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Court revives Sarah Palin’s libel lawsuit against The New York Times
Law Firm News |
2024/08/31 13:45
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A federal appeals court revived Sarah Palin’s libel case against The New York Times on Wednesday, citing errors by a lower court judge, particularly his decision to dismiss the lawsuit while a jury was deliberating.
The 2nd U.S. Circuit Court of Appeals in Manhattan wrote that Judge Jed S. Rakoff’s decision in February 2022 to dismiss the lawsuit mid-deliberations improperly intruded on the jury’s work.
It also found that the erroneous exclusion of evidence, an inaccurate jury instruction and an erroneous response to a question from the jury tainted the jury’s decision to rule against Palin. It declined, however, to grant Palin’s request to force Rakoff off the case on grounds he was biased against her. The 2nd Circuit said she had offered no proof.
The libel lawsuit by Palin, a onetime Republican vice presidential candidate and former governor of Alaska, centered on the newspaper’s 2017 editorial falsely linking her campaign rhetoric to a mass shooting, which Palin asserted damaged her reputation and career.
The Times acknowledged its editorial was inaccurate but said it quickly corrected errors it called an “honest mistake” that were never meant to harm Palin.
Shane Vogt, a lawyer for Palin, said in an email that Palin was “very happy with today’s decision, which is a significant step forward in the process of holding publishers accountable for content that misleads readers and the public in general.”
“The truth deserves a level playing field, and Governor Palin looks forward to presenting her case to a jury that is ‘provided with relevant proffered evidence and properly instructed on the law,’” Vogt added, quoting in part from the 2nd Circuit ruling.
Charlie Stadtlander, a spokesperson for the Times, said the decision was disappointing. “We’re confident we will prevail in a retrial,” he said in an email.
The 2nd Circuit, in a ruling written by Judge John M. Walker Jr., reversed the jury verdict, along with Rakoff’s decision to dismiss the lawsuit while jurors were deliberating.
Despite his ruling, Rakoff let jurors finish deliberating and render their verdict, which went against Palin.
The appeals court noted that Rakoff’s ruling made credibility determinations, weighed evidence, and ignored facts or inferences that a reasonable juror could plausibly find supported Palin’s case.
It also described how “push notifications” that reached the cellphones of jurors “came as an unfortunate surprise to the district judge.” The 2nd Circuit said it was not enough that the judge’s law clerk was assured by jurors that Rakoff’s ruling had not affected their deliberations.
“Given a judge’s special position of influence with a jury, we think a jury’s verdict reached with the knowledge of the judge’s already-announced disposition of the case will rarely be untainted, no matter what the jurors say upon subsequent inquiry,” the appeals court said. |
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The Supreme Court strips the SEC of a critical enforcement tool in fraud cases
Law Firm News |
2024/07/02 11:44
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The Supreme Court on Thursday stripped the Securities and Exchange Commission of a major tool in fighting securities fraud in a decision that also could have far-reaching effects on other regulatory agencies.
The justices ruled in a 6-3 vote that people accused of fraud by the SEC, which regulates securities markets, have the right to a jury trial in federal court. The in-house proceedings the SEC has used in some civil fraud complaints, including against Houston hedge fund manager George Jarkesy, violate the Constitution, the court said.
“A defendant facing a fraud suit has the right to be tried by a jury of his peers before a neutral adjudicator,” Chief Justice John Roberts wrote for the court’s conservative majority.
Justice Sonia Sotomayor, who read from her dissent in the courtroom, said that “litigants who seek to dismantle the administrative state” would rejoice in the decision.
Federal agencies that oversee safety in mines and other workplaces are among many that can only impose civil penalties in in-house, administrative proceedings, Sotomayor wrote, joined by Justices Ketanji Brown Jackson and Elena Kagan.
“For those and countless other agencies, all the majority can say is tough luck; get a new statute from Congress,” she wrote.
The case is among several this term in which conservative and business interests are urging the nine-member court to constrict federal regulators. The court’s six conservatives already have done so, including in a decision last year that sharply limited environmental regulators’ ability to police water pollution in wetlands.
Still awaiting decision are cases calling on the court to overturn the 40-year-old ruling colloquially known as Chevron, which has made it easier to sustain regulation of the environment, public, health, worker safety and consumer protection. Some of the same parties that supported Jarkesy at the Supreme Court are calling for Chevron to be overturned.
The SEC was awarded more than $5 billion in civil penalties in the 2023 government spending year that ended Sept. 30, the agency said in a news release. It was unclear how much of that money came through in-house proceedings or lawsuits in federal court.
The agency had already reduced the number of cases it brings in administrative proceedings pending the Supreme Court’s resolution of the case.
The high court rejected arguments advanced by President Joe Biden’s Democratic administration that relied on a 50-year-old decision in which the court ruled that in-house proceedings did not violate the Constitution’s right to a jury trial in civil lawsuits.
The justices ruled in favor of Jarkesy after the SEC appealed a decision in which the New Orleans-based 5th U.S. Circuit Court of Appeals threw out stiff financial penalties against Jarkesy and his Patriot28 investment adviser.
The appeals court found that the SEC’s case against Jarkesy, resulting in a $300,000 civil fine and the repayment of $680,000 in allegedly ill-gotten gains, should have been heard in a federal court instead of before one of the SEC’s administrative law judges. |
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Appeals ruling leaves Trump fate in defamation suit in flux
Law Firm News |
2022/09/28 10:34
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A federal appeals court asked a Washington D.C. appeals court Tuesday to help it decide whether the United States should be substituted for former President Donald Trump as the defendant in a defamation lawsuit brought by a woman who says he raped her over a quarter century ago.
The 2nd U.S. Circuit Court of Appeals in Manhattan in a 2-to-1 decision reversed a lower court ruling that had concluded Trump must face the lawsuit brought in Manhattan federal court by columnist E. Jean Carroll.
But it stopped short of saying the U.S. can be substituted for Trump as the defendant in the lawsuit. Instead, it asked The D.C. Court of Appeals, the highest court in the District of Columbia, to decide whether Trump’s public statements denying Carroll’s rape claims occurred within the scope of his employment as president.
Carroll maintains Trump defamed her with public comments he made after she wrote in a 2019 book that Trump raped her during a chance encounter in the mid-1990s in a Manhattan department store. Trump denied the rape and questioned Carroll’s credibility and motivations.
The 2nd Circuit said Trump would be entitled to immunity by having the U.S. substituted as the defendant in the lawsuit if it was decided that his statements came within the scope of his employment.
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Utah-based company wins auction to buy Jay Peak in Vermont
Law Firm News |
2022/09/08 14:12
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Utah-based Pacific Group Resorts, Inc., which owns five ski resorts, has won the auction to buy Jay Peak Resort, the Vermont ski area that was shaken by a massive fraud case involving its former owner and president.
The court-appointed receiver who has been overseeing Jay Peak for more than six years announced Thursday the results of Wednesday’s auction, with Pacific Group Resorts making the highest and best bid among the multiple bidders. The offer was not disclosed.
“We are pleased an experienced operating company like Pacific Group Resorts ended up with this great asset,” receiver Michael Goldberg said in a statement.
A federal court must approve the bid and a hearing is tentatively scheduled for Sept. 16, according to Goldberg. The sale is expected to close before the upcoming ski season, Goldberg said.
Pacific Groups Resorts, which owns Ragged Mountain Resort in New Hampshire and Powderhorn Mountain Resort in Colorado, as well as properties in British Columbia, Virginia, Maryland, had originally offered to buy Jay Peak for $58 million. Goldberg wanted to be able to continue to market the resort, and if there were qualified bids to hold an auction “in order to assure the highest and best offer,” according to a court filing last month.
Vern Greco, PGRI’s president, and CEO, said the company started pursuing the acquisition over three years ago.
“Jay has a high-quality team of dedicated employees who have weathered the uncertainty of the receivership for a long time,” he said in a statement. “We look forward to bringing renewed stability to the property and its staff, we’re enthusiastic about the prospects for the resort, and we are delighted to be in Vermont which is an important market for any mountain resort operator.”
Former Jay Peak owner Ariel Quiros, former president William Stenger, and Quiros’ adviser William Kelly were sentenced this spring to federal prison for their roles in a failed plan to build a biotechnology plant using tens of millions of dollars in foreign investors’ money raised through a special visa program.
The U.S. Securities and Exchange Commission and the state of Vermont also alleged in 2016 that Quiros and Stenger took part in a “massive eight-year fraudulent scheme” that involved misusing more than $200 million of about $400 million raised from foreign investors for various ski area developments through the same visa program.
They settled civil charges with the SEC, with Quiros surrendering more than $80 million in assets, including Jay Peak and Burke Mountain ski resorts.
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