Raided pot providers sue government
Legal Topics | 2011/05/11 15:42

Two medical marijuana providers have accused the U.S. government of civil rights violations in what may be the first lawsuit of its kind in response to a federal crackdown on pot operations across the nation.

The owners of Montana Caregivers Association and MCM Caregivers claim federal raids on pot businesses across Montana in March were unconstitutional, exceeded the government's authority and pre-empted the state's medical marijuana law.

Since then, federal agents have raided two Washington state dispensaries, and federal prosecutors have sent letters of warning to leaders in most of the 15 states with medical marijuana laws.

The lawsuit was filed Tuesday in U.S. District Court in Missoula against the government, Department of Justice, Attorney General Eric Holder and U.S. Attorney for Montana Michael Cotter.

The plaintiffs claim the intent of the raids was to shut down the medical pot industry.

"The federal government has made clear its intent to threaten and eventually eliminate any business or enterprise related to the medical use of marijuana," Christopher Williams of the Montana Caregivers Association and Randy Leibenguth of MCM Caregivers claimed in the lawsuit.

The Department of Justice did not comment when contacted Wednesday. Cotter spokeswoman Jessica Fehr also declined comment, saying the U.S. attorney's office had not been served with the lawsuit.




Judge dismisses EA from NCAA antitrust lawsuit
Legal Topics | 2011/05/07 16:03
A federal judge has dismissed video game maker Electronic Arts Inc. from a high-profile antitrust lawsuit challenging the NCAA's long-standing prohibition against paying student athletes for their performance.

But U.S. District Judge Claudia Wilken on Monday refused to drop the bulk of the case, which accuses the NCAA and its marketing company of operating an illegal sports marketing monopoly. Led by former UCLA basketball standout Ed O'Bannon, former athletes allege they are forced to forever sign away their commercial rights to play collegiate sports.

The judge refused to dismiss the NCAA and Collegiate Licensing Co. from the lawsuit that seeks to become a class action representing thousands of former football and basketball players who say the NCAA illegally controls their images forever without compensation.

The NCAA responds that players are free to make commercial deals after they leave college. NCAA policy prohibits players from receiving compensation while they are playing.

The judge said there is enough evidence to continue the litigation. But she said Monday that there was no evidence that Redwood City-based EA conspired with the NCAA to deny the players compensation and she dismissed the company from the lawsuit.

The O'Bannon case and another led by former Nebraska quarterback Sam Keller are being closely watched because of their potential to dramatically reshape the commercial relationship between the NCAA and its athletes. Keller's lawsuit also alleges that the NCAA is unfairly depriving athletes of their share of revenues generated by their performances. But Keller's lawsuit makes different legal arguments, claiming the NCAA is violating the players' commercial rights when it refuses to cut them in on marketing deals using their images. The Keller lawsuit also names EA as a defendant.


States ask US court to overturn health overhaul
Legal Topics | 2011/05/05 16:25
More than two dozen states challenging the health care overhaul urged a U.S. appeals court on Wednesday to strike down the Obama administration's landmark law, arguing it far exceeds the federal government's powers.

The motion, filed on behalf of 26 states, urges the 11th Circuit Court of Appeals in Atlanta to uphold a Florida federal judge's ruling that the overhaul's core requirement is unconstitutional. The judge, U.S. District Judge Roger Vinson, said Congress cannot require nearly all Americans to carry health insurance.

Allowing the law to go forward, the states argued in the 69-page filing, would set a troubling precedent that "would imperil individual liberty, render Congress's other enumerated powers superfluous, and allow Congress to usurp the general police power reserved to the states."

So far, three federal judges, all Democratic appointees, have upheld the law. Vinson and the Virginia judge, both Republicans appointees, ruled against it. It seems certain that the broad health care challenge will be resolved only by the nation's top court, and Vinson suggested in a March ruling that the "Supreme Court may eventually be split on this issue as well."

The filing comes about a month after the Justice Department formally appealed Vinson's ruling, arguing that Congress had the power to require most people to buy health insurance or face tax penalties because Congress has the authority to regulate interstate business.

The legal wrangling started when the states filed a lawsuit last year. Vinson agreed in a Jan. 31 ruling that said the entire health care overhaul passed by the then-Democratic-controlled Congress and signed by President Barack Obama is unconstitutional. It is considered the most sweeping ruling against the health care law.


Kan. House debates forcing lawsuit over casino
Legal Topics | 2011/04/28 14:07
The Kansas House is debating whether it should force the attorney general to file a lawsuit over a proposed state-owned casino south of Wichita.

A resolution being discussed Thursday would require Attorney General Derek Schmidt to sue the state Racing and Gaming Commission's over its decision to allow a casino near Mulvane.

Iowa-based Peninsula Gaming plans to build a $260 million casino complex 18 miles south of Wichita.

Critics question whether the commission's decision in January was premature.

They cite misdemeanor campaign finance charges pending against the company and two top executives in Iowa. Company officials have said they're confident the case will be resolved in their favor, and they've started work on the casino.

Kansas law allows one legislative chamber to direct the attorney general to file a lawsuit.


Treasury risks overpaying law firms
Legal Topics | 2011/04/18 16:38
The Treasury Department paid out more than $27 million to law firms overseeing the financial bailouts without requiring detailed bills or questioning the incomplete records that the lawyers provided, a government watchdog says.

Treasury's "current contracts and fee bill review practices create an unacceptable risk that Treasury, and therefore the American taxpayer, is overpaying for legal services," the Special Inspector General for the Troubled Asset Relief Program said in a report issued Thursday.

Treasury could not have adequately gauged whether the fees were reasonable because the records are so sparse, the report says.

The report criticizes so-called "block billing," in which law firms submit "vague and inadequate descriptions of work, and administrative charges — all of which should have been questioned before payment," the report says.

Treasury staff failed to question the charges for work that was described vaguely, the report says.


Court turns down appeal in murder plot case
Legal Topics | 2011/04/18 16:37
The Supreme Court has rejected an appeal in a murder-for-hire plot after the star prosecution witness forged documents used at trial and lied about his military background.

The court said Monday it will not review a divided appeals court ruling that, by a 6-5 vote, upheld the conviction of Idaho businessman David Hinkson for plotting to kill a federal judge, prosecutor and tax agent. Hinkson is serving a 43-year prison term.

Earlier, a three-judge panel on the San Francisco-based 9th U.S. Circuit Court of Appeals had decided that Hinkson deserved a new trial because the witness, Elven Joe Swisher, lied about his war record, including presenting forged documents.

Swisher later was convicted of defrauding the government of nearly $100,000 in veterans' benefits and wearing unauthorized military medals.


Court ruling could mean NJ budget scramble
Legal Topics | 2011/04/10 18:54

Gov. Chris Christie is warning that if the state Supreme Court rules the way it usually does on a long-running school funding case, it could doom other state services. The build-up about the immediate consequences gives the chapter of the court case known as Abbott v. Burke even more significance than many of the 20 other decisions in the case dating back to the 1980s.

The question now before the court is whether the state's cuts in aid to schools for the current academic year were so deep that New Jersey didn't live up to its constitutional requirement of providing a "thorough and efficient education" to all students.It's not clear when it might be decided.

But lawyers for the state and for children in the poorest school districts filed legal papers last week laying out their sides. Oral arguments are scheduled for April 20. Over the long history of the case, the state Supreme Court has consistently ruled that New Jersey should provide more money to the state's poorest school districts.

The rulings have led to free preschools for 3- and 4-year-olds in those cities. Those programs are often cited as national models and given credit for improving test scores of grade-school students. The infusion of money has also brought replacements and repairs for many of their decrepit school buildings, extra help for teaching key areas such as reading.



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