Saturday, May 31, 2014

Dubious in the First Degree

While many folks from the heartland despise the New York Times for its purported coddling of criminals, its contents don't always bear out this sensibility. It's done it again by publishing Lawrence Downes' homage to ignorance in its editorial notebook.

Payback is a bitch, and to the extent Downes' screed offers anything, it's the insight to what motivates this tyranny of the majority against the 600 Long Island Railroad retirees on disability who had the misfortune of following the LIRR's advice and going to Dr. Peter Ajemian. Long Islanders hate the LIRR. They hate the price of tickets. They hate having to stand on their daily commute despite the absurdly expensive cost of the ride. They hate the uncaring conductors enforcing rules that presume their passengers to be criminals seeking to get free rides. The LIRR has done much to cause this hatred, and only a fool would deny it's well deserved.

This is payback time. Finally, the media and the government have given us an easy target of this hatred, this simmering anger, and the rest of us, the commuters, the business people who paid the hated Commuter Tax, have an excuse to unleash our venom.

For a working schlub who commutes from the suburbs, the Long Island Rail Road disability scandal of 2008 was powerful evidence that the game of life is rigged.

Hundreds of railroad employees — engineers to white-collar managers — would retire in fine health as early as 50, then become instantly and lucratively disabled. If they took their phantom neck and back pain to the right doctor and to an obscure federal railroad board that almost never said no to a disability claim, the checks would start to flow. The daily grind turned into daily golf.

Hundreds?  Name them, Downes. After years of investigation, the government has prosecuted a grand total of 33 defendants, of which 25 have pleaded guilty. Does this amount to hundreds on disability playing "daily golf" using the New York Times version of math?

The scheme cost taxpayers more than a quarter of a billion federal dollars from 2000 to 2008. It also gouged the L.I.R.R., which had to pay for all those early retirees’ pensions and for overtime and training new employees. What was most shocking about this gravy train was how many L.I.R.R. employees were on it. Every year from 2000 to 2008, between 93 percent and 97 percent of employees over 50 who retired with 20 years of service got disability payments. Experts had to wonder what other workplace, besides the gulag, crippled so many of its workers.

Experts knew exactly what happened, even if pundits were confounded. Older employees cost the LIRR a lot of money. They were paid at a much higher rate than new employees, and to reduce costs, the LIRR sought to persuade older workers to move on so they could be replaced with far less expensive employees. Nothing hard to grasp here, Downes. It's just money.

So the LIRR held seminars for the older workers about how they could retire on disability, and steered workers to facilitators who would help them navigate their way through the Railroad Retirement Board's disability system. These workers were sent to physicians who knew what was needed and could help them obtain a disability annuity.

Of course (and nobody seems to get this part of it), the RRB would have these retirees examined by their own physicians, who would review not only the narrative reports of docs like Ajemian, but the treatment notes, x-rays and MRI's as well.  Suggesting that one doc like Ajemian could single-handedly defraud the federal the government is absurd, unless you eliminate the nasty facts and ignore the parts that don't conform to the narrative of payback.

It's not that this doesn't give rise to issues. A railroad disability isn't like a disability that applies to desk jockeys. It's an occupation disability, where it's given because of the inability to do railroad work, meaning those guys who fix the broken switches in the middle of the night in a snowstorm so you can hate them during your morning commute.

Do you really want the guy popping Vicodin because of his herniated disks responsible for the lives of a thousand people?  The potential for harm is so great that railroad workers have been singled out for random drug testing, approved by the Supreme Court in 1989 in Skinner v. Railway Labor Executives’ Assn even thought suspicionless testing would be unconstitutional if applied to, say, New York Times pundits. 

Even putting aside these and myriad other "details" wholly ignored by the media, there remains a flagrant flaw:

The Railroad Retirement Board has only now decided to cut off payments to about 600 of the dubiously disabled, months after the doctor who signed off on their diagnoses, Peter Ajemian, pleaded guilty to fraud in federal court.

Meet the new criteria for terminating rights by the federal government, dubiousness. Forget "beyond a reasonable doubt," "preponderance of the evidence" or "probable cause." Heck, not even reasonable suspicion. Dubiousness. And why does the New York Times endorse the new standard of "dubiousness" for deprivation?

Disenchanted riders are counting on the feds and the L.I.R.R. to get the money back, and send the belated message that the schemers will be punished.

It's not about proof of wrongdoing. There is no proof of wrongdoing. The only "proof" is that guys with missing limbs and multiple surgeries went to Peter Ajemian (plus the unmentioned RRB doctors, but let's not muddle up anger with facts).  As long as people are angry, we don't need no stinkin' evidence.

Lest someone get the misimpression that it's just the Times feeding into the anger and ignorance that pervades the media attention, Newsday offered an editorial as well:

Now the LIRR wants to revoke their pensions as well. Workers who are truly disabled can reapply for disability benefits -- a hassle, probably, but a crucial step to whittle out those who committed fraud.

Because it would be far too hard to expect the government of the United States of America to figure out first whether someone did wrong before convicting them of dubiousness in the first degree and denying them due process?  The difference here is that expectations of thoughtfulness by Newsday are inherently lower than that of the Times. Tell the families who use the disability annuity for food that they just need to suffer the hassle of the next year without it to make the government's job easier.

As far as I can tell, I may be the only voice speaking out for the LIRR disabled, which is itself curious given that I commuted for 25 years on the railroad and hate the LIRR as much as the next guy. But my hatred of the railroad doesn't obscure the facts, my rage doesn't make me desire payback from innocent targets.

For those of you who rail about constitutional violations when it comes to the police, what's being done here isn't materially different. These 600 have been painted with the Ajemian brush, though none have been found guilty of any fraud nor afforded a fair opportunity to challenge the taint imputed to them for committing the crime of dubiousness. 

But then, you aren't getting a disability annuity, so why should you care if the government wrongfully beats the crap out of some other guys, as long as you get to go about your life unimpeded. And besides, everybody hates the LIRR, so it's just too hard to muster any sympathy.  Too hard for Newsday. Too hard for Downes. Too hard for the New York Times. Thinking is too damn hard. Let's just burn them all at the stake and call it a day.







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Source: http://blog.simplejustice.us/2013/07/08/dubious-in-the-first-degree.aspx?ref=rss

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No, Amazon.com Can't Have the .amazon Domain

The Internet Corporation for Assigned Names and Numbers rejected the e-commerce company's bid for the top-level domain ".amazon."

Source: http://www.law.com/jsp/law/sign_me_in.jsp?article=http://www.law.com/corporatecounsel/PubArticleCC.jsp?id=1202657185592&rss=newswire

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Comity Prompts Court’s Deferral 

A Richmond Circuit Court denies plaintiff’s motion to add party defendants, and says these proposed defendants are the same ones named as defendants in a companion case pending before another judge of this court and it appears plaintiff is seeking an end run around an adverse ruling by another court. Since the issue of whether ...

Source: http://valawyersweekly.com/2014/01/02/comity-prompts-courts-deferral/

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Legal Ethics and Cybersecurity

Since 2009, the FBI has warned that law firms have cybersecurity problems with potentially far-reaching consequences. Changes to ethical rules, as a result of the American Bar Association's Ethics 20/20 effort, have clarified that keeping up with technology is a component of attorney competence. Where do ethics rules and cybersecurity measures intersect? In this episode of The Kennedy-Mighell Report, Dennis Kennedy and Tom Mighell discuss cybersecurity in the context of legal ethics, how ethical rules place demands on lawyers to take security measures, and practical approaches to the vital issue of cybersecurity.

Source: http://legaltalknetwork.com/podcasts/kennedy-mighell-report/2014/03/legal-ethics-cybersecurity

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LawBiz® Legal Pad: Selling Your Practice in the Internet Age

Ed discusses the issues in selling a law practice.

Source: http://feeds.lexblog.com/~r/LawBizBlog/~3/F5ZKvXzw9NM/

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Townhome Neighbors Can’t Challenge Access 

Plaintiff townhome owners do not have standing to challenge defendant developer’s use of a 50-foot easement that runs between a church and the townhome community for access and a connection to a proposed development with seven new homes; the Fairfax Circuit Court says plaintiffs have not shown they would suffer any particularized harm from installation ...

Source: http://valawyersweekly.com/2014/01/02/townhome-neighbors-cant-challenge-access/

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THE PRACTICE: Retaliation Suits Put Firms Up Against the 'Ropes'

A second critical maxim of employment law litigation is illustrated by the Ropes & Gray lawsuit: Do not speak ill of the departed.

Source: http://www.nationallawjournal.com/id=1202631180267?rss=rss_nlj

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Fighting Video with Video

Sheriff's deputies in Clark County, Ohio, have been given dispensation to wear "pocket cameras" on the job. Not because someone decided it was a good idea for them to video their interactions with member of the public, which is not only a perfectly fine thing to do, but one that has been embraced by other department. According to the Dayton Daily News:
Clark County Sheriff’s deputies are wearing pocket cameras that record their work to help their cases and to protect themselves against accusations of misconduct.

“Every call we go on, someone’s going to record us,” Clark County Sheriff Gene Kelly said. “We have that same technology.”

Deputies are not required to wear the cameras but can purchase them independently or with their uniform allowance.

So that's how it's going to be, if we record them, they record us. Tit for tat. Fight fire with fire. So nobody in Dayton will be arrested or hassled for videotaping police anymore? What's wrong with that?

Kelly said that law enforcement can use the cameras to their benefit if there are false allegations.

“They say a picture is worth a thousand words,” Kelly said.

What Elliott records with his camera can be used for evidence.

“If I feel there are evidentiary purposes, I will submit it to the courts,” said Elliott, who has worn his for about a year.

Of course, that's not how it worked out when Rory Bruce was tried, but it reveals the one-way street attitude that video is going through on its way to maturity. When the cops want to use it, because it benefits them, it's perfect. A picture is worth a thousand words. When it reflects poorly on cops, it never tells the full story and should be completely disregarded.

But what the Clark County Sheriff's office is doing shows the danger of playing this game. Inexplicably, police haven't quite gotten the memo that they are rather unique public employees. They aren't let loose on the streets with guns and shields because they are just a bunch of cool guys, but because they hold a special authority that society has entrusted to them to protect and serve.

When they take the oath and strap on the Sam Browne body armor, they do with the knowledge that they are no longer acting as ordinary people who just happen to be entitled to seize other ordinary people by pointing a gun at their head. Their authority comes from the job, from the People, who put up the money for their uniform allowance.

Are there rules for the use of pocket cameras in Clark County? Who decides when the camera gets turned on? Must deputies preserve what the camera sees, whether it's good for them or not? Does Gene Kelly, the Sheriff, get to decide what's of "evidentiary value" and what's not?  Who preserves the integrity of the video? On whose computer does it get downloaded? Or deleted? Or altered? 

A picture may be worth a thousand words, but that's true whether the picture is accurate or modified to show something false. And if the picture shows a cop doing something bad, then the lack of a picture is worth even more words, the words of argument that there is no proof of a beating, a false arrest, a killing.
Members of the Clark County Sheriff’s office are not permitted to have original copies of the digital media evidence after their shifts, according to digital media evidence policies for the office.

And what happens to the deputies if they do? Who decides what gets uploaded after a shift? Is this intended to prevent a deputy from screwing with videos at home or uploading embarrassing videos on Youtube of their interactions on the job?

“They can be used to protect deputies and civilians to be sure everything is safe and appropriate,” Hunt said.

Officials believe that the cameras will be helpful in protecting themselves and the community.

“I think there will be a time when everyone carries one,” said Kelly.

There probably isn't anyone who disagrees with this, though its hardly as simple as Kelly would have it.  We're still a ways off from figuring out how video will best serve  "deputies and civilians," ignoring, of course, that deputies are civilians, but I hesitate to be overly critical of Ben Hunt, human resources and labor relations administrator at the Clark County Sheriff’s Office, for his confusion. It's got Tale of Two Cities potential, best and worst at the same time.

But the set up of deputies carrying personal video to offset the public having video of their own smacks of a deeply entrenched "us" versus "them" problem, and provides all sorts of opportunity for facile abuse.  Cops want to video their interactions for everyone's benefit? Cool. But then it has to be done right, used from the initiation of all interactions and remain on until the bitter end, preserved in a manner that secures it from any alteration and available to everyone, cop or non-cop alike, should it be needed. 

Why isn't the public required to do so if that's what you demand of cops?  Because you are cops, whose function is to protect and serve at the behest of the public.  This is the life you chose and the obligation that goes with it.











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Source: http://blog.simplejustice.us/2013/07/14/fighting-video-with-video.aspx?ref=rss

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After Private Pilots Complain, Customs Rethinks Intercept Policy

A crackdown by U.S. Customs and Border Patrol agents on drug smugglers is causing trouble for private pilots. Pilots say they are sometimes enduring hours of questioning by police searching for drugs.

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Source: http://www.npr.org/2014/05/28/316319441/after-private-pilots-complain-customs-rethinks-intercept-policy?ft=1&f=1070

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Friday, May 30, 2014

When it comes to America's waterways, we have proven repeatedly that we can't wait ... to make costly mistakes (Florida Times-Union)

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Source: http://news.feedzilla.com/en_us/stories/law/video/378093806?client_source=feed&format=rss

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Iran judge orders Facebook CEO to appear in court

[JURIST] A judge in the southern Iranian province of Fars on Tuesday ordered [ISNA report; in Persian] Facebook [corporate website] founder and CEO Mark Zuckerberg to appear in court regarding complaints that his company's Instagram and Whatsapp applications have violated individuals' privacy. The Iranian Students' News Agency [official website] quoted Iranian Internet official Ruhollah Momen-Nasab in saying that, under the court ruling, the "Zionist" entrepreneur or his attorney must appear in court to defend against the accusations. Zuckerberg is unlikely...

Source: http://jurist.org/paperchase/2014/05/iran-judge-orders-facebook-ceo-to-appear-in-court.php

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When it comes to America's waterways, we have proven repeatedly that we can't wait ... to make costly mistakes (Florida Times-Union)

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Source: http://news.feedzilla.com/en_us/stories/law/video/378093806?client_source=feed&format=rss

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How to Manage Your Paralegal Career in Today’s Economy

Today's economy can be challenging for paralegals. Make sure you're taking the right steps to advance your career. On this episode of the Paralegal Voice, host Vicki Voisin interviews future President of NALS Karen McElroy. Together they discuss what you should be doing as a paralegal to get ahead and stay ahead in this job market.
Karen McElroy will become the President of NALS at the end of February 2014. She has been working in law since 1981 in a multitude of capacities including legal secretary, legal assistant, and paralegal. Karen is a veteran of the U.S. Air Force and Ohio Air National Guard. Special thanks to our sponsor, NALA.

Source: http://legaltalknetwork.com/podcasts/paralegal-voice/2014/02/manage-paralegal-career-todays-economy

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A Look Inside the Massachusetts Bar Association

Many people don't know how advocacy plays an important part of any lawyer's job. Ringler Radio host, Larry Cohen talks with incoming President of the Massachusetts Bar Association, Attorney Marsha Kazarosian, from Kazarosian Costello and O'Donnell LLP, to discuss the Massachusetts Bar Association's initiatives for 2014, some trends in the legal community and changing the sometimes not-so-good perception of lawyers one person at a time.

Source: http://ringlerradio.com/podcasts/ringler-radio/2014/02/a-look-inside-the-massachusetts-bar-association/

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South Dakota To Drivers: Ignore Those Pesky Iowa Speeding Cameras

Police in Sioux City, Iowa, use photo enforcement to catch traffic violations. An automatic camera takes a photo of a violator's license plate, then police find the registered owner and send out a ticket. South Dakota legislators have passed a law that will not allow their state's Department of Transportation to release vehicle information for this purpose. South Dakota Public Broadcasting's Gary Ellenbolt reports that the bill was co-sponsored by a state senator who has reportedly received several of these tickets. The senator claims that with photo enforcement, there's no right for a defendant to face the accuser, as guaranteed by the Constitution.

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Source: http://www.npr.org/2014/05/28/316728734/south-dakota-to-drivers-ignore-those-pesky-iowa-speeding-cameras?ft=1&f=1070

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All Zimmerman or All Trayvon Martin

Many criminal defense lawyers studiously ignore cases that catch the public's attention. They just aren't that legally interesting, even if the facts or issues give rise to popular passion. And so it's been for the trial of George Zimmerman for murder 2º in the killing of Trayvon Martin.  Aside from John Steele's having raised the question of the ethics of overcharging, there hasn't been a whole lot to write about.

Now that the trial is coming to a close, however, an interesting question, both legal and tactical, has arisen: would it be best for the defense to take an all-or-nothing approach, murder 2º or acquittal, or a split-the-baby approach, charging the jury on the lesser-included crime of manslaughter. 

As Jacob Gershman writes at the Wall Street Journal law blog, the die has been cast.

George Zimmerman was charged with second-degree murder in the shooting death of Trayvon Martin. So why do jurors now have an option of convicting him of manslaughter?

The short answer: the judge said they could.

Yet the option, which was supported by prosecutors but raised the hackles of the defense, is not clearly spelled out in Florida law.

Notwithstanding what either party individually contends, it remains the judge's responsibility to decide whether to submit a lesser-included offense to the jury if one party requests it.  So if the prosecution felt sufficiently secure in its case that it would get a murder conviction, while the defense feared conviction and was looking to find an out, they would be fighting against a manslaughter instruction lest the jury, feeling any sympathy toward the defendant, compromise.  That's not happening here.

While it may be that Zimmerman's claim of self-defense, that he feared his life to be so endangered as to allow him to lawfully kill another person, isn't entirely persuasive, there is strong support for his claim that he was in fear, even if he overreacted.

Florida law works differently. There’s no slicing and dicing of self-defense. The penal code doesn’t recognize “imperfect self defense.” The law forces juries to either believe that someone had a right to act in self-defense or is a murderer.

There is a loophole, however, as illustrated by Mr. Zimmerman’s trial, which entered into closing arguments Thursday.

In Florida, a judge can choose to give juries a middle-of-the-road option, saying it can convict someone of voluntary  manslaughter if it isn’t convinced that the defendant acted out of “ill will, hatred, spite, or evil intent.” Voluntary manslaughter is a catch-all offense that includes a killing caused by “culpable negligence.”


That the prosecution chose to shoot low and hope for a compromise rather than a murder conviction, while the defense went for all-or-nothing and fought the lesser charge, reflects their view of the relative strength of their case. Not surprisingly, the prosecution is showing some serious weakness in its faith that its murder 2 charge will bear out. 

As John Steele argued before trial, there is a strong current of thought that the prosecution followed a political path, appeasing angry voices demanding Justice for Trayvon without giving the facts of the case much thought. It appears that the trial evidence has borne this out to a large extent.

But most damning is the prosecution's second request of Judge Debra Nelson.

Prosecutor Richard Mantei argued that instructions for third-degree murder should be included on the premise that Zimmerman committed child abuse when he fatally shot 17-year-old Trayvon Martin because Martin was underage.

But defense attorney Don West called the proposed instruction "a trick," and he accused the prosecutor of springing it on the defense at the last minute.

"Just when I didn't think this case could get any more bizarre, the state is alleging child abuse?" West said. "This is outrageous. It's outrageous the state would seek to do this at this time."

So a reduced charge of manslaughter still isn't sufficient for the prosecution to reach its comfort zone, and it's digging even deeper for an even lesser charge of murder 3º.  Not only is that damning and humiliating, but as West says, it's "outrageous."  What's next, trespassing because Zimmerman walked on somebody else's lawn?

It appears that while the judge hasn't tossed the murder 2º count as being legally insufficient, which would seem to address the ethical question of the charge being within the very large ballpark of reasonable charges under the facts of the case, neither the judge nor the prosecution has much faith that the jury will convict. The prosecution is now grasping at straws, hoping to get a conviction for anything it can.

For the defense, given the evidence that's come in, this isn't a good thing or particularly fair thing. They tried a case to the charge, and are now faced with the possibility of a compromise verdict from a jury that might feel badly enough at the death of a young man (which is quite understandable, regardless of whether he contributed to it) to feel that Zimmerman ought to be convicted of something

While this isn't the way it's supposed to go in theory, it's a nightmare for the defense, having fought the charge only to face being skewered by a compromise.






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Source: http://blog.simplejustice.us/2013/07/12/all-zimmerman-or-all-trayvon-martin-2.aspx?ref=rss

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ABA TECHSHOW 2014 Wrapup

Tom and Dennis recently attended ABA TECHSHOW 2014, one of the premier annual legal technology conferences. While there, they observed many interesting trends, saw innovative products, and met with numerous industry professionals. On this episode of the Kennedy-Mighell Report, Dennis Kennedy and Tom Mighell discuss TECHSHOW highlights, what interested them most, and their reflections on the current state of legal technology. Tune in to learn more about the How-To sessions, Legal Technology Solutions Lab, and Speakers.
Special thanks to our sponsor, ServeNow.

Source: http://legaltalknetwork.com/podcasts/kennedy-mighell-report/2014/04/aba-techshow-2014-wrapup

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Thursday, May 29, 2014

The Am Law Second Hundred: Punching Above Their Weight

Twenty firms in The Am Law 200 performed well last year, while many others just held their own.

Source: http://www.law.com/jsp/law/sign_me_in.jsp?article=http://www.americanlawyer.com/PubArticleTAL.jsp?id=1202656369578&rss=newswire

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Presentation Tips for Legal Professionals

Hosts Tom Mighell and Dennis Kennedy have done a lot of public speaking at events like ABA TECHSHOW. Over the years, they've developed insights about using new platforms and how to avoid technology-related obstacles. On this episode of the Kennedy-Mighell Report, Dennis and Tom discuss recent presentation lessons, practical tips for novice and veteran presenters, and some thoughts about better ways to do presentations. In the second segment, they address the open source SSL security issues associated with Heartbleed as well as their parting shots, their one tip recommendations for listeners to try.

Source: http://legaltalknetwork.com/podcasts/kennedy-mighell-report/2014/04/presentation-tips-legal-professionals

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Who Represents Corporate America

Our annual survey of the law firms that work for the nation's largest companies takes a global focus.

Source: http://www.nationallawjournal.com/id=1202625300999?rss=rss_nlj

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The Portfolio Management Approach to E-Discovery

For years, there was an unspoken notion that the only way to approach e-discovery was on a case-by-case basis; that every case was unique and similarly required a unique approach to discovery. But the constant cycle of collecting, analyzing, reviewing, and producing data wholly disconnected from other projects has created a lot of inefficiency. On this episode of the ESI Report, host Michele Lange interviews portfolio management experts David J. Kearny and John Winkler about an alternative approach to e-discovery.
David J. Kearney is the Director of Technology Services at Cohen and Grigsby PC, where he advises on technology, legal project management, and ediscovery litigation and support processes. David has years of experience managing technical staff while recommending, implementing, and managing hardware, software and workflow solutions, including e-discovery and project management, and has authored articles on e-discovery management practices, forensics, and other topics.
John Winkler is an Account Executive at Kroll Ontrack. He partners with law firm and corporate clients to provide sound advice and best practices in connection with the management of electronically stored information in litigation and investigation. With over 12 years of experience in legal technologies, John works with clients to effectively reduce the proposed scope of discovery.

Source: http://legaltalknetwork.com/podcasts/esi-report/2014/03/portfolio-management-approach-e-discovery

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NLRB "recess" appointments were unconstitutional; Board lacked a quorum

Noel Canning v. NLRB (DC Cir 01/25/2013)

The DC Circuit this morning held that the President's attempt to make "recess" appointments of three NLRB Members was invalid under the constitution.

On February 8, 2012 the Board issued its decision finding that the employer violated the NLRA by refusing to reduce to writing and execute a collective bargaining agreement reached with Teamsters Local 760. At that time the Board purportedly had five members. Two of these had been confirmed by the Senate. Three of these were appointed on January 4, 2012, purportedly pursuant to the constitution's recess clause.

At the time of the President’s purported recess appointments, the Senate was operating pursuant to a unanimous consent agreement, which provided that the Senate would meet in pro forma sessions every three business days from December 20, 2011, through January 23, 2012. The DC Circuit held that "recess" appointments must occur during an "intersession" recess of the Senate, that is to say, the period between sessions of the Senate when the Senate is by definition not in session and therefore unavailable to receive and act upon nominations from the President.

Because the appointments were invalid, the Board lacked a quorum (three Members) and its order was "void."

Lots of chatter from all over:

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Source: http://www.lawmemo.com/blog/2013/01/nlrb_recess_app_1.html

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In California, Life With Parole Increasingly Leads To Freedom

Until recently, inmates with life sentences — most for murder — were rarely released from prison, regardless of their behavior. But a 2008 court case and a new governor have changed their odds.

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Source: http://www.npr.org/2014/05/26/315259623/in-california-life-with-parole-increasingly-leads-to-freedom?ft=1&f=1070

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Nurse Has Sovereign Immunity 

An Orange County Circuit Court grants a special plea of sovereign immunity to a defendant who provided nursing services at a county nonprofit nursing facility. In the requests for admission, plaintiff admitted Dogwood Village was a nonprofit nursing facility owned by Orange County and overseen by the Health Center Commission of Orange County, and that ...

Source: http://valawyersweekly.com/2014/01/02/nurse-has-sovereign-immunity/

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Woods: More than words in discovery of old letters (Florida Times-Union)

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Does A Consumer’s Exercise of a Rescission Right Mean that the Loan Is Automatically Rescinded? Perhaps Not, According to One Federal Court, If the Consumer Does Not Also File a Lawsuit for Rescission

In Baker v. Bank of America, N.A., No. 5:13-CV-92-F, 2014 U.S. Dist. LEXIS 9578 (E.D.N.C. Jan. 27, 2014), the United States District Court for the Eastern District of North Carolina held that even if a consumer timely exercises his or her right to rescind a loan transaction under the Truth in Lending Act (TILA), 15 U.S.C. § 1601, et. seq.i.e., during the three-day statutory “cooling-off” period — that exercise does not automatically cause the loan to be rescinded.  Rather, the court held, if a consumer’s notice of rescission is met with silence by the lender, the consumer must also file a lawsuit in order to complete the rescission before the statute of limitations expires (in this case, the statute of limitations was determined to be four years).   The Baker case provides a thorough interpretation of the effect of the statutory three-day “cooling-off” period, for which, it was noted in the decision, case law is “exceedingly sparse.”

In Baker, the consumer entered into a refinancing transaction knowing that the terms were less favorable than the consumer had been quoted.  Two days after closing the loan, the consumer mailed a signed rescission notice to the lender. The lender did not respond to the notice and funded the consumer loan.  The lender allegedly refused to rescind the transaction despite multiple requests from the consumer.  The consumer, unable to refinance on more favorable terms, eventually became delinquent on the loan and foreclosing procedures were initiated.  Personal bankruptcy proceedings resulted in a discharge of the personal obligations under the loan but the foreclosure proceedings continued on the basis of the lender’s security interest in the property.

This case arose when the consumer responded to the continued foreclosure proceedings by filing an action for rescission pursuant to the TILA, nearly six years after the original notice of rescission had been sent to the lender.  The defendants moved to dismiss the complaint for failure to state a claim upon which relief can be granted.  The consumer argued that the rescission automatically voided the security interest pursuant to Section 1635(b) of the TILA, which provides that “when an obligor exercises his right to rescind . . . he is not liable for any finance or other charge and any security interest given by the obligor . . . becomes void upon such a rescission” (emphasis added).  The consumer argued that this sentence provided for an automatic right of rescission that voided the transaction so long as the consumer sent notice of rescission within the three day statutory period.

The court disagreed.  Instead, the Court distinguished between the “exercise” of the right of rescission and “full rescission.”  The exercise of the right to rescind is accomplished by the giving of notice, whereas the full rescission is defined by a “full unwinding of the transaction and a return to the status quo.”  Because the security interest becomes void only upon rescission, the lender maintained a security interest that could be foreclosed upon until such time as the transaction was fully rescinded.

In reaching its conclusion, the Court declined to follow unpublished decisions from the United States Court of Appeals for the Ninth Circuit (which includes California) and the United States District Court for the Eastern District of Pennsylvania (within the Third Circuit), which had previously held that the notification made pursuant to the TILA automatically voided a security interest.  Rather, the Baker court held, where, as here, a lender fails to respond to a consumer’s exercise of his or her right to rescission within the three day statutory period, the consumer “must file a lawsuit to complete the rescission process in cases where the lender fails to respond to the notice or otherwise fails to recognize the borrower’s rescission rights.”

It is worth noting here that the Supreme Court granted certiorari on April 28, 2014 to a case which hinges on the question of whether or not the TILA right of rescission for the lender’s failure to furnish required disclosures must be invoked by filing a lawsuit or whether such rescission is automatic upon notice made within the three-year statutory period.  See Jesinoski v. Countrywide Home Loans, Inc., 729 F.3d 1092 (8th Cir. 2013) (per curiam), cert. granted, No. 13-684 (U.S. Apr. 24, 2014).

The Baker court also disagreed with the consumer that lawsuits seeking rescission pursuant to the TILA have an unlimited limitations period.  The court held that such a limitations period would cloud title to property to such an extent that Congress could not have intended that the right of rescission have an unlimited limitations period.  However, the court did not wade too deeply into the debate regarding which statute of limitations was appropriate.  Here, the right of rescission — that is, the right to sue for rescission — arose at the very latest when the lender failed to respond to the notice of rescission within the twenty day statutory period.  The suit in Baker was filed nearly six years later and therefore must have been untimely.  Although the court discussed the conflicting decisions of a number of other courts that placed the statute of limitations at the one-year and three-year mark, the court in Baker ultimately concluded that the relevant statute of limitation is “at most four years” and continues its analysis no further.

Given the uncertainties in the statute of limitations noted by the court, which identified decisions concluding the statute of limitations in these cases is as short as one-year, three-years or “at most four years,” the fate of individual rescission claims will remain varied.  In addition, a consumer may be required to assert a claim for rescission in order to effect the full rescission desired, but a lender that fails to take “any action necessary or appropriate to reflect the termination of any security interest” within twenty days after receiving notice of rescission remains liable for civil penalties.  Although such civil penalties are subject to a one-year statute of limitations, the TILA does provide for attorney’s fees in cases where the lender violates the TILA by failing to respond to a timely notice of rescission.  Thus a lender would still be wise to consider the risks and costs of litigation, civil penalties and attorney’s fees before ignoring a notice for rescission.

Source: http://www.corporatesecuritieslawblog.com/2014/05/does-a-consumers-exercise-of-a-rescission-right-mean-that-the-loan-is-automatically-rescinded-perhaps-not-according-to-one-federal-court-if-the-consumer-does-not-also-file-a-lawsuit-for-re/

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Wednesday, May 28, 2014

Washington's sexual orientation discrimination amendment is not retroactive

The Washington State Supreme Court held today that a sexual orientation discrimination amendment adopted in 2006 is not retroactive.

The court also concluded that conduct that took place prior to the amendment is admissible background evidence to prove the discriminatory nature of certain conduct occurring after the amendment.

Loeffelholz v. Univ of Washington (Washington 09/13/2012)

Loeffelholz sued under the Washington Law Against Discrimination (WLAD) claiming discrimination based on sexual orientation. WLAD was amended in 2006 to include sexual orientation as a protected class, and Loeffelholz alleged several pre-amendment acts and one post-amendment act.

The Washington Supreme Court held that (1) the WLAD amendment is not retroactive and the pre-amendment conduct is not actionable as it was not unlawful when it occurred, and (2) the post-amendment allegedly discriminatory comment is arguably similar enough to the pre-amendment conduct to survive summary judgment.

Loeffelholz alleged that her supervisor between 2003 and June 2006 maintained a hostile work environment based on sexual orientation. This was prior to the WLAD amendment. Loeffelholz also alleged a single act of discrimination by this supervisor after the WLAD amendment.

The court's findings:

(1) Pre-amendment conduct is not actionable. Retroactive application of the amendment would violate the employer's due process rights. The plain language of the amendment and its legislative history indicate only prospective application.

(2) Pre-amendment conduct is admissible as background evidence to prove why the post-amendment conduct is discriminatory.

(3) The post-amendment conduct was a single statement by Loeffelholz's supervisor, who was about to be deployed to Iraq, that he was "going to come back a very angry man." The court found that a reasonable jury could infer that this comment was a natural extension of pre-amendment conduct - the supervisor's dislike of lesbians and his anger management problems as illustrated by his comments that he had a volatile temper and kept a gun. This is enough to preclude summary judgment.

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Source: http://www.lawmemo.com/blog/2012/09/washingtons_sex.html

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Comity Prompts Court’s Deferral 

A Richmond Circuit Court denies plaintiff’s motion to add party defendants, and says these proposed defendants are the same ones named as defendants in a companion case pending before another judge of this court and it appears plaintiff is seeking an end run around an adverse ruling by another court. Since the issue of whether ...

Source: http://valawyersweekly.com/2014/01/02/comity-prompts-courts-deferral/

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Anti-Bush Protesters Lose Free-Speech Case

The Supreme Court ruled Tuesday that protesters of former President George W. Bush can’t proceed with a long-running lawsuit claiming Secret Service agents treated them differently than pro-Bush demonstrators during a 2004 campaign stop.

Source: http://blogs.wsj.com/law/2014/05/27/anti-bush-protesters-lose-free-speech-case/?mod=WSJBlog

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Congo militia leader sentenced to 12 years for war crimes

[JURIST] The International Criminal Court (ICC) [official website] on Friday sentenced [press release] Congolese militia leader Germain Katanga [case materials; JURIST news archive] to 12 years in prison for war crimes. Katanga, the alleged commander of the Patriotic Resistance Forces in Ituri, an armed militia group from the Ituri region of the Democratic Republic of the Congo (DRC), was convicted [JURIST report] in March on four counts of war crimes and one count of crimes against humanity. Katanga's guilty verdict...

Source: http://jurist.org/paperchase/2014/05/congo-militia-leader-sentenced-to-12-years-for-war-crimes.php

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No district court jurisdiction for federal employee challenging adverse employment action (6-3)

The US Supreme Court held this morning that the Civil Service Reform Act (CSRA) precludes district court jurisdiction over Elgin's claim that his removal from federal service was based on an unconstitutional statute. The procedural route prescribed by the CSRA is by appeal to the Merit Systems Protection Board (MSPB) and, if dissatisfied with the result, appeal to the Federal Circuit, whose decisions in turn are reviewable by the Supreme Court.

Elgin v. Dept of Treasury (US Supreme Ct 06/11/2012)

A federal statute bars employment in the executive branch of male citizens who failed to register for the draft. Elgin, who had been discharged from his job, first challenged the decision before the MSPB - arguing that the statutory bar was unconstitutional - but an ALJ dismissed his case on the ground that the MSPB lacked authority to review the constitutionality of a federal statute. Rather than appealing from that decision, Elgin sued in federal district court.

The US Supreme Court held that the district court lacked jurisdiction because it is "fairly discernable" from the CSRA's text, structure, and purpose that Congress precluded district court jurisdiction over Elgin's claims. Based on CSRA's text and structure, there is no exception for constitutional challenges to federal statutes. If the MSPB lacks power to hear such claims, they can be meaningfully addressed by the Federal Circuit.

The DISSENT argued that Elgin's "constitutional claims are a far cry from the type of claim that Congress intended to channel through the [MSPB]."

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Source: http://www.lawmemo.com/blog/2012/06/no_district_cou.html

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US House approves bill to limit NSA data collection

[JURIST] The US House of Representatives [official website] voted 303-121 [roll call] Thursday to approve a bill that would curb the powers of the National Security Agency (NSA) [official website] to collect phone records. The USA Freedom Act [HR 3361 materials] would end the bulk collection of phone records and instead require the NSA to query phone companies about individual suspicious phone numbers. Supporters have called the bill an important step in protecting Americans' privacy, but some have argued that...

Source: http://jurist.org/paperchase/2014/05/us-house-approves-bill-to-limit-nsa-data-collection.php

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Managing Overflow Work with Freelance Attorneys

When overwhelmed with work, some firms hire freelance attorneys to fill the gap between client demand and firm capacity. Whether it's niche expertise, transactional labor, or long-term temp. assignments, these contract attorneys are well-equipped to support the unique interests of their hiring firms. On this episode of Legal Toolkit, host Jared Correia interviews talent placement experts Leila Kanani from Intermix Legal Group and Gil Schipani from Tempus Fugit Law to learn more about the benefits of freelance attorney placement. Kanani discusses how firms who hire freelance attorneys benefit from improved workflow and enhanced expertise without the need to hire a permanent associate. Tune in to learn more.
Leila Kanani is an IP solo attorney and founder of Intermix Legal. After over 10 years of practice in BigLaw, she left for more control and balance in her life. Her objective in creating Intermix was to provide a flexible framework for experienced attorneys to participate in project-based contract legal services for solos and small firms.
Gil Schipani is the founder of Tempus Fugit Law, which specializes in substitute counsel/court coverage for lawyers as well as single transaction services. He is currently a partner with Schipani and Sinay and former Assistant City Solicitor of Brockton, Massachusetts. His practice area focuses on real estate, personal injury, business, and employment law.

Source: http://legaltalknetwork.com/podcasts/legal-toolkit/2014/03/managing-overflow-work-freelance-attorneys

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It's Geithner Vs. Warren In Battle Of The Bailout

Former Treasury Secretary Tim Geithner says the 2008 bank bailout worked well. Sen. Elizabeth Warren says it taught bankers to be reckless because the risks are on taxpayers. Vote for who is right.

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Source: http://www.npr.org/2014/05/25/315276441/its-geithner-vs-warren-in-battle-of-the-bailout?ft=1&f=1070

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Firm Admits Signing Ex-Associate's Name on Complaint

The Philadelphia firm of Richman Berenbaum & Associates has admitted that it signed the complaint in Newbill v. Walgreen in the name of former associate Justin Cohen.

Source: http://www.law.com/jsp/law/sign_me_in.jsp?article=http://www.law.com/jsp/nj/PubArticleNJ.jsp?id=1202656904885&rss=newswire

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Gideon’s Promise: Do Low Pay and Heavy Workloads Undermine the Right to Counsel?

In its landmark 1963 decision Gideon v. Wainwright, the Supreme Court mandated the right to counsel in federal and state criminal proceedings. Fifty-one years after that unanimous decision, some question whether Gideon's promise has been fulfilled, as public defenders struggle against heavy caseloads, limited resources and low pay. On this episode of Lawyer2Lawyer, hosts Bob Ambrogi and J. Craig Williams interview Jonathan Rapping, founder of the Atlanta-based public defender training program Gideon's Promise, and Dawn Porter, director and producer of the documentary Gideon's Army. Together they discuss the daily rigors faced by public defenders in the south, their personal beliefs about unequal access to justice, and their ideas about how to better deliver on the promise of Gideon.
Jonathan Rapping is the president and founder of Gideon's Promise, a training and support group for public defenders in the south aimed at creating greater access to justice for indigent defendants. He is also the director of the Honors Program in Criminal Justice at Atlanta's John Marshall Law School, where he teaches criminal law and criminal procedure. Rapping is the former director of public defender training programs in the District of Columbia, Georgia, and Louisiana. He is the recipient of the Lincoln Leadership Award from Kentucky's Department of Public Advocacy, the Sentencing Project Award from the National Association of Sentencing Advocates and Mitigation Specialists, and the Gideon's Promise Award from the Southern Center for Human Rights.
Dawn Porter is a lawyer and the founder of Trilogy Films. She was the director and producer of the award-winning Gideon's Army, a documentary about public defenders associated with Gideon's Promise, which premiered at the 2013 Sundance Film Festival and aired on HBO Documentary Films. Prior to beginning her film and television career, Porter worked as an attorney at Baker and Hostetler and ABC Television Network. Among her many projects, she directed "Spies of Mississippi," a documentary on PBS about celebrity Chef Alexandra Guarnaschelli; produced "Serious Moonlight" starring Meg Ryan and Timothy Hutton; and produced "The Green," an independent feature starring Cheyenne Jackson (from 30 Rock) and Emmy-winning actress Julia Ormond.
Special thanks to our sponsor, Clio.

Source: http://legaltalknetwork.com/podcasts/lawyer-2-lawyer/2014/04/gideons-promise-low-pay-heavy-workloads-undermine-right-counsel

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Tuesday, May 27, 2014

Ethical Perils of Social Media for Lawyers and Judges

Of the 46% of judges using social media, 80% are on Facebook and over 30% are on LinkedIn, but activity on social media presents a number of ethical dilemmas for judges, attorneys, jurors, and litigants. In a recent case in Georgia, a judge stepped down after being scrutinized for sending a friend request to a litigant on his upcoming trial calendar and later releasing her on a personal recognizance bond. Similar activities from other judges and attorneys have resulted in violations of both the Code of Professional Conduct and the Code of Judicial Conduct, from unauthorized practice of law across state lines and breaching attorney-client privilege to posting inappropriate comments and sending friend requests to litigants and related attorneys. These ethical perils extend to jurors, who must be reminded of their own limitations in social media use with regard to pending trials. On this episode of The Digital Edge, hosts Sharon Nelson and Jim Calloway interview Judge Herbert B. Dixon, Jr., discussing stories of collateral damage associated with inappropriate social media use and ways legal professionals can avoid ethical missteps. Stay tuned at the end for Judge Dixon's 4 Questions to Ask Yourself Before Posting on Social Media.
Judge Herbert B. Dixon, Jr. sits on the Superior Court of the District of Columbia and is a former chair of the National Conference of State Trial Judges. He is the technology columnist for The Judges' Journal magazine and a former member of the ABA Techshow Planning Board. Judge Dixon is Senior Judicial Advisor to William and Mary Law School's Courtroom 21 Project, the Presiding Judge for the Superior Court's Technology-Enhanced Courtroom Project, and a frequent speaker on topics related to the intersection of law and technology.

Source: http://legaltalknetwork.com/podcasts/digital-edge/2014/03/ethical-perils-social-media-lawyers-judges

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Sleeping, Or Passed Out? You Make The Call.

Subway Station in Munich

Was this gent sleeping or passed out? You make the call. As reported in The Brooklyn Paper’s Police Blotter for the 88th Precinct (Fort Greene–Clinton Hill):

The 46-year-old said he boarded the Brooklyn-bound train at Grand Central Station at 5 am. He told cops he was intoxicated and fell asleep shortly after boarding, and when he woke up the train had reached the end of the line at New Lots Avenue and turned around, according to a police report.

As he exited the train at Nevins Street, he discovered that his rear pocket had been cut and his wallet removed, the report says. The guy was out $350 cash, plus debit and credit cards, he said.

So, he was only awakened when the train got to the end of the line. And the thief was able to cut his pants and take his wallet unnoticed. The Juice is going with “passed out.”

 

Source: http://rss.justia.com/~r/LegalJuiceCom/~3/y6lo9XaRGg8/asdf-25.html

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BP to appeal oil spill ruling to Supreme Court

[JURIST] British Petroleum (BP) [corporate website] announced [press release] Wednesday that it will appeal a recent US Court of Appeals for the Fifth Circuit decision to the US Supreme Court [official websites]. The March decision [JURIST report] by the Fifth Circuit rejected BP's claim that payments to alleged oil spill victims claiming economic losses should be excluded because the damages were not traceable to the spill. The extensive regional economic fallout [JURIST backgrounder] along the Gulf of Mexico states has...

Source: http://jurist.org/paperchase/2014/05/bp-to-appeal-oil-spill-ruling-to-supreme-court.php

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Who Represents Corporate America

Our annual survey of the law firms that work for the nation's largest companies takes a global focus.

Source: http://www.nationallawjournal.com/id=1202625300999?rss=rss_nlj

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Parents Of Elliot Rodger Heard Of Attack As They Tried To Stop Him

The 22-year-old's parents were rushing to stop him from hurting anyone Friday night when they heard news of a shooting and feared their son was involved.

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Source: http://www.npr.org/blogs/thetwo-way/2014/05/26/316092467/parents-of-elliot-rodger-heard-of-attack-as-they-tried-to-stop-him?ft=1&f=1070

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Legal Ethics and Cybersecurity

Since 2009, the FBI has warned that law firms have cybersecurity problems with potentially far-reaching consequences. Changes to ethical rules, as a result of the American Bar Association's Ethics 20/20 effort, have clarified that keeping up with technology is a component of attorney competence. Where do ethics rules and cybersecurity measures intersect? In this episode of The Kennedy-Mighell Report, Dennis Kennedy and Tom Mighell discuss cybersecurity in the context of legal ethics, how ethical rules place demands on lawyers to take security measures, and practical approaches to the vital issue of cybersecurity.

Source: http://legaltalknetwork.com/podcasts/kennedy-mighell-report/2014/03/legal-ethics-cybersecurity

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States Revise Laws to Curb ‘Trolls’; Citizens United Sues Over Donor Info

The AM Roundup: Law Blog rounds up the morning's news.

Source: http://blogs.wsj.com/law/2014/05/22/states-revise-laws-to-curb-trolls-citizens-united-sues-over-donor-info/?mod=WSJBlog

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Federal Appeals court rejects challenges to broadband internet expansion

[JURIST] The US Court of Appeals for the Tenth Circuit rejected [ruling, PDF] on Friday challenges to the Federal Communications Commission's (FCC) [official website] plan to expand broadband Internet service to rural areas. The FCC's plan is a $4.5 billion program which subsidizes high-speed Internet services in high-cost rural areas. The challengers of the FCC plan included many phone companies such AT&T and Verizon Wireless. It has been reported [New York Times report] that the phone companies fear that the...

Source: http://jurist.org/paperchase/2014/05/federal-appeals-court-rejects-challenges-to-broadband-internet-expansion.php

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Monday, May 26, 2014

Does A Consumer’s Exercise of a Rescission Right Mean that the Loan Is Automatically Rescinded? Perhaps Not, According to One Federal Court, If the Consumer Does Not Also File a Lawsuit for Rescission

In Baker v. Bank of America, N.A., No. 5:13-CV-92-F, 2014 U.S. Dist. LEXIS 9578 (E.D.N.C. Jan. 27, 2014), the United States District Court for the Eastern District of North Carolina held that even if a consumer timely exercises his or her right to rescind a loan transaction under the Truth in Lending Act (TILA), 15 U.S.C. § 1601, et. seq.i.e., during the three-day statutory “cooling-off” period — that exercise does not automatically cause the loan to be rescinded.  Rather, the court held, if a consumer’s notice of rescission is met with silence by the lender, the consumer must also file a lawsuit in order to complete the rescission before the statute of limitations expires (in this case, the statute of limitations was determined to be four years).   The Baker case provides a thorough interpretation of the effect of the statutory three-day “cooling-off” period, for which, it was noted in the decision, case law is “exceedingly sparse.”

In Baker, the consumer entered into a refinancing transaction knowing that the terms were less favorable than the consumer had been quoted.  Two days after closing the loan, the consumer mailed a signed rescission notice to the lender. The lender did not respond to the notice and funded the consumer loan.  The lender allegedly refused to rescind the transaction despite multiple requests from the consumer.  The consumer, unable to refinance on more favorable terms, eventually became delinquent on the loan and foreclosing procedures were initiated.  Personal bankruptcy proceedings resulted in a discharge of the personal obligations under the loan but the foreclosure proceedings continued on the basis of the lender’s security interest in the property.

This case arose when the consumer responded to the continued foreclosure proceedings by filing an action for rescission pursuant to the TILA, nearly six years after the original notice of rescission had been sent to the lender.  The defendants moved to dismiss the complaint for failure to state a claim upon which relief can be granted.  The consumer argued that the rescission automatically voided the security interest pursuant to Section 1635(b) of the TILA, which provides that “when an obligor exercises his right to rescind . . . he is not liable for any finance or other charge and any security interest given by the obligor . . . becomes void upon such a rescission” (emphasis added).  The consumer argued that this sentence provided for an automatic right of rescission that voided the transaction so long as the consumer sent notice of rescission within the three day statutory period.

The court disagreed.  Instead, the Court distinguished between the “exercise” of the right of rescission and “full rescission.”  The exercise of the right to rescind is accomplished by the giving of notice, whereas the full rescission is defined by a “full unwinding of the transaction and a return to the status quo.”  Because the security interest becomes void only upon rescission, the lender maintained a security interest that could be foreclosed upon until such time as the transaction was fully rescinded.

In reaching its conclusion, the Court declined to follow unpublished decisions from the United States Court of Appeals for the Ninth Circuit (which includes California) and the United States District Court for the Eastern District of Pennsylvania (within the Third Circuit), which had previously held that the notification made pursuant to the TILA automatically voided a security interest.  Rather, the Baker court held, where, as here, a lender fails to respond to a consumer’s exercise of his or her right to rescission within the three day statutory period, the consumer “must file a lawsuit to complete the rescission process in cases where the lender fails to respond to the notice or otherwise fails to recognize the borrower’s rescission rights.”

It is worth noting here that the Supreme Court granted certiorari on April 28, 2014 to a case which hinges on the question of whether or not the TILA right of rescission for the lender’s failure to furnish required disclosures must be invoked by filing a lawsuit or whether such rescission is automatic upon notice made within the three-year statutory period.  See Jesinoski v. Countrywide Home Loans, Inc., 729 F.3d 1092 (8th Cir. 2013) (per curiam), cert. granted, No. 13-684 (U.S. Apr. 24, 2014).

The Baker court also disagreed with the consumer that lawsuits seeking rescission pursuant to the TILA have an unlimited limitations period.  The court held that such a limitations period would cloud title to property to such an extent that Congress could not have intended that the right of rescission have an unlimited limitations period.  However, the court did not wade too deeply into the debate regarding which statute of limitations was appropriate.  Here, the right of rescission — that is, the right to sue for rescission — arose at the very latest when the lender failed to respond to the notice of rescission within the twenty day statutory period.  The suit in Baker was filed nearly six years later and therefore must have been untimely.  Although the court discussed the conflicting decisions of a number of other courts that placed the statute of limitations at the one-year and three-year mark, the court in Baker ultimately concluded that the relevant statute of limitation is “at most four years” and continues its analysis no further.

Given the uncertainties in the statute of limitations noted by the court, which identified decisions concluding the statute of limitations in these cases is as short as one-year, three-years or “at most four years,” the fate of individual rescission claims will remain varied.  In addition, a consumer may be required to assert a claim for rescission in order to effect the full rescission desired, but a lender that fails to take “any action necessary or appropriate to reflect the termination of any security interest” within twenty days after receiving notice of rescission remains liable for civil penalties.  Although such civil penalties are subject to a one-year statute of limitations, the TILA does provide for attorney’s fees in cases where the lender violates the TILA by failing to respond to a timely notice of rescission.  Thus a lender would still be wise to consider the risks and costs of litigation, civil penalties and attorney’s fees before ignoring a notice for rescission.

Source: http://www.corporatesecuritieslawblog.com/2014/05/does-a-consumers-exercise-of-a-rescission-right-mean-that-the-loan-is-automatically-rescinded-perhaps-not-according-to-one-federal-court-if-the-consumer-does-not-also-file-a-lawsuit-for-re/

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