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Pa.'s rhyming justice pens insurance fraud opinion
Industry News | 2011/12/21 11:05
A state Supreme Court justice known for opinions written in rhyme has done it again, producing six pages of verse Thursday in the case of whether the maker of a forged check also had committed insurance fraud.

Justice J. Michael Eakin, writing for a 4-2 majority, concluded in six-line stanzas that a man's attempt to deposit a forged check appearing to be from State Farm didn't constitute insurance fraud.

Sentenced on the other crimes, he surely won't go free, but we find he can't be guilty of this final felony, Eakin wrote. Convictions for the forgery and theft are approbated -- the sentence for insurance fraud, however, is vacated. The case must be remanded for resentencing, we find, so the trial judge may impose the result he originally had in mind.

A dissenting three-page opinion by Justice Thomas G. Saylor didn't rhyme.

Eakin was first elected to the high court in 2001 after earning a reputation as the rhyming judge by issuing some opinions entirely in verse while sitting on an intermediate state appellate court in the late 1990s. Two former state Supreme Court justices, Stephen A. Zappala and the late Ralph J. Cappy, had expressed concern in the past that the practice could reflect poorly on the court.


Gingrich assails judges as he courts conservatives
Headline Court News | 2011/12/20 10:25
As he works to rev up his conservative base in Iowa with just two weeks to go until the state's caucuses, Newt Gingrich is launching a full-throated assault on a reliable GOP target: judges.

There is little love for the judicial branch among the Republicans seeking the White House. But Gingrich's ridicule has been, by far, the sharpest and the loudest. And it's taken a central role as his campaign struggles to stay atop polls in Iowa, a state where irate social conservatives ousted three judges who legalized same-sex marriage.

I commend the people of Iowa for sending a strong signal that when judges overreach that they can find a new job, Gingrich told about 200 supporters who turned out to hear him speak in Davenport, Iowa, on Monday.

Gingrich has suggested that judges who issue what he termed radical rulings out of step with mainstream American values should be subpoenaed before Congress to explain themselves before facing possible impeachment. As president, he said, he'd consider dispatching U.S. marshals to round up judges who refuse to show voluntarily. In extreme cases, whole courts could be eliminated.

In the final debate before voters weigh in at the Jan. 3 Iowa caucuses, Gingrich called the courts grotesquely dictatorial. He cast the fight in stark religious terms reminiscent of the culture wars, in which a secular, legal elite was encroaching on religious liberties.

The targets of Gingrich's strongest derision: the West Coast's 9th U.S. Circuit Court of Appeals, a perennial punching bag for the right, and a federal judge in Texas who banned prayer in a public school.


NY top court allows private securities claims
Headline Topics | 2011/12/20 10:25
Enforcement by the state attorney general against securities fraud doesn't pre-empt private common-law claims of negligence against investment companies, New York's top court ruled Tuesday.

The Court of Appeals rejected J.P. Morgan Investment Management's argument that New York's Martin Act gives the attorney general exclusive authority over fraudulent securities and investment practices. The court said Assured Guaranty (UK) Ltd. can sue J.P. Morgan.

We agree with the attorney general that the purpose of the Martin Act is not impaired by private common-law actions that have a legal basis independent of the statute because proceedings by the attorney general and private action have the same goal — combating fraud and deception in securities transactions, Judge Victoria Graffeo wrote.

Assured claimed breach of fiduciary duty and gross negligence, alleging J.P. Morgan invested heavily in risky mortgage-backed securities while committing to a conservative investment policy for reinsurance company Orkney RE II PLC, whose obligations Assured guaranteed. After the market crashed, Assured had to cover Orkney losses.

Here, the plain text of the Martin Act, while granting the attorney general investigatory and enforcement powers and prescribing various penalties, does not expressly mention or otherwise contemplate the elimination of common-law claims, Graffeo wrote. The unanimous ruling upheld a midlevel court, which had reversed a judge.


Calif. company due in court for Colo. fire deaths
Topics | 2011/12/19 11:29
A California specialty painting company is expected to plead guilty in the 2007 deaths of five workers at a Colorado power plant, in the rare prosecution of a company.

RPI Coatings Inc. of Santa Fe Springs, Calif., is expected to plead guilty Monday to five misdemeanor counts of workplace safety violations resulting in death.

During a court hearing earlier this month, Assistant U.S. Attorney Jaime Pena said the company likely would pay a substantial compensation to the victims' survivors as part of a plea deal.

The workers died after a fire broke out inside a pipeline at Xcel Energy's Cabin Creek hydroelectric plant near Georgetown, Colo., about 40 miles west of Denver.

A jury in June acquitted Minneapolis-based Xcel Energy Inc., which owns the power plant, of all criminal charges. The company has paid millions in compensation to the families.


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