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User ID: enronuslw PW: bnaweb22 -----Original Message----- From: "BNA Highlights" <bhighlig@bna.com<@ENRON Sent: Monday, November 19, 2001 11:41 PM To: BNA Highlights Subject: Nov. 20 -- U.S. Law Week's Case Alert ______________________________ THE U.S. LAW WEEK'S CASE ALERT Highlights & Table of Contents November 20, 2001 ______________________________ ISSN 1522-4317 Registered Web subscribers can access the full text of these articles by using the URL link supplied. Information about becoming a subscriber or signing up for a FREE Web trial is available at http://web.bna.com or call BNA Customer Relations at 1-800-372-1033, Mon. - Fri. 8:30 am - 7:00 pm (ET). __________ HIGHLIGHTS __________ NINTH CIRCUIT USES EIGHTH AMENDMENT PROPORTIONALITY TEST TO VOID NONCAPITAL SENTENCE IMPOSED UNDER CALIFORNIA'S THREE STRIKES LAW Prison terms, imposed under California's "Three Strikes" law, that will ensure at least 50 years of incarceration for a nonviolent recidivist convicted of petty theft violate the Eighth Amendment, the Ninth Circuit declares. The court finds the sentence grossly disproportionate to the gravity of the defendant's property crimes and to comparable sentences in other jurisdictions. The Three Strikes law imposes a minimum 25-year sentence without parole for any third felony offense by a defendant with at least two prior convictions for "serious" or "violent" felonies. The court cites several problems with the statute, including that the triggering felony need not be serious or violent, the prior strikes need not be violent offenses, and there is no time period after which prior convictions will no longer be counted as strikes. . . . Page 1294 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y2a9x1_ FRAUD ON COURT, AS OPPOSED TO FRAUD ON PTO, MAY NOT SERVE AS GROUND FOR HOLDING PATENT UNENFORCEABLE, FEDERAL CIRCUIT SAYS Litigation misconduct by a patentee may be the basis for dismissing a particular patent infringement suit but not for finding the patent unenforceable, the Federal Circuit holds. "Litigation misconduct, while serving as a basis to dismiss the wrongful litigant, does not infect, or even affect, the original grant of the property right," the court reasons. The court distinguishes fraud on the court from inequitable conduct before the Patent and Trademark Office in obtaining the patent, which taints the patent itself and renders it unenforceable by any party. The court disavows broad dicta in a 1990 decision indicating that patents may be held "unenforceable due to unclean hands." . . . Page 1298 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x9z9j0_ PUNITIVE DAMAGES MEGA-AWARD IN EXXON VALDEZ CASE REVERSED BY NINTH CIRCUIT AS UNCONSTITUTIONALLY EXCESSIVE The $5 billion punitive damages award to commercial fishermen injured by the "Exxon Valdez" oil spill is unconstitutionally excessive, the Ninth Circuit rules. The award is disproportionate to the $287 million compensatory damages incurred by the plaintiffs, to potential criminal and civil penalties, and to the $125 million restitution and penalty settlement with federal and state authorities, the court finds. The unprecedented 1995 award was entered before the U.S. Supreme Court spelled out the due process constraints on the magnitude of punitive damages in "BMW v. Gore". Applying the "Gore" standards, the Ninth Circuit concludes that the district court did not properly take into account the purely economic nature of the harm incurred by the plaintiffs, the unintentional character of the accident, or the mitigating actions undertaken by Exxon. . . . Page 1301 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x8q1y4_ _____________ IN THIS ISSUE _____________ A complete topical index of Case Alert. ATTORNEYS: A lawyer sued for negligently supervising a lawyer-employee who bilked clients is not protected by state statutes shielding lawyers from liability to those not in privity of contract with them, the Arkansas Supreme Court holds. . . . Page 1291 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y2t4m1_ BANKING: A National Credit Union Administration rule allowing family members of a group member to join multiple common bond credit unions without counting against the statutory 3,000-member limit for such credit unions is consistent with the recent changes to the Federal Credit Union Act, the D.C. Circuit holds. . . . Page 1292 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y0y8g7_ BANKRUPTCY: A bankruptcy debtor whose interest in his ex-spouse's individual retirement account arose through a marriage dissolution decree, not from his own employment, cannot make use of Minnesota's exemption for IRA funds, the Eighth Circuit Bankruptcy Appellate Panel decides. . . . Page 1292 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x7f2y9_ CRIMINAL LAW: A Virginia statute that bars the burning of a cross with the intent of intimidating any person or group selectively prohibits speech on the basis of content and is overbroad in violation of the First Amendment, the Virginia Supreme Court declares. . . . Page 1293 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y2a9u8_ CRIMINAL LAW: The imposition of two consecutive 25-years-to-life sentences under California's "Three Strikes" law upon a nonviolent recidivist convicted of petty theft violates the Eighth Amendment's protection against disproportionate sentences, the Ninth Circuit determines. . . . Page 1294 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y2a9x1_ ENVIRONMENT: CERCLA generally does not preempt a local ordinance authorizing a California city to investigate and remediate hazardous waste contamination of its soil and ground water, the Ninth Circuit finds. . . . Page 1295 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x3w7b1_ FAMILY LAW: A parent's use of deception to establish "home state" jurisdiction in a child custody dispute is "reprehensible conduct" for which the court may decline jurisdiction under the Uniform Child Custody Jurisdiction Act, the Maryland Court of Special Appeals holds in a case of first impression. . . . Page 1296 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x8n7r5_ MASS MEDIA: Arizona restrictions on the sale of material "harmful to minors" from vending machines withstand First Amendment strict scrutiny, the Arizona Court of Appeals rules. . . . Page 1297 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x6v0b7_ PATENTS: A federal court exceeded its authority in ruling a patent unenforceable due to the patentee's litigation misconduct, the Federal Circuit concludes. . . . Page 1298 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x9z9j0_ PUBLIC CONTRACTS: An executive order restricting project labor agreements on federal or federally assisted construction projects is not supported by constitutional or statutory authority and is preempted by the National Labor Relations Act, a federal court in the District of Columbia holds, permanently enjoining enforcement of the order. . . . Page 1299 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x8p2g3_ TAXATION: The Federal Circuit upholds 1993 federal estate tax legislation that retroactively increased the estate tax rate on taxable estates over $3 million from 50 to 55 percent. . . . Page 1300 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x6e2c3_ TORTS: The Ninth Circuit reverses the $5 billion punitive damages award levied in the "Exxon Valdez" oil spill tort suit as excessive in violation of due process. . . . Page 1301 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x8q1y4_ TRADE REGULATION: A Vermont statute that requires labeling of mercury-containing consumer products does not likely violate the commerce clause or the First Amendment as applied to light bulbs, the Second Circuit decides. . . . Page 1302 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y1f5j9_ CASES IN BRIEF : . . . Page 1303 ______________ TABLE OF CASES ______________ American Bankers Association v. National Credit Union Administration (D.C. Cir.) . . . Page 1292 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y0y8g7_ Anderson v. Seaver (In re Anderson) (B.A.P. 8th Cir.) . . . Page 1292 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x7f2y9_ Andrade v. Attorney General of California (9th Cir.) . . . Page 1294 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y2a9x1_ Aptix Corp. v. Quickturn Design Systems Inc. (Fed. Cir.) . . . Page 1298 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x9z9j0_ Baker v. Hazelwood (In re Exxon Valdez) (9th Cir.) . . . Page 1301 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x8q1y4_ BankAmerica Corp. Securities Litigation, In re (8th Cir.) . . . Page 1303 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x7k4j8_ Black v. Commonwealth (Va.) . . . Page 1293 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y2a9u8_ Building and Construction Trades Department, AFL-CIO v. Allbaugh (D.D.C.) . . . Page 1299 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x8p2g3_ Chavez v. Whirlpool Corp. (Cal. Ct. App.) . . . Page 1303 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x7y6p8_ Doe v. Department of Public Safety (2d Cir.) . . . Page 1303 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y1k0y4_ Ferrell v. Harvard Industries Inc. (E.D. Pa.) . . . Page 1304 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y2e9z1_ Fireman's Fund Insurance Co. v. Lodi, Calif. (9th Cir.) . . . Page 1295 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x3w7b1_ Gruber v. Gruber (Md. Ct. Spec. App.) . . . Page 1296 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x8n7r5_ Madden v. Aldrich (Ark.) . . . Page 1291 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y2t4m1_ Mattice v. Memorial Hospital of South Bend (N.D. Ind.) . . . Page 1304 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x7y4d9_ National Electrical Manufacturers Association v. Sorrell (2d Cir.) . . . Page 1302 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y1f5j9_ NationsBank of Texas NA v. United States (Fed. Cir.) . . . Page 1300 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x6e2c3_ Schiff v. Prados (Calif. Ct. App.) . . . Page 1304 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y2e9z4_ Special Devices Inc. v. OEA Inc. (Fed. Cir.) . . . Page 1304 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x7k3n2_ State v. Evenson (Ariz. Ct. App.) . . . Page 1297 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x6v0b7_ United States v. DeLuca (10th Cir.) . . . Page 1304 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x8r0n1_ United States v. Scott (1st Cir.) . . . Page 1304 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x8r0m8_ United States v. Taylor (D. Minn.) . . . Page 1304 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4y1m3j4_ Wright v. Hanna Steel Corp. (11th Cir.) . . . Page 1304 http://pubs.bna.com/ip/BNA/law2.nsf/id/a0a4x7k4k1_ ___________________________________________________________ The U.S. Law Week (ISSN 1522-4317) BNA's Highlights are published weekly by The Bureau of National Affairs, Inc., 1231 25th St., N.W., Washington, DC 20037. For Customer Service including subscriptions and address changes, call 1-800-372-1033. For retransmission of the Highlights, more information or to order full text of summarized stories, call BNA PLUS at 1-800-452-7773 (202-452-4323 in DC), FAX # 202-822-8092, Internet:bnaplus@bna.com. Copyright © 2001 by The Bureau of National Affairs, Inc. Washington, D.C. 20037. Use of this service is subject to the terms and conditions of the license agreement with BNA. Unauthorized access or distribution is prohibited.
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