What #*^&%$# Sub-Prime Crisis?

Via Volokh Conspiracy, a witness and his attorney were sanctioned $29,000 for outrageous conduct over a two day deposition.  The deponent's expletive laced diatribe against the questioning attorney (with the patience of  a saint) can be read here.  The deponent foolishly invited the attorney to take him to court if he objected to the obstructive answers and the foul language.  That attorney accepted the invitation and the District Court judge predictably threw the book at the witness.

What kind of lawsuit could possibly give rise to such outrageous behavior by the particpants?

Here's the judge:

Plaintiff GMAC Bank administers residential mortgage loans, and Defendant HTFC Corp. takes loan applications and sells residential mortgage loans to lenders, such as GMAC. GMAC and HTFC entered into a contract for the sale of certain loans. GMAC claims that HTFC breached the contract by selling it certain loans that were improperly underwritten and not investment quality, and refusing to repurchase them, as required by the contract.

Yup, the susbprime mortgage crisis, a legal growth industry.

Posted by Joseph R. McFaul on Tuesday, March 11, 2008 at 00:00 Comments Closed

The Law Versus Online Hate Speech?

I am pretty close to a First Amendment absolutist. 

Little in the away  of speech regulation should permitted.  I make exceptions for reasonable  time place and manner restrictions intended to protect the equally valuable right of peace and quiet.  I also make exceptions for "captive" audiences and speech that impsoes burdens on the listener.  No picketing of residences for me.  No email spam.

The internet, however, does not have the same time place and manner issues concerns that commonly arise in the real world.  So I'm more in favor of anything goes on the internet.  Hate speech is fine as long as it does not cross the line into criminal conspiracy to commit crimes.  Similarly, speech that is defamatory or fraudulent can be regulated on the internet as it already is elsewhere.  E-mail is, and should be, subject to different rules.

I disagree therefore that internet hateful speech should be regulated to any degree.  I see a plain difference between an ISP server's host of a chat room and a newspaper's publishing of a defamatory letter.  I'd be more sympathetic to newspapers if they printed all letters to the editor, but I don't; think many would be inclined to do so.

The Christian Science Monitor, on the other hand, proposes broad regulation of internet speech.  The Monitor is most concerned with cyberbullying, making this point:

The most notorious case is the cyber-bullying of Megan Meier, a 13-year-old girl from a St. Louis suburb. In 2006, Megan, a troubled, overweight adolescent, became embroiled in an intense, six-week online friendship with "Josh Evans" on MySpace. After "Josh" turned against Megan and posted a comment that, "The world would be better place without you," the girl hanged herself. Later, when it became known that the fictitious Josh Evans was Lori Drew, a neighbor and mother of a girl with whom Megan had argued, there were calls for criminal prosecution. But the St. Charles County Sheriff's Department didn't charge Ms. Drew.

And I'm not sure it should have.  The conduct is reprehensible, and potentially qualifies as a tort.  That doesn't mean cyberbullying and tortious invasions of privacy must be addressed by increased speech regulation.  Much speech and conduct in our daily lives is truly immoral and may lead to legal ramifications.  Laws limiting speech are unlikely to be effective and far more likely to deprive proponents of unpopular viewpoints of their last platform of expression.  I'd rather have then on the internet than marching down my street, bullhorn in hand.

The anti-defamation league weighs in, on my side:  Combat hate speech with more speech.  The bright light of attention, mockery and facts all defang hate speech more effectively than censorship.

Posted by Joseph R. McFaul on Monday, March 10, 2008 at 00:00 Comments Closed

Former USA Today Reporter Incurring Daily Fines in Anthrax Case.

You may remember the anthrax scare a few years back.  Almost immediately following the September 11, 2001, terrorist  attacks, the mailed weaponized anthrax envelopes killed five people and made an entire nation even more jittery.

The crime was never solved, but the DNA of the anthrax indicated it was a domestic "inside job" because the anthrax appeared to be similar to the biological weapon produced by the U.S. Army.  Suspicion fell on former Army Chemist Lee Hatfill, who was mercilessly trailed, hounded and investigated.  He was never charged.

He sued and subpoenaed several reporters, including former USA Today reporter Tony Locy in an effort to obtain the names of the federal investigators that leaked his name to the press.  The other reporters' sources released the reporters from any confidentiality pledge and agreed to appear for depositions.  Locy refused to identify her sources and now faces escalating fines of up to $5000 per day.  Those fines cannot be paid by USA Today.  Currently, there is no federal reporter's shield law, but bills have been submitted in Congress to create one.  These will be too late for Locy.

These "reporter's confidentiality" cases present difficult issues.  Generally truth, and access to the truth, is the goal of legal proceedings.  Sometimes it is important that another goal of the legal system be protected-the value of settlement for example.  When necessary to achieve these goals, certain evidence is not admissible-evidence of settlement discussion, for example.  The First amendment goal of freedom of the press is an important goal, but generally, the press is free enough o pursue its own quest for truth that a reporter's shield would be needed only in limited cases.

Posted by Joseph R. McFaul on Sunday, March 09, 2008 at 00:00 Comments Closed

Homeschooling ban in California?

No, contrary to rumors, California has not banned homeschooling.  The court of appeal held that homeschool teachers are required to have state credentials.

Homeschooling has long been a parent's last right of veto over any perceived deficiencies in the California public school system.   In an opinion already attracting hysterical responses, the court merely held that California law requires students to actually attend school.  If that school is homeschool, the students are to be taught under the supervision of credential teachers under programs supervised by the school district--a requirement mostly observed in the breach.  This failure to enforce the law has led homeschoolers to think they were entitled to be unregulated.

The opinion  has far reaching ramifications for homeschooling as an alternative lifestyle, general education requirements and both private and public education.  Expect to hear more from the Homeshcooling Legal Defenses Fund.

Posted by Joseph R. McFaul on Thursday, March 06, 2008 at 00:00 Comments Closed

Its National Grammar Day!

Today is National Grammar Day.

If that headline grated on your nerves like fingernails on a chalkboard then you should join the Society for the Promotion of Good Grammar and visit its blog.

For fun, your can carefully read the congratulatory letter from President Bush.  I'll bet that one was carefully scrutinized by Mrs. Bush.

Posted by Joseph R. McFaul on Tuesday, March 04, 2008 at 00:00 Comments Closed

Exxon Valdez Punitive Damages at Supreme Court

Last week, the Supreme Court heard oral arguments on the punitive damages award arising from the 1987 Prince William Sound Exxon Valdez spill.  Exxon has already paid about $500 million dollars in compensation to injured parties and over 3.4 billion dollars in cleanup costs, fines penalties and other expenses.  The original 5 billion dollar punitive damages award was previously reduced to 2.5 billion dollars.

It is that award that is now at issue.  The case raises three issues regarding punitive damages.  First, earlier Supreme court precedent (BMW v. Gore) limits punitive damages to a relatively small multiple of actual damages.  Is the 10 to 1 ratio (depending on the bookkeeping) here too high?  Second, is there a different ratio when the compensatory damages themselves are already so high, capping the punitive damages at some absolute limit?  State Farm v. Campbell seem to suggest there is.  Finally, punitive damages are not traditionally available in martime law, but might be under the Federal Clean Water Act.

The Supreme court could leave the 2.5 billion award in place, reduce it, or eliminate it entirely.

Disclosure: I worked very closely with the Coast Guard investigator assigned to prepare the Coast Guard's investigation into the Exxon Valdez disaster. I also peripherally assisted Mike Chalos and Joseph Hazelwood in the defense of Captain Hazelwood's Coast Guard license.  Joseph Hazelwood was condemned worldwide and even immortalized as the patron saint of the foul polluting  "Smokers" in the "hit" movie "Waterworld."  As Wikipedia notes, the causes of the grounding were more complex than depicted in the mass media.  There was plenty fo blame to go around.

A sympathetic portrayal of Hazelwood is here.

A little known immediate and heroic response to the spill is depicted here.  The image shows the Exxon Valdez hard aground on Bligh Reef.  Next to it is the tanker Exxon Baton Rouge.

When the tides were right, the Exxon Baton Rouge, was brought over the top of Bligh Reef.  The remaining 40 million gallons of Exxon Valdez cargo was transferred in a rpocess called "lightering" to the Baton Rouge, allowing the Valdez to be refloated, but done so that the Baton Rouge itself did not ground. The crews of both ships, the pilots and technical advisors aboard the two ships all worked in very hazardous conditions to keep a bad situation from getting much worse. The lightering was a superb display of seamanship in sharp contrast to the seamanship leading up to the grounding.

Posted by Joseph R. McFaul on Monday, March 03, 2008 at 00:00 Comments Closed

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Posted by JRM on Thursday, February 21, 2008 at 00:00 Comments Closed

New York City passes e-waste law

New York City passes one of the first municipal e-waste law laws in the nation.

E-waste is comprised mostly of non-biodegradable PVC plastics and heavy metals.  It unavoidably contains several hazarodus substances regulated under the Resource Conservatin and Recovery Act (RCRA), among other statutes.

Here in Calfornia, at least one company recycles e-waste with approval of hte DTSC IWMB and EPA.

Californa has a state law regulating e-waste encouraging reuse and recylcing of used computer monitors, and any cathode ray tube or liquid chystal diode disply screen.   Unfortunately, the provisions of the act are unhelpfully sprinkled throughout various sections of the Public Resources Code.  The entire text of the act is here.

Before tossing that portable dvd player, monitor or even that outdated plasma TV, be sure to check out the local recycling drop off centers handling e-waste. 

Posted by Joseph R. McFaul on Tuesday, February 19, 2008 at 00:00 Comments Closed