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Marijuana opponents using racketeering law to fight industry
Legal News | 2015/07/16 09:08
A federal law crafted to fight the mob is giving marijuana opponents a new strategy in their battle to stop the expanding industry: racketeering lawsuits.

A Colorado pot shop recently closed after a Washington-based group opposed to legal marijuana sued not just the pot shop but a laundry list of firms doing business with it — from its landlord and accountant to the Iowa bonding company guaranteeing its tax payments. One by one, many of the defendants agreed to stop doing business with Medical Marijuana of the Rockies, until the mountain shop closed its doors and had to sell off its pot at fire-sale prices.

With another lawsuit pending in southern Colorado, the cases represent a new approach to fighting marijuana. If the federal government won't stop its expansion, pot opponents say, federal racketeering lawsuits could. Marijuana may be legal under state law, but federal drug law still considers any marijuana business organized crime.

"It is still illegal to cultivate, sell or possess marijuana under federal law," said Brian Barnes, lawyer for Safe Streets Alliance, a Washington-based anti-crime group that brought the lawsuits on behalf of neighbors of the two Colorado pot businesses.




High court won't hear Nevada patient dumping case
Legal News | 2015/07/01 14:21
The Supreme Court won't hear an appeal from Nevada over a lawsuit that claims the state wrongfully bused indigent psychiatric patients to San Francisco without paying the costs of their medical care.
   
The justices on Tuesday let stand a lower court decision that said California state courts have authority to hear the case challenging Nevada's discharge policies.

San Francisco is seeking $500,000 in reimbursement costs for treating 29 patients who were given vouchers for one-way bus tickets to California. It also wants an order barring Nevada from sending over any more patients.

A California Superior Court judge ruled that Nevada could be sued in California because it knew San Francisco would have to spend money on the patients.

Nevada claims the lawsuit interferes with its sovereign powers.



Supreme Court upholds key tool for fighting housing bias
Legal News | 2015/06/25 09:20
The Supreme Court handed a surprising victory to the Obama administration and civil rights groups on Thursday when it upheld a key tool used for more than four decades to fight housing discrimination.

The justices ruled 5-4 that federal housing laws prohibit seemingly neutral practices that harm minorities, even without proof of intentional discrimination.

Justice Anthony Kennedy, often a swing vote, joined the court's four liberal members in upholding the use of so-called "disparate impact" cases.

The ruling is a win for housing advocates who argued that the housing law allows challenges to race-neutral policies that have a negative impact on minority groups. The Justice Department has used disparate impact lawsuits to win more than $500 million in legal settlements from companies accused of bias against black and Hispanic customers.

In upholding the tactic, the Supreme Court preserved a legal strategy that has been used for more than 40 years to attack discrimination in zoning laws, occupancy rules, mortgage lending practices and insurance underwriting. Every federal appeals court to consider it has upheld the practice, though the Supreme Court had never previously taken it up.

Writing for the majority, Kennedy said that language in the housing law banning discrimination "because of race" includes disparate impact cases. He said such lawsuits allow plaintiffs "to counteract unconscious prejudices and disguised animus that escape easy classification" under traditional legal theories.

"In this way disparate-impact liability may prevent segregated housing patterns that might otherwise result from covert and illicit stereotyping," Kennedy said.

Kennedy was joined by Justices Ruth Bader Ginsburg, Stephen Breyer, Sonia Sotomayor and Elena Kagan.



Court says net neutrality rules will go into effect Friday
Legal News | 2015/06/13 19:09
Rules that treat the Internet like a public utility and prevent companies from blocking or slowing down some online traffic will go into effect Friday after a federal appeals court refused to delay them.

A three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit said it won't postpone implementation of the net neutrality regulations even though AT&T, Verizon, and other companies are fighting against them. The panel said the United States Telecom Association, the plaintiffs in the case, did not satisfy the requirements for a stay.

The ruling is a setback for the industry, but the litigation will go on. The court accepted the Telecom Association's request to speed up the proceedings and asked the two sides to submit a schedule for briefing within two weeks.

Last February, the FCC agreed in a 3-2 vote to new rules that specifically prohibit service providers from blocking or slowing Internet traffic. To make sure the FCC has the authority to punish violators, the agency agreed to put Internet service in the same regulatory camp as the telephone and other utilities. That means providers would have to act in the "public interest" when supplying Internet service and refrain from "unjust or unreasonable" business practices.


Appeals court sides with tribes in fight over land decisions
Legal News | 2015/06/05 00:40
In a victory for Native American tribes, an appeals court ruled Thursday that states cannot use negotiations for a Native American casino to challenge the federal government's decisions to recognize a tribe and set aside land for it.

An 11-judge panel of the 9th U.S. Circuit Court of Appeals said states have to use a separate process to contest those decisions and have a window of six years to file their challenge.

The decision removes the uncertainty many tribes faced about their land status after a smaller 9th Circuit panel reached a different conclusion, said Joe Webster, a partner with the Washington, D.C.-based law firm of Hobbs Straus Dean & Walker who was closely watching the case.

"This is certainly an important decision for tribes," he said.

The ruling came in a fight between California and the Humboldt County-based Big Lagoon Rancheria over the tribe's plan for a Las Vegas-style casino.

The tribe accused the state in a lawsuit of failing to negotiate a casino deal in good faith, and largely won its case in federal district court. A call to the state attorney general's office for comment about Thursday's ruling wasn't immediately returned.




Another Arizona immigration law dismantled by the courts
Legal News | 2015/06/05 00:40
The U.S. Supreme Court landed the final blow against an Arizona law that denied bail to immigrants who are in the country illegally and are charged with certain felonies, marking the latest in a series of state immigration policies that have since been thrown out by the courts.

The nation's highest court on Monday rejected a bid from metro Phoenix's top prosecutor and sheriff to reinstate the 2006 law after a lower appeals court concluded late last year that it violated civil rights by imposing punishment before trial.

While a small number of Arizona's immigration laws have been upheld, the courts have slowly dismantled most of the other statutes that sought to draw local police into immigration enforcement.

"At this point, we can say that was a failed experiment," said Cecillia Wang, an attorney for the American Civil Liberties Union who led the challenge of the law. "Like the rest of the country, Arizona should move on from that failed experiment."

Voters overwhelmingly approved the no-bail law as the state's politicians were feeling pressure to take action on illegal immigration. It automatically denied bail to immigrants charged with a range of felonies that included shoplifting, aggravated identity theft, sexual assault and murder.


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