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Treasury risks overpaying law firms
Court Watch |
2011/04/18 09:57
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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. |
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Judge Considers $30M Dairy Antitrust Settlement
Court Watch |
2011/04/18 09:57
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A federal judge in Vermont is considering moving forward with a partial settlement of an anti-trust lawsuit in which national dairy processor Dean Foods would pay some northeast dairy farmers $30 million.
But U.S. District Court Judge Christina Reiss said Friday she may defer a decision on part of the settlement that would require Dean Foods of Dallas to change its milk-buying practices in the region for 30 months by buying milk from independent farmers, a controversial provision that the plaintiffs say would jump start competition but a national dairy cooperative says would harm some farmers.
I am likely to sever the settlement, Reiss told lawyers during a hearing on Friday.
Farmers have complained for years that Dean, the cooperative Dairy Farmers of America and its marketing affiliate Dairy Marketing Services have come to dominate the milk-buying market and have held down prices paid to farmers.
By agreeing to the settlement, Dean Foods does not admit any liability and continues to maintain that it has not broken any laws, Dean Foods' attorney Paul Friedman said Friday.
It settles a class action lawsuit filed in 2009, which means 5,000 to 10,000 farmers could get a share of the settlement.
During the more than two-hour hearing, both sides urged Reiss to approve the deal, which plaintiff lawyer Kit Pierson said was reached after extraordinarily difficult negotiations with Dean Foods. |
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Court denies appeal over inmate's long sentence
Court Watch |
2011/04/18 05:58
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The Supreme Court has rejected an appeal from a convicted insurance swindler who is protesting his 835-year prison term.
The court did not comment Monday in turning away a plea from Sholam Weiss for his release from prison and return to Austria, where he was arrested after he fled the United States during his criminal trial in Orlando, Fla. Weiss is in prison for his role in the collapse of a life insurance company in the 1990s that cost thousands of people their life savings.
He still may be able to appeal his conviction and sentence, even though an appeals court had earlier ruled that he forfeited his appeal rights when he became a fugitive.
A judge cut 10 years from Weiss' sentence when Austria returned him to the U.S. |
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Court ruling could mean NJ budget scramble
Court Watch |
2011/04/10 12:05
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| pGov. 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./ppThe 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./ppBut 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./ppThe 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./p |
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Split over union law reaches Wis. court race
Court Watch |
2011/04/06 09:14
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| pThe slim margin between Wisconsin Supreme Court Justice David Prosser and his challenger, JoAnne Kloppenburg, has grown slightly in favor of the incumbent as late election numbers are tallied./ppBut the race that reflected Wisconsin's fight over union rights is still too close to call Wednesday morning. With 99 percent of precincts reporting, conservative-leaning Prosser is leading Kloppenburg by 835 votes. Final, official results could vary and a recount appears likely./ppThe race highlights the divide in the state over Republican Gov. Scott Walker's collective bargaining law, which would strip public workers of nearly all their union rights. The issue, which could ultimately be decided by the state Supreme Court, has propelled the relatively unknown Kloppenburg into prominence and heightened voter interest in the election. /p |
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Louisiana to get $12M in Health Net case
Court Watch |
2011/04/06 09:13
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| pThe 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./ppLouisiana Insurance Commissioner Jim Donelon told The Advocate that Louisiana will get the smallest portion of the payout./ppWe 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./ppDonelon 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./ppHealth 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./ppIn 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./p |
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