from any tech company, despite a history of studying the relationship between social media, hate speech and extremism. He said that typically, the targets of the center’s criticism have responded by defending their work or promising to address any problems that have been identified.


Judge weighs Missouri GOP dispute over estimated cost of allowing abortions
Legal Interview | 2023/06/20 00:19
Two top Republican state officials argued Wednesday over how much it would cost Missouri to restore the right to abortion, with the state attorney general insisting that the figure should account for lost revenue that wouldn’t be collected from people who otherwise would be born.

The issue came up during a trial over a proposed ballot measure that would let voters decide in 2024 whether to amend the state constitution to guarantee abortion rights.

Abortions were almost completely banned in Missouri following the U.S. Supreme Court’s 2022 decision to overturn Roe v. Wade. There are exceptions for medical emergencies, but not for cases of rape or incest.

Supporters are trying to put a proposed amendment before voters next year that would protect abortion rights and pregnant women, as well as access to birth control.

But the effort stalled in April because of a spat between Auditor Scott Fitzpatrick and newly appointed Attorney General Andrew Bailey, who argues that the cost could be far greater than what his Republican peer estimated.

ACLU of Missouri lawyer Tony Rothert told Beetem on Wednesday that his clients at the abortion rights campaign are stuck in limbo because the two officeholders are at an impasse, and that the campaign can’t begin collecting voter signatures without an official fiscal note.


Court upholds judge’s finding that Tesla acquisition of Solar City was fair
Legal Interview | 2023/06/06 17:00
Delaware’s Supreme Court has upheld a judge’s decision in favor of Tesla CEO Elon Musk in a lawsuit challenging the electric car maker’s $2.4 billion acquisition of a solar panel company founded by two of his cousins.

The court on Tuesday rejected arguments from a group of Tesla shareholders that a Chancery Court judge erred in finding that Tesla’s deal to acquire SolarCity in 2016 was “entirely fair.” The judge made that determination even while finding that the process by which Tesla’s board of directors negotiated and recommended the deal to shareholders was “far from perfect.”

While noting errors in the trial court’s fair price analysis, and agreeing that the deal process was not “pitch perfect,” the justices said the record is replete with factual findings and credibility determinations indicating that the acquisition was “entirely fair.”

“We are convinced, after a thorough review of the extensive trial record, that the trial court’s decision is supported by the evidence and that the court committed no reversible error in applying the entire fairness test,” Justice Karen Valihura wrote in the court’s 106-page opinion.

Typically, under Delaware’s “business judgment” rule, courts give deference to a corporate board’s decision-making unless there is evidence that directors had conflicts or acted in bad faith. If a plaintiff can overcome the business judgment rule’s presumption because the deal involved a controlling shareholder or because directors might have been conflicted, the board’s action is subject to an “entire fairness” analysis. That shifts the burden to the corporation to show that the deal involved both fair dealing and fair price.

At the time of the acquisition, Musk owned about 22% of Tesla’s common stock and was the largest stockholder of SolarCity, as well as chairman of its board of directors.

The justices concluded that the findings by former Vice Chancellor Joseph Slights III, which were not challenged by the shareholders, support the conclusion that the overall deal process was the product of fair dealing. The Supreme Court also said that, while Slights failed to explain why and how he relied on Solar City’s stock price on the day the deal was announced, rather than the lower price on the day the deal closed, his fair price analysis did not amount to reversible error.

“The Court of Chancery, after examining all of the expert testimony and fair price evidence, found that the fair price case was not even close,” Valihiura noted.

An attorney for the shareholders argued in March that the Chancery Court judge put too much emphasis on the price Tesla paid for SolarCity, and not enough on the deal process, which the plaintiffs contend was tainted by the failure to appoint an independent committee to negotiate the deal. He also argued that the judge’s analysis of the deal price was flawed and that shareholders who voted to approve the deal were not properly informed, even though the vote was not required under Delaware law.


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