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U.S. Supreme Court voids overall contribution limits
Headline Court News | 2014/04/03 14:16
The Supreme Court struck down limits today in federal law on the overall campaign contributions the biggest individual donors may make to candidates, political parties and political action committees.

The justices said in a 5-4 vote that Americans have a right to give the legal maximum to candidates for Congress and president, as well as to parties and PACs, without worrying that they will violate the law when they bump up against a limit on all contributions, set at $123,200 for 2013 and 2014. That includes a separate $48,600 cap on contributions to candidates.

But their decision does not undermine limits on individual contributions to candidates for president or Congress, now $2,600 an election.

Chief Justice John Roberts announced the decision, which split the court's liberal and conservative justices. Roberts said the aggregate limits do not act to prevent corruption, the rationale the court has upheld as justifying contribution limits.

The overall limits "intrude without justification on a citizen's ability to exercise 'the most fundamental First Amendment activities,'" Roberts said, quoting from the court's seminal 1976 campaign finance ruling in Buckley v. Valeo.

Justice Clarence Thomas agreed with the outcome of the case, but wrote separately to say that he would have gone further and wiped away all contribution limits.


Court ruling could delay California water project
Headline Court News | 2014/03/17 13:53
A state appellate court has ruled that California water officials cannot go onto private property for soil testing and other studies related to construction of two massive tunnels that would siphon water from the Sacramento River.

Nancy Vogel of the state's Department of Water Resources said Friday that officials anticipated the ruling and work won't be delayed.

The decision handed down Thursday by the state's 3rd District Court of Appeal says an intrusion on private property without permission violates the California Constitution.

If built, the Bay Delta Conservation Plan — estimated to cost billions of dollars — would send fresh water around the Sacramento-San Joaquin Delta to Central and Southern California.

The ruling stems from a lawsuit filed against the state by more than 150 property owners in Sacramento, San Joaquin, Yolo, Solano and Contra Costa counties.

The three-judge panel ruled 2-1 in a 44-page decision with the majority opinion saying the state must adhere to eminent domain laws, which give property owners the right to a jury trial to determine a fair payment for taking away their land.

Acts such as testing soil, observing or trapping animals either by driving onto property, using boats or going on foot amount to "taking" and trigger the need for eminent domain proceedings, the majority opinion said.


Court weighs securities fraud class-action cases
Headline Court News | 2014/03/05 13:09
The Supreme Court is considering whether to abandon a quarter-century of precedent and make it tougher for investors to band together to sue corporations for securities fraud.

The justices hear arguments Wednesday in an appeal by Halliburton Co. that seeks to block a class-action lawsuit claiming the energy services company inflated its stock price.

A group of investors says it lost money when Halliburton's stock price dropped after revelations the company misrepresented revenues, understated its liability in asbestos litigation and overstated the benefits of a merger.

Justices threw out the company's first attempt to block the lawsuit in 2011. But Halliburton is now urging the court to overturn a 25-year-old decision that sparked a tidal wave of securities-related, class-action lawsuits against publicly traded companies and has led to billions in settlements.

The court's 1988 decision in Basic v. Levinson says shareholders who claim they were defrauded by false statements in securities filings don't have to prove they actually relied on the statements. Rather, the court reasoned that any misrepresentation would be reflected in the current stock price. Even if investors are not aware of the misstatements, they are presumed to be aware of them because they affect the stock price.

This presumption, known as the "fraud-on-the-market theory," has become the driving force for modern class-action securities cases. But some economists have questioned whether this theory makes sense anymore, saying it doesn't account for the sometimes random and arbitrary nature of stock trading.


California court: Drivers can read cellphone maps
Headline Court News | 2014/03/05 13:09
Drivers in California can legally read a map on their hand-held cellphones while behind the wheel, a state appeals court ruled Thursday.

The 5th District Court of Appeal reversed the case of a Fresno man who was ticketed in January 2012 for looking at a map on his iPhone 4 while stuck in traffic. The driver, Steven Spriggs, challenged the $165 fine.

But Spriggs said he's no champion of those who think they can get away with cruising down the road while staring at their phone or engaging in other such dangerous behavior. Spriggs would like the law that ensnared him to be rewritten so officers can do their job unencumbered.

"We're distracted all the time," he said. "If our distractions cause us to drive erratically, we should be arrested for driving erratically."

It's personal for Spriggs, whose son suffered a broken leg from a driver who was chatting on a cellphone. Spriggs said he uses a hands-free device to talk and drive.

The incident that ensnared Spriggs happened when he was stopped by roadwork. He had grabbed his cellphone to find an alternate route when a California Highway Patrol officer on a motorcycle spotted him and wrote the ticket.

Spriggs first challenged the case in traffic court, where he lost, and then appealed it himself to a three-judge panel in Fresno County Superior Court, where he lost a second time.


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