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Court hears arguments in new global warming case
Headline News | 2011/04/19 16:04
The Obama administration and leading power companies are going before the Supreme Court in an effort to block a global warming lawsuit aimed at forcing cuts in greenhouse gas emissions.

The justices are hearing arguments Tuesday in the court's second climate change case in four years. A half-dozen states, New York City and three land trusts sued four private utilities and the Tennessee Valley Authority over emissions of carbon dioxide from plants in 20 states. The lawsuit says carbon dioxide, which is produced when coal, gasoline and other fossil fuels burn, is one of the chief causes of global warming.

The administration and the companies say federal courts should not set environmental policy. The administration says the Environmental Protection Agency is developing regulations that would accomplish what the states are seeking.


Media ask court to unseal gay marriage trial tapes
Top Legal News | 2011/04/19 16:04
Media organizations are joining lawyers for two-same-sex couples in urging a federal appeals court to release videotapes of a lower court trial on California's gay marriage ban.

The 13 organizations, which include The Associated Press, argued in a motion filed Monday with the 9th U.S. Court of Appeals that the videos are court records that the First Amendment requires to be open to the public.

Sponsors of voter-approved Proposition 8 asked the 9th Circuit last week to keep the tapes sealed and to order the trial's presiding judge to return his personal copies.

The move came after now-retired Judge Vaughn Walker, who declared Proposition 8 unconstitutional, used a brief segment of the video in several public talks.


Court denies appeal over inmate's long sentence
Court Center | 2011/04/19 16:02
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.




Democrats criticize hiring of firm for House remap
Legal News | 2011/04/19 16:02
Democratic lawmakers are raising complaints about Republican House Speaker Jim Tucker's decision to hire a law firm with national GOP ties to submit the state House remap to federal officials.

The head of the House redistricting committee, Democratic Rep. Rick Gallot, said Friday the choice creates the appearance of impropriety because the firm had given the Republican delegation advice about redistricting.

The Senate is using its staff to do its redistricting submission.

Tucker has hired Washington, D.C.-based Holtzman Vogel PLLC to guide the redesign of the 105 House districts to the U.S. Justice Department for review under the Voting Rights Act.

Tucker says he chose a firm with the expertise needed for the complex legal work.

The managing partner of Holtzman Vogel is chief counsel to the Republican National Committee.




Treasury risks overpaying law firms
Legal News | 2011/04/18 16:03
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.


High court takes no action on Va. health care case
Legal News | 2011/04/17 16:03
The Supreme Court has taken no action on Virginia's call for speedy review of the health care law.

Virginia Attorney General Ken Cuccinelli is asking the court to resolve questions about the law quickly, without the usual consideration by federal appellate judges and over the objection of the Obama administration.

The case was among those that were scheduled to be discussed in the justices' private conference on Friday, but there was no announcement about the case when the court convened on Monday.

The silence could mean, among other things, that one justice asked for more time to think about the case or to write a short opinion that would accompany an order.

The justices meet again on Friday to discuss pending cases.


No Second Chances for Faulty IRA Trusts
Lawyer Blogs | 2010/09/07 14:17
Postmortem wealth transfers to IRA beneficiaries continues to present estate planning challenges.  Although perhaps not the final word on the matter, the IRS now prevents postmortem trust reformation designed to allow trustees to treat them as designated beneficiary trusts.  The relevant ruling is PLR 201021038.

The broadness of the limited power of appointment was perhaps the most critical flaw in the subject trust.  It was too broad to be able to determine the correct measuring life.  There were other flaws as well, most notably the trust’s naming of charities as potential beneficiaries.

The tax consequences of this ruling are devastating to any similarly-flawed trust:  Beneficiaries cannot stretch out required withdrawals over the lifespan of the oldest beneficiary but would presumably have to withdraw all money from the plan within just a few years.

Unless a tax court modifies this ruling – and until it does – the bar is very high indeed for those who draft trusts for the purpose of receiving postmortem IRA distributions.  In short, get it right the first time!  I would read and reread
section 401(a)(9) to ensure the trust conforms to the section’s standards precisely.  Going forward, you may also wish to give grantors an opportunity to review the terms of their trusts to ensure they conform with the changing law on this subject.  A brief look every three-to-five years is appropriate, although factors like ill health


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