Legal Radar

Judge: Texas Not Properly Financing Public Schools

Just recently, a state judge made a ruling saying that Texas is still not properly funding public schools, after legislators in 2013 restored over $3 billion in spending cuts.

John Dietz, an Austin state judge and a Democrat, said the Texas Legislature didn’t do a good job in meeting their constitutional duty to provide for public schools in the state.

Over 600 Texas school districts filed a legal complaint in 2011 after the state slashed over $5 billion from educational budget, indicating financial pressure.

Dietz sided with the Texas schools in 2013, ruling that the state wasn’t adequately spending enough to meet its responsibility to offer “diffusion of knowledge.” After the ruling, Texas legislators pushed funding to public schools by 3.5 billion more.

But the same Texas schools made its return to court, saying the increase is still not enough to cater to the demands of educating children within the state, which is currently home to over 26 million Texans. Just recently, Dietz agreed that the school finance structure still remains unsatisfactory.

Bank of America Settlement Comes with $30M Legal Aid

Bank of America’s $16.65 billion deal in the previous week has been a profitable one for law firms suggesting the financial institution on government allegations that it sold false mortgage securities until the 2008 financial crisis.

In the meantime, the deal also adds a boon for a program offering civil legal services to the poor via interest from trust accounts of attorneys.

The $30 million out of the $7 billion marked for client legal aid will go directly to the Interest on Lawyers Trust Program (IOLTA).

The programs gathers interest from the generated client funds made by lawyers from each state. The proceeds will go to every state’s civil legal firms.

IOLTA has been struggling since 2008 due to low interest rates, making it hard to gain from the deposits. The IOLTA program in each state will now get $200,000 and the remaining $30 million will be evenly handed out in every state in accordance to the number of people living in poverty.

Perry’s Attorneys Making a Move to Dismiss Indictment

Attorneys for Governor Rick Perry made a move to shoot down felony charges made against him early this week, saying that prosecuting him on abuse of power claims is unconditional.

In a multi-page brief, attorneys of the governor said the charges inappropriately tainted his authority to veto funds.

A jury indicted Perry early this month on two counts of felony for allegedly making threats to veto $7.5 million of funding on the Travis County Public Integrity Unit, which deals with corruption in political probes in Texas, if Rosemary Lehmberg, the firm’s attorney, failed to step down after a drunken driving arrest.

Lehmberg didn’t quit and Perry to deployed a veto in June 2013.

Perry is facing felony counts on public servant coercion and official abuse. The initial charge will carry a full punishment of 99 years in prison while the second could up to 10 years. He pleaded not guilty.

A 2016 presidential candidate, Perry has been outspoken saying his case stemmed from political motivation.

Investor Claims Denied by Judge on Accounts Connected to Madoff

A number of people whose employers made an investment in their retirement funds with Bernard Madoff won’t be able to recover liquidated money from Madoff’s firm. The reason was because they weren’t direct customers from the now-imprisoned scheme operator, according to a bankruptcy judge ruling.

The recent ruling made by Judge Stuart Bernstein of the U.S. Bankruptcy Court in Manhattan is the latest number of ruling blocking claims proposed by investors in feeder funds or retirements invested by Madoff.

Based on the ruling, Bernstein agreed with Irving Picard, a court-appointed trustee winding down of Madoff’s investment firm, saying that claims should be denied since individuals couldn’t provide evidence they’ve placed money directly to the firm.

Only a couple people who purchased claims replied to a court request asking more information on why they’re deemed as customers of Madoff.

$17.3 billion of estimated principal was missing in Madoff’s Ponzi scheme, which was exposed a few years ago.

SC Halts Beginning of Same Sex Marriage in Virginia

Just recently, the Supreme Court temporarily halted the beginning of gay marriages in Virginia, a move many expected in the lead up to the consideration of the justices on the constitutional matter.

The court gave a grant to delay in an order after a North Virginia county government made a request of temporary stay after a July ruling made by the 4^th U.S. Circuit of Appeals, bringing down the state’s ban on gay marriages. Officials from the state were support to begin wedding ceremonies sometime this week.

The holding of the appeals court is being appealed to the SC, which will make a decision this fall as to whether or not the appeals should be heard regarding the ban of gay marriage. A case on Utah’s ban is also making its way to the high court.

Mark Herring, an attorney general in Virginia, refused to defend the ban, agreeing with same sex couples of it violating the equal protection rights of the constitution.  

Judge Goes Against Anna Nicole Smith in Inheritance Battle

An attempt that took years from the estate of deceased and ex-Playboy model Anna Nicole Smith to take in tens of millions of dollars from her deceased husband’s family came to an end in federal court earlier this week.

David Carter, a U.S. District Court Judge in Santa Ana, California, recently turned down $44 million in sanctions against her deceased husband’s family, basically putting a stop to a litigation that has made its way through the bankruptcy court, court of appeals, district court, and the Supreme Court.

The judge also had the chance to make an opinion on the fact that a majority of the parties in the lengthy battle are now deceased.

Carter’s decision indicated that the legal battle lasted several time longer of the relationship between Smith and her husband, and more than 20 times their marriage years.

The bankruptcy court looking into Smith’s bankruptcy ruled she should’ve been the next person to receive over $470 million for her deceased husband, a decision Carter, who took the appeal case, reduced to $89 million.

Win for Google and Allies Stomps Causes Vringo Shares to Plummet

Live and die by the patent. That’s typically the fate of today’s intellectual property firms, with Vringo feeling the sting.

The NY-based firm has 500-plus patents and applications that covers internet search, handheld technologies, and telecom structure. Vringo profits by licensing patents to other firms or bringing them to court if they can’t get along.

Vringo filed a suit against Google and other companies, claiming they’ve infringed on patents coverings methods of filtering search results of the internet to making them relevant. While a jury agreed, the U.S. of Appeals for the Federal Circuit overturned the decision.

Shares of Vringo plummeted to 88 cents last week, bringing the firm’s market value under $100 million.

Attorneys from Google argued in I/P Engine’s invention case was obvious since it mixed information-filter methods that were already popular. The court of appeals agreed.

The win may be small but it’s a welcome boost for Google and other firms looking to restrict powers of patent-enforcing companies by making patent reform laws.

PricewaterhouseCoopers LLP Asked to Make $25M Fine Payment

A unit from PricewaterhouseCoopers LLP (PwC) will be paying $25 million and be immediately suspended from some consultation work for a couple years to sort out claims that the company made report alterations on a Japan-based bank’s anti-money-laundering law compliance.

Regular advisory services unit from PwC will be suspended from several new consultations of NY-regulated banks. The firm also made an agreement to deploy a number of changes to its processes to address conflicts of interest, reports the state financial regulator.

The regulator claims that PwC, who have been pressured by executives from the bank, watered down a report in 2008 to regulators regarding wire transfers that the Bank of Tokyo-Mitsubishi transacted on behalf of Iran and other nations subjected to U.S. economic sanctions. It’s been reported by the New York Times and The Wall Street Journal that a settlement has been reached early this week.

PwC indicated in the settlement that their work for the Bank of Tokyo-Mitsubishi never enacted objectivity and autonomy needed as required by the consultants, who work for NY-regulated banks.

Whitey Bulger Now Filing for Appeal

James “Whitey” Bulger, a gangster convict, recently filed a federal court appeal saying he didn’t receive a fair trial since he wasn’t able to claim the immunity promised from the now-deceased prosecutor.

The senior ex-crime boss was sentenced last year on federal racketeering charges that also involved nearly a dozen murders. He’s currently serving two life terms in an Arizona federal prison.

His seven-week-long trial gripped the city of Boston while revealing tales of fatal killngs and mob movement going multiple decades back. Some testimony made against Bulger stemmed from murderers who made a deal with prosecutors. The trial made a recount on how Bulger and his associates were under protection of several crooked law enforcement agents.

But Bulger didn’t want to testify. Instead, he labelled the trial as a sham since the judge ruled he couldn’t utilize his immunity defense.

A spokesperson from the Attorney’s office in Boston, which prosecuted Bulger, indicated they’re reviewing the filing and will make a response via the court.

Unrest in Ferguson Puts Spotlights on Protesters Rights

Clashes between law enforcement officers and protestors in Ferguson, Missouri, are in the spotlight regarding protester rights and crowd control by the police.

Anger over the shooting of Michael Brown, has prompted protests combined with looting and vandalism, as police officers in riot gear threw tear gas to scatter the crowd.

Missouri’s Governor, Jay Nixon, said he has plans for operation shifts in dealing with the Ferguson situation.

Courts have taken the view of the First Amendment rights to free speech and assembly to offer protection to protestors taking part in peaceful protests.

Courts respect the on-street action by police. If a protest ends up being violent, officers can respond with proper violence. In certain instances, officers may have the power to utilize deadly force.

Based on the Missouri law, the use of deadly force can be justified if an officer has reasons to believe it’s necessary to make an arrest or prevent an individual from committing a felony, utilizing a harmful weapon, or inflicting serious injury.