Archive for July, 2012

July 25 roundup

  • Town of Gold Bar, Wash. (pop. 2,100) brought to brink of bankruptcy by multiple lawsuits following political feuds; “We are going broke winning lawsuits,” says mayor [Monroe Monitor via ABA Journal]
  • “No one in Youngstown Ohio has a Swiss bank account…except maybe that big new Swiss employer in town?” [Matt Welch, earlier] William McGurn: FATCA and the IRS’s reach abroad [WSJ via TaxProf, earlier here, here] Politicians and lawyers demand “improvements” to IRS bounty-paid-informant program, but what if anything they improve may depend on your point of view [TaxProf, earlier]
  • A human rights professor endorses a new model of residential facility that comes with names like “Freedom Place.” But what’s that on the door — could it be a lock to prevent escape? [Maggie McNeill] Romney spokesman says he’ll smite smut, Gov. Gary Johnson takes a more libertarian view [Daily Caller]
  • New Mark Herrmann book on in-house lawyering [Victoria Pynchon, Scott Greenfield, Paul Karlsgodt]
  • Mortgage eminent-domain seizure plan raises serious constitutional concerns [Andrew Grossman, earlier here, here]
  • Central casting? Send over one “business basher,” please: Sidney Wolfe says $3 billion Glaxo settlement too lenient [CL&P, earlier]
  • Ted Frank pre-vets the possibilities for Romney VP [PoL] Romney’s law and legal policy team [Brian Baxter, AmLaw Daily]

Cy pres: Ninth Circuit tosses breakfast deal

A three-judge panel of the Ninth Circuit led by Judge Stephen Trott has rejected a settlement between class action lawyers and Kellogg over allegedly misleading promotion of its Frosted Mini-Wheats cereal. The settlement involved a smallish refund offer for the class of consumers, an unrelated food giveaway (so-called cy pres relief, given to beneficiaries other than the class initially wronged), and $2 million to the plaintiff’s lawyers, or roughly $2,100 an hour. [Hans von Spakowsky/PJ Media, Ted Frank/PoL, ABA Journal]

Don’t “possess” it or “sell” it — but do pay $29 million in taxes on it

…there is one item in the collection [of the late New York dealer Ileana Sonnabend], a work by Robert Rauschenberg that cannot be sold. It contains a stuffed bald eagle and under the terms of the 1940 Bald and Golden Eagle Protection Act and the 1918 Migratory Bird Act, it is a felony to “possess, sell, purchase, barter, transport, import or export any bald eagle — alive or dead.” The estate, advised by three experts, including one from Christie’s, therefore, valued the work at zero. The IRS decided it was worth $65 million, and is demanding $29.2 million in taxes and $11 million in penalties because the heirs “inaccurately” stated its value.

[John Steele Gordon, Commentary on NYT reporting; Popehat]

Intellectual property roundup

  • This is getting serious: “Patent troll targets Minecraft” [Rob Beschizza, BoingBoing] Are mainstream tech companies joining the patent-troll brigade? [WSJ Law Blog] Bessen-Meurer have another study of patent trolls out, this one suggests their direct costs to economy $29 billion a year [Joe Mullin, Ars Technica]
  • London Olympics games: you may link to our site only if not in a “derogatory or otherwise objectionable manner” [Popehat]
  • “Fan Fiction vs. Copyright – Q&A with Rebecca Tushnet” [Reason.tv]
  • Are the logos similar? Apparel maker Under Armour sues maker of “Body Armor” sports drink [Baltimore Sun]
  • “U.S. Patent System is Broken, Declares Judge in Android v. Apple Cases” [Posner; DailyTech] Posner “on Why he thinks There Are Too Many Patents in America” [Atlantic]
  • Startups: “Why do investors want founders to spend money and time on bogus patents?” [Cory Doctorow]

“10 Days in the Police Academy, 14 Years on Disability”

The Cato Institute recently began providing a home to the previously freestanding National Police Misconduct Reporting Project, which compiles an astounding and varied collection of allegations of misconduct, inefficiency and questionable employment practices in law enforcement. Among them: this report from the Chicago Sun-Times noted by my colleague Tim Lynch. If you have any interest in the topic, you’ll want to add the site to your RSS, Facebook or Twitter feeds.

July 23 roundup

  • Oh, ABC: “America’s Wrongest Reporter” Brian Ross achieves another feat of wrongness [Hans Bader] “Don’t turn Aurora killer into celebrity” [David Kopel, USA Today] For the media: five tips on how not to misreport the gun angle [Robert VerBruggen, NRO]
  • Ed Brayton of Dispatches from the Culture Wars challenges me on the War For Roberts’ Vote, and I respond;
  • The “contains peanuts” warning on a peanut jar [Point of Law]
  • “California Stats Show Elected Judges Disciplined More Often than Appointed Judges” [ABA Journal] New Federalist Society guide on state judicial selection procedures;
  • “Science Quotas for Women–A White House Goal” [Charlotte Allen, Minding the Campus; Hans Bader] More: Heritage. “Title IX swings wildly at invisible enemy” [Neal McCluskey]
  • So that’s what his business card meant when it said he practiced at Loeb and Wachs [AP: “Hawaii attorney convicted in ear licking case”]
  • Rare occasion in which defendant is allowed to strike back: California appeals court says software executive can pursue malicious prosecution case against class action lawyers [NLJ]

“Sock Puppets: How the Government lobbies itself and why”

Christopher Snowdon for the U.K.’s Institute for Economic Affairs, in an analysis [PDF] of the government’s penchant for funding private advocacy:

This paper argues that there is a deeper problem if government funds and/or creates pressure groups with the intention of creating a ‘sock puppet’ version of civil society which creates the illusion of grassroots support for new legislation. These state-funded activists engage in direct lobbying (of politicians) and indirect lobbying (of the public) using taxpayers’ money, thereby blurring the distinction between public and private action.

• State-funded charities and NGOs usually campaign for causes which do not enjoy widespread support amongst the general public (e.g. foreign aid, temperance, identity politics). They typically lobby for bigger government, higher taxes, greater regulation and the creation of new agencies to oversee and enforce new laws. In many cases, they call for increased funding for themselves and their associated departments. In public choice terms, they are ‘concentrated interests’ compelling the taxpayer to meet the costs that come from their policies being implemented, as well as the costs of the lobbying itself.

Snowdon’s analysis could be carried over to the equivalent institutional arrangements in the U.S. with relatively little change.

Meanwhile, hmm: Amtrak will give you a fare discount if you join a group that supports Amtrak subsidies [Jonathan Adler]