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US trustee, media challenging secrecy in FTX bankruptcy
Court News | 2022/12/16 12:21
Attorneys for the U.S. bankruptcy trustee in Delaware and several major media outlets are challenging an effort by cryptocurrency exchange FTX to withhold names of the company’s customers and creditors from the public.

At a brief hearing Friday, the judge presiding over the FTX bankruptcy granted a motion by media outlets to intervene for the purpose of objecting to the sealing of creditor information.

A separate objection by the U.S. trustee, the government watchdog that oversees Chapter 11 reorganizations, also was on the agenda for Friday’s hearing but was postponed by Judge John Dorsey until Jan. 11, when he likely will also hear arguments from the media.

In a court filing earlier this week, an attorney for Delaware’s acting U.S. trustee noted that “disclosure is a basic premise of bankruptcy law.”

“The debtors simply cannot seek bankruptcy protection and then do business behind a shield of secrecy” Juliet Sarkessian wrote. Sarkessian warned that allowing FTX to shield creditor lists and financial schedules would be a “slippery slope” and create an unfavorable precedent for bankruptcies in which creditors are also customers.

Last month, Dorsey temporarily granted a request by FTX to redact the names and addresses of clients and creditors from court filings, even though such information is typically public. The judge did direct FTX to file an unredacted creditor matrix under seal with the court, but the company has yet to do so.

Lawyers for FTX have argued that its customer list is both a valuable asset and confidential commercial information. They contend that secrecy is needed to protect FTX accounts from potential theft and to ensure that potential competitors do not “poach” FTX customers.

FTX also has sought to withhold the names and addresses of non-customer individual creditors who are citizens of the United Kingdom or European Union nations, citing a consumer protection program known as the General Data Protection Regulation, or GDPR.


Hong Kong asks Beijing to step in into row over UK lawyer
Court News | 2022/11/28 09:31
Hong Kong’s leader said on Monday he will ask Beijing to rule whether to let foreign lawyers be involved in national security cases after the city’s top court allowed a prominent pro-democracy publisher to hire a British lawyer for his upcoming trial.

John Lee said the government would ask for a postponement of Jimmy Lai’s high-profile trial that was due to start Thursday. But he did not offer a timetable for the interpretation that could effectively preempt the court judgment.

“At present, there is no effective means to ensure that a counsel from overseas will not have conflict of interest because of his nationality. And there is also no means to ensure that he has not been coerced, compromised, or in any way controlled by foreign governments, associations or persons,” he said.

The move was targeting overseas counsels who do not have the general practice qualification to carry out legal service in Hong Kong, he added.

Lai, the founder of the now-defunct Apple Daily and one of the most prominent figures in the city’s pro-democracy movement, was arrested after Beijing imposed a tough national security law to crack down on dissent following widespread protests in 2019. He faces collusion charges and a maximum penalty of life imprisonment.

While the city’s secretary for justice was appealing an earlier ruling that approved Lai to hire a veteran British lawyer at the top court, pro-Beijing politicians and newspapers also voiced objections over the last few days.


Justices asked to hear dog toy dispute. Will they bite?
Court News | 2022/11/21 11:06
The company that makes Jack Daniel’s is howling mad over a squeaking dog toy that parodies the whiskey’s signature bottle. Now, the liquor company is barking at the door of the Supreme Court.

Jack Daniel’s has asked the justices to hear its case against the manufacturer of the plastic Bad Spaniels toy. The high court could say as soon as Monday whether the justices will agree. A number of major companies from the makers of Campbell Soup to outdoor brand Patagonia and jeans maker Levi Strauss have urged the justices to take what they say is an important case for trademark law.

The toy that has Jack Daniel’s so doggone mad mimics the square shape of its whisky bottle as well as its black-and-white label and amber-colored liquor while adding what it calls “poop humor.” While the original bottle has the words “Old No. 7 brand” and “Tennessee Sour Mash Whiskey,” the parody proclaims: “The Old No. 2 on Your Tennessee Carpet.” Instead of the original’s note that it is 40% alcohol by volume, the parody says it’s “43% Poo by Vol.” and “100% Smelly.”

The toy retails for about $13 to $20 and the packaging notes in small font: “This product is not affiliated with Jack Daniel Distillery.”

The toy’s maker says Jack Daniel’s can’t take a joke. “It is ironic that America’s leading distiller of whiskey both lacks a sense of humor and does not recognize when it — and everyone else — has had enough,” lawyers for Arizona-based VIP Products wrote the high court. They told the justices that Jack Daniel’s has “waged war” against the company for “having the temerity to produce a pun-filled parody” of its bottle.

But Jack Daniel’s lead attorney, Lisa Blatt, made no bones about the company’s position in her filing.

“To be sure, everyone likes a good joke. But VIP’s profit-motivated ‘joke’ confuses consumers by taking advantage of Jack Daniel’s hard-earned goodwill,” she wrote for the Louisville, Kentucky-based Brown-Forman Corp., Jack Daniel’s parent company.

Blatt wrote that a lower court decision provides “near-blanket protection” to humorous trademark infringement. And she said it has “broad and dangerous consequences,” pointing to children who were hospitalized after eating marijuana-infused products that mimicked candy packaging.


CAS asked to judge Ecuador case by 10 days before World Cup
Court News | 2022/10/03 10:00
Sport’s highest court has been asked to judge a case that aims to remove Ecuador from the World Cup by no later than Nov. 10 — just 10 days before the team should face host Qatar in the opening game.

The Court of Arbitration for Sport said it registered appeals by the Chilean and Peruvian soccer federations against a FIFA ruling this month that Ecuador defender Byron Castillo was in fact eligible to play in the eight qualifying games he was selected for.

CAS gave no timetable for appointing judges and organizing a hearing, though said both parties appealing asked for a final award by Nov. 10.

Chile officials claim to have documents proving Castillo is actually Colombian and that Ecuador should forfeit all eight games he played in as 3-0 losses.

That legal argument was dismissed by FIFA’s disciplinary committee in June and upheld by FIFA appeal judges two weeks ago.

Ecuador placed fourth in the South American qualifying group in March and claimed a direct World Cup entry. Days later it was drawn into Group A with Qatar – playing the host on Nov. 20 in Doha -- Netherlands and Senegal.

If the qualifying games were forfeited, the revised points totals would lift Chile to fourth from seventh.

Peru placed fifth and has asked CAS to get Ecuador’s entry as the next highest placed South American team. Peru already lost an intercontinental playoff to Australia in June.


Alabama must disclose status of nitrogen hypoxia executions
Court News | 2022/09/14 13:20
A federal judge told Alabama to stop being vague and give a firm answer by Thursday evening on if the prison system is ready to use the untested execution method of nitrogen hypoxia at an execution next week.

U.S. District Judge R. Austin Huffaker, Jr. gave the state the deadline to file an affidavit, or declaration, on whether the state could try to execute inmate Alan Miller by nitrogen hypoxia on Sept. 22 if the use of lethal injection is blocked. The order came after the state dangled the possibility during a Monday court hearing of being ready to become the first state to attempt an execution with nitrogen hypoxia.

Nitrogen hypoxia is a proposed execution method in which death would be caused by forcing the inmate to breathe only nitrogen, thereby depriving him or her of the oxygen needed to maintain bodily functions. It’s authorized as an execution method in three states — Alabama, Oklahoma and Mississippi — but has never been used.

The state provided “vague and imprecise statements regarding the readiness and intent to move forward with an execution on September 22, 2022, by nitrogen hypoxia,” Huffaker said.

The judge asked the state Monday whether it was ready to use the method at Miller’s execution. A state attorney replied that it was “very likely” it could use nitrogen hypoxia next week, but said the state prison commissioner has the final decision.

“On or before September 15, 2022 at 5:00 p.m. CDT, the defendants shall file an affidavit or declaration of Commissioner John Q. Hamm, Attorney General Steve Marshall, or other appropriate official with personal knowledge, definitively setting forth whether or not the Defendants can execute the Plaintiff by nitrogen hypoxia on September 22, 2022,” the judge wrote in a Tuesday order.

Miller is seeking to block his scheduled execution by lethal injection, claiming prison staff lost paperwork he returned in 2018 choosing nitrogen hypoxia as his execution method.

Miller testified Monday that he is scared of needles so he signed a form selecting nitrogen hypoxia as his execution method. He said he left the form in his cell door tray for an prison officer to pick up. The state said there is no evidence to corroborate his claim.


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