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Supreme Court to hear another arbitration argument
Topics in Legal News | 2011/05/02 09:09
The Supreme Court will consider a plea from companies that cater to people with bad credit to keep disputes with their customers out of court and in the more business-friendly forum of arbitration.

Days after handing businesses a huge victory by limiting class action claims against them, the court said Monday it will take up a new arbitration dispute in the fall.

The new case involves consumer complaints about companies that issue low-rate credit cards to people with bad credit ratings. The consumers said they were promised an initial $300 in available credit, but were charged $257 in fees in the first year they had the credit card.

The consumers sued in federal court, but the companies say the dispute must be handled by an arbitrator, under an agreement the customers signed to receive the card.

The federal Credit Repair Organizations Act, signed by President Bill Clinton in 1996, says consumers have a right to sue, which the federal appeals court in San Francisco interpreted as a right to go into court, rather than be forced to submit to arbitration. Appeals courts in Atlanta and Philadelphia have ruled otherwise in evaluating the same language in the law.



Bachmann uses Holocaust to illustrate tax point
Court Watch | 2011/05/02 09:09
Minnesota Rep. Michele Bachmann on Saturday described the loss of "economic liberty" that young Americans face today as a "flash point of history" in which the younger generation will ask what their elders did to stop it.

In a speech to New Hampshire Republicans, Bachmann recounted learning about a horrific time in history as a child — the Holocaust — and wondering if her mother did anything to stop it. She said she was shocked to hear that many Americans weren't aware that millions of Jews had died until after World War II ended.

Bachmann said the next generation will ask similar questions about what their elders did to prevent them from facing a huge tax burden.

"I tell you this story because I think in our day and time, there is no analogy to that horrific action," she said, referring to the Holocaust. "But only to say, we are seeing eclipsed in front of our eyes a similar death and a similar taking away. It is this disenfranchisement that I think we have to answer to."


Court sides with Wyoming in dispute with Montana
Court Watch | 2011/05/02 09:09
The Supreme Court says Wyoming is not taking too much water from a river system it shares with Montana.

The high court on Monday turned away Montana's complaint that Wyoming is taking too much water from the Tongue and Powder rivers in violation of a 1950 agreement between the states.

Montana claimed that more efficient irrigation in Wyoming is preventing runoff from rejoining the river and flowing downstream.

Justice Clarence Thomas wrote the 7-1 decision, which says more efficient irrigation is permissible to the detriment of downstream users. Justice Antonin Scalia was the only dissenting vote.

Justice Elena Kagan did not participate in the case because she worked on it while in the solicitor general's office.



Polygamous church dispute may head to Utah court
Legal Business | 2011/05/02 09:08
An internal tug-of-war over control of jailed polygamous sect leader Warren Jeffs' southern Utah-based church may force Utah courts to walk a constitutional tightrope that experts say could tread a little too close to separation of church and state.

The presidency of the 10,000-member Fundamentalist Church of Jesus Christ of Latter Day Saints has been in question since March 28, when church bishop William E. Jessop filed papers with the Utah Department of Commerce seeking to unseat Jeffs as president of the church corporation. Under state law, the move automatically put Jessop in power.

That set into motion a flurry of filings from Jeffs loyalists removing Jessop and claiming that some 4,000 church members have pledged their loyalty to their incarcerated leader.

Monday marks the deadline set by commerce officials for both parties to resolve the dispute or a legal showdown might be set in motion since, if no agreement is reached, the state says power will revert back to Jeffs.


Firm hired by GOP ends work on gay marriage ban
Topics in Legal News | 2011/05/01 09:09
A prominent law firm hired by Republican lawmakers to defend the federal ban on gay marriage said Monday it was withdrawing from the case amid criticism by advocacy groups, prompting the partner leading the work to quit.

The move by Atlanta-based King & Spalding is the latest flashpoint in the public debate over gay rights. Chairman Robert Hays Jr. said the firm chose to divorce itself from the controversy after determining that the decision to take the case wasn't vetted properly, but gay rights groups had also been pressuring the 800-lawyer company with plans for a protest Tuesday in Atlanta and with calls to its other clients. The groups cheered the move.

The decision, however, was sharply criticized by conservative groups, legal observers and the partner who had been handling the case, a former high-ranking Justice Department official under President George W. Bush. Washington-based attorney Paul Clement said he's moving to another law office so he can continue the work.

Clement had been retained by House Republican leaders after President Barack Obama ordered the Justice Department in February to stop defending the Defense of Marriage Act. His administration said it believes the 1996 law, which defines marriage as only between a man and a woman, was unconstitutional.




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