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JPMorgan Creates $23 Billion Reserve Fund For Litigation Costs

As JPMorgan's legal costs mount from several governmental investigations, the investment firm has set aside a $23 billion reserve fund for litigation costs, The New York Times reports. But all the bank's legal woes will be good for law firms: "Even as defense lawyers publicly complain that government regulators are being too aggressive, they privately celebrate the windfall. Law firms in New York and Washington are collectively earning many hundreds of millions of dollars representing JPMorgan in cases ranging from weak controls against money laundering to commodities trading, according to interviews with senior partners at several of top firms," The Times also reports.

Broadcasters Seek U.S. Supreme Court Review in Aereo Copyright Case

TV broadcasters are challenging in the U.S. Supreme Court Aereo's business model as an infringement on their copyrights in their programming. FierceCable reports: "Broadcasters argue in the petition that Aereo designed its system to exploit what they described as a loophole in copyright law which has allowed Cablevision to launch its network DVR." Aereo specifically set up its service of streaming free broadcast programming through individual antennas within the Second Circuit because of the Cablevision precedent.

FierceCable also reports a ruling for Aereo could have positive implications for "cable operators and satellite TV distributors who pay retransmission-consent fees to broadcasters."

SCOTUSBlog: Justices Seem to Favor Forum Selection Clauses in Oral Argument

SCOTUSBlog has an interesting analysis on an oral argument this week in the U.S. Supreme Court on forum selection clauses. The blog predicts that the Fifth Circuit will be reversed in the first forum selection clause case to get to the justices in a quarter-century. The justices also seemed to favor an argument from an amici brief that a "forum-selection clause gives [defendant] Atlantic Marine a complete defense to litigation in any excluded court," SCOTUSBlog reported.

Texas Supreme Court to Consider Same-Sex Divorce

Next month, the Texas Supreme Court will consider two separate cases of estranged same-sex spouses who married in Massachusetts and want to get divorced in Texas. This blog post notes: "Currently, it is unclear what the decisions of the Texas Supreme Court are likely to be. More than anything else, these upcoming decisions reflect the changing landscape of family law in the U.S. As of now, just over a quarter of the U.S. population lives in jurisdictions that have legalized same-sex marriage. As one of the fastest growing states in the U.S., it is important for Texas law to articulate its approach to these sorts of issues. Indeed, questions regarding same-sex marriage and divorce are likely to become more common throughout the country."

Obama 'Most Aggressive' Since Nixon in War on Leaks

Submitted by Amaris Elliott-Engel on Fri, 10/11/2013 - 07:58

President Barack Obama’s “war on leaks and other efforts to control information are the most aggressive” since President Richard Nixon’s administration, according to the author of a report commissioned by the Committee to Protect Journalists. The report, “The Obama Administration and the Press: Leak investigations and surveillance in post-9/11 America,” was released Thursday.

The report was written by Leonard Downie Jr., who was an editor involved in The Washington Post’s investigation of Watergate, along with reporting by Sara Rafsky.

The committee is usually focused on the state of the media in other countries, and this report is its first comprehensive report on relations between the American executive branch and the media.

Six government employees and two contractors have been prosecuted under the 1917 Espionage Act for allegedly leaking classified information to the press during the Obama administration, while there were only three prosecutions under all other presidents, the report said.

Following Wikileaks' disclosure of classified information, the Obama White House established an Insider Threat Task Force to develop a government-wide program for “’insider threat detection and prevention to improve protection and reduce potential vulnerabilities of classified information from exploitation, compromise or other unauthorized disclosure,’” Downey wrote.

As a result, every federal department and agency was told to set up Insider Threat Programs to prevent government workers from disclosing information without authorization.

Reporters also shared that their Freedom of Information Act requests face “denials, delays, unresponsiveness or demands for exorbitant fees, with cooperation or obstruction varying widely from agency to agency,” Downey said.

During a press conference on the report Thursday morning, Downey said that government employees are increasingly afraid to talk to the press and not just about classified information. Downey also said that Obama’s promise to be the most transparent presidency in American history has meant avoiding the institutional press in favor of a “sophisticated governmental public relations strategy” focused on social-media messaging and creating its own web-site content.

For example, photographers are allowed much less access to the president than in the past, and most photographs of Obama are from the White House institutional photographer, Downey said.

“None of these measures is anything like the government controls, censorship, repression, physical danger, and even death that journalists and their sources face daily in many countries throughout the world—from Asia, the Middle East and Africa to Russia, parts of Europe and Latin American, and including nations that have offered asylum from U.S. prosecution to [leaker Edward] Snowden,” Downie wrote in he report. “But the United States, with its unique constitutional guarantees of free speech and a free press—essential to its tradition of government accountability—is not any other country.”

Jack Goldsmith, a former lawyer for President Bush’s administration told Downey that leakers have to be prepared to face legal consequences, but that leaks ‘“serve a really important role in helping to correct government malfeasance, to encourage government to be careful about what it does in secret and to preserve democratic processes.’”

Brain Cancer Case Gets New Trial

Submitted by Amaris Elliott-Engel on Fri, 10/11/2013 - 07:57

A Philadelphia judge was wrong to enter a compulsory nonsuit in the first of over 30 cases involving allegations that brain cancers were caused by a carcinogen leaking from a chemical plant, the Pennsylvania Superior Court ruled this week.

A two-judge panel of the Superior Court reversed Philadelphia Court of Common Pleas Judge Allan L. Tereshko in a non-precedential decision. Judge Kate Ford Elliott authored the opinion in which Judge Cheryl Lynn Allen joined.

The trial court did not have the authority to enter a compulsory nonsuit in the midst of plaintiff Joanne Branham’s case-in-chief, Ford Elliott said. Branham’s spouse, Franklin Delano Branham, died from brain cancer, and Branham and other plaintiffs allege that the release of vinyl chloride into the air and groundwater in and around McCullom Lake, Ill., caused a brain cancer and tumor cluster in the village of 1,100 residents. Rohm and Haas, which is now owned itself by Dow Chemical, has owned the plant since 2009.

“We find no authority to support Rohm and Haas’ claims that a trial court can grant a nonsuit in the middle of a trial before a plaintiff is finished presenting her evidence based on its own evaluation of the remaining evidence,” Ford Elliott said. “To properly grant a compulsory nonsuit in this case, the trial court should have allowed [plaintiff] to present her remaining witnesses and ruled on the motion for nonsuit after [plaintiff] had concluded her case-in-chief.”

The trial judge entered a compulsory nonsuit after the plaintiffs’ expert epidemiologist ran into trouble on cross-examination. Dr. Richard Neugebauer “became unsure if one of the individuals he had used in his analysis was properly included in the study and admitted to making last minute changes to his report that Rohm and Haas’s attorneys may not have received,” according to the opinion. Then Tereshko directed Neugebauer to review his notes to clarify the issue, and the epidemiologist made several additional changes to his report overnight. After the defense moved to strike Neugebauer as an expert witness, Tereshko granted the motion and said the changes in the report may have been “’tantamount to fraud on the court,’” according to the opinion. The judge dismissed the jury before the rest of the plaintiff’s’ experts, including toxicologist Gary Ginsberg, testified.

The trial judge did not rule on plaintiff’s motion to grant a mistrial or the defense motion to grant a compulsory nonsuit until six months later.

Plaintiff’s counsel, Aaron J. Freiwald of Layser & Freiwald, said the case “underscores the idea that there really are certain issues that need to be decided by a jury.” Defendants are often trying to get cases decided as a matter of law, but once the case gets past the summary judgment stage, the motion in limine stage and the evidentiary-motion stage, the case has to go to the jury unless a nonsuit is appropriate after the close of the entire plaintiff’s case-in-chief, Freiwald said.

The panel reversed Tereshko on striking the testimony of the neuropathologist who testified prior to Neugebauer, but the panel upheld Neugebauer’s testimony being stricken. The issue was waived without an objection at the time, Ford Elliott said.

Neugebauer’s testimony could be used in the cases of other plaintiffs, and “epidemiology is just one lens” through which to see the evidence in the case, Freiwald said.

The panel also upheld the trial judge’s ruling striking the plaintiff’s strict liability claim. “Appellant’s claim really sounds in negligence, not strict liability,” the Superior Court said. “Appellant alleges that the unlined and unsealed pit allowed vinyl chloride to escape into the air and the groundwater. It was the alleged failure to line the settling basin, or lagoon, properly that allowed the toxic chemicals to leech into the groundwater.”

The panel also upheld Tereshko’s decision to deny recusal. “Although the trial judge’s decision was incorrect, his attempt to distance himself from the emotion he felt showed a conscientious awareness of his need to make an impartial ruing,” Ford Elliott said.

In a statement, Rohm and Haas expressed disappointment about a new trial being ordered on the negligence claim, while noting the strict liability claim’s dismissal was upheld. “The Superior Court also upheld the decision to strike plaintiff’s expert epidemiology witness whose reports the trial court found ‘troubling’ and ‘tantamount to fraud on the court.’ [Rohm and Haas] continues to believe that the plaintiff’s injury claims cannot be supported by scientific evidence and will continue to defend itself in this matter,” the company’s statement said.

Rohm & Haas also might seek an appeal to the Pennsylvania Supreme Court.

Defense counsel was Kevin Van Wart of Kirkland & Ellis in Chicago.

Correale F. Stevens, who between the time of oral argument in the case and the decision this week joined the Supreme Court as an interim justice, did not participate in the decision.

VA Appeals Court Considers Subpoena for Yelp Reviewers in Defamation Case

A Virginia carpet cleaner allowed a rug cleaner to subpoena Yelp about the identities of negative reviewers of its business, The Raw Story reports. The carpet cleaner argues its business rival made the reviews. Yelp was found in contempt of court for not complying, and the Virginia Court of Appeals heard oral argument in the case this week. Advocacy group Public Citizen explains, according to The Raw Story, '“courts elsewhere have recognized that before stripping the defendant of a First Amendment right, they should take an early look at the case to confirm that the speaker’s statement appears to be false and defamatory, such that the company’s claim is viable. In this appeal, where the users’ original claims about [carpet cleaner] Hadeed’s practices are echoed by dozens of other users whose reviews have not been challenged as defamatory, Yelp urges Virginia to adopt that approach.”'

Op-Ed: Sexual Orientation Conversion Therapy Is Hateful ... But Should Be Protected Speech

Lawyers for the libertarian Institute for Justice wrote in a New York Times op/ed that the Ninth Circuit was wrong to rule against First Amendment challenges to a "California law that prohibits licensed medical providers from using talk therapy to try to change a minor’s sexual orientation." The Ninth Circuit found that such therapy is “conduct,” not “speech,” according to the piece. The risk of allowing such a ruling to stand is that labeling expression as conduct, not speech, allows the goverment to regulate expression in any which way, Institute for Justice argues.

Hearst Loses Copyright Fight Against Aereo in Boston

Just this morning, Hearst, which has a TV station in the Boston area, lost its argument for a temporary injunction in the District of Massachusetts against Aereo, GigaOm reports. Hearst argues that the use of individual antennas by Aereo to rebroadcast its copyrighted television content violates its public performance rights. But the judge said a temporary injunction is unnecessary because '“it seems more likely that the harm will take several years to materialize,'" GigaOm reports.

Indonesia: No Intellectual Property Protection For Cultural Heritage

Despite ongoing negotiations at the World Intellectual Property Rights Organization, no international legal protection has yet been worked out to protect cultural heritage like traditional knowledge and traditional cultural expression, Indonesia's Antara News reports. Cultural heritage is left unprotected by intellectual property law.

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