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.



Louisiana to get $12M in Health Net case
Legal Topics | 2011/04/06 16:32

The Louisiana Supreme Court has ordered Health Net Inc., a major health maintenance organization, to cover more than $180 million in claims by consumers, health care providers and creditors in Louisiana, Oklahoma and Texas.

Louisiana Insurance Commissioner Jim Donelon told The Advocate that Louisiana will get the smallest portion of the payout.

"We have about $12 million coming to us to policyholders, providers and general creditors, meaning companies who sold them supplies or that rented them space," Donelon said.

Donelon said the unanimous ruling, issued Friday, will reimburse all of AmCare Louisiana HMO's members, providers, and creditors for any losses caused by Health Net's conduct.

Health Net sold health plans in the three states to AmCareco Inc. in 1999. In 2002, the troubled health plans were placed under state supervision. Each of the state's insurance departments sued AmCareco and Health Net, alleging fraud, negligence, conspiracy and breach of fiduciary duty.

In 2005, a state district court jury awarded the Texas plaintiffs around $100 million in damages. In 2005, a state judge in Baton Rouge issued similar verdicts against Health Net and awarded $30 million to the Louisiana and Oklahoma plaintiffs.



Former Secretary of State Warren Christopher dies
Legal Topics | 2011/03/21 16:38

A law firm spokeswoman says former Secretary of State Warren Christopher, who worked for peace in Bosnia and the Mideast in the Clinton administration, has died in Los Angeles.

Spokeswoman Sonja Steptoe from law firm O'Melveny & Myers where Christopher was a senior partner says he died at his home Friday night of complications from bladder and kidney cancer. He was 85.

As he prepared to step down in as secretary of state in 1996, he said his proudest accomplishments included helping promote a ban on nuclear weapons tests.

He also tried to foster peace in the Middle East, without much success. He was more successful in the negotiations that produced a settlement in 1995 for Bosnia.



Mississippi high court upholds price-gouging law
Legal Topics | 2011/03/11 20:00

The Mississippi Supreme Court has upheld the constitutionality of the state's price-gouging law.

The justices Thursday unanimously overturned a Winston County judge's ruling that the law was unconstitutionally vague.

Chancellor J. Max Kilpatrick's ruling came in 2008 as he rejected Attorney General Jim Hood's lawsuit accusing a Mississippi oil company of charging too much for fuel after Hurricane Katrina. Kilpatrick has since retired from the bench.

The Supreme Court sent the case back to Winston County to determine if Fair Oil Co. in Louisville violated the law.

Fair Oil was one of two companies Hood sued in 2007. The lawsuit, which represents only one side of a legal argument, accused the company of gouging consumers after Hurricane Katrina struck in 2005.



Father of music group members pleads guilty
Legal Topics | 2011/02/18 17:15
His voice barely audible, the patriarch of the acclaimed 5 Browns classical music group said "guilty" to each charge of sexually abusing his three daughters when they were children.

Thursday's admission in a Provo courtroom means that Keith Brown, 55, will go to prison for at least 10 years.

None of the sisters were in court, but a statement issued to The Associated Press by group spokesman Kimball Thomson said they were satisfied with the plea agreement.

"While clearly the current events surrounding the family are painful, the sisters were well prepared for this day, and are relieved and grateful to close this chapter in their lives," Kimball said.

Brown's three daughters and two sons are part of the classical piano group The 5 Browns, whose albums have topped the classical music charts and who have appeared on "Oprah" and other shows. The group also has been profiled by "60 Minutes."

Brown appeared in Fourth District Count with scratches and bruises on his face but with few other signs of the horrific crash three days earlier in which his Porsche plunged 300 feet into a canyon, also injuring his wife.



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