Obama legal team meets with anti-torture generals
Legal Topics | 2008/12/03 23:12
A dozen retired generals met with President-elect Barack Obama's top legal advisers Wednesday, pressing their case to overturn seven years of Bush administration policies on detention, interrogation and rendition in the war on terror.

"President-elect Obama has said that Americans do not engage in torture, that we must send a message to the world that America is a nation of laws, and that we as a nation should stand against torture. He believes that banning torture will actually save American lives and help restore America's moral stature in the world," said an official close to the transition who asked not to be named to discuss internal matters. "This meeting is timely and very helpful to advancing this work."

Among those who met with Eric Holder, Obama's pick to be attorney general, and Greg Craig, tapped to be White House counsel, were Gen. Charles Krulak, a former Marine Corps commandant, and retired Marine Gen. Joseph Hoar, former chief of the Central Command.

Hoar called the meeting "productive."

"It's important that the dialogue is going," Hoar said. "Part of the challenge here is big and philosophical. Part is nuts and bolts. How do you translate the rhetoric of the campaign and the transition period into action?"

The generals would like to see authority rescinded for the CIA to use harsh interrogation methods that go beyond those approved for use by the military, an end to the secret transfer of prisoners to other governments that have a history of torture, and the closing of the U.S. jail at Guantanamo Bay Naval Base.

President George W. Bush vetoed legislation championed by the retired officers that would have held the CIA to the military's interrogation methods in March.

Obama has criticized the use of torture in interrogating detainees and promised to close Guantanamo Bay's military prison. The transition team official said no decisions about the detainee policies will be made until after the inauguration and Obama's full national security and legal teams are in place.



Court upholds $156M Palestinian terror verdict
Legal Topics | 2008/12/03 23:03
A federal appeals court has upheld a $156 million judgment against three Palestinian charities accused of bankrolling terrorism, but dropped a Chicago man from the long-running civil suit.

The opinion was filed over the killing by Hamas terrorists of American-born student David Boim (BOYM). It says donors to charities are liable if those charities engage in terrorist acts.

But the court dropped Chicagoan Muhammad Salah (suh-LAH') from the case, saying he was in jail when the anti-terrorism law was passed, so he couldn't have violated it.

Boim was fatally shot in May 1996 while standing at a bus stop in a West Bank town near Jerusalem.

The case isn't over who pulled the trigger, but who must pay damages.



Bally Total Fitness again files for Chapter 11
Legal Topics | 2008/12/02 23:11
Bally Total Fitness Corp. filed for Chapter 11 bankruptcy protection on Wednesday for the second time in less than two years, hindered by debt and limited refinancing options amid the credit crunch.

The Chicago-based gym operator will use existing cash reserves to continue operating. Bally, which again filed in the U.S. Bankruptcy Court for the Southern District of New York, plans to sell itself or reorganize under Chapter 11.

Early last year, faced with more than $800 million in debt and just $45 million in cash, Bally defaulted on its debt. The company's shares were delisted from the New York Stock Exchange for failing to meet minimum price and market capitalization requirements. Bally also was delinquent in filing its 2006 annual report because of errors in historical member data.

Bally then filed for Chapter 11 under the control of Harbinger Capital Partners Master Fund I Ltd. and Harbinger Capital Partners Special Situations Fund LP, which invested about $233.6 million in exchange for Bally's common equity. It emerged in the fall of 2007 as a private company.

Chief Executive Michael Sheehan, who replaced former CEO Paul Toback this June, said Bally's long-term debt and lack of refinancing options left limited alternatives, despite ongoing efforts to cut expenses and streamline operations.

According to CapitalIQ, Bally's has total debt of $811.3 million and cash and short-term investments of just $70.8 million. Total assets are listed as $411.4 million.

"The burden of Bally's long-term indebtedness, coupled with the lack of refinancing options in today's constrained credit markets, have limited our ability to restructure using out-of-court vehicles, leaving Bally with no alternative other than the actions announced today," said Sheehan in a statement.

The company hopes to emerge from bankruptcy "as promptly as possible."

Bally has retained Kramer Levin Naftalis & Frankel LLP as bankruptcy counsel and Houlihan Lokey Howard & Zukin as financial advisors.



Clintons' ex-NY neighbor gets 25 years for murder
Legal Topics | 2008/12/02 23:10
A man who lived a few doors down from Bill and Hillary Clinton was sentenced Tuesday to 25 years to life in prison for shooting and killing his wife.

Carlos Perez-Olivo, 60, listened impassively as Westchester County Judge Barbara Zambelli imposed the maximum sentence and said, "You are a master of deceit who contrived a diabolical plan to murder your wife for your own financial gain."

Perez-Olivo, a disbarred lawyer, was convicted two months ago of second-degree murder and weapon possession in the death of his 55-year-old wife, Peggy.

She was shot in the back of the head in November 2006 as they drove home to Chappaqua, the New York City suburb where the couple lived on the same cul-de-sac as the Clintons. Perez-Olivo also was wounded, but prosecutors said the gunshot wound he suffered was minor and self-inflicted.

Perez-Olivo declined the opportunity to speak before sentencing, saying "I have nothing to add."

His lawyer, Christopher McClure, had asked the judge for the minimum sentence, 15 years to life, after asserting that the jury came to the wrong decision about a case built entirely on circumstantial evidence. Outside court, he promised an appeal.

Prosecutors said Perez-Olivo killed his wife to get her life insurance, worth nearly $900,000.

Perez-Olivo, who had been disbarred for misconduct in his representation of criminal clients, blamed the attack on a carjacker, possibly a hit man hired by an angry client.



Hawaiian Telcom files for bankruptcy protection
Legal Topics | 2008/12/02 23:07
Hawaiian Telcom Communications Inc., the largest telephone company in Hawaii, said Monday that it had filed for Chapter 11 bankruptcy protection.

The company had been working with creditors since October on a debt-restructuring agreement and said it decided the bankruptcy-protection filing was the best course of action. It blamed the filing partly on increased competition, economic volatility and its failure to meet capital expenditure needs.

President and Chief Executive Eric Yeaman, in a letter to customers Monday, stressed that the company was not going out of business and that service would not be interrupted.

Hawaiian Telcom posted a loss of $34 million in the third quarter, its third straight quarterly loss this year. Last month the company filed documents with the Securities and Exchange Commission stating that it may seek court protection if talks with creditors failed.

Hawaiian Telcom postponed a $26 million interest payment in November and was in the midst of a 30-day grace period, which ended Monday.

Hawaiian Telecom is carrying more than $1 billion in debt, the result of financing that was arranged three years ago for the company's $1.6 billion sale from Verizon Communications to Carlyle Group, a private-equity firm based in Washington, D.C.



Calif. high court asked to hear gay marriage cases
Legal Topics | 2008/11/17 23:07
The state attorney general and sponsors of the ballot initiative that banned same-sex marriage in California urged its Supreme Court to hear a series of lawsuits seeking to overturn the ban, saying the matter is too urgent to be unsettled.

"The petitions raise issues of statewide importance, implicating not only California's marriage laws but also the initiative process and the Constitution itself," Attorney General Jerry Brown argued in his filing.

"This court can provide certainty and finality in this matter," he said.

Proposition 8, which passed with 52 percent of the vote earlier this month, overturned the high court's May decision legalizing gay marriage in California. The measure inserts language into the constitution limiting marriage to one man and one woman.

Gay and civil rights groups, the city of San Francisco and other plaintiffs have asked the court to void the measure on the grounds that voters did not have the authority to make, what they say, is a fundamental constitutional change.



US appeals court hears arguments in ND hemp case
Legal Topics | 2008/11/13 23:09
An attorney for two North Dakota farmers argued they should be able to grow industrial hemp under state regulations without fear of federal criminal prosecution.

Attorney Joe Sandler told a panel of the 8th U.S. Circuit Court of Appeals on Wednesday that his clients' lawsuit against the federal Drug Enforcement Administration should move forward so that the farmers might have a chance to use their state permits to grow hemp for seeds and oil. The lawsuit was dismissed in U.S. District Court.

At the heart of the dispute is whether the farmers — state Rep. David Monson and Wayne Hauge — can cultivate hemp under North Dakota laws without violating the federal Controlled Substances Act.

Hemp is related to the illegal drug marijuana, and under the federal law, parts of an industrial hemp plant are considered controlled substances.

Sandler argued that while hemp plants might fall under the federal law, the law doesn't apply because the parts of the plant that could be considered a drug would never leave the farms. He also underlined the differences between marijuana and the crop the farmers want to grow, saying the judge who dismissed the case incorrectly treated marijuana and hemp as the same thing.

Industrial hemp is legally grown in several countries, including Canada, and the U.S. imports many products made from hemp seed, oil and fiber. The plant has much lower concentrations of the psychoactive chemical THC found in marijuana plants.

Melissa Patterson, a Justice Department attorney, told the appeals panel that Congress does have the power to regulate the crop in this case and that Congress has determined through the Controlled Substances Act that the plants, whether used for drugs or not, should be restricted.



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