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Massive LA County court layoffs to begin Friday
Court Watch | 2012/06/15 10:20
Squeezed by state budgets cutbacks, the Los Angeles County court system is launching massive job layoffs, pay cuts and transfers, court officials said Thursday.

Cutbacks that will be implemented Friday will affect 431 court employees and 56 courtrooms throughout the nation's largest superior court system.

Presiding Judge Lee Smalley Edmon bemoaned the loss of longtime employees as well as the impact on public services.

"We are laying off people who are committed to serving the public," she said. "It is a terrible loss both to these dedicated employees and to the public."

The union representing state and municipal employees called Friday's action a "freeze on justice in Los Angeles" and warned that the county would experience "an end to timely justice" with cases being delayed for years, particularly in civil courts.

The American Federation of State, County and Municipal Employees — AFSCME — planned to have representatives on hand to assist employees who will not know they are losing their jobs until they are informed individually Friday.

A spokeswoman for the California Judicial Council said other courts in the state will also be impacted by the budget cuts but will handle them individually. Los Angeles' court system, as the largest, will be the most heavily affected.

Edmon said the drastic actions are the result of a state mandate to reduce annual spending by $30 million. She noted that earlier reductions already saved $70 million, but more cuts in state support for trial courts are scheduled for the next fiscal year.


Powerbroker tied to Nevada Sen. Reid goes to court
Court Watch | 2012/06/09 00:15
A former developer and lobbyist with long ties to Senate Majority Leader Harry Reid and Nevada's political elite turned himself in to federal authorities Thursday after being indicted on criminal charges involving federal campaign contributions.

Harvey Whittemore planned to plead not guilty later in the day before a federal magistrate in Reno, his lawyer, John Arrascada, told The Associated Press.

Whittemore, 55, was indicted by a federal grand jury Wednesday on four counts related to campaign contributions made in 2007 to an unnamed elected federal official.

Once a kingpin in state political circles, Whittemore made campaign contributions to numerous politicians including Republican Sen. Dean Heller and Democratic Rep. Shelley Berkley. But records show only Reid received donations of more than $100,000 on a single day in 2007.



Court: Families cannot sue over loan discount fee
Court Watch | 2012/05/24 16:01
The Supreme Court ruled unanimously Thursday that three families cannot sue a mortgage company for allegedly charging them a loan discount fee without giving them a lower interest rate.

The high court's decision tosses out lawsuits filed in 2008 against Quicken Loans, Inc., in Louisiana by three families who claimed they paid the fees without receiving anything in return. The Freeman family paid $980 and the Bennett family $1,100 in loan discount fees but allegedly did not get lower interest rates in return. The Smith family allegations focus partly on a loan origination fee of $5,100, which they claim was a mislabeled loan discount fee.

A federal judge threw the lawsuit out, saying the Real Estate Settlement Procedures Act made the lawsuit improper. That decision, which was upheld by the 5th U.S. Circuit Court of Appeals in New Orleans, was appealed to the Supreme Court.

The law says no "person shall give and no person shall accept any portion, split, or percentage of any charge made or received for the rendering of a real estate settlement service in connection with a transaction involving a federally related mortgage loan other than for services actually performed."

The argument is over whether that law "prohibits the collection of an unearned charge by a single settlement provider, or whether it covers only transactions in which a provider shares part of a settlement-service charge with one or more other persons who did nothing to earn it," said Justice Antonia Scalia, who wrote the opinion.



Md. highest court recognizes same-sex divorce
Court Watch | 2012/05/19 22:24
Maryland's highest court ruled Friday that same-sex couples can divorce in the state even though Maryland does not yet permit same-sex marriages.

The Court of Appeals ruled 7-0 that couples who have a valid marriage from another state can divorce in Maryland. The case involved two women who were married in California and denied a divorce in 2010 by a Maryland judge.

The ruling may have limited effect because same-sex weddings, and by extension divorces, are set to start in the state in January. However, opponents of the law passed this year are seeking to overturn it in a potential voter referendum in November.

"A valid out-of-state same-sex marriage should be treated by Maryland courts as worthy of divorce, according to the applicable statues, reported cases, and court rules of this state," the court concluded in a 21-page ruling.

It said Maryland courts should withhold recognition of a valid foreign marriage only if that marriage is "repugnant" to state public policy. The court says the threshold is a high bar that has not been met in the case that it ruled on.

Lawyers for the women told the Court of Appeals that is would be unprecedented for the state not to recognize gay marriages performed elsewhere.


Texas high court orders state to pay ex-inmate $2M
Court Watch | 2012/05/18 22:23
The Texas Supreme Court ordered the state Friday to pay about $2 million to an ex-inmate who spent 26 years in prison for murder before his conviction was overturned, a decision legal experts said could set a new standard for when ex-prisoners should be compensated.

Texas has paid nearly $50 million to former inmates who have been cleared. But state Comptroller Susan Combs had resisted paying Billy Frederick Allen, arguing that his conviction was overturned because he had ineffective lawyers, not because he had proven his innocence.

The state Supreme Court, in a unanimous opinion written by Justice Dale Wainwright, disagreed, saying the state's criminal courts had shown Allen had a legitimate innocence claim and he should be paid.

Jeff Blackburn, chief counsel of the Innocence Project of Texas, which works to free wrongfully convicted inmates, said Friday's ruling could open the door for more compensation claims from ex-prisoners.

"The floodgates are not opening, but what this will do is give a fair shake to people who are innocent," Blackburn said. "This is a major step forward in terms of opening up and broadening the law of exoneration in general."

Texas' compensation law is the most generous in the U.S., according to the national Innocence Project. Freed inmates who are declared innocent by a judge, prosecutors or a governor's pardon can collect $80,000 for every year of imprisonment, along with an annuity.



Ferrero sets aside $3 million for Nutella U.S. class action
Court Watch | 2012/04/30 09:25
Italian confectionery group Ferrero has agreed to set aside $3 million to settle a class-action lawsuit championed by a Californian mother after she discovered the group's Nutella chocolate spread packed more calories than jam or syrup.

Notices of class action settlements said that Ferrero USA Inc., the group's U.S. division, would pay up to $4 for every jar of Nutella bought in California since August 2009, or bought anywhere else in the United States since January 2008.

The notices posted on nutellaclassactionsettlement.com said the settlement was for $3,050,000 in total.

Ferrero USA also agreed to "modify certain marketing statements about Nutella" and to give more prominence to nutrition labels on Nutella jars, the notices said.

"Ferrero USA continues to stand by its product," a spokeswoman for Ferrero said on Sunday. "We believe that it is in the best interest of the company to resolve these matters, and have reached an agreement with the parties involved."


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