Archive for category Legal
Attorney Tax-the U.S. Again Leads the World!
Posted by Tom in Attorneys, Business, Legal, Litigation on June 6, 2011
Not only do we have the highest income tax of all the major developed nations, and not only is that tax “extraterritorial” in its application, but we have the highest “attorney tax” of all the developed countries. Yes, we are the most litigious nation in the world. And yes, litigation is a major drag on the economy.
But there are glimmers of hope, most recently from the Lone Star State. Governor Rick Perry signed into law a bill making litigants pay for filing frivolous lawsuits. Chuck Norris and Stephen DeMaura tell the story in Friday’s WSJ: A Texas Roundhouse for the Trial Lawyers. The law requires that losing plaintiffs will be required to pay defendant’s attorney fees and costs if the case is determined to be groundless.
Now this is a small step but a necessary one in that it will force plaintiffs to think twice before filing nuisance lawsuits. Of course attorney mills that round up deadbeat plaintiffs won’t be deterred until a court imposes the penalty upon them.
But consider that: “America has the most expensive civil-justice system in the world, costing $255 billion in 2008, or nearly 2% of gross domestic product, according to a 2009 study by the firm Towers Perrin (now Towers Watson). That’s more than twice as much as any other industrialized nation as a percent of the GDP.”
This is a major economic drag and it is sanctioned by our courts and their so-called “officers,” the attorneys sucking their clients and the system dry with contingency fees.
More states should imitate Texas with loser pays legislation. That should be followed by more stringent tort reform.
Justices Ignoring the Constitution
Posted by Tom in Constitution, Federalism, Individual Freedom, Judiciary, Justice, Law, Morality & Religion in the Public Square, Legal, National Character, Supreme Court on December 19, 2010
What to do about judicial legislation? About justices that ignore the constitution? Doug Bandow posted and excellent article in American Spectator, Does the Constitution Mean Anything? He recites the circumstances of the drafting and ratification of the establishment document, namely the restriction of the type of unlimited powers exercised by the king and parliament against the colonies and the people. It was natural then that the founders drafted a structure dividing government between branches, each with its own domain, and each having a check on the others so that power was in fact divided. Thus a balanced central government was created. But not one of general police powers. No, the federal government was one of limited powers, specifically enumerated limited powers. The general power governments were the states. Thus the states possessed the so-call “police power.” The constitution specifically reserves powers not delegated by it to the federal government, to the states or the people.
Realizing that changes may later be needed, the founding fathers provided for a couple of different processes for amending the constitution. There have been 27 amendments to the document none conferring additional power on the central government.
Bandow goes over the various theories by which judges and justices try to get around this basic governing document which they have foresworn to defend and uphold. Theories of “living constitution,” or “dynamic constitution” or “time is right” for changes that the founders would have drafted if they thought of them, are all part of the judicial tap dance used to deny the validity of the constitution.
He suggests that it is not judicial “activism” that is the sin: ”Originalists” of varying stripes have tended to criticize judicial “activism,” but activism is not the problem. Lack of fidelity to the Constitution is the problem.”
He correctly analyses the current constitutional issues on the Obamacare insurance mandate and then posits the real value of his post, a potential solution to recalcitrant judges short of impeachment, itself a non-remedy.
“GIVEN THE TENDENCY of judges to ignore law and constitution, one helpful fix would be to end life tenure for justices. Intended to protect judicial independence, this provision creates a dangerous and disconnected elite that will always be tempted to overstep its role. Better to appoint judges for a term, perhaps ten years. Rotation in office would still insulate jurists from political passions while limiting the concentration and abuse of power by the judiciary. Errant jurists would naturally leave the bench rather than forever wield unconstrained power — becoming liberal saints along the way.”
While this is perhaps not the only solution to the problem, it seems a sensible one. Perhaps others will be constructed, but this at least causes us to ponder the problem and think about potential solutions.
The issue is important for, “If constitutional protections are but formless inkblots, then no American is truly safe from his or her government.”
Richard Epstein’s Obama Review
Posted by Tom in Centrally Managed Economy, Constitution, Economics, Entitlements, Government Regulation, Legal, Nationalized Health Care, Stimulus/Bailout, Welfare on December 2, 2010
Richard Epstein is a prominent law professor at NYU and Chicago and there a former colleague of Barack Obama. He’s a brilliant economist as well and author of Takings: Private Property and the Power of Eminent Domain. This Reason.tv interview illustrates his sharp mind and growth oriented outlook:
DOJ Wants Foreign Interpretation of U.S. Constitution
Posted by Tom in Constitution, Immigration, Judiciary, Justice, Legal, Presidency on October 28, 2010
Not only is Obama’s Department of Justice corrupt in voter fraud cases which it should prosecute but won’t, but it now doesn’t object to foreign countries advancing arguments to interpret the U.S. Constitution in its suit against a State of the Union!
One more example of how un-American Obama and Holder really are!
Scott Bullock’s Presentation
Posted by Tom in Justice, Legal, National Character on October 26, 2010
For those who missed the dinner Tuesday, here are the segments of Scott Bullock’s presentation on his work at the Institute of Justice. Warning: Long Video.
WaPo 17 Months Late in Reporting Holder’s DOJ Bias
Posted by Tom in Justice, Law, Morality & Religion in the Public Square, Legal on October 23, 2010
It’s old news for most of us that Attorney General Holder’s Justice Department dismissed a default judgement against proven Black Panther voter intimidation. But now it’s been confirmed by that liberal bastion, The Washington Post. Now WaPo churlishly reports that the initial reporters were conservatives, as if that were an excuse to dismiss the story. But the paper, to its credit, did dig deeper to turn up additional, confirmatory DOJ evidence of Holder’s discrimination against whites in enforcing voter intimidation cases. Andy Breitbart one of the first to break the initial story gives a magnanimous tip of the hat to the Post:
“This is a devastating piece of work by the Washington Post. This is a rare moment where the old print media has returned to the higher standards of years past, and reported facts. A week from an election, it couldn’t have come at a worse time for Eric Holder.”
That said, it is clear that from the very top the Department of Justice is tainted, and well, unjust. There is nothing more dangerous in a free society than to have the chief law enforcement officer corrupt the law.
October Reno Hayek Dinner
Posted by Tom in Economics, Government Regulation, Justice, Legal on October 20, 2010
What a great evening with Scott Bullock proving that there are champions fighting for freedom of our economic system: property rights, freedom of contract, and freedom against oppressive government interference. Scott argued Kelo v. City of New London in the U.S. Supreme Court. That 5-4 decision upheld the city’s taking of Susette Kelo’s home in an eminent domain action to transfer it to private developers who would hopefully generate more tax revenue for the politicians. As Scott said, “we lost the battle but won the war.” This because of the groundswell of public reaction against the decision which resulted in many states strengthening their laws or constitutions to preclude such results. Nevada was one of those states that amended its constitution.
Scott is one of the merry band of libertarian litigators in the Institute for Justice in Washington D.C. That organization takes up pro bono causes on serious economic challenges to small businesses, individuals and entrepreneurs. It is supported by public donations as a lot of its clients could not afford such legal representation. It chooses cases that are economically significant and have strong precedent creating potential. It is a truly worthy cause and I have added its website to our blogroll on the right which is recommended for your consideration. We thank Scott for an excellent presentation; he has a standing invitation to join our dinners anytime he finds himself out here in the hinterlands! Our thanks also go to Jerry O’Driscoll for arranging his presentation.
Last evening also brought some new faces, guests whom we hope will become part of our little symposium.
Randy York presented the great results of our three Nevada “Meet and Greet” fundraisers. By all accounts we did an excellent job for 11 key Assembly and Senate races in the state.
He also presented an update on NV4CFE, the intelligent expansion of Yucca Mountain nuclear development efforts. There is growing public and political acceptance of this research, storage, reprocessing and generation concept which will bring jobs and money into the state.
Jerry O’Driscoll delivered an interesting perspective on our foreign trade imbalance as our economic point of interest for the evening.
Our next Reno Hayek dinner will be on Tuesday, November 16th.
Obama & Holder Want Terrorists Acquitted
Posted by Tom in Defense, Homeland Security, Legal, Presidency, Terrorism on October 7, 2010
Today’s New York Daily News editorial, Error by trial: Very first Guantanamo case in civilian court is an instant disaster, details the problems of trying military prisoners, foreign terrorists that have committed foreign acts of terror, in U.S. civilian courts and granting the rights of U.S. citizens in the process. On trial was one Ahmed Khalfan Ghallani an admitted participant in the 1998 U.S. embassy bombings in Kenya and Tanzania killing 224 including 12 Americans. Caught in Pakistan after training with Al Qaeda in Afghanistan he was interrogated and confessed.
“These facts come courtesy of Ghailani’s own mouth. He revealed them under interrogation while in clandestine CIA custody before transfer to Guantanamo. Therein lies the legal absurdity.
The CIA grilled Ghailani in the interest of national security – to prevent further terrorist attacks – and not as a run-of-the-mill criminal suspect with full U.S. constitutional rights.
Thus, Ghailani had no lawyer. Thus, in the words of Manhattan Federal Judge Lewis Kaplan, Ghailani was subjected to a “combination of social influence approaches and extremely harsh interrogation methods to obtain evidence” – techniques that were used “to obtain intelligence from a handful of detainees believed to possess particularly high-value information.”
So, years later, come time for opening statements in Kaplan’s courtroom, prosecutors chose not even to try entering a word of Ghailani’s testimony into evidence. Instead, they hung their case largely on one Hussein Abebe, a Tanzanian who was prepared to testify that he had sold five crates of explosives to Ghailani.
Bad move. Kaplan yesterday barred Abebe from taking the stand because the FBI tracked him down based solely on information provided by Ghailani under “coerced” questioning.
This ruling was distressingly inevitable.”
Now Obama and Holder are educated attorneys well versed in criminal and constitutional law. It is safe to say that they know that the rights of the accused in the U.S. are much more protective than the rights of: (a) terrorists in Kenya, (b) criminals in Pakistan, and (c) enemy combatants detained in war time. In short, Obama and Holder knew that this instant ruling was “distressingly inevitable.”
Why then, would the Commander in Chief charged with the defense of this nation and his chief law enforcement officer Attorney General Holder choose to take this wartime prosecution out of military hands and place it in New York, the site of the World Trade Center attacks on September 11th?
I have previously highlighted Dinesh D’Souza Obama analysis on these pages, but Kathryn Lopez’s NRO interview with D’Souza goes into greater depth and convinces me that his analysis is correct. In that analysis, Obama is an anti-colonists down to his core, socialists yes, but more important an anti-colonists. He favors the suppressed, exploited natives in Kenya, Pakistan perhaps those in the war regions. His father from which his dreams come, Dreams from My Father, was Kenyan. The interview is a must read.
D’Souza denies that Obama is merely a conventional liberal: “But conventional liberals don’t come out for the release of the Lockerbie bomber. Conventional liberals don’t return the bust of Winston Churchill from the Oval Office. Conventional liberals don’t block oil drilling in America while subsidizing oil drilling in Brazil.Conventional liberals don’t try to turn the space agency NASA into a Muslim-outreach program. My anti-colonial theory beautifully explains all these facts.” There is indeed predictive value in this theory.
So I think it reasonable to believe that, despite protestations to the contrary, Obama wants acquittals in these civilian terrorists trials.
Inherent Right to Keep and Bear Arms
Posted by Tom in Constitution, Legal on March 3, 2010
Yesterday’s Supreme Court hearing of McDonald v. City of Chicago gave clues as to whether the court will apply the Second Amendment right to keep and bear arms to the states. The 2008 ruling in District of Columbia v. Heller held the right to be an individual right but that applied only to federal law and did not decide whether the states could restrict that right.
By most news accounts the tenor of the justices questions indicated that they will decide that the right indeed is guaranteed to the citizens through the Fourteenth Amendment privileges and immunities clause. One attorney argued beyond the constitution, the right is fundamental and would exist even if not enshrined in the Bill of Rights. (See for example, the Fox News article.)
A 2008 Ted Nugent interview picks up on this theme particularly as it relates to self defense.
I agree.
Tom Motherway
“The first thing we do, let’s kill all the lawyers.” Shakespeare’s “Henry VI”
Posted by Tom in Legal, Nationalized Health Care on September 11, 2009
As a young lawyer I tried cases and briefed and argued appeals under the then president of the American Trial Lawyers Association, a great mentor and fine, old-time attorney. His firm specialized in plaintiffs personal injury law; its expertise in this speciality, garnered referrals from numerous other attorneys in the Midwestern US. These negligence cases had “contingency fees” ranging from 33-50% of the amount recovered from the defendant’s insurance company, whether insuring a negligent driver or negligent doctor, the negligence was for the jury to determine after suffering through the “skill” of the attorneys presenting the case. As a hot-shot young lawyer I was lucky to get the job and the first in my law school graduating class to get in front of a jury. The young guys got the “crap” cases in the office. I was lucky to have a .500 batting average with these crap cases in my first year as a trial lawyer. I was luckier to participate in the so-called “intellectual” side of the profession in briefing and arguing cases before the state appellate and supreme courts and the federal court of appeals. Despite the money and promise for more, I was most lucky to learn that this side of the law was not for me. I got out!
While the plaintiffs bar can legitimately claim some past social progress in reforming industrial America to reasonable workplace safety and moral standards, it can no longer justify the social and economic costs of its existence. The “contingency bar” now finances lawsuits, “securities strike” suits, “asbestos” suits, and “whatever suits.” These class action type suits generate tremendous contingency fees at little or no risk for the cost of the litigation which is borne by the true beneficiaries, the trial lawyers.
In medical malpractice the costs to society include not only the excess insurance premiums, the excess medical fees, the excess hospital fees but also the excess costs of “defensive medicine,” that is ordering unnecessary tests to cover any potential medical liability no matter how remote. And all those latter costs, defensive medicine costs, include expenses of labor, equipment, administration and profit. These are not a small amount.
In total all contingency litigation costs, in general negligence, in automobile negligence, in medical malpractice, and in securities strike litigation, amount to a staggering tax on our economy and our society.
This is particularly relevant today with the current push for Obamacare. Our young president knows that his smallest voting group is the largest funding group, so he is willing to sacrifice logical solutions to get money so that he can continue, with Pelosi, Reid and the rest of his leftists, to bamboozle the American public. The trial lawyers seem to own this disingenuous young man.
As Kimberley Strassel in the September 11th WSJ op ed says of the 11 Republican senate committee proposals to limit the trial lawyers, “on a party line vote, Democrats killed every one.” “The tort-reform issue has instead clarified this presidency. Namely, that the new-politics president still takes orders from the old Democratic lobby.” A sad situation for America!
Tom Motherway, tom@renohayek.com