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Treasury risks overpaying law firms
Court Watch |
2011/04/18 09:57
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The Treasury Department paid out more than $27 million to law firms overseeing the financial bailouts without requiring detailed bills or questioning the incomplete records that the lawyers provided, a government watchdog says.
Treasury's "current contracts and fee bill review practices create an unacceptable risk that Treasury, and therefore the American taxpayer, is overpaying for legal services," the Special Inspector General for the Troubled Asset Relief Program said in a report issued Thursday.
Treasury could not have adequately gauged whether the fees were reasonable because the records are so sparse, the report says.
The report criticizes so-called "block billing," in which law firms submit "vague and inadequate descriptions of work, and administrative charges — all of which should have been questioned before payment," the report says.
Treasury staff failed to question the charges for work that was described vaguely, the report says. |
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Judge Considers $30M Dairy Antitrust Settlement
Court Watch |
2011/04/18 09:57
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A federal judge in Vermont is considering moving forward with a partial settlement of an anti-trust lawsuit in which national dairy processor Dean Foods would pay some northeast dairy farmers $30 million.
But U.S. District Court Judge Christina Reiss said Friday she may defer a decision on part of the settlement that would require Dean Foods of Dallas to change its milk-buying practices in the region for 30 months by buying milk from independent farmers, a controversial provision that the plaintiffs say would jump start competition but a national dairy cooperative says would harm some farmers.
"I am likely to sever the settlement," Reiss told lawyers during a hearing on Friday.
Farmers have complained for years that Dean, the cooperative Dairy Farmers of America and its marketing affiliate Dairy Marketing Services have come to dominate the milk-buying market and have held down prices paid to farmers.
By agreeing to the settlement, Dean Foods does not admit any liability and "continues to maintain that it has not broken any laws," Dean Foods' attorney Paul Friedman said Friday.
It settles a class action lawsuit filed in 2009, which means 5,000 to 10,000 farmers could get a share of the settlement.
During the more than two-hour hearing, both sides urged Reiss to approve the deal, which plaintiff lawyer Kit Pierson said was "reached after extraordinarily difficult negotiations with Dean Foods." |
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Democrats criticize hiring of firm for House remap
Legal Business |
2011/04/18 07:56
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Democratic lawmakers are raising complaints about Republican House Speaker Jim Tucker's decision to hire a law firm with national GOP ties to submit the state House remap to federal officials.
The head of the House redistricting committee, Democratic Rep. Rick Gallot, said Friday the choice creates the appearance of impropriety because the firm had given the Republican delegation advice about redistricting.
The Senate is using its staff to do its redistricting submission.
Tucker has hired Washington, D.C.-based Holtzman Vogel PLLC to guide the redesign of the 105 House districts to the U.S. Justice Department for review under the Voting Rights Act.
Tucker says he chose a firm with the expertise needed for the complex legal work.
The managing partner of Holtzman Vogel is chief counsel to the Republican National Committee. |
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Court denies appeal over inmate's long sentence
Court Watch |
2011/04/18 05:58
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The Supreme Court has rejected an appeal from a convicted insurance swindler who is protesting his 835-year prison term.
The court did not comment Monday in turning away a plea from Sholam Weiss for his release from prison and return to Austria, where he was arrested after he fled the United States during his criminal trial in Orlando, Fla. Weiss is in prison for his role in the collapse of a life insurance company in the 1990s that cost thousands of people their life savings.
He still may be able to appeal his conviction and sentence, even though an appeals court had earlier ruled that he forfeited his appeal rights when he became a fugitive.
A judge cut 10 years from Weiss' sentence when Austria returned him to the U.S. |
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High court takes no action on Va. health care case
Headline Legal News |
2011/04/17 09:57
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The Supreme Court has taken no action on Virginia's call for speedy review of the health care law.
Virginia Attorney General Ken Cuccinelli is asking the court to resolve questions about the law quickly, without the usual consideration by federal appellate judges and over the objection of the Obama administration.
The case was among those that were scheduled to be discussed in the justices' private conference on Friday, but there was no announcement about the case when the court convened on Monday.
The silence could mean, among other things, that one justice asked for more time to think about the case or to write a short opinion that would accompany an order.
The justices meet again on Friday to discuss pending cases. |
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